Promotion and Marketing Flashcards

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Questions and Answers

Distinguish between promotion and the promotional mix.

Telling a customer about the company ideas, and persuading them to buy something.

Explain the four main elements of the promotional mix.

Public relations, advertising, sales promotion, personal selling.

What are the advantages and disadvantages of advertising?

Advantages include expansion of production and increased sales. Disadvantages include the need to spend money to make money.

In what situations does advertising typically work best?

Delivering a short simple message. Signup and view all the answers

What are the advantages and disadvantages of personal selling?

Advantages include high cost but increased cost per sale. Signup and view all the answers

What are the advantages and disadvantages of publicity?

Timing is a negative, credibility is a positive. Signup and view all the answers

What are the advantages and disadvantages of sales promotion?

Limits revenue, but allows for cross selling. Signup and view all the answers

What is sponsorship?

A cash or in-kind fee paid to a property in return for access to the exploitable commercial potential associated with that property. Signup and view all the answers

What is guerrilla marketing?

Unconventional, innovative, and low-cost marketing techniques designed to get consumers' attention in unusual ways. Signup and view all the answers

Why is the promotional mix important?

If you don't know what it is, the company will most likely not do well. Signup and view all the answers

Explain two product considerations that can affect the choice of a promotional mix.

Customer availability, popular products. Signup and view all the answers

How do customers affect a business's promotional mix?

What products make more sales, and the timing of things. Signup and view all the answers

Explain how channels of distribution can affect the promotional mix.

Timing is the main one, because if the distribution company doesn't go well, there won't be as many sales. Signup and view all the answers

Describe three company considerations that affect the mix of promotional elements.

Nature of market, type of market, budget availability. Signup and view all the answers

Study Notes

Promotion vs. Promotional Mix

Promotion involves informing and persuading customers about a company’s offerings.
The promotional mix combines various techniques to communicate and persuade, including public relations, advertising, sales promotions, and personal selling.

Elements of the Promotional Mix

Public Relations: Builds a positive image and fosters good relationships with the public.
Advertising: Paid communication through various media to promote products or services.
Sales Promotion: Short-term incentives to encourage purchases or boost sales.
Personal Selling: Direct interaction between a sales representative and a potential customer.

Advantages and Disadvantages of Advertising

Advantages: Expands production capabilities and increases sales potential.
Disadvantages: Requires significant investment, implying a need for careful budgeting.

Situations Favoring Advertising

Works best when conveying a straightforward, simple message that is easily digestible by consumers.

Personal Selling Pros and Cons

Advantages: Provides personalized communication and can lead to higher conversion rates.
Disadvantages: Generally high costs associated, but can result in increased revenue per sale.

Publicity Advantages and Disadvantages

Positive aspect: High credibility and trust from consumers.
Negative aspect: Can suffer from poor timing, leading to missed opportunities.

Sales Promotion Attributes

Disadvantage: Can limit long-term revenue if used excessively.
Advantage: Encourages cross-selling opportunities and boosts immediate sales.

Understanding Sponsorship

Involves financial or in-kind support paid to a property (event, organization) in exchange for access to its commercial potential.

Guerrilla Marketing Definition

Employs unconventional and innovative tactics to capture consumer attention in unexpected and cost-effective ways.

Importance of the Promotional Mix

Essential for business success; lack of understanding can lead to ineffective marketing strategies and poor performance.

Product Considerations Affecting Promotional Mix

Customer availability influences what promotional strategies are effective.
Popular products require different marketing approaches to maximize impact.

Impact of Customers on Promotional Mix

Consumer preferences dictate which products will yield higher sales.
Timing is crucial; understanding when to promote can enhance effectiveness.

Channels of Distribution Influence

Distribution efficiency affects sales volumes; poor distribution can hinder promotional effectiveness.

Company Considerations in Promotional Strategy

The nature and type of market dictate specific promotional needs.
Availability of budget plays a significant role in determining which strategies can be pursued.

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Description

This quiz explores key concepts in promotion and the promotional mix. You'll learn the differences between promotion and advertising, as well as the four main elements that make up the promotional mix. Test your understanding with definitions and advantages of advertising.