Question

1) List and describe the factors that would influence the promotional budget. Use a Fast Food Company to answer your question. ( Subway)

Answer 1

Promotional budget are used for marketing the product or services. In case of a fast food industry or joints such as McDonalds or Subways their promotional budget factors depends on the

• Target audience: Being a fast food industry the company shpuld focus on youngsters rathert than matured people or people or community who has much more dispensable income . Thus to analyse the target audience their promotional strategy needs to be redesigned.
• Region of promotion: For metro locations where Subway as a brand is well known their marketing or promotional expenses they can bring down gradually once they get enough reach. But for location which they are on expansion mode they required more attention and required more revenue through promotion of their products.
• Mode used for promotion or communication: Medias like television, theatre advertisement, hoardings etc are costly mode for promotion. This era they are utilising more social media pages and other intenret websites for promotion of their prodicts and services.
• Specific business objective of promotion: Sometimes introduction of new variants or products or features requires new or innovative promotion Thus based on the objective of promotion cost will also vary. Same advertisement cannot communicste with customers for long while. Eye cathing but retainable advt or promotional methods can take the brand for a long time from customer point of view.