What is the main aim of promotion?
To obtain and retain customers
Other objectives include increasing sales, reminding consumers, and improving business image.
What are the two types of promotion in business?
- Above the line
- Below the line
Above the line involves independent media, while below the line includes direct marketing and personal selling.
What does above the line promotion involve?
Advertising in the media
It is a paid method of communicating with the mass market.
List the objectives of promotion.
- Increase sales
- Remind consumers
- Encourage purchases
- Demonstrate product superiority
- Improve business image
- Reassure customers
- Encourage retailer support
These objectives guide promotional strategies.
What type of advertising provides information to potential purchasers?
Informative advertising
It includes details like price and specifications.
What is the goal of persuasive advertising?
To convince consumers to purchase a product
It often compares products to highlight superiority.
What is the purpose of reassuring advertising?
To comfort existing customers
It suggests they made the right choice in purchasing.
What are some methods of below the line promotion?
- Direct mailing
- Sales promotion
- Personal selling
- Exhibitions and trade fairs
- Public relations
- Sponsorship
- Merchandising
These methods do not rely on media.
What is direct mailing?
Sending product information via post
Also known as mail shots.
List examples of sales promotions.
- Free gifts
- Coupons
- Loyalty cards
- Competitions
- BOGOF offers
- Money-off deals
These are short-term incentives to encourage purchases.
What is the main advantage of personal selling?
Personal attention from sales representatives
This method promotes products through direct contact.
What is the role of public relations in promotion?
To communicate with interested parties
Aims to improve the image of the firm and its products.
What is sponsorship?
Financial support for an event in exchange for advertising
Example: a sports team wearing a company’s logo.
List advantages of sponsorship.
- Brand exposure
- Improved brand image
- Targeted audience reach
- Networking opportunities
- Community commitment
These benefits enhance brand visibility and reputation.
List disadvantages of sponsorship.
- High costs
- Difficult to measure effectiveness
- Risk of negative publicity
- Limited control over brand representation
- Short-term benefits
These factors can impact the overall success of sponsorship.
What is merchandising?
Influencing consumers at the point of sale
Examples include product layout and display material.
What factors should be considered when choosing methods of promotion?
- Cost
- Market type
- Product type
- Stage in product life cycle
- Competitor’s promotions
- Legal factors
These factors influence promotional strategy.
What is the definition of branding?
Giving a product a name, sign, symbol, or logo
It helps consumers recognize and differentiate products.
List the types of branding.
- Manufacturer brands
- Own-label brands
- Generic brands
Each type serves different market needs.
What are the advantages of branding?
- Easy recognition
- Builds trust
- Allows higher pricing
- Differentiates from competitors
- Attracts new customers
Strong branding can lead to business expansion.
What are the disadvantages of branding?
- Significant investment required
- Time-consuming to build
- Vulnerable to reputation damage
These challenges can hinder brand development.
List ways to build a brand.
- Exploiting unique selling points
- Advertising
- Sponsorship
- Using social media
These methods help establish and promote a brand.
What is viral marketing?
Encouraging people to share messages electronically
It leverages the internet for product promotion.
What is emotional branding?
Using consumer emotions to build a brand
It aims to create a relationship between consumers and brands.
