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4 P`s (PROMOTION (PROMOTIONAL OBJECTIVES (convice or persuade consumer to…

- - - - Pricing set based on marketing objectives of the company (use in mass marketing
      - Introducing new product in an existing market
      - entering new market with existing product
      - PENETRATION PRICING
        
        setting low price supported by strong promotion in order to achieve high volume in sales
        
        occurs when trying obtain market share.
    - - High price is charged for a new product that has little or no competition
      - strategy used to maximize short term profile until competitors enter the market and to project exclusive image
    - - Setting price that take advantage of customer`s perception of value of product
      - Consumer associates a high price product with high quality
      - common for price set below key price to make product appear cheaper (0.99/1.99)
    - - Firms determine cost of producing and supplying product and add money on top of the calculated cost to determine the price
      - COST PLUS PRICING
        
        Adding a mark up for profit to the average cost of the item
        
        Method is popular with retailers (take cost of item and add mark up percentage to determine selling price)
    - - Charging different group of consumers different prices for same goods or service
      - example : senior citizen discount,children`s prices
    - - Product sold at very low price to encourage consumer to buy it
      - Commonly done in grocery industry
    - - Special low prices used to gain market share or sell off excess stock (buy 1 get 1 offers)
      - to stimulate sales for limited period of time usually during low demand periods or opening new stores
    - - When one business set a price for its product and other firms in market set same or similar price(follow suit)
    - - Deliberately setting price so low so competitors are forced out of market
- - - - Purchasing communication with consumer (advertising)
      - Promotions visual and auditory (radio,billboard)
      - Advertising
        
        Technical purchases
        
        trying to create distint imagr or brand identity
        
        Informative customer about price,specification
        
        Whic Media to use
        
        Cost
        
        Profile of target audience
        
        Type of product message to deliver
        
        Link between marketing mx and advertising media
        
        Law and other barrier
    - - Promotions that tactiles (sample,coupons)
      - Short term incentives to encourage consumer to purchase products
      - Sales promotion
        
        To generate short term gains in sale
        
        Sales/price deals -temporary reduction in price
        
        Coupons
        
        Point of sales display - aisle interuptor,dump bins
        
        Buy 1 free1
  - - - set appropriate target
      - establish how success of promotional mix is to be assess
      - decide message to communicate
      - execute promotional plan
      - decide profile of target market
      - measure its success
      - Decide image of product
    - - Benefits
        
        performance metrics
        
        speed of transimission
        
        Improved audience reach
        
        interactivity
      - Limitations
        
        Lack of skills
        
        Time investment
        
        Negative feedback
        
        Security issue
    - - Viral marketing
        
        use of social media sites or text messages to increase brand awareness or sell products
      - Guerilla marketing
        
        An conventional way of performing marketing activities on very low budget
        
        Risks
        
        Unconventional advertising techniques may not appeal to conventional customer
        
        Not done well, may not get noticed at all
        
        Could tarnish and damage brand
- - - - Should product sold directly?
      - How many intermediaries?
      - Where should product be sold
    - - Manufacturer need distribution that provides a wide market coverage effectively and efficiently
      - Uses of internet making it easier for business reach a wide range consumer
      - consumer need easy access to the firms product where they can see,touch the product
    - - Industrial products tend to be sold more directly to its customer than durable goods
      - Geographic area of target market
      - Level of service expected from customer
      - Technical complexity of product
      - Unit value of product
      - Number of customer
    - - Single intermediary channel - manufacturer to retailer/ agent/ distributor to customer
        
        Benefit
        
        Provide transactional function
        
        Drawbacks
        
        Communication problem
      - Two- intermediary channel - Manufacturer to wholeseller to retailer to customer
        
        Benefit
        
        enhances the market for producers and mass coverage becomes possible
        
        Drawback
        
        the cost is added which increases the product costs.
      - Direct chanel - manufacturer to consumer
        
        Benefit
        
        get your products to consumers faster
        
        Drawbacks
        
        harder to reach potential customers without the network an established distributor provides.
    - - Retailer
      - Distributor / Agent
      - Wholeseller
      - Specialty channel (telemarketing,vending machines)