Promotion is one of the four elements of marketing mix (product, price, promotion, and place). It is the communication link between sellers and buyers for the purpose of influencing, informing, or persuading a potential buyer's purchasing decision. Generally, promotion is communicating with the public in an attempt to influence them toward buying your products and/or services. PROMOTION
- to communicate and inform the public of their product. - Promotion is also however used to influence the marketers target market usually via means of interpellation, promoting their product as better than any other similar products, or by changing the views, awareness, beliefs and feelings of perspective customers. -promotion is used to change the location and shape of the demand curve for a company’s product, or increase the sales of the promoted product. Roles of Promotion
1. To present information to consumers as well as others 2. To increase demand 3. To differentiate a product. 3 basic objectives of promotion
1. It creates awareness of the existence of the product or service offered. 2. It can provide customers with information about the product that may be useful to them, and therefore produces an incentive for them to buy your product, or use your service.3. It also helps increase the market share. 4. More money, more visibility when you do something good - leading to possible more promotions in the future Advantages of Promotion
1. It can be quite costly depending on the advertising medium you use; obviously TV and radio advertising tend to be more expensive than advertising on notice boards. 2. Some methods of advertising are more effective than others. 3. Promotion also tends to be competitive. So no matter how much you spend on advertising, if you've got many competitors (substitute products or services), and their methods are more effective, then your promotion campaign may not work. 4. More responsibility, more stress, higher expectation of you, more hrs possibly. Disadvantages of Promotion
Promotion •includes all activities designed to inform, persuade and influence people when they are making the decision to buy. Promotion is made up of: Advertising • non-personal communication transmitted through mass media Publicity • free promotion through news stories in newsletters, newspapers, magazines and television Sales Promotion • all forms of communication not found in advertising and personal selling, including direct mail, coupons, volume discounts, sampling, rebates, demonstrations, exhibits, sweepstakes, trade allowances, samples and point-of purchase displays. Types of Promotion
Advantages and Disadvantages of Each Element of the Promotional Mix
Once the producer has reviewed all the possible promotional tools, he/she must devise a promotional strategy. A Promotional strategy should address the following issues: • What is the goal of the promotion? • What types of promotion should be used? • What effect should the promotion have on the customer? • Which promotion is working? • Which promotion is not working? • What are the costs of the promotion compared to the benefits? Promotional Strategy
Print Advertising – Newspapers, Magazines, Brochures, Fliers The print media have always been a popular advertising medium. Advertising products via newspapers or magazines is a common practice. In addition to this, the print media also offers options like promotional brochures and fliers for advertising purposes. Different kinds of advertising
Outdoor Advertising – Billboards, Kiosks, Tradeshows and EventsOutdoor advertising is also a very popular form of advertising, which makes use of several tools and techniques to attract the customers outdoors. The most common examples of outdoor advertising are billboards, kiosks, and also several events and tradeshows organized by the company. The billboard advertising is very popular however has to be really terse and catchy in order to grab the attention of the passers by.
Broadcast advertising – Television, Radio and the Internet Broadcast advertising is a very popular advertising medium that constitutes of several branches like television, radio or the Internet. Television advertisements have been very popular ever since they have been introduced. Covert Advertising – Advertising in Movies Covert advertising is a unique kind of advertising in which a product or a particular brand is incorporated in some entertainment and media channels like movies, television shows or even sports. There is no commercial in the entertainment but the brand or the product is subtly ( or sometimes evidently) showcased in the entertainment show.
Surrogate Advertising – Advertising Indirectly Surrogate advertising is prominently seen in cases where advertising a particular product is banned by law. Advertisement for products like cigarettes or alcohol which are injurious to heath are prohibited by law in several countries and hence these companies have to come up with several other products that might have the same brand name and indirectly remind people of the cigarettes or beer bottles of the same brand. Public Service Advertising – Advertising for Social Causes Public service advertising is a technique that makes use of advertising as an effective communication medium to convey socially relevant messaged about important matters and social welfare causes like AIDS, energy conservation, political integrity, deforestation, illiteracy, poverty and so on.
Celebrity AdvertisingUsing celebrities for advertising involves signing up celebrities for advertising campaigns, which consist of all sorts of advertising including, television ads or even print advertisements.
Personal selling refers to the presentation of goods before the potential buyers and persuading them to purchase it. It involves face-to-face interaction and physical verification of the goods to be purchased. The objective is not only just to sell the product to a person but also to make him/her a permanent customer. PERSONAL SELLING
1. It is a two-way form of communication. 2. It is Flexible. 3. it the most effective promotional method for building relationships with customers, particularly in the business-to-business market. 4. Most practical promotional option for reaching customers who are not easily reached through other methods. Advantages of Personal Selling
1. Intruding nature of the method. 2. It is expensive 3. Job turnover in sales is often much higher than other marketing positions 4. Can not reach mass audience 5. Numerous calls needed to generate sale 6. Labor intensive Disadvantages of Personal Selling