Unit 19 Marketing Mix ; Promotion and Place

Question 1

Why is promotion an important part of the marketing mix?

Answer 1

Promotion is about communication with the consumers. Therefore effective promotion increases consumer awareness and can create personalities for products that consumers can identify with.

Question 2

What is promotion?

Answer 2

It is the use of advertising, sales promotion, personal selling, direct mail, trade exhibitions, sponsorships and public relations to inform consumers and persuade them to purchase products.

Question 3

Name a few promotional objectives to a business.

Answer 3

• Increase sales by raising consumer awareness of a product, especially for new products.
• Remind consumers of an existing product
• Increase purchases by existing consumers to attract new customers
• demonstrate product specifications and qualities
• reinforce the brand image
• correct misleading reports about the product
  -develop a public image for the business rather than the product

Question 4

What is referred to as the “promotion mix”?

Answer 4

The combination of promotional techniques that a firm uses to sell a product.

Question 5

What is advertising?

Answer 5

This form of promotion is referred to as above-the-line promotion. This is paid for communication with consumers to persuade consumers into buying, often using mainstream media, such as TV, radio, and newspapers.

Question 6

What are the factors affecting the choice of distribution channel?

Answer 6

• Industrial products tend to be sold more directly, with fewer intermediaries than consumer goods.
• The geographical dispersion of the target market.
• Level of service expected by consumers
• Technical complexity of the product
• The unit value of the product, may be worth employing sales staff to direct sell if the price is high such as a 5 million dollar yatch.
  -Number of potential customers.

Question 7

What are the recent trends in distribution channels?

Answer 7

-Increased use of the internet
-Larges supermarket chains perform the function of wholesalers as well as retailers
- Some businesses use a variety of sales distributions channels
- Increasing integration of services where a complete package is sold to consumers. i.e air flights, car hire and hotel accommodation.

Question 8

What is internet marketing?

Answer 8

It refers to advertising and marketing activities that use the internet, email, and mobile communications to encourage direct sales through e-commerce.

Question 9

What is e-commerce?

Answer 9

The buying and selling of goods and services by businesses and consumers through an electronic medium.

Question 10

What are the functions of internet marketing that has an impact on the 4 c’s?

Answer 10

• Selling of goods directly to consumers or other businesses as orders are placed online through a website or an online retailer such as amozon. This is much more CONVENIENT to the consumer.
• Adverts can be targeted at potential consumers and can lead to viral marketing. ( communication )
  -Collecting market research data by encouraging visitors to the website to answer surveys that can provide important consumer data, can help develop new products. ( customer solution)
• Dynamic pricing, using online data about consumers to charge different prices to different consumers over the internet. ( cost to the customer)

Question 11

What is viral marketing?

Answer 11

The use of social media sites or text messages to increase brand awareness or sell products. Perhaps, marketing through “ influencers”.

Question 12

What are the benefits of internet marketing?

Answer 12

• It is relatively inexpensive when compared to the ratio of potential consumers reached
• Companies can reach a worldwide audience.
• Consumers may leave important data about themselves when making purchases.
  -The internet is convenient for consumers to use.
• Accurate records can be kept on the number of consumers reached and the success rate of web promotions can be measured. i.e through Facebook / Instagram ads.
  -computer and smartphone usage is increasing in all countries of the world.
• It lowers fixed costs than traditional retail stores.
• Dynamic pricing - charging different prices to different consumers

Question 13

What are the limitations of internet marketing?

Answer 13

• Some countries have low-speed internet connections,
• Some countries have a low spread of computer use
  -The cost and unreliability of postal services in some countries may reduce the cost advantage of internet selling.
• The website must be kept up to date.
• User-friendly, websites could be expensive to develop.
• Worries about internet security, consumers may suspect who will use information about them, such as their credit card details.