What is marketing service explain the different elements of marketing mix and service marketing?

A service marketing mix is a mix of marketing activities an organization engages in to promote and sell intangible services instead of tangible products.

Delivering consistent, superior customer service to help build long-term customer relationships is the cornerstone of service marketing. This can be done through various pathways, the most common of which is through different channels or touch points.

These could include things like a company website, social media, redesigned call center screens, direct marketing mail, and more.

Another key to delivering superior customer service is providing a premium offering, including service features, award loyalty, and special custom offerings.

Photo by Adeolu Eletu on Unsplash

The 7 Components of Service Marketing Mix

In addition to the four Ps of traditional product marketing, the service marketing mix includes the three extra Ps: people, process, and physical evidence.

Product

Product is your core offering. In this case, it is the service you’re rendering. They are what the customer needs from your business.

Price

How much are customers willing to pay for the service? It is crucial because low prices can create market demand or cause competition that leads to lower prices. Setting the right price requires knowing the market segment, competition, and target audience.

Place

The service provider’s accessibility and location are key factors in service marketing. Accessibility isn’t restricted to physical accessibility. It relates to other means of contact and communication between a business and its customers. This is why the distribution channels employed, and the coverage is related to service accessibility.

Promotion

Promotion includes all the methods a business uses to communicate its services and offers to the market. It could be through sales promotion, advertising and other means of publicity like PR.

People

Everybody involved in service delivery can influence the consumer’s perception of the service and your business. Since you’re not offering a tangible product, subtle things like the dressing and attitude of the business’ personnel shape the customer’s perception.

Process

“Process” is a term that refers to the series of activities a customer must pass through to get the service needed. Some services are inherently complex. However, service providers find a means of dividing it all into simple and uncomplicated steps.

Physical Evidence

All physical components of service delivery are subsumed under physical evidence. This includes tangible representations of the service like signage, letterhead, brochures, and pieces of equipment.

Page 2

A service marketing mix is a mix of marketing activities an organization engages in to promote and sell intangible services instead of tangible products.

Delivering consistent, superior customer service to help build long-term customer relationships is the cornerstone of service marketing. This can be done through various pathways, the most common of which is through different channels or touch points.

These could include things like a company website, social media, redesigned call center screens, direct marketing mail, and more.

Another key to delivering superior customer service is providing a premium offering, including service features, award loyalty, and special custom offerings.

Photo by Adeolu Eletu on Unsplash

The 7 Components of Service Marketing Mix

In addition to the four Ps of traditional product marketing, the service marketing mix includes the three extra Ps: people, process, and physical evidence.

Product

Product is your core offering. In this case, it is the service you’re rendering. They are what the customer needs from your business.

Price

How much are customers willing to pay for the service? It is crucial because low prices can create market demand or cause competition that leads to lower prices. Setting the right price requires knowing the market segment, competition, and target audience.

Place

The service provider’s accessibility and location are key factors in service marketing. Accessibility isn’t restricted to physical accessibility. It relates to other means of contact and communication between a business and its customers. This is why the distribution channels employed, and the coverage is related to service accessibility.

Promotion

Promotion includes all the methods a business uses to communicate its services and offers to the market. It could be through sales promotion, advertising and other means of publicity like PR.

People

Everybody involved in service delivery can influence the consumer’s perception of the service and your business. Since you’re not offering a tangible product, subtle things like the dressing and attitude of the business’ personnel shape the customer’s perception.

Process

“Process” is a term that refers to the series of activities a customer must pass through to get the service needed. Some services are inherently complex. However, service providers find a means of dividing it all into simple and uncomplicated steps.

Physical Evidence

All physical components of service delivery are subsumed under physical evidence. This includes tangible representations of the service like signage, letterhead, brochures, and pieces of equipment.

Page 3

A service marketing mix is a mix of marketing activities an organization engages in to promote and sell intangible services instead of tangible products.

Delivering consistent, superior customer service to help build long-term customer relationships is the cornerstone of service marketing. This can be done through various pathways, the most common of which is through different channels or touch points.

These could include things like a company website, social media, redesigned call center screens, direct marketing mail, and more.

Another key to delivering superior customer service is providing a premium offering, including service features, award loyalty, and special custom offerings.

Photo by Adeolu Eletu on Unsplash

The 7 Components of Service Marketing Mix

In addition to the four Ps of traditional product marketing, the service marketing mix includes the three extra Ps: people, process, and physical evidence.

Product

Product is your core offering. In this case, it is the service you’re rendering. They are what the customer needs from your business.

Price

How much are customers willing to pay for the service? It is crucial because low prices can create market demand or cause competition that leads to lower prices. Setting the right price requires knowing the market segment, competition, and target audience.

Place

The service provider’s accessibility and location are key factors in service marketing. Accessibility isn’t restricted to physical accessibility. It relates to other means of contact and communication between a business and its customers. This is why the distribution channels employed, and the coverage is related to service accessibility.

Promotion

Promotion includes all the methods a business uses to communicate its services and offers to the market. It could be through sales promotion, advertising and other means of publicity like PR.

People

Everybody involved in service delivery can influence the consumer’s perception of the service and your business. Since you’re not offering a tangible product, subtle things like the dressing and attitude of the business’ personnel shape the customer’s perception.

Process

“Process” is a term that refers to the series of activities a customer must pass through to get the service needed. Some services are inherently complex. However, service providers find a means of dividing it all into simple and uncomplicated steps.

Physical Evidence

All physical components of service delivery are subsumed under physical evidence. This includes tangible representations of the service like signage, letterhead, brochures, and pieces of equipment.

Page 4

A challenge product marketers face is communicating a product’s value proposition to an audience that doesn’t regularly deal with it. You can overcome this barrier with an effective product marketing strategy that engages potential customers. This article discusses product marketing examples, brands that nailed their product marketing strategy and have an excellent customer base.

A relatively simple activity can quickly establish a connection with potential customers. Showing a practical solution to the problems your target audience face is one such activity. Let’s look at the activities other brands used to stay on top of their game.

The Concept of Product Marketing

Product marketing is the process of bringing a product to the marketplace. It includes all the work done by a company to promote products to their customers. It aims to ensure that customers are well-informed about the product and the problems it solves for them. A company may advertise a new product to its audience to gain loyalty.

The process of product marketing begins with the creation of a product. It also includes defining the target audience, finding the appropriate channels to reach them, and testing the product by leveraging targeted marketing strategies.

Product marketing can be seen in any or all stages of the product design and product life cycle. This includes project management, market research, pricing, promotions, advertising, distribution and logistics, sales, and after-sales services.

6 Inspiring Product Marketing Examples

Now that we understand what product marketing entails let’s look at the strategy some well-known brands used to attain business success.

1. SoFi

SoFi’s product marketing strategy is emotional marketing; they sell emotions rather than the product. No one wants the product you sell. People want a solution to their problems. It will help if you show them that you understand their situation and then offer them a solution.

The unique features and benefits your product offers will almost not influence the consumers’ purchase decisions. Incorporating inspirational words can be the ultimate game-changer. Emotional marketing doesn’t necessarily mean telling sober stories. Use emotional and expressive words to elicit a feeling with the product.

2. Schlitz

Schlitz ranked eighth among American brewers in the early 1900s and had little hope for growth. They followed the same protocol other brewers did; tell the public about their beer’s purity without clarifying what pure meant. Schlitz decided to show the public how the beer is made and went from eighth to number one in a few months.

Product descriptions are not enough; tell authentic stories that involve your potential customers, take them behind the scenes and elicit emotions. This is how you get them to buy your product.

3. Nike

Nike’s success results from the product marketing strategy of doing what competitors won’t do. Nike was just another regular shoe brand when it entered the shoe market. In the 1970s, it engaged a marketing tactic of celebrity endorsement, and its revenue catapulted.

Think of something your competitors wouldn’t do and try it. It might be something unpopular, but your success may lie in there.

4. Grow and Convert

Grow and Convert is a content marketing agency. The team wanted to change the agency’s positioning so that they could attract clients with big budgets. They wanted to be recognized as an elite and high-end service. To achieve this, they included competitive analysis to identify the gaps in the market. They found three gaps; a lack of content promotion, a content marketing agency focusing on leads, and few agencies providing high-quality B2B content.

With this information, they rebuilt their service offering. They also created a product marketing strategy to display how they’re the best solution to occupy these gaps.

5. Coca-Cola

Coca-cola’s product marketing strategy is based on its target market switch and proper positioning in the market. The company was formerly a pharmaceutical company that produced a medicine that cured headaches and fatigue. In the 1800s, they changed their focus to the soft drinks market. This switch in their audience and a proper market positioning has put them on top.

6. ASOS 

ASOS identified a challenge that hindered online buyers from purchasing their products. They discovered that since their customers had no option of trying the clothing items, they were skeptical about purchasing. To bridge this gap and solve this problem for consumers, ASOS offered free shipping and returns worldwide.

But that’s not all. They also incorporated visual marketing to ensure potential customers see the product they’re interested in buying from all angles. They use videos to show customers how the clothes look in an actual person. ASOS also uses social proof on their pages by having people upload photos of the clothes they bought. This act helps them build credibility.

Most consumers consider a product’s visual appearance before making a purchase decision. Use visuals to show what your product looks like and how it works. Also, consider your target audience’s problems with purchasing your product and provide a realistic solution.

Conclusion

An excellent product marketing strategy is key to creating a successful business. While it is good to learn from the product marketing strategy of your competitors, never replicate it. Instead, create a unique positioning and messaging for your brand. The product marketing examples in this article can fuel your creative process.

You want to grab the attention of your potential customers. So, understand your target audience, and identify the problems they have and the expectations they have about your product. Instead of showing them the features and benefits of your product, show them how your product solves their problem.

Page 5

A challenge product marketers face is communicating a product’s value proposition to an audience that doesn’t regularly deal with it. You can overcome this barrier with an effective product marketing strategy that engages potential customers. This article discusses product marketing examples, brands that nailed their product marketing strategy and have an excellent customer base.

A relatively simple activity can quickly establish a connection with potential customers. Showing a practical solution to the problems your target audience face is one such activity. Let’s look at the activities other brands used to stay on top of their game.

The Concept of Product Marketing

Product marketing is the process of bringing a product to the marketplace. It includes all the work done by a company to promote products to their customers. It aims to ensure that customers are well-informed about the product and the problems it solves for them. A company may advertise a new product to its audience to gain loyalty.

The process of product marketing begins with the creation of a product. It also includes defining the target audience, finding the appropriate channels to reach them, and testing the product by leveraging targeted marketing strategies.

Product marketing can be seen in any or all stages of the product design and product life cycle. This includes project management, market research, pricing, promotions, advertising, distribution and logistics, sales, and after-sales services.

6 Inspiring Product Marketing Examples

Now that we understand what product marketing entails let’s look at the strategy some well-known brands used to attain business success.

1. SoFi

SoFi’s product marketing strategy is emotional marketing; they sell emotions rather than the product. No one wants the product you sell. People want a solution to their problems. It will help if you show them that you understand their situation and then offer them a solution.

The unique features and benefits your product offers will almost not influence the consumers’ purchase decisions. Incorporating inspirational words can be the ultimate game-changer. Emotional marketing doesn’t necessarily mean telling sober stories. Use emotional and expressive words to elicit a feeling with the product.

2. Schlitz

Schlitz ranked eighth among American brewers in the early 1900s and had little hope for growth. They followed the same protocol other brewers did; tell the public about their beer’s purity without clarifying what pure meant. Schlitz decided to show the public how the beer is made and went from eighth to number one in a few months.

Product descriptions are not enough; tell authentic stories that involve your potential customers, take them behind the scenes and elicit emotions. This is how you get them to buy your product.

3. Nike

Nike’s success results from the product marketing strategy of doing what competitors won’t do. Nike was just another regular shoe brand when it entered the shoe market. In the 1970s, it engaged a marketing tactic of celebrity endorsement, and its revenue catapulted.

Think of something your competitors wouldn’t do and try it. It might be something unpopular, but your success may lie in there.

