Marketing Mix - Promotion€¦ · Marketing Mix - Promotion . PLC –limited use Pace of change...
Transcript of Marketing Mix - Promotion€¦ · Marketing Mix - Promotion . PLC –limited use Pace of change...
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Marketing Mix - Promotion
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PLC – limited use
Pace of change
Competition
External decisions
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Packaging – limited use
Produce colour change
New markets – Africa
Increased promotions - competitions
Adding value – perhaps internet
connectivity; download movies;
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Informative?
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Informative advertising
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Kellogg’s ad campaign “have you forgotten how good they taste?”
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We all know the product…we just need reminding
This is mostly in response to competition: Pepsi and other drinks do the same
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Notice anything?
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A form of reassurance advertising
Iceland (supermarket) offers food without GM (genetically modified) ingredients
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Ethics in banking
Consumers can feel good that their bank has ethics
Consumers can then feel that the bank reflects their own
personal values
“I’ve made the right choice”
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Make you feel good about your purchases from the Body Shop:
“Yes it was worth paying a little more for my products”
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Uncertainty in the financial sector
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TV…is it so effective these days? Many young Chinese people are switching to online entertainment
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Good for firms - can measure
•exactly how many views;
•time spent on the site; what people watched;
•which websites they used before and after
•„cookies‟ gather data about users. This is what you often ‘pay’ for ‘free’
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The cinema has a ‘captive audience’: people can’t switch over the channel!
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Billboards –modern billboards has technology that allows them to change according to demand
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Industry journals:
often read by the right people
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Trade fair
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Mostly B2B but there are also B2C
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Product launch – free publicity for Apple
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Press conference for Alibaba
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Lei Jun
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People use $50 as an anchor (starting point) and then assume they have saved $20
They justify their purchase to themselves or other people through this
Companies mostly set high anchors in order to ‘discount’ later
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Companies understand people’s purchasing behaviour better than themselves:
Customer relationship management allows this through loyalty cards, data
mining, marketing analytics
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Brand extension
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Paul Smith 男装
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Combination of packaging, innovation and brand extension
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Paul Smith 男装
Branding through colours
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Consumer markets versus industrial markets
•Specialist magazines or journals
•Very clear and specific targets
•Trade fairs
•Trade promotions could be financing
deals to aid firms with the purchase of
expensive equipment
•Other important marketing mix factors
could be:•Focus on price, reliability of delivery
•Selling many to the few (opposite to many to the
few)
•Focus on specifications - offering solutions
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Packaging – Adding value
Luxury chocolates: special packaging adds more value as
perceived by the consumer
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Protection and contain the productTetra Pak
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British ‘Traffic Light’ system:
Easy for customers
Law requires it
Red = Bad
Amber/Orange = Okay, caution
Green = Good
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Old packaging versus the new
What is the difference?
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Packaging
Promotion of seasonal products – Starbucks presents the red colour
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Apple’s packaging- beauty in simplicity…it’s what Apple stands for…
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Cosmetics
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However, the government has moved towards banning ‘excessive’ packaging
According to the new rules about restricting the over-packaging of goods, there
cannot be more than three layers on a package.
And the cost of the packaging cannot exceed 15 percent of the sales price
Firms will now have to find a way around this…perhaps gaining an advantage
Consider packaging of Baijiu and Moon cakes in China
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Word of mouth: probably the most powerful marketing tool - Kotler
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S-commerce = Social commerce
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Cross between promotion and place
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