Presentation on theme: "Goals of the Promotional Mix. Effect on Target Market Price, Product, Place, Promotion ProductPlace Price Promotion Target Market Using the overall goals,"— Presentation transcript:
Goals of the Promotional Mix
Effect on Target Market Price, Product, Place, Promotion ProductPlace Price Promotion Target Market Using the overall goals, marketers combine the promotional mix into a coordinated plan which reaches their target market.
What is Promotion? Any form of communication a business uses to let people know about its products and improve its public image Promotion – Influences people’s opinions or elicit a response. Few goods or services can survive in the marketplace without effective promotion Promotion Strategy – Convinces target customers that the goods and services offered provide a differential advantage over the competition – Most strategies use several ingredients which may include advertising, sales promotion, public relations and personal selling.
Goals of Promotion Promotion has 3 main goals – Inform – Persuade – Remind
Inform Inform potential and current customers of a new product or service or an improvement to an existing product Usually takes place in the introduction stage of the product life cycle – During this stage a great deal of emphasis is placed on providing information to the customer People usually won’t buy a good or service until they know its characteristics and benefits Expectation is that the information will help consumers make more intelligent purchasing decisions
Inform Some products & services require complex and detailed promotion – Automobiles, electronic equipment, services Established products also use promotion to inform – When a product is improved or reformulated Arm & Hammer used promotion to encourage people to put baking soda in their
Persuade Attempts to encourage a customer to take a specific action, such as purchasing a product – Ex: encouraging people to purchase a healthier brand of bread Usually occurs during the growth stage of a product life cycle – At this point customers have a general awareness of the product and how it can fulfill their needs Moves from informing customers about a product to persuading them to buy Marketer emphasizes the product’s advantages over competitors
Persuade Persuasive promotions often include coupons, rebates, or free samples to provide additional incentives to buy Persuasion is used throughout product life cycle for products that are competitive and similar to other brands
Remind Remind customers about existing products on the market Remind customers about how good things taste, how attractive products look, or how companies have satisfied needs and wants in the past Used in the maturity stage
Remind Eat them again for the first time “Classics” theme to remind adults of what mom used to serve