The marketing mix document discusses the key elements of marketing strategy - the 4 Ps of marketing: product, price, place (distribution), and promotion. It explains that the marketing mix refers to the combination of these four elements that make up a company's marketing system. It then provides further details on each element, including product life cycle stages from development to decline, and strategies to extend the life cycle. Common pricing strategies and objectives are also outlined.

1. MARKETING
MIX

2. MARKETING MIX
 The term marketing mix was introduced by
Prof N. H Borden of Harvard Business School.
It is the combination of four inputs which is the
core of the company’s marketing system.
 According to Jerome McCarthy “Marketing Mix
is the pack of four sets of variables namely
(1) Product Variable (2) Price Variable
(3) Product Variable (3) Place Variable.
 The popular way of describing these elements
are four p’s of marketing
2

3. THE 4 PS

5. PRODUCT

6. PRICE

7. DISTRIBUTION

8. PROMOTION - SUZUKI

9. THE 7 PS OF
SERVICE
MARKETING

11. PRODUCT
LIFECYCLE

12. PRODUCT LIFE CYCLE
 Product Life Cycle (PLC):
 Every product goes through a life cycle
from development to decline
 Each life cycle is different
 Some products have longer lifecycles than
others
 Some companies are very successful in
extending lifecycles

13. PRODUCT LIFE-CYCLE STRATEGIES
 Product development
 Introduction
 Growth
 Maturity
 Decline
 Begins when the
company develops a
new-product idea
 Sales are zero
 Investment costs are
high
 Profits are negative
9 - 13
PLC Stages

14. PRODUCT LIFE-CYCLE STRATEGIES
 Product development
 Introduction
 Growth
 Maturity
 Decline
 Low sales
 High cost per customer
acquired
 Negative profits
 Innovators are targeted
 Little competition
9 - 14
PLC Stages

15. MARKETING STRATEGIES: INTRODUCTION STAGE
 Product – Offer a basic product
 Price – Use cost-plus basis to set
 Distribution – Build selective distribution
 Advertising – Build awareness among early
adopters and dealers/resellers
 Sales Promotion – Heavy expenditures to create
trial
9 - 15

16. PRODUCT LIFE-CYCLE STRATEGIES
 Product development
 Introduction
 Growth
 Maturity
 Decline
 Rapidly rising sales
 Average cost per
customer
 Rising profits
 Early adopters are
targeted
 Growing competition
9 - 16
PLC Stages

17. MARKETING STRATEGIES: GROWTH STAGE
 Product – Offer product extensions, service,
warranty
 Price – Penetration pricing
 Distribution – Build intensive distribution
 Advertising – Build awareness and interest in the
mass market
 Sales Promotion – Reduce expenditures to take
advantage of consumer demand
9 - 17

18. PRODUCT LIFE-CYCLE STRATEGIES
 Product development
 Introduction
 Growth
 Maturity
 Decline
 Sales peak
 Low cost per customer
 High profits
 Middle majority are
targeted
 Competition begins to
decline
9 - 18
PLC Stages

19. MARKETING STRATEGIES: MATURITY STAGE
 Product – Diversify brand and models
 Price – Set to match or beat competition
 Distribution – Build more intensive distribution
 Advertising – Stress brand differences and benefits
 Sales Promotion – Increase to encourage brand
switching
9 - 19

20. PRODUCT LIFE-CYCLE STRATEGIES
 Product development
 Introduction
 Growth
 Maturity
 Decline
 Declining sales
 Low cost per customer
 Declining profits
 Laggards are targeted
 Declining competition
9 - 20
PLC Stages

21. MARKETING STRATEGIES: DECLINE STAGE
 Product – Phase out weak items
 Price – Cut price
 Distribution – Use selective distribution: phase out
unprofitable outlets
 Advertising – Reduce to level needed to retain
hard-core loyalists
 Sales Promotion – Reduce to minimal level
9 - 21

22. PRODUCT LIFE CYCLE
 Extending the life cycle
 Diversification – have core product but
introduce new flavours/styles etc.
 Innovate – use new technology to enhance the
product
 Change flavour
 Repackage
 Advertise to appeal different audience
 Re-launch – product that have been withdrawn
can make comebacks if sold right e.g
skateboards, yoyos

23. Sales
Time
Effects of Extension
Strategies
Product Life Cycle

24. PRODUCT LIFE CYCLE
 Cash Flow and the Product Life Cycle
 During the development stage cash flow is
going to be NEGATIVE. Money has to be paid
out for equipment, wages etc but no money is
coming in.
 During the launch stage cash flow is still
NEGATIVE. More money is being paid out
than is coming in (as sales are very low at the
moment).

