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Integrated Marketing Communication > Selecting the Promotion Mix for a Particular Pr...
Selecting the Promotion Mix for a Particular Product
• Promotional Objectives
• Stages in the Product Lifecycle
• Target Market Characteristics
• Characteristics of the Product
• Type of Buying Decision
• Funds Available relative to Costs
• Push and Pull Strategies
• Trade versus Consumer Promotions
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Integrated Marketing Communication > Selecting the Promotion Mix for a Particular Pr...
Promotional Objectives
• 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.
Marketing Mix
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Integrated Marketing Communication > Selecting the Promotion Mix for a Particular Pr...
Stages in the Product Lifecycle
• The introduction stage of the product life cycle is where a new product is launched
into a market.
• In the growth stage of the product life cycle, the market has accepted the product
and sales begin to increase.
• In the maturity stage of the product life cycle, sales will reach their peak.
• In the decline stage of the product life cycle, sales will begin to decline as the
product reaches its saturation point.
• There is no set schedule for the stages of a product life cycle.
Firm Life Cycle
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Integrated Marketing Communication > Selecting the Promotion Mix for a Particular Pr...
Target Market Characteristics
• A geographic target market can be consumers in a city, state, or country.
• A demographic or socioeconomic target market would focus on a specific gender,
age group, income level, or education level.
• A psychographic target market would be a market that has similar attitudes,
values, or lifestyle.
• The behavioral target market focuses on occasions and degree of loyalty.
• Product-related segmentation describes a target approach for customers who
already own a specific product.
• Determining a target market approach to sales has many benefits.It can create a
Geographic Target
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more specific marketing campaign, increase sales, and decrease the number of
competitors in the market.
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Integrated Marketing Communication > Selecting the Promotion Mix for a Particular Pr...
Characteristics of the Product
• The characteristics of the product are the features that differentiate it from other
products on the market.
• When companies create a product they have specific features in mind.It can be
characteristics that improve on an existing product or ones that fill a currently
unfilled need.Promoting these features can be a successful approach.
• Characteristics of a product also help to determine the price of a
product. Premium features may be able to fetch a premium price.
• It is the combination of demand for a product and its price that help to determine
the marketing mix.
Products
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Integrated Marketing Communication > Selecting the Promotion Mix for a Particular Pr...
Type of Buying Decision
• Buying decisions are based on buying behavior.Consumer behavior and business
behavior can differ because their buying processes are different.
• Consumers will often buy on emotion or impulse whereas businesses will buy
based on need.
• The type of buying decision impacts the marketing mix and the promotional mix
for a product.It will also affect the product life cycle.
• Sometimes the type of product will make a difference in the buying decision.For
consumers, large ticket items, such as an appliance, a car, or a home, aren't
impulse items.
Market
• A company needs to know about the features of a product and how it will help fill
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a specific need.Businesses are also worried about price and return on investment.
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Integrated Marketing Communication > Selecting the Promotion Mix for a Particular Pr...
Funds Available relative to Costs
• Each type of advertising is sold at a different rate and a company has a limited
budget in which to promote a product.
• To determine the best type of promotional strategy, a company should look at its
target market.Consumers in each type of market will have a preferred form of
advertising.
• Other factors that affect the funds available for product promotion include the
budget for the overall product launch and the expected length of the introduction
phase.
Tram Advertisement
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Integrated Marketing Communication > Selecting the Promotion Mix for a Particular Pr...
Push and Pull Strategies
• A push strategy places the product in front of the customer to make sure the
consumer is aware of the existence of the product.This can work well when
manufacturers have an established relationship with customers or when the
product is an impulse purchase-type item.
• Push strategies include trade shows, showrooms, getting retailers to stock a
product, and creating a supply chain to facilitate distribution.
• A pull strategy motivates customers to actively seek out a specific product and it
best for new products or in the case when a manufacturer has a strong and visible
brand.
Push-Pull Strategy
• Pull strategies include mass media advertising, referrals, customer relationship
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management, and sales promotions.
• Companies usually use a combination of push and pull strategies in a marketing
mix.
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Integrated Marketing Communication > Selecting the Promotion Mix for a Particular Pr...
Trade versus Consumer Promotions
• The purpose of trade promotions is to help companies differentiate a product,
increase product visibility, and increase the product purchase rate.
