PROMOTION

Learning Objectives

After completing this chapter you should be able to:-

1. Identify and explain the elements of the promotional mix.
2. Discuss the communication process and its relevance to marketing
3. Explain the AIDA model and its significance to marketing communications.
4. Distinguish between above-the-line media and below the line media.
5. Discuss the role of advertising in the promotional mix.
6. Discuss the role of sales promotion and identify the sales promotional tools
7. Explain the push and pull strategies.
8. Distinguish between Public Relations and Publicity.
9. Explain the role of Public Relations in Crisis Management.
10. Discuss the role of Personal Selling in the promotional mix.
11. Explain Direct Response Marketing and how it can be used.

INTRODUCTION

Promotion is a key element in the marketing mix. Marketers understand that if consumers are
left alone they will not buy enough of the companys products or services, hence there is need
to directly influence consumers minds and the decision they make through promotion which
is often referred to as the communication mix or the promotional mix. When an organisation
develops a good product (Product) that is well priced (price) and made available (place) then
marketing should communicate with its customers (promotion). In simple terms promotion is
communicating, information between a seller and potential buyer(s) and other players in the
channel to influence attitudes and behaviour.

Promotional Mix

The promotional mix consists mainly of advertising, sales promotion, personal selling and
public relations and publicity.

Promotional Mix

Advertising Sales Personal Public

Promotion Selling Relations &
Publicity

Promotion Objectives
It is important for an organisation to clearly define what it wants to achieve with promotion
and there are three basic promotional objectives namely:-

1) Informing This refers to informing, telling about the product/service. Consumers

must know something about the product for them to purchase it.
2) Persuading This refers to offering reasons why consumers should select your
brand and it is used when there are rivals brands on the market. It is not enough to
simply inform when there are competing rivals, hence there is need to persuade.
Persuading is normally used in the competitive stage of the product life cycle to build
selective demand.

3) Reminding This refers to making consumers to keep thinking about the

product/service. Consumers should be reminded on how good the brand is and about
past satisfaction so that they do not shift to competing brands.

The Communication Process

Communication is the process of transmitting information so that it is understood and acted

upon. As marketers are communicators who communicate with consumers they should
understand how communication works. Marketers should understand communication in the
context of marketing as illustrated in the diagram.

Model of Communication Process

Noise

Sender Encoding Message Decoding Receiver

Medium

Feedback

From a marketing perspective the sender is the marketer who initiates a message by encoding
that is putting thought into symbolic form. In encoding it is important to express a message in
a form that can mostly likely be understood or that is welcome to the receiver. Encoding is
the use of signs, colour, pictures, voice, words, music etc. For example in an advert entitled
The Naked Truth Net One used a naked man. A symbol that was received with mixed
reactions by Zimbabweans. The message is a symbolic expression of senders thought e.g.
the advertisement. The message should meet identified needs of the target audience. The
medium refers to the communication channels through which the message moves from
sender to receiver for example radio, television, newspapers and magazines. Marketers
should use media that cost effectively reaches the target audience. Decoding is the process
through which the receiver assigns meaning to the symbols encoded by the sender, that is
interpreting the meaning of an advertisement. A message should be decoded in the exact
form intended.

Noise is the extraneous distracting stimuli that interfere with the reception of the message in
its pure and original form. There will always be noise along the channel and a message
should contend with the extraneous distracting stimuli. For example all other messages that
scramble for attention are noise. The receiver is the party receiving the massage for example
the consumer. Feedback is part of the receivers response communicated back to the sender.
Feedback enables the sender to monitor how well the message has survived the journey along
the channel, whether it has impacted upon the receiver negatively or positively, whether it has
been decoded accurately and whether any intended action has been instigated.

