VILNIAUS GEDIMINO TECHNIKOS UNIVERSITETAS
VERSLO VADYBOS FAKULTETAS
Tema: “Promotional tools”
Atliko: Simona Aškelovičiūtė, ĮV-2/1
Tikrino: J. Mickonis
Vilnius
2003
Promotional tools
Companies have to develop good products or services, price them
attractively, and make them accessible to their target customers. But this
is no enough: they also have to use various promotional tools to generate
sales. Promotion is one of the four P’s in the marketing mix. It is used to
inform the consumers about a product and to persuade them to buy it.
According to a classification used in most marketing textbooks there are
four major promotional tools:
1. Advertising
2. Public relation
3. Sales promotion
4. Personal selling
Advertising
Advertising is a paid form of promoting the products and/or image of
the enterprise in a non-personal way to a mass audience. The other
definition: advertising is limited to paid, non-personal communication
through various media by organizations and individuals who are in some way
identified in the advertising message. Advertising may be in the form of :
1. A simple advertisement in for example the local press informing the
public where the business is situated, and what type of products or
services they offer.
2. An advertising campaign, which combines a number of methods to promote
the firm and its products.
Advertisements consists of four main elements, namely:
1. Sender, the advertiser
2. Message, i.e. the advertisement
3. Medium, i.e. the method through which the advertisement is sent
4. Receiver, i.e. the consumers
Firms will often approach advertising consultants to design
advertisements and plan advertising campaigns. Advertising agencies will
employ people with the required skills to design and write advertisements.
Artists to draw illustrations or frames to represent a visual
advertisement.
Copywriters to write the text for the advertisement.
Designers responsible for the total outlay of the advertisement.
Market research analysts who are responsible for selecting the appropriate
advertising media for the advertisement to be placed in
Advantages of advertising:
1. Advertising may lead to increased sales, which leads to mass
production and therefore cheaper prices.
2. Advertising informs the consumer about the various products on the
market, which leads to a better choice.
3. It leads to greater competition and therefore better quality and lower
prices.
4. Lower prices of media in which advertisements appear for example
magazines, newspapers, etc.
5. Improves standard of living, because consumer goods become more
affordable.
Disadvantages of advertising:
1. Advertising is expensive and if it fails to increase sales, prices
will increase.
2. Consumers are tempted to purchase goods and services, which they do
not really need.
3. Advertising can be unethical. Accused by some of promoting sexism and
greed.
4. Pollution. Billboards can for example deface natural features.
Leaflets may be thrown away when handed out in public, which adds to
pollution.
The public benefits from advertising in the following ways:
Advertising is informative.
Advertising provides us with free TV and radio programs, because
advertisers cover most of the production costs.
TV has many advantages to national advertisers, but it is expensive.
However, there are few ways to reach as many people with such impact.
Marketers must choose which media and which programs can best be used to
reach the audience they desire.
Non-network stations and alternative forms of media are less expensive.
Public relation
Publicity is the firm’s solicitation of verbal and written public
discussion and recognition. The message can therefore be positive or
negative and is not paid for. Also known as public relations. Larger firms
often have their own public relations department, with a public relations
officer in charge. The main task of the PR department is to present a
positive image of the firm and its products to the public. Also to make
news and thereby gain free and favorable publicity. A variety of methods
are usually employed to create a favorable image with the public:
10. Good customer relations.
11. Sponsorship of sporting, cultural, community and charitable
events and organizations.
12. Endorsements from celebrities.
13. Free gifts promote both image of firm, and its products.
PR is the management function that evaluates public attitudes,