Only products or services that can finally be sold in the market contribute to a company’s operating income. This may sound obvious and simple, but all too often companies produce rather what they like, and not what the market really wants.
When setting the promotion mix, the company has to consider the following four factors: the type of product or market, choice of ‘push or pull’ strategy, buyer’s readiness stage, and the product’s stage in the life cycle.
The company has the following four main sources for communication, called the Promotion Mix (or tools):
After having considered the steps in planning and sending communication to a target audience, it is time to decide the total promotion budget and its division among the major promotional tools to create the Promotion Mix.
The marketing communication system is the total communication pattern which goes from the company to its stakeholders (e.g. middlemen, customers, and the public), using the following Promotion Mix (tools):
Modern marketing calls for more than developing a good product, pricing it attractively, and making it available to target customers. Companies must also communicate with their customers and other stakeholders.
Suppose a company has identified several channel alternatives and wants to select the one that will best satisfy its long-run objectives. The firm must evaluate each alternative against economic, control, and adaptive criteria. Consider the following situation:
Historically, distribution channels have been loose collections of independent companies, each showing little concern for overall channel performance. These conventional distribution channels have lacked strong leadership and have been troubled by damaging conflict and poor performance.
Distribution channels can be described by the number of channel levels. Each layer of middlemen that perform some work in bringing the product and its ownership closer to the final buyer is a channel level. Because the producer and the final consumer both perform some work, they are part of every channel. We use the […]
A distribution channel moves goods from producers to consumers. It overcomes the major time, place, and possession gaps that separate goods and services from those who would use them. Members of the marketing channel perform many key functions:
