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Understand the Concept of Promotion

Understand the Concept of Promotion

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Published by neoeverest

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Published by: neoeverest on Sep 09, 2011
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UNDERSTAND THE CONCEPT OF PROMOTIONPromotion
is one of the four elements omarketing mix (product, price, promotion, and place). It is the communicationlink between sellers and buyers for the purpose of influencing,informing, or persuading a potential buyer's purchasingdecision.
 The following are two types of promotion:
1.
2.
Below the line promotion: All other promotion. Much of this is intended to be subtle enough for theconsumertobe unaware that promotion is taking place. E.g.sponsorship,product placement,testimonials,sales  promotion,merchandising,direct mail, personal selling, public relations,trade showsA promotional mix specifies how much attention to pay to eachof the five subcategories, and how much money to budget foreach. A promotional plan can have a wide range of objectives,including: sales increases, new product acceptance, creation of brand equity,positioning, competitive retaliations, or creation of acorporate image. Fundamentally, however there are threebasic objectives of promotion. These are:1.To present information to consumers as well as others
 
2.To increase demand3.To differentiate a product. There are different ways to promote a product in differentareas of media. Promoters use internet advertisement, specialevents, endorsements, and newspapers to advertise theirproduct. Many times with the purchase of a product there is anincentive like discounts, free items, or a contest. This is toincrease the sales of a given product. The term "promotion" is usually an "in" expression usedinternally by the marketing company, but not normally to thepublic or the market - phrases like "special offer" are morecommon. An example of a fully integrated, long-term, large-scale promotion isMy Coke RewardsandPepsi Stuff . The UK  version of My Coke RewardsisCoke Zone.  The elements of the promotions mix are:
Personal Selling.
Sales Promotion.
Public Relations.
Direct Mail.
 Trade Fairs and Exhibitions.
Advertising.
Sponsorship.
The Promotions Mix
 
Let us look at the individual components of the promotions mixin more detail. Remember all of the elements are 'integrated' toform a specific communications campaign.
1. Personal Selling.
Personal Selling is an effective way to manage personalcustomer relationships. The sales person acts on behalf of theorganization. They tend to be well trained in the approachesand techniques of personal selling. However sales people arevery expensive and should only be used where there is agenuine return on investment. For example salesmen are oftenused to sell cars or home improvements where the margin ishigh.
2. Sales Promotion.
Sales promotion tend to be thought of as being all promotionsapart from advertising, personal selling, and public relations.For example the BOGOF promotion, or Buy One Get One Free.Others include couponing, money-off promotions, competitions,free accessories (such as free blades with a new razor),introductory offers (such as buy digital TV and get freeinstallation), and so on. Each sales promotion should becarefully costed and compared with the next best alternative.
3. Public Relations (PR).
Public Relations is defined as
'the deliberate, planned ansustained effort to establish and maintain mutualunderstanding between an organization and its publics'

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