Discuss, with the use of examples, the view that “businesses that successfully promote their products are likely to be the most profitable

Define Marketing Mix

Promotion

Use of below or above-the-line promotion methods to communicate and attract potential and existing customers to buy a business's good or service

Advanatges

Allow companies to influence consumer spending patterns and so deterring them from shopping at competitors

Allow the company to gain a competitive advantage and an increase market share/dominance within the market

Drawbacks

Short-term approach

Expensive investment in the long-run

Success is dependent on reactions of competitors

Other ways to make a company profitable

Example

Papa John (Buy 1 get one free advert)

Success depends on type of promotion used

Use of below-the-line promotion may be more successful as company is in direct and instant communication with target customers - so is more likely to result in an increase in sales and so market share

Example

Cosmic Capital

300% increase in sales on e-commerce store

Pricing

The use of different pricing strategies to attract customers to purchase a good or service due to cheapness or luxury of the good

Price penetration scheme (define)

Fitness clubs to attract customers to sign up

Depends on type of good

More beneficial for Apple to use Premium pricing scheme (define) due to higher demand for good and cost of resources

Product

Innovating or creating new products to match the needs and wants of customers

An increase in revenue and competitiveness within the market

Allow company to influence customers buying habits and so increasing their revenue levels and competitiveness within the market

McDonalds changing their menu to not include beef burgers when expanding to India (a cow is seen as a secret animal) to allow them to target the needs and wants of their customers