MKT-3010 Lecture Notes - Lecture 16: Diminishing Returns, Sales Promotion, Media Planning
5 Feb 2018
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Document Summary
Beyond a certain level of spending, diminishing returns set in. New brands require higher spending to reach a minimum level of exposure needed to affect purchase habits. Communication used to creative and build brand awareness with the ultimate goal of moving the consumer through the buying cycle to a purchase. Inform the customers about upcoming sales events or arrivals of new merchandise. Communication used to motivate consumers to take action. Generally occurs in the growth and early maturity stages of the product life cycle (plc) when competition is most intense. May be used to reposition an established brand in the later stage of the plc. Communication used to remind consumers of a product or to prompt repurchases, especially for products that have gained market acceptance and are in the maturity stage of their life cycle. Occurs after the products have gained market acceptance. Product-focused advertisements- used to inform, persuade or remind consumers about a specific product or service.
