Promotions - Marketing Mix Business IGCSE

15. Promotions

Define promotions.

A range of methods designed to encourage interest and raise awareness of products a business sells.

What is the acronym for the aims/importance of promotion, and what does each letter stand for? (6)

BICIER:

B - Build brand image

I - Increase sales

C - Compete with rivals

I - Inform customers

E - Encourage wholesalers to stock products

R - Reassure consumers following a problem

Why don't more sales always mean more profit?

Profit only rises if extra revenue exceeds the cost of promotion; high promotional spending doesn't guarantee success.

Explain informative advertising.

Provides product information (e.g. price, usage and selling locations); commonly used when launching new products.

Explain persuasive advertising.

Convinces customers they need a product and that it is better than competitors' products.

Define methods of advertising and name 6 methods.

Methods used to inform or persuade customers about products; 1. Targeted emails; 2. Billboards; 3. Leaflets; 4. Social media; 5. Personal selling; 6. Sponsorships

State 2 pros and 1 con of targeted emails.

Pros: cheap, personalised; Con: easily ignored or marked as spam

State 2 pros and 2 cons of billboards.

Pros: seen by many, raises awareness; Cons: costly, limited detail

State 2 pros and 2 cons of leaflets.

Pros: cheap and eye-catching, useful for local promotions; Cons: environmentally harmful, easily ignored

State 2 pros and 2 cons of social media.

Pros: reaches many cheaply, allows customer interaction; Cons: time-consuming, mistakes can damage reputation

Define sales promotions.

Incentives used to encourage short-term increases in sales or repeat purchases (e.g. special deals)

State 2 pros and 2 cons of vouchers.

Pros: encourages repeat purchases, attracts price-conscious customers; Cons: lowers profit margins, customers may wait for discounts

State 2 pros and 2 cons of reward schemes.

Pros: encourages repeat purchases, builds customer loyalty; Cons: initial costs, may not attract new customers

State 1 pro and 1 con of competitions.

Pro: increases awareness; Con: costly

State 2 pros and 2 cons of special offers.

Pros: quickly increases sales, clears excess stock; Cons: frequent discounts damage brand image, reduce profits

What is the choice of advertising platform based on, and what 3 factors affect it?

Based on target market characteristics; 1. Budget; 2. Business size; 3. Product life cycle stage (introduction = more promotion)

Define e-commerce. What must customers be to use it?

Marketing, buying and selling goods over the internet; customers must be willing and able to buy online

State 2 pros and 2 cons of e-commerce for businesses.

Pros: more potential sales (global market), lower costs (rent and staffing); Cons: competition can force lower prices, some customers cannot or will not shop online

State 4 pros of e-commerce for consumers.

1. Convenient; 2. Wider choice (global range); 3. Lower prices; 4. More information (details and reviews)

State 4 cons of e-commerce for consumers.

1. Risk of fraud (scams); 2. Risk of hacking (personal information stolen); 3. No personal service; 4. Difficult and costly retur