Promotion

“Much money is needed to attract distributors and build their inventories. Promotion spending is relatively high to inform consumers of the new product and get them to try it. Because the market is not generally ready for product refinements at this stage, the company and its few competitors produce basic versions of the product. These firms focus their selling on those buyers who are the most ready to buy.” (Marketing: An Introduction for Education Management Corporation, 10th Edition. Pearson Learning Solutions p. 259).

The promoting efforts of Elegance Vodka will include advertising in women’s magazines and in the future being on billboards when the funds are provided. Many woman buy magazines and most of these magazines have several advertisements that are marketed to these women.  I can’t think of a better way to begin marketing on a new product aimed at women. The creative content will seduce their senses into wanting to try Elegance Vodka in order to gain the feeling that Elegance strives to provide. This is the feeling of “letting a woman feel like a woman”.

“Profits increase during the growth stage as promotion costs are spread over a large volume and as unit manufacturing costs fall. The firm uses several strategies to sustain rapid market growth as long as possible. It improves product quality and adds new product features and models. It enters new market segments and new distribution channels. It shifts some advertising from building product awareness to building product conviction and purchase, and it lowers prices at the right time to attract more buyers. In the growth stage, the firm faces a trade-off between high market share and high current profit. By spending a lot of money on product improvement, promotion, and distribution, the company can capture a dominant position.” (Marketing: An Introduction for Education Management Corporation, 10th Edition. Pearson Learning Solutions p. 260).