Advantages of BEING AN E-TAILER
Can be started with a smaller investment as no premises and fewer staff needed
Can sell a much larger range than a physical shop
Can undercut competitors’ prices by being cheaper (no shops, less staff)
Lots of potential to grow rapidly and reach a global marketplace
Lower fixed costs as no shops to pay rent on
PROMOTION STRATEGIES
advertising
sponsorship
product trials
special offers
branding
Disadvantages of BEING AN E-TAILER
Hard to establish trust with the customer as no face-to-face interaction
Website costs can be high
Security and fraud for online transactions are an issue
Only as strong as the delivery, if this is late then it may damage the reputation of the business
Reasons that a business uses ADVERTISING
To give customers information about a new product
To raise awareness of a product or a brand
To remind customers how great an existing product is
To persuade customers to switch or to try a new brand
Promotion: Advertising - Television
TV adverts reach the largest audiences of all so are perfect for mass-market products e.g. cheese
Lots of specific TV channels which help the business to target customers e.g. National Geographic, History channel
TV adverts are too expensive for small business start-ups
Promotion: Advertising - Newspapers
Local newspapers
Advertising a business in a local paper can be a good way to promote products and services and boost the profile in the local community
National newspapers
Larger businesses may decide to run an advertising campaign in a National paper, which will be seen all over the country and its population
Promotion: Advertising - Magazines
Magazine adverts are a very popular way of launching new products or reminding customers about how great old products are
Magazines have a pass-on readership which means more than one customer may be able to see the advert
Promotion: Advertising - Radio
Radio adverts are very cost effective, much cheaper than other methods of advertising
Radio stations have very specific audiences so are able to help businesses target the right customers
Radio adverts can be on the air quickly
Radio adverts good for small business as can use local radio stations to target local customers e.g.
ADVANTAGES OF USING SPONSORSHIPS AS A METHOD TO PROMOTE PRODUCTS AND BRANDS
Positive association of the product with a celebrity or a sport
Builds awareness of the brand
Ideal way to reach target market
DISADVANTAGES OF USING SPONSORSHIPS AS A METHOD TO PROMOTE PRODUCTS AND BRANDS
Difficult to tell what impact this has on brand loyalty or sales
Controversies with brand ambassadors saying the wrong thing against the brand
No guaranteed returns on the investment
More expensive than other methods of promotion
THE VALUE OF BRANDING
A strong brand is one that is recognisable, memorable and has a positive reputation
It helps customers to identify and differentiate the product or service from others in the market, and can also influence their purchasing decisions
Branding involves communicating the brand’s values, personality, and unique selling point (USP) to customers through the promotional mix
PUBLIC RELATIONS
Public relations is also known as PR
PR aims to build a relationship between the business and the public, to create a favourable corporate image
PR is unpaid communication about an organisation which appears in mass media
It could be a review in a paper of a product, guest columns, blogs, fact sheets, press releases or PR Events etc.
SOCIAL MEDIA
By using social media as a promotional tool a business can increase the visibility of their brand, making it more recognisable to potential customers
Social media platforms allow the business to target specific demographics and interests so that promotions can be tailored to that audience increasing the possibility of engagement
VIRAL MARKETING
Viral marketing is a strategy that aims to generate buzz and interest in a product, service, or brand by creating content that is engaging, entertaining, or informative enough to be shared by consumers on their social networks
This included:
Shareability – must be easy to share through social media
Appeal – has an emotional or entertaining appeal e.g. funny or shocking
Network effect – more people that share more it reaches new audiences
Amplification – influences amplify the content (Multiply the effect)
