Selecting the Promotion Mix for a Particular Product
Promotional Objectives
There are three main promotional objectives: inform the market, increase demand, and differentiate a product.
LEARNING OBJECTIVES
Explain the objectives and characteristics of a promotion mix
KEY TAKEAWAYS
Key Points
- Increase demand: These strategies are used during the product life cycle in order to increase sales.
- Present information about the product: In order for customers and consumers to want the product they need to understand what the product is.
- Differentiate a product: This is especially important if there are multiple competitors in the same market.
Key Terms
- product life cycle: The process wherein a product is introduced to a market, grows in popularity, and is then removed as demand drops gradually to zero.
- differentiate: To show, or be the distinction between two things.
- marketing mix: A business tool used in marketing products; often crucial when determining a product or brand’s unique selling point. Often synonymous with the four Ps: price, product, promotion, and place.
Promotion Mix
The promotion mix is an element of the marketing mix. It includes advertising, public relations, personal sales, and sales promotion. Mediums used for promotion include: the Internet, television, advertisements, special events, endorsements, newspapers, and magazines. Different approaches are needed for each medium in order to be successful.
Marketing Mix: The marketing mix includes product, promotion, price, and place.
Promotional Objectives
There are three main objectives of a promotional mix:
- Increase demand: These strategies are used during the product life cycle in order to increase sales. Eventually a product will reach its saturation point, at which time investing in sales will decrease as the company focuses its attention on a new product.
- Present information about the product: In order for customers and consumers to want the product they need to understand what the product is and how it benefits them. Information about the product will differ depending on the specific target market.
- Differentiate a product: This is especially important if there are multiple competitors in the same market. For example, Apple was able to differentiate itself in the computer industry. For many years it was the preferred computer for those who had advanced computing skills. Then Apple did an advertising campaign to show general users how easy it is to use. This took advantage of the complaints the market had over Windows operating software, which came standard with most PCs.
In order for a market to accept a new product they need to know how it address their pain point. Information about the product should address the “what’s in it for me” aspect that is inherent in human nature.