Making Marketing Decisions Flashcards
Define Promotion
- Refers to the ways in which a business communicates it’s products and services to customers
- most common form of promotion is advertising
Why would a business advertise?
A business will advertise to:
- promote the brand
- raise awareness of a product
- remind customers how great the product is
- persuade customers to switch to them
What does the choice of advertising medium depend on?
- the size of the business
- the type of product
- the nature of the market (competition, etc)
What are the two types of products?
Mass market products and niche market products
Examples of mass market products:
Large Budgets:
- national radio
- TV adverts
- national newspapers
Examples of niche market products:
Small Budgets:
- local radio
- local paper/ flyers
- social media (the most effective)
- traditional media not as effective
Define sponsorship
Define sponsorship
- When a business supports an event, organisation or person either financially or by providing it’s products or services
- Businesses provide facilities and services in exchange for the publicity they receive from an event.
Define Product Trial
A product trial means giving potential customers a free taste of a new product. Product trials can also reduce the risks where the business is not confident with the ability of the product to be sold in the larger market
Define Publicity
Any communication about a business that is created by the business, it’s customers or a third party. Publicity can be good or bad, good publicity can generate interest in a business and build trust in a brand. Customer generated publicity can be created on websites like trip advisor
Define Special offers
These are sales promotions, they are designed to encourage customers to make a purchase and boost sales over a short period. Many businesses use special offers to entice customers into a shop so they purchase other items. It also is efficient in clearing stock.
Define Branding
A personality or image of a product, created through marketing activities. A strong brand helps build customer loyalty and stands out from other competitors
What are some mediums of promotion using digital technology
- advertising on websites
- social media + viral adverts
- apps
Advantages of using technology
- saves time
- it is cheaper as it is free to post on social media
- it’s easier to target +reach more people
- accessible
Examples of market segments
- religion
- race
- gender
- income
Define distribution
How ownership changes as a product goes from producer to consumer
Define Etailer
An electronic retailer; purchasing electronically either by e-commerce or by m-commerce
Define Retailer
A shop or chain of shops usually selling from a building in a high street or shopping center
What is the traditional channel?
The traditional channel means producers sell in bulk to wholesalers, who then sell smaller amounts to retailers
What is the modern channel?
The modern channel is where the producer directly sells to retailer - such as supermarkets buying milk directly from farmers
What is the direct channel?
The direct channel is where the producer sells directly to the customer
Advantages of retailing
- Customers
