ADVERTISING PROMOTIONAL ACTIVITIES
 

 

 

 

 

 

 

 

 

 

 

 

Advertising and promotional activities were important marketing tools in those segments which utilized distribution channels and/or which reached end users as opposed to OEM’s. This was particularly true of foams, adhesives, and sealants which were sold both to industrial and consumer markets. A variety of packaged consumer products were sold to hardware, supermarkets, and “do-it-yourself” outlets by our company as well as other competitors. Advertising increased awareness and stimulated interest among the general public while promotional activities improved the effectiveness of distribution networks. Since speciality petroloid products accounted for only a small percentage of a distributor ’s total sales, product promotion insured that specific products received adequate attention. Product availability was a fourth dimension on which producers competed. With manufacturing cycles from 2-16 weeks in length and thousands of different products, no supplier could afford to keep all his items in stock. In periods of heavy demand, many products were often in short supply. Those competitors with adequate supplies and quick deliveries could readily attract new business.9 Apparently, strategy development is difficult because different emphases may be needed in different product/market situations. Emphasis is built around critical variables that may themselves be difficult to identify.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Luck plays a part in making the right move; occasionally, sheer intuition suffices. Despite all this, a careful review of past performance, current perspectives, and environmental changes go a long way in choosing the right areas on which to concentrate. Strategy Formulation Reformulation of current strategy may range from making slight modifications in existing perspectives to coming out with an entirely different strategy. For example, in the area of pricing, one alternative for an automobile manufacturer may be to keep prices stable from year to year (i.e., no yearly price increases). A different alternative is to lease cars directly to consumers instead of selling them. The deci- sion on the first alternative may be made by the SBU executive. But the second alternative, being far-reaching in nature, may require the review and approval of top management. In other words, how much examination and review a prod- uct/market strategy requires depends on the nature of the strategy (in terms of the change it seeks from existing perspectives) and the resource commitment required. Another point to remember in developing core strategy is that the emphasis should always be placed on searching for new ways to compete. The marketing strategist should develop strategy around those key factors in which the business has more freedom than its competitors have. The point may be illustrated with ref- erence to Body Shop International, a cosmetic company that spends nothing on advertising, even though it is in one of the most image-conscious industries in the business world. Based in England, this company operates in 37 nations.