3.5.2 The Marketing Mix Flashcards
What is the role of promotion?
However, no matter how good the product is or how attractive the prices are to customers, businesses have to communicate with both existing and potential
customers to persuade them to purchase the good or service.
What is place?
Place on the other hand, refers to how the product is sold to customer;
the channel of distribution used from producer to consumer.
What are the four elements of the marketing mix?
- Price
- Product
- Promotion
- Place
What is promotion?
Promotion is about communicating with actual or potential customers.
What can effective communication bring? [2]
Effective promotion not only increases awareness of products but can also create images or product ‘personalities’ that consumers can identify with.
What is the role of promotion?
The role of promotion is to facilitate exchanges directly or indirectly by informing individuals, groups or organisations and influencing them to accept products of the business or to have more positive feelings about the brand.
What do marketers do to have an impactful promotion.
Typically, marketers convey information about the products of the business to specific market segments so that the impact of promotion is quickened.
What do marketers often do? [2]
- Marketers would also at times address other stakeholders such as interest groups, regulatory agencies, investors,
and the general public concerning the business and its products. - Marketers frequently design promotional communications, such as advertising, for
specific groups, although some may be directed at wider audiences.
What is the purpose of promotion?
This broader role of promotion is to maintain positive relationships between the business and various
stakeholders in the marketing environment.
Why must marketers carefully plan, implement, and coordinate promotional communications?
To maximize the effectiveness of promotional activities by using quality and quantity information about the marketing environment.
What does the effectiveness of promotional activities depend on?
It depends on the quality and quantity of information available to marketers about the marketing environment.
Why is it important for a business to know who its customers are and how they make purchase decisions?
To effectively influence customers to buy a certain product.
What must marketers do to communicate successfully with their target audience?
Marketers must gather and use information about particular audiences.
Give an example of how information about customers can impact promotional strategies.
If a marketer wants to influence customers to buy a product, the business must know who these customers are and how they make purchase decisions for that product.
What are the benefits of promotional activities to businesses? [4]
- Increase brand awareness
- Increase customer traffic
- Build sales and profits
- Identify with market segment
How do promotions help in creating brand awareness?
Promotions use various media like television, billboards, radio, and newspapers to spread information about the business and brand, helping consumers learn about the business, explore its products, and make purchases.
How do promotions help with increasing customer traffic? [2]
- The more a brand or product is promoted, the more customers will know about it and the more they will be interested in the product or brand.
- Customers generally need to be updated consistently with new content to stay interested and engaged.
How do promotional materials help build sales and profits? [3]
- Promotional materials give customers an incentive to purchase, especially in markets where there are many competitors.
- Free samples and giveaways are indicators of confidence in the goods and services sold by the business, since the business is willing to let customers try first.
- This will gain the trust of customers and lead them to finally make purchases.
What is customer traffic?
Customer traffic refers both to customers visiting the retail store, as well as online visits to the company website.
Why is it important for a promotional and marketing strategy to be well-structured?
A well-structured strategy, supported by adequate market research, helps a business identify different market segments and offer suitable solutions to them, leading to successful targeting.
Why are these promotional tools combined? [2]
- The tools that are combined to promote a particular product make up the promotion mix for the item.
- It is likely two or more of these tools will be used together in a promotion mix, depending on the type of product and the target market involved.
What are the types of advertising media? [7]
- Newspapers
- Magazines
- Direct Mail
- Outdoor Advertising
- Television
- Radio
- Product Placement
What is advertising?
Advertising refers to paid-for communication with consumers to inform and persuade.
What is advertising usually directed? [3]
- Advertisements are usually directed towards the appropriate target market by selecting the right media.
- Successful advertising campaigns have led to substantial increases in consumer awareness and sales.
- This effect can last for a considerable length of time if brand loyalty can be established.
Why do retailers use newspaper advertising? [3]
- Usually, retailers use newspaper advertising because it is relatively inexpensive compared to other media.
- Since newspapers provide local coverage, advertising dollars are not wasted in reaching people outside the
market area of the business. - It is also timely, and the advertisement can be placed a few days before it is due to appear.
What are the disadvantages of using newspaper advertising? [2]
- However, newspaper advertisements have a short life span as they are usually read through once and
then discarded. - Also, marketers could not target specific demographic groups as newspapers are read by a broad spectrum of people.
Why is magazine advertising more prestigious than newspaper? [2]
- Magazine advertising is more prestigious than newspaper
advertising, and it allows for high quality colour reproduction. - In addition, magazine advertisements have a longer lifespan then those in other media.
Why direct-mail campaign may fail?
A direct-mail campaign may fail if the mailing list is outdated and does not reach the right people.
What is direct mail? [5]
- Direct-mail advertising is promotional material mailed directly to individuals.
- Direct mail is the most selective medium, as mailing lists are available to reach almost any target audience, from car enthusiasts to environmental advocates.
- The effectiveness of direct-mail advertising can be
measured because the advertiser has a record of who received the advertisements and can track who responded to them. - Increasingly, more businesses are using direct email.
- The success of direct-mail advertising depends to some extent on maintaining appropriate and current mailing lists
What are the features of television advertising?
- Television advertising is the primary medium for larger businesses whose objective is to reach national or regional markets.
- A national advertiser may buy network time, which means that its message will be broadcast by all the local channels affiliated with the network.
What are the disadvantages of magazine? [3]
- The major disadvantages of magazine advertising are high cost and lack of timeliness.