4. Grow and Convert

Grow and Convert is a content marketing agency. The team wanted to change the agency’s positioning so that they could attract clients with big budgets. They wanted to be recognized as an elite and high-end service. To achieve this, they included competitive analysis to identify the gaps in the market. They found three gaps; a lack of content promotion, a content marketing agency focusing on leads, and few agencies providing high-quality B2B content.

With this information, they rebuilt their service offering. They also created a product marketing strategy to display how they’re the best solution to occupy these gaps.

5. Coca-Cola

Coca-cola’s product marketing strategy is based on its target market switch and proper positioning in the market. The company was formerly a pharmaceutical company that produced a medicine that cured headaches and fatigue. In the 1800s, they changed their focus to the soft drinks market. This switch in their audience and a proper market positioning has put them on top.

6. ASOS 

ASOS identified a challenge that hindered online buyers from purchasing their products. They discovered that since their customers had no option of trying the clothing items, they were skeptical about purchasing. To bridge this gap and solve this problem for consumers, ASOS offered free shipping and returns worldwide.

But that’s not all. They also incorporated visual marketing to ensure potential customers see the product they’re interested in buying from all angles. They use videos to show customers how the clothes look in an actual person. ASOS also uses social proof on their pages by having people upload photos of the clothes they bought. This act helps them build credibility.

Most consumers consider a product’s visual appearance before making a purchase decision. Use visuals to show what your product looks like and how it works. Also, consider your target audience’s problems with purchasing your product and provide a realistic solution.

Conclusion

An excellent product marketing strategy is key to creating a successful business. While it is good to learn from the product marketing strategy of your competitors, never replicate it. Instead, create a unique positioning and messaging for your brand. The product marketing examples in this article can fuel your creative process.

You want to grab the attention of your potential customers. So, understand your target audience, and identify the problems they have and the expectations they have about your product. Instead of showing them the features and benefits of your product, show them how your product solves their problem.

Page 6

A challenge product marketers face is communicating a product’s value proposition to an audience that doesn’t regularly deal with it. You can overcome this barrier with an effective product marketing strategy that engages potential customers. This article discusses product marketing examples, brands that nailed their product marketing strategy and have an excellent customer base.

A relatively simple activity can quickly establish a connection with potential customers. Showing a practical solution to the problems your target audience face is one such activity. Let’s look at the activities other brands used to stay on top of their game.

The Concept of Product Marketing

Product marketing is the process of bringing a product to the marketplace. It includes all the work done by a company to promote products to their customers. It aims to ensure that customers are well-informed about the product and the problems it solves for them. A company may advertise a new product to its audience to gain loyalty.

The process of product marketing begins with the creation of a product. It also includes defining the target audience, finding the appropriate channels to reach them, and testing the product by leveraging targeted marketing strategies.

Product marketing can be seen in any or all stages of the product design and product life cycle. This includes project management, market research, pricing, promotions, advertising, distribution and logistics, sales, and after-sales services.

6 Inspiring Product Marketing Examples

Now that we understand what product marketing entails let’s look at the strategy some well-known brands used to attain business success.

1. SoFi

SoFi’s product marketing strategy is emotional marketing; they sell emotions rather than the product. No one wants the product you sell. People want a solution to their problems. It will help if you show them that you understand their situation and then offer them a solution.

The unique features and benefits your product offers will almost not influence the consumers’ purchase decisions. Incorporating inspirational words can be the ultimate game-changer. Emotional marketing doesn’t necessarily mean telling sober stories. Use emotional and expressive words to elicit a feeling with the product.

2. Schlitz

Schlitz ranked eighth among American brewers in the early 1900s and had little hope for growth. They followed the same protocol other brewers did; tell the public about their beer’s purity without clarifying what pure meant. Schlitz decided to show the public how the beer is made and went from eighth to number one in a few months.

Product descriptions are not enough; tell authentic stories that involve your potential customers, take them behind the scenes and elicit emotions. This is how you get them to buy your product.

3. Nike

Nike’s success results from the product marketing strategy of doing what competitors won’t do. Nike was just another regular shoe brand when it entered the shoe market. In the 1970s, it engaged a marketing tactic of celebrity endorsement, and its revenue catapulted.

Think of something your competitors wouldn’t do and try it. It might be something unpopular, but your success may lie in there.

4. Grow and Convert

Grow and Convert is a content marketing agency. The team wanted to change the agency’s positioning so that they could attract clients with big budgets. They wanted to be recognized as an elite and high-end service. To achieve this, they included competitive analysis to identify the gaps in the market. They found three gaps; a lack of content promotion, a content marketing agency focusing on leads, and few agencies providing high-quality B2B content.

With this information, they rebuilt their service offering. They also created a product marketing strategy to display how they’re the best solution to occupy these gaps.

5. Coca-Cola

Coca-cola’s product marketing strategy is based on its target market switch and proper positioning in the market. The company was formerly a pharmaceutical company that produced a medicine that cured headaches and fatigue. In the 1800s, they changed their focus to the soft drinks market. This switch in their audience and a proper market positioning has put them on top.

6. ASOS 

ASOS identified a challenge that hindered online buyers from purchasing their products. They discovered that since their customers had no option of trying the clothing items, they were skeptical about purchasing. To bridge this gap and solve this problem for consumers, ASOS offered free shipping and returns worldwide.

But that’s not all. They also incorporated visual marketing to ensure potential customers see the product they’re interested in buying from all angles. They use videos to show customers how the clothes look in an actual person. ASOS also uses social proof on their pages by having people upload photos of the clothes they bought. This act helps them build credibility.

Most consumers consider a product’s visual appearance before making a purchase decision. Use visuals to show what your product looks like and how it works. Also, consider your target audience’s problems with purchasing your product and provide a realistic solution.

Conclusion

An excellent product marketing strategy is key to creating a successful business. While it is good to learn from the product marketing strategy of your competitors, never replicate it. Instead, create a unique positioning and messaging for your brand. The product marketing examples in this article can fuel your creative process.

You want to grab the attention of your potential customers. So, understand your target audience, and identify the problems they have and the expectations they have about your product. Instead of showing them the features and benefits of your product, show them how your product solves their problem.

Page 7

Product advertising aims to create awareness about a product and attract consumers to make a purchase. It’s essential to select the most effective and sales-driving product advertising strategy based on your goals and the existing consumer knowledge of your product.

In this article, we explore product advertising, its benefits, forms, and how it works.

Product advertisinginvolves informing consumers about a product and persuading them to purchase. Product advertising is a form of marketing that presents products in a positive light. It focuses on the features and advantages of the product instead of its disadvantages.

This form of advertising does not typically disclose all the details about the product. It sets the overall tone for the brand and informs the target audience about the product’s key benefits.

Product advertisingaims to convince the audience that the product is beneficial so that they will become buyers. Businesses use product advertisements through television, radio, print, and other sources of communication. The advent of the Internet, especially the World Wide Web, has resulted in the rise of online product advertising.

Now that we understand what product advertising entails, let’s look at some of its advantages.

1. It increases brand awareness

Product advertising creates an awareness of your brand and help new customers find your products and services. It also helps convince consumers to choose your product over competitors.

Effective product advertising bridges the gap between the brand and the consumer. With product advertising, the public becomes aware of the brand, its product, and its benefits.

2. Differentiates you from your competitors

In a competitive market, differentiating your product from others is crucial for success. Product advertising lets your target audience clearly tell the difference between your product and your competitors’. Through advertising, the consumer becomes aware of a product’s unique features and can quickly identify it in the marketplace.

3. Creates demand

Offering the highest value to your target market can be a competitive advantage for your company. Product advertising creates demand and utilizes your existing customers to market your company’s product to new customers. With the right product advertising, your target audience becomes active buyers.

4. Target particular customers

Knowing your target customer is essential to incorporating valuable marketing strategies to increase customer loyalty and sales. You can target specific customers likely to purchase your product or service through product advertising.

5. Boosts customer loyalty to a brand

Product advertising can lead to customer loyalty to your brand. Your goal as a product advertiser is to create overall brand loyalty by informing consumers of the products’ benefits. Effective product advertising will make customers return to purchase a product or service.

6. Reduces misconceptions

Your target audience may have wrong notions about your product. Product advertising allows you to correct these misconceptions and provide consumers with the correct information. This way, you give them reasons to trust your brand and buy your products.

Product advertising can be used to create awareness about a product, convey a marketing message and create enthusiasm (for a product or a brand). It can also serve to motivate trials and persuade audiences to switch from one brand to another.

Consider using product advertising to introduce a new product to the market to help consumers understand why it is essential. You may also consider using product advertising to promote your product if consumers are selective about which to purchase.

Knowing the different forms of product advertising is the first step towards implementing the appropriate one for your company.

The three primary forms of product advertising are discussed below:

In comparative advertising, a product or service is marketed to an audience by comparing it with one or more competing brands. This form of advertising focuses on the product features that may influence consumers’ purchasing decisions.

Comparative advertising helps the audience decide which service or product to use by assisting them to understand their options better.

Competitive advertising suggests that a product is better than a competitor’s products. It focuses on the price difference, values, and features a product has, that may not be available in similar products from other brands.

The goal of competitive advertising is to convince potential customers that a company’s products are better than similar ones in the market.

Pioneering advertising follows the introduction of a new product or service to the market. It aims to create public awareness and build interest in the new product. These advertisements include thorough explanations about the benefits of the product.

Online product advertisements are a great way to connect with customers. Online ads featuring individual product photographs are ideal, as they encourage customers to click and purchase immediately. Videos are also attention-grabbing and an excellent way of communicating various information.

Print advertisements allow you to provide customers with detailed explanations of the advantages of using a product. Print advertisement types, like magazines, will enable you to target a specific audience. For instance, a company selling fashion products may consider placing an advertisement in a magazine focused on fashion.

Television advertisements provide a sensation that entices one to buy the advertised product. These ads may be beneficial as they show the product’s value and how it may enhance the buyer’s life. TV ads are effective for comparing your brand’s product with another. The enormous audience of television advertisements makes it possible to target many potential consumers.

Billboard advertisements are primarily intended for mass communication. They can effectively communicate your product’s availability and proximity to consumers, like a billboard advertising a cybercafé a few miles away.

Billboard advertisements are also great for comparing your product with a competitor’s. In addition, they are a relatively inexpensive means of advertisement.

Conclusion

Product advertising encourages consumers to want a product. It is different from other forms of advertising in how it creates a sense of awareness about the features and benefits of the product.

Product advertising is an efficient way for businesses to increase brand awareness, differentiate themselves from their competitors, create demand, and boost sales.

Page 8

Product advertising aims to create awareness about a product and attract consumers to make a purchase. It’s essential to select the most effective and sales-driving product advertising strategy based on your goals and the existing consumer knowledge of your product.

In this article, we explore product advertising, its benefits, forms, and how it works.

Product advertisinginvolves informing consumers about a product and persuading them to purchase. Product advertising is a form of marketing that presents products in a positive light. It focuses on the features and advantages of the product instead of its disadvantages.

This form of advertising does not typically disclose all the details about the product. It sets the overall tone for the brand and informs the target audience about the product’s key benefits.

Product advertisingaims to convince the audience that the product is beneficial so that they will become buyers. Businesses use product advertisements through television, radio, print, and other sources of communication. The advent of the Internet, especially the World Wide Web, has resulted in the rise of online product advertising.

Now that we understand what product advertising entails, let’s look at some of its advantages.

1. It increases brand awareness

Product advertising creates an awareness of your brand and help new customers find your products and services. It also helps convince consumers to choose your product over competitors.

Effective product advertising bridges the gap between the brand and the consumer. With product advertising, the public becomes aware of the brand, its product, and its benefits.

2. Differentiates you from your competitors

In a competitive market, differentiating your product from others is crucial for success. Product advertising lets your target audience clearly tell the difference between your product and your competitors’. Through advertising, the consumer becomes aware of a product’s unique features and can quickly identify it in the marketplace.

3. Creates demand

Offering the highest value to your target market can be a competitive advantage for your company. Product advertising creates demand and utilizes your existing customers to market your company’s product to new customers. With the right product advertising, your target audience becomes active buyers.

4. Target particular customers

Knowing your target customer is essential to incorporating valuable marketing strategies to increase customer loyalty and sales. You can target specific customers likely to purchase your product or service through product advertising.

