Marketing - Promotion

Question 1

3 Into the pipeline promotions

Answer 1

• trade credit
• sale or return
• dealer loaders

Question 2

Trade credit

Answer 2

+ can pay for materials once goods sold
+ no cash required good for struggling businesses
- could lead to bad debt

Question 3

Sale or return

Answer 3

+ allows retailers to try new products without risk
+ improves cash flow
- products may be returned in poor condition

Question 4

Dealer loaders

Answer 4

+ can save on the unit cost of products
+ can lower price for customers
- may overstock and unable to sell
- might go out of date or fashion

Question 5

3 Out of the pipeline promotions

Answer 5

• special offers
• loyalty schemes
• interest-free credit

Question 6

Special offers

Answer 6

+ encourage customers to try new products

- may buy too much and lead to waste

Question 7

Loyalty schemes

Answer 7

+ information on customer habits and preferences
+ target promotions
- expensive to implement

Question 8

interest-free credit

Answer 8

+ widens market segment as customers can pay later

- could lead to bad debt

Question 9

Methods of PR

Answer 9

• press conferences
• donations to charities
• sponsorship

Question 10

Press conferences

Answer 10

+ business can send out a message of their choice
+ allows press to question business directly
- could face difficult questions
- could make situations worse if under-prepared

Question 11

Donations to charities

Answer 11

+ can help the business achieve a positive image

- some shareholders prefer money invested in business

Question 12

Sponsorship

Answer 12

+ benefit from success of those they sponsor
+ makes business popular with customer supporters
- cost a lot £15m for Virgin London marathon
- bad PR from sponsored effects business