Chapter 15 Marketing Mix: promotion

Question 1

What is promotion

Answer 1

marketing activities aim to raise customer awareness of a product or brand generating sales and helping to
create brand loyalty.

Question 2

What are the 2 general types of promotion

explain both

Answer 2

Advertisements - above the line - advertising to the masses

Sales promotions - below the line - advertise to target audience and used for short periods of time

Question 3

What are the aims of promotion

Answer 3

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 4

What is advertising
2 types
explain both

Answer 4

paid for communication with potential customers about a product to encourage them to buy it.

Informative - is where the emphasis of advertising or sales promotion is to give full information about the
product.

Persuasive - advertising or promotion which is trying to persuade the consumer that they really need the product and should buy it.

Question 5

What is the process of advertising

explain each

Answer 5

Set objectives - decide the purpose of advertising

Decide on advertising budget - How much money they want to spend on advertising

Create an ad campaign - What sort of ad campaign to run

Select the media to use - What is the best type of adveritsing media to use

Evaluate campaign effectiveness - if the advertising campaign met it’s objective

Question 6

What is the target audience

Answer 6

people who are potential buyers of a product or service

Question 7

Adv and disadv of TV

Answer 7

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 8

Adv and disadv of Radio

Answer 8

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 9

Adv and disadv of newspaper

Answer 9

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 10

Adv and Disadv of magazines

Answer 10

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 11

Adv and disadv of billboards

Answer 11

Adv:
Permanent
Cheap
Potentially seen by everyone who passes

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

Question 12

Adv and Disadv of CD, DVD and Blu ray

Answer 12

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 13

Adv and Disadv of leaflets

Answer 13

Adv:
Cheap
Permanent
Given to a wide range of people

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

Question 14

Adv and Disadv of the Internet

Answer 14

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 15

What are sales promotions

Answer 15

incentives such as special offers or special deals aimed at consumers to achieve short-term increases in sales

Question 16

Types of sales promotoins

Answer 16

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 17

Adv and disadv of sales promotions

Answer 17

» 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 18

What is the marketing budget

Answer 18

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

Question 19

Factors that affect the type of promotion that is used

Answer 19

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 20

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

Answer 20

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