Promotional Decisions 3

• What is the promotional mix?

  The combination of different promotional methods
• How might a business use a free trial in its promotional mix?

  To encourage customers to try their product
• How does the nature of the product influence promotional methods?

  Complex products need more information in promotions
• What type of product might require extensive information in promotions?

  A complex product like a laptop
• Why might a simple product like Tropicana juice need less information in promotions?

  It is straightforward and familiar to consumers
• How does competitor action influence a business's promotional mix?

  Businesses may use similar promotional methods
• What is the significance of the market's nature in promotional decisions?

  A growing market may require less adaptation
• How does finance affect promotional methods?

  More finance allows for expensive promotions
• Why are some promotional methods like TV advertising more expensive?

  They require significant financial investment
• What does a business's target market influence in promotional decisions?

  The promotional method used for the product
• Why do businesses promote their products to potential customers?

  To reach and attract new consumers
• What are the main reasons for promotion in businesses?

  • To persuade customers to buy the product
  • To create or increase sales
  • To create or change the image of a product
  • To inform/remind customers about the product
• How do promotions persuade customers to buy a product?

  By advertising benefits and reasons to buy
• How can informing consumers about a business's products create new sales?

  By reaching those unaware of the products
• Why is reminding existing customers about a product important?

  It can increase sales from each customer
• When are promotions more likely to increase sales?

  Before short sales windows like holidays
• How can a promotion change the image of a product?

  By associating it with celebrities or trends
• What impact can a celebrity endorsement have on a product's image?

  It can create a fun or luxurious image
• Why is it important for businesses to inform customers about their products?

  To ensure consumers know what is available
• Why is timing important in promotions?

  Reminding customers at the right time is key
• What is an example of poor timing in promotions?

  Promoting Christmas baubles after December 25th