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Higher Business- Marketing > Marketing Mix- Promotion > Flashcards

Marketing Mix- Promotion Flashcards

1
Q

What is promotion the process of?

A

Promotion is the process of raising awareness of products and persuading customers to buy them

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2
Q

What are into-the-pipeline promotions?

A

Into-the-pipeline sales promotions are offered by the manufacturer to encourage retailers to purchase products from them

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3
Q

What are out-of-the-pipeline promotions?

A

Out-of-the-pipeline sales promotions are offered by the retailer to encourage customers to purchase products from them.

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4
Q

Why do businesses use promotion methods?

A
  • Businesses use promotion methods to make customers aware of their products and services.
  • Promotion methods are highly competitive and usually expensive.
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5
Q

What are examples of into-the-pipeline sales promotion?

A 
— pointofsalematerials
— sale or return
— dealerloaders
— promotionalgifts
— stafftraining
— trade credit
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6
Q

What is Trade credit,

Advantages and disadvantages?

A

-manufacturers offer retailers credit to pay for goods at a later date

Advantages

  • no cash is required to stock products, which is good for new or struggling businesses
  • retailers can purchase goods and then pay for them once they are sold

Disadvantages
-this could lead to bad dept if retailers are unable to sell the goods and repay the supplier

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7
Q

What is point of sale(pos) materials,

And what are the advantages and disadvantages?

A

-free posters and display materials are given to retailers to display products to customers

Advantages

  • this can enhance the look of the retail store
  • it can draw customers eyes to the product display

Disadvantages
-retailers may need to dispose of bulky display materials at the end of the promotion

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8
Q

What is sale or return,

And what are the advantages and disadvantages?

A

-manufacturers give retailers the option to return goods that do not sell

Advantages

  • it allows retailers to try new products without the risk of being stuck with unsold inventory
  • it improves cash-flow

Disadvantages
-products may be returned in a poor condition, creating waste

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9
Q

What is dealer loaders,

And what are the advantages and disadvantages?

A

-discounts used to encourage retailers to stock up on a product

Advantages

  • retailers can save on the unit cost of products, allowing for greater profits
  • savings can be passed to customers to increase sales revenue

Disadvantages

  • retailers may overstock and find they are unable to sell
  • products might go out of date or out of fashion
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10
Q

What is staff training,

And what are the advantages and disadvantages?

A

-manufacturers can offer retail staff free training to give them the skills and knowledge to sell the product

Advantages

  • staff become experts in the product, which can impress customers
  • the quality and motivation of staff are improved

Disadvantages
-training has to be done during normal hours , which reduces productivity or after hours which will increase overtime pay

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11
Q

What are promotional gifts,

And what are the advantages and disadvantages?

A

-Manufacturers can provide retailers with promotional gifts for customers to encourage the sale of their product and attract customers into the retailer. For example, a food company could provide branded bowls with the purchase of selected cereals.

Advantages
-tbc

Disadvantages
-tbc

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12
Q

What are examples of out-of-the-pipeline promotion methods?

A
  • special offers
  • free gifts
  • vouchers and coupons
  • loyalty schemes
  • interest-free credit
  • free trials/sample packs
  • competitions
  • trade shows and events
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13
Q

What are special offers,

And what are the advantages and disadvantages?

A

-this can include buy one get one free (BOGOF) and other short term promotions on selected items

Advantages
-this can encourage customers to try new products, which they may then purchase again at normal price

Disadvantages
-customers may feel pressured into buying more than they need, which may result in waste

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14
Q

What are free gifts,

And what are the advantages and disadvantages?

A

-used to tempt customers to buy a product again or for the first time

Advantages
-gifts that require multiple tokens/stamps can encourage repeat purchases

Disadvantages
-it can be difficult to find a gift that appeals to all target markets

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15
Q

What are vouchers and coupons,

And what are the advantages and disadvantages?

