Difference between revisions of "Principles of marketing/PMKT103/Leveraging promotion tools/Overview"
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[[File:JP Starbucks Free food sample in 2013.jpg|300 pix | right | thumb|JP Starbucks Free food sample in 2013]] | [[File:JP Starbucks Free food sample in 2013.jpg|300 pix | right | thumb|JP Starbucks Free food sample in 2013]] | ||
| − | As the fourth "P", promotion and promotional tools are focused on raising customer / stakeholder awareness of a product or brand's unique value; put in place a 'call to action'; generate sales; create brand loyalty and satisfaction post-purchase. The promotional mix often includes direct (personal) selling; advertising (including web | + | As the fourth "P", promotion and promotional tools are focused on raising customer / stakeholder awareness of a product or brand's unique value; put in place a 'call to action'; generate sales; create brand loyalty and satisfaction post-purchase. The promotional mix often includes direct (personal) selling; advertising (including the web), sales promotion, direct marketing, and publicity. |
| − | + | Promotional objectives include: showing consumers information about the product; increasing demand; and differentiating it from competitors' offerings, by highlighting its differences and distinctiveness. The end-result can include: sales increases, new product acceptance, creation of brand equity, positioning, competitive retaliations, or creation of a corporate image. | |
| − | Many organizations use promotions to generate excitement and interest in their products - with giveaways, competitions, advertising, sales, and more. | + | Many organizations use promotions to generate excitement and interest in their products - with giveaways, competitions, advertising, sales, and more. For example, regarding the image on this page, Starbucks frequently provides free samples of new product introductions, to generate sales, customer excitement, social sharing (of the images on the web) and customer feedback. |
If you employ a sales staff to promote the product, how do you compensate them? If you pay a commission, how much commission will be paid per unit? Will the sales staff be given discretion on price, or do you want to send a uniform message that the price is locked in? If a new company has limited funds available for advertising campaigns, might they use public relations tactics to gain free media coverage? | If you employ a sales staff to promote the product, how do you compensate them? If you pay a commission, how much commission will be paid per unit? Will the sales staff be given discretion on price, or do you want to send a uniform message that the price is locked in? If a new company has limited funds available for advertising campaigns, might they use public relations tactics to gain free media coverage? | ||
Revision as of 22:07, 16 May 2016
As the fourth "P", promotion and promotional tools are focused on raising customer / stakeholder awareness of a product or brand's unique value; put in place a 'call to action'; generate sales; create brand loyalty and satisfaction post-purchase. The promotional mix often includes direct (personal) selling; advertising (including the web), sales promotion, direct marketing, and publicity.
Promotional objectives include: showing consumers information about the product; increasing demand; and differentiating it from competitors' offerings, by highlighting its differences and distinctiveness. The end-result can include: sales increases, new product acceptance, creation of brand equity, positioning, competitive retaliations, or creation of a corporate image.
Many organizations use promotions to generate excitement and interest in their products - with giveaways, competitions, advertising, sales, and more. For example, regarding the image on this page, Starbucks frequently provides free samples of new product introductions, to generate sales, customer excitement, social sharing (of the images on the web) and customer feedback.
If you employ a sales staff to promote the product, how do you compensate them? If you pay a commission, how much commission will be paid per unit? Will the sales staff be given discretion on price, or do you want to send a uniform message that the price is locked in? If a new company has limited funds available for advertising campaigns, might they use public relations tactics to gain free media coverage?
