promotion

Question 1

promotion

Answer 1

• attempt to draw attention to a product to gain and retain customers

Question 2

objectives of promotion

Answer 2

• 𝐢𝐧𝐜𝐫𝐞𝐚𝐬𝐞 𝐬𝐚𝐥𝐞𝐬 - increase business revenue - obtain new customers, retain existing => satisfy SH - create retained profits for investments
• 𝐫𝐚𝐢𝐬𝐞 𝐚𝐰𝐚𝐫𝐞𝐧𝐞𝐬𝐬 - introduce product to unaware customers - possibly gain customer loyalty
• 𝐭𝐚𝐫𝐠𝐞𝐭 𝐬𝐩𝐞𝐜𝐢𝐟𝐢𝐜 𝐠𝐫𝐨𝐮𝐩𝐬 - encourage sales
• 𝐭𝐫𝐲 𝐚𝐧𝐝 𝐛𝐞𝐚𝐭 𝐜𝐨𝐦𝐩𝐞𝐭𝐢𝐭𝐢𝐨𝐧 - persuade customers to switch - increase market share
• 𝐝𝐞𝐯𝐞𝐥𝐨𝐩/ 𝐢𝐦𝐩𝐫𝐨𝐯𝐞 𝐛𝐮𝐬𝐢𝐧𝐞𝐬𝐬 𝐢𝐦𝐚𝐠𝐞 - raise brand awareness
• 𝐫𝐞𝐚𝐬𝐬𝐮𝐫𝐞 𝐜𝐮𝐬𝐭𝐨𝐦𝐞𝐫𝐬 𝐚𝐟𝐭𝐞𝐫 𝐩𝐮𝐫𝐜𝐡𝐚𝐬𝐞 - build confidence in product - hopefully purchase again

Question 3

choice promotional media depends on:

Answer 3

• 𝐭𝐚𝐫𝐠𝐞𝐭 𝐦𝐚𝐫𝐤𝐞𝐭
• 𝐭𝐲𝐩𝐞 𝐨𝐟 𝐩𝐮𝐫𝐜𝐡𝐚𝐬𝐞 - impulse buy or informed choice
• 𝐜𝐨𝐬𝐭 & 𝐬𝐢𝐳𝐞 𝐨𝐟 𝐛𝐮𝐝𝐠𝐞𝐭
• 𝐫𝐞𝐚𝐜𝐡 𝐨𝐟 𝐦𝐞𝐝𝐢𝐚 - who sees/reads/watches

Question 4

above the line

Answer 4

• generally called advertising
• indirect
• targets mass audiences
• 𝗶𝗻𝗱𝗲𝗽𝗲𝗻𝗱𝗲𝗻𝘁 𝗺𝗲𝗱𝗶𝗮:
  => tv - large audience - expensive (regional)
  => newspaper - cheap - ignored (local)
  => radio - cheap - limited coverage & audience (local)
  => billboards - eye catching - easily missed

Question 5

below the line

Answer 5

• targets directly
• persuades customers
• short-term periods => offers & promotions
• establish relationship with customer
  𝗱𝗶𝗿𝗲𝗰𝘁 𝗺𝗲𝘁𝗵𝗼𝗱𝘀:
• direct mailing - targeted - easily ignored
• personal selling
• flyers - provide detail & cheap - thrown away
• packaging
• sales promotions - discounts

Question 6

factors that impact promotional strategy

Answer 6

• product differentiation
• marketing budget
• product life cycle stage
• cultural sensitivity
• target market
• competitor actions