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Promoting Products: Strategies Explained

This document discusses various methods of promotion used to encourage consumers to purchase products. It defines promotion as communicating information about a product to persuade consumers to buy it. The main goals of promotion are to increase sales, attract customers, improve brand image, and inform people about new products. Common promotional methods discussed include advertising, sales promotions, personal selling, direct mail, sponsorship, and celebrity endorsements. The document also examines the differences between informative and persuasive advertising, provides examples of sales promotion techniques, and discusses personal selling and direct mail. It analyzes factors to consider when selecting a promotional method, and explores opportunities and threats of e-commerce for businesses and consumers.

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0% found this document useful (0 votes)
10 views2 pages

Promoting Products: Strategies Explained

This document discusses various methods of promotion used to encourage consumers to purchase products. It defines promotion as communicating information about a product to persuade consumers to buy it. The main goals of promotion are to increase sales, attract customers, improve brand image, and inform people about new products. Common promotional methods discussed include advertising, sales promotions, personal selling, direct mail, sponsorship, and celebrity endorsements. The document also examines the differences between informative and persuasive advertising, provides examples of sales promotion techniques, and discusses personal selling and direct mail. It analyzes factors to consider when selecting a promotional method, and explores opportunities and threats of e-commerce for businesses and consumers.

Uploaded by

M tj
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Good afternoon sir Alfian and friends. We are from group 4.

today me and my group mates would like to


present our business presentation about promotion.

So first what is promotion? Promotion tells the consumers about a product and tries to persuade or
encourage them so that they want to buy the product.

The main aim of promotion is to increase sales to get maximum profit, attract consumers about the
products, improve the brand image, persuade consumers to buy the products, informing customers
about the new product or special products.

Methods of promotion used to ensure customer to buy the products are advertising, sales promotion,
personal selling, direct mail, sponsorship, celebrity endorsement, and others.

There are two types of advertising, it can be either informative or persuasive advertising. Informative
advertising provides information about the product to potential consumers. This form of advertising is
often used when a new product is being launched, the example of informative advertising is websites,
newspapers, magazines, and posters. Persuasive advertising is a form of advertising to try to convince
consumer to buy the product, the example of persuasive advertising is radio, social media, and
billboards.

Sales promotion try to persuade customers to buy products now rather than later. Unlike advertising,
sales promotions are more specific to the business or products. Here are a few methods of sales
promotion. First is discount. It is only available for a limited period but customers will be attracted as
they think the product represents better value for money. Second is free samples. It is a smaller versions
of the product and given for people to try the product first and encourage them to buy. Third is free
gifts. It is given away with product. It encourages people to continue buying the product to complete a
set. Lastly is loyalty schemes. Customers collect points or reward for each purchase. This encourages
repeat purchases.

There are a few things that are formed from sales promotion. First is money off coupons or vouchers. In
order to use the voucher, the customers need to buy the product. Second is competitions and games
with cash or other prizes. Next is point of sale displays in shops. Lastly, loyalty reward schemes. The
points are given when consumers spend money in a particular business.

what is personal selling?

Personal selling is a staff communicate directly to the consumer to achieve a sale and form a long-term
relationship between firm and consumer. It is usually used when selling luxury things that have a higher
profit per unit, for example car. The customers need to visit the showroom to see the cars and in order
to do that, the salesperson has to contact the customer directly.

Another method of promotion is direct mail. Direct mail involves posting leaflets or printed materials
and sent directly to the addresses of customers, it’s a very good way of communication with a large
market over a wide geographical area. However, it is so widely used that there is a danger of it being
considered junk mail and thrown away before reading it.

Next we have sponsorship. Sponsorship is a payment by a business to have its name for a particular
event. The business/product name will be linked to sponsorship to increase the public’s attention. This
can be used to target market segments or promote certain image.
There is also have factors to consider when choosing a method of promotion, there are marketing
budget, marketing budget is what can the business can spend, the money spent on the promotion
cannot be used for other purposes. Marketing strategy is what objective have the business set, type of
product usually the customers might need information about the product before they buy it. Stage in
product life cycle is introducing a new product. Target market is mass market or niche market need
different approaches.

Continue to technology and marketing mix, technology has had an impact of marketing, customers no
longer have to visit shops or even be in the same country to purchase products, Promotion can be
targeted more easily to specific customer groups.

