Price – What is the right price for the product? A successful pricing strategy should focus on “lining up your business and marketing objectives with an understanding of what price the market will bear. You’ll want to align pricing with […] the value of your offering from the customer’s perspective […] If customers view your offering as unique or high value, you can charge more. If customers view the product as on par with competitors’ products, you may need to discount your price below the competition to earn customers.” Place – This part of the marketing mix deals with determining the optimal location and distribution channels of a product. How and where should your offering be sold and delivered? The place to purchase a tangible product can be a brick-and-mortar store or a website. Most companies use various channels to reach a wider audience and thus increase sales, and very few businesses can do without a digital presence, as more and more customers search online for the products they need. Promotion – This is what most people associate with marketing. It includes methods such as sales, advertising, events, and other ways to present and sell your product to your target market. Fundamentally, it is about finding the right communication channels to reach the target audience, communicating effectively, and reaching customers on an emotional level. The underlying principles are rather simple. However, it is crucial to understand that promotional activities can only be done effectively once the other three P’s have been taken care of – “once you have researched and developed your products, priced them strategically to optimize cash flow and profits, and set up sufficient distribution channels. Without successfully completing the full marketing cycle, promotion is expensive and will fall flat.” Some models add a few more P’s, such as people, process, physical evidence, physical environment, and packaging. These P’s are sometimes called the controllable categories. By contrast, there are so-called external factors involved in these processes that cannot be controlled by a marketing team, such as the political and legal environment, the socio-cultural environment, etc. 3.What are some characteristics of advertising? Advertising is a type of paid promotional communication aimed at a large audience and attempting to influence their behaviour. Normally, the person or organisation paying for it is identified in the message. Frequency and memorability are essential factors for advertising to be effective. Its goals and objectives should be measurable. For example, the goal of an advertising campaign could be to create brand awareness of laundry detergent X among 40 million American homemakers. Some campaigns focus on long-term objectives, such as building a positive image for a product or service (e.g. Coca-Cola). Others aim for short-term goals (e.g. a grocery store ad campaign announcing low prices on some items). A lot of marketers resent the fact that short-term thinking has been gaining the upper hand. According to the London-based business Newspaper City A.M., the “advertising industry is suffering a crisis in creativity as both brands and industry awards pursue short-term targets.” Interestingly, advertising expert Sallie BMiddlebrook states that truthfulness is absolutely required to be successful in this field, and is in fact a central principle. “Whatever advertising medium you select, make sure your message is ethical and truthful. There are stringent laws regarding deceptive practices and false advertising.” 4.What is the AIDA principle? AIDA (Attention, Interest, Desire, Action) is an acronym for an advertising approach that “consists of four key stages in the advertising process: obtaining the attention of a potential customer, evoking interest in a product or a service, developing the desire in the customer to have what is offered and inducing action which might lead towards the purchase. Nowadays the AIDA principle is not used as an exclusive marketing approach but it is still an important part of advertising.” PLEASE NOTE The word “advertising” is mostly used to talk about this sector of the economy (e.g. “A lot of people work in advertising”). The word “advertisement” is mostly used to talk about one specific example of visual or audio-visual advertising (e.g. “The company’s latest advertisement caused a minor scandal”). US Americans usually stress the first syllable. In most other places, the stress is on the second syllable. Decide which version you prefer and stick with it. However, it is very common to use the words “ad” (US) and “advert” (UK) instead of “advertising” (e.g. “This ad is a typical example of the new trend toward using plus-size models”). A brief promotional video on TV is often called a commercial, as is a radio ad. A large board for displaying advertising posters outdoors, typically near a road, is called billboard in the US and sometimes hoarding in the UK. Key aspects Strategies Sample task 5 Marketing & advertising 45 Nur zu Prüfzwecken – Eigentum des Verlags öbv
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