9.2. How to Reach a Target Audience

Marketing communications methods

Marketing communication involves providing information, through a variety of media, about a product to target audiences of consumers, and attempting to influence their buying decisions by stressing certain features of the product. ‘Influence’ may become ‘persuasion’ when firms attempt to stress product features which may be more imaginary than real. The key methods of marketing communication which is also called promotional mix are: advertising, sales promotions, direct marketing, Public Relations (PR), and publicity.

Advertising

Newspapers and magazines. There are hundreds of different newspapers and magazines ranging from national daily newspapers to free local newspapers and specialist magazines of limited circulation. Advertising is an important source of revenue for these publications.

Television. Television is an ideal means of advertising to reach mass markets, offering the benefits of movement and sound to promote products and services. Advertisements can be broadcast to reach the whole population, or targeted at particular TV regions. Due to increasing sales of satellite and cable systems, there are now an increasing number of commercial TV stations everywhere. Because their market is still relatively small, the cost of advertising on these channels tends to be much lower than on regular TV channels.

Radio. Radio listening has also increased in recent years. There has been a significant growth in the number of local commercial radio stations, whose main source of funding is revenue from adverts. Local radio provides a relatively cheap and effective means of advertising for many medium-sized and even smaller firms.

Posters. Large posters placed in highly visible sites can be a relatively cheap and effective means of grabbing peoples' attention. Smaller posters placed on the side of buses and taxis, on railway stations, and in airports can be seen by large numbers of people. Sports venues are also popular sites to place posters on hoarding Adverts for products can also be placed on the packages of other products – for example, on matchboxes, carrier bags, and T-shirts – and even on hot-air balloons.

Sales promotion

Whilst advertising may bring the customer into a shop, in-store promotions or merchandising are usually required in order to encourage customers to make the purchase at the point of sale. Such promotions may take the form of the use of display material, attractive stands, posters, free samples, and attractive and friendly sales representatives.

In shops, careful thought is also given to design and layout. Sometimes exits are intentionally hard to find, to encourage customers to browse a little longer. Sweets are strategically placed at checkouts to encourage children to pressurise their parents into buying them whilst queuing.

Other sales promotion methods:

Competitions: firms will often run competitions, details of which are displayed on product packaging. To ensure repeat sales, the competition entrant will often be required to collect coupons as proof of purchase.

Free mail-ins: firms may provide free gifts to consumers who collect coupons from product packaging.

Money-off coupons: in magazines, on product packaging, or delivered by direct mail, to encourage sales of a particular product.

Loyalty incentives: consumers may be encouraged to remain loyal to a particular product if they are provided with an incentive. This may involve accumulating points which can be used to gain money off future purchases or exchanged for a specific product. For example, petrol station chains such as Shell and Esso give coupons to their customers which can be exchanged for 'gifts'.

Sales staff incentives: firms may offer performance-related pay and gifts to encourage staff to make more sales. For example, staff can earn commission based on a percentage of the sales revenues they generate.

Direct marketing

Direct marketing allows manufacturers to deal directly with consumers without the need for retail outlets or wholesalers. Direct marketing is the fastest-growing method of selling products.

Mailshots are increasingly popular with some manufacturers and can be sent to the homes of thousands of potential consumers. The mailshot contains product details and an order form. Mailshots are usually personalised using modern computer technology, with each letter showing the individual customer’s name and address. However, much mailshot marketing is viewed by consumers as ‘junk mail’ and ends up in the bin.

Mail order advertisements. Many firms specialise in selling direct to the consumer through advertisements placed in newspapers, specialist magazines, and other publications. Customers may order products such as computers, cameras, and much more by simply telephoning the firm and quoting a credit card number.

Telesales. Some businesses employ sales staff to telephone potential customers in order to sell them goods and services. This method gives the advantage of allowing the firm to tailor their selling effort to suit the customer. However, many customers do not like being telephoned at home by sales people, and the success rate for such calls is not high.

Home shopping. The development of communications technology such as satellite and cable television has enabled producers to get closer to their target audiences. Home shopping channels and programs provide 24-hour advertising and product reports enticing viewers to buy direct from the screen.

Public Relations (PR) and Publicity

Public Relations involves actions undertaken by a business in the hope of obtaining favourable, and often free, publicity. This is especially important to a firm trying to develop a corporate image or fending off bad publicity.

Types of Public Relations activity can include:

Press releases: published statements issued to the media, often offering stories and facts that can be treated as news items.

Sponsorship: funding of sporting, cultural, or social events in return for the display of the sponsor company's name and logo. Sponsors may also have an exclusive right to sell their products at the event.

Lobbying: attempts by business or non-profitmaking organisations to influence or persuade decision-makers or those in positions of power. For example, pressure groups like Greenpeace and Friends of the Earth will often lobby Members of Parliament and businesses in an attempt to force changes in the laws governing the treatment of animals and the natural environment.

Community relations: creation of links between businesses and local community groups, with firms contributing professional expertise to voluntary organisations, providing jobs and training to disadvantaged groups, and sharing advice and resources with smaller local companies. The benefits include an improved image for the business, and therefore a greater willingness on behalf of consumers to accept its products and brands.

There are a variety of ways a firm can publicise its organisation and products:

Sales literature – handouts, leaflet drops, promotional booklets

Signs – on buildings or in windows; for example, pub signs

Vehicle livery – vans and lorries painted in colours and logos associated with a business organisation

Stationery – letterheads and logos on paper and documents

Point-of-sale – promotional stands, posters, leaflets at checkouts and shop counters

Product placement – display of products on the sets of major TV and film productions, free gifts, and product endorsements from well-known TV and sports personalities who are paid to wear or use particular products.