Marketing Promotion and Advertising

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Questions and Answers

What is the primary goal of marketing?

to satisfy needs of consumers or organisations

Why is marketing critical for businesses?

to create awareness about products, attract new customers, and build relationships with consumers

What is promotion in the context of marketing?

any form of communication that informs, convinces, or reminds people about a business's products and improves its public image

What is the promotional mix?

a combination of various elements, including advertising, personal selling, public relations, and more Signup and view all the answers

What is the main difference between advertising and personal selling?

advertising is an impersonal method, while personal selling is face-to-face Signup and view all the answers

What is the primary aim of public relations in marketing?

to enhance the business's image and create goodwill Signup and view all the answers

What is the main objective of the promotional mix?

to achieve maximum sales benefits Signup and view all the answers

Why is it essential for businesses to understand the promotional mix?

to create awareness, attract new customers, and build relationships with consumers Signup and view all the answers

What is the primary goal of merchandising in a business?

to realise objectives of the business Signup and view all the answers

What are the two components of a retail strategy?

Development of a merchandise plan and Implementation of a merchandise plan Signup and view all the answers

What is the first step in the merchandising cycle?

Identifying customer needs and desires Signup and view all the answers

What type of merchandising does a pharmacy typically employ?

Specialised merchandising Signup and view all the answers

What is meant by 'depth' in merchandise range?

Comprehensive selection of brands, sizes, styles, colours and prices within a particular generic class of product. Signup and view all the answers

What is the final step in the merchandising cycle?

Analyzing the sales and adjusting the merchandise plan accordingly Signup and view all the answers

What is the main difference between scrambled merchandising and specialized merchandising?

The range of product lines offered Signup and view all the answers

What is the purpose of merchandising in a pharmacy?

To meet customer needs and respond to marketplace conditions Signup and view all the answers

What type of purchasing decision does On Shelf Merchandising influence?

Impulse purchasing Signup and view all the answers

What is the primary goal of good product presentation in a retail setting?

To make shopping easy and pleasant for the customer Signup and view all the answers

What is the key principle of horizontal product presentation?

Products of the same line are displayed side by side Signup and view all the answers

What is the main advantage of using vertical product presentation?

Maximum use of shelf space Signup and view all the answers

What is the purpose of the 'sight zone' in shelf layout?

To display products at a height that is easy for customers to see Signup and view all the answers

What is the primary consideration when allocating shelf space in a retail setting?

Fast sellers should be given prominent shelf space Signup and view all the answers

What type of merchandise range is characterized by a wide selection of different generic classes of products but with little choice?

Breadth or broad merchandise range Signup and view all the answers

What type of items do customers plan to buy when they visit a pharmacy?

Demand items Signup and view all the answers

What type of items are placed in high visibility areas within a pharmacy to encourage unplanned purchases?

Impulse items Signup and view all the answers

What type of impulse purchasing involves a consumer seeing a product and feeling an emotional need to own it?

Emotional impulse purchasing Signup and view all the answers

What type of impulse purchasing involves a customer seeing a product and remembering that they need or may need it?

Reminder impulse purchasing Signup and view all the answers

What type of impulse purchasing involves product demonstrations that educate customers about the product and how to use it?

Suggestion impulse purchasing Signup and view all the answers

What is the benefit of combining both 'deep' and 'broad' merchandise ranges?

To maximize profitability Signup and view all the answers

What are the four types of impulse purchasing?

Emotional, Reminder, Suggestion, and Planned Signup and view all the answers

What is the primary purpose of arranging products in a hot cross symmetry on wall shelves?

To make products at eye level more visible and attractive to customers Signup and view all the answers

What are the two key factors to consider when deciding which products to display on prime shelf locations?

Turnover and profitability of products Signup and view all the answers

What is the main objective of special displays in retail stores?

To attract attention and move merchandise Signup and view all the answers

What type of merchandise is best suited for special displays during their launch?

New lines or new merchandise Signup and view all the answers

What is the primary reason for promoting top-selling merchandise through special displays?

To promote merchandise that sells even if it has low profit margins Signup and view all the answers

What is the key limitation of special displays in influencing consumer buying attitudes?

They cannot change consumer buying attitudes Signup and view all the answers

What is the primary factor that determines the success or failure of a special display?

The location of the special display Signup and view all the answers

In retail pharmacies, which area is a prime location for special displays?

Areas near the check-out, front of the dispensary counter, and gondola near the dispensary Signup and view all the answers

Study Notes

Introduction to Promotion

Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to satisfy the needs of consumers or organizations.
Promotion is any form of communication that a business uses to inform, convince, or remind people about its products and improve its public image.

Types of Promotion

Advertising: impersonal method of advertising, directly related to the sale of products/services (e.g., TV and radio).
Personal Selling: face-to-face, personal, where the sale is made or lost.
Public Relations: activities that enhance a business's image to create goodwill and influence people's attitudes about the business (e.g., news conference, donation, sports event adverts/support).
Merchandising: the planning and supervision involved in marketing particular merchandise or services at the right places, times, and prices, and in quantities that will best serve the objectives of the business.

Merchandising

Merchandising cycle: plan, order, receive, check, mark, distribute, promote, sell, and analyze.
Merchandising begins with customer analysis: who are our customers, and what are their needs and desires?
Types of merchandising:
- Specialized merchandising: few related product lines (e.g., shoe retailer).
- Scrambled merchandising: wide range of product lines (e.g., supermarket).
Pharmacy employs scrambled merchandising.

Merchandise Range

Depth: comprehensive selection of brands, sizes, styles, colors, and prices within a particular generic class of product (lower stock turns but higher profit margins).
Breadth: wide selection of different generic classes of products, but with little choice (higher stock turns but slimmer profit margins).
To maximize profitability, use a combination of both "deep" and "broad" merchandise ranges.

Impulse and Demand Items

Demand items: plans to buy certain items, visits pharmacy to buy them.
Impulse items: items that make customers recall a need for, resulting in an unplanned purchase.
Impulse purchasing types:
- Emotional
- Reminder
- Suggestion
- Planned

On-Shelf Merchandising

Impulse sales depend on display and visibility for movement.
Good product presentation: arrangement and display of goods that allow customers to easily see, reach, identify, handle, and see the price of products.
Shelf layout techniques:
- Horizontal presentation
- Vertical presentation
- Hot cross

Special Displays

Definition: displays built in prominent locations in store to attract attention and move merchandise.
Achieves:
- Increase in sales
- Adds visual excitement
- Shapes store image
- Acts as shopping aids to customers
Good categories of merchandise for special displays:
- New lines/new merchandise
- Top lines (best sellers or demand lines)
- Special events and promotions
- In-Season merchandise

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Description

This quiz covers the basics of promotion, including promotional strategy, selecting promotional mix, budgeting, and advertising. It also reviews the marketing process and its components.