Ch 15 - promotion

Question 1

What are the aims of promotion

Answer 1

Increase sales 
Improve company image
Create a brand image
Intro new products to market 
Compete with comp's products
inform people about particular issues, often used by government

Question 2

Adv and disadv of TV

Answer 2

Adv:
Reach a very large audience
Product can be shown in a favourable way
Can reach a target audience at times when potential buyers are going to watch tv

Disadv:
Very expensive
May not be able to target young audience who don’t watch TV anym

Question 3

Adv and disadv of Radio

Answer 3

Adv:
cheaper than TV
Can reach a large audience
Often uses a memorable song or tune so that the advert will be remembered

Disadv:
Cannot put across a visual message
Quite expensive relative to other methods of advertising
The advert needs to be remembered, the customer
cannot look back at a hard copy of the advert
Not as wide an audience as television

Question 4

Adv and disadv of newspaper

Answer 4

Adv:
Can reach a large target audience
Adverts are permanent
Lots of info can be put on the ad

Disadv:
Only black and white so isnt eye-catching
Youth doesn’t read newspaper

Question 5

Adv and Disadv of magazines

Answer 5

Adv:
Magazines are read by a specific type of person so can reach target audience effectively
Coloured ads - more attractive

Disadv:
Only published once a month/week
Very exp

Question 6

Adv and disadv of billboards

Answer 6

Adv:
Permanent
Cheap
Potentially seen by everyone who passes

Disadv:
Can be easily missed
No detailed info can be included in the ad

Question 7

Adv and Disadv of CD, DVD and Blu ray

Answer 7

Adv:
low cost
Can be very effective if the target audience goes to see particular films
Can give visual image of the product and show the product in a positive way

Disadv:
Can be outdated
Few people go and buy CDs or DVDs

Question 8

Adv and Disadv of leaflets

Answer 8

Adv:
Cheap
Permanent
Given to a wide range of people

Disadv:
May not be read and could be junked
Can annoy customers

Question 9

Adv and Disadv of the Internet

Answer 9

Adv:
Large amount of people can see
Orders can be made instantly
Direct mail via email is cheap

Disadv:
• Internet searches may not highlight the website and it
could be missed
• In some countries internet access is limited
• There is a lot of competition from other websites
• Security issues may discourage customers from buying online

Question 10

Types of sales promotoins

Answer 10

Buy 1 get one free
Free gifts
After sales services
Free samples
Price reductions 
Money-off coupons 
Product placement - in TVs and movies n all

Question 11

Adv and disadv of sales promotions

Answer 11

» It can promote sales at times in the year when sales are traditionally low (off-season purchases).
» It encourages new customers to try an existing product.
» It encourages consumers to try a new product.
» It encourages existing customers to buy a product more often or in greater quantities, increasing consumer loyalty.
» It encourages customers to buy your product instead of a competing brand.

Question 12

What is the marketing budget

Answer 12

a financial plan for the marketing of a product or product range for a specified period of time.

Question 13

Factors that affect the type of promotion that is used

Answer 13

Stage of product life cycle. New product - informative. Existing/well known product - persuasive

Nature of product - a producer good, a consumer good, technical etc

The nature of the target market

The cultural issues involved in international marketing

Question 14

Why is the need for cost effectiveness in spending the marketing budget very important?

Answer 14

A business will need to compare the cost of advertising with the increase in expected sales.