Unit 3: Chapter 15

Question 1

Define promotion

Answer 1

The process of passing information onto consumers about the product

Question 2

What are the aims of promotion?

Answer 2

• inform people
• introduce to new market
• compete
• create/improve brand image
• increase sales

Question 3

What are the two types of promotion?

Answer 3

advertising: above the line

sales promotion: below the line

and PR + sponserships

Question 4

What are the two roles of advertising?

Answer 4

inform: new products
persuade: established products

Question 5

What is advertising?

Answer 5

promotion in the mass media (not your own accounts/papers)

Question 6

What is sales promotion?

Answer 6

incentives aimed at customers to achieve short term increase in sales.

Question 7

What are some types of sales promotion?

Answer 7

• after sales promotion
• bogof
• displays
• free samples
• free gifts
• competitions
• price reductions

Question 8

What are the advantages of sales promotions?

Answer 8

• increases sales in low levels of demand (off seasons)
• encourages new customers
• clear old stock
• choose you instead of competitors

Question 9

What are the factors of choosing promotion techniques with a budget?

Answer 9

cost, market types, product types, product life cycle stage, competitors, legal factors