Unit 2 The Promotion Mix

It is wrong to think that a consumer-oriented product will sell all by itself. Even a good, attractively priced product that clearly satisfies a need has to be made known to its target customers. During the introduction and growth stages of the standard product life cycle, the producer has to develop a product or brand awareness, i.e. to inform potential customers, dealers and retailers about the product's existence, features, advantages, and so on.

According to the well-known "Four P's" formulation of the marketing mix, this is clearly a matter of promotion. Since budgets are limited, marketers usually have to decide which tools - advertising, public relations, sales promotion or personal selling - to use and in what proportion.

Direct advertising can take a number of forms and appear in several formats. The place chosen for the advert will depend on the target market and may include: commercial TV and radio, magazines and newspapers, transport, posters, leaflets, and hands-out. Because advertising tends to be expensive, it will then be placed in the media which will reach the market segment in the most beneficial way.

Mass media advertising (television, radio and national press) is a big business in itself. Advertisers will buy time on the television in order to reach their target audience. The assumption is made that viewers of a certain type of programme will represent a certain demographic profile, and this can be made use of by advertisers. The message the advertisement carries is oriented at the viewpoint of the customer. It will communicate the bene­fits that the customer can enjoy from the product or the desirable aspects of ownership.

Public relations (often abbreviated to PR) is concerned with maintaining, improving or protecting the image of a company or product. It is believed that by maintaining a good public image, other trading activities will be smoothed and encouraged — no organizations carry out PR for purely altruistic reasons. Techniques for PR are well established, and again, can be expensive. Among the most popular are: "roadshows" to local schools, community groups, etc.; open days, visitor centres, press statements, charitable donations and community projects, videos, sponsorship of sports competitions, events, etc.

The most important element of PR is publicity (as opposed to advertising) as any mention of a company's product that is not paid for, in any medium, read, viewed or heard by potential customers, aimed at assisting sales. Many companies attempt to place stories or information in news media to attract attention to a product or service. Publicity can have a huge impact on public awareness that could not be achieved by advertising, or at least not without an enormous cost. A lot of research has shown that people are more likely to read and believe publicity than advertising.

Sales promotions such as free samples, coupons, price reductions, competitions are temporary tactics designed to stimulate either earlier or stronger sales of a product. Free samples, for example (combined with extensive advertising), may generate the initial trial of a new product. But the majority of products available at any given time are of course in the maturity stage of the life cycle. This may last for many years, until the product begins to be replaced by new ones and enters the decline stage. During this time, marketers can try out a number of promotional strategies and tactics. Reduced price packs in supermarkets, can be used to attract price conscious brand switchers, and also to counter a promotion by a competitor. Stores also often reduce prices of specific items as loss leaders which bring customers into the shop where they will also buy other goods.

Personal selling is the most expensive promotional tool, and is generally used only sparingly, e.g. as a complement to advertising. The emphasis upon this type of promotion will depend upon the nature of the product. Personal selling involves a person-to-person direct communication where the benefits of the product are explained. It has the following methods: shops employing salespeople (as opposed to check-outs); trade counters; showrooms; travelling representatives (reps). Sales work best when adverts have been placed in the appropriate press or other media and if discounts can be offered.

As well as prospecting for customers, spreading information about a company's products and services, selling these products and services, and assisting customers with possible technical problems, salespeople have another important function. Since they are often the only person from a company that customers see, they are an extremely important channel of information. It has been calculated that the majority of new product ideas come from customers via sales representatives.

C o m m e n t s

product or brand awareness -	поінформованість про товар або торговельну марку
product features -	характеристики товару
public relations (PR) -	зв'язку фірми з громадськістю
personal selling -	продаж товарів торговельними агентами
advert Br. = advertisement
hand-out -	реклама, що лунає в руки перехожим
viewer -	глядач
benefit -	користь, перевага
roadshow -	демонстрація (товару)
charitable donation -	благодійне пожертвування
publicity -	пропаганда, реклама
impact -	вплив
initial trial -	спробна покупка
reduced price pack -	набір товарів за зниженими цінами
price conscious -	покупець з розважливим відношенням до ціни
brand switcher -	покупець, що не дотримує визначеної торговельної марки і легко змінює неї на іншу
to counter -	протидіяти
loss leader -	товар, що продається в збиток (для залучення покупця)
sparingly -	зрідка
emphasis -	акцент
check-out -	контрольно-касовий пункт (у магазині самообслуговування,)
travelling representative -	комівояжер
via -	через, за допомогою