business 1.3 Flashcards
what are promotional methods?
Promotional methods are the different methods that businesses use to inform consumers about their products and to persuade consumers to buy them.
What are examples of promotional methods?
Advertising, social media, sponsorship, sales promotion, public relations and Product placements.
Why is choice of advertising platform important?
To make sure adverts have the maximum impact and to make sure the business reaches the right target market.
What’s another term for advertising?
“Above the line” promotion
What’s the aim of public relations?
Public relations are involved in managing the spread of information about the business. The aim of PR is to make sure this information is as positive as possible and reaches the largest audience possible.
What’s an example of public relations?
An example of public relations is the use of newspaper editorials
where people in a business manage the business’ relationships with different newspapers sending them articles to publish about the business.
Businesses do not pay the newspaper for this coverage like they would for advertising.
what is/the purpose of sales promotion
Sales promotions is a businesses efforts to boost sales using a temporary promotion.
what are different sales promotion methods?
Samples, Point of sales displays, Free gifts, social media competitions ( I.E. like and share for a chance..), Discount coupons, Value for money offers.
What is the promotional mix?
the combination of different promotional methods that a business uses. For example, a business might advertise largely through TV, but also do some social media advertising and have sponsorship deals in place with athletes
What are factors in the promotional mix?
The nature of the market, Target market, The nature of the product or service, Competitor actions and the finance available.
What does the nature of the market entail?
Obviously, as a market matures, the rate of growth changes. If a market is growing slowly, advertising may be less important. If a market is growing quickly, then businesses will be battling for market share and are willing to spend more on advertising as it will affect sales by a larger amount.
What does the target market entail?
A business’ target market for a product (or service) will affect the promotional method that they use because different types of people use different platforms more often.
A business wants to promote its product to its potential customers.
A business that produces women’s underwear will not usually want to promote their product to middle-aged men.
What the nature of the nature of the product or service entail?
The type of product (or service) will influence which promotional method needs to be used.
A technical product like a laptop may want to give consumers more information about their product, whilst a simple product like orange juice (Tropicana juice for example) may not need to give info.
What does Competitor actions entail?
The promotional mix of competitors might influence a business because they may want to reach consumers using the same channel as rivals.
what does the finance available entail?
Some businesses will have much more finance (money) available to spend on promotions.
Some promotional methods (e.g. TV advertising) are more expensive than others.
Smaller businesses with less finance are less likely to be able to afford TV advertising.
