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PROMOTIONAL MIX
BUSINESS STUDIESMARKETING MANAGEMENT
PRINCIPLES OF MARKETING
vMEANING OF PROMOTION MIX
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IN MARKETING,THE PROMOTIONAL MIX DESCRIBES A BLEND OF PROMOTIONAL VARIABLES
CHOSEN BY MARKETERS TO HELP A FIRM REACH ITS GOALS.
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THE PROMOTIONAL MIX IS A TERM USED TO DESCRIBE THE SETS OF TOOLS THAT A
BUSINESS CAN USE TO EFFECTIVELY COMMUNICATE THE BENEFITS OF ITS PRODUCTS OR
SERVICES TO ITS CUSTOMERS.
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DEFINITION OF PROMOTION
• ACCORDING TO
PHILIP KOTLER,” PROMOTION COMPASSES ALL THE TOOLS IN THE MARKETING MIX WHOSE
MAJOR ROLE IS PERSUASIVE COMMUNICATIONS.
• ACCORDING TO
STANSON,” PROMOTION INCLUDES ADVERTISING,PERSONAL SELLING,SALES PROMOTION AND
OTHER SELLING TOOLS
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PURPOSE/OBJECTIVE/NEED OF PROMOTION
1.
COMMUNICATION OF MARKETING INFORMATION TO CONSUMERS,USERS AND SELLERS
2.
PERSUADES AND CONVINCES THE BUYER AND INFLUENCE THE BEHAVIOR TO TAKE THE
DESIRED ACTION
3.
ACT AS POWERFUL TOOLS OF
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IMPORTANCE
1.
IT IS PERSUASIVE COMMUNICATION TO INFORM THE POTENTIAL CUSTOMERS OF THE
EXISTENCE OF THE PRODUCT AND STIMULATE THE DEMAND
2.
COMMUNICATES THE BENEFITS TO THE CONSUMER WHO BUY A BUNDLE OF EXPECTATION TO
SATISFY THEIR ECONOMICS,PSYCHO-SOCIAL WANTS AND DESIRES
3.
IT IS TOOL OF COMPETITION AND A FORM
OF NON PRICE
COMPONENT OF PROMOTION MIX:-
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COMPONENTS OF PROMOTIONAL TOOLS
1. ADVERTISING
2.
PUBLIC RELATION OR PUBLICITY
3.
SALES PROMOTION
4.
DIRECT MARKETING
5.
PERSONAL SELLING
vMEANING OF
ADVERTISING
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DERIVED FROM THE ORIGINAL LATIN WORD “ADVERTERE” WHICH MEANS TO TURN THE
ATTENTION. EVERY PIECE OF ADVERTISING TURNS THE ATTENTION OF THE
READERS/LISTENERS OR THE VIEWERS/OR THE ON LOOKERS TOWARDS A PRODUCT OR SERVICE
OR AN IDEA.
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IT CAN BE SAID THAT TURNS THE ATTENTION TO AN ARTICLE OR A SERVICE OR AN
IDEA MIGHT WELL BE CONCERNING AN IDEA MIGHT WELL BE CALLED ADVERTISING.
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AMERICAN MARKETING ASSOCIATIONS:-ANY PAID FORM
OF NON PERSONAL PRESENTATION OF
IDEAS,GOODS,OR SERVICES BY AN IDENTIFIED SPOPSOR.
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ROLE OF ADVERTISING
1.
KEY FACTOR IN THE PROMOTION MIX WHICH CONTRIBUTES TO BRAND BUILDING AND HOW THE MARKET PERCEIVE
THE COMPANY
2.
WIDE REACHING OF
3.
GOOD ADVERTISING CAN BUILD A SOLID BRAND FOR THE COMPANY OR VICE VERSA
vPERSONAL SELLING
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PERSONAL SELLING OCCURS WHEN A SALE REPRESENTATIVE MEETS WITH POTENTIAL
CLIENT FOR THE PURPOSE OF TRANSACTING A SALE. GENERATES DIRECT CONTACT BUT
EXPENSIVE METHOD.
• PERSONAL SELLING CAN BE DEFINED AS THE PROCESS
OF PERSON TO PERSON COMMUNICATION BETWEEN A SALES PERSON AND A PROSPECTIVE
CUSTOMER,IN WHICH THE FORMER LEARNS ABOUT THE CUSTOMER’S NEEDS AND SEEKS TO
SATISFY THOSE NEEDS BY OFFERING THE CUSTOMERS THE OPPORTUNITY TO BUY SOME THING
OF VALUE SUCH AS GOODS AND SERVICES.
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PERSONAL SELLING IS ALSO KNOWN AS FACE TO FACE SELLING IN WHICH ONE PERSON
WHO IS THE SALESMAN TRIES TO CONVINCE THE CUSTOMER IN BUYING A PRODUCT. IT IS
PROMOTIONAL METHOD BY WHICH THE SALES PRSON USES HIS OR HER SKILL AND ABILITIES
IN AN ATTEMPT TO MAKE A SALE.
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IT IS ONE OF THE ELEMENTS OF PROMOTIONAL MIX. SALES PROMOTION USES BOTH
MEDIA AND NON MEDIA MARKETING COMMUNICATIONS FOR STIMULATING THE DEMAND.