5. Boosts customer loyalty to a brand

Product advertising can lead to customer loyalty to your brand. Your goal as a product advertiser is to create overall brand loyalty by informing consumers of the products’ benefits. Effective product advertising will make customers return to purchase a product or service.

6. Reduces misconceptions

Your target audience may have wrong notions about your product. Product advertising allows you to correct these misconceptions and provide consumers with the correct information. This way, you give them reasons to trust your brand and buy your products.

Product advertising can be used to create awareness about a product, convey a marketing message and create enthusiasm (for a product or a brand). It can also serve to motivate trials and persuade audiences to switch from one brand to another.

Consider using product advertising to introduce a new product to the market to help consumers understand why it is essential. You may also consider using product advertising to promote your product if consumers are selective about which to purchase.

Knowing the different forms of product advertising is the first step towards implementing the appropriate one for your company.

The three primary forms of product advertising are discussed below:

In comparative advertising, a product or service is marketed to an audience by comparing it with one or more competing brands. This form of advertising focuses on the product features that may influence consumers’ purchasing decisions.

Comparative advertising helps the audience decide which service or product to use by assisting them to understand their options better.

Competitive advertising suggests that a product is better than a competitor’s products. It focuses on the price difference, values, and features a product has, that may not be available in similar products from other brands.

The goal of competitive advertising is to convince potential customers that a company’s products are better than similar ones in the market.

Pioneering advertising follows the introduction of a new product or service to the market. It aims to create public awareness and build interest in the new product. These advertisements include thorough explanations about the benefits of the product.

Online product advertisements are a great way to connect with customers. Online ads featuring individual product photographs are ideal, as they encourage customers to click and purchase immediately. Videos are also attention-grabbing and an excellent way of communicating various information.

Print advertisements allow you to provide customers with detailed explanations of the advantages of using a product. Print advertisement types, like magazines, will enable you to target a specific audience. For instance, a company selling fashion products may consider placing an advertisement in a magazine focused on fashion.

Television advertisements provide a sensation that entices one to buy the advertised product. These ads may be beneficial as they show the product’s value and how it may enhance the buyer’s life. TV ads are effective for comparing your brand’s product with another. The enormous audience of television advertisements makes it possible to target many potential consumers.

Billboard advertisements are primarily intended for mass communication. They can effectively communicate your product’s availability and proximity to consumers, like a billboard advertising a cybercafé a few miles away.

Billboard advertisements are also great for comparing your product with a competitor’s. In addition, they are a relatively inexpensive means of advertisement.

Conclusion

Product advertising encourages consumers to want a product. It is different from other forms of advertising in how it creates a sense of awareness about the features and benefits of the product.

Product advertising is an efficient way for businesses to increase brand awareness, differentiate themselves from their competitors, create demand, and boost sales.

Page 9

Product advertising aims to create awareness about a product and attract consumers to make a purchase. It’s essential to select the most effective and sales-driving product advertising strategy based on your goals and the existing consumer knowledge of your product.

In this article, we explore product advertising, its benefits, forms, and how it works.

Product advertisinginvolves informing consumers about a product and persuading them to purchase. Product advertising is a form of marketing that presents products in a positive light. It focuses on the features and advantages of the product instead of its disadvantages.

This form of advertising does not typically disclose all the details about the product. It sets the overall tone for the brand and informs the target audience about the product’s key benefits.

Product advertisingaims to convince the audience that the product is beneficial so that they will become buyers. Businesses use product advertisements through television, radio, print, and other sources of communication. The advent of the Internet, especially the World Wide Web, has resulted in the rise of online product advertising.

Now that we understand what product advertising entails, let’s look at some of its advantages.

1. It increases brand awareness

Product advertising creates an awareness of your brand and help new customers find your products and services. It also helps convince consumers to choose your product over competitors.

Effective product advertising bridges the gap between the brand and the consumer. With product advertising, the public becomes aware of the brand, its product, and its benefits.

2. Differentiates you from your competitors

In a competitive market, differentiating your product from others is crucial for success. Product advertising lets your target audience clearly tell the difference between your product and your competitors’. Through advertising, the consumer becomes aware of a product’s unique features and can quickly identify it in the marketplace.

3. Creates demand

Offering the highest value to your target market can be a competitive advantage for your company. Product advertising creates demand and utilizes your existing customers to market your company’s product to new customers. With the right product advertising, your target audience becomes active buyers.

4. Target particular customers

Knowing your target customer is essential to incorporating valuable marketing strategies to increase customer loyalty and sales. You can target specific customers likely to purchase your product or service through product advertising.

5. Boosts customer loyalty to a brand

Product advertising can lead to customer loyalty to your brand. Your goal as a product advertiser is to create overall brand loyalty by informing consumers of the products’ benefits. Effective product advertising will make customers return to purchase a product or service.

6. Reduces misconceptions

Your target audience may have wrong notions about your product. Product advertising allows you to correct these misconceptions and provide consumers with the correct information. This way, you give them reasons to trust your brand and buy your products.

Product advertising can be used to create awareness about a product, convey a marketing message and create enthusiasm (for a product or a brand). It can also serve to motivate trials and persuade audiences to switch from one brand to another.

Consider using product advertising to introduce a new product to the market to help consumers understand why it is essential. You may also consider using product advertising to promote your product if consumers are selective about which to purchase.

Knowing the different forms of product advertising is the first step towards implementing the appropriate one for your company.

The three primary forms of product advertising are discussed below:

In comparative advertising, a product or service is marketed to an audience by comparing it with one or more competing brands. This form of advertising focuses on the product features that may influence consumers’ purchasing decisions.

Comparative advertising helps the audience decide which service or product to use by assisting them to understand their options better.

Competitive advertising suggests that a product is better than a competitor’s products. It focuses on the price difference, values, and features a product has, that may not be available in similar products from other brands.

The goal of competitive advertising is to convince potential customers that a company’s products are better than similar ones in the market.

Pioneering advertising follows the introduction of a new product or service to the market. It aims to create public awareness and build interest in the new product. These advertisements include thorough explanations about the benefits of the product.

Online product advertisements are a great way to connect with customers. Online ads featuring individual product photographs are ideal, as they encourage customers to click and purchase immediately. Videos are also attention-grabbing and an excellent way of communicating various information.

Print advertisements allow you to provide customers with detailed explanations of the advantages of using a product. Print advertisement types, like magazines, will enable you to target a specific audience. For instance, a company selling fashion products may consider placing an advertisement in a magazine focused on fashion.

Television advertisements provide a sensation that entices one to buy the advertised product. These ads may be beneficial as they show the product’s value and how it may enhance the buyer’s life. TV ads are effective for comparing your brand’s product with another. The enormous audience of television advertisements makes it possible to target many potential consumers.

Billboard advertisements are primarily intended for mass communication. They can effectively communicate your product’s availability and proximity to consumers, like a billboard advertising a cybercafé a few miles away.

Billboard advertisements are also great for comparing your product with a competitor’s. In addition, they are a relatively inexpensive means of advertisement.

Conclusion

Product advertising encourages consumers to want a product. It is different from other forms of advertising in how it creates a sense of awareness about the features and benefits of the product.

Product advertising is an efficient way for businesses to increase brand awareness, differentiate themselves from their competitors, create demand, and boost sales.

Page 10

Do you ever wonder how the prices of products are determined? Why are some products more expensive than others, even when they fulfill similar functions with the same level of effectiveness? Businesses don’t price products whimsically. This article will help you understand the product pricing process and its importance.

Read on to begin.

What is Product Pricing?

Product pricing is a strategy that determines the value of a product to a consumer when they make a purchasing decision. Factors such as market characteristics, input costs, a company’s business model, product characteristics, and utility affect product price. The price of competing products can also affect product price.

The three main factors to consider are:

• The value you deliver to customers.
• Your brand’s position in the market.
• Competitor pricing strategies.

Why is it Important?

Product pricing is important because it dictates the growth margins of your business. Customers almost always avoid overpriced products, while companies may go bankrupt if they underprice their products.

The primary principle is to ensure customers get value from what they pay for, and companies profit from manufacturing and selling products.

Striking a balance between what customers are willing to pay for and company profits is key to pricing your products correctly.

The following section outlines the general process for determining a product’s price.

Key Product Pricing Steps

1. Summarize Variable Costs Per Product

This step means you must consider all costs related to producing your product. It can include raw materials, labor, and variable overhead costs (costs that change based on production volume).

Don’t forget that the time spent producing your product is also valuable; Include it in your cost summary. 

For example:

A shoemaker spends $50 on raw materials. The shoe design is intricate and time-consuming. The shoemaker decides to add an extra $30 to account for time and labor costs. Therefore, each shoe will cost $80 to produce.

2. Set Profit Margins

Profit margins are the minimum amount of money a company needs to profit from a sale. The company’s profit margin is calculated by subtracting total costs from total revenues. You have to manage this budget line to have a successful business. 

For example:

To earn a 25% profit, you need to price your product to cover variable product costs and make a 25% profit.

The shoemaker spends $80 to produce a pair of shoes. To earn a 25% profit, the shoemaker must sell the shoes for $100. 

($80 covers production costs, and the shoemaker has a $20 profit.)

But that’s not all you need to account for.

3. Account for Fixed Costs

Fixed costs refer to expenses incurred regardless of production. Companies pay these costs even if they aren’t producing and selling a product.

These costs are built into the company’s operating costs. Whether you sell ten products or a hundred, you pay the exact price. 

Fixed costs are challenging to determine. It’s why we highly recommend performing a break-even analysis. You may also use product price calculators to help make your job easier.

Bonus: Product Price Examples

Apart from your standard pricing process, you can also use these pricing strategies:

Competitor-Based Pricing

A competitor-based pricing strategy considers the prices your closest competitor charges. Your pricing can be derived by averaging the competitor’s price. Then, set your price higher or lower depending on your brand’s positioning. 

For example:

Apple can charge a lot of money for its products. Apart from top-quality products, they also have excellent market positioning.

Cost-Plus Pricing

Cost-Plus pricing refers to the classic formula of selling price calculation. 

Add your preferred pricing percentage to production costs for a single unit. 

For example:

Our shoemaker wants a 25% profit. He adds 25% on top of production costs. As shown below:

$80 (production cost) + $20 (25% of $80) = $100 (Product price required to generate a 25% profit) 

Value-Based Pricing

In value-based pricing, a product’s price is based on its value to the customer. (Plus production costs). Value-based pricing is most applicable to high-demand products. 

For example:

It turns out that Cristóbal Balenciaga designed the pair of shoes. Designer brands are notoriously expensive because of their perceived value. Instead of charging just $100 (profit + production cost), the shoes now cost $400. 

Conclusion

Identifying the factors important for increasing demand for your product is an important step in determining pricing. Price plays a vital role in the success of any business, but that’s not where product pricing ends. Understanding the three key steps above will help you sell products effectively without losing inventory.

Page 11

Do you ever wonder how the prices of products are determined? Why are some products more expensive than others, even when they fulfill similar functions with the same level of effectiveness? Businesses don’t price products whimsically. This article will help you understand the product pricing process and its importance.

Read on to begin.

What is Product Pricing?

Product pricing is a strategy that determines the value of a product to a consumer when they make a purchasing decision. Factors such as market characteristics, input costs, a company’s business model, product characteristics, and utility affect product price. The price of competing products can also affect product price.

The three main factors to consider are:

• The value you deliver to customers.
• Your brand’s position in the market.
• Competitor pricing strategies.

Why is it Important?

Product pricing is important because it dictates the growth margins of your business. Customers almost always avoid overpriced products, while companies may go bankrupt if they underprice their products.

The primary principle is to ensure customers get value from what they pay for, and companies profit from manufacturing and selling products.

Striking a balance between what customers are willing to pay for and company profits is key to pricing your products correctly.

The following section outlines the general process for determining a product’s price.

Key Product Pricing Steps

1. Summarize Variable Costs Per Product

This step means you must consider all costs related to producing your product. It can include raw materials, labor, and variable overhead costs (costs that change based on production volume).

Don’t forget that the time spent producing your product is also valuable; Include it in your cost summary. 

