Promotion

Unit 6

Words to remember:

be receptive to – бути сприйнятливим до

business-to-business –відносини по типу «бізнес для бізнесу», електронна торгівля за схемою «підприємство-підприємство»

count on – розраховувати

digest – засвоювати, сприймати, опановувати

direct marketing – прямий маркетинг, збут без посередників, адресний маркетинг

direct response advertising – реклама прямого відгуку

display –показ, демонстрація

event – захід (прийом, вечір)

free samples –безкоштовні зразки

generate sales –породжувати збут

industrial market –ринок виробників, ринок товарів промислового призначення

know-how – «ноу-хау», виробничий досвід і знання; виробничі секрети

leaflet –рекламналистівка

medium –засіб

merchandising –мерчендайзинг (діяльність, націлена на прискорене просування товару), політика збуту

personal selling – особистий продаж

point-of-purchase – місце продажу, місце покупки

promotional tools – засоби стимулювання збуту

publicity – публічність, гласність, популярність, слава

public relations –зв’язки з громадськістю

pull strategy – виманювання товару

push strategy – проштовхування товару

sales promotion –стимулювання збуту, просування товару

sales team –група збуту

sparingly –скупо

sponsorship – поручительство, порука, гарантія, фінансування

stakeholders –заінтересована сторона, акціонер

stimulate sales –стимулювати продаж

store layout –внутрішнє планування магазину

target customer –цільовий споживач

trade fair – ярмарок

up-market – елітарний, для шикарної публіки

vending-machine – торговий автомат

via – через, за допомогою

Exercise 1 Read and translate the text. Entitle it.

Companies have to develop good products or services, price them attractively, and make them accessible to their target customers. But this is not enough: they also have to use various promotional tools to generate sales. Even a good, attractively priced product that clearly satisfies a need has to be made known to its target customers. The producer (or importer, and so on) has to develop product or brand awareness i.e. inform potential customers (and distributors, dealers and retailers) about the product’s existence, its features, its advantages, and so on. According to the well-known ‘Four Ps’ formulation of the marketing mix (product, place, promotion and price), this is clearly a matter of promotion. Under a classification used in most marketing textbooks, advertising is only one of four major promotional tools. The others are sales promotions, public relations, and personal selling.

Public relations (often abbreviated to PR) is concerned with maintaining, improving or protecting the image of a company or product. The most important element of PR is publicity which (as opposed to advertising) is any mention of a company's products that is not paid for, in any medium read, viewed or heard by a company's customers or potential customers, aimed at assisting sales. A lot of research has shown that people are more likely to read and believe publicity than advertising.

Sales promotions such as free samples (which may generate the initial trial of the product), coupons, price reductions, competitions, and so on, are temporary tactics designed to stimulate either earlier or stronger sales of a product. They might equally be designed to strengthen brand loyalty among retailers or to gain entry to new markets.

Personal selling is the most expensive promotional tool, and is generally only used sparingly, e.g. as a complement to advertising. Salesmen 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.

But, of course, a large variety of other communications instruments exists, each with its own typical characteristics, strengths and weaknesses. Let’s consider some of them.

Sponsorship implies that the sponsor provides funds, goods, services and/or know-how. The sponsee will help the sponsor with communications objectives such as building brand awareness or reinforcing brand or corporate image. Sports, arts, media, education, science and social projects and institutions, and television programmes can be sponsored. Events are often linked to sponsorship. A company can sponsor an event or organise its own events, for instance for its sales team, its clients and prospects, its personnel, its distribu­tion network, etc.

Point-of-purchase communications are communications at the point of purchase or point of sales (i.e. the shop). It includes several communications tools such as displays, advertising within the shop, merchandising, article presentations, store layout, etc.

Exhibitions and trade fairs are, particularly in business-to-business and industrial markets, of great importance for contacting prospects, users and purchasers.

Direct marketing communications are a personal and direct way to communicate with customers and potential clients or prospects. Personalised brochures and leaflets (with feedback potential), direct mailings, telemarketing actions, direct response advertising, etc. are possible ways of using direct marketing communications.

E-communications offer new ways to communicate interactively with different stakeholders. The internet, together with e-commerce, combines communicating with selling. Mobile marketing uses the possibilities of text, video and sound transfer to mobile phones. Interactive digital television has the potential to transform traditional advertising into interactive communication on television.

