Marketing: Promotion Strategies

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Questions and Answers

In the context of the marketing mix, what is the primary role of promotion?

To inform and persuade customers and potential customers to buy a business's products.

Explain how 'below-the-line promotion' differs from advertising.

Below-the-line promotion isn't paid for communication but utilizes incentives to encourage consumer purchases, whereas advertising is paid communication through various media.

A business is deciding its advertising budget. What are three factors they should consider?

Percentage of predicted sales revenue, how much competitors are spending, and how much the business can afford.

Give an example of informative advertising and persuasive advertising.

Informative advertising gives as much information about the product as possible (e.g. computer). Persuasive advertising persuade consumers that they need the product and should buy it (e.g. perfume). Signup and view all the answers

What are some advantages and disadvantages of using television as an advertising medium?

Advantages: Millions of people will see it, products can be presented attractively, easy to reach target audiences. Disadvantages: Expensive. Signup and view all the answers

Give some examples of when sales promotion might be used by a business?

Ways in which sales promotion is used are price reductions, gifts, competitions and free samples. Signup and view all the answers

For products that are bought on a daily basis, how effective is the AIDA model?

The AIDA model is less effective on products that are bought on a daily basis because people will know how good the quality really is. Signup and view all the answers

What are the advantages to marketers of using magazines as an advertising source?

Magazines allow marketers to reach specific audiences and ads can be printed in colour. Signup and view all the answers

What is the main goal of sales promotion?

To boost sales in the short-term, attract new customers so that they can try out items. Signup and view all the answers

What are some of the factors a business needs to consider as part of international marketing regarding cultural issues?

Businesses needs to consider whether their type of advertising might offend the local people. They should also take into account things such as how many people own TV, literacy level, etc... Signup and view all the answers

What is likely to be the most important factor when determining if personal selling should be used?

Sales representatives will communicate directly with consumer to achieve a sale and form a long-term relationship. Signup and view all the answers

What must businesses do to raise the value of their products in today's international business environment?

businesses need to raise the value of their products with customer service. Signup and view all the answers

What are some of the features of good customer service?

Giving advice about the product, delivering goods for customers, providing credit facilities and product information. Signup and view all the answers

For what types of products is negotiation about price or product features most likely to be needed?

This is common for businesses that sell to other businesses (e.g. discounts on bulk buying). Signup and view all the answers

What does 'evaluate the effectiveness of the campaign' mean and why is it important?

Has the advertising met objectives? It ensures the company knows it's investment is worth the return. Signup and view all the answers

What are some examples of how a business can improve its public relations?

Methods include sponsoring events such as football matches, giving products to charity and having employees take part in an activity for a good cause. Signup and view all the answers

What is one disadvantage of using the internet as a method of advertising?

Internet searches may not highlight the website and it could be missed. Signup and view all the answers

Why is personal selling more effective in a business that sells cars?

The nature of the product varies by price, quality and customer requirements vary. Signup and view all the answers

What is the purpose of creating an appropriate advertising campaign?

Decide on what advertising campaign to run. Can be determined based on the target audience and objectives. Signup and view all the answers

Explain why sales promotion is more effective in boosting sales during the off-season?

Sales promotion can boost sales during the year when sales are traditionally low (encourage off-season purchases). Signup and view all the answers

Flashcards

Promotion

Marketing activities used to communicate with customers and potential customers and persuade them to buy.

Advertising

Paid-for communication using media (TV, radio, print, online) to create product awareness and persuade consumers.

Sales Promotion

Techniques like 'buy one get one free', price reductions, free services, gifts, and displays to encourage sales.

Below-the-line Promotion

Promotion using incentives (money-off coupons, loyalty schemes) without paid communication to encourage consumers.