Advantages and Disadvantages of Promotional Methods (Competitions…
Advantages and Disadvantages of Promotional Methods
Contest enable you, the business to engage with their customers
This could exponentially increase goodwill
Many people may recommend the business to their friends.
It costs money to hold a large competition
Meaning that you may lose profits if the competition is not as popular as the business had originally anticipated.
Which leads to a decrease in profits for the business.
People have a free sample, and they enjoy the product.
This entices them to buy more of the product
Leading them to tell people they know about the product, which may increase profit because there are many more people buying from your business.
People may take advantage of the free samples and come back again and again to exploit the system.
This cots the business lots of profits that they could be earning from full-paying customers.
Thousands of people listen to the radio everyday.
This means that the business would be able to get it's name into every house, car and workplace to sell its products.
If lots of people listen to the radio, then so does the businesses competitors
This would lead to them knowing whether you have a sale on certain products, or whether you are introducing a new service or product that many people would use/buy.
They could then do things that replicate your business that could potentially increase profits grossly.
You would be advertising your products to a larger target market than intended.
This would lead to many potential customers seeing your ads and thinking you mainly focus on that type of product, for example, a unicorn party set, people may think you only sell things for young girls.
Lots of people use social media.
This means that lots of potential customers may come and visit your company if interested in the advertisement.
It is easier to expand when people see your website, because when people share your website with others, it creates a tree of sorts where they all share with other people, thus, expanding how much your business is known.
People would need to go onto your website lots to be able to get nearer the top of the web search.
As an alternative, you could pay leading search engines such as Google or Bing to automatically put you nearer the top, although that would cost much more money than a small business may own.
Large number of people watch tv all over the globe.
You can advertise to a larger range of customers
Meaning you can show people good gift ideas for close relatives or friends.
Not suitable for smaller businesses as they would focus on a local area, as opposed to a franchise who are across a larger area.
Cover certain areas so that you can tell exactly who you are asking, such as the small population who still read newspapers or those who don't have sufficient technology at home.
Not many people read them as most people can read the news online without costs to them.
This means that your business will not be seen by many people which leads to a decline in profits as you used the businesses money to but ads that will not be seen.