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Summary IB Business & Management - Revision Poster - 4.5.3 Promotion

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A detailed revision poster which provides a summary of the IB Business & Management subtopic 4.5.3 Promotion. The document is in a PDF format and the text is unhighlighted to allow for personalisation according to your own colour scheme for your subjects. The use of this revision poster, in addition to my complete set of revision posters for the IB Business & Management syllabus enabled me to achieve a final grade of HL7 (A*).

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Uploaded on
September 10, 2022
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Written in
2021/2022
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Summary

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4.5.3 Promotion


• 2 areas - above the line and below the line Below the line promotion
• promotional mix depends on factors such as which media
the target market uses, promotional objectives and the • refers to any promotion that is not carried out in the mass media, has fewer
marketing budget costs, so may be more attractive to smaller businesses
• Direct marketing
• involves targeted marketing messages sent to a customer’s email, phone or
home
Above the line promotion • automatic systems send targeted emails to customers advertising special offers
for goods or services they may be interested in; technology allows this to be
• paid for media done at a low cost
• Television • written text allows large amounts of information to be communicated
• the use of sounds and video can enhance the impact, • it can annoy potential customers
there is potential for a global audience • many people will not even see the messages because they have spam filters
• most expensive method • local fast food takeaways, political campaigns, and websites that track users’
• services such as Netflix have led to falling audiences for purchases may use this
advertisers • Sales Promotion
• mass-market products produced by companies with large • high impact as the customer is targeted at the point of sale
marketing budgets will use this • the message may be lost if rivals have similar offers
• Online • price reductions lead to lower profit margins
• highly targeted, clicking on an advertisement can take a • fast-moving consumer goods and companies that wish to sell old stock may use
customer directly to the seller’s webpage this
• some technical knowledge is needed • Loyalty cards
• some customer groups do not use the internet regularly, • repeat purchases are encouraged
opposed by technical exclusion • data on customer spending habits can be gathered
• pay-per-click services make online advertising affordable • price reductions and free products lead to lower profit margin
for most businesses • consumer retailers in mature markets may use these
• Newspapers • After-sales service
• large amounts of information such as addresses, and • customer satisfaction can be increased which leads to loyalty
prices can be communicated • additional employees will be needed to provide after-sales services
• customers can refer to the advertisement multiple times • technical products such as cards and computer systems will offer this
• some segmentation by socio-economic group is available • Public relations
• a lack of sound and movement can reduce impact • supporting charitable causes and maintaining good links with the local
• newspaper readership is in global decline community
• products that segment by socio-economic class use • improves brand reputation through positive actions
newspapers to advertise • employee training is required for crisis management skills and keeping positive
• advertisements that need to communicate a significant community relations
amount of information • large companies that produce unethical goods such as petrol and tobacco may
• Magazines do this
• readership is highly segmented • Merchandising
• a single magazine could be read by multiple people within • products gain a wider brand awareness when merchandise is used
the same target market • it is costly to produce and may not guarantee additional sales
• lack of movement and sound can reduce impact • universities and companies looking to gain recognition of their name may
• segmented and niche-market products will use magazines produce merchandise
• Radio • Direct mailing
• the only medium that reaches consumers while they are • leaflets and unaddressed letters through your front door
engaged in activities such as driving or housework • is useful for targeting local potential customers
• local radio stations allow for geographic segmentation • it can annoy people
• there is a low impact because of lack of visual images • estate agents, local cleaners, plumbers or builders may use this
• customers may not pay attention to commercials because • Packaging
they are focusing on other things • no additional marketing efforts are needed
• local companies with small marketing budgets use this • the packaging has to attract enough attention
• Outdoor • companies with attractive, luxury or quirky logos that would readily catch the eye
• reach a range from a national campaign down to a single will utilise their packaging for example, Jo Malone got her friends to walk around
billboard in New York with bags prior to opening of the store to spark awareness
• well-placed advertisements can be seen by thousands of • Exhibitions and trade shows
people • exhibitions and trade fairs are excellent opportunities to find many brands in one
• non-digital billboards lack moving images, so may lack place
impact • there are many potential customers in one place
• potentially any consumer product can be advertised with • many rivals will also be in attendance
outdoor promotions • wedding fairs, caravan, and building companies may utilise these




Promotional Mix The impact of technology and guerrilla marketing

• impact of technology has increased the information a company has about its customers. Main areas of
• company’s sales depend on whether promotion affected by technology
customers correctly received the intended • loyalty cards - way of tracking customers buying habits to then send direct messages for examples
message about its product or services advertising for baby stuff after buying nappies
• the firm has to develop a strategy that • online advertising - companies can pay Google for links to appear first
combines a variety of techniques, • direct marketing - movements are tracked once on a website
communicating with enough customers and • guerrilla marketing - achieving conventional marketing goals using outdoor and online spaces in
with the right message imaginative, attention grabbing ways to stimulate a surprise or a shock, shared or retweeted online to
create buzz
• how the company combines advertising,
sales promotions, public relations, direct • viral marketing - occurs when advertising message is self-replicated and shared, for example, Hotmail
used to end every email sent by users with get your free email at Hotmail which stimulated rapid increase
marketing and personal selling depends on in users
budget, nature of company/ good/service, • social media marketing - companies use information held by social media sites for segmentation
and the target audience • social networking - LinkedIn has changed the way people get recruited
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