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Answer: to increase sales in the short term, to get rid of unsold/outdated stock,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