25. PRODUCT LIFE CYCLE
 Cash Flow and the Product Life Cycle
 During the growth stage cash flow may turn from
NEGATIVE to POSITIVE. Lots of money is coming in
but there are many outgoings because the firm has to
continue to promote the product and may need to
expand production and its workforce.
 During maturity/saturation and decline the cash flow
will be POSITIVE. The company spends little money
on promoting it. It doesn’t need to expand production
but sales are still coming in. Only during the decline
stage will sales be so low that cash flow might be
NEGATIVE.

26. Sales/Cash Flow
Time
PLC and Cash Flow
PLC
Negative Cash Flow
Positive Cash Flow
Product Life Cycle & Cash
Flow

27. PRODUCT
DEVELOPMENT

28. 9 - 28
Major Stages in
New-Product Development

29. DEFINITION
 New Product Development
 Development of original products, product
improvements, product modifications, and new
brands through the firm’s own R & D efforts.
9 - 29

30. STAGES OF THE NEW PRODUCT
DEVELOPMENT PROCESS
 Stage 1: Idea Generation
 Internal idea sources:
 R & D
 External idea sources:
 Customers, competitors, distributors, suppliers
9 - 30

31. STAGES OF THE NEW PRODUCT
DEVELOPMENT PROCESS
 Stage 2: Idea Screening
 Product development costs increase
substantially in later stages so poor ideas must
be dropped
 Ideas are evaluated against criteria; most are
eliminated
9 - 31

32. STAGES OF THE NEW PRODUCT
DEVELOPMENT PROCESS
 Stage 3: Concept Development and Testing
 Concept development creates a detailed version
of the idea stated in meaningful consumer terms.
 Concept testing asks target consumers to
evaluate product concepts.
9 - 32

33. STAGES OF THE NEW PRODUCT
DEVELOPMENT PROCESS
 Stage 4: Marketing Strategy Development
 The target market, product positioning, and sales,
share, and profit goals for the first few years.
 Product price, distribution, and marketing budget for
the first year.
 Long-run sales and profit goals and the marketing mix
strategy.
9 - 33

34. STAGES OF THE NEW PRODUCT
DEVELOPMENT PROCESS
 Stage 5: Business Analysis
 Sales, cost, and profit projections
 Stage 6: Product Development
 Prototype development and testing
9 - 34

35. STAGES OF THE NEW PRODUCT
DEVELOPMENT PROCESS
 Stage 7: Test Marketing
 Standard test markets
 Controlled test markets
 Simulated test markets
 Stage 8: Commercialization
9 - 35

36. BLUE OCEAN
STRATEGY

37. “COMPETITION”
 The only way to beat the competition is to
stop trying to beat the competition.

38. BLUE OCEAN CONCEPT
Red Ocean
Cut-Throat
Business
Blue
Ocean
Where we
ultimately want
to be as a
company

39. PROFIT & GROWTH CONSEQUENCES OF
CREATING BLUE OCEANS
0% 20% 40% 60% 80% 100%
Business Launch
Revenue impact
Profit Impact

40. WHAT THE GRAPHS SAY
 86% of launches were line extensions
(incremental improvements within the red
ocean of existing market space)
 Yet they only accounted for 62% of total
revenues and 39% of profits
 Remaining blue ocean 14% generated 38%
of total revenue and 61% of total profits

41. AUTO INDUSTRY BLUE OCEANS
 Ford: 1980 Model T was affordable
 GM: 1924 cars styled to appeal to the
emotions, the “annual car” helped create the
used car market
 Small, Fuel-Efficient Japanese Cars:
became popular due to the 1970’s oil crisis
 Chrysler’s Minivan: 1984 broke the
boundary between car and van

42. APPROACH TO STRATEGY
Red Oceans – Conventional Approach
 Focus on beating the competition
 Build a defendable position within the existing industry
 Use competition as a benchmark
 Choice between differentiation and low cost
- Greater value for customers at a higher cost or a reasonable value
at a lower cost
Blue Oceans – Value Innovation
 Make competition irrelevant
 Create a leap in value for buyers and the company
 Create new a market space
 Pursue both differentiation and low cost

43. Red Ocean Blue Ocean
Compete in existing market
space
Create uncontested market
space
Beat the competition Make the competition irrelevant
Exploit existing demand Create and capture new
demand
Make the value-cost trade off Break the value-cost trade off
Align the whole system of a
firm’s activities with its strategic
choice of differentiation or low
cost
Align the whole system of a
firm’s activities in pursuit of
differentiation and low cost

44. HOW TO USE IT IN BOS?
 Don’t: Offer a little more for a little less
 Do: Reorient strategic focus from
competitors to alternatives and from
customers to noncustomers of the
industry.

