2.4 the marketing mix- promotion

Question 1

list the point of sale promotion methods:

Answer 1

•price reduction
•competitions
•free samples
•loss leaders

Question 2

what is price reduction?

Answer 2

reducing price in order to sell off old stock

Question 3

what are loss leaders?

Answer 3

•another form of price reduction where the business will lower the price of one or two products to the point where no profit is being made to entice customers

Question 4

what are competitions?

Answer 4

competitions can be used to boost sales where customers enter competitions in hopes for a prize in the end

Question 5

what are free samples?

Answer 5

where businesses let customers try their products in hopes that they buy the full product

Question 6

list the promotion techniques - advertising

Answer 6

social media, websites, printed media, tv, radios

Question 7

what are some pros and cons of using social media to advertise?

Answer 7

pros:
*it’s an cheap way to target customers because those following a business have an interest in it and more likely to take notice

cons:
*not everyone uses it

Question 8

what are some pros and cons of using websites to advertise?

Answer 8

pros:
•they can be used to advertise and can be regularly updated

cons:
•maintaining a complex website can be expensive though there are simpler versions for smaller businesses

Question 9

what are some pros and cons of using printed media to advertise?

Answer 9

pros:
•local newspapers are ideal for low cost advertising that only reaches the target market in the local area
•leaflets are cheap to produce and can be targeted to the target market making them cost effective

cons:
•magazines are published on a monthly basis which may not be enough for advertisers who constantly want their products infront of the buyer

Question 10

what are some pros and cons of using tv to advertise?

Answer 10

pros:
•can be used for large businesses to advertise to a large group throughout the country and you can target customers by choosing the right customers

cons:
•costly

Question 11

what are some pros and cons of using radios to advertise?

Answer 11

pros:
*suited for smaller businesses as it’s cheaper than TV
*radios are portable so can get to customers anywhere

cons:
*the product can not be seen
-may not attract teh consumers full atention as radios are often played when doing other things e.g. drivng

Question 12

list aims of promotion:

Answer 12

•to persuade potential customers to buy
• to inform customers about benefits and features
•to tell customers where products are sold
•to create a favourable image of the brand or company