Meaning of 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 the fundamental component of the market mix, which has four P’s: product, price, place, and promotion. It is also an essential element promotional plan or promotional mix, which includes advertising, self-promotion, 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. All these promotions help companies to 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.
Types of Promotion:
- Advertising- 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 to 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.
- Direct Promotion- 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, catalogue distributors etc.
- Sales Promotion-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
- Self-promotion-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.
- Public Relation- 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.
- Online Promotion-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 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
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.