Promotional Planning
As discussed previously in (Consumer behaviour) the adoption process refers to the stages
through which a consumer goes through from first hearing about an innovation to final
rejection or adoption. The stages are awareness, interest, trial, evaluation and
adoption/rejection. These stages guide promotional planning as the promotion objectives of
informing, persuading and reminding relate to the stages in the adoption process. The
marketer has a task to assist the consumer to go through the stages in the adoption process
and the decision making process and this can be achieved by using an action oriented Model
called AIDA. In developing an integrated promotional Campaign marketers can make use of
the AIDA model.

A - getting Attention
I - holding Interest
D - Arousing Desire
A - Obtaining action

a) Getting Attention This is necessary to make consumers aware of the companys

products. Marketers make use of attention getting devices such as large deadlines,
shocking statements, pretty women, handsome men etc.
b) Holding Interest Holding interest will give communication a chance to build the
consumers interest in the product/service. A message should hold and maintain
interest.
c) Arousing Desire The desire to own or use the product must be aroused in the
consumer. In this regard marketers should convince the consumer that the product
meets consumer needs. Marketers should point out the unique selling preposition
(USP) an advantage that consumers cannot obtain from competing brands. The U.S.P
should aim at an important unsatisfied need.
d) Obtaining Action The ability of the promotional message to lead the consumer to
try the product is a major requirement. Obtaining action means gaining trial of the
product.

ADVERTISING
Definition Advertising is defined as any paid form of non-personal presentation and
promotion of ideas, goods or services by an identifiable sponsor.
Purpose: The purpose of advertising is to communicate to customers and potential customers
by drawing their attention to the characteristics of an organisation or a product or service
which will appeal to their buying motives.

Objectives
a) Communicating certain facts about a product.
b) Highlighting specific features of a product that separates it from competing brands.
c) Building up a brand image or corporate image.
d) Changing customer and consumer habits for example adverts about AIDS, drunken
driving, cigarette smoking etc.
e) Influencing dealers and resellers to stock the organisations products.
f) To create awareness of new products and to generate enquiries from potential
customers.

Media Selection
A decision should be made on the media that carries the message. Two key concepts are
important when selecting media and these are:-

(a) Reach- The number of people exposed to the particular medium through which the
message is presented. For example the Daily News, Herald, Financial Gazette, Radio
1,2,3 and 4 have different reach. Marketers should know reach of a particular medium
before they select it.

(b) Frequency The number of exposures in a given period.

Media Characteristics
Characteristics of each media should be known so as to select the appropriate one.
a) Newspapers

Advantages
1. Good market coverage 2. Broad acceptance 3. Timeliness

Disadvantages
1. Short life 2. Poor reproduction quality

(b) Television

Advantages
1. Combines sight, sound and motion
2. Appeals to these senses.

Disadvantages
1. High Cost 2. High Clutter

(c) Magazines

Advantages
1. Good pass along readership
2. High demographic selectivity
3. High quality reproduction
Disadvantages
1. Long lead purchase time.

(d) Direct Mail

Advantages
1. Audience selectivity
2. No advertising competition with the same media.

Disadvantages
1. Relatively high cost.

(e) Outdoor (Bill boards, bus shelters etc)

Advantages
1. High repeat exposure 2. Low cost 3. Low competition

Disadvantages
1. No audience selectivity 2. Creative Limitations

(f) Radio

Advantages
1. Mass use 2. Low cost 3. High geographic and Demographic Selectivity

Disadvantages
1. Audio presentation only 2. Low attention than television.

Above and Below the line

Above the line is advertising in media, which pay commission. The media pays commission
on purchase made by the advertising agent. Mass media such as radio, newspapers, television
and cinema are example of above the line.

Below the line is advertising in media where there is no payment of commission for example
exhibition, direct mail, point of sale etc.

Through the line is when a campaign is planned using above the line media linked to
below the line activity. In other words there is a combination of above and below the line
for example advertising on television will be linked to point of sale displays and both will
portray the same theme.

