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Making Marketing Decisions

Promotion strategies and technology

  • 3 things to know
  • Paper 2

Overview

Advertising, sponsorship, product trials, special offers and branding, targeted online and viral advertising, e-newsletters, and matching promotion to the market segment.

What you need to know

Answer each one before you reveal it.

Your recallNot started
Key term

How might a luxury car brand choose its promotion methods?

Key term

Why must promotion suit the market segment it targets?

Key term

What is advertising?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    How might a luxury car brand choose its promotion methods?

    Model answer

    The brand would use high-quality magazine and TV adverts and sponsor prestigious events such as golf tournaments. Special offers would be avoided, as they could cheapen its image.

  2. 2

    Why must promotion suit the market segment it targets?

    Model answer

    Different segments use different media and respond to different messages. A campaign aimed at teenagers on TikTok would miss most retired customers.

  3. 3

    What is advertising?

    Model answer

    Advertising is paid-for communication through media such as TV, radio, newspapers, billboards and websites. Advertising can reach a large audience but is often expensive.

  4. 4

    Why might a local gym advertise in a local newspaper rather than on national TV?

    Model answer

    A local newspaper reaches people who live near enough to join, at a far lower cost. National TV would waste money on viewers who could never use the gym.

  5. 5

    What is sponsorship?

    Model answer

    Sponsorship is paying to have a brand linked with an event, team or individual. The brand gains exposure and shares the positive image of what it sponsors.

  6. 6

    What are the risks of sponsorship?

    Model answer

    Sponsorship can be very expensive, and its effect on sales is hard to measure. Bad behaviour by a sponsored team or star can damage the brand.

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Enterprise and Entrepreneurship
Spotting a Business Opportunity
Putting a Business Idea Into Practice
Making the Business Effective

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Revenue = price × .
quantitycostprofit

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AGoods must be of satisfactory quality.
BGoods must be fit for purpose.
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Cash inflows means money coming into a business.
TrueFalse

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