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It is not enough for a business to have good products sold at attractive prices. To generate sales and profits, the benefits of products have to be communicated to customers. In marketing, this is commonly known as "promotion". Promotion is all about companies communicating with customers. A business' total marketing communications programme is called the "promotional mix" and consists of a blend of advertising, personal selling, sales promotion and public relations tools. In this revision note, we describe the four key elements of the promotional mix in more detail. It is helpful to define the four main elements of the promotional mix before considering their strengths and limitations. (1) Advertising Any paid form of non-personal communication of ideas or products in the "prime media": i.e. television, newspapers, magazines, billboard posters, radio, cinema etc. Advertising is intended to persuade and to inform. The two basic aspects of advertising are the message (what you want your communication to say) and the medium (how you get your message across) (2) Personal Selling Oral communication with potential buyers of a product with the intention of making a sale. The personal selling may focus initially on developing a relationship with the potential buyer, but will always ultimately end with an attempt to "close the sale". (3) Sales Promotion Providing incentives to customers or to the distribution channel to stimulate demand for a product. (4) Publicity The communication of a product, brand or business by placing information about it in the media without paying for the time or media space directly. otherwise known as "public relations" or PR. Advantages and Disadvantages of Each Element of the Promotional Mix Mix Element Advertising Advantages Good for building awareness Effective at reaching a wide audience Not good at getting customers to Repetition of main brand and product make a final purchasing decision positioning helps build customer trust Personal Selling Highly interactive - lots of communication between the buyer and seller Costly - employing a sales force has many hidden costs in addition to wages Disadvantages Impersonal - cannot answer all a customer's questions
radio. The personal selling may focus initially on developing a relationship with the potential buyer. newspapers. Personal Selling Personal selling refers to oral communication with potential buyers of a product with the intention of making a sale. billboard posters.the promotional mix Promotional mix It is helpful to define the five main elements of the promotional mix before considering their strengths and limitations.g.if the publicity is achieved through the right media promotion. magazines.Excellent for communicating complex Not suitable if there are thousands / detailed product information and of important buyers features Relationships can be built up important if closing the sale make take a long time Sales Promotion Can stimulate quick increases in sales If used over the long-term.e. television. cinema etc. but will always ultimately end with an attempt to "close the sale". write or say about your product newspaper) Cheap way of reaching many customers . Advertising is intended to persuade and to inform. by targeting promotional incentives customers may get used to the on particular products effect Good short term tactical tool Too much promotion may damage the brand image Public Relations Often seen as more "credible" . The two basic aspects of advertising are the message (what you want your communication to say) and the medium (how you get your message across) Direct marketing Direct marketing creates a direct relationship between the customer and the business on an individual basis. magazine.since Risk of losing control – cannot the message seems to be coming always control what other people from a third party (e. Sales Promotion . Advertising Advertising is any paid form of non-personal communication of ideas or products in the "prime media": i.
There are several factors that should be taken into account in deciding which. On the other hand. few consumers need much information about products such as baked beans or bread.Sales promotion refers to the provision of incentives to customers or to the distribution channel to stimulate demand for a product. where there are substantial numbers of potential customers. brand or business by placing information about it in the media without paying for the time or media space directly Factors that determine the type of promotional tools used Each of the above components of the promotional mix has strengths and weaknesses. (3) Customer information needs Some potential customers need to be provided with detailed. complex information to help them evaluate a purchase (e. where markets are geographically disperse or. Promotional tools such as brand advertising and sales promotion are much more effective in this case.often using selling teams rather than just one individual. A good example of this would be businesses selling software systems designed for supermarket retailers. . personal selling is almost always required . then personal selling may be the most cost-effective promotional tool. and how much of each tool to use in a promotional marketing campaign: (1) Resource availability and the cost of each promotional tool Advertising (particularly on television and in the national newspapers can be very expensive). (2) Market size and concentration If a market size is small and the number of potential buyers is small. Public Relations Public relations is the communication of a product. The overall resource budget for the promotional campaign will often determine which tools the business can afford to use. By contrast. buyers of equipment for nuclear power stations. or health service managers investing in the latest medical technology). In this situation. advertising is usually the most effective.g.