For example:

A shoemaker spends $50 on raw materials. The shoe design is intricate and time-consuming. The shoemaker decides to add an extra $30 to account for time and labor costs. Therefore, each shoe will cost $80 to produce.

2. Set Profit Margins

Profit margins are the minimum amount of money a company needs to profit from a sale. The company’s profit margin is calculated by subtracting total costs from total revenues. You have to manage this budget line to have a successful business. 

For example:

To earn a 25% profit, you need to price your product to cover variable product costs and make a 25% profit.

The shoemaker spends $80 to produce a pair of shoes. To earn a 25% profit, the shoemaker must sell the shoes for $100. 

($80 covers production costs, and the shoemaker has a $20 profit.)

But that’s not all you need to account for.

3. Account for Fixed Costs

Fixed costs refer to expenses incurred regardless of production. Companies pay these costs even if they aren’t producing and selling a product.

These costs are built into the company’s operating costs. Whether you sell ten products or a hundred, you pay the exact price. 

Fixed costs are challenging to determine. It’s why we highly recommend performing a break-even analysis. You may also use product price calculators to help make your job easier.

Bonus: Product Price Examples

Apart from your standard pricing process, you can also use these pricing strategies:

Competitor-Based Pricing

A competitor-based pricing strategy considers the prices your closest competitor charges. Your pricing can be derived by averaging the competitor’s price. Then, set your price higher or lower depending on your brand’s positioning. 

For example:

Apple can charge a lot of money for its products. Apart from top-quality products, they also have excellent market positioning.

Cost-Plus Pricing

Cost-Plus pricing refers to the classic formula of selling price calculation. 

Add your preferred pricing percentage to production costs for a single unit. 

For example:

Our shoemaker wants a 25% profit. He adds 25% on top of production costs. As shown below:

$80 (production cost) + $20 (25% of $80) = $100 (Product price required to generate a 25% profit) 

Value-Based Pricing

In value-based pricing, a product’s price is based on its value to the customer. (Plus production costs). Value-based pricing is most applicable to high-demand products. 

For example:

It turns out that Cristóbal Balenciaga designed the pair of shoes. Designer brands are notoriously expensive because of their perceived value. Instead of charging just $100 (profit + production cost), the shoes now cost $400. 

Conclusion

Identifying the factors important for increasing demand for your product is an important step in determining pricing. Price plays a vital role in the success of any business, but that’s not where product pricing ends. Understanding the three key steps above will help you sell products effectively without losing inventory.

Page 12

Do you ever wonder how the prices of products are determined? Why are some products more expensive than others, even when they fulfill similar functions with the same level of effectiveness? Businesses don’t price products whimsically. This article will help you understand the product pricing process and its importance.

Read on to begin.

What is Product Pricing?

Product pricing is a strategy that determines the value of a product to a consumer when they make a purchasing decision. Factors such as market characteristics, input costs, a company’s business model, product characteristics, and utility affect product price. The price of competing products can also affect product price.

The three main factors to consider are:

• The value you deliver to customers.
• Your brand’s position in the market.
• Competitor pricing strategies.

Why is it Important?

Product pricing is important because it dictates the growth margins of your business. Customers almost always avoid overpriced products, while companies may go bankrupt if they underprice their products.

The primary principle is to ensure customers get value from what they pay for, and companies profit from manufacturing and selling products.

Striking a balance between what customers are willing to pay for and company profits is key to pricing your products correctly.

The following section outlines the general process for determining a product’s price.

Key Product Pricing Steps

1. Summarize Variable Costs Per Product

This step means you must consider all costs related to producing your product. It can include raw materials, labor, and variable overhead costs (costs that change based on production volume).

Don’t forget that the time spent producing your product is also valuable; Include it in your cost summary. 

For example:

A shoemaker spends $50 on raw materials. The shoe design is intricate and time-consuming. The shoemaker decides to add an extra $30 to account for time and labor costs. Therefore, each shoe will cost $80 to produce.

2. Set Profit Margins

Profit margins are the minimum amount of money a company needs to profit from a sale. The company’s profit margin is calculated by subtracting total costs from total revenues. You have to manage this budget line to have a successful business. 

For example:

To earn a 25% profit, you need to price your product to cover variable product costs and make a 25% profit.

The shoemaker spends $80 to produce a pair of shoes. To earn a 25% profit, the shoemaker must sell the shoes for $100. 

($80 covers production costs, and the shoemaker has a $20 profit.)

But that’s not all you need to account for.

3. Account for Fixed Costs

Fixed costs refer to expenses incurred regardless of production. Companies pay these costs even if they aren’t producing and selling a product.

These costs are built into the company’s operating costs. Whether you sell ten products or a hundred, you pay the exact price. 

Fixed costs are challenging to determine. It’s why we highly recommend performing a break-even analysis. You may also use product price calculators to help make your job easier.

Bonus: Product Price Examples

Apart from your standard pricing process, you can also use these pricing strategies:

Competitor-Based Pricing

A competitor-based pricing strategy considers the prices your closest competitor charges. Your pricing can be derived by averaging the competitor’s price. Then, set your price higher or lower depending on your brand’s positioning. 

For example:

Apple can charge a lot of money for its products. Apart from top-quality products, they also have excellent market positioning.

Cost-Plus Pricing

Cost-Plus pricing refers to the classic formula of selling price calculation. 

Add your preferred pricing percentage to production costs for a single unit. 

For example:

Our shoemaker wants a 25% profit. He adds 25% on top of production costs. As shown below:

$80 (production cost) + $20 (25% of $80) = $100 (Product price required to generate a 25% profit) 

Value-Based Pricing

In value-based pricing, a product’s price is based on its value to the customer. (Plus production costs). Value-based pricing is most applicable to high-demand products. 

For example:

It turns out that Cristóbal Balenciaga designed the pair of shoes. Designer brands are notoriously expensive because of their perceived value. Instead of charging just $100 (profit + production cost), the shoes now cost $400. 

Conclusion

Identifying the factors important for increasing demand for your product is an important step in determining pricing. Price plays a vital role in the success of any business, but that’s not where product pricing ends. Understanding the three key steps above will help you sell products effectively without losing inventory.

Page 13

A sales discount is one of the most common ways to promote a product. But there are plenty more product promotion methods you can use to grow your audience and increase your conversions.

In this article, we’ve listed some of the most effective ways to promote your products. Try these methods out to see what will work best for you and your business.

Why Promote a Product?

Many businesses pay a lot of attention to promotions, and for a good reason. Promotion is one of the 4Ps in the marketing mix. They help to attract and retain new customers, maintain and grow brand awareness, and promote the company.

While these efforts are not without challenges, product promotion is an effective way to stand out in the market and boost your business. With great promotion, your products and services will likely be remembered by your audience for years.

The Five Types of Product Promotion

Here are the five types of product promotion.

Advertising helps to promote products by letting consumers know their good qualities. Online advertising can also take the form of other content such as videos or blog posts. The most effective form of advertising is PR, which combines advertising and publicity to promote a product.

2. Direct Promotion

Direct promotion is when the company directly sells to its customers. It can be as proactive as tweeting about their product or as reactive as creating a blog post. This helps to develop connections with the audience and gain new followers, customers, or a customer base. These promotional tactics rely heavily on the use of social media.

3. Sales Promotion

Brands usually have sales, discounts, and special introductory offers to entice consumers to buy from them. This is what is referred to as sales promotion. It can also include other incentives for consumers to purchase or use a promotional code.

4. Self-promotion

Building good relationships with your customers to offer them products or services is important. And self-promotion is the best method to do this. Sales agents are usually the ones who actively self-promote a product directly to clients.

Self-promotion has been proven to increase product sales because the sales agents are strategically located. They are more accessible to the customers and potential customers.

5. Online Promotion

Online promotion is a combination of different promotional methods. It can include everything from pay-per-click advertisements to direct email marketing. You can also host online events or run social media contests.

Five Effective Methods of Product Promotion

1. Contests and Giveaways

Competitions on social media may be about getting the most engagement on a post your brand is tagged in. It can also be in the form of fun challenges to win an entry. This is a great way to create buzz around your business and reward customers who support you and promote your brand.

2. Flash Sales

A flash sale is a promotion whereby a discount, promotion, or rebate lasts only for a short duration. This can last from a few hours to a couple of days. Flash sales can create an urgency that motivates consumers to purchase.

3. Product Bundles

Some product sets can have the potential to create more value as bundled offerings rather than standalone items. Selling them in bundles for a discounted rate can help increase your overall conversions. For example, you can sell a remote along with its batteries in a single bundle.

4. Free Trials

Free trials can help you give customers a taste of what you have to offer. Several retailers offer free samples before purchasing. Some other brands may also offer free testing or demos of their products or services. This allows potential customers to test the products and see their quality.

5. Coupons

Everybody loves coupons. Coupons are very versatile. They can be delivered online, via social media, or through product packaging. They are a great way to thank existing customers or encourage customers to return.

6. Sales for a Cause

Marketing a product that dedicates a portion of your purchase to an important cause or charity can boost sales. Not only will customers feel better about their purchases, but you’ll also have the chance to enhance your brand image.

To Wrap Up

Product promotions can take many forms and purposes, with each of the methods mentioned above having its strengths and weaknesses. Both promotional costs and marketing results will vary greatly depending on the selected marketing method and its goal. 

However, the bottom line is that product promotions always drive sales. With effective methods for product promotion, you can reap the rewards and build a truly successful business.

Page 14

A sales discount is one of the most common ways to promote a product. But there are plenty more product promotion methods you can use to grow your audience and increase your conversions.

In this article, we’ve listed some of the most effective ways to promote your products. Try these methods out to see what will work best for you and your business.

Why Promote a Product?

Many businesses pay a lot of attention to promotions, and for a good reason. Promotion is one of the 4Ps in the marketing mix. They help to attract and retain new customers, maintain and grow brand awareness, and promote the company.

While these efforts are not without challenges, product promotion is an effective way to stand out in the market and boost your business. With great promotion, your products and services will likely be remembered by your audience for years.

The Five Types of Product Promotion

Here are the five types of product promotion.

Advertising helps to promote products by letting consumers know their good qualities. Online advertising can also take the form of other content such as videos or blog posts. The most effective form of advertising is PR, which combines advertising and publicity to promote a product.

2. Direct Promotion

Direct promotion is when the company directly sells to its customers. It can be as proactive as tweeting about their product or as reactive as creating a blog post. This helps to develop connections with the audience and gain new followers, customers, or a customer base. These promotional tactics rely heavily on the use of social media.

3. Sales Promotion

Brands usually have sales, discounts, and special introductory offers to entice consumers to buy from them. This is what is referred to as sales promotion. It can also include other incentives for consumers to purchase or use a promotional code.

4. Self-promotion

Building good relationships with your customers to offer them products or services is important. And self-promotion is the best method to do this. Sales agents are usually the ones who actively self-promote a product directly to clients.

Self-promotion has been proven to increase product sales because the sales agents are strategically located. They are more accessible to the customers and potential customers.

5. Online Promotion

Online promotion is a combination of different promotional methods. It can include everything from pay-per-click advertisements to direct email marketing. You can also host online events or run social media contests.

Five Effective Methods of Product Promotion

1. Contests and Giveaways

Competitions on social media may be about getting the most engagement on a post your brand is tagged in. It can also be in the form of fun challenges to win an entry. This is a great way to create buzz around your business and reward customers who support you and promote your brand.

2. Flash Sales

A flash sale is a promotion whereby a discount, promotion, or rebate lasts only for a short duration. This can last from a few hours to a couple of days. Flash sales can create an urgency that motivates consumers to purchase.

3. Product Bundles

Some product sets can have the potential to create more value as bundled offerings rather than standalone items. Selling them in bundles for a discounted rate can help increase your overall conversions. For example, you can sell a remote along with its batteries in a single bundle.

4. Free Trials

Free trials can help you give customers a taste of what you have to offer. Several retailers offer free samples before purchasing. Some other brands may also offer free testing or demos of their products or services. This allows potential customers to test the products and see their quality.

5. Coupons

Everybody loves coupons. Coupons are very versatile. They can be delivered online, via social media, or through product packaging. They are a great way to thank existing customers or encourage customers to return.

