Marketing Strategies: Coupons, Samples, Events

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Questions and Answers

What is a primary advantage of using coupons for businesses?

They help customers feel they are getting better value for money. (correct)

They make products more expensive.

They eliminate the need for inventory management.

They guarantee increased customer loyalty immediately.

Which of the following is a disadvantage associated with using coupons?

Customers may wait for coupons before making a purchase. (correct)

They can increase the visibility of a product.

They enhance word-of-mouth promotion.

They guarantee an immediate increase in sales.

What is one of the main purposes of using samples or giveaways?

To encourage customers to try a product for the first time. (correct)

To reduce operational costs.

To increase the price of products.

To eliminate customer feedback.

What is a potential issue that can arise when conducting a giveaway?

It can be expensive due to the cost of distributing products. Signup and view all the answers

Which type of marketing strategy uses events to engage consumers?

Special events. Signup and view all the answers

What is a less desirable customer behavior that can result from coupon promotions?

Customers may delay purchases until they have a coupon. Signup and view all the answers

Which product category often benefits significantly from giveaways?

Perishable food items. Signup and view all the answers

What is a significant complication that can arise when sending samples or giveaways?

They may need a comprehensive customer database. Signup and view all the answers

Which marketing strategy focuses on enhancing the public image and relationship between a company and its audience?

Public Relations (PR) Signup and view all the answers

What is a key benefit of having a strong brand in the marketplace?

Increased consumer recognition Signup and view all the answers

Which element of the marketing mix is concerned with how a product is delivered to consumers?

Distribution channel (place) Signup and view all the answers

Which marketing strategy involves directly engaging with a consumer through personalized messaging or targeting specific groups?

Below-the-line marketing Signup and view all the answers

What type of marketing effort involves providing financial support to an event or organization for the purpose of gaining visibility?

Sponsorship Signup and view all the answers

What is viral marketing primarily designed to do?

Encourage rapid message dissemination Signup and view all the answers

What is a significant advantage of corporate branding?

It spreads the cost of marketing across multiple brands Signup and view all the answers

Which of the following is NOT a disadvantage of viral marketing?

It requires significant initial investment Signup and view all the answers

What role does a logo play in branding?

It creates a first impression for customers Signup and view all the answers

Why might a business utilize a slogan?

To promote identity and engage customers Signup and view all the answers

Which statement best describes a brand?

A characteristic name or symbol that differentiates products Signup and view all the answers

What is considered a drawback of corporate branding?

It can take a long time to build a solid brand image Signup and view all the answers

What impact does a positive response to customer complaints have on a business?

It can enhance marketing and reputation Signup and view all the answers

What is one advantage of online adverts?

They can deliver accurate data about effectiveness. Signup and view all the answers

Which of the following is a disadvantage of mobile communications for marketing?

The messages may be distorted on small screens. Signup and view all the answers

What is a primary feature of advergaming?

It involves video games that advertise products. Signup and view all the answers

What is a key disadvantage of social media advertising?

It often requires regular updates to maintain effectiveness. Signup and view all the answers

What does consumer-generated content include?

Content like blogs and videos created by users. Signup and view all the answers

A disadvantage of online adverts is that they may:

Be easily ignored by customers. Signup and view all the answers

One advantage of mobile marketing is:

Users can shop without waiting for a laptop to load. Signup and view all the answers

What is the meaning of PED in the context of brands?

Price Elasticity of Demand Signup and view all the answers

Which statement best describes a potential disadvantage of advergaming?

Users may be too young to comprehend brand messages. Signup and view all the answers

What is a key outcome of consumer-generated content?

Enhanced methods of public complaints. Signup and view all the answers

Which of the following terms describes a brand that has become synonymous with a product category?

Brandnomer Signup and view all the answers

One significant benefit of social media marketing is:

It allows for quick customer service responses. Signup and view all the answers

What does a unique selling point (USP) help a brand achieve?

Competitive differentiation Signup and view all the answers

Which of the following examples is NOT a brandnomer?

Smartphone Signup and view all the answers

What effect does an increase in price typically have on products with elastic demand?

Demand decreases Signup and view all the answers

How can a business effectively build brand awareness?

By using mixed media advertising Signup and view all the answers

Which of the following brands exemplifies a clear USP in their service offering?

Amigo Loans Signup and view all the answers

What do consumers often associate with brandnomers?

Consistent quality Signup and view all the answers

What happens to demand for a product if demand is inelastic and prices are raised?

Demand remains the same Signup and view all the answers

Which term describes the relationship between a customer and an advertiser in terms of brand loyalty?

Brand awareness Signup and view all the answers

Study Notes

Money off coupons

Coupons can be used to attract new customers and increase repeat purchases.
Coupons can be found online, on loyalty cards, in store magazines, and on product packaging.
Coupons can lead to reduced profits due to the cost of the promotion.
Some customers may wait for coupons before making a purchase.
Customers may have already intended to buy the product regardless of the coupon.

