promotion mix (2)

8/7/2019 Promotion mix (2)

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INTRODUCTION

Now a days with so much so many companies in the market the

customers dont know what products and services the company

provide, then the business will not survive in todays competitive

marketplace. Effective communication with the customers is vital

to ensure that the business generates sales and profits.

By taking the time to develop and implement an appropriate

promotional mix, the company will stimulate the target audience

to buy the products or services and manage this within a budget

the company can afford. So promoting a product in the market is

becoming more and more important. So keeping the point of

promoting a product the role of promotion mix comes into play

in marketing management.

Promotion is one of the four elements of marketing mix (product,

price, promotion, distribution). It is the communication link

between sellers and buyers for the purpose of influencing,

informing, or persuading a potential buyer's purchasing decision.MEANING OF PROMOTION MIX

The promotional mix is a term used to describe the set of tools that a

business can use to communicate effectively the benefits of its products or

The following are two types of Promotion:

Above the line promotion: Promotion in the media (e.g. TV, radio,newspapers, Internet, Mobile Phones, and, historically, illustrated songs) in

which the advertiser pays an advertising agency to place the ad. Below the line promotion: All other promotion. Much of this is intended tobe subtle enough for the consumer to be unaware that promotion is taking

place. E.g. sponsorship, product placement, endorsements, salespromotion, merchandising, direct mail, personal selling, public relations,trade shows.


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OBECTIVE OF PROMOTION MIX

Promotion has several possible objectives and many pieces of marketing

promotion aim to achieve several of the following objectives at the same

time:

Inform:Management may need to make their audience aware that their

product exists, and to explain exactly what it does. This is a particularly

important objective for new products.

Persuade:An important stage in creating favourable attitudes towards

the business and its brands. Through persuasive promotion, management

will seek to persuade customers and the trade that their brand has benefits

that are superior to competitors.

Image creation:Sometimes, promoting a brand image is the only wayto create differentiation in the mind of the consumer (e.g. lage r

advertising).

Reassurance: Much promotion (particularly advertising) is about

reassuring customers that they have made the right choice and

encouraging them to stay loyal to a brand.


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STEPS FOR SETTING A GOOD PROMOTION MIX

A successful promotional mix uses a balance of its five tools in a planned

and structured way a single tool rarely works well in isolation. The

challenge is to select the right mix of promotional activities to suit the

particular business at a particular time and to then use it correctly to

achieve a result. The combination of tools the company use will depend on

the target audience, the message the company wish to communicate and

the budget the company make available. There would be little point in

advertising new gas boilers in a fashion magazine much more appropriate

to advertise in a trade magazine for builders and gas fitters:

1. Decide how the products and services the company provide can be

packaged together. The image of the business is formed by the way the

company promote the elements of the marketing mix the products,

prices and the places through which the company sell. It is often helpful to

think about promoting the business as opposed to a single product or

service.

2. Develop a profile of the target audience for the message the company

will communicate. Who is the target audience? This goes beyond a simple

customer list. Is it consumers, businesses or members of the channel (such

as distributors) the company are using to get the product to the end

customer? Is it the wider stakeholder audience?

3. Decide on the message to use. Are the company trying to differentiate,

remind, inform or persuade? Set an objective for what should beachieved. Be clear about the benefits that the company want to promote.

4. Decide what image of the product/service/business the company want

the audience to retain.


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5. Decide on a budget. This is often how much the company can afford

given projected sales for the product or service.

6. Decide how the message should be delivered. To help the company todecide what aspects of the promotional mix to use, think about taking the

customers on a journey that starts by creating awareness about the

business, through obtaining information about the products and services

the company provide, and ends by generating a sale.

7. Decide what actions the company want the audience to take as a result

of receiving the communication. It isnt always place an order.

8. Put in place a means of measuring and controlling the plan once it is

developed. Who will be responsible for dealing with the agency or media?

Who will be responsible for checking that promotional activity happens as

planned?

9. Undertake the promotional plan. Be consistent in what the company

say and how the company say it.

10. Measure what the company have achieved against the original

objectives that the company set.


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TOOLS OF O OT ON

To

promotiona mix ff ctively, e need to e eac of the five

tools andhowthe company couldusethemto achievetheobjectives.

AdvertisingPresentation and promotionof ideas,

oods,or services

by an identified sponsor. xamples:Print ads, radio, television,billboard,

direct mail, brochures and catalogs, signs, in-store displays, posters,

motion pictures,

eb pages,banner ads, andemails.