6. Sales for a Cause

Marketing a product that dedicates a portion of your purchase to an important cause or charity can boost sales. Not only will customers feel better about their purchases, but you’ll also have the chance to enhance your brand image.

To Wrap Up

Product promotions can take many forms and purposes, with each of the methods mentioned above having its strengths and weaknesses. Both promotional costs and marketing results will vary greatly depending on the selected marketing method and its goal. 

However, the bottom line is that product promotions always drive sales. With effective methods for product promotion, you can reap the rewards and build a truly successful business.

Page 15

A sales discount is one of the most common ways to promote a product. But there are plenty more product promotion methods you can use to grow your audience and increase your conversions.

In this article, we’ve listed some of the most effective ways to promote your products. Try these methods out to see what will work best for you and your business.

Why Promote a Product?

Many businesses pay a lot of attention to promotions, and for a good reason. Promotion is one of the 4Ps in the marketing mix. They help to attract and retain new customers, maintain and grow brand awareness, and promote the company.

While these efforts are not without challenges, product promotion is an effective way to stand out in the market and boost your business. With great promotion, your products and services will likely be remembered by your audience for years.

The Five Types of Product Promotion

Here are the five types of product promotion.

Advertising helps to promote products by letting consumers know their good qualities. Online advertising can also take the form of other content such as videos or blog posts. The most effective form of advertising is PR, which combines advertising and publicity to promote a product.

2. Direct Promotion

Direct promotion is when the company directly sells to its customers. It can be as proactive as tweeting about their product or as reactive as creating a blog post. This helps to develop connections with the audience and gain new followers, customers, or a customer base. These promotional tactics rely heavily on the use of social media.

3. Sales Promotion

Brands usually have sales, discounts, and special introductory offers to entice consumers to buy from them. This is what is referred to as sales promotion. It can also include other incentives for consumers to purchase or use a promotional code.

4. Self-promotion

Building good relationships with your customers to offer them products or services is important. And self-promotion is the best method to do this. Sales agents are usually the ones who actively self-promote a product directly to clients.

Self-promotion has been proven to increase product sales because the sales agents are strategically located. They are more accessible to the customers and potential customers.

5. Online Promotion

Online promotion is a combination of different promotional methods. It can include everything from pay-per-click advertisements to direct email marketing. You can also host online events or run social media contests.

Five Effective Methods of Product Promotion

1. Contests and Giveaways

Competitions on social media may be about getting the most engagement on a post your brand is tagged in. It can also be in the form of fun challenges to win an entry. This is a great way to create buzz around your business and reward customers who support you and promote your brand.

2. Flash Sales

A flash sale is a promotion whereby a discount, promotion, or rebate lasts only for a short duration. This can last from a few hours to a couple of days. Flash sales can create an urgency that motivates consumers to purchase.

3. Product Bundles

Some product sets can have the potential to create more value as bundled offerings rather than standalone items. Selling them in bundles for a discounted rate can help increase your overall conversions. For example, you can sell a remote along with its batteries in a single bundle.

4. Free Trials

Free trials can help you give customers a taste of what you have to offer. Several retailers offer free samples before purchasing. Some other brands may also offer free testing or demos of their products or services. This allows potential customers to test the products and see their quality.

5. Coupons

Everybody loves coupons. Coupons are very versatile. They can be delivered online, via social media, or through product packaging. They are a great way to thank existing customers or encourage customers to return.

6. Sales for a Cause

Marketing a product that dedicates a portion of your purchase to an important cause or charity can boost sales. Not only will customers feel better about their purchases, but you’ll also have the chance to enhance your brand image.

To Wrap Up

Product promotions can take many forms and purposes, with each of the methods mentioned above having its strengths and weaknesses. Both promotional costs and marketing results will vary greatly depending on the selected marketing method and its goal. 

However, the bottom line is that product promotions always drive sales. With effective methods for product promotion, you can reap the rewards and build a truly successful business.

Page 16

Product strategy is a strategic plan that defines the creation and delivery of a product to meet the needs of a company’s market. The strategy answers questions such as: who the product’s target audience is, and how they will benefit from the product.

This article explores the concept of product strategy in detail.

Product Strategy: An Overview

A product strategy is a high-level corporate strategy driving a new product’s creation, development, and commercialization. Product strategy is essential to the successful development of a product.

It involves creating new products, determining what features to include in each new product, and marketing the product’s features based on customer-specific needs.

Product strategy refers to how organizations seek to adequately respond to market needs. It could be by rapidly deploying new, unproven products or nurturing an established product. The team must have a collaborative and goal-driven purpose to execute a successful product strategy.

A product strategy defines a product vision, mission, and accompanying plan. Vision defines what the product hopes to achieve in the future. The mission represents what the product is and what it offers the users. On the other hand, the plan represents how the product will enter the market.

Importance of Product Strategy

Product strategy is a discipline that helps organizations understand their relationship with their customers, define the right performance metrics, and manage the cost structure. Specifically, it provides a framework for how to craft products and services to meet changing customer needs. Also, to embrace the innovation potential of disruptive technologies.

Product strategy will help you achieve a practical understanding of your audience, competitors, and market. It will also provide an overview of the different market segments and their needs.

Some of the importance of product strategy are:

1. Provides clarity to the team.

A product strategy is an overarching strategy with which a company defines its overall direction, inputs, outputs, and game plan. It outlines how the business will meet its goals.

Without a product strategy, it becomes difficult to determine how a product will be developed and what purpose it will serve. Developers will understand how the parts of the product they’re working on play a role in the company’s strategic goals. The marketing and sales team will be able to point out the product’s benefits and unique selling proposition.

2. Helps you prioritize your product roadmap.

A product strategy gives you a clearer picture of what you hope to accomplish with your product. You can then translate it into a more strategically sound product roadmap that guides your decisions.

With the product strategy, your team will prioritize the right items and manage time and resources to create a quality product.

3. Improves the team’s tactical decisions.

The plan drafted for developing a product might change during production. As such, product managers would need to adjust their plans to manage the changes. With a clear product strategy as a reference, you can make strategic decisions regarding the adjustment of your plans.

Components of Product Strategy

There are three significant components of product strategy. They include:

1. Market Vision

The market vision describes the big picture of the product’s future. It articulates the company’s aspirations and hopes. This includes the product’s future users, the market it is developed for, and the opportunity the product will yield for the business.

Market vision also highlights how the product will be positioned in the market and how it will strive against competitors’ products.

2. Product Goals

After taking the time to think about the overall market vision, you should set product goals that are specific and measurable. Think of them as checkpoints on your product roadmap. You should also decide on the metrics you will use to measure your product’s performance and what kind of team will monitor it.

Goal-setting should be time-based, so there’s urgency for when you’ll accomplish them. This gives your product much more relevance since you’ve added a time constraint to its success.

3. Product Initiatives

Product initiatives are themes we create from our product goals and put on our roadmap. They are significant, complex objectives that must be broken into actionable tasks. Examples of product initiatives are adding customer delight, improving customer satisfaction, increasing lifetime customer value, upselling new services, and sustaining product features.

Types of Product Strategies

1. Cost Strategy

This strategy is designed to create a competitive advantage in the marketplace. Also referred to as “cost advantage,” it is usually the result of manufacturing a product cheaper or in greater volume than your competitors.

A cost strategy involves taking a small budget and looking for a low-risk way to produce a high-quality product. It could mean finding substitutes for expensive or scarce materials to create a highly-competitive quality product. It also includes a discounting strategy where you provide a product for a lower price so that consumers are more likely to buy it.

2. Differentiation Strategy

The differentiation strategy is another way to stand out in your industry. Differentiators provide the customer with a different level of product performance or experience than any other product. Differentiation strategies include using the best materials to make a unique product. It also involves introducing a new product feature, working with specialized partners, or offering unique customizations.

This approach aims to give the product a delightful personality that consumers want to interact

3. Focus Strategy

The focus strategy targets the needs of a group of people. With a large customer base, you might want to identify the problem of a specific buyer persona and create a personalized solution for them. This is an effective strategy to gain brand loyalty when acquiring new customers.

4. Quality Strategy

The quality strategy focuses on delivering a high-quality product with quantifiable customer benefits. Quality as your product strategy allows you to provide a customer experience worth the product’s value.

The high cost of production of such products resulting in their high sales prices, does not deter the buyers. The buyers recognize such products as luxury and worth the investment.

5. Service Strategy

The service strategy is becoming the driving force behind customers’ purchasing behavior. Successful companies create a close relationship with the customer. It’s not enough to offer the best quality products – outstanding customer service is also required.

A company can build lasting brand loyalty with a quick response and effective after-sales service. For example, a customer that experienced snags during the buying process will think twice about returning to the same brand.

To Wrap Up

A product strategy is a set of tactics that a company uses to help identify and better align its product roadmap, products, and goals.

Through product strategy, a company can improve how it provides its products and services, ultimately improving the quality and experience of users.

Page 17

Product strategy is a strategic plan that defines the creation and delivery of a product to meet the needs of a company’s market. The strategy answers questions such as: who the product’s target audience is, and how they will benefit from the product.

This article explores the concept of product strategy in detail.

Product Strategy: An Overview

A product strategy is a high-level corporate strategy driving a new product’s creation, development, and commercialization. Product strategy is essential to the successful development of a product.

It involves creating new products, determining what features to include in each new product, and marketing the product’s features based on customer-specific needs.

Product strategy refers to how organizations seek to adequately respond to market needs. It could be by rapidly deploying new, unproven products or nurturing an established product. The team must have a collaborative and goal-driven purpose to execute a successful product strategy.

A product strategy defines a product vision, mission, and accompanying plan. Vision defines what the product hopes to achieve in the future. The mission represents what the product is and what it offers the users. On the other hand, the plan represents how the product will enter the market.

Importance of Product Strategy

Product strategy is a discipline that helps organizations understand their relationship with their customers, define the right performance metrics, and manage the cost structure. Specifically, it provides a framework for how to craft products and services to meet changing customer needs. Also, to embrace the innovation potential of disruptive technologies.

Product strategy will help you achieve a practical understanding of your audience, competitors, and market. It will also provide an overview of the different market segments and their needs.

Some of the importance of product strategy are:

1. Provides clarity to the team.

A product strategy is an overarching strategy with which a company defines its overall direction, inputs, outputs, and game plan. It outlines how the business will meet its goals.

Without a product strategy, it becomes difficult to determine how a product will be developed and what purpose it will serve. Developers will understand how the parts of the product they’re working on play a role in the company’s strategic goals. The marketing and sales team will be able to point out the product’s benefits and unique selling proposition.

2. Helps you prioritize your product roadmap.

A product strategy gives you a clearer picture of what you hope to accomplish with your product. You can then translate it into a more strategically sound product roadmap that guides your decisions.

With the product strategy, your team will prioritize the right items and manage time and resources to create a quality product.

3. Improves the team’s tactical decisions.

The plan drafted for developing a product might change during production. As such, product managers would need to adjust their plans to manage the changes. With a clear product strategy as a reference, you can make strategic decisions regarding the adjustment of your plans.

Components of Product Strategy

There are three significant components of product strategy. They include:

1. Market Vision

The market vision describes the big picture of the product’s future. It articulates the company’s aspirations and hopes. This includes the product’s future users, the market it is developed for, and the opportunity the product will yield for the business.

Market vision also highlights how the product will be positioned in the market and how it will strive against competitors’ products.

2. Product Goals

After taking the time to think about the overall market vision, you should set product goals that are specific and measurable. Think of them as checkpoints on your product roadmap. You should also decide on the metrics you will use to measure your product’s performance and what kind of team will monitor it.

Goal-setting should be time-based, so there’s urgency for when you’ll accomplish them. This gives your product much more relevance since you’ve added a time constraint to its success.

3. Product Initiatives

Product initiatives are themes we create from our product goals and put on our roadmap. They are significant, complex objectives that must be broken into actionable tasks. Examples of product initiatives are adding customer delight, improving customer satisfaction, increasing lifetime customer value, upselling new services, and sustaining product features.

Types of Product Strategies

1. Cost Strategy

This strategy is designed to create a competitive advantage in the marketplace. Also referred to as “cost advantage,” it is usually the result of manufacturing a product cheaper or in greater volume than your competitors.

