MKT 100 Lecture Notes - Lecture 16: Sales Promotion

• School: Ryerson University
• Department: Marketing
• Course: MKT 100
• Professor: Yanina Chevtchouk

Document Summary

Describes stages through which a product passes from development to death. Bc consumers not informed about its existence so purpose of promotion is to build awareness and create trial and build interest and awareness among distributors bc without them, sales wont increase o o. Promotion is mainly at distributors to entice them to carry products and reduce perception of risk. Profits: negative or low, no competitors o. Revenue is used to cover promotion or development costs. Product: new, one version, new product in a new category so known by class not brand name. Penetration strategy to remove price as a barrier to trial. Skimming strategy to maximize profit by setting the price high which is likely to attract competitors. Promotion: consumers - informative - to build awareness o. Distributors - sales promotion - to motivate carrying product. Profits: rapidly rising, more competitors entering market. Price: penetration or skimming: more likely penetration to increase market share.