Nature of Product Stage in PLC Price Funds Available Factors that influence the effectiveness of a promotional to mix: Nature of the market Nature of the product Stage in the product life-cycle Price Funds available for promotion Nature of Market DEVELOPING AN OPTIMAL PROMOTIONAL MIX
Nature of Product Stage in PLC Price Funds Available Highly standardized products with minimal servicing requirements usually need less personal selling than custom products with complex features and/or frequent maintenance needs Consumer products are more likely to rely heavily on advertising than are business products Nature of Market DEVELOPING AN OPTIMAL PROMOTIONAL MIX
Nature of Product Stage in PLC Price Funds Available Promotional mix must be tailored to the products stage in the product life- cycle In the introductory stage, there is a heavy emphasis on personal selling to the to the intermediaries However, advertising and sales promotion help to create awareness and stimulate initial purchases Nature of Market DEVELOPING AN OPTIMAL PROMOTIONAL MIX
Nature of Product Stage in PLC PricePrice Funds Available Advertising dominates the promotional mix for low- unit-value products due to the high personal contact costs of personal selling Consumers a high-priced items like luxury cars expect lots of well- presented information via videocassettes, CDs, fancy brochures, and personal selling Nature of Market DEVELOPING AN OPTIMAL PROMOTIONAL MIX
15-91 THE VALUE OF MARKETING COMMUNICATIONS Promotional strategy has become increasingly important to both small and large firms Its effectiveness to encourage attitude changes, brand loyalty and increase sales is well-documented Business Importance Social Importance
15-94 Economic Importance Business Importance THE VALUE OF MARKETING COMMUNICATIONS Effective promotion has allowed society to derive benefits not otherwise available Promotion increases the number of units sold; the resulting economies of scale lower production costs and allows lower sales prices Social Importance
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