Business HSC 2014 practice essay PDF

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Practice essay response to Business HSC 2014 Exam...

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Assess the importance of using a mix of promotional strategies in the marketing of goods and services (question 27, HSC 2014) Pr omot i oni same t hodus e dbybus i ne s s ’t oi nf or ma ndr e mi ndat a r g e tma r k e toft hepr oduc t sb e i n g offe r e d ,wi t hbus i ne s sa dopt i n gt hi sa sama r k e t i n gs t r a t e gyt oi nc r e a s ea wa r e ne s so fi t sp r od uc t s .The us eofp r o mot i onl i e snume r ou ss t r a t e gi e swor kt og e t he rs u c c i nc t l yt oc r e a t eapr omo t i onmi x, a i d i n g i na c h i e vi n gt hebus i ne s s ’ma r k e t i n gg oa l s . Al t houghpr o mo t i ona ls t r a t e gi e sa r es e e nt or e ma i n e ffe c t i v ewhe nus e di nde pe nd e nt l y ,bu s i n e s s ’s uc ha sQANTASh a v ef oundi tt obei nt he i rbe s ti nt e r e s t t obl e ndp r omo t i ona lme t h odsi no r de rt oma xi mi s es a l e s . Bo t hbus i ne s sc ombi nea d v e r t i s i n g , s a l e s pr omo t i onsa ndpubl i c i t yt oc r e a t et heba s i sofi t spr omot i o na lmi x .Ul t i ma t e l yi tc a nbes e e nt ha t a l t hought hebu s i ne s s ’i n v e s ta ndi mp r o v ee a c hme t hodi nde pe nde n tofon ea no t he r , b yc omb i ni n g di ffe r e n tpr o mot i ona ls t r a t e gi e si te n a bl e st heb us i ne s s ’t ot a r g e tdi ffe r e ntma r k e t i n gob j e c t i v e sa nd c a t e rt ot het a r g e tma r ke t s . Ad v e r t i s i n gi sa ne s s e nt i a lt oo lf ore ffe c t i v ema r ke t i n gt ha tc e nt r a l i s e sa r oun danonpe r s ona lme s s a g e t ha ti sc o mmun i c a t e dt hr ou ghama s sme di um. Mos tbus i ne s sus ea d v e r t i s i n ga si te n a bl e st hepr o duc t s t ovi e we db yawi dea udi e n c ei nas i n g l epr omo t i on, t husl i mi t i n gc o s t s .Byc o ns i de r i n ga t he a d v e r t i s i n gv a r i a bl e st ha ti ne vi t a bl yi mpa c tt hes uc c e s s f ul ne s so fc a mpa i gns ,bus i ne s s ’a r ea b l et ous e di ffe r e n ta d v e r t i s i n gme di ai nr e s pons et ot hi s . Ast hema r k e t i n gob j e c t i v eofmos tc omp a ni e s , s p e c i fic a l l yQANTASa ndCoc aCo l a ,i st oma xi mi s epr ofit s , t heus eofma s sma r k e t i n ga nde ma r ke t i n gi sc o mmonl ye mpl o y e da si tc a t e r st ot hec o mpa n y ’ sl a r g ebudg e ta ndt a r g e tma r k e t . QANTASi sabus i ne s st ha tha sr e c e nt l ya dop t e dama r k e t i n gob j e c t i v et ob e t t e rc a t e rt oi ndi v i dua l c us t ome r s ,us i n gdi r e c tma r ke t i n ga soppos e dt obl a nk e tma r k e t i n gt oa c h i e v et hi s .Byr e l e a s i n gi t s ‘ f e e ll i k ehome ’i n2 014b a s e donr e a ll i f es t or i e s , i te x pl i c i t l ys ho we dt heu s eofdi r e c tma r k e t i n gb y f o c u s i n gont h ec ons ume r sde s i r ef o rt h e‘ Qa nt a s ’e xpe r i e nc et obep e r s ona l i z e d ,e mpha s i z i n gt he i mp l i c i ts e r vi c eoft h ebus i ne s so v e rt h ee xpl i c i ts e r v i c e . He r ei tc a nbes e e nt ha tQANTASha sus e d a d v e r t i s i n ga sae ffe c t i v ep r omot i on a ls t r a t e gya si t sr e v e nuei nc r e a s e db y$1. 6bi l l i oni nt hef ol l o wi n g fina nc i a ly e a rs ho wi n gt hebe n e fit sofc a t e r i n gt ot hes pe c i fict a r g e tma r ke t .The r e f or ei tc a nbes e e n t ha ta d v e r t i s i n gi sapr o mi ne nta ndvi t a lpa r toft h epr omot i onmi xa si te na b l e spr oduc t st obe c o mmun i c a t e do nama s ss c a l ewhi l es t i l lt a r g e t i n gt hes pe c i ficne e dsoft a r g e tma r ke t s . I na d di t i ont ot hi s , s a l e sp r omot i onsi sa not he rbr a nc hoft h epr omo t i o nmi xwhi c hc ont r i but e st o s uc c e s s f ulma r k e t i n gf o rbus i ne s s ’ . Ast hi sme t ho di n v ol v e sadirect inducement to customers, It is seen to be used specifically by companies wishing to increase consumer interaction. The marketing strategy is intertwined with advertising as advertising is the medium upon which sales promotions are marketed across, working together as an attempt to sell more of a product. Offering sales promotions is integral to business’ as it ensures the business is gaining a competitive advantage against customers through competitive pricing and responding to consumer needs of affordable products. As QANTAS’ profits were marginalised by the brand’s limited flight paths, its introduction of its subsidiary Jetstar was significant, using sales promotions in the initial stages to attract customers and build awareness. This was seen when 100 000 tickets in 2004 were released at $49,

drastically increasing the demand for tickets. By using the sales promotion method, QANTAS was able to build a consumer base for Jetstar whilst still remaining profitable as the airline offered “no frills”, thus reducing expenses. Hence QANTAS has effectively identified the importance of sales promotions within the promotional mix as it not only expands the business’ customer base but also meets the marketing objective to maximise profits. Companies also use publicity within the mix of promotional strategies as an effective method of marketing and meeting objectives. With publicity offering free exposure for companies, it is a powerful tool as although the timing is not predictable, the benefits are vast as no

expenses are incurred in gaining exposure from publicity. However, business’ may find themselves investing in sponsorships and opinion leaders as a way to encourage publicity ultimately enhancing the image of its products and raising awareness. For global business’ such as QANTAS and Coca Cola, publicity is essential as it ensures the marketing efforts are reaching different global regions and allows for additional exposure without further costs. Being a global company, QANTAS has been able to appeal to a global audience by employing John Travolta as a brand ambassador. Using a global figure as a opinion leader has proved beneficial for the business in promoting a positive brand image as the actor is well respected and the opinions are received well by audiences. Here the importance of publicity is identified as it creates a favourable image amongst consumers by being a brand supported by an opinion leader.Thus , i tc a nbes e e nt h a tpubl i c i t yi sa ni mpor t a nta s pe c toft hepr omo t i onmi x i npr o v i di n gf r e ema r k e t i n ga c r os sma s sme di u ms ....