1.52 Promotion Flashcards
What is personal selling
A sales person is employed by a company to sell a product or service on behalf of the company.
What is the advantages of personal selling
-Sales person is well trained in the approaches and techniques of personal selling
-sales person can develop very good personal relationships with cutomers
What are the disadvantages of personal selling
-very expensive and should only be used when there is a genuine return on investment, eg salesmen are often used to sell where the profit margin is high
What is sales promotion
The ways in which businesses attempt to persuade consumers to purchase their goods or services through various incentives
What are the advantages and disadvantages of sales promotion
Advantages
-quickly recognised and accepted in the market place
Disadvantages
-each sales promotion should be carefully priced and compared with the next best alternative. Failure to do so could result in massive market competition.
What is public relations
The way a company promotes its image to particular groups, eg employees shareholders, customers or the general public, eg through sports sponsorships
-rugby- ireland- O2
What are the advantages of PR
-relatively cheap
-depending on the media outlet, a story mentioning a company may be picked up by other media outlets, thus spreading a single story worldwide and as a result, promotion for the business
-successful strategies tend to be long term and plan for all eventualities
What are the disadvantages of PR
companies do not have direct control over what message is delivered and where it is placed for delivery
-a lot of customer disappointment if there is a failure in the product or service
What is a trade fair and exhibition
A trade show is an event that is organised for businesses in a specific industry so that they can exhibit and demonstrate their products and services to potential customers
purpose
-increase sales, awareness and develop contacts and provide networking opportunities
What are the advantages of trade fairs
-very good for making new contacts and renewing old ones
-access to a large number of potential buyers at one time and in one place
-instant feedback on products and pricing
-learn about markets, products, trends and product competition
-identify new market opportunities
What are the disadvantages of trade fairs
-expensive
-time consuming
-very competitive
-may not be cost effective
-takes time to become established at a show
-no instant results or guarantees
What is advertising
The process of communicating information about a product or service to as many potential customers in the specific target market as possible
-main aim- secure sales
What are the advantages of advertising
-a huge number of people can be reached in a geographical area
-the advert can be as large as required to communicate as much of the product as possible
-quick turn around
-reach intended target market
What are the disadvantages of trade fairs
-can be expensive
-a lot of competition from other advertisers
-not cost effective for smaller businesses
-the market that views the advert may not be the target market that buys the product
What is promotion
The aim of promotion is to raise the consumers awareness of the price and quality of a product or service
What is publicity
Any unpaid, non personal communication about a product brand or idea.
What are the disadvantages of publicity
-Loss of credibility-if the reasons behind the publicity are bad, it can demolish that trust and credibility gained by the firm over the years.
-effect on sales and revenue- bad publicity hits a company’s sales hard. Always affects a company’s performance
