Posted in Marketing and Strategy Terms, Total Reads: 707
Definition: Incremental Marketing
Any firm has a well-planned and structured marketing strategy which is required for various stages of a product’s Product Life Cycle (PLC). The success of a product launch, survival, growth and market share depends on the amount of marketing budget allocated for different stages of the PLC. But it is not always possible for many firms, especially small ones, to allocate a huge amount of money in the marketing budget. In such cases, the firms follow a strategically well devised marketing plan.
The firm breaks up the long term marketing plan and budget allocation into smaller components like payments, individual project budget, and attainment of a mile stone. Hence, the next step of the entire marketing plan is dependent on the successful execution of the previous milestone.
Incremental marketing is very useful when budget is small, firm wants controlled marketing strategy, the product or service offered by the firm has fluctuating demand and when the firm thinks that the consumer might reject the product or service. Depending on the previous milestone, the firm decides whether to go on with the marketing campaign or to stop it. This stepwise division of the entire marketing plan is called Incremental Marketing.