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Unformatted text preview: trial. Personal selling is used in this stage
to obtain distribution. GROWTH. In this stage, promotion emphasizes the product’s competitive advantage over the
competition. Heavy advertising and public relations are used to build brand loyalty. Sales
promotion decreases, while personal selling is used to maintain distribution.
MATURITY. With increased competition, advertising may decrease slightly, and the advertising
used is more often the persuasive and/or reminder type. Sales promotion increases to build market
share, and personal selling is used to maintain distribution.
DECLINE. In general, all products decline, and promotional messages may be focused on other
firm products. Because of expense, advertising and public relations are dramatically decreased.
Sales promotion and personal selling may be maintained at low levels.
KEY: CB&E Model Promotion| CB&E Model Strategy TOP: AACSB Analytic
MSC: BLOOMS Synthesis 14. Target market characteristics and the type of buying decision the target market is making can
affect the mix of promotional elements. Describe how differences in each factor change the
TARGET MARKET CHARACTERISTICS. Widely scattered customers, highly informed
buyers, and brand-loyal repeat purchasers generally require a blend of more advertising and sales
promotion and less personal selling. Personal selling is required for industrial installations, even
if buyers are extremely competent. Print advertising can be used when potential customers are
difficult to locate.
TYPE OF BUYING DECISION. Advertising and sales promotion are the most effective
promotional tools for routine purchase decisions, such as buying toothpaste. A decision that is
neither routine nor complex may be influenced by advertising and public relations that create
awareness of a product. For complex, high-involvement decisions, personal selling and print
advertising are effective and provide the information needed.
KEY: CB&E Model Promotion| CB&E Model Customer TOP: AACSB Analytic
MSC: BLOOMS Synthesis 15. You are the promotions manager for a small, financially strapped company. Describe how a lack
of funds affects the use of each of the promotional tools. Describe the trade-offs that occur
between funds available and other aspects of promotion.
A firm with limited funds can rely heavily on publicity if the product is unique. If personal selling
is necessary, the firm may use manufacturers’ agents who work on a commission basis. Some
sales promotions can also be inexpensive. Although advertising is very expensive, it has low cost
per contact, which may be necessary for a large potential market. There is usually a trade-off
among the funds available, the number of people in the target market, the quality of
communication needed, and the relative costs of the various promotional elements.
KEY: CB&E Model Promotion OBJ: 16-6
TOP: AACSB Analytic...
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This document was uploaded on 09/29/2013.
- Fall '13