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SALES PROMOTION IS A TYPE OF PULL MARKETING TECHNIQUE WHICH AIMED AT
PERSUADING A POTENTIAL CUSTOMER TO BUY
THE PRODUCT.
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SALES PROMOTION TARGETED AT THE CONSUMER ARE CALLED CONSUMER SALES PROMOTION
AND SALES PROMOTION TARGETED AT THE RETAILERS AND WHOLESALE ARE CALLED TRADE
SALES PROMOTION
• SALES PROMOTION MEANS ANY STEPS THAT ARE TAKEN
FOR THE PURPOSE OF OBTAINING OR INCREASING SALES.
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DIRECT MARKETING
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IS A PROMOTIONAL METHOD THAT INVOLVES PRESENTING INFORMATION ABOUT THE
COMPANY,PRODUCT OR SERVICE TO THE TARGET CUSTOMERS WITHOUT THE USE OF AN
ADVERTISING MIDDLEMAN.
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COMMON FORM OF DIRECT MARKETING INCLUDE:-
1.
BROCHURES
2.
CATALOGS
3.
FLIERS
4.
NEWSLETTERS
5.
POST CARD
6.
EMAILS,CELLPHONE TEXT MESSAGING,WEBSITES ETC
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PUBLIC RELATIONS AND PUBLICITY
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PUBLIC RELATION ENABLE A COMPANY TO INFLUENCE THE TARGET MARKET BY CREATING A FAVORABLE IMAGE OF THE ORGANIZATION.PUBLIC RELATION IS THE MGMT OF
RELATIONSHIP AND COMMUNICATION TO ESTABLISH GOOD WILL AND MUTUAL UNDERSTANDING
BETWEEN AN ORGANIZATION AND PUBLIC. PUBLIC RELATION ACTIVITIES INCLUDE
PUBLICITY,CORPORATE ADVERTISING,SEMINARS,PUBLICATIONS/LOBBYING AND CHARITABLE
DONATIONS. A MAJOR ELEMENTS OF PUBLIC RELATION IS PUBLICITY AND IT IMPLIES
COMMUNICATION ABOUT A PRODUCT OR ORGANIZATION BY THE PLACING OF NEWS ABOUT IN
THE MEDIA BY PAYING OR NOT PAYING.
• FACTORS INFLUENCING PROMOTION MIX
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FACTORS INFLUENCING PROMOTION MIX
1.
NATURE OF THE PRODUCT:- DIFFERENT TYPE OF PRODUCT REQUIRE DIFFERENT
PROMOTIONAL TOOLS. PERSONAL SELLING IS REQUIRED
FOR INDUSTRIAL PRODUCTS WHERE PRE AND AFTER SALE SERVICES IS REQUIRED TO
SELL AND INSTALL SUCH PRODUCTS. ADVERTISING FOR CONSUMER GOODS.
2.
NATURE OF MARKET:-PERSONAL SELLING IS APPROPRIATE WHERE THE SMALL NUMBER OF
POTENTIALLY CUSTOMERS ARE CONCENTRATED IN PARTICULAR AREA. ADVERTISING AND
SALES PROMOTION .PERSONAL SELLING WHERE THE CONSUMER BASE IS LARGE AND
GEOGRAPHICALLY SPREAD.
3.
AVAILABILITY OF FUNDS:-THE MARKETING BUDGET ALSO INFLUENCE. IF LOTS OF FUNDS
ARE AVAILABLE THEN BLEND OF PROMOTION MIX IS USED BUT IN CASE OF LIMITED FUND
THEN CHOOSE APPROPRIATE STRATEGY.
4.
STAGES OF PRODUCT LIFE CYCLE:-IN THE INTRODUCTION THE FOCUS IS TO CREATE
AWARENESS MORE STRESS ON ADVERTISING AND PUBLICITY AND IN THE MATURITY
ADVERTISING AND PERSONAL SELLING AND IN DECLINE STAGE THE MORE STRESS IS ON
SALES PROMOTION
5.
NATURE OF TECHNIQUE:-ADVERTISING IS IMPERSONAL MODE OF COMMUNICATION,
PERSONAL SELLING IS FACE TO FACE, SALES PROMOTION SHORT TERM INCENTIVES.
6.
PROMOTIONAL STRATEGY:-PUSH OR PULL STRATEGY. PUSH STRATEGY THE MANUFACTURING
FORCES THE DEALERS TO CARRY THE PRODUCT AND PROMOTE THE PRODUCT . HERE PERSONAL SELLING AND TRADE
PROMOTION.BUT PULL STRATEGY CONSUMER ASK THE DEALERS TO CARRY OUT THE PRODUCT.
ADVERTISING AND SALES PROMOTION ARE APPROPRIATE.
7.
READINESS OF BUYERS:-DIFFERENT PROMOTIONAL TOOLS ARE REQUIRED AT DIFFERENT
STAGES OF READINESS
1.
COMPREHENSION STAGE:
ADVERTISING AND PERSONAL SELLING
2.
CONVICTION
STAGE:-PERSONAL SELLING IS MORE APPROPRIATE
3.
SALE CLOSURE:- SALE
PROMOTION AND PERSONAL SELLING
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