3.
MEANING OF
PROMOTION
▪ Promotion is a marketing tool, used as a strategy to communicate
between the sellers and buyers. Through this, the seller tries to
influence and convince the buyers to buy their products or services.
It assists in spreading the word about the product or services or
company to the people. The company uses this process to improve
its public image. This technique of marketing creates an interest in
the mindset of the customers and can also retain them as a loyal
customer.
▪ Promotion is a fundamental component of the marketing mix, which
has 4 Ps: product, price, place, and promotion. It is also an essential
element promotional plan or mix, which includes advertising, self and
sales promotion, direct marketing publicity, trade shows, events,
etc.,
▪ Some methods of this procedure contain an offer, coupon discounts,
free sample distribution, trial offer, buy two items in the price of one,
contest, festival discounts, etc. The promotion of a product is
important to help companies improve their sales because customers
reaction towards discounts and offers are impulsive. In other words,
promotion is a marketing tool that involves enlightening the
4.
INTRODUCTION
Promotion is a type of communication between the buyer and the seller. The seller
tries to persuade the buyer to purchase their goods or services through promotions. It
helps in making the people aware of a product, service or a company. It also helps to
improve the public image of a company. This method of marketing may also create
interest in the minds of buyers and can also generate loyal customers.
It is one of the basic elements of the market mix, which includes the four P’s: price,
product, promotion, and place. It is also one of the elements in the promotional mix or
promotional mix or promotional plan. These are personal selling, advertising, sales
promotion, direct marketing publicity and may also include event
marketing, exhibitions, and trade shows.
5.
PROMOTION MIX
▪ Elements of promotionalmix are also called
as tools, means, or components.Basically,
there are five elements involved in
promotional mix. Some authors have
considered more elements,too. However,
we will consider five elements
A.
6.
1: Advertising
▪ Advertising is defined as any paid form of
non-personal presentationand promotion of
ideas, goods, and services by an identified
sponsor. It is a way of mass communication.
It is the most popular and widely practiced
tool of market promotion. Major part of
promotional budget is consumed for
advertising alone. Various advertising media
– television, radio, newspapers, magazines,
outdoor means and so forth – are used for
advertising the product.
7.
Characteristics of advertising are
as follow:
▪ i. Adverting is non-personal or mass communication. Personal contact is not possible.
▪ ii. It is a paid form of communication.
▪ iii. It is a one-way communication.
▪ iv. Identifiable entity/sponsor-company or person gives advertising.
▪ v. It is costly option to promote the sales.
▪ vi. It can be reproduced frequently as per need.
▪ vii. Per contact cost is the lowest.
▪ viii. Various audio-visual, print, and outdoor media can be used for advertising purpose.
▪ ix. It is a widely used and highly popular tool of market promotion.
8.
2. Sales Promotion:
▪ Sales promotion covers those marketing
activities other than advertising, publicity,
and personal selling that stimulate
consumer purchasing and dealer
effectiveness. Sales promotion mainly
involves short-term and non-routine
incentives, offered to dealers as well
consumers. The popular methods used for
sales promotion are demonstration, trade
show, exhibition, exchange offer, seasonal
discount, free service, gifts, contests, etc.
9.
Characteristics of sales promotion
are as follows:
▪ i. The primary purpose of sales promotion is to induce customers for immediate
buying or dealer effectiveness or both.
▪ ii. Excessive use of sale promotion may affect sales and reputation of a company
adversely.
▪ iii. It is taken as supplementary to advertising and personal selling efforts.
▪ iv. It involves all the promotional efforts other than advertising, personal selling,
and publicity
▪ v. It consists of short-term incentives, schemes, or plans offered to buyers,
salesmen, and/ or dealers.
▪ vi. It involves non-routine selling efforts.
10.
3. Personal
Selling:
▪ Personal selling includes face-to-
face personal communication and
presentation with prospects
(potential and actual customers)
for the purpose of selling the
products. It involves personal
conversation and presentation of
products with customers. It is
considered as a highly effective and
costly tool of market promotion.
11.
Characteristics of personal
have been listed below:
▪ i. Personalselling is an oral, face-to-face, and personal
presentationwith consumers.
▪ ii. Basic purpose is to promoteproductsor increasesales.
▪ iii. It involves two-waycommunication.
▪ iv. Immediatefeedbackcanbemeasured
▪ v. It is an abilityof salesmento persuadeor influence buyers.
▪ vi. It is moreflexible way of market communication.
▪ vii. Per contact cost is higher thanadvertising.
▪ viii. It involves teaching, educating, and assistingpeopleto
buy.
12.
