Download 5.03 - ABSS

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Implement the push or pull strategies.
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Push strategies are used by a manufacturer to
convince or “push” retailers to carry and promote
products in their retail establishments. This strategy
relies heavily on personal selling and sales promotion.
Pull strategies are directed towards customers to
increase their interest and demand for products.
Customers will “pull” or convince retailers to carry
sports or entertainment products. This strategy relies
heavily on advertising.
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Primary target markets are the core groups of
consumers on which promotional efforts are
focused.
Secondary target markets are consumers who
occasionally purchase the product because of
one identifying factor.
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Audiences include:
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Influencers. Example: A teenage daughter who wants
a ticket to a concert.
Decision-makers. Example: The parent that will be
deciding on whether the purchase of the ticket will
occur.
Followers. Example: The friend who will accompany
the daughter to the concert.
Purchasers. Example: The parent who will pay for the
ticket.
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Inform the consumers of the product.
Persuade the consumers to purchase the product.
Remind the consumers of the availability and
benefits of the purchase.
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The promotional mix should be interdependent
and utilize several promotional tools.
Marketers should consider the following when
selecting promotional tools:
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Product life cycle stage.
Consumer segmentation.
Current market characteristics.
Consumer decision-making process.
The promotional mix needs to be reviewed to
ensure companies are reaching their intended
audience.
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Budget allotments.
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Determine the current budget as a stand-alone
budget, aside from the entire organizations budget.
The budget from the previous year and future issues
are not taken into consideration.
Imitation of competitors.
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Budget is set up to mimic competitors.
Example: McDonalds funded the Ronald McDonald
House and other fast-food restaurants followed with
their own efforts.
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Proportion of revenue.
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Allocation of budget based on percentage figures.
Example: Promotion gets 15% of the current years
sales revenues to spend the following year.
Activity-based cost method.
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Set objectives, determine the costs and work within
them.
Example: The Carolina Hurricanes devise a
promotional plan for a new ad campaign without
preparing a cost analysis. After the campaign is
complete, costs are determined for each task in the
promotional plan.
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Media is selected based on the target market.
Advertisers must look for creative ways to reach
their audience and uniquely position their
product due to advertising clutter.
Venue advertising has increased as changes in
technology allow for frequent changes to signage
and sponsors.
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Product demonstrations and on-site displays are
growing in popularity.
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Usually set up as pre-event entertainment.
Example: Tony Stewart’s Home Depot showcar is on
display outside a hospitality tent at the Coca-Cola 600.
The Internet offers new and innovative ways to
promote products.