Task 1 (P1): Describe the promotional mix used by two selected organisations for a selected product or service.
In this section of unit 9, I will be discussing promotional mix. I will also include methods of promotion and briefly explain the aims of each promotional mix. I will choose 2 similar organisations and describe its promotional mix.
Promotional mix is found to be one of the 4Ps in the marketing mix, the other three are product price and place. Promotional mix is how organisations communicate with their customers about their product or service, purely to generate sales and profit. Promotion is the main way of customers recognising the business. There are many methods of promotion which many businesses use such as Tesco and Sainsbury’s.
Types of promotional mix:
Advertising: One of the main factors of the promotional mix is advertising. Advertising is one of the best ways of reaching out to a wider range of customers and potential customers. This will allow customers to be aware of the business and increase in popularity to win over other competitors. Using this strategy, businesses can gain the likes of customers and increase the number of customers by being persuasive and sending the right message.
Sales Promotion: Sales promotion is used by many organisations as it is very common and effective. Sales promotion is an efficient way of convincing customers to buy their products. One of the ways in which organisations can do this is by looking presentable and stand out. This helps attract customers. Companies also use loyalty cards which allow customers to earn points and vouchers after buying goods from the business. These help increase sales and profit for short-term purposes.
Direct Marketing: Direct marketing is when an organisation advertises or promotes their business directly to the customers for example leaflets and emails posted to houses or even via telephone (telemarketing). The main modern method used is internet and social media marketing. These are part of direct marketing and helps companies reach to customers. People use the internet more than anything in this day and age and what better ways are there. This way companies such as Tesco can communicate with their customers about their products, services or inquiry.
Personal Selling: Personal selling is a way of communicating one to one with the customers. This could be potential customers or current customers. This is a very effective method although it can be costly. It creates a better connection with customers and very direct. Customers will be drawn to this business as it shows the level of connection it can attain between customers and buyers. This will lead to businesses successfully increasing customer and potential customers.
There are few more types of the promotional mix which business use to their advantage. I will move on to the businesses I have chosen and give examples of their promotion and describe how they use it to increase sales and establish a profile.
I have chosen two simple organisations to complete this task. Using Tesco and Sainsbury’s I will share some of the ways they use promotional mix in and specific product or service and the aims of each of the factors.
Advertisement: one of the businesses I have chosen is Tesco PLC regarding promotional mix and how they utilise it. Tesco provides Tesco mobile for their services and uses various promotional mix methods to promotes their service. One of the obvious ways is by advertising. Tesco has many types of advertisements from television and online to billboards. Advertising online and television and other ways is an effective and efficient way of reaching out to customers and potential customers. This can help raise awareness for Tesco and increase sales. Tesco mobile will be known to many people and will reach millions online.
On the advert itself, Tesco creates a short clip of a few people having a rough time on a family holiday. The advert then promotes Tesco mobile as a means of making them happy and smile. Customers will be drawn towards their service and this does not just direct to their current customers but potential customers. This way Tesco will target both customer and potential customers.
Branding: Tesco also uses branding to create awareness for Tesco customers and potential customers. Tesco has put a brand on their products and services in 1924. Having a brand on their network allows Tesco to differentiate themselves from other competitors such as Sainsbury’s. It will also help customers see the difference between their products to others and help keep them loyal to Tesco. Branding also will motivate the customers of Tesco and bring about more users. Eventually leading to sales and profit.
Tesco created a brand purely for the reason which other businesses has, which is to create a connection between the customers and the brand. This connects the customers to Tesco’s service, allowing them to stay loyal to the business. On top of that, branding can help persuade Tesco’s potential customers utilise their service ending in an increase in customers and sales.
Advertisement: For Sainsbury’s I have chosen a product which Sainsbury’s sell which is milk chocolate. Milk chocolate is produced in Germany and very cheap compared to other businesses. This can be found in any Sainsbury’s store and can also be found easily online.
Advertisement is a way of promoting their service or product publically. Sainsbury uses different types of advertisement to present their products in a convincing way. There are many advertisements which can be found online such as YouTube which is used by millions of people. Their products are also presented on TV being watched by many people. Using this method, Sainsbury can create an awareness for their products such as their chocolate. Sainsbury’s can be very creative and be persuasive to their potential customers and build a strong brand image of their products. This has an overall pull affect to the potential customers and current customers. However, Sainsbury’s have a possibility to present themselves which can be turned down by their customers depending on how they advertise. Using advertisement Sainsbury’s will aim to draw customers and increase their sales.
