The sales promotion strategy is an important element in overall marketing strategy. Sales promotion strategy involves identification of objectives, effective communication for attracting attention, allocation of budget, determining the correct promotional mix, introduction of strategic approach and finally evaluation. Each one of them are briefly explained here. 1. Sales Promotion Objectives The marketer should determine his sales promotion objectives. He should determine what is to be accomplished and what kind of buyer responses are desired. Sales promotion tasks should be objective oriented. These tasks are informing, persuading and reminding the customers about the products. The sales manager should inform consumers about his product and should highlight its special features. He has not only to inform the customers but persuade them to buy it. 2. Communication Sales promotion should attract the attention of the target audience. If the prices, discounts, off season facilities etc, are not adequately and effectively communicated, the Continue reading
Marketing Concepts
Levels of Products or Product Hierarchy
In planning market offering, the marketer needs to think through five levels of the product, each level adds more customer value, and the five levels constitute a customer value hierarchy. Each product is related to certain other products. The product hierarchy stretches from basic needs to particular items that satisfy those needs. Core Product – The most fundamental level is the core benefit. It is the fundamental benefit or service the customer is really buying. Marketers see themselves as benefit providers. E.g. A hotel guest is buying rest and sleep. Generic/Basic Product – At the second level the, marketer has to turn the core benefit into basic product. In this the hotel room includes a bed, bathroom, towel desk, dresser and closet. Expected Product – At the third level the marketer prepares an expected product a set of attributes and conditions that buyers normally expect and agree to when they Continue reading
Different Classifications of Advertising
Advertising intends to persuade an audience (viewers, readers or listeners)to purchase or take some action upon products ,ideals or services. It includes the name of a product or service and how that product or service could benefit the consumer, to persuade a target market to purchase or to consume that particular brand. These advertisements serve to communicate an idea to the public in an attempt to convince them to take certain action, such as encouraging environment friendly behaviors, and even unhealthy behaviors through food consumption etc. To advertise is to draw the public’s attention usually for the purpose of selling products, or services, through the use of various forms of media, such as print or broad cast and notices. Advertising is not only used as a means to promote a company’s products and services and to drive sales but as a means to build a brand identity and communicate changes Continue reading
Advertising Planning – Process and Components
The advertising management is mainly concerned with advertising planning and decision making. The advertising manager will be involved in the development, implementation, and overall management of an advertising plan. The development of an advertising plan essentially requires the generation and specification of alternatives. Decision making involves choosing from among the alternatives. The alternatives can be various levels of expenditure, different kinds of objectives or strategy possibilities, and kinds of options with copy creation and media choices. Thus, the essence of advertising planning is to find out the feasible alternatives and reduce them to decisions. An advertising plan reflects the planning and decision — making process and the decisions that have been arrived at in a particular product and market situation. Advertising Planning Framework Advertising planning and decision making depends on internal and external factors. Internal factors are situation analysis, the marketing program, and the advertising plan. The three legs of Continue reading
Major Differences Between B2B and B2C
Marketing includes those business activities in the flow of goods and services from production to consumption. Goods and services are of two types; consumer and industrial. Firstly, it is important to define the primary difference between Business to Business (B2B) Marketing and Business to Consumer (B2C) Marketing. Both markets are types of commercial transactions, however, simply put, business to consumer (B2C) is the process of selling products directly to consumers and industrial/business to business (B2B) is the process of selling products or services to other businesses. However, the differences between both business systems are much more complex than their simple definitions, so are their similarities. Obviously, both B2B and B2C markets have one fundamental difference: the type of customer. However, this article is going to investigate these markets further, discussing the similarities and differences between their market’s structure, marketing practices and buying behaviour within the industry. Market Structure One key Continue reading
Concepts of Luxury and Masstige
The word ‘luxury’ derives from the Latin word ‘luxus’ , which according to the Latin Oxford dictionary signifies ‘soft or extravagant living, indulgence’ and ‘sumptuousness, luxuriousness, opulence’ . There are two aspects to consider when defining luxury, the psychological value and the value of the product/service itself. The psychological value of luxury comes from its function as a status symbol and from a highly involved consumption experience that is strongly congruent to a person’s self-concept. From a product perspective, luxury brands are frequently defined in terms of their excellent quality, high transaction value, distinctiveness, exclusivity and craftsmanship. In his paper on International Retail Marketing, T.B. Jackson proposes the following as the core characteristics of a luxury product: ‘… exclusivity, premium prices, image and status which combine to make them more desirable for reasons other than function’. Dimitri Mortelmans, in his paper ‘The concept of luxury’, says there are three main characteristics Continue reading