Promotion is defined by our textbook as "communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response." There are eight objectives of promotion which are as follows:
1. create awareness
2. stimulate demand
3. encourage product trial
4. identify prospects
5. retain loyal customers
6. facilitate re-seller support
7. combat competitive promotional efforts
8. reduce sale fluctuations.
There are several different parts that make up the promotional mix. They are advertising, public relations, sales promotion, personal selling, and social media. The promotional mix is used to meet the needs of the target market and fulfill the organization's overall goals. Organizations may use just one part of the promotional mix to reach their target market or they may use a combination of parts.
Advertising is "any form of impersonal, one-way mass communication about a product or organization that is paid for by a marketer."
Public Relations is "the marketing function that evaluates public attitudes, identifies areas within the organization the public may be interested in, and executes a program of action to earn public understanding and acceptance."
Sales Promotion is "marketing activities that stimulate consumer buying and dealer effectiveness."
Personal Selling is "a purchase situation involving a personal, paid-for communication between two people in an attempt to influence each other."
Social Media are "promotion tools used to facilitate conversations among people online."
I personally believe that companies that will succeed the most at promotion are those that utilize a combination of the parts of the marketing mix. With different industries though, there becomes the need to be more active in one part than another. For instance, in the auto sales industry personal selling would be the tool that should be utilized the most by marketers, but the other tools are also important to bring in customers. Therefore, they may focus more energy on personal selling than the other tools, but they must not forget about the others.
Do you also believe that a combination of multiple tools in the promotional mix is the best way for marketers to reach their target market or do you believe that there is one tool that is the most important no matter what the industry? Can you find an organization that has utilized just one of these tools in the promotional mix that has been successful?
Wednesday, April 17, 2013
Wednesday, April 10, 2013
In Response to Sarah Allen
How do you think marketing managers choose the appropriate price for a product? What factors do they take into consideration when setting a price?
I believe that the first step in choosing a price is figuring out the minimum price the product must be sold at to make a profit. Therefore, the managers must take into account the price that it costs to product each product, as well as figuring out what the break-even point is. They must then take into account the external environmental factors and find out what customers are willing to pay for similar products. I believe that they also must take into account how much profit they are looking to make. After all of these factors are taken into account, they may then be able to distinguish an appropriate price for the product.
If it product is priced too highly then the product won't sell. On the other hand, if the product is priced too low than there won't be much of a profit, it any, made of the product. Therefore, the price must be set appropriately.
What are some products that have failed because of an inappropriate price point?
I believe that the first step in choosing a price is figuring out the minimum price the product must be sold at to make a profit. Therefore, the managers must take into account the price that it costs to product each product, as well as figuring out what the break-even point is. They must then take into account the external environmental factors and find out what customers are willing to pay for similar products. I believe that they also must take into account how much profit they are looking to make. After all of these factors are taken into account, they may then be able to distinguish an appropriate price for the product.
If it product is priced too highly then the product won't sell. On the other hand, if the product is priced too low than there won't be much of a profit, it any, made of the product. Therefore, the price must be set appropriately.
What are some products that have failed because of an inappropriate price point?
Elasticity of Demand
Elasticity of demand is the consumer's responsiveness or sensitivity to changes in price. If the demand is elastic a change in price will either increase or decrease consumers' buying. If the demand is inelastic a change in price will not make a significant change in consumers' buying. The price elasticity of demand is equal to the percent change in quantity divided by the percent change in price.
Products that are considered to have elastic demand are products that we don't necessarily need to have, but rather items that we want. Some examples of these products are candy, shoes, purses, televisions, etc. We don't need to have these items so if the price went up a ridiculous amount, the demand for the might decrease and less of these products would be bought. If the price of these products went down, the demand for them might increase and more of the products might be sold.
Products that are considered a necessity, instead of just a want, are products that have an inelastic demand. For instance, one product that has an inelastic demand is oil. Oil is a necessity. No matter if the price goes up or down oil still must get bought. Therefore, the demand for oil is inelastic.