Evaluating Advertising Effectiveness

Marketers should ensure that they derive benefits from advertising hence, there is need to
find out whether a companys advertising is effective. Measuring advertising effectiveness is
done in two ways.
a) Measuring communication effect This refers to determining whether the advert is
capable of communicating effectively. Marketers should know the capability of an
advert to deliver the desired communication effect. In this regard marketers use pre-
testing and post testing.

i) Pre-testing refers to assessing effectiveness on actual media. Before the advert is on

National Television it has to be exposed to a certain group of the target audience to
determine its effectiveness.

ii) Post-testing refers to assessing effectiveness of an advert after it has been printed or
broadcast. Research is conducted on the number of consumers who remembers the
advert and what exactly they remember.

(b) Measuring Sales Effect

This refers to establishing sales generated by the advert. The level of sales generated
will show how effective or ineffective the advert has been. However sales effect is
difficult to measure as sales are not influenced by the advertising alone, but other
factors such as price, availability and competitor actions also influence sales.

2. SALES PROMOTION
Definition A sales promotion is defined as the provision of short term incentives to
encourage the purchase or sale of a product or service.

Purpose - The purpose of a sales promotion is to support marketing activities in

persuading and motivating customers to buy.

Objectives Sales promotions have various objectives, which include.

a) To encourage product trial. For example the New Africa Online Internet and email on
television without a computer. They were offering an introductory 6 months free e-
mail and Internet to encourage product trial.

b) To encourage more frequent or greater use of a product. For example the Lever
Brothers Knock Knock what have you got" sales promotion. It encourages more
frequent use of Lever Brothers products.

c) To increase the number stockists. For example when producers offer discounts to
wholesalers and retailers for a specific period to encourage more of them to stock the
producers products.

d) To increase awareness of a product. For example :Great Stores Draw Sales

Promotion between 24 November and 31 December 2000. CW Store, Radio Ltd,
Blooms and Creative World offered Fantastic Prizes to lucky customers who
purchased any Panasonic products.

(a) To encourage seasonal sales. For example prizes offered to customers who buy
blankets between August and October, a period when demand for such products is
low.

(b) To encourage brand switching. For example where marketers offer incentives to
consumers to encourage them to switch to their brands.
(g) To increase sales in a new market segment. For example the new TM outlet at High
Glen Shopping Centre offered special offers on The Grand Opening.

Promotional Strategies
Organisations should communicate with the final consumer, public retailers and wholesalers
to ensure its products are promoted effectively. To achieve effective promotion two
promotional strategies are used namely:-

a) Promotions with a Pull Strategy/Pull effect Pull techniques are aimed at

consumers to arouse their interest in the product. Such interest is communicated to the
retailers by making enquiries. Retailers will thereby be forced to increase stocks,
thereby pulling the products from producers as illustrated in the diagram.

Producer Wholesalers Retailer Consumer

b) Promotions with a push/strategy/push effect Push techniques are aimed at traders

or channel members to induce them to order and stock and sell the products.
Essentially the products are pushed through the distribution channel as illustrated in
the diagram.

Producer Wholesalers Retailer Consumer

However both push and pull techniques have a range of advantages and disadvantages
associated with them as shown in the table.

Push Strategy
Advantages Disadvantages
-more self space gained -there is no contact with the consumer
-distributor co-operation is -high costs involved and profits enhanced
are reduced
-they educate distributors
-good relationships with
distributors are established.

Pull Strategy
Advantages Disadvantages
-Build brand image -High costs involved
-Create rapid brand awareness -There is no trade support
-Maintain customer loyalty.

