Business SL

What is The 4 Ps: Place and Promotion?

What is the definition of promotion and why is it important of doing business in order to get the right product to the right consumer?

Promotion is the activities concerned with communicating information about a firm’s product to consumers. It is done to increase the sales of a product or service, and also to retain current customers. It’s important for a business to get the right product to the right customers so that the business can sell as much of their product as possible.

Summarize the main differences between above-the-line and below-the-line promotion?

In above-the-line promotion, the business relies on a paid form of communication that utilizes independent mass media firms to take control over the advertising (television, radio, newspapers, etc.) of the business. The main difference would be that in this type of promotion, the business tries to reach as many people as possible because it has a wide target audience. In below-the-line promotion, the business has direct control over the promotional activities and doesn’t use a firm. Instead of reaching a wide audience, this focuses on promoting to consumers who they know are interested in their products.

For each of the following products decide the best methods of above/ below-the-line promotions to use. You can choose more than one method for each one but you will need to give reasons for your choice.

  1. A new pop music magazines for young girls
    1. Use above the line promotion especially informational advertising and persuasive advertising. This is done to get as much recognition for new customers as possible although the target audience are young girls.
  2. A new restaurant near a housing and shopping development
    1. Using above the line promotion especially informational advertising. This is done to get as much customers as possible since a restaurant is targeted to everyone. The restaurant could also do some opening discounts to boost the opening day sales.
  3. A major national event, such as sporting/ running, art, music, etc
    1. Above the line promotion is key for the major national events done because the goal for a major national event is to gain as much awareness and attention as possible. Informative advertising is also paired with this because people will need to know as much information as possible so that they are able to join the event.
  4. A brand of goods, the sales of which have reached maturity and are starting to decline
    1. The brand could use above the line promotion where it does reassuring advertising so that the current customers can be assured to keep on buying their products or services. Other than that, the company could also do below the line promotion where they can focus on their current consumers of the product and give out promotions such as discounts so that current customers will keep continuing to purchase their products or services.
  5. A brand of goods or services which have started launching (introduction stage) in the market
    1. When a product is in the introduction stage, it is best to get it as much publicity as possible and therefore it is best to use above the line promotion to get reach as much people as possible. Informative advertising should be done to get as much people informed as possible.

Select a local business that you believe is poorly promoted. Prepare a suitable promotional mix to improve the effectiveness of its promotion.

    1. A local business that is poorly promoted would be a small local restaurant that only opens for breakfast near where I live. It’s called Ibnaroem and it is actually famous around the area where I live in. However, the lack of innovation in the menu drives some customers away. A good promotional mix to use for this small business with limited funds would be below the line promotion because the company can then do direct marketing to the customers. The business should be more innovative in their menu and then after updating the menu they could spread out flyers of their menu in the local area.

Using a business of your choice, evaluate how new technologies are having an impact on its promotional strategies?

  1. Video games companies such as Rockstar Games for example is almost 100% relying on technology to promote the items they sell. Other than television ads, sponsorships, flyers, events or other promotions, they heavily rely on online advertising (using YouTube and online banners), mailing lists, twitter posts, online forums or communities, and other things online to promote hype to their products.

What is the distribution channel and why is important of doing business in order to get the right product to the right place?

  1. The process or the path through which goods and services travel from the vendor to the consumer. It is important for the business because by having the appropriate distribution channel the business can sell more products at a faster rate.

Examine which distribution channels are likely to be most effective for each of these industries:

  1. Clothing
    1. The clothes usually come from the manufacture where then it gets supplied into the supplier and sent into the distributor where the distributor distributes the product into multiple wholesalers and retailers.
  2. Jewellery
    1. The jewel should go from the mining center into the distributor where a business can either buy it raw and create jewelry out of it or buy it pre made from the distributor.
  3. Bakery
    1. From the bakery directly go into the retail store or it should go to department stores and minimarkets.

There are many distribution channels to consumers, explain differentiate between them and the example.

  1. Direct Distribution Channel
    1. Internet, catalog, sales team and more are just some example of direct distribution channel where the business is trying to directly reach the customers and sell the products to them. In this channel, the company will earn more profits since they will sell their products in their MSRP.
  1. Indirect Distribution Channel
    1. Wholesale, distributor, dealer, retailer, and more are just some examples of indirect distribution channel where the business relies on third party buesinesses to sell their products. In this however, the business will earn less profit since they have to sell their products not in their MSRP so that the third party companies will purchase their products in bulk.

Pick one product either new or exist (almost decline) by your own. How will you promote and which is the distribution channels of your product? Give more explanation and example if it is needed.

Blackberry phones is a product that is currently declining in sales. I will promote We need to promote to help with spiking interest because blackberry is declining in sales and interest. Without promotion, potential customers might be hesitant on purchasing our product or even ignore the product completely because they might be convinced to buy a competitor’s phone. When promoting products, we need to convey a suggestive message trying to persuade people to like the product so that the reputation can increase and at the end sales will increase. In the example of Blackberry, since our brand is pretty wealthy and well known among the mobile gadget industry, we can carry out promotions such as advertising on TV and other types of media. Pricing promotions can also be done where we can put out bonuses and discounts when buying certain products that is currently being sold. The distribution channel we could use is that our products should be available online and in retail stores worldwide since the reputation of Blackberry and Research In Motion is good and by rebooting our previous flagship devices we may be able to regain the mobile phone market share. By having our own retail stores and by selling our products to other retailers, we can quickly sell phones to as many people and to diverse amounts of people. We should also use a direct distribution channel where customers can directly purchase online through our website and in this we can earn more money because we don’t rely on distributors and retailers to sell our products.


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