Case BAM Business Management for the IB Diploma Coursebook
IB business management, 2.4 Motivation
Summaries for Business Management for the IB Diploma Coursebook SL/HL
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4.5 THE 4PS – PROMOTION: ACTIVITY H
1. Define:
(a) above-the-line promotion
Above the line promotion refers to the type of promotion a business uses to communicate
information about their products by paying its cost.
(b) below-the-line promotion
Below the line promotion refers to the type of promotion a business uses that does not
involve any payment. This may include offering promotions, sales, or discounts.
4. Explain two other pieces of information you would like to review that would help you in
coming to a recommendation regarding the promotional mix for Penang Golf Kit Ltd.
One piece of information we might need to know to help easily recommend the most
suitable promotional mix for Penang Golf Kit Ltd would be the message the company wishes
to convey to the potential consumers. This also include identifying the image the company
wants to establish in the market. This is because the type of promotion a company does
affect the way consumers view and think about the company. In the case of Penang Golf Kit
Ltd, if they aim to establish themselves as a luxurious brand, TV advertising may not be a
good choice, whereas advertising in golfing magazines could be more effective.
Another piece of information that can help determine the best promotional mix would be
the geographical dispersion of Penang Golf Kit Ltd’s potential consumers. This is because the
company’s exposure can differ when using different promotional strategies. If the
company’s target market is more dispersed even to consumers overseas, promoting through
national newspaper advertising will not be as effective as consumers from out of the
country will not be reachable.
5. Evaluate the decision of Penang Golf Kit Ltd to pursue a promotional strategy based
almost exclusively on one of the TV advertising options outlined in the case study.
Promotional strategy refers to the methods a business uses to advertise and sell their
products to their consumers. In the case of Penang Golf Kit Ltd, they have yet to determine
the promotional strategy they believe would be the most effective. One of the options
available to Penang Gold Kit Ltd is TV advertising where they can choose between two
times: on Saturday evenings or Friday evenings.
Generally speaking, using TV advertising as the only promotional strategy for Penang Golf
Kit Ltd can receive massive exposure to their potential consumers. This is mainly because
they are scheduled to play after high-demand shows or matches with ‘estimated viewers of
over 5-6 million’. This can be seen as a great opportunity for Penang Golf Kit Ltd to gain
more recognition and market share. Another reason is because through TV advertising, the
speed of transmission would be a lot faster compared to using newspaper or magazines.
However, using TV advertising only can limit the company’s reach. Especially when the
number of young people playing golf has increased, with the advancement of technology,
many people are shifting to using other forms of electronic gadgets, making television not as
often used. This can be a problem for Penang Golf Kit Ltd if they only advertise through
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