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Submitted by lovedayzzz on May 18, 2006
Category: Business
Words: 560 | Pages: 3
Views: 183
Popularity Rank: 41,597
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Promotion and Advertising
The Role of Promotion: Communication to build and maintain favorable relationship by informing and persuading target audiences to view an organization positively and to accept its products. While a company overall role of promotion is to stimulate product demand.
Objectives of Promotion:
• Create awareness
• Stimulate demand
• Encourage product trail
• Identify prospects
• Retain loyal customers
• Facilitate user support
Create awareness: For E-Health to introduce a new product, making customers aware of the product is crucial to initiating the product adoption process. E-Health has invested heavily in product development needs to create product awareness quickly to generate revenues to offset the high costs of product development and introduction.
Stimulate demand: The innovative product is in the introductory stage of the product life cycle, E-Health is going to advertising its product by using the Pioneer Advertising Method to focus on stimulating demand for a product category (rather than a specific brand) by informing potential customers (doctors and the patients) about the product’s features, uses, and benefits (what it is, what it does, how it can be used, and where it can be obtained.)
Encourage product trail: Hospitals/doctors may stall during the evaluation stage of E-Health products and services. Therefore, certain types of promotion, such as free samples and/or free tests are employed to encourage product trail.
Identify prospects: Those who are interested in E-Health products are most likely doctors, patients, hospitals, health care providers (PPO and HMO) and insurance companies.
Retain loyal customers: The goal is to maintain long-term customer relationships. Such relationships are quite valuable. Promotional efforts directed at customer retention can help E-Health control its...
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