Direct Marketing: Direct marketing is used by almost all businesses if not all. Direct marketing is a way of directly providing information about the service, product or even the business. This could be leaflets, messages even media form such as emails.
In this day and age, using media and other direct marketing methods is one of the best ways for Sainsbury’s to effectively communicate with the customer. Using this the company can build a bond resulting in customers willing to buy their products. Their aim will be to be persuasive and have good communication, moreover, the responses from their customers will give them a good feedback in which they can use to their advantage. Sainsbury’s can create good awareness for milk chocolate and increase in customers.
Task 2 (M1): Explain how promotion is integrated with the rest of the marketing mix in a selected organisation to achieve its marketing aims and objectives.
In this section, I will be explaining how Tesco’s promotion is linked with the rest of the marketing mix to achieve their targets and aims.
Marketing mix is a way of promoting a product service or even a company using various techniques and getting the information to the customers. Promotion is one of the Ps of the marketing mix, has a link to the rest of the Ps.
Tesco is one of the world’s biggest retailing company has reached a level where the customers are happy. And through the marketing mix, Tesco has made this possible. The promotion has a connection with the other marketing mix as it falls under its topic and all of these help towards benefitting Tesco. Tesco has used marketing mix to achieve their aims and objectives that they have planned in the past.
Tesco has promoted and represented themselves using advertisement which is one of the elements of promotion. The advertisement is a means of sending information about the company such as Tesco to their customers and potential customers. Tesco seems to be comfortable in this field as they have many advertisements on TV, social media and on the internet. Tesco uses many types of advertising and this helps generate awareness for Tesco.
How it links with marketing mix?
Informing the customers about their best prices and offers Tesco increase in the number of customers. This is one of the Ps which is pricing and has many benefits to it. Tesco’s low pricing acts as a magnet and advertisements helps present these prices. By advertising, Tesco can increase the awareness of their stores and their location which is related to place in the marketing mix. Tesco also needs its people (which is one of the extended Ps) in order for them to carry out this activity. The customers will also want to know more about Tesco’s products and services and will want it to be working or come to use for what it does and promotion will help inform customers about their useful products and services.
The Link between these is very important as it will help achieve the aims of Tesco which is to help their customers who may not be able to pay much for everything. And also increase in customers and make it easy for them to shop at Tesco by saving the journey distance. These are easily achieved by Tesco as they have thought about these and use their promotion and marketing skills to achieve their objectives.
Sales promotion has a huge impact on Tesco and has a very strong chemistry between other marketing mix strategies. Sales promotion is a temporary way to motivate customers to buy their products by making it look attractive physically and price wise. Since the beginning, Tesco has had the aim to help the customers that can’t always afford pricey items and purely are for the customers as they say customers are the heart of their business. which is why Tesco use sales promotion to achieve their main goal. Sales promotion can be very effective and usually requires the assistant of other marketing methods to fully make the use of.
How it links with marketing mix?
Sales promotion includes discounts, sales, loyalty cards and bulk pricing. These are some in which Tesco use to their advantage. Having sales and discounts means the pricing should be good and affordable and priced correctly. This is part of pricing and its requirements. It also requires the people such as the stuff and managers especially to have good pricing and price it decisively. According to some sources, there is an 8th P in which it has a connection to which is the productivity and quality. Sales promotion team needs to be asked the question that is Tesco offering a good deal for their customers? And the answer is clearly yes as the customers are happy with the pricing and they are increasing in customers.
Tesco branding Also plays a big role in the rest of the promotional elements. Tesco’s history shows that they expanded to make their own brand in 1924 in which they sold their first branded product. This will help the retention of customers and distinguishes them from other competitors. Branding helped a business like Tesco grow in the business industry and also with the help of marketing mix Tesco managed to accomplish their goals. The branded product must be fit for the task for the customers and also branded products can be pricey. However, Tesco’s products are still affordable and allow all customers be satisfied with their products.
Tesco shows that through the integration of their marketing mix and promotion, they find it unchallenging to attain their aims and objectives. By even having a link with an extra P of marketing, Tesco shows their integration, allowing them to be successful and create sales, increase and grow in customers and the business itself.
Task 3(D1): Evaluate and justify the use of an appropriate promotional mix in relation to marketing objectives for the selected organisation.
in this section of the Assignment, I will discuss the use of promotional mix in relation to marketing objectives of Tesco.