evolve and new types of retail businesses come into being. Explains origin and evolution of new types of retail stores.
According to this Wheel, in an endless cycle, new, cheap retailers enter the market, grow into big and expensive
operations, making room for the next generation
of new, cheap retailers.
requires identifying a Promotion Mix, Promotion Objectives, and a Promotion Budget.
3 Elements make up the total Promotion Plan:
is made up of those specific ingredients a company combines
to promote a product. The ingredients a
company combines to inform and persuade people to purchase its products. Combination of one or more of four
, personal selling, publicity, and sales promotion.
can fall into one of three main categories. For new products, the objective is to inform
, or let
and end-users known about new products. For products which are already established
, promotion can
either be used to persuade, or remind buyers.
3 types of objectives
- Companies use promotion to inform customers about new products
to persuade -
for existing products they try to persuade them to use the product
to remind -
remind them about its availability
Promotion Budget –
4 Ingredients of Promotion Mix:
form of nonpersonal communication about a company or its products that reaches the target
audience through a mass medium.
nvolves using a mass medium such as television, radio, newspapers, magazines, direct
, etc. The cost per person reached through advertising is low
compared to personal selling, but it has less persuasive
Personal Selling -
involves informing customers and persuading them to purchase products through personal
. Can include
telemarketing, door-to-door salesmen
. The cost per person reached through personal
selling is much higher than advertising, but it often has a greater impact and provides immediate feedback