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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 Free to share, print, make copies and changes. Get yours at www.boundless.com www.boundless.com/marketing

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 View on Boundless.com Free to share, print, make copies and changes. Get yours at www.boundless.com www.boundless.com/marketing/textbooks/boundless-marketing-textbook/integrated-marketing-communication-12/selecting-the-promotion-mix-for-a-particular-product-84/promotional-objectives-419-4125

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 View on Boundless.com Free to share, print, make copies and changes. Get yours at www.boundless.com www.boundless.com/marketing/textbooks/boundless-marketing-textbook/integrated-marketing-communication-12/selecting-the-promotion-mix-for-a-particular-product-84/stages-in-the-product-lifecycle-420-896

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 more specific marketing campaign, increase sales, and decrease the number of competitors in the market. Geographic Target View on Boundless.com Free to share, print, make copies and changes. Get yours at www.boundless.com www.boundless.com/marketing/textbooks/boundless-marketing-textbook/integrated-marketing-communication-12/selecting-the-promotion-mix-for-a-particular-product-84/target-market-characteristics-421-4126

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 View on Boundless.com Free to share, print, make copies and changes. Get yours at www.boundless.com www.boundless.com/marketing/textbooks/boundless-marketing-textbook/integrated-marketing-communication-12/selecting-the-promotion-mix-for-a-particular-product-84/characteristics-of-the-product-422-4127

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. • A company needs to know about the features of a product and how it will help fill a specific need.Businesses are also worried about price and return on investment. Market View on Boundless.com Free to share, print, make copies and changes. Get yours at www.boundless.com www.boundless.com/marketing/textbooks/boundless-marketing-textbook/integrated-marketing-communication-12/selecting-the-promotion-mix-for-a-particular-product-84/type-of-buying-decision-423-4891

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 View on Boundless.com Free to share, print, make copies and changes. Get yours at www.boundless.com www.boundless.com/marketing/textbooks/boundless-marketing-textbook/integrated-marketing-communication-12/selecting-the-promotion-mix-for-a-particular-product-84/funds-available-relative-to-costs-424-895

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. • Pull strategies include mass media advertising, referrals, customer relationship management, and sales promotions. • Companies usually use a combination of push and pull strategies in a marketing mix. Push-Pull Strategy View on Boundless.com Free to share, print, make copies and changes. Get yours at www.boundless.com www.boundless.com/marketing/textbooks/boundless-marketing-textbook/integrated-marketing-communication-12/selecting-the-promotion-mix-for-a-particular-product-84/push-and-pull-strategies-425-4128

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 View on Boundless.com Free to share, print, make copies and changes. Get yours at www.boundless.com www.boundless.com/marketing/textbooks/boundless-marketing-textbook/integrated-marketing-communication-12/selecting-the-promotion-mix-for-a-particular-product-84/trade-versus-consumer-promotions-426-4129

Appendix Free to share, print, make copies and changes. Get yours at www.boundless.com

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. Free to share, print, make copies and changes. Get yours at www.boundless.com

Integrated Marketing Communication Marketing Mix The Promotional Mix is part of the Marketing Mix Free to share, print, make copies and changes. Get yours at www.boundless.com Wikimedia. "4Ps." CC BY-SAhttp://commons.wikimedia.org/wiki/File:4Ps.jpgView on Boundless.com

Integrated Marketing Communication Market Buyer behavior shapes buying decisions Free to share, print, make copies and changes. Get yours at www.boundless.com Wikimedia. "Byward Market." CC BY-SAhttp://commons.wikimedia.org/wiki/File:Byward_Market.jpgView on Boundless.com

Integrated Marketing Communication Geographic Target A geographic target market can include a city, state, or country. Free to share, print, make copies and changes. Get yours at www.boundless.com Wikimedia. "Worcester Street, Wolverhampton - geograph.org.uk - 1171930." CC BY-SAhttp://commons.wikimedia.org/wiki/File:Worcester_Street,_Wolverhampton_-_geograph.org.uk_-_1171930.jpgView on Boundless.com

Integrated Marketing Communication Products The characteristics of a product determine the target market and price of a product. Free to share, print, make copies and changes. Get yours at www.boundless.com Wikimedia. "Dewar's products." CC BY-SAhttp://commons.wikimedia.org/wiki/File:Dewar%2527s_products.JPGView on Boundless.com

Integrated Marketing Communication Point of Purchase Display A point of purchase or end cap display can make consumers aware of new products. Free to share, print, make copies and changes. Get yours at www.boundless.com Wikimedia. "Easter PoS Display." CC BY-SAhttp://commons.wikimedia.org/wiki/File:Easter_PoS_Display.JPGView on Boundless.com

Integrated Marketing Communication Tram Advertisement Different forms of advertising charge different rates and can impact the promotional mix budget. Free to share, print, make copies and changes. Get yours at www.boundless.com Wikimedia. "Škoda 14T Philips advertisment." CC BY-SAhttp://commons.wikimedia.org/wiki/File:%25C5%25A0koda_14T_Philips_advertisment.JPGView on Boundless.com

Integrated Marketing Communication Free to share, print, make copies and changes. Get yours at www.boundless.com

Integrated Marketing Communication Free to share, print, make copies and changes. Get yours at www.boundless.com Boundless - LO. "Boundless." CC BY-SA 3.0http://www.boundless.com/

Integrated Marketing Communication Free to share, print, make copies and changes. Get yours at www.boundless.com Boundless - LO."Boundless." CC BY-SA 3.0http://www.boundless.com/

Boundless Lecture Slides

Boundless Lecture Slides

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Boundless Lecture Slides