eQuizShow
marketing promotion
role of promotion
Question: What is promotion
Answer: method of communicating information to the market
Question: identify 2 aims of promotion
Answer: inform, persuade, remind
increase sales,
increase revenue,
increase customer awareness of product,
improve company image, provide information about the product
Question: what is the aim of informative promotion
Answer: provide facts or information such as price or functions of product
Question: what is the aim of persuasive promotion
Answer: to encourage customers to remain loyal to the purchase of the product.
Question: what is meant by a target market?
Answer: this is the group of customers who are potential buyers/consumers of a product.
above the line promotion
Question: define the term "above the line promotion"
Answer: promotion that is aimed at a mass audience
Question: give 4 examples of ATL promotional strategies
Answer: television, magazine, radio, newspapers, posters/billboards, DVDS and cinemas,
Question: give 2 advantages and 2 disadvantages of using ATL promotional techniques to promote a product
Answer: advantages
wide audience
attractive and attention grabbing
disadvantages
may be very expensive
may be hard to measure success.
Question: give 2 advantages and 2 disadvantages of using radio as an ATL promotional technique
Answer: advantages
relatively cheap when compared with tv and others
reaches mass audience
disadvantages
cannot put across visual image
one way communication
may be expensive
no hard copy available to remind customers.
Question: identify any 2 advantages of using newspapers and magazines as ATL promotional media
Answer: can be made attractive
can reach target audience
may reach a mass audience
adverts are permanent
can relay alot of information
may be relatively cheaper than radio or tv
below the line promotion
Question: give one main difference between above the line and below the line promotion
Answer: above the line reaches a mass audience, below the line reaches target
relatively difficult to measure success of of ATL, easier to measure BTL,
Question: what is one of the main objectives of below the line promotion
Answer: to increase sales in the short term, to get rid of unsold/outdated stock,
Question: give two advantages and two disadvantages of below the line promotion
Answer: advantages
may be relatively inexpensive
may be easier to measure success
can reach a target market
adverts are permanent and can be kept for future use
disadvantages
may not reach a mass market
involves much internal planning
junk mail may not be read
Question: give any 3 examples of below the line promotional media
Answer: point-of-sale, word of mouth, pamplets/leaflets, sales promotion
Question: define the term below the line promotion
Answer: the use of non-mass media promotional techniques
state the best advertising media for each
Question: Nike who produce an established brand of sports shoes, which is sold to teenagers as a leisure shoes wants to be more competitive.
Answer: ATL = television, internet, billboards
why? reaches a mass audience, yet target market as mostly young people uses the internet
Question: a new bicycle has been produced which is suitable for using over rough ground and for cycling up mountains.
Answer: specialist magazine, television, leaflets, internet,
why? may be able to reach a large audience also target market
Question: a new computer game has been developed
Answer: cinema, television, magazines, internet
why? need to reach large market
Question: a new restaurant in a small town has opened
Answer: pamplet, word of mouth, local newspaper, internet
below the line - specific to the target market.
Question: a local town is holding a festival
Answer: ATL - radio, television,
BTL - pamplet, local newspaper
need to reach local community/target market
General
Question: identify any 3 pricing strategies
Answer: skimming, cost plus, psychological, dynamic, competitive, penetration
Question: calculate the breakeven for MLK ltd that makes soft drinks.
variable costs per bottle $.40
estimated sales price per bottle $1.60
fixed costs $240,000
Answer: 200000
Question: calculate the margin of safety for MLK ltd. if:
3 million bottles a year are sold
fixed cost is 240,000
variable cost is $.4
selling price is $1.6
break even = 200,000
Answer: margin of safety = maximum capacity - break even
2.8 million
Question: state two benefits of a break even analysis
Answer: estimates profits and losses
estimates total costs
helps in setting selling price
decide when to stop production
helps in deciding location decisions
Question: state two limitations of a break even analysis
Answer: not all cost can be placed into fixed or variable
analysis only considers one product
timely and costly to produce
may be inaccurate
revenue is not constant with output