How promotion affects buying and purchasing decisions.

How promotion affects buying and purchasing decisions: creating/enhancing/changing image.

In most cases, a business' image is one of its most powerful possessions. An image can be easily destroyed or damaged depending on the size of the company, due to how it is a massively larger challenge to even make an impact on a huge business' image, such as McDonalds. But even the biggest of the fast food companies can be affected.

This can be seen from 2004 onwards, when the documentary/movie named 'Super-sized Me' was released. The said documentary had quite a large blow in McDonalds' profits as a result of how it questioned the healthiness of the goods they provide. This forced McDonalds to drastically change or recreate their image and become a more 'healthy' option. This lead to them promoting and offering different kinds of foods, such as salads and apple pies, this would of required rather large amount of capital to get the healthy word out to as many as they can. People then began to feel that McDonalds was becoming more healthy, thus changing their image and even attracting more customers, leading to even higher profits.

Providing Information- Courtney

How promotion affects buying and purchasing decisions- providing information.

It helps customers that aren't sure on what they are going to purchase that they have enough information this is called; Informed Decision.

This is to assist customers in the search stage of the purchasing process. In some cases, such as when a product is so novel it creates a new category of product and has few competitors, the information is simply intended to explain what the product is and may not mention any competitors. In other situations, where the product competes in an existing market, informational promotion may be used to help with a product positioning strategy. As we discuss in the Targeting Markets tutorial, marketers may use promotional means, including direct comparisons with competitor’s products, in an effort to get customers to mentally distinguish the marketer’s product from those of competitors. 

Iphone
As we all know apple provides enough information that would cover everything about Iphone also if the newer Iphone are an improvement of other videos they need to advertise how different and improved it is. By doing this they do a step to step video or the whole phone and don't miss out anything. You also have things like product launches which they don't say anything to any of the press so no information can get out until it has been launched. There's also information in magazines and books.

This is a video showing you how they promote their product getting information...
http://www.youtube.com/watch?v=LzfAnnvOg3I  

Promoting the business and its products

 

Promoting a product or business is a very complex process, before a business can start to promote their product they must know their product inside out and also who their competitors are and who is their target market. Knowing those factors will enable a business to make an efficient marketing plan.
It is important to a business to cover this sector to ensure that their business is well known to the public and continues to make money.

For example Subway, Subway promotes their products through radio and television. They have added value to their products by displaying the health benefits of eating their products as opposed to other fast food restaurants. They have achieved this by featuring actual customers with before and after photos of weight loss as well as nutritional information compared to other fast food sandwiches.  Subway also varies their menus across the globe due to regional variation and religious requirements relating to the meat. For example in most Muslim countries they offer halal meat.

Subway also run a club card called ‘Sub club’ which allows the customers to buy a certain amount of sandwiches then they will get one free. Also a different type of deal is Subway rewards card, where customers gain points to a card every time they buy something and then the customers can use their points for free food

Due to the size of the business   the methods of marketing they use may vary, for example Subway is a big company and they mainly use television and radio adverts whereas a small business may rely on leaflets and posters – cheaper ways of promoting.

 

How promotion affects buying and purchasing decisions - Communicating effectvely

A business will need to communicate effectively in order to reach the optimum number of potential customers and in some cases reach an aim/objective of the business. Advertisements on television, in a newspaper and other communications targeted at customers carry the risk that they may not reach the expected audience. Because some customers may have made their own way to the websites the business knows that they are communicating directly with those who are interested in the product or service on offer. For example Eurostar the train service between the UK, Belgium and France sends regular emails to previous customers letting them know about special offers and deals available. Another example is at Topshop they have membership cards and through these they can send emails on when they have a new collection in and if there is any deals on the older collections that they have. they also have mannequins in the shop windows with the latest clothes and accessories on so that it is eye catching to people walking by, and in some of the shops in the UK they have posters in the shop windows in bold colours saying 20% off and there is also sometimes leaflets and posters in fashion magazines so that they can guarantee that they are reaching the required target market.