• The purpose of consumer promotions is to increase brand awareness and market
acceptance.
• There are various types of trade and consumer promotions.
• Consumer promotion activities include rebates, coupons, premiums, contests,
kids eat free programs,reward programs, and free samples.
Point of Purchase Display
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Appendix
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Integrated Marketing Communication
Key terms
• brand awareness Brand awareness is the extent to which a brand is recognized by potential customers and is correctly
associated with a particular product.
• budget An itemized summary of intended expenditure, usually coupled with expected revenue.
• buyer behavior the process used to decide whether to purchase a product
• customer relationship management Customer Relations Management (CRM) is concerned with (among other things) the
conversion rate: percentage of customers who "try and buy" the product.
• differentiate To show, or be the distinction between two things.
• Federal Trade Commission an independent agency of the United States government that seeks to promote consumer
protection and the eliminate and prevent anti-competitive business practices, such as coercive monopoly
• 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.
• price index A statistical estimate of the price level of some class of goods or services.
• 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.
• pull strategy communication not demanded by the buyer
• push strategy communication demanded by the buyer
• target market a group of people whose needs and preferences match the product range of a company and to whom those
products are marketed
• target market a group of people whose needs and preferences match the product range of a company and to whom those
• trade Those engaged in an industry or group of related industries.
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Integrated Marketing Communication
Marketing Mix
The Promotional Mix is part of the Marketing Mix
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Integrated Marketing Communication
Market
Buyer behavior shapes buying decisions
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Integrated Marketing Communication
Geographic Target
A geographic target market can include a city, state, or country.
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Integrated Marketing Communication
Products
The characteristics of a product determine the target market and price of a product.
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Integrated Marketing Communication
Point of Purchase Display
A point of purchase or end cap display can make consumers aware of new products.
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Integrated Marketing Communication
Tram Advertisement
Different forms of advertising charge different rates and can impact the promotional mix budget.
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Integrated Marketing Communication
Why does consumer buying behavior differ from business buying
behavior?
A) Because businesses always buy items with the best terms.
B) Because consumers buy at the lowest price.
C) Because each goes through a different thought process before they
buy.
D) There is no difference, they both buy based upon product features.
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Integrated Marketing Communication
Why does consumer buying behavior differ from business buying
behavior?
A) Because businesses always buy items with the best terms.
B) Because consumers buy at the lowest price.
C) Because each goes through a different thought process before they
buy.
D) There is no difference, they both buy based upon product features.
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Integrated Marketing Communication
At what stage, in a product's life cycle, does a company make the
most profit?
A) Growth.
B) Introduction.
C) Decline.
D) Maturity.
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Integrated Marketing Communication
At what stage, in a product's life cycle, does a company make the
most profit?
A) Growth.
B) Introduction.
C) Decline.
D) Maturity.
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Integrated Marketing Communication
At what stage of a product's life cycle is competition the heaviest?
A) Growth.
B) Introduction
C) Maturity.
D) Decline.
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Integrated Marketing Communication
At what stage of a product's life cycle is competition the heaviest?
A) Growth.
B) Introduction
C) Maturity.
D) Decline.
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Integrated Marketing Communication
What product characteristics impact the selection of a promotional
mix?
A) Price and features.
B) Improvements made to an existing product.
C) How the product fulfills the needs of the target consumer group.
D) All of these answers.
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Integrated Marketing Communication
What product characteristics impact the selection of a promotional
mix?
A) Price and features.
B) Improvements made to an existing product.
C) How the product fulfills the needs of the target consumer group.
D) All of these answers.
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Integrated Marketing Communication
A target market characteristic that focuses on repeat business is
________.
A) Geographic.
B) Demographic.
C) Behavioral.
D) Psychographic
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Integrated Marketing Communication
A target market characteristic that focuses on repeat business is
________.
A) Geographic.
B) Demographic.
C) Behavioral.
D) Psychographic
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Integrated Marketing Communication
If a company selects a promotional mix based upon a target
market that buys "green," the characteristic is ____________.
A) Behavioral.
B) Product Related.
C) Demographic.
D) Psychographic.
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Integrated Marketing Communication
If a company selects a promotional mix based upon a target
market that buys "green," the characteristic is ____________.
A) Behavioral.
B) Product Related.
