74. Promotional Mix 1. Missing words In 2009 Marmite spent £1,500,000 on advertising, mostly on TV. It also ran on-pack promotions to encourage customers to buy Marmite more _____________. This cost £200,000. It didn’t spend any money on direct marketing (such as ________________ posted to selected houses) or on sponsorship. As Marmite sales volumes fell by 8% in 2009, the brand manager decided to consider a different promotional __________ for 2010 and 2011. The promotional mix is the way that a company divides up its promotional budget. The more it spends on sponsorship the less it can find for TV or ____________ advertising. Clever companies try hard to measure the effectiveness of each part of their promotional spending. If TV works best, next year they’ll spend a higher % of the budget on TV. Missing words: mix, radio, leaflets, often 2. Analysing a brand’s promotional mix Compare Wilkins Jam - Prom otional Mix the Total spending: £100,000 a year promotional Promotions mixes of Direct 5% two rival marketing 15% producers of jam: Wilkins and AdvertSponsorBonne ising ship 75% Maman. 5% Answer the questions below.

Bonne Mam an Jam - Prom otional Mix Total spending: £350,000 a year Promotions 1%

Direct marketing 15%

Advertising 60%

Sponsorship 24%

2.1a) Calculate how much is spent per year on sponsorship by each of these two brands. ______________________________________________________________________________________ 2.1b) Explain what Bonne Maman might be able to do with its sponsorship spending that Wilkins cannot. ______________________________________________________________________________________ ______________________________________________________________________________________ 2.2 Outline one possible reason why Wilkins chose to spend 75% of its promotional budget on advertising. ______________________________________________________________________________________ ______________________________________________________________________________________ 4. Match the business examples on the left to the promotional methods on the right Business example

ANS

Promotional method

3.1 In September Actimel is planning to run a special offer for two weeks: Buy One Get One Free 3.2 In 2009 Nutella spent £1.7 million on a TV campaign to suggest that the brand is good for kids because it’s full of nuts

a) Sales promotion

3.3 Heineken ran a ‘Who Wants To Be A Football Millionaire’ game during the 2010 World Cup. The game featured on all Heineken cans – to boost sales

b) Sponsorship

3.4 Tesco uses its Clubcard data to email wine-lovers with special offers tailored to their tastes in wine

c) Advertising

3.5 Muller Light spends £5 million on promotion, including a TV advertising campaign, radio, press advertisements and outdoor posters

d) Direct marketing

3.6 The Spanish bank Santander says that its backing of racing driver Lewis Hamilton boosted its UK name awareness from 20% to 82% in 3 years www.a-zbusinesstraining.com