4.5.2 Flashcards
what is a promotion?
Promotion refers to communicating information about the firm’s product to consumers. The main aim of promotion is to get more costumers and/or retain existing ones.
Promotional activities should be clearly communicated to consumers and provide information on how and where to get the product.
What should Promotional objectives aim to do?
Increase sales by raising consumer awareness of a new product
Remind consumers of an exciting product and its distinctive qualities
Create or reinforce the brand image or “personality” of the product
Encourage increased purchases by existing consumers or attract new customers
demonstrating the superior specification or qualities of a product compared to those of competitors (i.e. when the product has been updated or adapted in some way)
Correct misleading reports about the product or the business and reassure customers after a “scare” or an accident involving the product
Encourage retailers to stock and actively promote products to the final consumers.
what are the three categories of promotion?
Above-the-line promotion (ATL)
Below-the-line promotion (BTL)
Through-the-line promotion (TTL)
what is above the line promotion?
Above-the-line promotion – this is when the control or responsibility of the product promotion is passed onto another organization. So the business uses paid communication that uses mass media promotion of their products
what role does advertisment pay in promotion?
Advertising plays a key role in promotion, since it globally passes the information about the product choosing the right media for promotion. The main forms of advertising includes television, newspapers, magazines , cinema, radio, posters , billboards and the Internet.
what are the three types of advertising?
Advertising can be informative, persuasive or reassuring.
what is informative advertising?
Informative advertising – refers to advertisements that give information to potential purchasers of a product, rather than just trying to create a brand image. This information could include price, technical specifications or main features and places where the product can be purchased.
when is informtaive adverting good?
This style of advertising could be particularly effective when promoting a new product that consumers are unlikely to be aware of or when communicating a substantial change in price, design or specification. It can also be used by Governments to promote policies like “don’t drink and drive”
what is pursavsive advertising?
Persuasive advertising – This involves trying to create a distinct image or brand identity for the product. It may not contain any details at all about materials or ingredient used, prices or places to buy it.
This form of advertising is very common, especially in those markets where there might be little actual difference between products and where advertisers are trying to create a perceived difference in the minds of consumers.
It’s aimed to make consumers make unplanned purchases knows as impulse buying (i.e. promote at shopping malls halls or on the street).
what is reasuring advertising?
Reassuring advertising – when a firm wants to remind its costumers that they make the right decision on choosing their product, for example remind them of their product’s quality.
what is blow-the-line promotion and can you give example?
Below-the-line promotion (BTL) - This refers to promotional activities where the business has direct control over the target or intended audience. The firm can focus on their promotional activities on consumers they know or those who are interested in the product.
There are many methods of below-the-line, including sales promotions, direct marketing, personal selling and public relations.
what are sale promotions?
Sales promotions – they are temporary methods to improve sales by attracting new customers and encouraging existing customers to purchase more. Although offers may be short-term, there is a belief that trial of the firm’s product will create brand loyalty. Of course, sales promotion come at a cost and hence reduce a firm’s profit margin.
what are some examples of sale promotions?
Examples of sales promotions are: coupons, BOGOF (buy one get one free), competitions, free samples and point-of sale (where promotional activities directed at customers in retail outlets, such as special displays, tastings, demonstrations and sales presentations. These are normally combined with vouchers and other special offers on purchases in that shop to encourage impulse buying)
what is dircet markting?
Direct marketing - Firms communicate straight to with consumers (no intermediaries used) with advertising techniques such as fliers, catalogues and promotional literature.
If an advertisement asks the customer to respond in some way, such as calling a free phone number or visiting a website, this is called direct response advertising (i.e. restaurants send menu’s direct to houses and offer a discount for using the flyer with a menu).
However, customers might disregard the information and bin it without reading it.
what is personal selling?
Personal selling - when the firm uses personal contact to sell their products , the sale is done face-to-face or by telephone. Its used in cases of really expensive products like cars or specialized machinery where costumers need to be advise and reassured that they are making the right decision.
Even tough it could increase sales it also increases cost for the company since they have to pay sales representatives and train them specifically on the products.
