1.3.2 Types of Promotion

• What is the definition of 'market share'?

  The percentage of sales held by a business.
• What factor influences the demand for electric scooter rentals?

  Changes in the price of substitutes.
• How does a decrease in material costs affect the shoe market?

  It shifts the supply curve to the right.
• What is the formula for price elasticity of demand (PED)?

  PED = % change in quantity demanded / % change in price.
• If PED is -1.5 and prices drop by 8%, what is the estimated percentage change in demand?

  12% increase in demand.
• What is promotion in a business context?

  Marketing activity to encourage purchases.
• Why do businesses promote their products?

  To inform and remind consumers about products.
• What are the advantages of personal selling?

  Builds customer relationships and provides tailored advice.
• What are the disadvantages of direct selling?

  Expensive and time-consuming for sales staff.
• What are methods of sales promotion?

  • Free gifts
  • Coupons
  • Loyalty cards
  • Competitions
  • BOGOF offers
  • Money off deals
• What is the impact of sales promotions on customer behavior?

  Encourages customers to try new products.
• What are the advantages of direct marketing?

  Targets specific customer segments effectively.
• What are the disadvantages of advertising?

  Often expensive and can be ignored by users.
• What is public relations (PR) in a business context?

  Communication to create a positive image without payment.
• What are the advantages of sponsorship for a business?

  Creates positive associations and reaches large audiences.
• What are the disadvantages of digital communications?

  Can be ignored or blocked by users.
• What are the advantages and disadvantages of using PR for promotion?

  Advantages:

  • Improves brand credibility
  • Low cost compared to advertising

  
  

  Disadvantages:

  • Limited control over media presentation
  • Success depends on media interest
• What is an example of digital promotion?

  Social media ads and mobile notifications.
• Why might Coca-Cola sponsor the Olympics?

  To create positive brand associations.
• What are the benefits and limitations of sponsoring the UK Olympic team for Aldi?

  Benefits:

  • Positive brand association
  • Increased visibility to large audiences

  
  

  Limitations:

  • High costs for sponsorship
  • Risk of negative publicity
• What is the purpose of the 'Knowledge Check' section?

  To assess understanding of promotional methods.
• What is the significance of using a green pen in the marking process?

  To mark work and make necessary amendments.
• What is the best promotion method for a new business?

  Depends on the target audience and product.