Promotion

Question 1

What is promotion?

Answer 1

Collection of techniques to inform/ persuade potential customers to buy product.

Question 2

What is the purpose of promotion?

Answer 2

• raise awareness.
• increase sales.
• encourage brand loyalty.
• enhance reputation.

Question 3

What is ‘above the line’ strategy of promotion?

Answer 3

No direct contact with consumer.
Usually mass media.

Question 4

What is ‘below the line’ strategy of promotion?

Answer 4

Directly in contact with consumer.

Question 5

What are different types of promotion?

Answer 5

• tv
• radio
• magazines
• cinema
• billboards
• posters
• social media

Question 6

What is advertising elasticity of demand?

Answer 6

Shows the extent to which spending on advertising affect sales.

Question 7

How do you calculate advertising elasticity of demand?

Answer 7

% change in demand / % change in advertising spending

Question 8

What factors affect promotional method choice?

Answer 8

• business size, location, budget.
• actual product.
• customer.
• external factors.