Marketing Mix- Promotion And Place

Question 1

Promotion

Answer 1

The use of advertising, sales promotion, personal selling and public relations to inform customers and persuade them to buy

Question 2

Advertising

Answer 2

Paid for communication to inform and persuade consumers using media

Question 3

Direct promotion

Answer 3

A range of promotional activities aimed at targeted customers

Question 4

Promotion mix

Answer 4

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

Question 5

Sales promotion

Answer 5

Incentives such as special offers or special deal directed to customers or retailers to increase short term sales and repeat purchases by consumers

Question 6

Success of promotional campaigns could be measured by these objectives

Answer 6

-Increased sales
-Increased consumer recall of an existing product
-Creating or reinforcing the brand image or personality of the product
-Improving the public image of the business rather than the products

Question 7

Types of advertising

Answer 7

Informative advertising - adverts that give information about a product to potential purchasers, rather than just trying to create a brand image

Persuasive advertising - adverts trying to create a distinct image or brand identity for the product

Question 8

Role of an advertising agency

Answer 8

-Research the market, establish consumer tastes and preferences
-Advise the most cost-effective form of advertising
-Use their own designers to design adverts for each medium
-Film or print the adverts used
-Monitor public reactions and feed this data back to the client

Question 9

Advertising methods

Answer 9

-Print advertising
-Brodcast advertising
-Outdoor advertising
-Product placement advertising
-Guerrilla advertising
-Sponsership
-Digital advertising

Question 10

Factors that depend on the advertising method used

Answer 10

-Cost
-The consumer profile of target audience
-The message and image to be communicated
-Other aspects of marketing mix
-Legal constraints

Question 11

Sales promotion methods

Answer 11

-Price offers
- Loyalty reward programmes
-Money off coupons
-Point-of-sale displays
-BOGOF
-Games and competition on packaging

Question 12

Direct promotion methods

Answer 12

-Direct mail
-Telemarketing
-Personal selling

Question 13

Digital promotion

Answer 13

The promotion of products using digital technologies, mainly on the internet but also including mobile phones

Question 14

Methods of digital promotion

Answer 14

-Social media marketing
-Email marketing
-Online advertising
-Smartphone marketing
-Search engine optimisation (SEO)
-Viral marketing

Question 15

Benefits of digital promotion

Answer 15

-World wide coverage
-Relatively low cost
-Easy to track and measure results
-Social media communication builds customer loyalty
-Website convenience increase sales

Question 16

Limitations of digital promotion

Answer 16

-Time consuming
-Skills and training
-Global competition
-Complaints and feedback

Question 17

Role of packaging

Answer 17

-Protect and contain the product
-Give information
-Support the brand image of the product
-Make the product attractive ad help the consumer to recognise it

Question 18

Role of branding

Answer 18

-Aiding consumer recognition
-Making the product distinctive form others
-Giving the product identity or personality

Question 19

Benefits of branding

Answer 19

-Increases chance if brand recall
-Differentiates the product from competitors
-Makes it more price inelastic
-It increases consumer loyalty

Question 20

Channel of distribution

Answer 20

The chain of intermediaries a product passes through from producer to final consumer

Question 21

Single-intermediary channel

Answer 21

Producer to retailer to consumer

Advantage
-Retailers take inventory costs
-Retailers offer after sales service
-Producers focus on production

Disadvantage
-Producer loses control over marketing mix
-Retailers may sell competitors products
-Producers pass on delivery costs to retailers

Question 21

Direct selling

Answer 21

Producer to consumer

Advantage
-Producer has control over marketing mix
-Quicker than other channels
-Direct contact with consumers offers useful market research

Disadvantage
-All inventory costs taken by producer
-May not be convenient
-No after sales service is offered by shops

Question 22

Two-intermediary channel

Answer 22

Producer to retailer to wholesaler to consumer

Advantage
-It reduces producers inventory costs
-Wholesalers pay for the costs of transport
-Wholesalers buy in large quantities

Disadvantage
-Product becomes more expensive
-Producers lose further control over marketing mix
-Slows down the distribution chain

Question 23

Benefits and Limitations of e-commerce

Answer 23

Advantage
-Relatively inexpensive
-Companies can reach a world wide audience
-Consumers can make purchases on websites and leave their important data
-It is convenient for those who have internet

Disadvantages
-Some countries may be harder to access internet
-Consumers may limit the willingness to buy certain goods online
-High product returns increase costs
-Cost and unreliability of postal services may reduce the cost advantage

Question 24

Digital distribution

Answer 24

The delivery or distribution of digital media content

Question 25

Physical distribution

Answer 25

The activities that combine to achieve the efficient movement of finished products from the end of production operation to consumer

Question 26

Integrated marketing mix

Answer 26

The key marketing decisions complement each other and work together to give customers a consistent message about the product