Can you think of some other products that have an inelastic demand? Do you believe the consumer has any control over prices of products with an inelastic demand? Why or why not?
Products that are considered to have elastic demand are products that we don't necessarily need to have, but rather items that we want. Some examples of these products are candy, shoes, purses, televisions, etc. We don't need to have these items so if the price went up a ridiculous amount, the demand for the might decrease and less of these products would be bought. If the price of these products went down, the demand for them might increase and more of the products might be sold.
Products that are considered a necessity, instead of just a want, are products that have an inelastic demand. For instance, one product that has an inelastic demand is oil. Oil is a necessity. No matter if the price goes up or down oil still must get bought. Therefore, the demand for oil is inelastic.
Can you think of some other products that have an inelastic demand? Do you believe the consumer has any control over prices of products with an inelastic demand? Why or why not?
Wednesday, April 3, 2013
In Response to Melissa Moriwaki
What is your opinion on these April Fools Day products? Are they helping the brands? Why or why not?
I was amused watching the commercials for "Bacon Flavored Scope" and "Skinny Skinny Jeans." Although I was amused, I'm not sure whether these April Fools commercials are helping the brands or rather hurting them. As Melissa pointed out although we all believe these commercials to be jokes, the companies give off an impression that keeps them in the back of our minds, which might help gain customers in the future. I wonder though if this impression for some will be negative and actually work again the companies. If customers are given the wrong impression they may lose faith in these brands and chose to take their business elsewhere. On the other hand, with a little bit of a sense of humor the commercials may actually want to shop these brands after viewing the commercials.
I think that these amusing commercials can both help and hurt the brands, it just depends on the customer that views them, and their sense of humor. After viewing these I wonder if there are any more companies that have created April Fools Day commercials in the past. If so, what were those brands/commercials and did they help or hurt the company? What was the end result?
I was amused watching the commercials for "Bacon Flavored Scope" and "Skinny Skinny Jeans." Although I was amused, I'm not sure whether these April Fools commercials are helping the brands or rather hurting them. As Melissa pointed out although we all believe these commercials to be jokes, the companies give off an impression that keeps them in the back of our minds, which might help gain customers in the future. I wonder though if this impression for some will be negative and actually work again the companies. If customers are given the wrong impression they may lose faith in these brands and chose to take their business elsewhere. On the other hand, with a little bit of a sense of humor the commercials may actually want to shop these brands after viewing the commercials.
I think that these amusing commercials can both help and hurt the brands, it just depends on the customer that views them, and their sense of humor. After viewing these I wonder if there are any more companies that have created April Fools Day commercials in the past. If so, what were those brands/commercials and did they help or hurt the company? What was the end result?
Levels of Distribution Intensity
There are three different intensity levels of distribution.
The first level is intensive. With an intensive level of distribution, a company aims having their product available at every outlet. The level of customer service needed to sell this product is reduced. Products that are distributed intensively often become convenience items. Some products that are distributed intensively are chips, soft drinks, magazines, etc.
The second level of distribution is selective. With a selective level of distribution products are distributed by screening dealers to eliminate all but a few in a selective area. Products distributed at a selective level become specialty items. Some products that are distributed at a selective level are televisions, computers, iPods, and telephones.
Finally, the third level of distribution is exclusive. With an exclusive level of distribution products are distributed by one (or very few) dealers in a given area. Products distributed at an exclusive level are usually specialty/luxury items. Some products that are distributed at an exclusive level are Rolex watches and Rolls Royce vehicles.
What are some more products distributed at any of these given levels of intensity? What are some advantages/disadvantages to items being distributed at each level of intensity.
The first level is intensive. With an intensive level of distribution, a company aims having their product available at every outlet. The level of customer service needed to sell this product is reduced. Products that are distributed intensively often become convenience items. Some products that are distributed intensively are chips, soft drinks, magazines, etc.
