4.5 Promotion and place Flashcards Preview

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Flashcards in 4.5 Promotion and place Deck (11)
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1
Q

Define promotion

A

Use of advertising to inform and persuade consumers

2
Q

Objectives of promotion

A

Change or enhance brand image
Raise sales
Encourage retailers to stock the product

3
Q

Define above the line promotion

A

Promotion directly paid for by the company to communicate with consumers through media
Tends to be costly
e.g. TV, radio, internet

4
Q

Define below the line promotion

A

Promotion that is not directly paid for by the company
Short term incentives to purchase
E.g. Price promotion, loyalty cards, buy one get one free, coupons, prizes, free samples

5
Q

Pros of below the line promotion

A

No Direct Cost involved - Cheaper in the short run
Current customers more likely to stay
Get customer spending patterns

6
Q

Pros of above the line promotion

A

Reach larger audience
More likely to appeal to new customers
No long run costs

7
Q

Pros of technological promotion

A
Can reduces cost
Easier to target – websites gather personal data
Interactive
Data – e.g. % click on link
Speed
8
Q

Cons of technological promotion

A

Skills and Employees required
Time consuming to maintain online presence
Negative feedback made public
Security issues - Ethics

9
Q

Importance of place

A

Customers
Customers can see, try and buy
Can return if necessary
After-sales service

Manufacturers
Need places to sell their products
That create the right image

Retailers
Need to make a profit
Is there enough profit margin for a retailer?

10
Q

Define retailer

A

Business selling small quantities direct to consumers

E.g. Car showrooms, fruit + veg shops, supermarket

11
Q

What are the three distribution channels

A

Single intermediary channel
Manufacturer–retailer–consumer

Direct selling
Manufacturer–consumer

Two-intermediary channel
Manufacturer–wholesaler–retailer–consumer