45. THE FOUR ACTIONS FRAMEWORK
 To create a new value curve
 To break the trade-off between
differentiation and low cost

46. THE FOUR ACTIONS FRAMEWORK
A New Value
Curve
1. Eliminate
Which factors that the
industry takes for
granted should be
eliminated?
4. Create
Which factors should be
created that the
industry has not seen
before?
3. Raise
Which factors should be
raised well above the
industry standard?
2. Reduce
Which factors should be
reduced well below the
industry standard?
Figure 2-2

47. THE FOUR ACTIONS FRAMEWORK
1. Eliminate (competition)
 Factors your industry competes
on
 Change in what buyers value
2. Reduce (competition)
 Overdesigned products
 Over served customers
3. Raise (customers)
 Eliminate compromises
4. Create (customers)
 New sources of value
 New demand

48. MCDONALD’S FRAMEWORK
 Create New Sources of Value:
 Brand
 customer care
 cost structure
 its patent
 target audience
Sustainable – the key test of a core competency measures the
ability of a firm to continually increase the advantage of the
competency over many years.
 “The world has changed. Our customers have
changed. We have to change too."
- James R. Cantaloupe, Chairman and CEO, McDonald's, 2003

49. ELIMINATE-REDUCE-RAISE-CREATE GRID
Figure 2-5: The Case of McDonald’s
Eliminate
Super Size Option
Raise
•Health Standards
Reduce
•Calories in burgers
Create
Salad Menu

50. PRICING

51. PRICING OBJECTIVES
 Meeting a return on investment or profit
 Building Traffic
 Achieving market share
 Increasing sales
 Creating an image
 Social objectives

52. PRICING POLICIES
One-Price Policy – is one in which all
customers are charged the same prices
Flexible-Price Policy – is one in which
customers pay different prices for the same
type or amount of merchandise

53. PRICING STRATEGIES
Three major factors used when determining a
price for a product
Demand
Competition
Cost

54. Cost-Plus Pricing
 Commonly used by manufacturers &
service businesses
 Expressed as a $ amount
 Example
 Job costs $200 to perform
 Add $100 as profit
 Charge $300 to the client
 200 + 100 = 300
COST-ORIENTED PRICING
PRODUCERS CALCULATE THE COST OF MAKING A PRODUCT, THEN ADD PREFERRED
PROFIT

55. DEMAND ORIENTED PRICING (TARGET PRICING)
WHAT ARE CONSUMERS WILLING TO SPEND ON A PRODUCT OR SERVICE?
 Price is set in relation to Demand & Supply of the
product/service
Limited
Supply
High
Demand
HIGH
PRICE
Plenty
Supply
Low
Demand
LOW
PRICE

56. PRODUCT LINE PRICING
 Pricing a product at various price levels in
order to appeal to different segments of the
market
 Example
 Appliance manufacturer creates a dishwasher
 Sells in different versions (basic, midline, and
premium)
 Different prices for each version to appeal to
different segments of buyers
 Targeted at consumers for whom price is
important in choosing the model of a product

57. PSYCHOLOGICAL PRICING
 Based on the theory
that certain prices
have a psychological
impact
 Retail prices
expressed as "odd
prices“ or a little less
than a round number
 Examples
 $7.99 vs. $8.00
 $19.99 vs. $20.00
 $199 vs. $200

58. COMPETITION-ORIENTED PRICING
THREE POSSIBLE ACTIONS
Price
above
competition
Price
below
competition
Price in
line with
competition
(going-
rate)

59. PRICING POLICIES & PRODUCT LIFE CYCLE
INTRODUCING A NEW PRODUCT
• Sets a HIGH price
• Used when competition is low
• Lower price after introductionSkimming
• Sets a LOW price
• Used to build market share
• Price raised laterPenetration

60. OTHER PRICE STRATEGIES
Everyday Low Pricing (EDLP)
 Setting prices lower than competitors.
High-Low Strategy
 Set prices higher than EDLP stores but have
many sales.