The second level of distribution is selective. With a selective level of distribution products are distributed by screening dealers to eliminate all but a few in a selective area. Products distributed at a selective level become specialty items. Some products that are distributed at a selective level are televisions, computers, iPods, and telephones.
Finally, the third level of distribution is exclusive. With an exclusive level of distribution products are distributed by one (or very few) dealers in a given area. Products distributed at an exclusive level are usually specialty/luxury items. Some products that are distributed at an exclusive level are Rolex watches and Rolls Royce vehicles.
What are some more products distributed at any of these given levels of intensity? What are some advantages/disadvantages to items being distributed at each level of intensity.
Thursday, March 28, 2013
In response to Kaley Deboer
Do you feel one channel of distribution could be more beneficial to a company, or do you feel it will always vary depending on the company, product, or service?
Although all of the channels of distribution could be beneficial to a company because they offer different benefits, I believe that the one that could be most beneficial to a company is a direct channel - where the product goes directly from the producer to the consumer.
I believe that it is beneficial because it could cut costs for the company. For example, instead of the price getting jacked up due to transportation costs, etc. a company could sell their product at a lower price if it went directly from the producer to the consumer. The could also create less inventory because they could create products only when they are ordered by the consumer.
The other channels of distribution are also important, have each have their own benefits, but I believe that because of the cost cutting a direct channel could be the most beneficial to a company. Do you agree with this, or do you believe that another channel is more effective?
Although all of the channels of distribution could be beneficial to a company because they offer different benefits, I believe that the one that could be most beneficial to a company is a direct channel - where the product goes directly from the producer to the consumer.
I believe that it is beneficial because it could cut costs for the company. For example, instead of the price getting jacked up due to transportation costs, etc. a company could sell their product at a lower price if it went directly from the producer to the consumer. The could also create less inventory because they could create products only when they are ordered by the consumer.
The other channels of distribution are also important, have each have their own benefits, but I believe that because of the cost cutting a direct channel could be the most beneficial to a company. Do you agree with this, or do you believe that another channel is more effective?
Wednesday, March 27, 2013
Target Marketing Strategies
A target market is a group of people for which an organization designs, implements, and maintains a marketing mix for. The organization plans to make the marketing mix meet the needs of that specific group of people, which results in mutually satisfying exchanges.
There are three strategies used in target marketing. The first is an undifferentiated strategy. In an undifferentiated strategy there is one marketing mix for everyone. It is also known as mass marketing, and it satisfies most customers with just one marketing mix. The second strategy is a concentrated strategy. In a concentrated strategy an organization targets their marketing mix on one market segmentation. It is also known as niche marketing and it satisfies a specific group of people. Finally, the third strategy is known as a differentiated target strategy. In a differentiated target strategy an organization focuses their marketing mix on several market segments. There is a distinct marketing scheme for each of these segments.
A product that can be marketed with an undifferentiated strategy is milk. Almost everyone drinks milk so it can be marketed to everyone with a single marketing strategy. On the other hand, baby food is pretty much only consumed by babies, so it would be appropriate to use a concentrated strategy focusing in on a target market of parents.
What are some other products that you can think of that can use an undifferentiated strategy to market their products?
There are three strategies used in target marketing. The first is an undifferentiated strategy. In an undifferentiated strategy there is one marketing mix for everyone. It is also known as mass marketing, and it satisfies most customers with just one marketing mix. The second strategy is a concentrated strategy. In a concentrated strategy an organization targets their marketing mix on one market segmentation. It is also known as niche marketing and it satisfies a specific group of people. Finally, the third strategy is known as a differentiated target strategy. In a differentiated target strategy an organization focuses their marketing mix on several market segments. There is a distinct marketing scheme for each of these segments.
A product that can be marketed with an undifferentiated strategy is milk. Almost everyone drinks milk so it can be marketed to everyone with a single marketing strategy. On the other hand, baby food is pretty much only consumed by babies, so it would be appropriate to use a concentrated strategy focusing in on a target market of parents.
What are some other products that you can think of that can use an undifferentiated strategy to market their products?
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