Promotion Flashcards
What’s above the line promotion?
Mass media advertising to engage with a large number of consumers, included adverts in prints, online and digital. E.g. TV adds, newspapers/magazines, websites, radio, etc.
Discuss the advantages and disadvantages of ATL promtion.
Advantages-
Often advertisement design is outsourced to advertising agencies meaning high quality adverts.
Adverts can reach very wide audience across many market segments.
Disadvantages-
The business doesn’t have direct control over which consumers their products are advertised too.
ATL is very expensive due to paying for adverts to be produced by experts and for the mass media to carry them.
What’s below the line promotion?
Does not use the media, often targets specific consumers or involves direct contact with the target market. Included all special offers. E.g. Leaflets, direct selling, email campaigns, product demonstration, text messaging, competition, loyalty cards, etc.
Discuss the advantages and disadvantages of BTL promotion.
Advantages-
Business have more control over the customers that adverts are aimed at.
BTL is more affordable so is more suitable for smaller businesses.
Disadvantages-
The impact can often only last for a limited period e.g. A social media post on a business’ social media page.
Some customers dislike BTL methods as they are intrusive e.g. Direct mailing.
Define into the pipeline promotion
Offers from the producers to the wholesalers/retailers to persuade them to stock the product. ( b2b- business to business).
What’s point of sale material (into the pipeline)?
Promotional material provided by the producer and placed at the till point in the shop so that customers see it when they are buying other product and might be tempted into an impulse purchase, this increasing revenue for the retailer.
What’s sale or return (into the pipeline)?
The producer makes an agreement with the retailer that they will take back any stock which the retailer does not manage to sell, thus avoiding the problem for the retailer of spending money on stock which they cannot sell.
What’s staff training (into the pipeline)?
The producer offers training to the sales staff of the retailer so that they can give out accurate information to the customers.
What’s retailer loading (into the pipeline)?
The producer offers a greater number of units e.g. 10 crates for the price of 8, giving the retailer a lower unit cost.
What are free samples (out of the pipeline)?
The retailer offers a sample of a new product to allow the customer to try it for free first, as they may be unwilling to spend money on a new product which they might not like.
What’s a loyalty scheme (out of the pipeline)?
A card offered by a retailer which is scanned at the till at every purchase. This records purchase information for the customer which is then used to send out targeted offers and encourage repeat purchases.
What’s a special offer (out of the pipeline)?
The business offers customers a discount when they buy the product e.g. 3 for 2, special price £1 etc.
What’s a voucher (out of the pipeline)?
The retailer gives the customer money off a future purchase e.g. 20% off next purchase. This is usually targeted towards products the custom r has already bought and is done to create repeat purchase.
Define out of the pipeline promotion
Special offers from the retailer to the customer at the point of sale to persuade them to buy the product.