Types of Sales Promotions

The types of sales promotions are:-

a) Consumer Promotions
b) Trade Promotions
c) Sales Force Promotions
a) Consumer Promotions - These are aimed to consumers to encourage more frequent
buying or faster usage and to encourage trials of other brands. Consumer promotions
are:-

i) Coupons A coupon is a certificate entitling the bearer to a stated saving on the

purchase of a specified product. It could be attached on the product or published in
newspapers or magazines.

ii) Competition This is where consumers are requested to send tokens or proof of
purchase and this induces more sales. However a competition should be simple to
enter and should not run over a long period of time that contestants become bored and
forget to submit entries.

iii) Free Samples

These are free products given to consumers in stores by point of sale. Demonstrators
or are delivered to the door. Sometimes samples are attached to magazines.

iv) Self Liquidating offers

This refers to an offer, which is self supporting. A product is often offered free as an
incentive to buy the main product. For examples a three quarter bed being offered free
for buying a double bed. Such an offer brings extra sales so that the increase in sales
and profits (from selling the bed) will liquidate (pay off) the cost of the bargain offer
(three quarter bed).

(v) Multiple Packs

This is where small items are collectively packed or sold in multiples. For example
instead of buying two bath soaps one buys several as these will be packed in threes or
fours in single packs.

(vi) Banded Packs

This is where related or complimentary products are packed or sold together. For
example a tooth brush and tooth paste, ruler and a pen.

(vii) Price Cutting

This is where consumers are offered savings off the regular price of a product. For
example Prices reduced by 50%.

(i) Point Of Purchase

This is where the product is presented and promoted in the location where it is sold.
Effective displays sells the product as they attract more attention and assist the
customer in making the final choice.

(b) Trade Promotions

These are aimed to encourage traders to hold larger stocks, carry stocks of new
products or to gain entry to new retail outlets. Trade promotions are:-

i) Buying allowance This refers to a reduction on price on each pack or case of

products purchased during a period of time. This encourage traders to stock more.
ii) Advertising Allowance This is used to compensate dealers for advertising a
manufacturers product. As OK Bazaars advertise products, producers should assist
OK Bazaars by offering advertising allowance as an incentive..

iii) Display allowance This refers to offering incentives to dealers for carrying out
special displays of products. For example during the OK Grand Challenge various
special stands are designed for products from specific organisations, Olivine
Industries, Cairns Foods, Colcom, National Food etc.

iv) Free goods - This refers to offering extra cases of goods to middlemen to encourage
them to feature the producer products.

v) Push Money Dealers or their sales force should be incentivised to push the
producers products and this may be done by offering them gifts or cash.
c) Sales Force Promotions - These are aimed at company s own sales force and the
objective is to encourage support for a new product, encourage salesmen to prospect
for new customers or to stimulate sales in a slack period. Incentives will boost the
morale of the sales force. Sales force promotions are:-

(i) Sales Contests/Competition As an incentive competitions among sales persons

are used to motivate them. For example sales persons may have the chance to win a
trip to Mauritius if they manage to sell certain amount of goods of a certain value.

ii) Periodic Conferences regular meeting and conferences between Sales Managers
and sales people are a motivating factor as need and problems of sales people are
discussed and new sales techniques are learnt.

iii) Bonus Schemes - Performance related bonus schemes are an incentive and are aimed
at sales people for percentage increase achieved above sales products targets. Rewards
may be in cash or in kind.

3. PERSONAL SELLING

Definition - Personal selling is defined as one to one communications with a buyer,

which is made directly or over the phone or through other forms of electronic
communications.

Purpose The purpose of personal selling is to change individual attitudes,

demonstrate the product, persuade, assist the potential buyer and deliver a package of
benefits to the buyer.

Objectives Objectives of personal selling include:-

a) To change personal attitudes towards the product and establish conviction in the mind
of the would be purchaser.
b) To encourage and facilitate the actual purchase decision and action.
c) To reassure the customer that he/she has made the right decision to purchase the
product.

