PRINCIPLES OF PROMOTION AND COMMUNICATION
In previous terms, you have been introduced to the first 3 marketing mix, product, price and place. In this term, another important marketing mix, which is promotion, will be introduced to provide a better understanding of how promoting products are done and the necessary elements that should be taken into consideration. It will be such a waste if a company has already set its products and prices but nobody knows about it. The promotional activities done by companies are vital in communicating the company’s product/services to the market.
DEFINITION OF PROMOTION
Promotion is defined as the deliberate strategies or ...view middle of the document...
Each promotional tool has its own advantages and disadvantages and different organization will require different promotional tools to achieve its communication objective. The following are some of the promotional tools used by organizations.
Advertising is a paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor. The types of advertising media include TV, radio, print and direct mail.
b) Sales Promotion
Sales promotion is giving short-term incentives to encourage the purchase or sales of a product or service. Examples of sales promotional tools are discounts, coupons, contests and sweepstakes.
c) Public Relations and publicity
Public relations is a tool used for building good relations with the company’s various publics by obtaining favourable publicity, developing a good corporate image and handling or heading off unfavourable rumours, stories and events. Publicity is unpaid communication by unidentified sponsor through non-personal media. It is also known as free advertising.
d) Personal Selling
Personal selling is an oral presentation in a conversation with one or more prospective purchasers for the purpose of making sales.
Merchandising refers to in-house promotion of products and services, which is usually accomplished by using table tents, posters, display items or brochures.
f) Direct mail
Direct mail is postal communication by an identified sponsor. Sometimes known as direct response promotion, it is one of the forms of direct selling.
Sponsorship is the material or financial support of some activity, usually sports or arts, with which the sponsor is not associated with in the business.
Although these promotional tools are effective in generating awareness of the company’s products or services, they are only part of the communication between the buyer and seller. This is because communication is more than just the promotional tools but covers the whole range of marketing mix in order to communicate effectively and efficiently with the existing and potential customers, as well as shareholders. Besides being attracted to discounts and such, customers also look into the price, quality and packaging of the products or service.
FACTORS IN SETTING THE PROMOTION MIX
When setting the promotion mix, communicators need to look into the following factors:
a) Type of product and market
The importance of the different promotional tools varies among customers. Furthermore, some products are more suitable to be using sales promotion rather than print advertising. For example, if a hotel is launching a new menu, giving out free samples is much easier to communicate the credibility of the product rather than through explanation on newspaper.
b) Push versus pull strategy
Push strategy: The company directs its marketing activities (personal selling and trade promotions) at channel members to induce them to order, carry and...