Promotion

PROMOTION

Introduction

• Promotion refers to all the activities undertaken to inform, persuade, and remind consumers about a product, service, or brand.
• It is a key element of the marketing mix (Product, Price, Place, Promotion – 4Ps).
• It acts as a communication bridge between the company and the consumer.
• Promotional activities aim to increase sales, build brand loyalty, and differentiate a product from competitors.

Importance of Promotion

• Creates Awareness: Helps customers become aware of a product or brand.
• Stimulates Demand: Encourages consumers to try or buy a product.
• Educates Consumers: Informs them about the product’s features, benefits, and usage.
• Builds Brand Image: Reinforces a positive perception of the brand.
• Supports Sales Force: Enhances the effectiveness of personal selling.
• Competitive Advantage: Helps firms stay ahead in competitive markets.
• Informs Intermediaries: Keeps retailers, wholesalers updated on new products or schemes.

Promotional Methods (Promotion Mix)

A. Advertising

• A paid form of non-personal communication through various media by an identified sponsor.
• It is useful for mass marketing and brand awareness.
• Media used: TV, radio, newspapers, magazines, social media, hoardings, etc.

B. Personal Selling

• Involves direct interaction between a sales representative and a prospective buyer.
• More personalized and persuasive than advertising.
• Used for complex or high-value products (e.g., cars, insurance).

C. Sales Promotion

• Short-term incentives to encourage purchase or sale of a product.
• Examples: Discounts, coupons, free samples, contests, loyalty programs.
• Aims to boost immediate sales.

D. Public Relations (PR)

• Creating and maintaining a favorable image of the company in the public eye.
• Includes press releases, sponsorships, community involvement.
• PR is often unpaid and non-personal.

Advertising

·       A paid, non-personal message communicated through mass media to promote a product, service, or idea.

Objectives

• Create brand awareness
• Promote new products
• Increase sales
• Build brand image
• Support sales team

Types of Advertising

• Product Advertising: Promotes a specific product.
• Institutional Advertising: Promotes the company’s image.
• Reminder Advertising: Reminds consumers about a brand.
• Comparative Advertising: Compares one brand with another.

Advertising Copy

·       The main message or content of an advertisement intended to inform, persuade, or remind.

Key Elements

• Headline: Captures attention.
• Sub-headline: Supports the headline.
• Body Text: Gives details about the product.
• Slogan/Tagline: Memorable phrase (e.g., “Just Do It” – Nike).
• Visuals: Pictures or graphics.
• Call to Action (CTA): Encourages action (e.g., "Buy Now").

Qualities of a Good Ad Copy

• Simple and clear
• Relevant to the target audience
• Attention-grabbing
• Persuasive and motivating
• Unique and creative

Evaluation of Advertising

·       To assess whether the ad campaign is achieving its objectives and providing a good return on investment.

Methods of Evaluation

• Pre-testing: Conducted before the ad is launched to predict effectiveness.
• Post-testing: Done after the ad has been released to measure actual impact.

Metrics Used

• Reach and frequency
• Sales data and revenue
• Brand recall and recognition
• Customer response and feedback
• ROI (Return on Investment)

Personal Selling

·       A form of face-to-face communication where a salesperson convinces a buyer to make a purchase.

Features

• Two-way interaction
• Immediate feedback
• Personalized communication
• Relationship-building

Steps in Personal Selling Process

1. Prospecting: Identifying potential customers.
2. Approach: Initial contact with the customer.
3. Presentation: Explaining product features and benefits.
4. Handling Objections: Resolving customer doubts.
5. Closing Sale: Gaining commitment to purchase.
6. Follow-up: Ensuring customer satisfaction post-sale.

Sales Promotion

·       Short-term incentives or tools designed to stimulate immediate sales or product trials.

Objectives

• Boost short-term sales
• Attract new customers
• Retain existing customers
• Encourage repeat purchases

Types of Sales Promotion

For Consumers:

• Coupons
• Price reductions
• Buy-one-get-one-free (BOGO)
• Free samples
• Contests and sweepstakes
• Loyalty programs

For Trade/Intermediaries:

• Dealer discounts
• Promotional allowances
• Gifts and incentives
• Display contests

Advantages of Sales Promotion

• Immediate sales boost
• Attracts attention
• Clears old inventory

Limitations

• Temporary effect
• May harm brand image if overused
• Encourages price sensitivity

Video Description

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