2.2 Making Marketing Decisions PT 2

Question 1

Why do businesses advertise?

Answer 1

To:
- promote the brand
- raise awareness of a product
- remind customers how great a product is
- persuade customers to switch

Question 2

Where do businesses advertise?

Answer 2

• Websites: cheapest, 24/7
• print media: national newspapers, local newspapers, magazines
• TV: largest but most expensive
• Radio: cheaper, have specific audience + can target the right customers

Question 3

What are the types of promotion?

Answer 3

• sponsorships
• product trial
• advertising
• special offers
• branding

Question 4

Define sponsorship

Answer 4

When a business sponsors something, they are establishing a connection with another organisation or event. The connection must make sense to the customers and enhance the reputation of the brand

Question 5

Define product trial

Answer 5

A product sold inna small area to see if customers like it. NOT a free sample.

Question 6

How do businesses use technology in their promotion?

Answer 6

• viral marketing
• social media
• E-newsletters

Question 7

What is viral marketing?

Answer 7

A strategy where businesses use online platforms to promote their products by creating content at specific times, which can easily be shared and commented on. People start to spread your message for you

Question 8

How do businesses promote through social media?

Answer 8

They create accounts on social media apps and interact with their customer base. They also make deals with influencers to promote their products

Question 9

What is are the advantages of social media marketing?

Answer 9

• free or low cost –> cost effective
• customers can be kept informed about new products
• increases customer engagement
• can show customer service through quick responses
• provide a web presence which can build branding

Question 10

What are the disadvantages of social media marketing?

Answer 10

May also go viral for negative reasons, which will ruin their image

Question 11

What does ‘place’ refer to in the marketing mix?

Answer 11

How a busines gets its product to the customer

Question 12

Define channel of distribution

Answer 12

How the products get from the producer to the customer

Question 13

Define e-tailer

Answer 13

A business which sells goods directly to the customer via the internet

Question 14

Define retailer

Answer 14

A business that sells goods directly to customers through a physical store

Question 15

What are the advantages of a retailer?

Answer 15

• employees available in store that could help the customers
• customers can have the product as soon as they have bought it - instant satisfaction
• retailers win when a customers needs to see, touch, try or test a product first

Question 16

What are the disadvantages of retailers?

Answer 16

• may charge higher prices than e-tailers due to higher costs
• retailers are only open during the day and customers may be too busy with work or the family
• customers may have to wait in a queue or carry heavy bags of shopping

Question 17

What are the advantages of e-tailers?

Answer 17

• can be started utg a smaller investment as no premises and less staff needed
• can sell a much larger range than a physical store
• can undercut competitors by being cheaper (no shops, less staff)
• lots of potential to grow rapidly and reach a global marketplace
• lower fixed costs as no shops to pay rent on

Question 18

What are the disadvantages of e-tailers?

Answer 18

• hard to establish trust with the customer as no face-to-face interaction
• website costs can be high
• security and fraud for online transactions are an issue
• only as strong as your distribution/ delivery, if this is late them it may damage your reputation