2.2.3 Promotion

Question 1

What do business’s use promotion to do?

Answer 1

• create customer awareness of, interest in and desire for their products
• persuade consumers to buy a product or service
• remind consumers about the benefits of a product or service

Question 2

What will effective promotion allow?

Answer 2

will allow a business to build a strong brand image and help boost sales at various times

Question 3

Importance of strong branding:

Answer 3

• customers may instantly recognise the brand and what it represents
• customers may associate positive characteristics with the brand
• a well-known brand may become a first-choice for customers, increasing brand loyalty
• customers may trust a strong brand
• a strong brand may allow a business to charge a premium for their products and services

Question 4

Brand:

Answer 4

• represents the characteristics and personality of a business
• not just a logo or slogan

Question 5

Advertising:

Answer 5

• An advert is a paid-for message designed to influence consumer purchase
• Adverts do this using emotive language, which is designed to make people feel a certain emotion, including excitement, sadness or fear

Question 6

Examples of advertising:

Answer 6

• TV
• radio
• billboards, posters
• websites
• point-of-sales displays
• print e.g. newspapers, leaflets, magazines and brochures

Question 7

Benefits of advertising:

Answer 7

can have a big impact and grab customers’ attention if the advert is in the right place and uses the right medium

Question 8

Drawbacks of advertising:

Answer 8

can be expensive + also difficult to work out the impact of advertising on sales

Question 9

Sponsorship:

Answer 9

• provide financial support to an event, person or organisation, either through free products or services, or through a financial payment
• In return, the business, product or service is prominently displayed

Question 10

Examples of sponsorship:

Answer 10

• at sporting evens
• conferences
• exhibitions
• good causes e.g. environmental causes, educational causes, charity events etc.

Question 11

Benefits of sponsorship:

Answer 11

• can provide a business with a lot of exposure and can associate it with a good cause

Question 12

Drawbacks of sponsorship:

Answer 12

communicates very little information about features and benefits of products and services

Question 13

Product trials:

Answer 13

designed to encourage consumers to try a product either for free or at a reduced cost

Question 14

Examples of product trials:

Answer 14

• free miniatures/samples
• free trials
• trial offers

Question 15

Benefits of product trials:

Answer 15

can encourage customers to use a new products or service that they might not have tried otherwise

Question 16

Drawbacks of product trials:

Answer 16

can be very expensive to give away free products

Question 17

Special offers:

Answer 17

offer incentives to persuade consumers to make a purchase

Question 18

Examples of special offers:

Answer 18

• BOGOF offers
• free prize draws
• discounts
• competitions
• free gifts
• money-off vouchers
• loyalty cards

Question 19

Benefits of special offers:

Answer 19

can boost short-term sales and clear stock levels

Question 20

Drawbacks of special offers:

Answer 20

not sustainable in the long-term as selling at a discount will reduce profits

Question 21

Branding:

Answer 21

• businesses often want to establish a positive brand image
• when a new product is launched under an established brand name, consumers may be more likely to purchase it because of their knowledge of the existing brand

Question 22

Examples of branding:

Answer 22

using a recognisable logo on all promotional materials so that customers remember it and associate it with the product/business

Question 23

Benefits of branding:

Answer 23

can encourage customers to connects with the brand, trust it and become loyal to it

Question 24

Drawbacks of branding:

Answer 24

takes a long time to develop a strong brand and brand image can be damaged quickly by bad publicity

Question 25

What will building a promotional strategy depend on?

Answer 25

- the size of the business - how much the business has to spend on promotion - the market segments that it is aiming to reach

Question 26

How is targeted advertising online used in promotion?

Answer 26

- Website owners can track the online activity of consumers who visit their site by using cookies - They can use cookies to build a profile of consumers’ interests - They can then serve adverts for products suited to the individual consumer or market segment

Question 27

How is viral advertising via social media used in promotion?

Answer 27

- cheap form of communication that provides opportunities for viral advertising - Viral marketing involves producing marketing materials that can be shared, usually on social media - It requires content, such as a video, that appeals to users to encourage them to share it - This can be used to support a campaign, as well as to market a product or service

Question 28

How are e-newsletters used in promotion?

Answer 28

- e-newsletters can be tailored to the needs and interests of customers - a good way for a business to keep in touch with consumers who have previously purchased, or shown an interest in, products that the business sells

Question 29

How are apps used in promotion?

Answer 29

- business’ apps for consumers and the opportunity to advertise through 3rd party apps - enable businesses to personalise promotional materials and offers for specific consumers + can enhance customer convenience - businesses can advertise within an app, and apps also enable innovative interaction with customers