C) Demographic.
D) Psychographic.
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Integrated Marketing Communication
A trade promotion is important to the marketing mix of a product
because________.
A) It provides customers with better service.
B) It motivates retailers to stock and sell one product over another.
C) It encourages retailers to stock products even if they are not selling
through.
D) It discourages competitors from vying for market share.
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Integrated Marketing Communication
A trade promotion is important to the marketing mix of a product
because________.
A) It provides customers with better service.
B) It motivates retailers to stock and sell one product over another.
C) It encourages retailers to stock products even if they are not selling
through.
D) It discourages competitors from vying for market share.
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Integrated Marketing Communication
What promotional mix objective is predicated on a product having
the competitive edge?
A) Differentiation.
B) Demand optomization.
C) Consumer Knowledge.
D) Supply.
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Integrated Marketing Communication
What promotional mix objective is predicated on a product having
the competitive edge?
A) Differentiation.
B) Demand optomization.
C) Consumer Knowledge.
D) Supply.
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Integrated Marketing Communication
Which of the following statements about consumer promotions is
TRUE?
A) They are never used in conjunction with trade promotions.
B) They include bonuses and incentives for the salesperson who has
sold the most.
C) They must rely on retailer incentive programs to work properly.
D) Their primary purpose is to appeal to the end user and motivate them
to buy.
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Integrated Marketing Communication
Which of the following statements about consumer promotions is
TRUE?
A) They are never used in conjunction with trade promotions.
B) They include bonuses and incentives for the salesperson who has
sold the most.
C) They must rely on retailer incentive programs to work properly.
D) Their primary purpose is to appeal to the end user and motivate them
to buy.
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Integrated Marketing Communication
Goodyear Tire is a well known and highly respected brand. What
marketing strategy are they using when they advertise a special
rebate sale through an extensive mix of marketing channels?
A) A push strategy because retailers will need to stock product in large
quantities.
B) A consumer promotion strategy aimed at the end user.
C) A pull strategy because they have developed a powerful and
recognizable brand.
D) A trade promotion strategy involving retailers.
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Integrated Marketing Communication
Goodyear Tire is a well known and highly respected brand. What
marketing strategy are they using when they advertise a special
rebate sale through an extensive mix of marketing channels?
A) A push strategy because retailers will need to stock product in large
quantities.
B) A consumer promotion strategy aimed at the end user.
C) A pull strategy because they have developed a powerful and
recognizable brand.
D) A trade promotion strategy involving retailers.
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Integrated Marketing Communication
Which of the following best describes the rationale for the amount
of funds available relative to costs in the promotion mix?
A) The cost of the product being sold so that marketing costs can be
easily recouped.
B) The advertising that will connect with targeted market and if the
product is new or established.
C) The amount of money lost on past product launches.
D) If there will be a mix of trade and consumer promotions included in the
marketing plan.
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Integrated Marketing Communication
Which of the following best describes the rationale for the amount
of funds available relative to costs in the promotion mix?
A) The cost of the product being sold so that marketing costs can be
easily recouped.
B) The advertising that will connect with targeted market and if the
product is new or established.
C) The amount of money lost on past product launches.
D) If there will be a mix of trade and consumer promotions included in the
marketing plan.
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Integrated Marketing Communication
The process wherein a product is introduced to a market, grows in
popularity, and is then removed as demand drops gradually to
zero.
A) product life cycle
B) brand awareness
C) budget
D) Customer Relationship Management
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Integrated Marketing Communication
The process wherein a product is introduced to a market, grows in
popularity, and is then removed as demand drops gradually to
zero.
A) product life cycle
B) brand awareness
C) budget
D) Customer Relationship Management
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Integrated Marketing Communication
A group of people whose needs and preferences match the
product range of a company and to whom those products are
marketed.
A) brand awareness
B) target market
C) differentiate
D) budget
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Integrated Marketing Communication
A group of people whose needs and preferences match the
product range of a company and to whom those products are
marketed.
A) brand awareness
B) target market
C) differentiate
D) budget
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Integrated Marketing Communication
To show, or be the distinction between two things.
A) marketing mix
B) target market
C) differentiate
D) price index
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Integrated Marketing Communication
To show, or be the distinction between two things.
A) marketing mix
B) target market
C) differentiate
D) price index
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