Page 559 - Business Principles and Management

Unit 6

The type of product and its price influence promotional decisions. The strat-
egy for promoting an expensive piece of jewelry will be much different from that
for promoting tennis shoes.
Although the product and its price provide general guides for promotion,
marketing managers must consider many other factors before developing the ac-
tual promotions. For example, the company will budget only a certain amount
of money for promotion. Managers must decide when to spend the money and
how much to spend on advertising, displays, and other types of promotion. They
must consider what promotions competitors are using and what information
consumers need in order to decide to buy.

CHECKPOINT

List the elements of a marketing mix.

20.2 Assessment

UNDERSTAND MANAGEMENT CONCEPTS
Circle the best answer for each of the following questions.
1. Groups of customers with very similar needs to whom the company
plans to sell its product are called the
a. target customers
b. target consumers
c. target market
d. target groups
2. The four elements of the marketing mix include all of the following
except
a. product
b. price
c. customer
d. promotion

THINK CRITICALLY
Answer the following questions as completely as possible.
3. Explain how companies identify their markets.
4. Describe what a customer receives in exchange
for a purchase price.

thomsonedu.com/school/bpmxtra

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