Promotion is a key part of marketing programme and is concerned with efficiently and effectively communicating the decisions of marketing strategy to target audiences.
Introduction
Promotion is a key part of
marketing programme and is concerned with efficiently and effectively
communicating the decisions of marketing strategy to target audiences. It is
the marketing function concerned with persuasive communication of the marketing
programme to target audience with the intent to facilitate exchange between the
marketer and the customer, which may satisfy the objectives for both the
customer and organization. Promotion is targeted to the target audiences. It is
also goal oriented and the objective may be to create brand awareness, to
educate the consumers, to create a positive image, to build preference. The
ultimate goal is to sell the product or service to consumers who have a need of
it.
The components of promotion mix
are as follows:1. Advertising 2. Personal
selling 3. Sales
promotion 4. Publicity 5. Direct
Marketing
In a time when customers are
exposed daily to a nearly infinite amount of promotional messages, many marketers
are discovering that advertising alone is not enough to move members of a
target market to take action, such as getting them to try a new product.
Instead, marketers have learned that to meet promotional method in conjunction
with advertising.Other marketers have found that
certain characteristics of their target market (e.g., small but geographically
dispersed) or characteristics of their [product (e.g., highly complex) make
advertising a less attractive option. For these marketers better results may be
obtained using other promotional approaches and may lead to directing all their
promotional spending to non-advertising promotions. Finally, the high cost of
advertising may drive many to seek alternative, lower cost promotional
techniques to meet their promotion goals. Advertising
The use of paid media by a seller
to communicate persuasive information about its products, services, or
organization—is a potent promotional tool. Advertising takes on many forms
(national, regional, local, consumer, industrial, retail, product, brand,
institutional, etc.) designed to achieve a variety of objectives
(awareness, interest, preference, brand recognition, brand insistence). Advertising decision-making
consists of objectives setting, budget decision, message decision, media
decision, and ad effectiveness evaluation. Advertisers should establish clear
goals as to whether the advertising is supposed to inform, persuade, or remind
buyers. The factors to consider when
setting the advertising budget are: stage in the product life cycle, market
share, competition and clutter, needed frequency, and product substitutability. The advertising budget can be
established based on what is affordable, as a percentage budget of sales, based
on competitors’ expenditures, or based on objectives and tasks, and based on
more advanced decision models that are available. The message decision calls for
generating messages, evaluating and selecting between them, and executing them
effectively and responsibly. The media decision calls for
defining the reach, frequency, and impact goals; choosing among major media
types; selecting specific media vehicles; deciding on media timing;
geographical allocation of media. Finally, campaign evaluation calls for
evaluating the communication and sales effects of advertising, before, during,
and after the advertising. Sales promotion and public
relations are two tools of growing importance in marketing planning. Sales
promotion covers a wide variety of short-term incentive tools designed to
stimulate consumer markets, the trade, and the organization’s own sales force.
Sales promotion expenditures now exceed advertising expenditures and are
growing at a faster rate.Consumer promotion tools include
samples, coupons, cash refund offers, price packs, premiums, prizes, patronage
rewards, free trials, product warranties, tie-in promotions, and
point-of-purchase displays and demonstrations.
Trade promotion tools include
price-off, advertising and display allowances, free goods, push money, and
specialty-advertising items. Business promotion tools include conventions,
trade shows, contests, sweepstakes, and games. Sales promotion planning calls
for establishing the sales promotion objectives, selecting the tools,
developing, pretesting, and implementing the sales promotion program, and
evaluating the results. Marketing public relations
(MPR) is another important communication/ promotion tool. Traditionally, it has
been the least utilized tool but is now recognized for its ability in building
awareness and preference in the marketplace, repositioning products, and
defending them. Broadly, MPR is those activities that support the ultimate sale
of a product or service. Some of the major marketing public relations tools are
news, speeches, events, public service activities, written material,
audio-visual material, corporate identity, and telephone information services.
MPR planning involves establishing the MPR objectives, choosing the appropriate
messages and vehicles, and evaluating the MPR results.
Tags : MARKETING MANAGEMENT - PROMOTION DECISION
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