Publicity • • • High veracity (believability) Off guard Dramatization Effectiveness of methods • • • • Publicity .Promotional Mix is part of the promotional strategy being made up of 4 variables 1.more effective at awareness stage Advertising . Advertising • • • • Public presentation . Personal selling • • • Personal confrontation Cultivation Response 3.more effective when a more personal relationship is needed Sales promotion .confers a legitimacy on product Permits repetition of message Dramatizes company and its products Impersonality 2.becomes less effective over time Personal selling .gives added incentive for buyer action Role of advertising • • • • • • Awareness building Comprehension building Efficient reminding Lead generation Legitimization Reassurance Factors influencing the promotion mix • • • • • Promotion budget available Stage of product life cycle Nature of market situation Target of the promotion Nature of the product . Sales promotion • • Trade promotions Sales force promotions 4.
Need for Product Promotion a) To introduce a new product in the market. salesmanship and sales promotion. To sum up. 2. The communication must have identical meaning for both sender and receiver. about the products and services by buyers and sellers. shows and expositions. 4. With the help of promotion producer must create product differentiation in the minds of consumers. free sample coupons. then that will be called Break down at the message stage. such as displays. Sales promotion may be done with the help of tools like displays. demonstrations and various non-recurrent selling efforts not in the ordinary routine. which stimulate consumer purchasing and dealer effectiveness. while there is change in the price. If the communication does not properly reach the receiver or the message received is not the same as the message sent. During the periods of depression it is essential to maintain at least some minimum market. advertising. Such communications are conveyed with the help of advertisement. f) To increase the sales by imparting special training to salesmen and by window display. a reaction over the message sent back by a customer to the sender. d) To encourage dealers to stock more goods. Sales promotion refers to those marketing activities other than personal selling. premium etc. information. This includes sales activities which supplement both personal selling and advertising. Promotion includes sales promotion. sharing of meaning. but sales promotion helps only to sales activity. Sales promotion is only a part of promotion. In the case of effective communication feed back will be always present. The present day market is very competitive due to the large number of rivals and substitutes.Sales Promotion Sales promotion is different promotion. promotion is to make the demand inelastic. personal selling etc. distributors and dealers to sell a certain brand and to make consumers more eager to buy that brand. Therefore it is very essential to use promotion. Deciding Promotional Mix . In such cases personal selling alone cannot be used and so all the steps for promotion are to be followed. e) To withstand in the competitive field. Communication and promotion Marketing communication involves. In the market communication. concepts. advertisement and publicity. Sales promotion acts as a link between advertisement and personal selling. Promotion helps to make all other marketing activities more effective and efficient. exhibitions. Nowadays most of the consumers market their products in wider area and the consumers are also very large in number. b) To influence the public with the help of new uses of the product. Its purpose is to increase the desire of salesman. Promotional Strategy 1. Effects of Promotion 1. So promotion must stimulate the consumers to buy more. feed back means a response. A communication will be treated as effective only when it is properly responded by the buyer. Promotion is very essential to communicate the use of the product and the nature of the product to consumers and middlemen 3. c) To increase the frequency of purchase by each buyer.
(d) Availability of Funds The amount of funds available for promotion will decide the promotional mix. Generally with the help of a single method it is not possible to succeed. Promotion mix means finding out the proper ratio of usage of different methods of promotion. An ideal promotion mix is that situation where the total expenditure incurred for various promotion methods is minimum and sales by such mix is maximum. Sometimes even the personal selling alone cannot be successful without the support of advertisement.Personal selling. then advertisement is more suitable. it is better to advertise. Especially if customers are scattered. If information are to be passed to consumers and when the number of consumers is large. Advertising needs the support of personal selling or display to increase the sales. During most of the situations two or more promotional methods are to be used for each campaign. If the funds are available are less than maximum portion of such funds will be allocated for personal selling in a limited area. advertisement and sales promotion are some of the promotional methods. . (a) Nature of the product Nature of the product will be decide the promotional mix. will require more of advertisement than personal selling and displays (b) Nature of the Customer If the communications are mostly to middlemen. The management must find out. Industrial goods with high technology will need much of personal selling and cosmetics. Promotional mix is influenced by the following factors. how much amount should be spent on each promotional activity. then advertisement alone can be successful. For consumer goods advertisement and dealer display will have more effect. blades etc. then personal selling will be more effective and very little spending on advertisement will do. If the market for a product is available at national level. (c) Nature of the Market If market for a product is only local then personal selling alone will be sufficient. The companies having huge funds for promotion will favor advertisement and try to cover wider market. These funds may be used for window display also.
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