17. Marketing mix - promotion

Question 1

Define promotion

Answer 1

Promotions refer to the entire set of activities, which communicate the product, brand or service to the user. The idea is to make people aware, attract and induce to buy the product, in preference over others.

Question 2

What are the promotional objectives?

Answer 2

• To increase sales by raising consumer awareness of a product
• To remind consumers of an existing product and its distinctive qualities
• To create and reinforce brand image
• To correct misleading reports about the product

Question 3

Define promotion mix

Answer 3

The combination of promotional techniques that a firm uses to sell a product

Question 4

Define advertising

Answer 4

Paid-for communication with consumers to inform and persuade

Question 5

What are the 2 types of advertising?

Answer 5

• Informative advertising

- Persuasive advertising - focuses more on brand identity

Question 6

Define above the line promotion

Answer 6

Above-the-line promotions use mass media methods. This type of promotion focuses on advertising to a large audience. It includes print, online media, television and cinema advertising

Question 7

Define below the line promotion

Answer 7

Below-the-line promotions are very specific, memorable activities focused on targeted groups of consumers. e.g. sponsorship, sales promotions, public relations, personal selling, direct marketing

Question 8

How to determine which media to use?

Answer 8

• Cost
• Size of audience
• The profile of the target audience in terms of age, income levels, interests
• The message to be communicated
• The other aspects of the marketing mix
• The law and other constraints

Question 9

Define sales promotion

Answer 9

Incentives such as special offers or special deals directed at consumers or retailers to achieve short-term sales increases and repeat purchases by consumers

Question 10

What are the methods of sales promotion?

Answer 10

• Price promotion - temporary reductions in price
• Money-off-coupons
• Customer loyalty schemes - loyalty cards/ membership cards

Question 11

Define personal selling

Answer 11

A member of the sales staff communicates with one consumer with the aim of selling the product and establishing a long term relationship between company and consumer

Question 12

Define sponsorship

Answer 12

Payment by a company to the organisers of an event so that the company name becomes associated with the event

Question 13

Define public relations

Answer 13

The deliberate use of free publicity provided by newspapers, TV, and other media to communicate with and achieve understanding by the public

Question 14

Define branding

Answer 14

The strategy of differentiating products from those of competitors by creating an identifiable image and clear expectations about a product. It is a product of promotion

Question 15

Beneficial effects of branding

Answer 15

• Increase the chances of brand recall by consumers
• Clearly differentiate the product from others
• Reduce price elasticity of demand as consumers have been shown to have preferences for well known brands
• Increase consumer loyalty to brands, which is a major marketing benefit

Question 16

Functions of packaging

Answer 16

• Protect and contain the product
• Give information to consumers
• Support the image of the product
• Aid the recognition of the product

Question 17

Define internet marketing

Answer 17

The marketing of products over the internet

Question 18

Define viral marketing

Answer 18

The use of social networking sites or SMS to increase brand awareness

Question 19

Benefits of internet marketing

Answer 19

• Relatively inexpensive
• Companies can reach a worldwide audience for a small proportion of tradition promotion budgets
• Internet is convenient for consumers. Don’t have to be near the provider
• Dynamic pricing - charging different prices to different consumers is easier
• Selling products on the internet involves lower fixed costs than traditional retail stores

Question 20

Drawbacks of internet marketing

Answer 20

• The cost and time taken to create a quality website.
• Payment over the internet requires to provide details of their bank account - making sure there are no hackers to keep the trust of the customers.
• Important of relationship because there is not face-toface contact
• Quality customer service when it comes to delivery.
• Limited internet access in some countries.