5.03 Coordinate Promotional Efforts. SEM II. Implementation of the push or pull strategies will depend on the identified target market
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Implementation of the push or pull strategies will depend on the identified target market
Push strategies – used by a manufacturer to convince or “push” retailers to carry and promote products in their retail establishments. 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 the products. Relies heavily on advertising.Consider the Audience
Primary target markets are the core group of consumers on which promotional efforts are focused.
Secondary target markets are consumers who occasionally purchase the product because of one identifying factor.
Example: A teenage daughter who wants a ticket to a concert.
Example: The parent that will be deciding on whether the purchase of the ticket will occur.
Example: The friend who will accompany the daughter to the concert.
Example: The parent who will pay for the ticket.Consider the Audience (Continued)
Marketers should consider the following when selecting promotional tools:
Product life cycles
Current market characteristics
Consumer decision-making process
Needs to be reviewed to ensure companies are reaching their intended audienceDiscuss the promotional mix
Budget allotments tools
Determine current budget as a stand-alone budget, aside from the entire organization’s budget
Budget from previous year and future issues are not taken into consideration
Imitation on competitors
Budget is set up to mimic competitors
Example: McDonalds funded the Ronald McDonald House and other fast-food restaurants followed with their own efforts.Methods of designing the promotional budget
Proportion of revenue tools
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
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.Methods of designing the promotional budget (continued)