10 Marks Question

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1) Sales revenue is the income a business generates from the sale of goods or

services. calculated as the average sales price times the number of units sold.
2) is a form of marketing in which a company pays for the right to be associated with a
project or program.
3) As the FIFA World Cup is one of the most important sporting events in the world and
has billions of spectators all over hundreds of countries, appearing in it and being
associated with it, means a lot of benefits.
First of all it’s a huge opportunity to promote a product, as TV advertisements are an
above the line marketing strategy, they will have a huge audience and will target
billions of people in this case (40 billion viewers in 200 hundred countries). This
would bring, positive reputation, due to the connection with such an important event.
Then, the possibility to make a huge amount of capital is another benefit, as billions
of people would get interested in the product, bringing MNCs the opportunity to have
more loyal customers to the brand.
More profit, more loyal customers and more visibility means high market share and
power. It is not a case that big companies such as Qatar Airways were willing to
become sponsors.
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1) Promotion is a marketing tool, used as a strategy to communicate between the
sellers and buyers
2) is an exhibition in which companies promote their products and services. They give
the opportunity to possible buyers to have an on site demonstration of the product.
For the car industry trade shows are extremely important because there is no
possibility of testing a car without buying it or renting it (which attracts less
customers), which means that car manufacturers have the chance to demonstrate
some USP to push customers into buying it.
3) Direct marketing doesn't work with completely new cars, people don't know the
product, haven't seen it or even heard about it, so a demonstration might be more
appreciated and might lead possible customers to buy the product. Rather than a
simple advertisement in which it is difficult to describe the product, in front of which
possible customers might be sceptical, a clear demonstration is better.
Trade shows could have a lower cost of production compared to classic
advertisements, they can be done through only one person, without many resources,
just with the car.
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1) A target market is a group of people that have been identified as the most likely
potential customers for a product because of their shared characteristics such as
age, income, and lifestyle.
2) Promotion might help the business grow and make enough profit to buy its own
location, as changing venues every time is confusing and uncomfortable for many
families.
Promotion also might indeed help families to discover the business, as a business
that does not have a location is difficult to find or get to know. This might bring more
profit and more opportunities to the business.
3) A promotional mix is a combination of marketing methods including online marketing,
word of mouth, publicity etc. to achieve a specific marketing goal.
Having a good promotional mix is essential for a business to grow, it is important to
understand which promotional strategies are more suitable for a certain business and
apply them with awareness.
From what we read we understand that KDY prioritises the children’s training over
profit, he makes martial arts accessible for everyone, setting cheap prices for
parents.
One of the most effective and suitable promotional methods for businesses that want
to have little costs, in order to have cheap prices, is word of mouth. Through word of
mouth parents would rely much more on the business, but most of all they would
have the chance to know a business that may not be very famous because of the
constant change of venues. It would be enough to have a website where it’s possible
to publish feedback or simply ask to spread the word. This would cost very little and
prices would not need to increase.
It would also be possible to use direct marketing. Getting in touch directly with
customers is an effective way to make them know the business without passing
unnoticed, as the customer would be directly messaged and would also have the
option to read some important details related to the business. This strategy permits
the business to avoid spending huge amounts of capital for mass advertisements that
would pass unnoticed. In addition KDY could be also helped by the Taekwondo
Federation to email customers, this would certainly help as a governmental institution
is always considered reliable.
KDY might also use social media advertising to promote their ideas, their service,
their information and prices. It costs absolutely nothing to open a business profile.
The only cost would be for post graphics, but even that is very cheap. In this way
KDY could exploit the algorithm and get popularity more quickly. The only
disadvantage is that it may pass unnoticed, as not necessarily the social media
would target the right audience. Despite this, it is worth trying, as it is very cheap.
Sponsorship is a great way to make a business grow. KDY could be a sponsor of a
tournament or taekwondo-related event, and by doing so, it would make itself known
directly to people in its target market. Being a sponsor unfortunately does not come
cheap, but at the same time it is a price that would bring a lot in return. To be
associated perhaps with a great taekwondo fighter could encourage customers to
join his gym and not leave it. Some parents might liken the gym to the success of the
fighter and, therefore, enrol their child in the gym.

Promotion strategies are many and varied, each has its own disadvantages and advantages,
and it is important to recognise which is best for your business. KDY for example should opt
for targeted promotions that do not go unnoticed and have direct contact with the customer,
as this is a small business that does not have a location. Doing mass promotions would not
only lead the business to spend too much money, but it would also risk not having a positive
response, as it would go unnoticed and the location issue would remain vague.

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