Creating and Raising Awarness

Pauline Standley

Depending on the sort of business (New or Old)  it needs make themselves noticed and aware of.When a new business starts up, it needs to create awareness for it products and itself, however, businesses that already exist and are releasing a new product need to raise the awareness more than create awareness. 

Business can do this by releasing advertisements and promotions via the media and trying to get a word around by encouraging customers to recommend.

Businesses will want to create awareness as this will mean that Customers know what they are selling and will draw them in. Therefore, the more the awareness, the more customers.They may also want to raise more awareness so they can become more aware than their customers.

However, the big difference in already recognised bigger businesses and the new start up businesses  is, not only will the bigger business be able to create awareness a lot easier but it can use more expensive methods to do so.

Smaller Businesses will only be able to use less expensive methods such as leaflets,flyers and posters or  printing the advert onto vehicles.

However, Larger Business can create awareness via TV, In the shops that exist already (works better if its a large expanded business such as McDonald's) Radio, Cinema and all other more expensive sides of advertisement. 

Business aims and objectives.

An aim is where the business wants to go in the future, its goals. It is a statement of purpose, e.g. we want to grow the business into Europe.

Business objectives are the stated, measurable targets of how to achieve business aims. For instance, we want to achieve sales of €10 million in European markets in 2004.


Objectives give the business a clearly defined target. Plans can then be made to achieve these targets. This can motivate the employees. It also enables the business to measure the progress towards to its stated aims.
The most effective business objectives meet the following criteria:
S – Specific – objectives are aimed at what the business does, e.g. a hotel might have an objective of filling 60% of its beds a night during October, an objective specific to that business.
M - Measurable – the business can put a value to the objective, e.g. €10,000 in sales in the next half year of trading.
A - Agreed by all those concerned in trying to achieve the objective.
R - Realistic – the objective should be challenging, but it should also be able to be achieved by the resources available.
T- Time specific – they have a time limit of when the objective should be achieved, e.g. by the end of the year.


The main objectives that a business might have are:
Survival – a short term objective, probably for small business just starting out, or when a new firm enters the market or at a time of crisis.
Profit maximisation – try to make the most profit possible – most like to be the aim of the owners and shareholders.
Profit satisficing – try to make enough profit to keep the owners comfortable – probably the aim of smaller businesses whose owners do not want to work longer hours.
Sales growth – where the business tries to make as many sales as possible. This may be because the managers believe that the survival of the business depends on being large. Large businesses can also benefit from economies of scale.

The possible objectives for marketing promotions may include the following:

• Build Awareness
• Create Interest
• Provide Information
• Stimulate Demand
• Reinforce the Brand

The main apparent promotional aim for John Lewis seems to be building awareness and stimulating demand. This is because throughout the year, John Lewis doesn't gather a fraction of the customers compared to Christmas time. The given time of year hugely boosts their sales and awareness due to how they usually make more in the month of december than all other months of the year, combined. This is a result of excellent advertising and sales promotion within the festive month, attracting more customers with appealing offers and discounts. Doing so, it also affects other promotional objectives such as reinforcing the brand.

Promotional Methods: Revision Notes

Download THIS file and complete using your peers work on the blog plus the Tutor2U resources. For the examples you need to add at least 3 using your own research in some cases.

How promotion affects buying and purchasing decisions

Task 1

Read through the section you have been given and use your textbook/resources to look through the theory.

Task 2

Prepare a blog post which covers your area with an appropriate title and examples.

Consider why a business might need to cover your area then explain how it can be done by businesses.

Then find examples of where an organisation has covered this area and whether it will have affected consumer buying and purchasing decisions.

Task 3

Finally how might the size and resources of your business affect the chosen methods?


Try not to just focus on on-line or TV advertisement. Think about the whole approach of businesses either in the UK or businesses you are familiar with in Dubai. E.G. if NKD Pizza had a new type of pizza coming out how would they raise awareness?

