Advertising and promotional tools
The basic idea behind the marketing concept is that you make what you can sell. Even a good product that satisfies a need has to be made known to its target customers. During the introduction and growth stages of the standard product life cycle, the producer has to develop brand awareness, inform potential customers about its existence and features.
According to the well-known “four ps” formulations of the marketing mix (product, price, place, promotion), this is clearly a matter of promotion. Since budgets are limited, marketers have to decided which tools – advertising, public relations, sales promotion or personal selling – to use and in what proportion. Public relations (PR) is concerned with improving, maintaining or protecting the image of a company or product. The most important element of pr is publicity is any mention of a company\s products that is not paid for, in any medium read, heard by a company’s customers or potential ones, aimed at assisting sales. Companies try to place stories or information in news media to attract attention. Publicity has a huge impact on public awareness that can’t be achieved by advertising. People are more likely to believe publicity.
Sales promotions, such as free samples, coupons, price reductions are temporary tactics designed to stimulate sales. Free samples may generate the initial trial of a new product. But the majority of products available at any given time are of course in the maturity stage of the life cycle. This may last many years, until the product begins to be replaced by new ones. During this time marketers may use such methods as reduced-price packs in supermarkets (that attract price-conscious brand-switchers) and also to counter a promotion by a competitor. Stores also often reduce prices of specific terms as loss leaders which bring customers where they will also buy other goods. Sales promotions can also be aimed at distributors, dealers and retailers, to...
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