Introductory Lesson




  Marketing
Promo entry

Marketing also controls promotion for each product.

Promotion creates awareness. It lets customers know the product is out there and available. Over time, however, customers begin to forget your products. Without a Promotion budget, a product will lose 33% of its awareness from one year to the next.

Promotion budgets are subject to diminishing returns. The first $1,500,000 buys approximately 36% additional awareness. An additional $1,500,000 buys only 14% more awareness.

Higher awareness facilitates sales. For example, if two products have identical attributes and price, but one has 100% awareness and the other 0%, the product with 100% awareness will out sell the other 2 to 1.