3.3.4 (Promotion) Making marketing decisions: using the marketing mix

Question 1

Define advertising.

Answer 1

The process of communicating with customers or potential customers through specific media.

Question 2

Define promotion.

Answer 2

In the context of marketing, the process of communicating with customers or potential customers. Can also describe communication with other interested groups, such as shareholders and suppliers.

Question 3

What are the two types of promotion and advertising?

Answer 3

Informative or persuasive.

Question 4

Outline informative promotion/advertising.

Answer 4

Intended to increase consumer awareness of the product and its features.

Question 5

Outline persuasive promotion/advertising.

Answer 5

intended to encourage customers to purchase the product, usually through messages that emphasise its desirability.

Question 6

What are the two categories of promotion?

Answer 6

Above the line promotion.

Below the line promotion.

Question 7

Define above the line promotion.

Answer 7

Advertising through media (newspapers, television, radio, the cinema and posters).

Question 8

Define below the line promotion.

Answer 8

All other promotions such as public relations, merchandising, sponsorship, direct marketing, personal selling and competitors.

Question 9

Define the difference between advertising and promotion.

Answer 9

Advertising is one element of promotion, although it is often the key element in the promotional mix of a product.

Question 10

What is the name of the model that is used to demonstrate the different aims of promotion?

Answer 10

AIDA.

Question 11

What does AIDA stand for?

Answer 11

Attention.
Interest.
Desire.
Action.

Question 12

Outline Attention in AIDA.

Answer 12

Get the attention of the consumer - raise awareness of the product amongst the target audience - advertising is used for awareness but is not informative.

Question 13

Outline Interest in AIDA.

Answer 13

Promotional campaigns drip-fed over a period of time - various forms of media - to gain the interest of the customers.

Question 14

Outline Desire in AIDA.

Answer 14

Promotions change from gaining interest, to providing more specific reasons for purchasing the product - involves informative advertising - desire is fuelled by imagery - promotions will mostly be persuasive rather than informative.

Question 15

Outline Action in AIDA.

Answer 15

Converting the consumers desire into the act of purchasing the product. Point of sales displays, special offers etc - all popular methods of achieving this aim - impulse buy products will have greater success with in-shop promotions.

Question 16

What are criticisms of AIDA?

Answer 16

Must be integrated as a whole - a brilliant shop display is unlikely to be successful if earlier stages have been missed and the consumer fails to recognise the displayed item.

Desire and interest cannot be converted into action if the product cannot be found.

Question 17

Outline the elements of the promotional mix.

Answer 17

Public relations.
Merchandising.
Sales promotion.
Direct selling.

Question 18

Outline public relations as an element of the promotional mix.

Answer 18

Gaining favourable publicity through the media.
The public will recognise that an advert is design to sell a product and will therefore be wary of the messages being sent. However, an article argued that a product can raise awareness in a cost effective way.

Question 19

Outline merchandising as an element of the promotional mix.

Answer 19

Attempts to persuade consumers to take actions (usually purchasing a product) at the POS.

Well suited to impulse buys of convenience goods - because merchandising works at the pos, it is effective only if the other methods are successful in enticing customers to the point of sale.

Question 20

Outline sales promotion as an element of the promotional mix.

Answer 20

Short term incentives to persuade consumers to buy a particular product.
Includes competitions, free offers, coupons etc.
In B2B, they may offer credit terms or providing ‘hospitality’.

Question 21

What is the effect of a consumer enjoying a product?

Answer 21

A loyal customer is gained.

Question 22

Outline direct selling as an element of the promotional mix.

Answer 22

The process of communicating directly to the individual consumer through an appropriate form of communication. 
Examples: 
Directly mail.
Telephone,
Door-to-door drops.
Personal selling.

Question 23

Oultine direct mail.

Answer 23

Promotions sent directly to the customers house - growing more rapidly a a form of promotion.

Question 24

Outline telephone.

Answer 24

Often intentially desguised as market research but then transforming into attempts to achieve a sale. Often resented by customers and can be blocked - found to be quite successful - many people are reluctant to be rude to a telephone caller - can create a negative image of a company.

Question 25

Outline door-to-door drops.

Answer 25

Promotions delivered directly to houses - often with the local newspaper - highgly cost-effective and targeted,

Question 26

Outline personal selling.

Answer 26

Crucial element in the final action to buy by consumers - high labour costs have led to a decline in this method of promotion. Important in commercial market - company’s sales force contacts other firms that are seen as potential customers.

Question 27

Outline advertising.

Answer 27

The process of communicating with customers or potential customers through specific media e.g. television.

Question 28

Outline the types of advertising.

Answer 28

Television.
Radio.
Cinema.
National newspapers.
Posters.
Magazines.
Internet.
Local and regional newspapers.
Sponsorship.
Trade fairs and exhibitions.

Question 29

Outline the use of television to advertise.

Answer 29

Has the advantage of being memorable - can present both moving images and sond. Ideal for mass markets, fast-moving consumer goods.
High costs - considered against the number of viewers, however, CPT can be quite low.

Question 30

Outline the use of radio to advertise.

Answer 30

Increased in popularity, because it is flexible enough to target a small local area as well as national markets. Tend to be cheaper than other media - ideal for job advertisments - low cost per advert means easy national coverage.

Question 31

Outline the use of cinema to advertise,

Answer 31

Targeted to specific audiences e.g. age groups.

Question 32

Outline the use of national newspapers to advertise.

Answer 32

Popular newspapers such as the sun are still read by millions of people every day - can be placed on pages that relate closely to the interests of the readership - increases the adverts effectiveness.

Question 33

Outline the use of posters to advertise .

Answer 33

Highly flexible medium - can be used for mass market products or geared towards certain segments. Persuasive for of media - geared towards trying to gain initial attention or interest in the product or service.

Question 34

Outline the use of magazines to advertise.

Answer 34

Specifically targeted at a focused audience - ideal media for promoting niche market products - also used by mass market companies trying to boost sales in a particular market segments

Question 35

Outline the use of the internet to advertise.

Answer 35

Internet users are constantly exposed to promotions - cost effective way of reaching a targeted market.

Question 36

Outline the use of local and regional newspapers to advertise.

Answer 36

Concentrate on goods and services sold on a local basis rather than a national.

Question 37

Outline the use of sponsorship to advertise.

Answer 37

Giving financial assistance to an individual, event or organisation. Can enable advertisement restricted businesses to reach customers - often improves goodwill when supporting a good cause - e.g. cigarettes.

Question 38

Outline the use of trade fairs and exhibitions to advertise.

Answer 38

Used for B2B get to know people in other businesses (aka ‘networking’) - used to demonstrate products to potential customers and provide detailed information and brochures.