promotion Flashcards
what is promotion
The attempt, through various forms of media, to draw attention to a product and thereby gain and retain customers.
What are some objectives of promotion?
- Increase sales/revenue
- raise awareness
- target specific groups
- beat the competition
- develop/improve company image
How does promotion help increase sales/revenue?
- By obtaining new customers and retaining existing ones
- satisfying shareholders
Why is raising awareness important in promotion?
Some potential customers may not have heard of products, and existing customers may be unaware of new products.
How does promotion help target specific groups?
By aiming promotion at specific sub-groups to encourage sales of particular product
How does promotion help beat the competition?
By persuading customers to switch to purchasing the business’s products, increasing market share.
How does promotion develop/improve the company image?
By raising brand awareness and giving people confidence in the company’s products
What is above-the-line promotion?
Promotion through independent, mass media, which is indirect and allows a business to reach a wide/large audience
Examples of above-the-line promotion methods.
(Regional) television
- (local) newspapers
- (local) magazines
- billboards
- cinema
Advantages of above the line promotion
- reach large audience
- enhance brand image
negatives of above the line promotion
- less targeted (wasted resources)
- expensive
- difficult to measure effectiveness
what is below the line promotion
A wide range of alternative promotional strategies that target consumers directly
Examples of below-the-line promotion methods.
- direct emailing
- personal selling
- sampling at relevant place e.g. new food at supermarkets
positives of below the line
- cost effective
- greater engagement -> customer loyalty
- provide details to consumers
negatives of below the line
- limited reach
- time consuming