There are two ways to promote the movement of products from producers to the customers. The first is called a push strategy. In push strategy, the producer uses advertising, personal selling, sales promotion, and all other promotional tools to convince wholesalers and retailers to stock and sell merchandise. If it works, consumers will then walk into the store, see the product and by it. The idea is to push the product down the distribution system to the stores. One example of the push strategy is to offer dealers one free case of beer or soda for every dozen cases they purchase.

A second strategy is called a pull strategy. In a pull strategy heavy advertising and sales promotion is directed toward consumers. If it works, consumer will go to the store and order the products. The store owner will then order them from the wholesaler, who will order them from the producer. Products are thus pulled down through the distribution system.

Exercise 2 Read the text again and find the definitions to the following notions:

1. Promotion. 2. Public relations. 3. Publicity. 4. Sales promotions.
5. Personal selling. 6. Sponsorship. 7. Point-of-purchase communications. 8. Exhibitions and trade fairs. 9. Direct marketing communications. 10. E-communications. 11. A push strategy. 12. A pull strategy.

Exercise 3 a)Read the interview of Jogishwar Singh explaining the promotional strategies for the trial launch of Fresh Fries.

1. What do you think Jogishwar Singh means by ‘launching a media blitz’?

2. When will the company start to use advertising?

3. According to what Jogishwar Singh says, what is the difference between advertising and publicity?

Interviewer: How do you expect potential customers to become aware of Fresh Fries? Are they just going to walk down the street and see these machines?

Jogishwar Singh: That is correct. You know the machines will be painted, as you can see from the picture, in very bright fast-food colours, which is red and yellow. I’m sure you have really make an effort in order to miss such a machine if it is placed on the path around which you will be, and you know we will place many of them, even the test machines, we will put them in and around Piccadilly Circus, so I’m sure people will notice them.

I.: So the location is important?

J.S.: It is important, yes.

I.: Advertising and publicity would be really secondary, or...

J.S.: Well, I wouldn’t say it’s secondary but I think it is more important, you know, that once... we are not really launching a media blitz until our test machines are out, and we have digested the lessons from the first series of 25 machines. Then, we’ve been talking to some television chains, you know, who are very much interested in the product, and they are, they have already confirmed to us that they are willing to make short programmes that they will broadcast on their business news. Now that is all free publicity for us, you know. We are counting on the novelty of the product to get us free time on television and so that we can concentrate... We will all have paid advertising, but you know, according to our experts, the best advertising we can get is to get people to taste the fries, we prefer to give these machines free for three months for trial, so you know, the operator gets them free for three months, and I think that is a much better advertising strategy.

I.: Absolutely. Your publicity strategy gets me here. I saw you on the front page of a newspaper...

J.S.: Which incidentally, I didn’t tell the newspaper to put our picture, he seemed to like my turban...

b) Look at the phrases below. Which of these topics are mentioned in the interview?

1. free advertising on television

2. publicity in newspapers

3. publicity on television

4. giving away the fries for free for a trial period

5. letting vending-machine operators have a free trial

6. paid advertising

7. the colour of the machines

8. the fact that this is a novel product

9. the price of the product

10. the size and shape of the machines

11. the unique taste of the product

12. where the machines are situated

Exercise 4 There exist different types of discounts which are an effective mechanism of promotion. Match the discounts below to their definitions.

1. trade discount   2. bulk discount   3. promotional discount   4. cash discount   5. professional discount   6. employee discount   7. seasonal discount

a. a discount given to buyers purchasing a large amount b. a discount for payment in cash c. a discount offered on goods sold at the ‘wrong’ time of the year, such as ski equipment in the summer d. a discount given to people in a particular field, for example when doctors pay a reduced price for medicine e. a discount for staff f. a fixed percentage offered to a distributor g. a lower retail price for a special sale

Are all of these discounts offered in your country? What discounts have you ever used? How do they help companies reach their goals?

Exercise 5 Discussion. What kind of sales promotions are you receptive to?

· coupons giving a price reduction?

· free samples?

· discounts for buying a large quantity?

· price reductions in shops?

· packets offering ‘20% Extra’?

Exercise 5 Project: Promotional strategies. Imagine that you, in a team of three or four people, are responsible for promoting one of the following:

• a new, up-market health and fitness club

• a new brand of jeans, manufactured by a new (and therefore unknown) company

• a new, fashionable but inexpensive range of quartz watches

• potatoes, to be sold in supermarkets

• a new taxi company in your town

Decide exactly what your product is, what is special about it, and which tools you would use to promote it. Imagine that you have a generous budget, and are thus able to employ several different tactics.

Дата добавления: 2014-12-23