Meaning of Promotion
“What is Promotion?” Promotion is a marketing tool, used as a strategy to communicate between the sellers and buyers. Through this, the seller tries to influence and convince the buyers to buy their products or services. It assists in spreading the word about the product or services or company to the people. The company uses this process to improve its public image. This technique of marketing creates an interest in the mindset of the customers and can also retain them as a loyal customer.
Promotion is a fundamental component of the marketing mix, which has 4 Ps: product, price, place, and promotion. It is also an essential element promotional plan or mix, which includes advertising, self and sales promotion, direct marketing publicity, trade shows, events, etc.,
Some methods of this procedure contain an offer, coupon discounts, free sample distribution, trial offer, buy two items in the price of one, contest, festival discounts, etc. The promotion of a product is important to help companies improve their sales because customers reaction towards discounts and offers are impulsive. In other words, promotion is a marketing tool that involves enlightening the customers about the goods and services offered by an organization.
Also read: What are the planning process of marketing?
Types of Promotion:
It helps to outspread a word or awareness, promote any newly launched service, goods or an organization. The company uses advertising as a promotional tool as it reaches a mass of people in a few seconds. An advertisement is communicated through many traditional media such as radio, television, outdoor advertising, newspaper or social media. Other contemporary media that supports advertisement are social media, blogs, text messages, and websites.
It is that kind of advertising where the company directly communicates with its customers. This communication is usually done through various new approaches like email marketing, text messaging, websites, fliers, online adverts, promotional letters, catalog distributors, etc.
This utilizes all sorts of a marketing tool to communicate with the customers and increase sales. However, it is for a limited time, used to expand customers demand, refresh market demand and enhance product availability
It is a process where the enterprises send their agents directly to the customers to pitch for their product or service. Here, the response for the feedback of the customer is prompt and therefore, easy to build trust.
Popularly know as PR is exercised to broadcast the information or message between a company (NGO, Government agency, business), an individual or a public. A powerful PR campaign can be valuable to the company.
This includes almost all the elements of the promotion mix. Starting from the online promotion with pay per click advertising. Direct marketing by sending newsletters or emails.
Key Points of Promotion
- It is a communication tool that incorporates all the elements used to spread awareness and convince customers to buy good and services
- It is applicable only for short term sales
- It is one of the variables of the marketing mix
- The effect of promotion is short term
- The result or outcome of the promotion is immediate
- It is an economic marketing tool as compared to advertising
- It can be used for all sorts of businesses irrespective of the size, brand of a company
Also read: Important Business Studies question
|5-6 Marks Questions:
|Q.1 Explain the concept of Promotion Mix.
|Meaning of promotion mix
|Elements of the promotional mix
|These tools are in the form of-
(d) Sales Promotion.
|Q.2 What do you mean by sales promotion? What are the merits and demerits of sales promotion?
|Meaning of sales promotion
|It refers to short term incentives which are offered to the ultimate customers to encourage them to make immediate purchase of the product or service.
|Following are the merits of sales promotion:
|(b) Useful in new product launch
|(c) Synergy in total promotional efforts
|Following are the limitations of sales promotion:
|(a) Reflects crisis
|(b) Spoils product image
|3-4 Marks Questions:
|Q.1 (Hots): Identify the Sales Promotion Technique in Following Situations:
(I) Rs. 4,000 Waive on the New Cng Scooter.
(Ii) 50% Off on All Items During a Stock Clearance Sale.
(Iii) Free Mug With Horlicks.
(Iv) Free Sachet With Dove Soap.
(V) Buy Three Get One Free.
(Vi) Scratch a Card and Win the Car.
(III) Usable benefit.
(V) Quantity gift.
(VI) Instant Draws.
|Q.2 Explain the features of personal selling?
Features of personal selling:
|(a) Personal form
|(b) Two-way communication
|(c) Better response
|(e) Better convincing
|1 MARKS QUESTIONS
|Q.1 Identify the promotional tool of marketing mix which involves the oral presentation of message with one or more prospective customers for the purpose of making sales.
|Q.2 When the salesman should not lose his temper but should listen to the customers patiently. Explain this quality of salesman.
Many times, a salesman meets the customers of a different nature. They make irrelevant questions, waste a lot of time and buy nothing. Under such circumstances, the salesman should not lose his temper but should listen to the customers patiently.
|Q.3 Under which case- advertising or personal selling, cost per person reached is very high?
|Q.4 ‘You don’t close a sale; you open a relationship if you want to build a long-term successful enterprise.’ identify the communication tool used by the marketer.
The above mentioned is the concept, that is elucidated in detail about ‘What is Promotion?’ for the Commerce students. To know more, stay tuned to BYJU’S.
|Important Topics in Business Studies: