Marketing Mix - Promotion

Question 0

What are the 2 types of promotion?

Answer 0

Informative - To increase consumer awareness of the product and its features

Persuasive - To encourage consumers to purchase the product

Question 1

Define promotion

Answer 1

The process of communicating with customers or potential customers. Promotion can also be described as communicating with other interested groups e.g shareholders and suppliers.

Question 2

What are the aims of promotion?

Answer 2

AIDA

Attention - Improve awareness of the business name and products/services

Interest - To make the consumers want to find out more after hearing the brand name repeatedly

Desire - Provide the consumer with specific reason to buy a product/service.

Action - Conversion of the desire to the action of buying, through point-of-sale displays, special offers and competition entries

Question 3

Define ‘promotional mix’

Answer 3

The coordination of the various methods of promotion in order to achieve overall marketing targets

Question 4

Define ‘public relations’ (PR)

Answer 4

Gaining favourable publicity through the media

Question 5

Define ‘branding’

Answer 5

The process of differentiating a product/arrive from its competitors through the name, sign, symbols, design or slogan linked to the product/service.

Question 6

Define ‘merchandising’

Answer 6

Attempts to persuade consumers to take action at the ‘point of sale’(PoS) / ‘point of purchase’ (PoP).

Question 7

Define ‘sales promotions’

Answer 7

Short-term incentives used to persuade consumers to buy a particular product.

Question 8

Define ‘direct selling’

Answer 8

The process of communicating directly to the individual consumer through an appropriate form of communication e.g post or telephone.

Question 9

Define ‘advertising’

Answer 9

The process of communicating with customer or potential customers through specific media e.g tv and newspaper.

Question 10

Define ‘cost per thousand’ (CPT)

Answer 10

An indicator used commonly in the advertising industry to assess and compare the expense of different forms of promotion.

Question 11

What are the 4 main forms of direct selling?

Answer 11

1. Direct mail - e.g loyalty cards which gain consumer habits enables businesses to target direct mail offers specific to the customer.
2. Telephone - People are more reluctant to be rude to a caller and likely to answer so can be successful. Although it’s a technique resented by many customers.
3. Door-to-door drops - Promotions delivered directly to houses and can be highly cost effective.
4. Personal selling - Individual sells person can be valued for their expertise and details e.g when buying a house or car

Question 12

Name some of the main types of media used for advertising

Answer 12

Television 
Radio 
Cinema 
National newspaper 
Posters
Magazines 
Internet (electronic media 
Regional newspapers

Question 13

Name 3 factors which influence the choice of the promotional mix

Answer 13

1. Objectives of the campaign
2. Costs and budgets
3. Target market
4. Balance of promotions in a campaign - planned with other types of promotion to maximise effectiveness.
5. Legal factors - restrictions
6. External factors - e.g wealth of country, social and political environment.