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The importance of promotion

communication with customers or how to send the product image and the brand message to them is essential in any company who seeks to make profit. Argos splitted their customers into two groups who get it and who don't get it.(the times 100).which means customers who knows what is the product about and help others customers who don't know about the product. Implementing a promotion strategy with different promotional mix tools such as advertising, sales promotion , public relations(publicity) , personal selling and direct marketing is a key

success if the company wants to enter competition with other competitors.

 

·Advertising:-

 

A very important tool in the promotional mix because it has a great impact on the audience where anyone who watch television , read newspapers , listen to radio are exposed to the advertising media which helps repeating the brand commercials in the media tools I have mentioned before.

(kotler 2003). mentioned that advertising is any paid form of non personal presentation and promotion of ideas , goods , or services by an identified sponser.In addition it will increase brand awareness which will lead to easy communication with the targeted audience.

 

 advertising strategy:-

 

Argos in the past didn’t spend much on its advertising campaign but in contrast they did concentrate on spending specific category which is toys to compete with toys 'r 'us and other leading companies in this category. The table below shows that argos improved their spending on advertising but on toys category which shows there is an awarness from the company that posititioning the brand in customer minds need a lot of media tools whereby preparing a huge budget for media advertising that they lacked before compared to tesco , sainsbury's , marks & spencer retail companies.

Argos is covincing customers that their life style will change if they purchase for example a

living room which can be a place they like to stay in it.(scribd 2010).

Television , online , press and radio are also basic advertising tools for argos that they use to sent

customers mixed brand messages .

 

 

Advertiser

2004

2005

2006

2007

Share of voice 2007 %

 

£000

£000

£000

£000

 

 

 

 

 

 

 

Toys ‘R’ Us

4,114

4,214

4,004

3,869

34

Argos

705

469

1,892

3,136

28

Woolworths

920

1,689

991

708

6

Asda

56

274

920

1,734

15

Early Learning Centre

251

381

191

638

6

Tesco

0

0

253

441

4

Smyths

60

50

99

132

1

Toymaster

134

35

45

7

0

Hamleys

16

0

148

105

1

Gamleys

63

44

59

40

0

Grainger Games

48

38

20

49

0

WH Smith

39

0

25

95

1

Mintel 2008

 

 

 

 

Argos marketing plan was based on psychographic needs to attract customers to the product

which are :_ pleasure seekers: customers that wants entertainment(movies , tv soaps , home theatre)  functionality seekers : customers who just want to watch tv +  image seekers :customers who want it as art /fashion statement.(scribd 2010).

(kotler 2003) stated that marketing managers must recognize the customers requirements and select a marketing target to develop a strategic promotion program.

 

 

 

 

Advertising objective plan :-

 

Argos  concentrate on seasonal purchases such as christmas and new year events ,

by making special offers on their products and prices. Moreover  positioning in customer minds

that they care about their wants and needs.(scribd 2010). Increasing sales and profit are the main

targets of any company and argos wants to create brand awareness of their products to acheive

maximum level of sales growth and market share.

 

 

 

 

 

 

 

 

 

 

Example:-

 

Argos try to achieve 25% increase in sales of digital television each month to increase its market

share.

 

 

 

 

There are a big competition in the market and argos must keep on providing customers a wide range of 

Products with good prices to maintain its position in the competition and capitalise its success.

 

·Sales promotion:-

 

Argos are using tools such as coupons , vouchers , prizes contests , and money cut off.

(kotler 2003). mentioned that to have a strong and fast reaction from customers , a company

must use the sales promotional tools.

Argos company created vouchers to help customers save money which are discount codes ,

free gifts voucher and free delivery voucher codes.( argos 2010).Customers can use multiple

voucher codes on each home delivery which is a good way to encourage customers for ordering

and receiving the products at home .In addition it will help argos maintain its price flexibility

compared to other competitors throughout all the year.  On the other hand customers are

complaining that the voucher is used only for one time , so according to; it is a disadvantage.

 

 

 

 

 

 

 

 

 

·Public relations & Publicity:-

 

Argos have a press office for public relations in london. (the hand book).Besides that the

they appointed iris company to handle their public relations strategy which is a good move

by argos to maintain its good reputation and promote the company message to customers all

around the world(utalkmarketing). Promotional tools working with public relation programs can produce great results and effectivness.(kotler 2003).

 

 

 

·Personal selling:-

 

Argos company don’t rely on salesman to sell its products , they only do that by online catalogues And to be dependant only on catalogues is negative , because any big companies like argos needs Salesman to represent the company to communicate directly with customers to help them answering any questions about the products or offers and most importantly listen to their concerns about anything related to the company. This creates a strong beleif in customer minds

That the company cares about their wants and needs.

 

 

 

 

 

·Direct marketing:-

 

Argos have an online catalogue on their website with wide range of products in different categories which make it easier for customers to choose and order ; Moreover they spend on website upgrading , printed brochure , and cd-rom to keep in touch with customers and update informations about products.(scribd 2010).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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