P1-Describle the promotional mix used by two selected organisations for a selected product/service.
In this report, I will explain what the promotional mix is, and how it is used, by two selected organisations for a selected product/service. I am looking at Apple and Haringey Sixth Form Centre and I have also selected a product or service for each business.
Define promotional mix
The promotional mix is a form of communication with the customer as a marketing strategy and these are methods used: advertising, sale promotion, sponsorship, personal selling, direct marketing and public relation. For example, the Xbox 720 is a new product and must have a promotional mix because customers will buy it and it can make the company much more money for Microsoft. If Microsoft does not use a promotional mix they will not make sales.
This is an important media tool used to communicate with the customers and encourage them to buy goods and services, giving specific information about a product’s features. These are the methods of advertising; online, TV, newspaper and billboards. For example, Xbox 720 advertises on YouTube where customers can view advertising which encourages customers to buy and then communicate so that many other customers will choose to buy the product.
Personal selling encourages customers to buy goods or services and to establish a relationship. Personal selling can be done in store, online or on the telephone. For example, if a customer comes into the store and asks what is Xbox 720, the personal seller can perform a display, talking about the product and features it has, if a customer is happy then they can buy it.
A sales promotion is a deal, discount and low prices for customers to buy products. For example, the Buy One Get One Free (BOGOF) promotion has been used by Tesco.
Public relations (PR)
Public relations is defined by the Institute of Public Relations as ‘the deliberate , planned and sustained effort to establish and maintain mutual understanding between an organisation and its public’. There is a key difference between publicity and public relations. A business has less control over publicity, which can be either good or bad. If a food manufacturer receives publicity about a nail being found in their food product, then this publicity can be detrimental or negative to the business.
If, however, it is discovered that one of their key ingredients in the product has been proven to reduce the risk of cancer, then this will have a positive effect on the business.
Public relations activities can include, for example, organising conferences, open days, hospitably events and award celebrations. A business may be expanding and planning to employ another 300 people. The public relations manager may then issue a press release announcing this and newspapers may print this, projecting a positive image of the company to the public.
Direct marketing is communicated to a customer to send a message such as low prices, new products and half price offers. These methods include: sales online, by smart phone, app advert and email. For example, Amazon apart from emailing their customers and keeping them informed about their latest products that are available for purchase, they also send information to customers about any sales or deals they are offering to their customers.
Sponsorship is where an organisation pays to be associated with a particular event, cause or image. If a company wants to sponsor a football team however costly it may be to the company, it will also bring them new customers and open new lines to communicate with old and potential customers. For example, Microsoft had to pay £1 Millions for TV sponsorship on Football’s Premier Leagues however; this brought them new customers, new products and made extra sales for the company.