Continue to opportunity of e-commerce, opportunities of e-commerce for business can get better
information. The website can provide all information the consumers need about the product. Next is the
business could reduce the costs. The business won’t need to pay the staffing and other costs of the
shops. And lastly it could increase the market. The business could sell the goods throughout the world.
The opportunities of e-commerce for consumers is the consumer can place the order whenever they
want, they could order it from home at any time. Next is more choice. They could buy the goods which
they would not have had access to if they were only able to use their local shops. Lastly, better info.
Consumers are able to read the descriptions about the product and they could also see the review from
other consumers.

The last topic is threats of e-commerce for business is not everyone can access the internet. increased
competition. The competitors can now be from any country or any part of the world. Unfamiliarity.
Consumers won’t buy the product they don’t know. The threats of e-commerce for consumers can’t see
before buying products, fear of hacking. A consumer’s bank account might be hacked or stolen. Lastly,
there is no personal service. There would be no face to face contact between consumer and seller.

Before I end the presentation, there is one quote from Milan Kundera says that “business has only two
functions marketing and innovation “. That’s all from our group presentation. Thank you for listening.

Common questions

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Direct mail is effective because it allows for targeted communication with a large audience over a wide geographical area, making it possible to reach specific consumer groups. However, its widespread use can lead to it being perceived as junk mail, which may be discarded without being read. To maintain effectiveness, businesses must make their direct mail visually appealing and relevant to the recipient to prevent it from being overlooked .

Personal selling can be more advantageous for selling luxury items as it involves direct communication between staff and consumers, allowing for personalized interaction and tailored sales approaches. This direct contact helps build a long-term relationship between the firm and the consumer, which is crucial when selling high-value products that often require substantial investment, such as cars .

Benefits of e-commerce for consumers include the convenience of placing orders at any time, access to a wider selection of products beyond their local stores, and availability of extensive product information and consumer reviews. However, drawbacks include the inability to physically inspect items before purchase, concerns over data security and potential hacking, and the lack of personal interaction with sellers, which may affect customer service experiences .

Sponsorship involves financial support from a business to have its name associated with specific events. This association can enhance the brand's visibility and public perception by aligning it with events that reflect target market values or ideals. Effective sponsorship can strengthen brand image and recall in the mind of consumers, potentially increasing sales and market share. However, it can also be costly and requires careful selection of events to ensure alignment with brand values .

Main threats e-commerce poses to businesses include limited internet access for some consumers, heightened competition from global players, and challenges due to consumer unfamiliarity with new brands. These threats can lead to businesses missing out on potential customers, facing intense competition from international competitors, and struggling to build brand loyalty. Additionally, businesses may encounter difficulties in ensuring data security, deterring some consumers afraid of hacking or fraud from purchasing online .

Informative advertising focuses on providing potential consumers with detailed information about a product, which is especially useful when a new product is being launched. Examples include websites, newspapers, magazines, and posters. Persuasive advertising, on the other hand, aims to convince consumers to buy a product by appealing to their emotions or desires, using mediums such as radio, social media, and billboards .

Sales promotion methods include discounts, free samples, free gifts, and loyalty schemes. Discounts attract consumers by offering better value for money within a limited period. Free samples allow consumers to try the product, encouraging them to purchase it. Free gifts incentivize repeated purchases by allowing consumers to complete a set. Loyalty schemes motivate repeat purchases by offering rewards or points for consecutive purchases .

Technological advancements in e-commerce have transformed consumer purchasing behavior by enabling buyers to place orders at any time from any location, providing more choices beyond local stores. E-commerce platforms offer detailed product information and consumer reviews, facilitating informed purchasing decisions. Additionally, technology allows businesses to target promotions more precisely across different customer segments globally, which broadens market reach and enhances customer engagement .

The main goals of promotional activities are to increase sales to achieve maximum profit, attract consumers to the products, enhance the brand image, persuade consumers to purchase products, and inform customers about new or special products. These goals contribute to business success by driving consumer interest and engagement, boosting sales figures, and fostering brand loyalty, which ultimately leads to increased market share and profitability .

Businesses can enhance their marketing strategies by integrating e-commerce with their traditional approaches. This can involve leveraging data analytics to understand consumer behaviors and preferences, using social media to engage with customers and promote products, and offering personalized online shopping experiences. Businesses should ensure a seamless transition between online and offline services, providing consistent branding and customer support across all platforms to maintain a strong brand presence and customer loyalty .

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