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THE 4P (PROMOTION (ADVERTISING (INFORMATIVE
Describe the product and its…
THE 4P
PRICE
is divides into:
SUPPLY: is the quantity of a product producers are willig and able to make for sale. When the price is low, few producers will be able to make a profit and so the supply is small; instead at high prices even inefficient producers can make a profit and so the supply is large.
EQUILIBRIUM: is the point where producers and consumers agree on the price and quantity. If the price is low, there will be a scarcity; if the price is too high, there will be an excess so producers will have to reduce prices to persuade people to buy their unsold goods.
DEMAND: mean the quantity of a product that consumers are able to buy. the law is that as the price increases the quality demanded will fall and vice versa; at a lower price more people can afford the product and it becomes cheaper compared to similar goods that people might buy.
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PROMOTION
ADVERTISING
WHY?
-to make consumers aware of new product;
-to remind consumers about existing product;
-to persuade consumers to switch from rival product;
-to improve the image of the business;
-to sell more product.
"WHERE" DEPENDS ON:
-your target audience;
-the size of your market;
-the size of your advertising budget.
INFORMATIVE
Describe the product and its features- in an impressive-sounding way of course.
They leave the consumer free to make up their own minds about the product.
PERSUASIVE
Try to convince the consumer that they cannot survive whitout the product.
Some adverts openly try to convince you that if you don't use/use the product something nasty/nice might happen to you.
ADVERTISING MEDIA
WHERE
1. TELEVISION: reach milions and you can target people who watch particular programmes but it's very expensive.
2.RADIO: is cheaper but it's sound only and audiences are usually smaller.
3.NEWSPAPER and MAGAZINES: they'll often be read more than once but their static, silent and often not in colour.
4.POSTERS and BILLBOARDS: have a high visual impact; often drivers only see them for a few seconds and they're vulnerable to wind, rain and graffiti.
5.CINEMAS: have a high visual and sound impact but they're expensive considering the audience size.
6.LEAFLETS and JUNK MAIL: are cheap to produce and distribute but they're easy to ignore.
7.INTERNET SITES: can have a high visual impact, be interactive, and link directly to buying the product but your advert is competing with a lot of other stuff on the net.
advantages
-gives people information and help them make a choice
-subsidises newspaper and magazines, so they cost less. And it subsidises television programs and websites, so they're better quality
-is a big industry- think of all the people it employs
disadvantages
-makes people think they want things they used to be perfectly happy without
-cost money
-is expensive, small firm is difficult to complete
PRODUCT
There're 4 rules
2. Get the detail of the product right
The design must be fit for its aim, the product name must be catchy and there must be a broad product range to give option to all your potential customers.
3. Know your product's life cyrcle
All product have the same life cyrcle: they are launched, sales grow and reach maturity; after that, sales start to decline and the product becomes obsolete.
1. Be market-driven not product-driven
Market-driven firms use market research to find out what people want, then make it, imstead, product-driven firms design or invent a new product and then try to sell it (often they make something nobody really wants )
4. Make your product different from the competition
A company must differentiate its product with a unique design, a reputation for reliability, etc. if it isn't, people think your product is identical to others and they will only buy it if it's cheaper (which means less profit for you)