Question 1

Define 'promotion' within the marketing mix and state its primary objective.

Accepted Answer

Promotion involves activities communicating the benefits of a product to potential customers. Its primary objective is to inform, persuade, and remind consumers to increase sales and brand awareness. Example: A company running TV ads or offering discounts.

Question 2

Explain the difference between 'above the line' and 'below the line' promotion, giving an example of each.

Accepted Answer

Above the line promotion uses mass media (TV, radio, print) to reach a large audience, e.g., a TV commercial. Below the line promotion uses targeted methods (direct mail, sales promotions) to reach specific groups, e.g., a coupon in a local newspaper.

Question 3

What are 'sales promotions' and give three examples of common sales promotion techniques?

Accepted Answer

Sales promotions are short-term incentives to encourage immediate purchase or trial of a product or service. Examples include 'buy-one-get-one-free' offers, discounts (e.g., 20% off), and free samples (e.g., taste testing in a supermarket).

Question 4

Describe 'personal selling' and state a situation where it would be a more effective promotional tool than advertising.

Accepted Answer

Personal selling is a direct, two-way communication between a salesperson and a potential customer. It's more effective than advertising when selling complex or expensive products, where detailed explanation and demonstration are needed, e.g., selling a car or insurance policy.

Question 5

Explain the role of 'public relations' in the promotional mix and provide a real-world example.

Accepted Answer

Public relations (PR) aims to maintain a positive image of the business with the public. This builds goodwill and credibility. For example, a company donating to a local charity and receiving positive media coverage.

Question 6

Define 'sponsorship' as a promotional activity, highlighting the mutual benefits for both parties involved.

Accepted Answer

Sponsorship involves a business providing financial or other support to an event or organization in return for publicity and brand association. The business gains exposure, and the event/organization receives funding, e.g., a bank sponsoring a local sports team.

Question 7

Outline three advantages of using 'social media marketing' as part of a business's promotional strategy.

Accepted Answer

Social media marketing allows businesses to target specific demographics, engage directly with customers (two-way communication), and track the effectiveness of campaigns in real time. It is often more cost-effective than traditional advertising.

Question 8

What is 'direct marketing' and give an example of a direct marketing activity targeting existing customers?

Accepted Answer

Direct marketing involves communicating directly with individual customers, without intermediaries. An example targeting existing customers is sending personalized email offers based on their past purchases or loyalty program status.

Question 9

Explain the AIDA model and how it relates to effective promotion.

Accepted Answer

AIDA stands for Attention, Interest, Desire, and Action. It describes the stages a customer goes through before making a purchase. Effective promotion aims to capture attention, generate interest, create desire for the product, and ultimately lead to a purchase (action).

Question 10

What factors should a business consider when deciding on the appropriate 'promotional mix' for a new product?

Accepted Answer

Factors include the target audience, the product itself (complexity, price), the budget available, competitors' activities, and the overall marketing objectives. A business selling high-end watches will utilize different techniques from a company selling fast food.

Marketing mix: promotion

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