promotion

Question 1

common marketing decisions under promotion include

Answer 1

• Advertising
  
  • Sales promotion
  • Publicity
  • Personal selling
    Viral marketing

Question 2

advertising

Answer 2

This is when a company pays to promote their products on posters, TV, radio, the internet, direct mail and other mass media.

Question 3

pros of advertising

Answer 3

• Ultimate control over the message and timing, flexibility in the medium(s) and used (TV, billboards, radio, a combination)
  
  • Effective in creating awareness due to mass reach
  • Internet advertising is targeted using sophisticated algorithms

Question 4

cons of advertising

Answer 4

• High costs to produce and then purchase airtime
  
  • Uncertainty of effectiveness
  • TV adverts are not as targeted as other forms of promotion
  • TV and newspapers have low exposure among younger customer segments

Question 5

publicity

Answer 5

The (preferably favourable) spread of information by the media about a particular brand; the media may include bloggers, news stories, press conference, publicity stunts, sponsoring, corporate social responsibility activities and organising events and using celebrities as well as new media forms such as podcasts

Question 6

pros of publicity

Answer 6

• Low cost (usually free)
  perceived as more credible than advertising, particularly if aired between news stories

Question 7

cons of publicity

Answer 7

• After airing, control is lost over how the message is used or interpreted (unlike advertising)
  
  • May backfire
  • Cannot be repeated (as opposed to advertising)

Question 8

sales promotion

Answer 8

the process of persuading a potential customer to buy a product through short term incentives.

Question 9

strategies of sales promotion

Answer 9

discount coupons, prizes, free product samples, free giveaways, ‘buy 2 get 1 free’ offers, competitions, access to exclusive events

Question 10

pros of sales promotion

Answer 10

• Effective in boosting sales in the short term
  
  • Can help move old stock
    Useful when introducing a new product to increase first-time use and awareness

Question 11

cons of sales promotion

Answer 11

• Rarely suitable for building long-term customer loyalty as sales drop when the promotion ends
  
  • Using too frequently can cheapen the brands image and reduce the perceives quality and price

Question 12

personal selling

Answer 12

Involves a salesperson a potential buyer or buyers face-to-face to sell a product or service.

Question 13

examples of personal selling

Answer 13

retail stores
door to door
B2B outreach

Question 14

pros of personal selling

Answer 14

• Customer confidence: since it is an interactive form of selling it helps build trust with the customer
  
  • Flexibility: if the company provides sufficient training to the sales personnel, then they can adjust and mould their marketing message or service delivery to meet customers unique needs (unlike advertisement)
  • Detailed demonstration: this allows clear demonstrations of how the product helps customers
  • Two-way communication: important for business feedback from the buyer

Question 15

cons of personal selling

Answer 15

• High turnover of sales staff
  
  • Limited reach: unlike TV or radio ads it does not cover a cast demographic
  • High costs
    The negative image of salespeople

Question 16

viral marketing

Answer 16

A marketing strategy that spreads information and opinions about a product or service from person to person especially by using unconventional means such as the internet, social media or email.

Question 17

pros on viral marketing

Answer 17

• Cheap relative to traditional advertising
  
  • Sends virally
  • Seems more credible as information is transmitted from friend to friend
  • If it is positive, it can create a positive public image
  • ‘breaks through the clutter’ as opposed to TV advertising where there is so much noise from other brands

Question 18

cons of viral marketing

Answer 18

• May go viral for the wrong reasons
  
  • Limited control after spreading
  • It can be a waste of time
  • People can associate a businesses marketing efforts with irritation
  • Difficult to measure success