Steps in the Selling Process

i) Opening the Sale Ones personal appearance, manners and behaviour and show of
respect create favourable initial responses from the prospective buyer. Ones opening
remarks are also important.

ii) Identifying customer needs and problems The Sales person should identify needs,
wants, problems and requirements of the prospective buyer before they make an
attempt to sell the product.

iii) Presentation and Demonstration having identified needs and problems of the
prospective buyer, the sales person should present an offer that best fit customer needs
and provide a solution to prospective customers problems. Product attribute and
benefits should be communicated to the prospective buyer.

i) Dealing with Customer Objections - During presentation the prospective buyer may
object to certain aspects about the offer. Such objections are an indication that the
prospect is not convinced. In dealing with objections the sales person should treat
them as requests for additional information and clarification. Objection handling
techniques should be used.

ii) Negotiating the terms of the sale At this stage, negotiations on price, delivery,
credit terms, discounts and trade-in are done. However the discretional power to
negotiate depends largely on company policy. However negotiation becomes easier if
the seller knows competitors offers and buyers needs.

iii) Closing the Sale

This refers to asking for the order and the Sales person should take the initiative to
close the sale if the buyer does not ask for the product. Proper timing and use of the
appropriate closing techniques is therefore important.

iv) Follow-up
After the customer buys, there is need to follow-up and this is vital as this will
persuade customers to make repeat purchases. More importantly follow-up ensures
proper use of the product and thereby facilitates customer satisfaction.

Functions of the Sales Manager

(i) Setting sales objectives and strategies.
(ii) Recruiting and selection of sales people.
(iii) Motivating sales force.
(iv) Sales force organisation and this includes deciding on the size of the sales force,
territory design and planning.
(v) Training of the sales force.
(vi) Evaluation and controlling of sales activities and the sales force.
(vii) Preparing the sales budget.

4. PUBLIC RELATIONS AND PUBLICITY

Public Relations Is defined as the deliberate planned and sustained effort to
establish and maintain a mutual understanding between an organisation and its
publics.
Purpose The purpose of public relations is to present a positive image of the
organisation to publics such as shareholders, customers, government, employees,
 suppliers etc and to promote understanding. Public Relations has a responsibility to
inform, educate and avoid unfavourable news coverage especially in times of crisis.
Public Relations should turn minds from a negative state to a positive state through
what is referred to as the Transfer Model.
TRANSFER MODEL

NEGATIVE STATE POSITIVE STATE

HOSTILITY SYMPATHY

PREJUDICE ACCEPTANCE

APATHY INTEREST

IGNORANCE KNOWLEDE

The transfer model illustrates the role of PR in times of disaster or crisis.

(i) In times of a crisis in an organisation, Hostility occurs in the various publics, which
may be a result of missing information. In such a case there is an urgent need to
satisfy the publics desire for information so as to convert hostility to sympathy.
(ii) Converting prejudice into acceptance in a crisis situation is very important. The
situation may be handled well and communicated through effective PR, which lessens
prejudice.
(iii) Changing apathy to interest is also crucial in times of crisis. Apathy towards the
organisation develops and tactical and effective PR should change apathy to interest.
(iv) Changing ignorance to knowledge is of particular importance in a crisis to enable
publics to know exactly what has happened, how it has happened, where it happened,
whether it would happen again and the long term implications. The company should
speak with one voice and avoid conflicting statements.

Public Relations Techniques

As PR is a long term effort by the organisation to improve or sustain its image, various
techniques are used and these are as follows:-
(i) organised visits to the company
(ii) Sponsorship
(iii) Community projects
(iv) Company publication and this include annual reports
(v) Press releases
(vi) Community meetings

(b) Publicity
Publicity refers to information appearing in the media, which is concerned with
products / services, or the company and is secured as editorial rather than paid for
space. Publicity is an effective communication tool as it lessens the effect of negative
news and is seen as a truthful and credible source of information.