Recall: Sales promotion, Advertising, Direct Marketing, Public Relations, Sponsorship.

John Lewis' Sponsorships

This is when a business supports an event, activity or an organisation such as a sports team, in exchange for having its name or product directly linked with the event.

The use of sponsorship with a given role model or celebrity is a very effective way to draw in or influence customers in to buying or supporting something. John Lewis will most likely sponsor a person or celebrity with money rather than goods or equipment due to how they are usually sponsored to promote or advertise new goods. Although they will be paid to do so, they will also most likely give them the goods they are sponsored to promote.

Below are two examples of who John Lewis have sponsored:

This is an example of an event John Lewis has sponsored, leading to huge profits.

John Lewis Public Relations

John Lewis Public Relations

Aims of Public Relations-

  --> To achieve favourable publicity for the business

· --> To build a good image and reputation for the quality of they products

·  --> To communicate effectively with customers and other stakeholders

Typical Public Relation Activities-

· --> Promoting a new product

·  --> Gaining popularity

· --> Enhancing public awareness  

· -->  Obtain customer loyalty

Here John Lewis is letting the customers aware of they’re delivery option for the Christmas Holiday.

Danny Mackie.

Sales Promotion at John Lewis Sales promotion is tactical, point of sale material or other incentives designed to stimulate purchases At John Lewis they provide sales promotion through gift cards

With the gift cards you can either send as little as 10 pounds or as much as 1000 pounds. Another thing that John Lewis does it they hold christmas comeptitions to have a chance to "Win Christmas"

this was a competition from 2011 and is was won by a man called Alex Cowley and he got a 4 in 1 hockey table.

Personal Selling

Pauline Standley

John Lewis offers a one to one session on giving you fashion advice, by taking you around the shop, try on clothes and help you out with what to buy and what not to buy. 

This is an example of Personal selling as its a one to one session advising you on what to buy.

John lewis during the Christmas season most likely have more shopping assistants on the floor of the department store as people who will be buying gifts for others might need help. For example, family members who are struggling for ideas on what to buy other family members, may ask the assistants for help on what to buy them. This counts for Personal Selling as one shopping assistants advise, helps and persuades the Customer/family member to buy a product they think will suit him or her best.

John Lewis' direct marketing

John Lewis are doing a direct mail campaign where they are offering a pack has been designed to look like a festive gift tied up with red ribbon and includes a personalised Christmas card including offers, a brochure of gift ideas and a sheet of exclusive John Lewis Christmas wrapping paper.

John lewis have also launched a new 'Email marketing' campaign. In these emails the products promote include cookware, women's clothing and beauty products.

Advertising for John Lewis- Courtney Kingston

This is a good example that their promotional tool; advertising, is successful and promotes John Lewis well as their company rake has increased £91m in a single week which is a lot of money for a week. This shows that using advertisement will help your business and make awareness that its coming up to Christmas and your going to be getting presents in. So they want you to use John Lewis.

You also may see advertisement in news paper which is paid-for space and even though this cost it will still illuminate people that read newspapers to come and use the shop which will increase profit.
Also things like billboards on the side of roads or in town center where you will shop you will see things like this so that it will bring you into John Lewis while your in the sopping center. They will also aim to put the advertisement round places that it will hook people into the advert  Things like women magazines that will need to buy presents 

Homework 25th November

Hi Guys

I want you first of all to take the time to comment on another persons work on the blog explaining what you learnt from them and perhaps asking questions about things you do not understand. From this you need to check you own posting to answer any and all questions... I may ask some if you don't get any ;)

I would like you to research the above topic over the weekend.

1. First of all what are Aims and Objectives?
2. Then what examples of promotional objectives can you find?
3. What do you thin the overall promotional aim of John Lewis is when it comes to Christmas?

