113 promotion

Question 1

what is promotion

Answer 1

promotion is the attempt , though various forms of media, to draw attention to a product and thereby gain and retain customers

Question 2

what does promotion aim to do

Answer 2

-inform customers about the product
-increase sales and market share
-establish brand identity

Question 3

what is above the line promotion

Answer 3

• (generally called advertising) - used to reach a mass audience ,through various independent, media which is indirect and allows a business to reach a wide/large audience eg.tv, magazines, radio

Question 4

what is below the line promotion

Answer 4

it offers a wide range of alternative promotional strategies and these are often used to support above-the-line promotion, targets consumers directly eg.personal selling, packaging , direct mailing

Question 5

what influences the promotional strategy

Answer 5

stage in the product life cycle -introduction/growth stage- more informative approach (raise customer awareness) -maturity/saturation-more persuasive approach(reinforce customer loyalty)
marketing budget available -small businesses , limited promotion choices
target market - the people who make up the market need to be coincided when choosing promotional strategy

Question 6

above the line promotion model answer

Answer 6

P: to some extent yes because below the line promotion can lead to increased brand loyalty and reputation
E: this is because when they use personal selling they get to meet the needs of their customers directly , satisfying them , so they would buy the product again . this may allow a business to increase their selling price as customers become more satisfied , leading to more profit .
H: it depends on the elasticity of demand . If the product is promoted very well , elastic customers might choose cheaper alternatives.
L: therefore effective promotion will only lead to increased profit , only if correct pricing statergy is used