61. OTHER PRICE STRATEGIES
Prestige Pricing
 Setting a very high price to create an image
of high quality.

62. PROMOTIONAL PRICING
 Promotional Pricing – is generally used in
conjunction with sales promotions where prices are
reduced for a short period of time
 Loss Leader Pricing – is used to increase store traffic
by offering very popular items of merchandise for sale at
below-cost prices
 Special-Event – items are reduced in price for a short
period of time, based on specific happenings
 Rebates and Coupons
 Rebates – are partial refunds provided by the manufacturer
 Coupons – allow customers to take reductions at the time of
purchase

63. DISCOUNTS AND ALLOWANCES
 Cash Discounts – are offered to buyers to encourage
them to pay their bills quickly
 Quality Discounts – are offered to buyers for placing
large orders
 Non-Cumulative – offered on one order
 Cumulative – offered on all orders over a specified period of
time
 Trade Discounts – the way manufacturers quote prices
to wholesalers and retailers
 Seasonal Discounts – are offered to buyers willing to
buy at a time outside the customary buying season
 Allowances – go to directly to the buyer after a trade-in

64. STEPS IN DETERMINING PRICES
1. Establish Pricing Objectives
2. Determine Costs
3. Estimate Demand
4. Study Competition
5. Decide on a Pricing Strategy
6. Set Prices

65. DECOY EFFECT
In marketing, the decoy effect (or asymmetric
dominance effect) is the phenomenon whereby
consumers will tend to have a specific change in
preference between two options when also
presented with a third option that is
asymmetrically dominated.
An option is asymmetrically dominated when it is
inferior in all respects to one option; but, in
comparison to the other option, it is inferior in
some respects and superior in others.

66. DECOY EFFECT EXAMPLE
 Waitress asks, "Which do you want, apple pie or
pumpkin pie?"
 Reply: "I'll have pumpkin pie."
 Waitress returns to the table: "I just found out
that we also have rhubarb pie. Would you like
that?"
 Reply: "In that case, I'll have apple pie."

67. EXAMPLE OF DECOY EFFECT
Choose between:
50% 50%
Choose between:
70% 30%0%
Choose between:
30% 70%0%

68. EXAMPLE OF DECOY EFFECT MP3 PLAYER
For example, if there is a consideration set
involving MP3 players, consumers will
generally see higher storage capacity (number
of GB) and lower price as positive attributes;
while some consumers may want a player that
can store more songs, other consumers will
want a player that costs less.

69. Consideration Set 1
A B
price $400 $300
storage 30GB 20GB
In this case, some consumers will
prefer A for its greater storage capacity,
while others will prefer B for its lower
price.

70. Now suppose that a new player, C, is added to the market; it is more
expensive than both A and B and has more storage than B but less than A:
Consideration Set 2
A B C
price $400 $300 $450
storage 30GB 20GB 25GB
The addition of C—which consumers would presumably
avoid, given that a lower price can be paid for a model
with more storage—causes A, the dominating option, to
be chosen more often than if only the two choices in
Consideration Set 1 existed; C affects consumer
preferences by acting as a basis of comparison
for A and B. Because A is better than C in both respects,
while B is only partially better than C, more consumers will
prefer A now than did before. C is therefore a decoy
whose sole purpose is to increase sales of A.

71. Conversely, suppose that instead of C, a
player D is introduced that has less storage
than both A and B, and that is more
expensive than B but not as expensive as A:
Consideration Set 3
A B D
price $400 $300 $350
storage 30GB 20GB 15GB
The result here is similar: consumers will not prefer D,
because it is not as good as B in any respect. However,
whereas C increased preference for A, D has the
opposite effect, increasing preference for B.

72. BREAK-EVEN
ANALYSIS

74. BREAK-EVEN ANALYSIS
Process used to determine profitability at various
levels of sales.
Total Fixed Cost (FC)
Unit Price one unit (P) – Variable cost one unit(VC)
Break-even point =
Fixed Cost = Expenses that remain the same no matter how
many units are sold.
Variable Cost = Costs that change according to the level of
production.
Breakeven Point = Point at which sales equal all costs.

