Promotion strategies are concerned with the planning, implementation, and control of persuasive communication with customers. Based around advertising, personal selling, sales promotion, or any combination of these, the promotion objectives should have a sharp focus on target customers. Packaged Food Product (assuming a new product): (a) Make housewives in the 21-to-35 age group aware of the product. (b) Make dealers display the product prominently. (c) Seek a unique product image (e.g., convey sophistication, upward mobility, cosmopolitan tastes, etc.). (d) Other.

Question

What will be an ideal response?

Answer 1

The two major types of promotion-expenditure strategy are breakdown methods and the buildup method. Breakdown methods include the percentage-of-sales approach, spend-as-much-as-can-be-afforded approach, ROI approach, and the competitive-parity approach. All of these approaches have merits and demerits. The buildup method is the process whereby the marketing manager specifies objectives of promotion separately for advertising, personal selling, and sales promotion for each product, after consultation with executives concerned with product development, pricing, and distribution. The buildup method is a more scientific approach to pursue.
Household Computer: Promotional Tasks
Advertising:
(a) Make families in the following categories aware of the product: families of professionals (doctors, lawyers, executives); families of successful small businesspersons; and families having incomes over $50,000 annually, in which the wife, the husband, or both, have a college education.
(b) Emphasize the rational and emotional advantages of the product.
Personal Selling:
(a) Contact 50,000 professionals by phone, inviting them to visit the store to examine the computer.
(b) Provide courteous assistance to prospective customers while they are in the store.
Sales Promotion:
(a) Provide a substantial incentive during special seasons to generate sales (e.g., during Christmas, graduation times, etc.).
(b) Establish a rebate program.
The above tasks should be costed to figure out the total expenditure.