PROMOTION MIX

Submitted by:- Abhishek Chauhan Class- B.com(H)-IIIrd Year Section-B Roll No.-5232

Meaning of Promotion
According to the American Marketing Association, promotion is the personal or Impersonal process of assisting and/or persuading a prospecting customer to buy a product or service or act favourably upon that has commercial significance to the seller.

Promotion Mix (Push and Pull Strategies)

Pull Strategy:- A pull strategy is one in which mass impersonal sales efforts are given the greatest emphasis. It requires considerable expenditure on advertising and sales promotion to build up consumer demand. Push Strategy:-In contrast, a push strategy emphasises personal selling. It requires use of sales force and trade promtion to push the product through the channels.

Objectives of Promotion
Provide information to prospective customers about the availability, features and uses of product. Stimulate demand by creating awareness and interest among customers. Differentiate a product from competitive products by creating brand loyalty. Stabilise sales by highlighting the utility of the product.

Kinds of Promotion
Informative Promotion:- All promotions, essentially, are designed to inform the target market about the firms offerings. Informative promotion is more prevalent during early stages of product life cycle. Persuasive promotion :- The basic purpose of promotion is to persuade people to buy. It is designed to stimulate purchase and to create a positive image in order to influence long-term buyer behaviour.

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Reminder Promotion:- This is adopted when the product reaches maturity stage. Insisting and emphasising brand names and product features in competitive terms is the central aim of reminder promotion. Buyer Behaviour Modification:- The effect of promotion is measured through the modification in consumer behaviour. The repeated advertisements and constant personal selliing methods are designed to achieve this goal.

Method of Promotion
(1) Public Relation:- Public relation mean developing good relation with various stakeholders by obtaining favourable publicity, building up a good corporate image, and handling unfavourable rumours, stories and events. Public relations are used to promote products, people, places, ideas, activities and organisations. (2) Advertising. The main characteristics of advertising are as follow:-

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(A)Public Presentation:- Advertising is a highly public mode of communication. (B) Pervasiveness:- Advertising is a pervasive medium. It permits the seller to repeat the message several times. It also allows the buyer to receive and compare the messages of various competitiors. (C) Amplified Expressiveness:- Advertising provides scope to dramatize the product through the artful use of print, sound, colour.

(3) Personal Selling:-The distinctive benefits of personal selling are as follow:(A)Personal:- Personal selling involves an alive and interactive relationship. Each party can observe the needs and characteristics of the other closely and make immediate adjustment. (B) Cultivation:- Personal selling allows cultivation of deep personal relationship. (C) Response:- Personal selling makes the buyer feel under some obligation to listen and respond.

(4) Sales promotion:-The distinctive benefits of sales promotion are as follow:(A)Communication:- Sales promotion tools gain attention and usually provide information that may lead the consumer to the product. (B) Incentive:- Sales promotion contains some concession that provides value to the consumer. (C) Invitation:- Sales promotion includes an invitation to engage in the transaction now.

(5) Publicity:-The distinctive qualities of publicity are as follow:(A)High credibility:- News stories and features are more authentic and credible to readers than ads. (B) Ability to catch buyers off guard:- publicity can reach people who prefer to avoid sales people and ads.

Promotional Planning
Usually five basic steps are followed in planning promotional activities:(1) Problem definition, (2) Definition of detailed objective, (3) Design of promotion mix, (4) Detailed planning, and (5) Monitoring and evaluation.

Factors Affecting Promotion Mix

(1) Nature of product:- Different product require different tools of promotion. In case of industrial goods(like plant, machinery , etc.)personal selling is most effective because a great deal of pre-sale and after sale services are required to sell and install the product. (2) Nature of market:- Number and location of customers exercise considerable influence on promotion mix.

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(3) Stage of the Products Life:- During the introduction stage the main aim of promotion is to create primary demand by emphasising the products features, utility, etc. (4) Availability of funds:- The promotional budget of the firm is an important determinant of promotion mix. (5) Promotional strategy:- Promotion mix depends to a great extent on whether a company chooses a push or pull strategy to create sales.

Thank you