Other Promotional Activities

a) SPONSORSHIP - Defined as financial patronage given to individuals, participants,
events, commercial TV and radio programmes and other activities by commercial
organisations. Sponsorship is an effective and significant technique where a company
decides to sponsor certain events. Marketers should give serious consideration to the
inclusion of sponsorship in the mix when deciding on the Integrated Marketing
communications. Typically sponsorships are directed towards sport, arts and culture,
music, education, environmental issues and other good causes. Examples are Madison
sponsoring the soccer league, Net one sponsoring the Zimbabwe open golf
tournament, Jewel Bank sponsoring sports news on television etc.

Benefits of Sponsorship The primary benefit from a sponsorship is brand building

where a company makes concerted efforts to build a strong brand. The benefits of a
strong brand are:
i) it reduces competition
ii) it increases customer retention
i) it creates a platform for other products, which can ride on the success of the strong
brand.

Purposes of Sponsorship The purpose of sponsorship can be looked at from three

perspectives namely:-

i) Advertising Sponsorship may be aimed directly at promotional purposes to raise

awareness levels in their products. For example when Econet Wireless sponsored live
coverage of the World Cup in 1998 and 2002 there was constant mentioning of the
sponsor and their products and this created a lot of awareness.

ii) Marketing - It may be a companys marketing policy to associate a companys

product or service with certain demographic groups by sponsoring activities which
interest them thereby positioning a product or brand by sponsoring an interest
associated with a certain specific market segment. For example Dairiboard (Pvt.) Ltd,
sponsoring athletics, Coca-Cola sponsoring Coke on the beat musical programme.

iii) Public Relations Sponsoring may be directed at creating goodwill, establishing

good reputation and understanding, showing responsibility or providing a service.

b) DIRECT RESPONSE DATABASE MARKETING

Definition
Direct - Response Marketing is defined as selling goods and services direct to
customers in response to orders produced by direct mail, catalogues, press, television
or other advertising. Direct Response Marketing goes direct to an identified person or
household and creates a direct exchange of information and response between two
parties.
Forms of Direct Response Marketing
i) Telemarketing This refers to using the telephone selling directly to customers.
Telemarketing saves time and money and is useful when the market is small or when
customers are in hard to reach places.
ii) Direct Mail This involves single mailings that include letters, advertisements,
samples etc send directly to consumers. Direct mail is effective as it goes direct to the
intended target market and more importantly direct main adverts are read more that
those in mass media as newspapers, magazines, television or radio.
iii) Catalogue Marketing A catalogue is a list of items or products by an organisation
and catalogue marketing refers to selling through catalogues. Catalogues can be
mailed to consumers, made available through newspapers or in shops. For example
Pelhams use catalogue marketing as they insert catalogues in newspapers.
iii) Television Marketing This refers to advertising on television or giving information
about goods and services on television and then ask consumers to respond directly to
the company by phoning a given number. Television marketing takes two forms
namely Direct Response Advertising where customers dial telephone number and
place orders after an advert and Home Shopping Channels where an entire television
station or program is dedicated to selling of goods and services.

Benefits of Direct Response Marketing

Direct - Response Marketing entails buying and selling without the use of shops or retail
outlets and its benefits are:-
i) Shopping is made convenient There is convenience to customers as they respond to
direct mail by placing orders and receiving products at home. It saves time as
customers do not leave their homes.
ii) The seller can build close and continuos relationships with each other through regular
mailing which update customers on the latest offers.
iii) There is privacy to the seller as competitors are not in a position to see the sellers
tactics and strategies.
There is high response rate as marketing efforts are directed to individuals. More
importantly Direct Response Marketing offers easy response measurement as results
are direct and immediate unlike when they buy from retailers.

