Section Three - Marketing Decisions - Marketing Mix (promotion)

Question 1

What is promotion designed to do?

Answer 1

1) Promotion is designed to inform customers about a product or service, or persuade them to buy it. Industrial promotion tends to be informative, whereas consumer promotion tends to be persuasive.

Question 2

What are key aspects of Promotion?

Answer 2

• Advertising
• Branding
• PR

Question 3

What are the types of ads

Answer 3

• Tv ads
• Digital ads (Online ads, Mobile phone, Viral marketing)
• Specialist ads

Question 4

Explain how can branding can help differentiate a product from competitors?

Answer 4

1) If a business convinces customers that their brand is superior to others, they can charge a premium price.
2) Customers often remain loyal to a brand as they have confidence in its quality. New products launched under the same brand will often be accepted more readily, without much being spent on promotion.
3) Packaging is important to distinguish the product, e.g. the Coca-Cola® bottle. This is more true for some products than others, e.g. fancy chocolates need attractive packaging, but bulk orders of printer toner don’t.
4) Popular brands often eliminate competition and deter new competitors. If there are no alternative products, then the price will become inelastic and can be increased without reducing demand much.
5) Some brand names have an ethical or environmentally-friendly image. The companies behind them aim to appeal to consumers concerned about these issues.

Question 5

What other promotion is there that doesn’t just include advertising, branding and PR?

Answer 5

• Sales promotions, special offers
• Merchandising
• Direct mail
• Personal selling (salespeople to customer
• Relationship marketing (trying to attract long term customers), eg special offers or loyalty cards.
• Event sponsorship
• Direct Response TV Marketing (teleshopping)

Question 6

What is PR?

Answer 6

It involves liaising with the media, writing press releases, and answering press enquiries