The marketing strategy: Promotion

Question 1

Advertising elasticity of demand AED

Answer 1

• It shows the extent to which spending on advertising will affect sales
• percentage change in demand / percentage change in advertising spend

Question 2

How to interpret results of AED

Answer 2

• Over 1 = elastic in relation to advertising spending (responsive)
• between 0 and 1 = inelastic in relation advertising spending (not responsive)
• 1 = response equals advertising spend
• 0 = no change in sales
• Bellow 0 = this would mean that as you spend more on advertising, your sales actually decrease

Question 3

Promotion

Answer 3

The collection of techniques used to inform and persuade consumers to buy a product or service

Question 4

Above the line

Answer 4

Promotion which uses media where there is no direct contact with the potential buyer

Question 5

bellow the line promotion

Answer 5

Promotion where the business comes into direct contact with the potential buyer

Question 6

Television promotion Pros/Cons

Answer 6

• reaches a mass audience, exposing more people to the product
• the visual / sound aspect are easy to remember
• very expensive in comparison to other mediums

Question 7

Billboards pros & cons

Answer 7

• tend to be placed by roads
• high impact but limited info
• more cost affective
• less people are exposed as they are static

Question 8

Radio

Question 9

Radio pros

Question 10

Radio cons

Question 11

Magazines

Question 12

Magazines pros

Question 13

Magazines cons

Question 14

Cinema

Question 15

Cinema pros

Question 16

Cinema cons

Question 17

Sponsorship

Question 18

Sponsorship pros

Question 19

Sponsorship cons

Question 20

Newspapers

Question 21

Newspapers pros

Question 22

Newspapers cons

Question 23

Personal selling

Answer 23

Where there is a direct link between sales person and the customer. Includes sales assistants, door-to-door sales and telesales (phone)

Question 24

Personal selling pros

Answer 24

• Cost affective.
• Exposure is guaranteed.
• Targeted and personal towards the business its aimed at.
• Build a better relationship with customers.
• Easier to find out info and usually sales people are knowledgable (customer point of view).
• More convenient for the customer
• Easier to judge affectiveness of it

Question 25

Personal selling cons

Answer 25

• increased competition
• higher overall costs (travel & lodging costs)
• very time consuming
• very limited exposure
• high training cost
• high set up cost

Question 26

Trade fairs

Answer 26

An exhibition at which businesses in a particular industry promote their products and services.

Question 27

Trade fairs pros

Answer 27

• raise awareness
• meet in person
• helps generate brand awareness
• better relationships with customers
• targeting the market

Question 28

Trade fairs cons

Answer 28

• High cost (travel / set up / accommodation)
• close proximity to competitors
• turnout may be low

Question 29

Email

Answer 29

Duh

Question 30

Emails pros

Answer 30

• very cheap
• fast
• wide outreach
• environmentally friendly
• can get a lot of info on it
• can be very visual
• can lead onto other meathods

Question 31

Email cons

Answer 31

• can go to junk
• easily ignored
• removes the personal aspect of the selling
• can be misinterpreted

Question 32

Telesales

Answer 32

Selling of goods / services over the phone.

Question 33

Telesales pros

Answer 33

• low overhead costs
• extend business reach
• work from home
• can create resentment from customers
• quality staff cost more
• not everyone answers
• misinterpretation

Question 34

Product sampling

Answer 34

As it says on the tin

Question 35

Product sampling pros

Answer 35

• customers can try the product
• helps build customer relationships

Question 36

product sampling cons

Answer 36

• No guarantee of sales
• loosing money on it
• targeting right people is difficult

Question 37

Leaflet distribution pros

Answer 37

• cheap to produce
• very visual
• target customers directly
• can mass market

Question 38

Leaflet distribution cons

Answer 38

• high rejection rate
• not very cost affective
• not that targeted

Question 39

Social media

Answer 39

Duh

Question 40

Social media pro

Answer 40

• Cost effective
• customer interaction more personal
• social media presence can boost traffic to a businesses website
• target audience reached by platforms they’re e likely to use
• success is easy to measure
• advertising is constant

Question 41

Social media cons

Answer 41

• reasources will have to be dedicated to creating / posting the content as well as responding to customer feedback
  -brand reputation may be damaged from inappropriate posts, failing to reply to customers & not engaging with customers
• business may become negatively affected by influencer controversy

Question 42

Brand

Answer 42

A name, sign, symbol, design or slogan linked to a particular product or service in order to differentiate from competition

Question 43

Viral marketing

Answer 43

Th use of social media sites to increase brand awareness, and is so called because the advert will be shared like a computer virus

Question 44

Social media facts

Answer 44

• social media users in the uk = 45million
• social media with highest members = facebook
• two male & female groups that use facebook the most = 25-34 & 35-44
• most engaging content on facebook = videos
• % of users that follow a brand on instagram = 80%

Question 45

Viral marketing

Answer 45

The use of social media sites to increase brand awareness, and is so-called because the advert will be shared like a computer virus.

Question 46

Drip marketing

Answer 46

• A automated process that sends a set of messages(usually emils) to customers to move them through the sales cycle
• e.g. “new in season”, “complete your shopping” emails.
• when a consumer subscribes to a emailing list, they will receive multiple emails.
• e.g. welcome emails, communicating new stock, reminding them they have items in their baskets. Etc