Techniques for promotional applying

In an effort to gain an overview of the market marketing and strategy of evaluating current campaigns while designing new ones, the paper is organized into two major tasks. The first assignment attempts to define the role of promotion in the achievement of company goals and outlines the variety of approaches used. It is further subdivided into a single subtask. The second assignment is further subdivided into two sub-tasks. Its main objective is to value an existing promotional campaign and plan a future promotional campaign for UK’s biggest hotel chain – Premier Inn. While the first subtask in this assignment focuses on market research for the promotional campaign, the second subtask outlines a plan of the promotional campaign for the opening.

Assignment 1: Task 1

Aims of business promotion

Sales promotion in business refers to a collection of communication means that are either personal / non-personal that are employed to encourage consumers to buy a particular product (Mar Iman, 2002, 213). It can also be described as a facet of marketing that adds temporary value to a product or service in order to persuade the end user to purchase the particular brand (Baker, 1998, 410).

The objectives of promotion in business include:

• Its main objective is to generate sales for a product by either attracting new customers or retaining existing ones. This is further subdivided into strategies that help achieve either long-term or short-term gains.
• To introduce new products / services thereby persuading non users to try out a product. This product may be entirely new in the sense that it has never been offered for sale or may refer to a product offered to users who have no previous experience with it.
• To maintain the sales of a seasonal product. Some products such as Christmas decorations are sold only on particular seasons. In a bid to ensure that their sales are maintained during such periods, sales promotions are effective.
• To meet the challenge of competition where businesses apply promotional methods in a bid to ensure that they retain their market share especially in product markets.
• It is also seen as a move to create brand loyalty for a product.

Measuring the success of a promotional campaign

In order to evaluate the success of a promotional campaign, it is vital to identify the various promotional techniques you have utilized and assess the effectiveness of each. As such, the critique ought to be guided by three main questions: Has the tool for promotion generated good results? Does it convey the image we want? and finally, Does the tool address the right audience and speak to their particular values and needs (Fisher, Pride & Miller, 2006, 81).

In cases where social media campaigns were employed as the promotional methods, their success can be measured using social media analytical tools. Such tools are important in measuring and interpreting data related to social media initiatives. They include tools such as: Cyfe, Google Analytics, Social Mention, Tweriod etc. They give a description of the flow of traffic during the campaign period and report on the effectiveness of the campaign in reaching end users (Kurtz, 2016, 119).

In addition, the Return On Investment (ROI) method can be utilized in assessing the effectiveness of both print and outdoor and digital campaigns. By definition, the ROI refers to the rate of revenues received for every dollar spent on an expense (Kurtz, 2016, 119). What this implies is that the business can calculate how much they spend on promotional methods and compare this to the revenue they obtain during the campaign period. In this manner, they will effectively determine how successful their campaigns are.

Regulation of promotional activities

Promotional activities are regulated in a couple of ways. First, the government acts as a major regulator of such activities. It does so by coming up with federal laws that are designed to protect consumers from unfair or deceptive business activities e.g. creating false advertisements. In addition, government agencies such as the Federal Trade Commission created to oversee the advertising industry are also a form of regulation. Other agencies such as Food and Drug Administration (FDA), Federal Communications Commission (FCC) also work with government agencies in regulating advertising and promotions (Kaser, 2013, 370).

A second method of regulation is through self-regulation by the advertising industry players. In this method, voluntary rules of behavior are developed in a bid to maintain integrity. In addition, there exists self-regulatory groups such as the National Advertising Review Board that help monitor advertising to help protect against unfair practices in advertising. In addition, consumers also act as regulators by reporting uncouth and deceptive advertisements and promotions to relevant industries (Kaser, 2013, 370).

Finally, advertising ethics such as honesty, fairness, accuracy, when embraced by the industry players act as a way of regulating sales promotions. In this manner, they are able to ensure that they do not edge out their competitors unfairly. (Kaser, 2013, 370).

Promotional methods used by businesses

Various promotional methods are utilized in sales promotions (Bootwala, R. Mali & Lawrence, 2007, 4). These are described below:

First is the offer of free samples. This technique is employed in an effort to promote the trial of new products with a hope that new customers will be created from the exercise. Products that can be offered as free samples include shampoo, washing powder, coffee etc. A second method employed is the use of premium or bonus offers. For instance, offering a free toothbrush with the purchase of toothpaste, a free mug with the purchase of Nescafe, or even 30% extra in a one-kilogram pack. The method acts as a reward for loyal customers and is also an incentive to induce customers to buy new products.

Third is the utilization of exchange schemes where old products are exchanged for better and more improved ones often at lower prices compared to the original. Such a method is useful when a company is focused on product improvement. An example of such a promotion would be – get a color t.v. in exchange for your black and white one at $150. To boost sales during off-peak seasons, companies can utilize price-off offers as promotional techniques where items are offered at reduced prices. For instance, $10 off on purchase of 500gm Nescafe.

