Chapter 20 - The marketing mix - Promotion and Place Flashcards
(23 cards)
Explain the term “promotion”
Promotion is about communicating with actual or potential customers.
Explain the term “digital promotion”
the promotion of products using digital technologies, mainly on the internet but also including mobile (cell) phones.
State 6 methods of digital promotion
- Social media marketing
- Email marketing
- Online advertising
- Smartphone marketing
- Search engine optimisation (SEO)
- Viral marketing
Explain the term “e-commerce”
The buying and selling of goods and services by businesses and consumers through an electronic medium.
Explain the benefits of digital promotion (7)
- Worldwide coverage
- Relatively low cost
- Easy to track and measure results
- Personalisation
- Social media communication builds customer loyalty
- Content marketing
- Website convenience increases sales
Explain the limitations of digital promotion (4)
- Time-consuming (creating content)
- Skills and training
- Global competition - standing out against large nr of competitors can be difficult and costly.
- Complaints and feedback
Explain the functions of packaging (4)
- protect and contain product
- Give information to consumers about contents, ingredients, cooking instructions, assembly instructions etc.
- support brand image of product created by promotional campaigns
- make product attractive and help consumer recognise it.
Explain the aims of branding (3)
- Aiding consumer recognition
- making the product distinctive from competitors
- Giving the product an identity or personality that consumers can relate to.
Explain the benefits of effective branding (5)
- increases chances of brand recall by consumers
- Clearly differentiates product from competitors, reinforces difference
- allows for establishment of family of closely related products with same brand name
- Reduces the responsiveness of consumer demand to a price increase. Consumers have preference for well-known brands, prepared to pay high price for them
- increases customer loyalty to brands
Explain the term online marketing (e-commerce)
Selling and marketing activities that use the internet, email and mobile communications to encourage direct sakes via electronic commerce
Explain the advantages of direct selling (4)
- No mark up or profit margin taken by intermediaries
- Complete control over marketing mix
- Quicker, fresher food products
- Direct contact with consumers offers useful market research
Explain the disadvantages of direct selling (5)
- Storage and inventory costs
- No retail outlets, consumers cannot see and try before they buy
- May not be convenient for consumers
- No after sales service offered by shops
- Expensive to deliver each item
Explain the advantages of single intermediary channel (4)
- Retailers incur cost of holding inventories
- Retailers display products, offer after sales service
- Retailers in locations convenient to consumers
- Producers focus on production not selling
Explain the disadvantages of single intermediary channel (4)
- take a profit-mark up, product more expensive for consumers
- Lose control over marketing mix
- Outlet is not exclusive, sell competitors’ products too
- Pass on delivery costs to consumers
Explain the advantages of two-intermediary channel (4)
- Wholesalers hold goods, buy in bulk from producers
- reduces producers inventory costs
- Wholesalers pay for costs of transport to retailers
- Buy in large quantities, sell in small.
Explain the disadvantages of two-intermediary channel (3)
- Another intermediary takes profit mark up
- Lose further control over marketing mix
- slows down distribution chain
Explain the benefits of e-commerce (8)
- Inexpensive if cost compared to nr of consumers reached
- can reach worldwide audience for small proportion of traditional promotion budgets
- Internet is convenient
- Can keep accurate records on nr of clicks/visitors, measure success rate of different web promotions
- Computer and smartphone ownership is increasing
- Lower fixed costs than retail stores
- Dynamic pricing is easier
Explain the disadvantages of e-commerce (6)
- Some countries have low speed internet connections. Poor countries, computer ownership not widespread
- Consumers cannot touch, try on, feel tangible products. Limit willingness to buy certain products online.
- Product returns may increase if consumers dissatisfied with purchases once received
- Cost and unreliability of postal services reduce cost advantage of internet selling
- Websites must be kept up to date, user friendly. Good websites expensive to develop.
- Worries about internet security may reduce further growth potential
Explain the factors (questions) influencing the choice of distribution channel (7)
- Sold directly to consumers/through retailers?
- How long should channel be?
- In which locations should product be made available?
- Should the internet be the main channel?
- How much will it cost to keep product inventory on store shelves and in warehouses?
- How much control does business want over the marketing mix?
- How will the distribution channel integrate with other marketing-mix elements?
Explain why the choice of distribution channel is important (3)
- Consumers can benefit from easy access to products. Allows see and try goods, purchasing easy, returns possible.
2 Manufacturers need outlets for their products that give a wide geographical market coverage.
- Retailers add mark up to cover costs, make product. If price important to consumers using few/no intermediaries is an advantage, can charge lower price.
Explain the term “digital distribution”
The delivery or distribution of digital media e.g. audio. Includes streaming/downloading
Explain the term physical distribution
The activities that combine to achieve the efficient movement of finished products to consumer.
Explain the term “integrated marketing mix”
The key marketing decisions complement each other and work together to give customers a consistent message about product.
