Promotion

Question 1

Key purposes of promotion

Answer 1

To build a positive relationship with the target market

To encourage customers to purchase the products from the business

Question 2

Outcomes of promotion

Answer 2

Increase in sales/revenue 
Increase in customers 
Repeat purchases 
Expansion 
Survival 
Financial stability 
Increase profit 
Increase costs

Question 3

Methods of promotion

Answer 3

Advertising 
Sales promotion 
Personal selling 
Direct marketing 
Public relation (PR)

Question 4

The message

Answer 4

What the communication needs to say

Question 5

The medium

Answer 5

How to get the message across

Question 6

Advertising

Answer 6

Moving image and video 
Print 
Ambient 
Digital 
Audio

Question 7

Sales promotion

Answer 7

Coupons 
Competition 
Money off or discounts 
Loyalty schemes 
Free samples 
Buy one get one free

Question 8

Purpose of sales promotions

Answer 8

To boost sales figures
To entice people to come into the business/target market to buy the product
To attract first time customers to the business
To encourage people to try a new product
To clear old stock or goods that are close to sell buy date

Question 9

Personal selling

Answer 9

A promotion where a representative of a business will contact potential customers directly (they will try use their interpersonal skills to persuade potential customers to buy their product)

Question 10

Advantage of personal selling

Answer 10

Personal and direct
Demonstrates the products
Able to answer questions

Question 11

Disadvantage to personal selling

Answer 11

More staff needed
Staff need training
Poor sales people could put customers off

Question 12

Methods of personal selling

Answer 12

Face to face
Telephone
Email
Video or web conferencing

Question 13

Advantages of advertising

Answer 13

Introduce new or improved product into the market
Expansion of the market 
Increased sales/revenue/profit 
Fights competition 
Educates customers

Question 14

Disadvantage to advertising

Answer 14

Adds to costs
Confuses buyers sometimes
Bad adverts may offend, undermines social values, loose customers

Question 15

Advantages of sales promotion

Answer 15

Creates differentiation
Word of mouth
Reason to buy
Increase sales

Question 16

Disadvantage of sales promotion

Answer 16

Short term (so boost of sales are short period)
Quality image tarnished

Question 17

Direct marketing purpose

Answer 17

Business can communicate directly with customers to try sell something (personal information)

Question 18

A business will use direct marketing to…

Answer 18

Build a relationship with customers

Inform customers of new products

Question 19

Methods of direct marketing

Answer 19

Post
Telephone
Digital

Question 20

Advantages to direct marketing

Answer 20

Helps build relationships with customers
Tests appeal of products or service
Increase sales/revenue/profit
Tells which marketing approach reach your target market
Reach audience with a personal touch
Can send specific messages particularly groups

Question 21

Disadvantages of direct marketing

Answer 21

Intrusive=annoying, people dislike marketing mail 
Environment=using leaflets or paper 
Low response rates=1-3% waste of money 
Competition 
Cost 
Legal issues

Question 22

Public relations (PR)

Answer 22

Involves promoting the business by releasing information to the media
It involves managing the image of the enterprise and links to the brand image
Encourages positive publicity through the media
Encourages the target market to have positive views

Question 23

Methods of PR

Answer 23

Press release
Exhibition
Sponsorships

Question 24

Advantages of PR

Answer 24

Some methods free
A positive story will reach a wider audience
Can improve business reputation and sales
People tend to believe/pay attention to the media more

Question 25

Disadvantage of PR

Answer 25

Hard to control as it’s presented by the news/magazine/news channel
No guarantee the story will be published
Negative headline can damage reputation/brand image