Question

• Define promotion, advertising and publicity.

• Explain why a business should focus on its brand.

• How is penetration pricing different from skimming pricing?

• Define philanthropy and explain why some marketing experts call philanthropy "the fifth P," and why it is important to entrepreneurs.

Answer 1

(a) Promotion refers to the personal involvement of companies to their customers by endorsing celebrities, organising contests, providing premium prizes and gift vouchers etc in order to increase awareness of a product or service amongst public. Promotions are dome on short term basis to increase the sale of products or services which are very cost effective method to increase the sale of products.

On the other hand, advertising refers to paid network like newspapers, magazines, TV, social media etc are used to send messages to the public by companies to build brand image and increase the sale of a product

Publicity refers to the gaining visibility of public about a product and send messages and information to as many customers as possible within a short span of time by giving public speeches, conducting seminars, offering cheritable donations etc

(b) Brand of a company represents the logo, reputation, customer experience, advertising and overall perception of people toward the company. So when the brand name of a company works, it is very helpful for a business to exist in the market for a long run. A business should focus on its brand as it is the way to bring customers for their products which further strengthen its root by referrals. Besides a good brand name in the market of a business motivates its employees to work harder and keep the name of the brand intact. Besides focusing on the brand of a business will do justice to the demands of customers also as customers always get attracted to the brands which fulfil all their demands.

(c) Both the penetration and skimming price are marketing strategies which are implemented by companies during the launch of a new product or service. The penetration price is a marketing strategy where the launching price of a product is low to grab the attention of more and more customers in order to secure market share. On the other hand, skimming price is implemented when companies launch some unique products for which there are no competitors in the market. The initial launching product is very high in this case but it starts decreasing with the new entrants in the market.

(d) Philanthropy refers to the developing humanity by people who desire to improve human welfare by charitable giving on a large scale. Donating money for the upliftment of living conditions of people, volunteering to raise the quality of life of the needy, providing free foods and health check ups are some of the examples of acts of philanthropy.

It is very important for entrepreneurs to do philanthropy works in order to bring difference to the society as they will always earn from the same society. Business expands when the philanthropy acts of entrepreneurs help in building their business brands. it also helps in building relationships with clients as people always prefer to do business who have good ethics and share their values for the welfare of their community.