1What is product differentiation?
When similar products are made to appear different or better than competitors to attract consumers.
2What are some factors that differentiate products?
Customer service, convenience, value for money, social/ethical factors, environmental factors.
3What is product positioning?
Creating a product image in consumers’ minds compared with competing products.
4What is the role of promotion?
To inform, persuade and remind consumers about products to attract new customers, increase loyalty and encourage purchases.
5What are the 8 product promotion strategies?
Advertising, Personal selling, Relationship marketing, Opinion leaders, Publicity, Public relations, Sales promotion, Gender.
6What is personal selling?
One‑on‑one interaction where a sales representative persuades a customer to buy.
7What is relationship marketing?
Building long‑term relationships with customers to create loyalty.
8What is an opinion leader?
A person such as a celebrity or influencer whose views affect others’ purchasing decisions.
9What is publicity?
Free media coverage about a product that raises awareness and enhances image.
10What is sales promotion?
Short‑term inducements like coupons, discounts, loyalty programs, samples or “Buy 1 Get 1 Free.”
11What is market segmentation?
Dividing the total market into groups with shared characteristics such as age, gender, income, lifestyle, education, family stucture or location.
12What is a target market?
The group of customers a business aims its promotion at, often divided into primary and secondary groups.
13What is a niche market?
A very small, specialised segment of the total market.
14Why do businesses target young people?
They are consumers themselves and influence family and friends’ purchasing decisions.
15What are some strategies used to target young people?
Brand loyalty, internet/social media, pester power, psychologyesearch, buzz marketing.
16What law regulates false and misleading advertising in Australia?
The Competition and Consumer Act 2010 (Cth).
17What are examples of misleading advertising?
Exaggerated claims, vague statements, before/after images, fake special offers.
18What are some ethical issues in promotion?
Truth in advertising, children’s advertising, invasion of privacy, materialism, product placement.
19What was the Heinz Shredz case about?
Heinz misled consumers by marketing toddler snacks as healthy when they contained over 60% sugar.
20How can businesses monitor the effectiveness of selling techniques?
Compare sales before/after campaigns, benchmark against competitors, analyse store performance, use surveys and focus groups.
21What contemporary factors influence selling techniques?
Technology (AI, data analytics), social media advertising, global markets, government regulations.
22What is the difference between a standardised and customised global marketing approach?
Standardised uses the same strategy worldwide, customised adapts to local cultures and tastes.
23What role does the ACCC play in promotion?
It enforces consumer law, can take legal action, issue fines and public warnings against misleading advertising.