75. DETERMINE THE BREAK-EVEN POINT
Selling Price = $5
Variable Cost = $3
Fixed Cost = $50,000

76. DISTRIBUTION

77. CONSUMER USE CYCLE - CUC
It refers to how often the product is used and
needs to be replaced.
E.g. Biscuits have much smaller CUC as
compared to Refrigerators

78. HIGH & LOW INVOLVEMENT PRODUCTS

79. CHANNEL
A path through which goods and services
flow in one direction (from vendor to the
consumer), and the payments generated
by them that flow in the opposite direction
(from consumer to the vendor).

80. CHANNEL LENGTH
Channel length is the total number of channel
members in a channel of distribution.

81. DISTRIBUTION PATTERNS
1. Exclusive
2. Distribution Intensity
1. Intensive
2. Selective

82. EXCLUSIVE DISTRIBUTION
Exclusive distribution is a distribution pattern in
which a producer sells a product through just
one middle man in a geographic area.

83. INTENSIVE DISTRIBUTION
Selling a product through every available
wholesaler and retailer in a geographic area
where consumers might look for it
 Reaches greatest number of consumers possible
 Convenience products use this intensity

84. SELECTIVE DISTRIBUTION
Selling a product through a limited number of
wholesalers and retailers in a geographic area
 Use middlemen who will do the best job of
promoting and selling their product
 May make higher profits by creating greater
sales volume through a smaller number of
successful outlets

85. HOW CHANNEL MEMBERS ADD VALUE
 Every channel member should add value to the
product as it moves through the channel
 Adding value to the product benefits all channel
members
 Being able to perform one or more activities
needed to get the product to the final consumer
 Ex: Retailers may create exciting visual displays
in their stores to promote a product
 By performing this task, retailers can add value to
the product and benefit every member in the
channel.

86. CHANNEL FUNCTIONS
 Providing marketing information:
 Companies rely on market research to determine their target markets’ needs and
wants
 Ex: small business producing handmade greeting cards
 Promoting products:
 Can be expensive
 Retailers often take a large portion of promotion responsibilities
 Ex: local supermarkets/discount stores
 Contact
 Matching
 Negotiating with the customers:
 Different prices are paid by the wholesaler, retailer and consumers based on
negotiation
 Physical distribution
 Financing and risk taking:
 Moving products through a channel costs money
 When channel members work together to finance activities and to assume
financial risks, channels will be more effective

87. HORIZONTAL AND VERTICAL CONFLICT
 Horizontal Conflict: occurs between channel
members at the same level
 Good, old-fashioned business competition
 Ex: two retailers selling pet supplies compete to sell
to the same target market
 Vertical Conflict: occurs between channel
members at different levels within the same
channel
 Producers and wholesalers or producers and
retailers

88. CHANNEL MANAGEMENT DECISIONS
 Setting channel objectives
 Determine what the company is trying to achieve
 Meet the needs and wants of their target market
 Give their product a competitive edge
 Indirect distribution: middlemen
 Direct distribution: dealing with the final
consumers directly

89. CHANNEL MANAGEMENT DECISIONS
 Determining distribution patterns
 Achieve ideal market exposure (make their product
available without over exposing and losing money)
 To achieve market exposure, marketers must
determine distribution intensity
 Intensive distribution: selling a product through every
available wholesaler and retailer in a geographic area
where consumers might look for it
 Used when trying to reach the greatest number of customers
possible (ex: convenience items – gum)
 Selective distribution: selling a product through limited
number of wholesalers and retailers in a geographic area
(high-end clothing manufacturers)
 Exclusive distribution: selling a product through one
middleman in a geographic area. Used to maintain tight
control over a product. (specialty products – airplanes,
large machinery)

90. CHANNEL MANAGEMENT DECISIONS
 Selecting channel members
 Determine the types of members the belong in the
channel, as well as the channel length (total number of
channel members)
 Usually based on the nature of the product
 Factors to consider:
 Create product value that others cannot or are not willing to
provide
 Channel the product to its desired market
 Have a pricing and promotion strategy compatible with the
product’s needs
 Offer customer service compatible with the products needs
 Be willing and able to work cooperatively with other members
within the product’s channel

91. CHANNEL MANAGEMENT DECISIONS CONT’
 Determining channel responsibilities
 Members must work together appropriately and perform the
tasks they are best suited for
 Managing, motivating, and monitoring channel members
 Marketers should constantly evaluate the channel
 What is working?
 What is not working?
 What can be improved?
 Motivation can be positive or negative
 Sanctions may be imposed on middlemen not performing well
 Chargebacks – financial penalties assessed for a variety of
problems
 Incentives may be offered for reaching performance goals

92. CHANNEL DESIGN DECISIONS
 Analyzing customer needs
 Setting channel objectives
 Identifying major alternatives
 Types of intermediaries
 Number of intermediaries
 Responsibilities of intermediaries

93. FERRARI MODULE OF MARKET COVERAGE
The module being used by MNCs to ensure
100% coverage of the market.

94. DISTRIBUTION COST
Cost or expense incurred in moving goods
from the point of production to the point of
consumption. Also called distribution expense.

