Let the answers be brief and accurate in high school English standard not too mu
ID: 410682 • Letter: L
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Let the answers be brief and accurate in high school English standard not too much grammar or long discussion.
CONFIDENTIAL MAY 2017ISET A/MKT4013 QUESTION 5 Promotion mix is the specific blend of promotion tools that the company uses to persuasively communicate customer value and build customer relationships. Discuss FIVE (5) major promotion tools a. (15 marks) b. Define advertising and discuss THREE (3) primary purpose of advertising. (10 marks) Total: 25 marks) QUESTION6 a)A firm's flexibility in setting price varies depending on the nature of the market Discuss FOUR (4) types of market with an example for each. (16 marks) A pricing strategy takes into account segments, ability to pay, market conditions, competitor action, trade margins and input costs. It is targeted at the defined customers and against competitor. Discuss pricing strategies to introduce a new b) product and when to use that strategies. (9 marks) (Total: 25 marks) TOTAL: 100 MARKS) END OF QUESTION PAPER Scanned by CamScannerExplanation / Answer
The elements of the promotions mix are:
a). Personal Selling.- Personal Selling is a powerful method to oversee personal client connections. The sales representative follows up for the benefit of the association. They have a tendency to be very much prepared in the methodologies and strategies of personal offering. However sales representatives are extremely costly and should just be utilized where there is a honest to goodness rate of return. For instance sales people are frequently used to offer autos or home changes where the edge is high.
B). Sales Promotion.-
Salespromotion have a tendency to be thought of similar to all advancements separated from promoting, individual offering, and advertising. For instance the Buy One Get One Free advancement. Others incorporate coupon, cash off advancements, rivalries, free extras, for example, free toothbrush with toothpaste, early on offers like free one year protection with new engine bicycle, et cetera. Every deal advancement ought to be painstakingly cost and contrasted and the following best option.
c). Public Relations.- Such methodologies are useful for making new contacts and recharging old ones. Organizations will from time to time offer much at such occasions. The reason for existing is to expand mindfulness and to energize trial. They offer the open door for organizations to meet with both the exchange and the purchaser.
d). Direct Mail.
e). Trade Fairs and Exhibitions.-
f). Advertising.- advertising is a 'paid for' correspondence. It is utilized to create dispositions, make mindfulness, and transmit data with a specific end goal to pick up a reaction from the objective market. There are many publicizing 'media, for example, daily papers (nearby, national, free, exchange), magazines and diaries, TV film, open air promoting.
G). Sponsorship. - Sponsorship is the place an association pays to be related with a specific occasion, cause or picture. Organizations will support sports occasions, for example, the Olympics or Formula One. The properties of the occasion are then connected with the supporting association.
2. Purpose of advertising:-
a). The genuine reason for advertising is to recount a story. By enabling watchers to think and make their own understanding of the advertisement, it makes greater engagement. Engagement that you can use further bolstering your good fortune to then accomplish what you may have initially thought publicizing motivation.
b). The motivations behind advertisements are to enhance the purchaser's appraising as to the item publicized versus the other contending brands. At the point when the trait of an item isn't unconventional, notices are coasted to build up the predominance of item finished other contending brands.
c). the broadly useful of notices is to manufacture an organization's picture. For all intents and purposes all organizations endeavour to manufacture their picture through notices. Some think about it as the essential target of ad.
3. Pricing strategy is very important issue. On that note we classify them into different market structure.
A). Perfectly competitive market price strategy- In this structure, a perfect pricing strategy occurs at equilibrium. The market sets the product price. In this case, the firm becomes the price taker. As long as production costs fall below revenue, perfectly competitive markets continue to operate.
b). Monopolistically competitive marketing strategy- there exist different prices in the market due to the differentiated products. Also, since there are many competitors, a firm won’t be affected by another firm’s strategy. As a result, companies will have control over their own prices.
c). Oligopolistic competition market- Companies set their prices low in a bid to preserve their market share from competitors. With few sellers, a company can only affect the market prices but cannot control it. As a result, competition is based on product differentiation and service, but not price wars.
d). Monopoly market structure- A monopoly can comfortably set prices due to the absence of competitors.
4. Pricing strategies for new product introduction:-
a). Price skimming- This calls for setting a high cost for another item to skim most extreme incomes layer by layer from those fragments willing to pay the high cost. This implies the organization brings down the value step astute to skim most extreme benefit from each section. Because of this new item valuing technique, the organization makes less yet more productive deals.
b). Penetration pricing- Instead of setting a high initial price to skim off each segment, market-penetration pricing refers to setting a low price for a new product to penetrate the market quickly and deeply. Thereby, a large number of buyers and a large market share are won, but at the expense of profitability. The high sales volume leads to falling costs, which allows companies to cut their prices even further.
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