A cost strategy involves taking a small budget and looking for a low-risk way to produce a high-quality product. It could mean finding substitutes for expensive or scarce materials to create a highly-competitive quality product. It also includes a discounting strategy where you provide a product for a lower price so that consumers are more likely to buy it.

2. Differentiation Strategy

The differentiation strategy is another way to stand out in your industry. Differentiators provide the customer with a different level of product performance or experience than any other product. Differentiation strategies include using the best materials to make a unique product. It also involves introducing a new product feature, working with specialized partners, or offering unique customizations.

This approach aims to give the product a delightful personality that consumers want to interact

3. Focus Strategy

The focus strategy targets the needs of a group of people. With a large customer base, you might want to identify the problem of a specific buyer persona and create a personalized solution for them. This is an effective strategy to gain brand loyalty when acquiring new customers.

4. Quality Strategy

The quality strategy focuses on delivering a high-quality product with quantifiable customer benefits. Quality as your product strategy allows you to provide a customer experience worth the product’s value.

The high cost of production of such products resulting in their high sales prices, does not deter the buyers. The buyers recognize such products as luxury and worth the investment.

5. Service Strategy

The service strategy is becoming the driving force behind customers’ purchasing behavior. Successful companies create a close relationship with the customer. It’s not enough to offer the best quality products – outstanding customer service is also required.

A company can build lasting brand loyalty with a quick response and effective after-sales service. For example, a customer that experienced snags during the buying process will think twice about returning to the same brand.

To Wrap Up

A product strategy is a set of tactics that a company uses to help identify and better align its product roadmap, products, and goals.

Through product strategy, a company can improve how it provides its products and services, ultimately improving the quality and experience of users.

Page 18

Product strategy is a strategic plan that defines the creation and delivery of a product to meet the needs of a company’s market. The strategy answers questions such as: who the product’s target audience is, and how they will benefit from the product.

This article explores the concept of product strategy in detail.

Product Strategy: An Overview

A product strategy is a high-level corporate strategy driving a new product’s creation, development, and commercialization. Product strategy is essential to the successful development of a product.

It involves creating new products, determining what features to include in each new product, and marketing the product’s features based on customer-specific needs.

Product strategy refers to how organizations seek to adequately respond to market needs. It could be by rapidly deploying new, unproven products or nurturing an established product. The team must have a collaborative and goal-driven purpose to execute a successful product strategy.

A product strategy defines a product vision, mission, and accompanying plan. Vision defines what the product hopes to achieve in the future. The mission represents what the product is and what it offers the users. On the other hand, the plan represents how the product will enter the market.

Importance of Product Strategy

Product strategy is a discipline that helps organizations understand their relationship with their customers, define the right performance metrics, and manage the cost structure. Specifically, it provides a framework for how to craft products and services to meet changing customer needs. Also, to embrace the innovation potential of disruptive technologies.

Product strategy will help you achieve a practical understanding of your audience, competitors, and market. It will also provide an overview of the different market segments and their needs.

Some of the importance of product strategy are:

1. Provides clarity to the team.

A product strategy is an overarching strategy with which a company defines its overall direction, inputs, outputs, and game plan. It outlines how the business will meet its goals.

Without a product strategy, it becomes difficult to determine how a product will be developed and what purpose it will serve. Developers will understand how the parts of the product they’re working on play a role in the company’s strategic goals. The marketing and sales team will be able to point out the product’s benefits and unique selling proposition.

2. Helps you prioritize your product roadmap.

A product strategy gives you a clearer picture of what you hope to accomplish with your product. You can then translate it into a more strategically sound product roadmap that guides your decisions.

With the product strategy, your team will prioritize the right items and manage time and resources to create a quality product.

3. Improves the team’s tactical decisions.

The plan drafted for developing a product might change during production. As such, product managers would need to adjust their plans to manage the changes. With a clear product strategy as a reference, you can make strategic decisions regarding the adjustment of your plans.

Components of Product Strategy

There are three significant components of product strategy. They include:

1. Market Vision

The market vision describes the big picture of the product’s future. It articulates the company’s aspirations and hopes. This includes the product’s future users, the market it is developed for, and the opportunity the product will yield for the business.

Market vision also highlights how the product will be positioned in the market and how it will strive against competitors’ products.

2. Product Goals

After taking the time to think about the overall market vision, you should set product goals that are specific and measurable. Think of them as checkpoints on your product roadmap. You should also decide on the metrics you will use to measure your product’s performance and what kind of team will monitor it.

Goal-setting should be time-based, so there’s urgency for when you’ll accomplish them. This gives your product much more relevance since you’ve added a time constraint to its success.

3. Product Initiatives

Product initiatives are themes we create from our product goals and put on our roadmap. They are significant, complex objectives that must be broken into actionable tasks. Examples of product initiatives are adding customer delight, improving customer satisfaction, increasing lifetime customer value, upselling new services, and sustaining product features.

Types of Product Strategies

1. Cost Strategy

This strategy is designed to create a competitive advantage in the marketplace. Also referred to as “cost advantage,” it is usually the result of manufacturing a product cheaper or in greater volume than your competitors.

A cost strategy involves taking a small budget and looking for a low-risk way to produce a high-quality product. It could mean finding substitutes for expensive or scarce materials to create a highly-competitive quality product. It also includes a discounting strategy where you provide a product for a lower price so that consumers are more likely to buy it.

2. Differentiation Strategy

The differentiation strategy is another way to stand out in your industry. Differentiators provide the customer with a different level of product performance or experience than any other product. Differentiation strategies include using the best materials to make a unique product. It also involves introducing a new product feature, working with specialized partners, or offering unique customizations.

This approach aims to give the product a delightful personality that consumers want to interact

3. Focus Strategy

The focus strategy targets the needs of a group of people. With a large customer base, you might want to identify the problem of a specific buyer persona and create a personalized solution for them. This is an effective strategy to gain brand loyalty when acquiring new customers.

4. Quality Strategy

The quality strategy focuses on delivering a high-quality product with quantifiable customer benefits. Quality as your product strategy allows you to provide a customer experience worth the product’s value.

The high cost of production of such products resulting in their high sales prices, does not deter the buyers. The buyers recognize such products as luxury and worth the investment.

5. Service Strategy

The service strategy is becoming the driving force behind customers’ purchasing behavior. Successful companies create a close relationship with the customer. It’s not enough to offer the best quality products – outstanding customer service is also required.

A company can build lasting brand loyalty with a quick response and effective after-sales service. For example, a customer that experienced snags during the buying process will think twice about returning to the same brand.

To Wrap Up

A product strategy is a set of tactics that a company uses to help identify and better align its product roadmap, products, and goals.

Through product strategy, a company can improve how it provides its products and services, ultimately improving the quality and experience of users.

Page 19

Promotional pricing involves temporarily reducing a product’s price to attract new customers. This pricing strategy increases the customer’s urgency to purchase with a limited-offer deal. Many companies use promotional pricing to revitalize declining sales figures, increase brand awareness, and foster customer retention.

This article explains the concept of promotional pricing, its types and how it works.

What is Promotional Pricing?

Promotional pricing is a strategy companies use to incentivize buyers to purchase an item at a price lower than its regular value, usually for a short period. The pricing strategy is used to attract new customers and to entice existing customers to buy more products.

The experience of shopping for promotional pricing offers a sense of urgency while providing a lower price. When you use promotional pricing, it’s best to target a product or service that customers are already buying at a high rate. Otherwise, turning your customers’ attention to you won’t be easy.

In lowering the prices of products for a short period, brands create a sense of scarcity, thereby increasing the value of products or services. Promotional pricing leads to customer acquisition, revenue increment, improved customer loyalty, and improvement of short-term cash flow. This pricing method can also be helpful for hard-to-find items.

Why Is Promotional Pricing Used?

The promotional pricing offer can be a discounted price for a limited time or a deal with additional incentives such as a discount on a future purchase. Typically, pricing is reduced to increase a product or service’s popularity and awareness. However, many other situations could warrant using a promotional pricing model. For example, short product cycles, trial periods, and timed promotions can give a new product or service an initial buzz.

Promotional pricing has been known to generate revenue but is not guaranteed. The pricing strategy is used by manufacturers of products or services to jump-start or maintains a market or user base.

Some of the common reasons brands use promotional pricing are to:

• Increase customer loyalty to the brand.
• Improve short-term cash flow
• Reward loyal customers.
• Acquire new customers.
• Unload excess inventory.
• Create a buzz to launch a new product or service.

Advantages of Promotional Pricing

The price of a product or service is increasingly being used as a marketing tactic to attract more customers and retain current customers.

The advantages of promotional pricing are as follows:

1. It attracts new buyers

Promotional pricing is one of the easiest ways to attract new customers to your business. Consumers are most likely to try out a new store that offers a better price than their competitors.

2. It encourages existing customers to buy more.

The best way to improve sales in any business audience is to encourage repeat purchases. And one way to facilitate repeat purchases is through promotional pricing. Placing an incentive on products that tend to run out will make your existing customers return.

3. It can get a new product off the ground.

A great way to create awareness about a new product is to sell it at a discounted price for a limited time. Consumers will then decide if your product is worth their investment or not. So, offering the best quality when using promotional pricing to launch a new product is best.

Disadvantages of Promotional Strategy

Some of the disadvantages of promotional pricing are as follows:

1. It does not retain new customers.

While promotional pricing can bring new customers, there’s no guarantee that you’ll be able to keep them. Remember, they were drawn to your brand because of the promo, so it is likely that they’ll withdraw once the price returns to normal.

2. It can hurt brand image.

An overuse of promotional pricing devalues a brand. Consumers will naturally consider cheap products as low-quality ones, even if they are made with the best raw materials. It might also pass the impression that you’re only trying to unload excess stock or poorly-made products. This is why you should use the promotional pricing strategy cautiously and for a minimal time.

Types of Promotional Pricing

Promotional pricing is crucial in today’s marketplace to compete with other businesses and to remain on the leading edge of customer service. The types of promotional pricing include:

1. Coupons

A coupon is a promotional pricing type aimed at stimulating buying, sometimes to compensate for a temporary deficiency of the product in question. A couple entitles the receiver to a discount for a particular item. The goal of the coupon is to give the customer an incentive to make a purchase. It can be a one-time-use coupon or one that can be used multiple times.

2. Flash Sales

Flash sales are another type of promotional pricing where the business offer its customers limited time to buy something at a discounted price. Brands slash the prices of products to acquire new customers or unload excess inventory. Flash sales usually last for a short time, sometimes few hours.

3. Buy One, Get One Free

The ‘Buy One, Get One Free’ strategy is a way businesses entice new customers and separate themselves from the competition. It involves offering a one-off special deal, whereby a customer purchases an item and gets another for free. If done well, this can significantly increase the company’s brand recognition.

4. Loyalty Programs. 

A loyalty program is a marketing technique that encourages repeat purchases or consumer loyalty. Brands offer incentives and benefits that encourage existing customers to purchase more frequently. Since it is easier to retain existing customers than to acquire new ones, loyalty programs are a popular type of promotional pricing.

To Wrap Up

Promotional pricing can be beneficial for many reasons. It allows companies to attract, retain, or encourage customers to buy more. It is also used to launch a product on a previously untapped market. However, it can hurt companies by creating a poor image for the brand.

To properly execute the promotional pricing strategy, companies must evaluate their promotional goals and carefully define them.

Page 20

Promotional pricing involves temporarily reducing a product’s price to attract new customers. This pricing strategy increases the customer’s urgency to purchase with a limited-offer deal. Many companies use promotional pricing to revitalize declining sales figures, increase brand awareness, and foster customer retention.

This article explains the concept of promotional pricing, its types and how it works.

What is Promotional Pricing?

Promotional pricing is a strategy companies use to incentivize buyers to purchase an item at a price lower than its regular value, usually for a short period. The pricing strategy is used to attract new customers and to entice existing customers to buy more products.

The experience of shopping for promotional pricing offers a sense of urgency while providing a lower price. When you use promotional pricing, it’s best to target a product or service that customers are already buying at a high rate. Otherwise, turning your customers’ attention to you won’t be easy.