Coupons are also employed as sales promotion methods where a company strategically places discount coupons in newspapers, magazines, or on social media etc. Holders of such coupons are rewarded with discounts. The method is important when the company wants to boost sales for new or improved products by offering lower prices through the discount coupons. In addition, the method is also employed to reward loyal customers who follow various brands.

A sixth method employed in promotion is the use of fairs and exhibitions which may be organized at either local, regional or national and international levels. Through the exhibitions, goods are displayed and demonstrated to potential customers. In addition, they are offered for sale at lower prices boosting trial and sales of new products. Another popular promotion technique to boost sales of products is the use of scratch and win offers where customers scratch specific areas and are rewarded based on the message they find written there. This results in increased sales as customers purchase more products hoping to win prizes.

Current trends in promotional methods

According to Angus, 2015, some of the promotional methods that have been currently trending in 2016 and 2017 include the following:

First, is the deal of deals promotion technique where a company decides to run the same promotional campaign for a couple of days, with a new exceptional deal each day, for the series of days that the campaign is scheduled to run. For instance, 12 days of deals where a campaign runs for twelve days and in each of these days, a different deal is presented to customers. The technique creates a sense of urgency among customers in the products offered during the campaign since the offers change on a daily basis. As such, they do not want to miss the daily offers.

A second popular trend is referred to as “share with your friend offer”. In this method, the company offers to reward customers who share the company’s services or products with their friends. For instance, when Spotify was launching its new product, it offered to reward customers with a free three-month trial if they shared the company website with their friends and family leading to more subscription for Spotify. A third emerging trend is the “lucky buyer offer”. With this offer, companies reward a random buyer or shopper. For instance, every 100th buyer gets the product free. The offer creates interest in the products that they might be the lucky winners leading to more sales generated for the company.

A fourth technique employed is the extension of offers. With this method, companies strategically place the words “Extended” to campaign banners in an effort to woo consumers who were unable to take advantage of the offer during the official campaign period. Similarly, the technique is seen in promotions in e-commerce websites theatre where words such as “due to public demand, we have extended the offer.” are seen to feature. With the method, businesses are bound to increase their sales beyond campaign periods.

Finally, is the use of creative discounts which are time – barred. For instance, for an e-commerce website, shoppers who purchase products before midnight may obtain up to 35% sales discount while those who purchase during other hours get only 10% discount. This drives traffic to the website leading to more sales for the company.

Importance of branding in promotion

Branding is important in promotion in a couple of ways (Mendoza, 2003, 59). These include:

Branding leads to simplified sales promotion as the company’s products are easily differentiated from the currently existing products in the same industry through branding. In addition, it also encourages repeat sales from the fact that customers will easily identify the product when compared against other brand products.

Branding as well facilitates the introduction of new products to the market through distinct elements such as the logo, characters, slogans, and brand names. In this manner, branding minimizes comparison and protects against substitution. It also aids in segmentation among currently existing products.

Assignment 2: Task 1

This task is focused on evaluating the promotional campaign “Premier Weekend” by Parent Inn and its parent company Whitbread. The result is the evaluation report below.

Objectives of the campaign

The campaign’s main objectives were to highlight the passion of the brand in delivering a good night sleep and the feeling of general well being that follows and as well, the hotel intended to use the opportunity to launch its new Premier Inn bed with both a luxury topper and 1,200 springs ("Premier Inn Unveils New £15m Ad Campaign", 2014).

Promotional mix used in the campaign

The campaign employed some elements of the promotional mix. The main promotional technique employed was development of a television advert featuring the hotel’s brand ambassador, Lenny Henry ("Premier Inn Unveils New £15m Ad Campaign", 2014). The advert ran during premier hours (9pm) ensuring that it obtained the appropriate viewership. In addition, the company utilized public relations to aid in promoting the campaign. A targeted press campaign was scheduled to run in the Sun/Sun on Sunday, Metro, and Evening Standard, running across January and February ("Premier Inn Unveils New £15m Ad Campaign", 2014).

Campaign’s target market

The campaign’s target market was the middle class families as evidenced by scheduling the television advert during prime time when most families view television. In addition, by using Lenny Henry, the comedian, many middle class families would easily associate with him thus leading to the effectiveness of the campaign.

Choice of Media in relation to the target market

The use of the television advert in relation to the target market was appropriate given that the advert would run at prime time (9pm) during the anticipated show, Mr. Selfridge. In addition, the choice of media ensured that it would be easy to reach the middle class families.

Similarly, by using newspapers for its press releases, the hotel was guaranteed to obtain huge readership from its targeted middle class. The hotel also made use of social media and its website to feature the adverts thus reaching its online customers. By placing the campaign promotion banners appropriately on the company’s website and on its social media feed, it became easy to target more customers.