A

-usually given in newspapers/magazines to give customers money off future purchases

Advantages

  • customers feel they are getting better value for money, which attracts new customers
  • it can encourage repeat purchases

Disadvantages

  • discounts offered by money-off vouchers can reduce profits
  • some customers will only spend up to the value of the money-off voucher, limiting sales
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16
Q

What are loyalty schemes,

And what are the advantages and disadvantages?

A

-allow customers to collect points by making purchases, which can then be exchanged for discounts or free products in the future

Advantages

  • information on customer habits and preferences can be gathered
  • promotions can be targeted to reflect actual customers preferences

Disadvantages

  • customers can be wary if they feel the scheme will be difficult to set up or opt out of
  • these are time consuming and expensive to implement
17
Q

What is interest-free credit,

And what are the advantages and disadvantages?

A

-retailers offer customers credit to pay goods at a later date

Advantages
-allows customers to purchase products and then pay for they when they can afford to

Disadvantages
-this can lead to bad dept if many customers are unable to pay by the agreed date

18
Q

What are free trials/sample packs,

And what are the advantages and disadvantages?

A

-services like Netflix and audible offer a free trail for a month. New products are given away as a sample

Advantages

  • customers can try the product and if they like it, will purchase at full price
  • word of mouth can spread fro, customers enjoying free trails or samples

Disadvantages

  • some customers will only use the free trial, which will cost the Business with no return
  • it is possible for customers to use the free trail multiple times
19
Q

What are competitions,

And what are the advantages and disadvantages?

A

-businesses can use competitions to encourage customers to buy in order to take part

Advantages

  • can encourage repeat custom as customers try to win or collect more tokens
  • can create hype and excitement around a product, which can lead to new custom

Disadvantages

  • prizes can cost substantial amounts of money
  • the associated marketing costs of the competitors can be high and often packaging has to be redesigned
20
Q

What are trade shows and events,

And what are the advantages and disadvantages?

A

-attending industry trade shows or events such as the royal highland show to give out samples and engage with the public

Advantages

  • feedback from customers can be gained
  • giving out merchandise can spread word/images of the brand

Disadvantages

  • some shows have very high rates for a stall
  • large quantities of free goods have to be given away for maximum impact
21
Q

What are public relations? And what do some larger businesses have?

A
  • Public relations (PR) is the act of controlling the image of a business that is perceived by the public
  • some larger businesses have their own dedicated PR department
22
Q

What is the main aim of the public relations department?

A
  • to build awareness of the brand

- create a positive imagine for the organisation

23
Q

What methods are used by the PR to improve the image of the organisation?

A
  • press conferences
  • press releases
  • donations to charities
  • sponsorship
  • company visits
  • promotional merchandise
  • product endorsement
  • product placement
24
Q

What are press conferences,

And what are the advantages and disadvantages?

A

-the media are invited to a business presentation, where they are given information or news. A new or updated product might be launched

Advantages

  • businesses can send a message or update out to a wide audience while keeping control, to a certain extent, of what is reported
  • it can help to get the media ‘on side’ and allows the press the opportunity to ask questions to the business directly

Disadvantages

  • could have to face difficult questions and be put on the spot
  • the business could end up making the situation worse in front of the press if they are under-prepared
25
Q

What are press releases,

And what are the advantages and disadvantages?

A

-The media are provided with a written account of a businesses newsworthy activities or events. Updated mission statements may also be released to the media

Advantages

  • this can be used to counteract bad publicity
  • businesses can send out messages or updates without being subject to further questioning

Disadvantages
-can take a long time to ensure wording is perfect, especially if the business is already under pressure due to a mistake

26
Q

What are donations to charities,

And what are the advantages and disadvantages?

A

-some businesses donate to charities anonymously, while others will take the opportunity for a good public relations event

Advantages

  • promotes the CSR aims of the business and can make them seem ethical
  • this can help the business achieve a positive Image

Disadvantages
-some shareholders may prefer money is invested in growing the business

27
Q

What is a sponsorship,

And what are the advantages and disadvantages?