5. Public
Relations:
▪ The public relations is
comprehensive term that
includes maintaining
constructive relations not
only with customers,
suppliers, and middlemen,
but also with a large set of
interested publics. Note
that public relations
include publicity, i.e.,
publicity is the part of
public relations.
13.
William Stanton
defines:
▪ “Public relations activities typically are designed to build or
maintaina favourableimage for an organisationand a favourable
relationshipwith the organization’svarious publics. These publics
may be customers,stockholders,employees,unions,
environmentalists,the government, and people in local
community,or some other groups in society.” Thus, public
relations include organization’s broad and overall communication
efforts intended to influence various groups’attitudes toward the
organisation.Some experts have stated that the public relations
are an extensionof publicity.
14.
Main characteristic of public
Relations are as under:
▪ i. Public relations is a paid form ofmarket promotion. Company has to incur
expenses.
▪ ii. Public relations activities are designed to build and maintain a favourable image
for an organisation and a favourable relationship with the organization’s various
publics.
▪ iii. It is an integral part ofmanagerial function. Many companies operate a special
departmentfor the purpose, known as the public relations department.
▪ iv. It involves a numberofinteractions, such as contacting, inviting, informing,
clarifying, responding,interpreting,dealing,transacting, and so forth.
▪ v. Public relations covers a number ofpublics –formal and informal groups. These
publics may be customers, stockholders, employees, unions, environmentalists, the
government, peopleoflocal community, orsome other groups in society.
▪ vi. Public relations activities are undertaken continuously. It is a part ofroutine
activities.
▪ vii. All the officials, from top level to supervisory level, perform public relations
activities.
▪ viii. In relation to modern management practices, the public relations is treated as
the profession.
15.
6.Direct marketing
▪ Direct marketing is a form of advertising
and promotion that communicates directly
with the target audience. In this type of
marketing, companies and organizations
communicate with consumers through
various channels, aiming to elicit a specific,
measurable response.
16.
Main characteristic of direct
marketing are as under:
▪ Focuses on specific individuals or groups based on
demographics, interests, or past behaviors.
▪ Utilizes channels that enable direct communication with the
target audience, such as email, direct mail, and
telemarketing.
▪ Relies on the use of customer databases for data
collection, analysis, and personalization of marketing
messages.
▪ T
ailors marketing messages to individual recipients, often
based on their preferences, behaviors, or previous
interactions with the brand.
▪ Includes a clear and specific call to action in marketing
materials, prompting the recipient to take a desired step.
17.
1. Setting Promotion Objectives:
▪
Certainly, decision-making in promotioninvolves several key steps,and you've highlighted some crucial aspects.Let's break down
each component:
▪ 1. Setting PromotionObjectives:
Definition:
▪ Identifying and clearly defining the goals and objectives that the promotionaims to achieve.
Key Considerations:
▪ Align objectives with overall marketing and business goals.
▪ Make objectives specific,measurable,achievable, relevant, and time-bound (SMART).
Example Objectives:
▪ Increase brand awareness by 20% in the next quarter.
▪ Generate 15% more leads through a promotionalcampaign.
▪ Boostsales by 10% during a specificpromotionalperiod.
18.
2. Budget Allocation:
Definition:
▪ Determining the financial resources to allocate to the promotion to achieve the set objectives.
Key Considerations:
▪ Consider historical performance and benchmarks.
▪ Allocate budget based on the priority and impact of different promotional activities.
▪ Monitor and adjust the budget as needed during the campaign.
Example Budget Allocation:
▪ 40% for digital advertising.
▪ 30% for in-store promotions.
▪ 20% for social media marketing.
▪ 10% for public relations activities.
19.
3. Message Development:
Definition:
▪ Creating a compelling and targeted message that effectively communicates the promotion's value
proposition to the target audience.
Key Considerations:
▪ Understand the needs and preferences of the target audience.
▪ Ensure consistency with the brand identity.
▪ Craft a message that resonates emotionally and provides a clear call to action.
Example Message Development:
▪ Use a tagline that encapsulates the promotion's essence.
▪ Highlight key benefits and unique selling points.
▪ Tailor the message for different marketing channels.
20.
4. Media Selection:
Definition:
▪ Choosing the appropriate channels and platforms to deliver the promotional message to the target audience.
Key Considerations:
▪ Understand where the target audience is most active.
▪ Consider the nature of the promotion (e.g., special offers, brand building) when selecting media.
▪ Utilize a mix of traditional and digital media for broader reach.
Example Media Selection:
▪ Social media platforms (e.g., Instagram, Facebook) for a younger demographic.
▪ Television and radio for a broader audience.
▪ Email newsletters for targeted communication with existing customers.
