When planning a promotional strategy for a new product, what should a business do?

Allocating a portion of the budget to promote the new product is essential for several reasons. First, a strategic approach to promotion is crucial when launching a new product in order to generate awareness and stimulate interest among potential customers. By setting aside budget specifically for promotion, a business can create a tailored marketing campaign that effectively communicates the product's benefits and features to the target audience.

Additionally, promoting a new product helps to establish a market presence and can play a key role in driving initial sales. An allocated budget allows for flexibility in choosing promotional channels, such as social media, online advertising, or traditional media, which can be adjusted based on the product's performance and customer feedback.

Moreover, an early investment in promotion can lead to a stronger market entry, helping the product to gain traction before competitors have the chance to react. Setting an appropriate advertising budget at the outset not only indicates the company's commitment to the new product but also enhances its overall marketing efforts by aligning with the business's broader objectives.