- As magazine advertisements must be prepared two to three months in advance, they cannot be adjusted to reflect latest market conditions.
- Magazine advertisements, especially the full-colour ones, are also expensive.
What are the features of outdoor advertising?
- Outdoor advertising consists of short promotional
messages on billboards, posters, signs, and transportation vehicles. - Signs and billboard advertising allows the marketer to focus on a particular location, and it is also fairly inexpensive.
What is the disadvantage of television advertising?
However, the opportunity to reach extremely large television audiences has been reduced by the increased availability and popularity of cable channels and online streaming applications.
What are the disadvantages of outdoor advertising?
- This medium is especially suitable for products that lend themselves to pictorial display.
- However, because outdoor advertising is targeted
towards a mobile audience, the message must be limited to a few words.
What are the disadvantages of radio advertisements?
The disadvantages of radio advertisements are the absence of visual images and the small audience size.
What is the radio advertising? [4]
- Similar to magazine advertising, radio advertising offers selectivity.
- Radio stations develop programming for, and are tuned in by, specific groups of listeners.
- Radio advertising can be less expensive than other media, and even small businesses can afford to use this medium.
- In addition, advertisements can be scheduled and changed on short notice.
What is product placement?
Product placement is an advertising technique in which a
company promotes its products through appearances on television shows, movies or other media.
What is sales promotion? [4]
- Sales promotion are incentives directed at consumers or retailers to achieve short term sales increases and repeat purchases by consumers.
- Sales promotion is an active approach to marketing; it is not just about informing the customers.
- In many cases of sales promotion, consumers already know about the product’s existence and any promotion campaign is to stimulate customer purchase.
- Sales promotion can be directed at either the end-consumer (to encourage the purchase) or the
retailer (to encourage stocking and displaying the product).
What is price promotion? [2]
- These are temporary reductions in price, also known as price discounting.
- They are aimed at encouraging existing customers to buy more and to attract new customers as the product now appears more competitive.
What are the limitations of price promotions? [2]
- The limitations are that increased sales gained from price reductions will affect the gross profit on each item sold.
- There might also be a negative impact on the
brand’s reputation from the discounted price.
What are coupons? [2]
- Coupons, or money-off coupons, are a more versatile and better focused way of offering a price discount.
- Coupons can appear on the back of receipts, in newspaper adverts or on an existing pack of the product
What are customer loyalty schemes? [2]
- Customer loyalty schemes, such as air miles or
customer loyalty cards focused on encouraging repeat purchases and discouraging consumers from shopping with competitors. - The information stored through these loyalty cards provides a great deal of information about
consumers’ buying preferences.
What are the disadvantages of coupons? [3]
- However, using coupons may simply encourage consumers to buy what they would have
bought anyway. - Retailers may also be surprised by the increase in demand and not hold enough stocks, leading to consumer disappointment.
- The proportion of consumers using the coupon might be low if the price reduction it offers is too small.
What are the disadvantages of customer loyalty schemes? [3]
- The limitations are that the discount offered by
such schemes cut the gross profit on each purchase. - There are administration costs to inform consumers of loyalty points earned and these may outweigh the
benefits from increased consumer loyalty. - In addition, most consumers now have many loyalty cards from different retailers, so their loyalty impact is
reduced.
What are point-of-sale displays? [3]
- Maximum impact on consumer behaviour is achieved by
attractive, informative and well-positioned displays in stores. - The best display points are usually offered to the market leaders; products with high market share.
- New products may struggle for best positions in stores unless big discounts are offered to retailers
What is the problem of rebate?
One problem with rebates is that many people perceive the redemption process to be too complicated.
What are rebates? [4]
- A rebate is a return of part of the product’s purchase price.
- Usually, the refund is offered by the manufacturer to customers who send in a coupon along with a specific proof of purchase.
- Rebating is a relatively low-cost promotional method, and is applied to a wide variety of products.
- Some automakers offer rebates on their vehicles because they found that many car customers are more likely to purchase a car with a rebate than the same car
with a lower price and no rebates.
What is personal selling? [2]
- Personal selling is where 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.
- Personal selling offers two unique advantages over other promotional tools.
What are the advantages of personal selling?
- Personal selling results immediate feedback from the customers.
- Personal selling allows the business to develop a personal relationship with the customer.
Why does personal selling results in immediate feedback from the customer? [4]
- Personal selling results in immediate feedback from the customer.
- The salesperson can see the nonverbal communication that might give insight into the customer’s mind-set and the likelihood that he or she will buy.
- In addition, the salesperson can listen directly to the feedback, objections, and concerns the customer has.
- This allows the salesperson to adjust the sales presentation accordingly and provide detailed and customised solutions that can generate more sales.
Why does personal selling allow the business to develop a personal relationship with the customer? [3]
- Personal selling allows the business to develop a personal relationship with the customer.
- Relationship selling involves building a trusting relationship with the customer over a long period of time.
- Relationship selling is increasingly important since very few businesses can survive on profits generated from onetime transactional sales.
What are the limitations of personal selling? [4]
- Employing a salesperson to sell to each individual customer is a very expensive form of promotion.
- It tends only to be used for quite expensive items with a high profit margin, such as furniture, cars or home improvements.
- Sales success rates are often high with skilled direct-sales staff, though customers often complain about being
pressured into buying. - This might particularly be the case if the sales staff are well trained and do not make a sale to a reluctant consumer who later regrets the decision and tells friends to avoid this business in future.
