One of the hardest marketing decisions facing a company is how much to spend on promotion? Promotion budget is defined as an amount of money that is to be used to promote the products and services of an organization. For Pond’s, it is necessary to make the consumers aware of its beauty products so that this awareness turns into their liking of the product, followed by preference and finally an action of purchase. Marketers can choose from two basic promotion mix strategies- push promotion or pull promotion. Push strategy is the one that calls for the sales force and trade promotion to push the product through channels. Whereas the pull strategy focuses on the spending on advertising and final promotions to make the consumers buy the product.
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Competitive parity method has a more outward approach and decides its promotion budget in equality to its competitors. Lastly, objective method is more of an inward approach based on what the company wants to accomplish with promotion. For Pond’s, the lady we interviewed said that the split of the marketing budget across the various heads of the promotion mix is more of a ‘confidential information’. According to her, Pond’s focuses more on the pull side of the promotion, believing that the brand is already well established in the minds of consumers as a ‘beauty product’ and any act of price incentives may put a question mark on quality of product being offered. It roughly spends 60-70% on advertising. The aim is to spread the awareness of Pond’s Face Wash and to persuade them to use it. They wish to convert 40% of their target segment from the knowledge stage to the action stage. In the first phase they advertise it through the television ads, print ads and digital marketing including facebook, twitter …show more content…
Once, a customer buys the product and is satisfied, it is usual for him to make repeat purchases. Moreover, sales promotion campaigns are not always targeted to consumers only, but there is also trade promotion campaigns used by Pond’s. This type of campaign is about getting retailers such as hyperstar, naheed, imtiaz and other small nearby shops to carry new items and more of its inventory and give them a shelf space that is more prominent in the eyes of consumers. Pond’s in its distribution channel offers many trade discounts to its retailers to stock more of its product and as result they are given favor in terms of prominent racks to encourage sales and generate enough revenue. Any new variant of facewash launched makes manufacturers offer more deals to retailers so that they are prepared to stock it at a reduced price, thus reducing the chances of failure for the new variant
Competitive parity method has a more outward approach and decides its promotion budget in equality to its competitors. Lastly, objective method is more of an inward approach based on what the company wants to accomplish with promotion. For Pond’s, the lady we interviewed said that the split of the marketing budget across the various heads of the promotion mix is more of a ‘confidential information’. According to her, Pond’s focuses more on the pull side of the promotion, believing that the brand is already well established in the minds of consumers as a ‘beauty product’ and any act of price incentives may put a question mark on quality of product being offered. It roughly spends 60-70% on advertising. The aim is to spread the awareness of Pond’s Face Wash and to persuade them to use it. They wish to convert 40% of their target segment from the knowledge stage to the action stage. In the first phase they advertise it through the television ads, print ads and digital marketing including facebook, twitter …show more content…
Once, a customer buys the product and is satisfied, it is usual for him to make repeat purchases. Moreover, sales promotion campaigns are not always targeted to consumers only, but there is also trade promotion campaigns used by Pond’s. This type of campaign is about getting retailers such as hyperstar, naheed, imtiaz and other small nearby shops to carry new items and more of its inventory and give them a shelf space that is more prominent in the eyes of consumers. Pond’s in its distribution channel offers many trade discounts to its retailers to stock more of its product and as result they are given favor in terms of prominent racks to encourage sales and generate enough revenue. Any new variant of facewash launched makes manufacturers offer more deals to retailers so that they are prepared to stock it at a reduced price, thus reducing the chances of failure for the new variant