In lowering the prices of products for a short period, brands create a sense of scarcity, thereby increasing the value of products or services. Promotional pricing leads to customer acquisition, revenue increment, improved customer loyalty, and improvement of short-term cash flow. This pricing method can also be helpful for hard-to-find items.

Why Is Promotional Pricing Used?

The promotional pricing offer can be a discounted price for a limited time or a deal with additional incentives such as a discount on a future purchase. Typically, pricing is reduced to increase a product or service’s popularity and awareness. However, many other situations could warrant using a promotional pricing model. For example, short product cycles, trial periods, and timed promotions can give a new product or service an initial buzz.

Promotional pricing has been known to generate revenue but is not guaranteed. The pricing strategy is used by manufacturers of products or services to jump-start or maintains a market or user base.

Some of the common reasons brands use promotional pricing are to:

• Increase customer loyalty to the brand.
• Improve short-term cash flow
• Reward loyal customers.
• Acquire new customers.
• Unload excess inventory.
• Create a buzz to launch a new product or service.

Advantages of Promotional Pricing

The price of a product or service is increasingly being used as a marketing tactic to attract more customers and retain current customers.

The advantages of promotional pricing are as follows:

1. It attracts new buyers

Promotional pricing is one of the easiest ways to attract new customers to your business. Consumers are most likely to try out a new store that offers a better price than their competitors.

2. It encourages existing customers to buy more.

The best way to improve sales in any business audience is to encourage repeat purchases. And one way to facilitate repeat purchases is through promotional pricing. Placing an incentive on products that tend to run out will make your existing customers return.

3. It can get a new product off the ground.

A great way to create awareness about a new product is to sell it at a discounted price for a limited time. Consumers will then decide if your product is worth their investment or not. So, offering the best quality when using promotional pricing to launch a new product is best.

Disadvantages of Promotional Strategy

Some of the disadvantages of promotional pricing are as follows:

1. It does not retain new customers.

While promotional pricing can bring new customers, there’s no guarantee that you’ll be able to keep them. Remember, they were drawn to your brand because of the promo, so it is likely that they’ll withdraw once the price returns to normal.

2. It can hurt brand image.

An overuse of promotional pricing devalues a brand. Consumers will naturally consider cheap products as low-quality ones, even if they are made with the best raw materials. It might also pass the impression that you’re only trying to unload excess stock or poorly-made products. This is why you should use the promotional pricing strategy cautiously and for a minimal time.

Types of Promotional Pricing

Promotional pricing is crucial in today’s marketplace to compete with other businesses and to remain on the leading edge of customer service. The types of promotional pricing include:

1. Coupons

A coupon is a promotional pricing type aimed at stimulating buying, sometimes to compensate for a temporary deficiency of the product in question. A couple entitles the receiver to a discount for a particular item. The goal of the coupon is to give the customer an incentive to make a purchase. It can be a one-time-use coupon or one that can be used multiple times.

2. Flash Sales

Flash sales are another type of promotional pricing where the business offer its customers limited time to buy something at a discounted price. Brands slash the prices of products to acquire new customers or unload excess inventory. Flash sales usually last for a short time, sometimes few hours.

3. Buy One, Get One Free

The ‘Buy One, Get One Free’ strategy is a way businesses entice new customers and separate themselves from the competition. It involves offering a one-off special deal, whereby a customer purchases an item and gets another for free. If done well, this can significantly increase the company’s brand recognition.

4. Loyalty Programs. 

A loyalty program is a marketing technique that encourages repeat purchases or consumer loyalty. Brands offer incentives and benefits that encourage existing customers to purchase more frequently. Since it is easier to retain existing customers than to acquire new ones, loyalty programs are a popular type of promotional pricing.

To Wrap Up

Promotional pricing can be beneficial for many reasons. It allows companies to attract, retain, or encourage customers to buy more. It is also used to launch a product on a previously untapped market. However, it can hurt companies by creating a poor image for the brand.

To properly execute the promotional pricing strategy, companies must evaluate their promotional goals and carefully define them.

Page 21

Promotional pricing involves temporarily reducing a product’s price to attract new customers. This pricing strategy increases the customer’s urgency to purchase with a limited-offer deal. Many companies use promotional pricing to revitalize declining sales figures, increase brand awareness, and foster customer retention.

This article explains the concept of promotional pricing, its types and how it works.

What is Promotional Pricing?

Promotional pricing is a strategy companies use to incentivize buyers to purchase an item at a price lower than its regular value, usually for a short period. The pricing strategy is used to attract new customers and to entice existing customers to buy more products.

The experience of shopping for promotional pricing offers a sense of urgency while providing a lower price. When you use promotional pricing, it’s best to target a product or service that customers are already buying at a high rate. Otherwise, turning your customers’ attention to you won’t be easy.

In lowering the prices of products for a short period, brands create a sense of scarcity, thereby increasing the value of products or services. Promotional pricing leads to customer acquisition, revenue increment, improved customer loyalty, and improvement of short-term cash flow. This pricing method can also be helpful for hard-to-find items.

Why Is Promotional Pricing Used?

The promotional pricing offer can be a discounted price for a limited time or a deal with additional incentives such as a discount on a future purchase. Typically, pricing is reduced to increase a product or service’s popularity and awareness. However, many other situations could warrant using a promotional pricing model. For example, short product cycles, trial periods, and timed promotions can give a new product or service an initial buzz.

Promotional pricing has been known to generate revenue but is not guaranteed. The pricing strategy is used by manufacturers of products or services to jump-start or maintains a market or user base.

Some of the common reasons brands use promotional pricing are to:

• Increase customer loyalty to the brand.
• Improve short-term cash flow
• Reward loyal customers.
• Acquire new customers.
• Unload excess inventory.
• Create a buzz to launch a new product or service.

Advantages of Promotional Pricing

The price of a product or service is increasingly being used as a marketing tactic to attract more customers and retain current customers.

The advantages of promotional pricing are as follows:

1. It attracts new buyers

Promotional pricing is one of the easiest ways to attract new customers to your business. Consumers are most likely to try out a new store that offers a better price than their competitors.

2. It encourages existing customers to buy more.

The best way to improve sales in any business audience is to encourage repeat purchases. And one way to facilitate repeat purchases is through promotional pricing. Placing an incentive on products that tend to run out will make your existing customers return.

3. It can get a new product off the ground.

A great way to create awareness about a new product is to sell it at a discounted price for a limited time. Consumers will then decide if your product is worth their investment or not. So, offering the best quality when using promotional pricing to launch a new product is best.

Disadvantages of Promotional Strategy

Some of the disadvantages of promotional pricing are as follows:

1. It does not retain new customers.

While promotional pricing can bring new customers, there’s no guarantee that you’ll be able to keep them. Remember, they were drawn to your brand because of the promo, so it is likely that they’ll withdraw once the price returns to normal.

2. It can hurt brand image.

An overuse of promotional pricing devalues a brand. Consumers will naturally consider cheap products as low-quality ones, even if they are made with the best raw materials. It might also pass the impression that you’re only trying to unload excess stock or poorly-made products. This is why you should use the promotional pricing strategy cautiously and for a minimal time.

Types of Promotional Pricing

Promotional pricing is crucial in today’s marketplace to compete with other businesses and to remain on the leading edge of customer service. The types of promotional pricing include:

1. Coupons

A coupon is a promotional pricing type aimed at stimulating buying, sometimes to compensate for a temporary deficiency of the product in question. A couple entitles the receiver to a discount for a particular item. The goal of the coupon is to give the customer an incentive to make a purchase. It can be a one-time-use coupon or one that can be used multiple times.

2. Flash Sales

Flash sales are another type of promotional pricing where the business offer its customers limited time to buy something at a discounted price. Brands slash the prices of products to acquire new customers or unload excess inventory. Flash sales usually last for a short time, sometimes few hours.

3. Buy One, Get One Free

The ‘Buy One, Get One Free’ strategy is a way businesses entice new customers and separate themselves from the competition. It involves offering a one-off special deal, whereby a customer purchases an item and gets another for free. If done well, this can significantly increase the company’s brand recognition.

4. Loyalty Programs. 

A loyalty program is a marketing technique that encourages repeat purchases or consumer loyalty. Brands offer incentives and benefits that encourage existing customers to purchase more frequently. Since it is easier to retain existing customers than to acquire new ones, loyalty programs are a popular type of promotional pricing.

To Wrap Up

Promotional pricing can be beneficial for many reasons. It allows companies to attract, retain, or encourage customers to buy more. It is also used to launch a product on a previously untapped market. However, it can hurt companies by creating a poor image for the brand.

To properly execute the promotional pricing strategy, companies must evaluate their promotional goals and carefully define them.

Page 22

Marketing Mix Modeling (MMM) empirically analyzes the relative impact of various marketing activities on revenue. It is a powerful qualitative tool for marketers to understand the relationship between marketing actions and the bottom-line impact on the business.

The primary benefit of Marketing Mix Modeling is retaining a strategic view of the business, and allowing managers to make intelligent and smart decisions.

Concept of Marketing Mix Modeling

The overall goal of a company is to increase its market share. This is achieved by optimizing a combination of the four marketing mix elements: product, price, place, and promotion. Marketing Mix Modeling is a technique that illustrates how each of the aspects of the marketing mix will affect the final product.

Marketing Mix Modeling is a marketing tool that helps to design and oversee a successful marketing strategy. The model helps marketers understand how different marketing strategies and tactics affect the sales and profit of a business. In the marketing mix model, some factors are more related to offering various benefits to customers. In contrast, other factors influence a customer’s decision to purchase a product either now or in the future.

The primary purpose of Marketing Mix Modeling is to help strategic decision makers understand the key dimensions that influence buying decisions. It can be used to guide decisions regarding product requirements, distribution channels, branding, positioning, pricing, sale promotions, and advertising. Marketers and business executives who take a systematic approach when developing marketing mix models can be more confident of outcomes in decision-making.

Benefits of Marketing Mix Modeling

The following are the importance of Marketing Mix Modeling:

1. It Determines Marketing Effectiveness

Marketing Mix Modeling can be used as an indicator of marketing effectiveness, where it provides a good picture of the performance of marketing activities. A positive Marketing Mix Modeling result suggests positive marketing effectiveness and vice versa.

2. It Establishes Practical Insights That Allow for Effective Budget Allocation

Marketing Mix Modeling can be an essential element in the budget allocation process of the company. This is because marketers can use it to identify the best marketing mix combinations that correspond to the company’s budget.

3. It Manages Quality of Marketing Data

Using Marketing Mix Modeling, managers can check the quality of the external and internal marketing data. Marketers use sales, profit, and loss data to assess the financial performance of the company and investment goals.

4. It Facilitates Superior Sales Trend Forecasting

Marketing Mix Modeling provides valuable information related to market and product performance. Marketers use this tool to increase the likelihood of being able to recreate their financial forecast.

How to Get Started With Marketing Mix Modeling?

Before undertaking any Marketing Mix Modeling within your business, you must prepare your organization for what is to come. By following these four steps, you will ensure that your organization gains value from your Marketing Mix Modeling (MMM) project:

Step 1: Establish Goals and Objectives for the MMM Project

The main reason for undertaking MMM is to gain systematic knowledge that will enhance your marketing efforts and optimize your budget allocation. Beyond this, your organizational goals should be clear and achievable. Also, list the key questions you want to ask through your Marketing Mix Modeling. Some of these questions may include:

• Budget: Which marketing tactics have the best Median Return on Investment (MROI)?
• Media: Would there be an increase in incremental sales if the TV advertising budget is increased by 15%?
• Pricing: What impact does price change have on sales and profits?
• Competitive: Which competitors’ advertising campaigns have the most significant impact on sales? 

Step 2: Present Your Organization and Critical Stakeholders Your Data and Make Them Understand It

Marketing Mix Modeling requires you to collect a large amount of data from several different areas within your organization. Ask your stakeholders how they would like to receive information and set up a way to achieve this. The outcome should be user-friendly in that they can easily access and understand the information.

Step 3: Identify Valid Data

The quality of your data is an essential factor for MMM, so make sure it is as accurate and up-to-date as possible. This includes identifying the audience segment your product or service should focus on.

