promotion

Question 1

How does promotional strategies effect shareholders?

Answer 1

-effective strategies may result in increased awareness, brand loyalty, usp, and purchases. This will lead to a higher amount of profits and dividends that are repaid to them
-promotional strategies can be expensive and this could be hard to gin back, so profits are not seen straight away so there’s no dividends for shareholders.

Question 2

How does promotional strategies effect competitors?

Answer 2

• customers may be loss to the business with successful promotion
  -usp may not be effected and loyal customers may not leave
  -may respond with their own promotion strategies, however this is expensive

Question 3

How does promotion strategies effect customers?

Answer 3

• receive greater product knowledge that allows them to make better purchasing decisions
  -promotions can be persuasive and convince customers to purchase something they don’t need

Question 4

How can promotional strategies effect suppliers?

Answer 4

-more stock orders may be required, however this demand might not be reached

Question 5

What is below the line promotion strategies?

Answer 5

They are used to target consumers directly

Question 6

Name 5 below the line promotional strategies

Answer 6

• personal selling, sales staff within town centres
  -packaging
  -sales promotion, eg two for one
  -direct mailing, send offers to consumers, these are usually in relation to supermarkets so customers know where to purchase them from
  -public relations, media reports and sponsoring events

Question 7

What is above the line promotional strategies?

Answer 7

Promotional methods that cannot be directly controlled by the company selling the goods or service

Question 8

what is the difference between above the line and below the line promtion?

Answer 8

Above the Line, or ATL Marketing, refers to generally untargeted, massive campaigns to raise brand awareness and reach more people; below the Line, or BTL Marketing, refers to the much smaller and highly targeted world of ads, aimed at individuals and with easy to track returns on investment and a definitive audience

Question 9

what is below the line promotional strategies?

Answer 9

-direct mailing
-personal selling
-shop window
-packaging

Question 10

what are objectives of promotion?

Answer 10

-increase brand awareness
-provide customers with readily available information
-give products an image and established brand identity
-to establish image to retailers
-allow Product life cycles to be developed , to gain greater knowledge
-gain confidence in the gain of sales

Question 11

what are advantages of promotion?

Answer 11

-increase loyalty
-establish image
-customers have confidence

Question 12

what are disadvantages of promotion?

Answer 12

-only lasts for a short period of time
-doesn’t guarantee a positive impact
-has hidden costs, it is expensive

Question 13

what is guerrilla marketing?

Answer 13

brands place advertisements in unconventional area or ways to increase brand awareness, it has an element of surprise, to attract target audiences. Its memorable