Pauline's self assessment :)

1.A screenshot of your quiz result

2.A written self assessment of which of the promotional tools you need to research more


When doing the quiz i found some questions easy but others quite hard. For example, I need to research and revise a bit more on Person Selling and Direct Marketing. This is the question I didn't understand, and had difficulty answering (got it incorrect). I need to research these more, because most of the question that involved Personal Selling I guessed. However, Direct Marketing, I find difficult but have a vague idea on what it might mean.





Define two promotional tools you did not teach the class about

Personal Selling:
Promotion on a person to person basis, for example either by meetings or via telephone or knocking on their door.

Advantages

• High customer attention
• Message is customised
• Interactivity 
• Persuasive impact
• Adaptable
• Opportunity to close the sale
• Potential development of relationship

Disadvantages

• High cost
• Labour intensive
• Expensive
• Can only reach a limited amount of customers

Courtney Kingston Self assessment

I need to improve on my direct marketing promotional tool as I don’t know the different types of Direct Marketing and what is not included as a direct marketing. Also i need to work on my skills of Sponsorship and the advantages and disadvantages of Sponsorship. Also the BOGOF method. 

The first promotional tool i have decided to talk about is sponsorship...
Sponsorship is when a business supports an event, an activity or an organisation, suh as sports team, in exchange for having its name or product brand name linked directly with the event, activity or organisation being sponsored.
Disadvantages; The dangers associated with sponsorship would be things like having bad publicity for example if you sponsored a football team and one of the guys on the team had a bad reputation out of the job but they had their sponsors advertised on them it would bring down the company and make them look bad. Also things like not achieving the aims and objectives that were set this can happen when a situation rises with representatives of the event being sponsored over-forecast the size of the audience or the amount of publicity the event will attract.
Advantages;The main objective of sponsorship is that it creates awareness. it associates its name or logo with something that is seen by its target market, using an event or organisation. Having sponsorship within your business will gain people using your business and its then also advertise where people most go see thing like Samsung sponsors Chelsea which is displayed on the football kit. It can also have positive benefits by creating an association in the audience's mind between the team or the event and the sponsor. 
I believe that sponsorship is  a good method of marketing as its promoted not only for events but for any events that are put on TV showing even a wider marketing meaning it will gain more people using your business. However it may cause problems if the people that are displaying your business as a sponsorship and they have publicity it will cause problems for your business.

Joe Beresford Self Assessment

The promotional tools that I need to revise more are direct marketing and public relations.

The promotional tool I have chosen to do is public relations.
The advantages of public relations include:
Cost - The costs of public relations is usually really low
Ability to reach specific groups - Public relation is the best way to communicate with specific groups
Image building - Public relations helps a business build a positive image

The Dis-advantages of public relations include:
Hard to Measure Success - Businesses often find it hard to measure their success
Inaccurate Message or Storytelling - After a press release journalists can publish a story on the negative side of the businesses campaign

I think this is an effective promotional tool because it is a cheap form of marketing but it allows a business to build up a positive image and reach their specific target market.

 

How the promotional tools affect Buyer Behaviour

Above is the next section of the specification that we need to cover. As you can see it is accepted that our promotional tools will affect buyer behavior. For example make people desire your product, brand or service. Or even just know more about your business or campaign.

However, the question is how the promotional tools do this? The above is what we need to concentrate on for this.

Today's Task

I want you to research the promotional methods John Lewis are using to raise awareness for their Christmas products this year. I have placed a video we will watch below as one example, what others can you find on their site and elsewhere?

Make sure you each look at one of the main methods of promotion that you taught the class about last lesson. Pick one you have struggled with and have not taught anyone about.

Write a blog post on your findings and explain to use how this method is raising awareness of the john lewis Christmas campaign with images.

Public Relations

By Courtney and Pauline

Definition of Public relations:

This is the use of media and events to raise awareness of a product to communicate a message or to change public opinion.

For example:
When a business launches some thing new they made send a press release to promote the product or a photograph to a news paper, radio or television. 