Step 4: Identify the Needs of Your Audience

Draw focus on what the company is doing best, identify the problems the company wants to address, and create an action plan. An action plan is a clear-cut plan of what the company needs to do to identify the core activities they must continue.

How to Conduct Marketing Mix Modeling

The four stages of the Marketing Mix Modeling process include the following:

Stage 1: Define the Audience

The first stage in any Marketing Mix Modeling process is the most crucial; without it, the model is not stable. Define your target audience and what you can offer them. This strategy will enable you target your marketing plan at the correct people and decide whether you will offer your products to them.

Stage 2: Develop an Appropriate Marketing Mix

It would be impossible to conduct a complete Marketing Mix Modeling without creating a marketing mix. A marketing mix is a composite of the various marketing strategies that an organization is running. Understanding which marketing mix is most effective for your organization is essential. It is even more critical to be aware of the marketing mix used by your competitors to stay ahead of the game.

Stage 3: Identify the Products

Now that your marketing mix is developmentally in shape, it’s time to analyze and identify the products you offer. Once you have this information, it can be used to tailor your marketing strategy to meet the needs of your target market better. Understanding your products in detail (product features, cost, and benefits) will allow you to make well-informed marketing decisions to improve sales.

Stage 4: Model the Process of Offering Your Products and Services

The final stage of conducting Marketing Mix Modeling is to model the process of providing your products and services to the marketplace. Think about how you can connect with your customer, the type of information you can pass on, and how to get the customer’s attention.

To Wrap Up

Marketing Mix Modeling allows businesses to understand their market demand, requirements, and operational constraints. It also enables them to devise an appropriate marketing mix for their business.

This modeling process helps business strategists understand how to incorporate different promotional variables into their marketing strategy.

Page 23

Marketing Mix Modeling (MMM) empirically analyzes the relative impact of various marketing activities on revenue. It is a powerful qualitative tool for marketers to understand the relationship between marketing actions and the bottom-line impact on the business.

The primary benefit of Marketing Mix Modeling is retaining a strategic view of the business, and allowing managers to make intelligent and smart decisions.

Concept of Marketing Mix Modeling

The overall goal of a company is to increase its market share. This is achieved by optimizing a combination of the four marketing mix elements: product, price, place, and promotion. Marketing Mix Modeling is a technique that illustrates how each of the aspects of the marketing mix will affect the final product.

Marketing Mix Modeling is a marketing tool that helps to design and oversee a successful marketing strategy. The model helps marketers understand how different marketing strategies and tactics affect the sales and profit of a business. In the marketing mix model, some factors are more related to offering various benefits to customers. In contrast, other factors influence a customer’s decision to purchase a product either now or in the future.

The primary purpose of Marketing Mix Modeling is to help strategic decision makers understand the key dimensions that influence buying decisions. It can be used to guide decisions regarding product requirements, distribution channels, branding, positioning, pricing, sale promotions, and advertising. Marketers and business executives who take a systematic approach when developing marketing mix models can be more confident of outcomes in decision-making.

Benefits of Marketing Mix Modeling

The following are the importance of Marketing Mix Modeling:

1. It Determines Marketing Effectiveness

Marketing Mix Modeling can be used as an indicator of marketing effectiveness, where it provides a good picture of the performance of marketing activities. A positive Marketing Mix Modeling result suggests positive marketing effectiveness and vice versa.

2. It Establishes Practical Insights That Allow for Effective Budget Allocation

Marketing Mix Modeling can be an essential element in the budget allocation process of the company. This is because marketers can use it to identify the best marketing mix combinations that correspond to the company’s budget.

3. It Manages Quality of Marketing Data

Using Marketing Mix Modeling, managers can check the quality of the external and internal marketing data. Marketers use sales, profit, and loss data to assess the financial performance of the company and investment goals.

4. It Facilitates Superior Sales Trend Forecasting

Marketing Mix Modeling provides valuable information related to market and product performance. Marketers use this tool to increase the likelihood of being able to recreate their financial forecast.

How to Get Started With Marketing Mix Modeling?

Before undertaking any Marketing Mix Modeling within your business, you must prepare your organization for what is to come. By following these four steps, you will ensure that your organization gains value from your Marketing Mix Modeling (MMM) project:

Step 1: Establish Goals and Objectives for the MMM Project

The main reason for undertaking MMM is to gain systematic knowledge that will enhance your marketing efforts and optimize your budget allocation. Beyond this, your organizational goals should be clear and achievable. Also, list the key questions you want to ask through your Marketing Mix Modeling. Some of these questions may include:

• Budget: Which marketing tactics have the best Median Return on Investment (MROI)?
• Media: Would there be an increase in incremental sales if the TV advertising budget is increased by 15%?
• Pricing: What impact does price change have on sales and profits?
• Competitive: Which competitors’ advertising campaigns have the most significant impact on sales? 

Step 2: Present Your Organization and Critical Stakeholders Your Data and Make Them Understand It

Marketing Mix Modeling requires you to collect a large amount of data from several different areas within your organization. Ask your stakeholders how they would like to receive information and set up a way to achieve this. The outcome should be user-friendly in that they can easily access and understand the information.

Step 3: Identify Valid Data

The quality of your data is an essential factor for MMM, so make sure it is as accurate and up-to-date as possible. This includes identifying the audience segment your product or service should focus on.

Step 4: Identify the Needs of Your Audience

Draw focus on what the company is doing best, identify the problems the company wants to address, and create an action plan. An action plan is a clear-cut plan of what the company needs to do to identify the core activities they must continue.

How to Conduct Marketing Mix Modeling

The four stages of the Marketing Mix Modeling process include the following:

Stage 1: Define the Audience

The first stage in any Marketing Mix Modeling process is the most crucial; without it, the model is not stable. Define your target audience and what you can offer them. This strategy will enable you target your marketing plan at the correct people and decide whether you will offer your products to them.

Stage 2: Develop an Appropriate Marketing Mix

It would be impossible to conduct a complete Marketing Mix Modeling without creating a marketing mix. A marketing mix is a composite of the various marketing strategies that an organization is running. Understanding which marketing mix is most effective for your organization is essential. It is even more critical to be aware of the marketing mix used by your competitors to stay ahead of the game.

Stage 3: Identify the Products

Now that your marketing mix is developmentally in shape, it’s time to analyze and identify the products you offer. Once you have this information, it can be used to tailor your marketing strategy to meet the needs of your target market better. Understanding your products in detail (product features, cost, and benefits) will allow you to make well-informed marketing decisions to improve sales.

Stage 4: Model the Process of Offering Your Products and Services

The final stage of conducting Marketing Mix Modeling is to model the process of providing your products and services to the marketplace. Think about how you can connect with your customer, the type of information you can pass on, and how to get the customer’s attention.

To Wrap Up

Marketing Mix Modeling allows businesses to understand their market demand, requirements, and operational constraints. It also enables them to devise an appropriate marketing mix for their business.

This modeling process helps business strategists understand how to incorporate different promotional variables into their marketing strategy.

Page 24

Marketing Mix Modeling (MMM) empirically analyzes the relative impact of various marketing activities on revenue. It is a powerful qualitative tool for marketers to understand the relationship between marketing actions and the bottom-line impact on the business.

The primary benefit of Marketing Mix Modeling is retaining a strategic view of the business, and allowing managers to make intelligent and smart decisions.

Concept of Marketing Mix Modeling

The overall goal of a company is to increase its market share. This is achieved by optimizing a combination of the four marketing mix elements: product, price, place, and promotion. Marketing Mix Modeling is a technique that illustrates how each of the aspects of the marketing mix will affect the final product.

Marketing Mix Modeling is a marketing tool that helps to design and oversee a successful marketing strategy. The model helps marketers understand how different marketing strategies and tactics affect the sales and profit of a business. In the marketing mix model, some factors are more related to offering various benefits to customers. In contrast, other factors influence a customer’s decision to purchase a product either now or in the future.

The primary purpose of Marketing Mix Modeling is to help strategic decision makers understand the key dimensions that influence buying decisions. It can be used to guide decisions regarding product requirements, distribution channels, branding, positioning, pricing, sale promotions, and advertising. Marketers and business executives who take a systematic approach when developing marketing mix models can be more confident of outcomes in decision-making.

Benefits of Marketing Mix Modeling

The following are the importance of Marketing Mix Modeling:

1. It Determines Marketing Effectiveness

Marketing Mix Modeling can be used as an indicator of marketing effectiveness, where it provides a good picture of the performance of marketing activities. A positive Marketing Mix Modeling result suggests positive marketing effectiveness and vice versa.

2. It Establishes Practical Insights That Allow for Effective Budget Allocation

Marketing Mix Modeling can be an essential element in the budget allocation process of the company. This is because marketers can use it to identify the best marketing mix combinations that correspond to the company’s budget.

3. It Manages Quality of Marketing Data

Using Marketing Mix Modeling, managers can check the quality of the external and internal marketing data. Marketers use sales, profit, and loss data to assess the financial performance of the company and investment goals.

4. It Facilitates Superior Sales Trend Forecasting

Marketing Mix Modeling provides valuable information related to market and product performance. Marketers use this tool to increase the likelihood of being able to recreate their financial forecast.

How to Get Started With Marketing Mix Modeling?

Before undertaking any Marketing Mix Modeling within your business, you must prepare your organization for what is to come. By following these four steps, you will ensure that your organization gains value from your Marketing Mix Modeling (MMM) project:

Step 1: Establish Goals and Objectives for the MMM Project

The main reason for undertaking MMM is to gain systematic knowledge that will enhance your marketing efforts and optimize your budget allocation. Beyond this, your organizational goals should be clear and achievable. Also, list the key questions you want to ask through your Marketing Mix Modeling. Some of these questions may include:

• Budget: Which marketing tactics have the best Median Return on Investment (MROI)?
• Media: Would there be an increase in incremental sales if the TV advertising budget is increased by 15%?
• Pricing: What impact does price change have on sales and profits?
• Competitive: Which competitors’ advertising campaigns have the most significant impact on sales? 

Step 2: Present Your Organization and Critical Stakeholders Your Data and Make Them Understand It

Marketing Mix Modeling requires you to collect a large amount of data from several different areas within your organization. Ask your stakeholders how they would like to receive information and set up a way to achieve this. The outcome should be user-friendly in that they can easily access and understand the information.

Step 3: Identify Valid Data

The quality of your data is an essential factor for MMM, so make sure it is as accurate and up-to-date as possible. This includes identifying the audience segment your product or service should focus on.

Step 4: Identify the Needs of Your Audience

Draw focus on what the company is doing best, identify the problems the company wants to address, and create an action plan. An action plan is a clear-cut plan of what the company needs to do to identify the core activities they must continue.

How to Conduct Marketing Mix Modeling

The four stages of the Marketing Mix Modeling process include the following:

Stage 1: Define the Audience

The first stage in any Marketing Mix Modeling process is the most crucial; without it, the model is not stable. Define your target audience and what you can offer them. This strategy will enable you target your marketing plan at the correct people and decide whether you will offer your products to them.

Stage 2: Develop an Appropriate Marketing Mix

It would be impossible to conduct a complete Marketing Mix Modeling without creating a marketing mix. A marketing mix is a composite of the various marketing strategies that an organization is running. Understanding which marketing mix is most effective for your organization is essential. It is even more critical to be aware of the marketing mix used by your competitors to stay ahead of the game.

Stage 3: Identify the Products

Now that your marketing mix is developmentally in shape, it’s time to analyze and identify the products you offer. Once you have this information, it can be used to tailor your marketing strategy to meet the needs of your target market better. Understanding your products in detail (product features, cost, and benefits) will allow you to make well-informed marketing decisions to improve sales.

Stage 4: Model the Process of Offering Your Products and Services

The final stage of conducting Marketing Mix Modeling is to model the process of providing your products and services to the marketplace. Think about how you can connect with your customer, the type of information you can pass on, and how to get the customer’s attention.

To Wrap Up

Marketing Mix Modeling allows businesses to understand their market demand, requirements, and operational constraints. It also enables them to devise an appropriate marketing mix for their business.

This modeling process helps business strategists understand how to incorporate different promotional variables into their marketing strategy.