(c) DATABASE MARKETING

A customer database is an organised set of data about individual customers or
prospects, which the company can use to sell products and services and maintain
customer relations. Insurance companies, building societies, producers maintain a
customer database. A customer database contains information about each customer.
Information categories contained in the customer database include:-

i) Basic information name, address and telephone number.

ii) Personal details age, gender, occupation, type of housing, income etc.
iii) Transaction data frequency of purchase, time of purchase, credit cards, how and
when the customer pays.
Benefits of Database Marketing
A rich customer database contains vital information, which makes it possible for marketing
efforts to be directed to individuals. The benefits of such a marketing approach are as
follows:-
i) Locating good prospects As information contained in the database shows frequency,
time, payment loyalty and value of business customers bring to the organisation, it is
easy to identify new opportunities and thereby achieve a competitive position in the
market.
ii) Increased understanding of customer needs from the information available in the
customer database. Marketers are in a position to monitor and understand
consumption patterns, resulting in them anticipating future customer needs.
iii) Improved quality of information flow for marketing planning. Marketers use the
information from a customer database for purpose of marketing planning and this
results in the formulation of effective tactics and strategies to achieve set objectives.
iv) More efficient development of the Marketing Mix for targeted segments. Detailed
information about customers will enable development of a tailored marketing mix to
suit each targeted segment.

Summary

Promotion is an integral and fundamental element of the Marketing Mix, which ensures
communication between an organisation and its customers and other relevant groups. For
marketers to be effective communicators they should know the communication process, that
is understanding how messages are conceived and transmitted from one source to another
party.

Promotions consists of Promotional Mix elements namely advertising, sales promotion,

personal selling, public relations and publicity. Advertising informs consumers about
products or services with a view to make them buy. Selection of the proper and suitable
media is important for advertising to be effective and marketers should understand
characteristics of each media. Measuring advertising effectiveness is important to ensure that
the organisation does not waste resources and to achieve this marketers use communication
effect research and sales effect research.

Sales promotions are incentives used to motivate buyers into action. The incentives are
targeted to consumers, traders and the sales force to induce them into action. Personal Selling
is another promotional mix element that provides face to face interaction between the seller
and the potential buyer. Public relations is also important at is ensures mutual understanding
between the organisation and its various publics.

However organisations also make use of other promotional activities such as sponsorship and
Direct Response Marketing. The bottom line is that in developing an integrated promotional
programme marketers should give serious consideration to all promotional mix variables
namely:- advertising, sales promotion, personal selling, public relations and publicity,
sponsorship and Direct-Response Marketing.
Examination Questions

1(a) Explain the importance of AIDA to marketers (5 marks)

(b) Show how marketers are guided by AIDA when creating an integrated promotional
campaign (15 marks).

2(a) What is the purpose of sales promotion (5 marks)

(b) Using current examples illustrate 3 sales promotional campaigns, each of which has
different objectives (15 marks).
3(a) Explain why, when creating advertising campaigns, there is no difference between a
product and a service. (8 marks)
(b) Use 2 examples to show how sales promotions may support a product (6 marks).
(c) Use 2 examples to show how sales promotions may support a service (6 marks).

4. Explain with examples each of the following

(a) Push strategy (5 marks)
(b) Pull strategy (5 marks)
(c) Self-liquidator (5 marks)
(d) Above the line (5 marks)
(e) Sponsorship (5 marks)
(f) Banded Pack (5 marks)

5. You sell your products through intermediaries and are dependent upon them for the
conversion of enquiries into Sales. List and explain the action you take to maximise
Sales. (20 marks
6(a) Why do identical product or services need different promotional mixes when sold into
different market segments (8 marks)
(b) Choose two products or services that are sold into different Market segments.
Compare and contrast their promotional mixes and comment on any similarities and
or differences (12 marks).
7. Write a report to your Managing Director highlighting the main differences between
advertising and public relations and the type of activities they are each likely to
perform (20 marks)
8. Explain how Public Relations is useful to an organisation when Market conditions are
(a) extremely bad (10 marks)
(b) extremely good (10 marks)

9(a) Describe with suitable example the differences between customers and consumers
(5marks)
(b) Explain the elements within the communications mix (5 marks)
(c) How can the communications mix reinforce the process of selling to the customer (15
marks).