95. SELF VS 3RD PARTY DISTRIBUTION
Following are the factors which need to be
considered:
 Cost
 Flexibility
 Control

96. PROMOTION

97. PROMOTION
Promotional activity is broadly categorized into
two types:
1. “Above the line” - ATL
2. “Below the line” - BTL

99. “The promotional activities carried out
through mass media like TV; radio;
newspaper; etc”
Mainly used to
reach costumers,
advertising creates
general brand
awareness.

100. CHARACTERISTICS OF ATL
1. SWIFT
2. NON – INTERACTIVE
3. HIGH COVERAGE
4. WASTAGE

101. ABOVE-THE-LINE PROMOTION
 Advantages:
 ATL can reach a large audience of
customers
 Customers more aware of ATL b/c they are
more interesting/appealing
 Disadvantages:
 Promotion through mass media may not
appeal to the right market segments
 Many advertisements are ignored (ie.
People change channel during commercials,
annoying pop-up ads on internet)
 Cannot determine effectiveness of ads b/c
communication is one-way

102. “This involves a range of methods over
which the business has more direct control
and which can be targeted at specific
groups of costumers”
•Non media
advertising
•By: exhibitions,
sponsorships,
sales
promotions or
trade discounts.

103. CHARACTERISTICS OF BTL
1. SLOW
2. INTER-ACTIVE
3. LITTLE WASTAGE
4. LOW COVERAGE

104. BELOW-THE-LINE PROMOTION
 Advantages:
 BTL can over the problem of clutter
 It can be customized and provide a two-way
communication channel
 Usually engages customers much better
than ATL
 Customers can be targeted more
specifically.
 Disadvantages:
 Cost per eyeballs/consumer is much higher
than ATL
 Reach is generally not as wide as ATL

105. 4 KEY ELEMENTS OF PROMOTIONAL MIX
 1. Advertising:
 “ the science of arresting the human intelligence long
enough to get money from it.”
 form of promotion that is paid-for
 Tv, radio, billboards, email, in-store displays
 advertising can be informative or persuasive, or both.
 advertisement should be original and creative
 most businesses use advertising agencies to make
their ads

106. 4 KEY ELEMENTS OF PROMOTIONAL MIX
 2. Personal selling:
 relies on sales representatives directly helping and
persuading potential and existing customers to make
a purchase.
 EX: sales presentations, face-to-face meetings with
clients (health insurance), telemarketing, door-to-door
sales
 Benefit:
 tailored to the individual needs of the customers.
 can help company build positive, long relationship w/
customer
 Disadvantage:
 these sales agents can be expensive to hire

107. 4 KEY ELEMENTS OF PROMOTIONAL MIX
 3. Public relations (PR) :
 aimed at establishing and protecting the desired
image of an organization.
 concerned with getting good press coverage.
 PR experts will get media to report events in a positive
way
 EX: having a presence at exhibitions, launch party,
press conferences, radio/tv interviews, donating to
charities
 PR is a long-term strategy and relied on when
business faces a crisis

108. 4 KEY ELEMENTS OF PROMOTIONAL MIX
 4. Sales promotion :
 short-term incentives designed to stimulate sales of
a product.
 EX: discount coupons, prize draws, samples
 Advantages:
 can help gain short term competitive head start
 get rid of excess or old stock
 encourages customer loyalty
 attract new customers
 Disadvantage:
 costly

109. PUBLICITY
 Publicity is the deliberate attempt to
manage the public's perception of a subject.
 Publicity is the act of attracting the media
attention and gaining visibility with the public.
 Publicity is much more credible than
advertising.
 Publicity provides 3rd party endorsement.

110. PUBLICITY METHODS
 Events
 Product Placements
 Sponsorships
 Articles
 Celebrity Spokesperson
 Unusual Happenings