A

-some businesses pay to sponsor an event, team or venue. This is popular in the sporting industry.

Advantages

  • businesses can benefit from the successes of those that they sponsor
  • this can help businesses to become popular with customers who visit/support the sponsored event, team or venue

Disadvantages

  • it can cost a lot to sponsor big events
  • if an event or team suffers bad PR itself then the business will be associated with it
28
Q

What are company visits,

And what are the advantages and disadvantages?

A

-businesses may choose to open up their factories to the public for a limited period

Advantages
-customers are able to get a sense of what the business is like and how it is run

Disadvantages
-a dedicated staff member or team will have to show visitors around, affecting their productivity elsewhere

29
Q

What is promotional merchandise,

And what are the advantages and disadvantages?

A

-this is giving out free stationery, key rings, even items like golf balls with the complaint logo and contact info on them

Advantages

  • customers are reminded of the company each time they use the item
  • everyone likes a free gift! Customers feel rewarded and are more likely to return to the business
  • merchandise such as pens can be passed on to other people which means repeat exposure to the brand name

Disadvantages

  • merchandise can be expensive to provide and has no immediate return
  • cheap-looking free gifts can adversely affect the image of the business, even if they are given out for free
30
Q

What is product endorsement,

And what are the advantages and disadvantages?

A

-product endorsement involves businesses using celebrities (also known as celebrity endorsement) to promote the product

Advantages

  • the use of a celebrity will make consumers who like the celebrity more likely to purchase the product to be like them
  • the product will be advertised for free every time the celebrity is spotted wearing or using it in public
  • if a celebrity gets good media coverage (eg winning a sports event), it will provide positive exposure for the product they are associated with
  • higher prices can be changed as the use of a celebrity gives the product exclusivity
  • Brand loyalty can be created for as long as the celebrity is involved in the endorsement

Disadvantages

  • some consumers can be put off a product if they don’t like the celebrity that has been chosen to endorse it
  • if a celebrity gains bad publicity it will tarnish the image of the products they are associated with
  • it can be very expensive to pay celebrities to endorse products
  • poor performance by celebrities will result in lower sales of the products they indorse
31
Q

What is product placement,

And what are the advantages and disadvantages?

A

-product placement involves businesses paying for products to appear in films, TV shows, or video games.

Advantages

  • awareness of products is generated, often ti worldwide auidences
  • it is a form of subliminal advertising, the audience doesn’t know they are watching a promotion, they just watch the film
  • products that can be identified with character who customers like, can result in sales, as they want to be like the character or the actor who plays them
  • merchandise ‘spin-offs’ can be sold, increasing sales on the back of a successful placement

Disadvantages

  • the time of exposure can be very short, limiting the chances of consumers remembering the product they have seen
  • often as a result of bidding wars with rival brands to secure the rights to appear in films, tv shows and games, product placement can cost a lot of money
  • consumers may be put off certain products if they are associated with characters they don’t like
  • products can appear as part of a negative storyline which can put customers off
32
Q

What are the factors affecting methods of promotion?

A
  • the target market
  • the finance availability
  • the marketing mix
  • ethical practices
33
Q

The target market

A

Businesses should promote their products in places where they are likely to be seen by the target market. Market research feedback will help with this.

34
Q

The finance availability

A

Every business would love to advertise at half time during the World Cup final but only the biggest marketing budgets will stretch to this

35
Q

The marketing mix

A

All elements of the marketing mix should work in synergy. This means the methods are more effective when combined seb though they work well as stand-alone elements

36
Q

Ethical practices

A

Promotions should be ethical in order to avoid upsetting others. Eg promotions should not:

  • mislead customers
  • be indecent
  • make false claims designed to harm the competition

Higher Business- Marketing (10 decks)

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