There arethreemain reasons for advertising

To provide the target audience with information (creating

awareness)

To persuadethemtobuy fromthe company (by promoting product and

company benefits)

To reinforcetheexistence (by consistently repeating eymessages)

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Research shows that people need to see an advertisement at least seven

times before it starts to mean anything to them. So, to be effective,

advertising needs to be conducted regularly in a consistent and

recognisable manner. It can therefore be quite costly. Typical advertising

media include Yellow Pages, local newspapers, radio, trade journals,exhibitions and websites. It is also difficult to assess how much business is

achieved through paid-for advertising unless the company include some

form of monitoring scheme (such as a discount voucher) within the

advertisement.

PublicRelations Publicity is something that happens to a companyand the result may be good or bad. Public relations (or PR) involve a

sustained attempt to develop the reputation as a business by using the

media to help create the image the company desire. It is a way of keeping

the business in the customers eyes. News or press releases can be

distributed to the media to announce, for example, new product launches,

a change in opening times or company successes. Articles can be

distributed to trade journals or local newspapers, and sponsorship or

charitable donations can help to position the business more prominently in

the market place than the competitors. Attendance at exhibitions and

seminars can also help to promote the image of the business to a chosen

target audience.

Sales promotionThis activity is best described as a specific, usually

short-term, promotion that is over and above what the company would

normally provide to the customer (e.g. buy one, get one free).

When used effectively, sales promotions can help to move old stock,

counteract competitor activity, merchandise new products, encourage

repeat buying and motivate the staff. They can also be monitored, so the

success of a particular sales promotion can be measured over time.

Sales promotions are a good way of attracting new customers. However,

on their own they are unlikely to build customer loyalty or change their

longer term buying habits. The type of promotion selected also has to be

relevant to the target customers as well as to the own marketing

objectives.


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Direct marketing Direct marketing s an increasingly popular

technique as it enables the company to target specific customer groups

very accurately. It is a flexible way to deliver the message and, because

each letter can be personalised, the chances of a response are great ly

improved. The overall success of a campaign can also be directly measured

in terms of the number of responses received.

The company can collect information on customers and use this to build up

the own in- house database. Although this can be time-consuming, the

information gathered will be accurate and relevant to the company, and

can be relatively easily kept up to date.

Personal selling

This is the most effective form of promotion

because it allows the approach to be tailored to the needs of an individual

customer. Getting a sale is ultimately extremely important, but the process

involves a lot more than this. It is about having a constructive dialogue

with customers to listen to their needs, promote product & company

benefits on an individual basis, answer any questions, resolve any

problems and get their feedback before clinching a sale.

ADDOPTING THE PUSH AND PU

STRATEGY

Communication by the manufacturer is not only directed towards

consumers to create demand.

A push strategy is where the manufacturer concentrates some of their

marketing effort on promoting their product to retailers to convince them

to stock the product. A combination of promotional mix strategies are

used at this stage aimed at the retailer including personal selling, and

direct mail. The product is pushed onto the retailer, hence the name.

A pull strategy is based around the manufacturer promoting their product

amongst the target market to create demand. Consumers pull the product

through the distribution channel forcing the wholesaler and retailer to

stock it, hence the name pull strategy. Organisations tend to use both push

and pull strategies to create demand from retailers and consumers.


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MY SUGGESTION ABOUT PROMOTION MIX

If a product is not sold in the market, then all the efforts and labour

done in producing, packing and in other fields that lead the product

into the point of making it saleable yields no result. Thus it is seemthat the promotion of a product or all the ingredients that make up

for a good product mix, is the most important thing leading to

revenue earning capacity of a company. So, an individual, be it a

student, an employee, the employer, mangers and salesmen should

try their optimum to obey and put into practice the above mentioned

details for making a company not only a good manufacturer but also

a very good seller and let the company earn its deserving revenues so

that all the toil and labour put into the product by every individual of

the organisation in a whole doesnt go into the waste box.

CONC USION

From the above discussion it can be concluded that a the promotion

mix is one of the most important aspect of marketing management

and with the adoption of a good strategy of promotion mix the sale

volume of a company can be increased. With a better strategy of

promotion mix the company can reach the targeted customer and can

be very useful in marketing of the product.


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REFERRENCE

Principle Of Marketing Management- By-Philip Kotler Marketing Management- By-Sotanki Analysis Of The Market By -Peter Drucker How 2 Achive an Effective Promotion

Mix By-Chartered Institute of marketing

Websites:

www.wikipedia.com www.studymarket.org www.marketanalysis.com


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promotion mix (2)

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