The following exercise will help you better understand the Promotion Decision Pr
ID: 422682 • Letter: T
Question
The following exercise will help you better understand the Promotion Decision Process as it relates to different businesses.
Because media costs are high, promotion decisions must be made carefully, using a systematic approach. Paralleling the planning, implementation, and evaluation steps described in the strategic marketing process, the promotion decision process is divided into (1) developing, (2) executing, and (3) assessing the promotion program. Development of the promotion program focuses on the four Ws:
? Who is the target audience?
? What are (1) the promotion objectives, (2) the amounts of money that can be budgeted for the promotion program, and (3) the kinds of promotion to use?
? Where should the promotion be run?
? When should the promotion be run?
Explanation / Answer
Planning-
Who should be your target audience-
According to your product, perform a customer segmentation
Like the demographics of the people who are most probably going to buy your product- their age, income, family size.
The geographies where you are most likely to find such people
How much will these people be willing to pay for your product.
Perform a market research on probable audiences to get more info about your target audience- their taste, preferences, other substitutes that they like etc.
Promotion objectives-
The objective of promotion should be to make your target audience aware about your product or service to maximum levels.
Identify the channels of promotion- what channels are most used by the target audience- TVs, newspapers, social media, radio etc. This can be done by going through surveys and reports available on the internet, or some research agencies on how much media is accessed by your target audience
Once you identify the channel of marketing, identify the charges of each one of them, make a list of promoters that will be promoting your product, the amount of people they will be reaching, and their fee for that. Work on it, and prepare an initial budget
Promotional campaigns should connect very well with the target audience, like if your audience is aged between 40-60, they are looking for inner peace in life, connect with them on something related to that.
Where to run the promotion-
As described earlier, identify the geographies where your target audiences reside in huge numbers
Also pick the areas which are not too costly to promote and still attract your audience
Pick the necessary platforms of promotions as well- social media/TV etc.
When to run the promotion-
Identify if your product or service is best suited for some season or something
Also, coordinate with the manufacturing department, if they would be able to satisfy the increase in demand due to promotions in a particular season, this is called sales and demand planning
Identify the timings of your promotion, your target audience uses the platform at what time during the days
Implementation/Execution-
Make a proper team that would look after promotion of the product
Assign the responsibilities to all the team members.
Run your implementation in phases- say phase 1 in top cities where you feel your audience would connect the most, then phase –2; for areas with certain lower probabilities of success and so on
Do a proper project planning- resources available, resources required, actual budget, time slots for each phase, contingency plans for any failures, plan B for execution
Develop tools to evaluate the success of implementation- like growth in consumers, profits/ revenues etc.
Evaluation-
On the parameters set in the implementation, see if the results are above or below the benchmarks
If above, see what you did good, and how it can be done better to gain more
If below, identify what went wrong. Perform a root cause analysis to identify the causes behind the shortcomings
Prepare better plans for future, keep the mistakes on record, for better training and results in future.
If you have any doubts regarding the answer, or want some clarifications or elaboration on any point, please post in the comments. Thank You
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.