Promotion, marketing strategy and selling abroad

Last time

Before we start: last time, in Product, you learned these points. Here they are again on one card. Keep them in mind, because today builds on them.

Telling customers

Customers cannot buy a product they have never heard of. Promotion makes them aware of it and persuades them to buy. This lesson covers promotion, how the four Ps fit into a strategy, the laws that limit marketing, and selling in other countries.

Aims of promotion

To inform customers about a new product, or a change to an existing one. To persuade customers to buy, or to switch from a rival's product. To build the brand and remind customers, so sales and loyalty stay high.

Advertising

Advertising is paid-for communication through media: television, radio, newspapers, billboards, websites and social media. Television reaches many people but is very expensive. Social media is cheaper and can target particular groups. The choice depends on the target market, the budget, and the product.

Sales promotion

Sales promotions give a short-term reason to buy: price discounts, buy-one-get-one-free, free samples, competitions and loyalty points. They boost sales quickly and encourage people to try a product. But they cut profit per item, and sales may fall back when the promotion ends.

Other promotion

Personal selling: a salesperson explains the product face to face, useful for expensive or technical products. Sponsorship links the brand to an event or team, such as a cricket tournament. Digital promotion: social media posts, influencers, and online adverts that track who responds.

Marketing strategy

A marketing strategy is a plan to achieve the business's marketing objectives, such as raising sales or entering a new market. It combines the four Ps to suit the target market: the right product, price, place and promotion together. A luxury product needs a high price, selected shops and a stylish promotion. A mass-market product needs a low price and wide distribution.

Increasing sales

Ways to increase sales: improve or extend the product, cut prices or offer promotions, sell in more places or online, and advertise more. Or enter new markets: new customer groups, or other countries. Each has a cost, so the business should choose the one that suits its customers and budget.

Legal controls on marketing

Laws stop false or misleading descriptions and adverts, so customers are not tricked. Laws require products to be safe, and to be of satisfactory quality and fit for purpose. Laws can stop unfair pricing and require correct weights and measures. Breaking them brings fines and bad publicity.

Entering markets abroad

Selling in other countries brings more customers and higher sales, and spreads risk if the home market slows. It can extend the life of a product that is mature at home. And larger output can bring economies of scale.

Problems of selling abroad

Different languages, cultures and tastes; different laws; transport costs; and strong local competitors. Exchange rates can change the price and the profit. Firms reduce these by joint ventures with local firms, using local agents, or licensing and franchising.

Mistakes that lose marks

Mistake one: calling sales promotion advertising. Advertising is paid media; sales promotion is a short-term incentive. Mistake two: a marketing strategy where the four Ps do not fit together, such as a luxury product at a low price. Mistake three: listing problems abroad without saying how they affect the business. The fix: name the method, fit the 4Ps, and give the effect.

The full-marks tip

The full-marks tip: choose promotion that suits the target market and the budget in the case. For a new market abroad, explain each problem's effect on the business, and how it could be reduced.

On one card

So, on one card: promotion and marketing strategy. Keep it for revision.