1.3.4 Promotional mix

Question 1

Promotional mix

Answer 1

The promotional mix is the combination of different promotional methods that a business uses

Question 2

Factors influencing the promotional mix

Answer 2

• target market
• competitor actions
• the nature of the product or service
• the nature of the market
• finance available

Question 3

Factors influencing the promotional mix - target market

Answer 3

• A business’ target market for a product (or service) will affect the promotional method that they use because different types of people use different platforms more often.
• A business wants to promote its product to its potential customers.

Question 4

Factors influencing the promotional mix - competitor actions

Answer 4

The promotional mix of competitors might influence a business because they may want to reach consumers using the same channel as rivals.

Question 5

Factors influencing the promotional mix - the nature of the product or service

Answer 5

• The type of product (or service) will influence which promotional method needs to be used.
• A technical product like a laptop may want to give consumers more information about their product, whilst a simple product like orange juice (Tropicana juice for example) may not need to give info.
• A fashion label like Hugo Boss does not have much information to communicate. How their products look is more important.

Question 6

Factors influencing the promotional mix - the nature of the market

Answer 6

• As a market matures, the rate of growth changes.
• If a market is growing slowly, advertising may be less important.
• If a market is growing fast, then businesses will be battling for market share and are willing to spend more on advertising as it will affect sales by a larger amount

Question 7

Factors influencing the promotional mix - Finance available

Answer 7

• Some businesses will have much more finance (money) available to spend on promotions.
• Some promotional methods (e.g. TV advertising) are more expensive than others.
• Smaller businesses with less finance are less likely to be able to afford TV advertising.

Question 8

Reasons for promotion

Answer 8

To create or increase sales
To create or change the image of a product or service
To inform/remind customers about the product
To persuade customers to buy the product

Question 9

Reasons for promotion

-To create or increase sales

Answer 9

• Informing consumers that are not aware of a business’ products can ‘create’ new sales.
• By constantly reminding existing customers about a product (or service) and its benefits, businesses can increase the sales from each customer.

Question 10

Reasons for promotion

-To create or change the image of a product or service

Answer 10

• A promotion can have a large impact on how customers see a product.
• If a celebrity uses the product, a business can give the product a fun, luxury or innovative image
• A promotion can help to change customers’ perception of a product.

Question 11

Reasons for promotion

-To inform/remind customers about the product

Answer 11

• A business cannot sell a product (or service) if no consumers know about it.
• Businesses must be able to inform their target market about their product (or service) and remind people, at the right time, in the hope that they will buy it.
• Reminding customers at the right time is key

Question 12

Reasons for promotion

-To persuade customers to buy the product

Answer 12

• Promotions are often used to advertise the benefits of using a product and to explain why you should buy it.
• These are attempts to persuade the customer that this is the best product for them.