The document defines promotion as persuasive communications that modify behavior and thoughts to inform, persuade, and remind consumers. Promotion includes advertising, personal selling, sales promotion, public relations, and direct marketing. The objectives of promotion are to lead to behavior modification, inform consumers, and persuade and remind consumers. Promotion helps communicate product information to potential customers and is crucial for brand building. An effective promotional mix attracts, persuades, and reminds customers of a brand while helping differentiate products and counter competition.
2. DEFINITION OF PROMOTION
According to Philip Kotler,
“Promotion compasses all the tools in the
marketing mix whose major role is persuasive
communications.”
According to Stanston,
“Promotion includes, advertising, personal
selling, sales promotion and other selling tools.”
3. Objective of Promotion
Leads to Behavior Modification.
ii. Modify behavior and thought. Eg. Persuading to drink Coca Cola
rather than Pepsi.
iii. Reinforces existing behavior. Eg. Persuading to continue coca cola
once customer began to take.
Objective to Inform.
Objective to Persuade.
Objective to Remind.
Specific to Remind.
4. Role of Promotion
Promotion helps marketers to communicate information to
potential customers. This information could be about the
Product existence (awareness), value and benefits offered
by the product (utility).
A well designed promotion mix is extremely crucial for
brand building and positioning. In fact communication or
promotional mix is at the centre stage in brand positioning
and brand building activities.
Promotional mix or IMC help marketers to attract,
persuade, urge and remind customers of the companies
brand.
Effective promotion prove helpful in product differentiation
and also help to counter competition.
5. Components of Promotion
Advertising.
Sales promotion.
Personal selling.
Public relation.
Direct Marketing.
All of the above components when used in
combination constitute a Promotional Mix of
a firm or Organization.
6. Advertising
“Advertising is any paid form of non personal
presentation and promotion of ideas, goods and
services by an identified sponsor.”
Advertising is the form of communication
intended to promote the sales of the product or
services to influence the public opinion, to get
political support or to advance a particular
causes.
7. Features of Advertising
It is mass communication process.
It is informative action.
It is persuasive Act.
It is competitive act.
It is not the part of product.
It is Paid for.
It is non personal presentation.
8. Advantages of Advertising.
Advantages to Manufacturer.
II. It increases the sales volume.
III. It increases the Net Profits.
IV. It controls Product Price.
V. It helps in Opening New Market.
VI. It Maintain existing Market.
Advantages to Salesman
8. Curtails the Burden of the salesman job.
9. Least Efforts.
Advantages to Wholesalers and Retailers.
11. Create easy sales.
12. Increase the turnover.
13. Attract the more customers.
9. Advantages of Advertising.
Advantages to Customers.
2. Easy Purchasing.
3. Saves time.
4. Choose best quality product.
5. Educates the customers.
Disadvantage of Advertising
7. Less Persuasive.
8. High level of wastage.
9. Not targeted well.
10. Difficult to evaluate.
11. Little interactive.
12. Costly.
10. Classification of Advertising
According to Geographical Spread
2. National Advertising..
3. Local Advertising..
4. Global Advertising..
According to Target Group.
6. Consumer Advertising.
7. Industrial Advertising.
8. Trade Advertising.
9. Professional Advertising.
11. Classification of Advertising
Institutional Advertising.
Institutional Advertising.
Product Advertising.
Timing of response it Elicits.
5. Direct Action advertisement.
6. Indirect Action Advertising.
12. Steps in Designing Advertising
Campaign
Identify the target Audience.
Set the advertising Objectives.
Determine the advertising budget.
Design the message.
Evaluate and select the media.
Create an advertisement.
Measure the impact.
13. Sales Promotion
According to Philip Kotler,
“Sales Promotion consist of diverse collection
of incentive tools, mostly short term designed
to stimulate quicker or greater purchase of
particular product or services by consumers or
the trade.”
From the above definition one can understand the following
characteristics of Sales Promotion
4. It is mostly short term in nature.
5. Its only objective is to promote sales quickly.
6. Sales promotion is done with channel partners as well as the
customers.
14. Commonly used tools and
techniques of sales promotion
Sponsorships.
Demonstration.
Trade fairs and Exhibition.
Coupons.
Exchange offers.
Free samples.
Loyalty programmes.
Contest.