MARKETING Flashcards
Above the Line Promotion
This refers to traditional mass media marketing through channels such as television, radio, newspapers, and billboards. For BON, this could involve advertising campaigns on national TV or in music magazines to reach a broad audience.
Below the Line Promotion
It includes more direct and targeted promotional activities that are not mass media, such as direct mail, sponsorships, and public relations. BON could use targeted social media campaigns or local flyers to promote festivals to specific audiences.
How BON could enter International Markets
- Joint Ventures/Startegic Alliances
- International Franchising
Why is it good to operate internationally
- Larger Market: Larger customer base. Effective extension strategy when an existing product is in the saturation stage.
- Diversification: Spread their rissk by investing in other countries. Reduces dependence on a single revenue streams.
- Enhanced brand image
- Economies of scale
Marketing Mix
Product: Goods or services offered by a business.
Price: What the consumer must pay for the product or service.
Place: Distribution channels used to reach customers.
Promotion: Marketing communications used to make the offer known.
People: Staff and salespeople who represent the business.
Process: Mechanisms through which services are consumed.
Physical Evidence: The environment in which the service is delivered.
Expansion Definition
The process of a business enlarging its customer base, product offerings, or market presence. BON could expand by adding more festival dates, locations, or diversifying into different types of events.
Average Cost Definition
The total cost of production divided by the number of goods produced. It’s important for BON to calculate the average cost of hosting each festival to determine pricing and profitability.
Pricing Strategies
Cost Plus: Adding a standard markup to the cost of the products or services. BON could use this to ensure all festivals cover costs and achieve a profit margin.
Penetration Pricing: Setting a lower price to enter a competitive market and attract customers quickly. BON might use this for new festival locations to attract early interest.
Competitive Pricing: Setting a price based on what competitors are charging. BON would research other festival prices to ensure theirs are competitive.
How could BON develop a USP
Exclusive Lineups: Offer unique artist lineups not available at other festivals.
Unique Experiences: Create immersive experiences, such as exclusive workshops or installations that can only be found at BON festivals.
Sustainability: Emphasize a commitment to sustainability, appealing to environmentally conscious consumers.
Location: Utilize unique or scenic locations that provide an additional draw beyond the music.