Integration of the promotional mix with other components of the marketing mix

In regards to the product aspect of the marketing mix, the hotel was focused on promoting its key product – the hotel with features such as comfortable king-size beds, ensuite bathrooms, free view T.V. and free Wi-Fi in rooms etc. It was also interested in highlighting its passion in delivering a good night sleep.

In regards to the price aspect of the marketing mix, the hotel was focused on offering affordable and cost-effective prices for its target market. Likewise, in regards to the promotions aspect, the hotel would offer incentives such as offers to enable more customers to book rooms in the hotel. Finally, in regards to the place aspect, the hotel offered value at the Whitbread court in Porz Avenue, Dunstable. A prime location for travelers in the city.

Assignment 2: Task 2

This task is focused on planning a promotional campaign for the Opening of a new Premier Inn hotel at Washington City. The result is the promotional plan below.

Objectives of the campaign

Premier Inn has decided to open a new branch at Washington City. In an effort to increase awareness of the hotel at the city and increase sales, a campaign dubbed “Elegant Washington Weekend” is to be set up. The objectives of the campaign include:

• Create awareness on the features of the hotel to both the business and family communities in the area in order to increase number of bookings.
• To highlight the passion of the hotel in offering elegant hotel services at affordable prices.
• To increase the number of hotel bookings by business travelers and the community at large in the city.

Choice of Media in relation to the target market

The target market of the campaign “Elegant Washington Weekend is both the business community and the middle class families in the area. Business travelers are targeted due to the prime location of the city in U.S.A offering a convenient meeting place for most businesses. In addition, families looking for an elegant yet affordable hotel experience in Washington are also targeted.

The media to be used in the promotion includes print media such as business newspapers and magazines. Such media are useful in reaching the business community. In addition, outdoor advertising such as use of billboards and print merchandise such as brochures and fliers to be placed in the hotel is also employed.

Suitable Promotional Activities

In order to promote the campaign, the following promotional activities are suggested:

• Setting up billboards at the city centre to attract business people
• Use of Social Media to reach online customers
• Strategic placement of fliers in publications such as business magazines and newspapers.

Implementation Plan to meet the Objectives

In order to implement the plan in an effort to attain the objectives of the campaign, it is important for the following activities to be streamlined:

• Ensure that the objectives of the plan are well understood in order to direct efforts towards their achievement.
• Develop necessary agreements between important parties in order to ensure that the agencies creating adverts for the campaign are in line with the actual intended objective.
• Ensure legal requirements are complied with in the campaign so as not to violate any advertising laws and to ensure that all parties are legally compliant.

Conclusion

The assignment, divided into two projects has taken both a theoretical and application approach in tackling promotional methods used in business. The first assignment dealt with the aims of promotion in business, methods to evaluate the success of campaigns, the regulation of promotional techniques, methods employed by businesses in promotion as well as emerging trends in promotion. In addition, it also covered the importance of branding in sales promotion. The second project was subdivided into two tasks – the evaluation of Premier Inn’s promotional campaign in 2014 and development of a new promotional campaign for a new Premier Inn hotel in Washington city.

Both projects have been useful in solidifying concepts in promotional techniques employed by businesses as well as leading to an understanding of the how they can be employed in planning promotional campaigns.

References:

Angus, B. (2015). 6 Promotion Trends Driving Big Sales in 2016 | bobangus.com. Bobangus.com. Retrieved 10 June 2017, from http://www.bobangus.com/promotion-trends-2016/

Baker, M. (1998). Marketing: Managerial Foundations (1st ed., p. 410). South Yarra: Macmillan Education.

Bootwala, S., R. Mali, S., & Lawrence, M. (2007). Advertising and Sales Promotion (1st ed., p. 4). Budhwar Peth: Nirali Prakashan.

Mar Iman, A. (2002). An Introduction to Property Marketing (1st ed., p. 213). Skudai, Johor: Penerbit Universiti Teknologi Malaysia.

Mendoza, S. (2003). Microsoft Dynamics CRM 2011 cookbook (1st ed., p. 59). Manilla: Rex Bookstore.

Fisher, P., Pride, M., & Miller, E. (2006). Blueprint for your library marketing plan (1st ed., p. 81). Chicago: American Library Association.

Kaser, K. (2013). Advertising & sales promotion (1st ed., p. 370). Mason, OH: South-Western Cengage Learning.

Kurtz, D. (2016). Contemporary marketing (1st ed., p. 119). Boston: Cengage Learning.

Premier Inn Unveils New £15m Ad Campaign. (2014). Whitbread.co.uk. Retrieved 10 June 2017, from https://www.whitbread.co.uk/media/news-press-releases/premier-inn-15m-ad-campaign.html