1. Memory Challenge
Marketing
Prepared by
Mehul
Rasadiya
K.K.Parekh Institute of Management of Studies

2. Several key terms will
appear
They will disappear after
30 seconds (do not write
anything in this time)
Your task:
(1)List the terms + (2)
Define them
(8 mins to get as many as
possible)

3. Product life
cycle
Cost plus pricing
Loss Leader
Price
skimming
launch
Diversify
Degree of competition

4. Over to you!

5. 7.3 Marketing mix: Promotion
Learning Objective
To understand the promotions businesses can use to
achieve sales growth
To understand how the promotional mix is selected
Learning outcome
You will present a promotional plan in which you apply
your knowledge of product, price and promotion

6. 7.3 Marketing mix: Promotion
Promotion has several important roles to play in
marketing a product
Informs consumers of new products
Creates a brand image and sense of identity
Supports other marketing decisions such as a
reduction in price
Helps a business to achieve sales growth
Promotion – all
the ways a
business
communicates to
consumers with
the aim of selling
products

7. 7.3 Methods of Promotion
Advertising
Informs consumers abut new products
Creates new interest in established products
Adverts with celebrities or filmed in expensive
locations help create an exclusive brand
Sales promotions
Games, competitions, special offers, BGOF
Encourage consumers to buy more
Or buy this product rather than the
competitors
Direct marketing
Directly contacts consumers through Email,
telemarketing, direct mail
Dell uses mail drops and newspaper leaflets
to get people to buy from the company website

8. 7.3 Selecting the promotional mix
Some firms use more than one form of promotion
Cadbury’s uses TV, newspapers, shop point of sale,
sales promotions such as sports gear for schools and
sponsorship
There are various factors that affect the choice of
promotional mix
Cost and affordability – TV is very expensive and
most would not be able to afford it
Nature of the product
If a business was selling to other businesses
(B2B) it would not advertise on the TV
A B2B promotional mix might use trade fairs and
specialist magazines
Nature of the market
If the market is local the firm will not advertise
on national TV – they would be more likely to put
leaflets through doors (direct marketing)
When a market is spread over a wide
geographical area advertising and sales
promotion are more common
Competitors’ promotions
If competitors are spending a lot then this will
lead the business to do the same
Complete
activities on
P117
sponsorship – a
business pays for
an activity or an
event to gain
publicity
......videosCadbu
ry's Coronation
street sponsorship
adverts.flv

9. 7.3 measuring the effect of
advertising
Marks & Spencer used taxi
advertising in London a part of its
campaign to raise consumer awareness
of its new clothes range
During the 13 week campaign sales
went up 10.4% with sales of clothing up
by 10.7%
Why is it important to keep a record of
sales changes during a promotion
campaign?
Because you need to know that the
money you are spending on a campaign
is having the desired effect
Advertising does not always work

10. 7.3 Marketing mix: Promotion
Red Bull
The Red Bull energy drink is sold all over the
world. Over 4 billion cans are sold each year.
Rather than spend millions of pounds on
traditional poster or television advertising, Red
Bull uses a range of different promotional
activities. For example, it sponsors extreme sports
events such as snowboarding, cliff diving and
surfing; it also gives cars featuring large Red Bull
cans to students to drive around universities and
get others interested. Its slogan is Red Bull ‘gives
you wings’.
Why do you think Red Bull uses these different
forms of promotion rather than the more usual
advertising?
Answers might include:
may fit with its brand image, e.g. unusual,
distinctive, does things differently
may reach its target audience more effectively,
e.g. an active, relatively young audience
may be more cost effective

11. 7.3 Marketing mix: Promotion
Eggxactly
The Eggxactly was designed by James Seddon.
James often overcooked his daughter’s boiled
eggs and decided that cooking eggs should be as
easy as making toast. He experimented a lot and
then came up with the idea of using soft stretchy
heating elements instead of boiling water. By
stretching the elements over the egg and
controlling them with a microprocessor he was
able to cook eggs accurately and just the way his
daughter likes them. (See: www.eggxactly.com)
How would you promote the Eggxactly?
Answers might include:
need to stress its benefits
need to decide on the target audience
need to decide on how best to reach this
audience (e.g. what age, what interests, what is
their lifestyle, what do they read and watch and
listen to?)
would depend on the budget and desired level of
sales

12. Assessment time
You are a soft drinks distributor in Bahrain.
A company called OnBev has offered you the
licence to sell Effect (their new energy drink)
in Bahrain but it needs to know that you are
going to do a good job of marketing
You need to prepare a short presentation
that demonstrates the following
- Your understanding of the product
including how it will fit with your product
portfolio
- How you will price the product
- How you will promote the product
- How you will get the product to the different
types of consumer in the market (place)