Market Mix - Promotion

Question 1

what is promotion?

Answer 1

Promotion is the process of raising awareness of the product and promoting to customers instead of the going to competitors.

Question 2

what is promotion all about?

Answer 2

• Inform
• Remind
• Persuade

Question 3

what are the factors affecting promotion?

Answer 3

• THE TARGET MARKET– the best way to allow your product to be seen by the right people.
• THE FINANCE AVAILABLE
• COMPETITORS ADVERTISING– what are they doing? Make it better.
• DESRIED PRODUCT– WOW factor or informative.
• SIZE OF THE BUSINESS
• THE LAW – requirements for certain products.

Question 4

what are promotional strategies?

Answer 4

• COUPONS – providing customers with vouchers that entitle them to money off products should they chose to buy them may influence more sales.
• LOYALTY CARDS – allow businesses to build up ‘loyalty’ more easily as customers are benefiting from shopping there. Also generate good market research information for the business e.g. Tesco Clubcard.
• COMPETITION – encouraging customers to buy products as they will be in with the chance of winning something.
• SPECIAL OFFERS – providing customers money pf products e.g. BOGOF, 20% off
• FREE SAMPLES – allows customer to try the product for free in hopes that they will return and buy the product. Without the samples, customer might never have tried the product.
• CELEBRITY ENDORSEMENT– when a celebrity is used to promote a product e.g. Cary Lineker – walkers. Some customers will be encouraged to buy as thy look up to the celebrity.
  Advertising

Question 5

what are the methods of advertisement?

Answer 5

• BROADCAST MEDIA – TV
• PRINT MEDIA – newspaper, billboard
• APPS – advertising within apps, banners
• SMS – sending texts to customers

Question 6

below the line promotion (BTL) sales promotion involves encouraging the customer to purchase. This is achieved by?

Answer 6

• INTO THE PIPELINE – manufacturers use it to encourage distributors to purchase more stock. (i.e. wholesalers and retailers)
• OUT OF THE PIPELINE – used to encourage the consumer to purchase the product.

Question 7

manufacturer - retailers = ?

Answer 7

into the pipeline

Question 8

retailer - customer = ?

Answer 8

out of the pipeline

Question 9

what is into the pipeline?

Answer 9

These are offered by the manufacturer to encourage retailers to purchase from them.

Question 10

what is out to the pipeline?

Answer 10

These are offered by the retailer to encourage customer to purchase from them.

Question 11

what are the examples of above the line promotion (ATL)?

Answer 11

• TV
• Radio
• Cinema
• Billboards
• Internet

Question 12

what are the examples of below the line promotion (BTL)?

Answer 12

• Social Media
• Apps
• Product endorsement
• Product placement

Question 13

explain ATL…

Answer 13

The design is often outsourced to advertising agencies meaning high quality adverts.
Can each very wide audiences across many market segments.
The business does not have direct control of which consumer their products is being advertised to.
Expensive due to adverts being produced by experts.

Question 14

explain BTL…

Answer 14

Business has control over the customers the advert is aimed at.
BTL is more affordable than ATL.
Impact can only last for a limited period of time e.g. social media posts.
Some customers do not like BTL as they feel it is intrusive.

Question 15

sale promotion examples of manufacturer - retailer (into)…

Answer 15

• TRADE CREDIT – buy now, pay later
• POS MATERIAL – posters and displays
• SALES OR RETURN – option to return goods that do not sell
• Buy in BULK discounts

Question 16

sale promotion examples of retailer - customer (out of)…

Answer 16

• Special offers -BOGOF
• Free gifts
• Vouchers
• Loyalty schemes
• Interest free credit