Promotion

Question 1

What is Promotion?

Answer 1

Promotion is the attempt to draw attention to a product and thereby gain and retain customers.

This can be done through various forms of media

Question 2

Objectives of Promotion

Answer 2

• To provide potential customers with readily available information about the product
• To increase sales or market share
• To establish brand identity

Question 3

Phases that a customer goes through to buying the product

Answer 3

Being unaware of the products existence

Awareness of the products existence

Understanding of the benefits of the product

Establishing a liking for the product

Finally, the purchase of the product

Question 4

Types of Promotion - Above the line

Answer 4

Above the line promotion is what is generally called advertising. It is used to reach a mass audience.

It is carried out through various independent media - TV, magazines, newspapers, radio, posters and social media.

Choice of media used depends on a number of factors

• target market
• cost
• reach of the media (who reads magazines)
• product itself

Question 5

Types of promotion - Below the line promotion

Answer 5

Below the line promotion offers a wide range of alternative promotional strategies and these are often used to support above the line promotion.

Below the line promotion targets consumers directly

Eg. - personal selling
- packaging
- direct mailing
- public relations

Below the line promotion is used only for short-term periods. However, personal selling plays a long term role in establishing customer relationships.

Question 6

Factors impacting on the promotional strategy

Answer 6

• Product differentiation - role of promotion is to differentiate its products in the market
• Budget available
• Target Market - eg younger generation would be targeted via internet
• Stage in the product life cycle - ie during the introduction stages there may be a more informative approach