Promotional decisions + Place

Question 1

Factors that influence promotional decisions (4)

Answer 1

1. The target audience
2. The promotional budget
3. The message
4. Technology (much more effective: with google adverts the business can ensure that promotion only appears if people enter certain search terms, regions, times and on what type of device. Can be measure through CTRs - click through rates -> gives more measurable results)

Question 2

CTRs -

Answer 2

(click through rates) - measures how many people click through an advert to a company’s website once it appears on their screens

Question 3

Viral marketing -

Answer 3

• marketing technique that uses social media and networks to raise brand awareness and boost sales by getting users to recommend the promotional campaign to others

Question 4

Promotional mix (5)

Answer 4

1. Promotional budget
2. Target market
3. The message
4. Positioning
5. Competitive environment

Question 5

Brand -

Answer 5

• represents a promise made by a business to provide a specific set of benefits

Question 6

Brand (10)

Answer 6

1. Brands represent certain values and so buying the branded product will deliver a certain set of features and services
2. Consumers think if they want to be associated with a specific brand
3. Brands are recognised by name, logos/symbols, slogans or anything else that is used to identify and distinguish it from the competition
4. Brand has a promise of an experience
5. What the brand stands for, what it represents and what it means to a customer
6. These values can increase brand loyalty
7. Brand might convey: exclusivity, excellence of customer service or ethics
8. It is, therefore, a reputational asset and has value to a business
9. The values are not created immediately and the associations and trust tend to build up over time
10. Not safe forever -> can be damaged if something happens that conflicts with its values

Question 7

If a brand is strong (4)

Answer 7

1. Demand is likely to be more price inelastic
2. Customers might become brand ambassadors, telling others and it and getting them them to try the product range
3. Customers might be more open to other products launched under the same brand name
4. It may be difficult for other brands to enter the market or gain market share

Question 8

Promotion -

Answer 8

• a marketing tool, used as a strategy to communicate between the sellers and buyers

Question 9

Merchandising -

Answer 9

• a business that purchases products from other companies to resell them to consumers

Question 10

Advertising -

Answer 10

• means of communication in which a product, brand or service is promoted to a viewership in order to attract interest, engagement, and sales

Question 11

Direct marketing -

Answer 11

• the business of selling products or services directly to the public, e.g. by mail order or telephone selling, rather than through retailers

Question 12

Public relations -

Answer 12

• managing how others see and feel about a person, brand, or company

Question 13

Sales promotions -

Answer 13

• a marketing strategy in which a business uses a temporary campaign or offer to increase interest or demand in its product or service

Question 14

Above the line media -

Answer 14

• mass audience advertising and promotional campaigns

Question 15

Below the line media -

Answer 15

• an advertising strategy where products are promoted in media other than mainstream radio or television

Question 16

Digital marketing -

Answer 16

• the use of digital channels to market products

Question 17

Social media -

Answer 17

• the use of social media—the platforms on which users build social networks and share information—to build a company’s brand, increase sales, and drive website traffic

Question 18

Branding -

Answer 18

• the process of creating a distinct identity for a business in the minds of your target audience and the general population

Question 19

Brand extensions/brand stretching -

Answer 19

• when a company uses one of its established brand names on a new product or new product category

Question 20

Distribution decisions depend on (5)

Answer 20

1. Degree of coverage
2. Costs of different distribution strategies
3. Nature of the product - convenience items need to be widely distributed while specialty goods sold directly to the customers
4. Degree of control over price and promotion in intermediates
5. How customers expect to access the product and what tech allows a business to deliver (multichannel distribution - shoppers want to access a product in many ways)

Question 21

How can shoppers access the product (3 + conclusion)

Answer 21

1. Supermarkets
2. More local city stores
3. Online
   => many business have to be more flexible with distribution to match the demands of the customers

Question 22

E - commerce -

Answer 22

• the buying and selling of product through an electronic medium such as internet