Samples / Giveaways

Free samples can encourage customers to try a new product.
Samples and giveaways often appear in magazines and online.
Samples and giveaways are ideal for new product launches, particularly for products like shampoo and food.
Samples can encourage word-of-mouth promotion.
Sending out samples can be complicated and requires a database of customers.
Giveaways can be expensive.

Special Events

Special events can encourage customers to try products.
Special events can include shows, fetes, fairs, or events at the business itself.

#1 Online Adverts

Online adverts include banner ads, classified adverts, pop-up adverts, paid-for search listings, and paid-for listings on price comparison sites.
Online advert management tools provide data on advertising effectiveness.
Online adverts can reach a large market of customers.
Customers may ignore online adverts.
Adverts can get lost amongst other content and ads.
Click-through adverts can be expensive.

#2 Mobile Communications

Mobile communications include smartphones, tablets, and other devices used on the go.
Mobile adverts can appear as text messages or in apps.
Mobile marketing can extend online reach and allow customers to interact with brands on the move.
Mobile marketing can be limited by the small screen size, which can distort the message.
Conducting transactions on mobile devices can raise security concerns.
Websites need to be adapted for mobile devices, which can be expensive.

#3 “Advergaming”

Advergames are video games that contain an advert for a product, service, or business.
Advergames can be embedded in corporate websites.
Customers are more likely to focus on the brand message while playing a game.
Advergames can reach large audiences through multiplayer games.
Consumers may expect to encounter adverts in games.
Advergames can fail if the game and brand do not align.
Advergames may be played by consumers too young to make purchase decisions.

Social media advertising is often free or low-cost.
All brands should have a web presence, which can be achieved through social media marketing.
Social media marketing is also known as digital marketing.
Social media can keep customers informed about new products.
Social media increases customer engagement with brands.
Social media can provide quick customer service responses.
Social media platforms like blogs, Twitter, and Facebook require regular updates, which can necessitate hiring staff.

#5 Consumer Generated Content

Consumer generated content includes videos, blogs, discussion forum posts, digital images, audio files, and other media created by consumers.
Consumers can read reviews on consumer generated content platforms like Trip Advisor before making a purchase.
Positive responses to complaints on consumer generated content platforms can be valuable for marketing and brand reputation.
Consumers can publicly complain about products and services on consumer generated content platforms.
Managing online reputation can be expensive.

#6 Viral Strategies

Viral marketing encourages customers to share marketing messages with others.
Viral marketing can lead to exponential growth in message exposure and influence.
Consumers spreading the message themselves reduces marketing costs and increases brand authenticity.
Viral strategies can be complex and may lead to the original message being lost.
It can be difficult to obtain funding for viral marketing campaigns.

Types of Branding

A brand is a distinctive name or symbol that differentiates a product from its competitors.

Brands introduction

The logo is the first impression of a business and is crucial for forming early perceptions.
Effective logos are simple, attractive, and memorable.

Manufacturer / Corporate branding

Corporate branding aims to build communication and relationships between the main business name and customers.
Companies may own a range of brands under a corporate umbrella.
A company may use a slogan to reinforce its brand identity.
Corporate branding spreads the cost of marketing across all individual brands.
Corporate branding can create worldwide awareness.
Corporate branding can take a long time to build.
Negative incidents can damage a brand’s reputation.
Strong brands can command premium prices.

Reduced PED

PED stands for price elasticity of demand.
PED measures how demand responds to changes in price.
High PED indicates that demand is sensitive to price changes.
Low PED indicates that demand is less sensitive to price changes.
Price elasticity of demand can influence pricing strategies.

Ways to build a brand

A Unique Selling Point (USP) is a feature that distinguishes a product or business from competitors.
USPs can be used to build a brand.
Advertising helps build brand awareness and customer loyalty.
A mixed media approach to advertising can be effective.

Sample Edexcel A2 Questions

The case study is designed to provide context for an evaluation question.

Sample Question 1

The question requires evaluating two options.
The question assesses the ability of the student to apply their knowledge to a specific context.

Business terminology to use in your answer

Differentiation
Consumer recognition
Barriers to entry
Price elasticity of demand
Strong brand
Marketing mix
Distribution channel (place)

Answer sample question 1

The answer should provide a detailed evaluation of the two options and demonstrate an understanding of the relevant business concepts.
The answer should be structured logically and supported with evidence and justification.

Peer / self marking grid for 20 mark question

The marking grid provides guidance for assessing the quality of answers to the evaluation question.
Answers are assessed based on knowledge, application, analysis, and evaluation.
Marks are awarded for demonstrating a deep understanding of business theory, applying concepts to the case context, providing logical chains of reasoning, and presenting a balanced and developed argument.

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Description

Explore various marketing strategies, including the use of coupons, samples, and special events to attract and retain customers. Understand the benefits and challenges associated with each strategy to enhance your marketing efforts. This quiz covers the effectiveness of promotions in driving sales and consumer engagement.