Public relations main aims 

• To achieve favourable publicity about the business
• To build the image and reputation of the business and its products, particularly amongst customers
• To communicate effectively with customers and other stakeholder

One of the main advantages that Public Relations has, is that unlike advertising, where you have to pay for media space, for public relations, you use an editorial space and broadcast time (which you don't have to directly pay for) 

One of the main disadvantages

Typical PR activities

• Promoting new products
• Enhancing public awareness
• Projecting a business image
• Promote social responsibility 
• Projecting the business as a good employer
• Obtain Favourable product reviews/recommendations

This lets you know about the business, it is projecting the business as a good employer

This promotes a new product. 

Direct Marketing.

Direct Marketing

Direct marketing is a catch-all term that describes a range of promotional activities that are aimed directly at the customer, bringing the promotional message straight to the target audience. Direct mail, telemarketing and email marketing can all be useful methods of targeting the kind of customer who is likely to buy from the business. However, each of them requires careful preparation and consideration towards the audience, and knowledge of how to manage customer data efficiently and within the boundaries of the law.

There are various advantages and disadvantages of each method of direct marketing, these are stated below. 

Direct mail:

This involves sending promotional materials to targeted customers through the post.

     Advantages - 

• Direct mail can be a relatively low-cost exercise with the ability to target specific customers.
• It is also easy to evaluate the successes or failure of each campaign by looking at response rates.

    Disadvantages - 

• The negative perception by recipients that direct mail or ‘junk mail’ is becoming more common.

Email marketing:

The use of email for direct marketing has grown rapidly, becoming more effective.

    

    Advantages - 

• It is a very cheap and quick method of promotion which allows the message to encourage an instant response.
• Viral marketing is a good way to get customers to recommend a friend and increase the size of their customer database in return for a reward, for example a discount etc.

    Disadvantages - 

• The use of spam filters on many email systems makes it harder for legitimate email marketing materials to reach the intended recipient.
• Email marketing must only be sent to those who have opted into receiving such a promotion.
• Many businesses continue to flout this 'golden rule', contributing to the substantial volume of email spam.

Telemarketing: 

Telemarketing encompasses all telephone-based marketing activities including sales, customer services and market research.

    Advantages - 

• It is relatively low-cost, particularly compared to the costs of keeping a full-time sales force on the road.

    Disadvantages - 

• The big downside to telemarketing is that cold calling has a very negative perception, especially in the consumer sector.

Overall, direct marketing has the following advantages and disadvantages:

Here is an example of direct marketing in the form of a postcard which was distributed in Milan, Italy.

Advertisement

Advertising Homework 

Advertising is a form of communication for marketing and used to encourage or persuade an audience (viewers, readers or listeners; sometimes a specific group) to continue or take some new action.

Pepsi Advert -

I think that this advert is very effective for Pepsi because it shows that Pepsi is worth fighting for. In the advert it shows profesional footballers fighting agains a small army, the small army have taken all the Pepsi in the town and the footballers play football and then break the lock to get all the Pepsi for the village, this advert promotes both football and Pepsi.

Advertising Homework.

Advertising Homework

An 'advertisement' is the use of paid-for-space in the media to raise awareness of a product and to communicate with a given target market.

The advertisement given above is massively effective due to how it creates a serious, life or death situation to draw in the potential customers due to how most of the observers will want to know what is going to happen next. This, combined with the unexpected amount of humour towards the end makes for a brilliant commercial that one will probably not forget for a long time. Providing this scenario makes the audience feel as if it is not just a language they would be learning, it is a sort of metaphorical lifeline. This effects the audience in many ways, making them feel as if it is something more than just a language and it is much more important than what some people think. 

The addition of humour will leave a long lasting impression on the audience making them more likely to remember it, or to be able to differentiate between two or more similar or dissimilar companies and advertisements, making themselves stand out in comparison to any other businesses, including their competitors. 

Conor Johnson.