Promotion is tool
with which public will be informed about the availability of a particular
product or service and the uses of such product. Production decides
the increase in demand for a product, promotion will make the prospective
buyers to know about the want, satisfying characteristics of the product,
its price and place of availability. This term includes advertisement,
personal selling sales promotion and other selling tools which are increasing
the sales volume.
is different promotion, Sales promotion refers to those marketing activities
other than personal selling, advertisement and publicity, which stimulate
consumer purchasing and dealer effectiveness, such as displays, shows
and expositions, demonstrations and various non-recurrent selling efforts
not in the ordinary routine. Its purpose is to increase the desire of
salesman, distributors and dealers to sell a certain brand and to make
consumers more eager to buy that brand. This includes sales activities
which supplement both personal selling and advertising.
is only a part of promotion. Promotion includes sales promotion, advertising,
personal selling etc. Promotion helps to make all other marketing activities
more effective and efficient, but sales promotion helps only to sales
activity. Sales promotion may be done with the help of tools like displays,
exhibitions, free sample coupons, premium etc. Sales promotion acts
as a link between advertisement and personal selling.
To sum up, promotion
is to make the demand inelastic, while there is change in the price.
So promotion must stimulate the consumers to buy more.
involves, sharing of meaning, information, concepts, about the products
and services by buyers and sellers. Such communications are conveyed
with the help of advertisement, salesmanship and sales promotion. A
communication will be treated as effective only when it is properly
responded by the buyer. The communication must have identical meaning
for both sender and receiver. If the communication does not properly
reach the receiver or the message received is not the same as the message
sent, then that will be called Break down at the message stage. In the
market communication, feed back means a response, a reaction over the
message sent back by a customer to the sender. In the case of effective
communication feed back will be always present.
Need for Product
a) To introduce
a new product in the market.
b) To influence the public with the help of new uses of the product.
c) To increase the frequency of purchase by each buyer.
d) To encourage dealers to stock more goods.
e) To withstand in the competitive field.
f) To increase the sales by imparting special training to salesmen and
by window display.
Effects of Promotion
1. The present day
market is very competitive due to the large number of rivals and substitutes.
With the help of promotion producer must create product differentiation
in the minds of consumers.
2. Promotion is very essential to communicate the use of the product
and the nature of the product to consumers and middlemen
3. Nowadays most of the consumers market their products in wider area
and the consumers are also very large in number. In such cases personal
selling alone cannot be used and so all the steps for promotion are
to be followed.
4. During the periods of depression it is essential to maintain at least
some minimum market. Therefore it is very essential to use promotion.
1. Deciding Promotional
advertisement and sales promotion are some of the promotional methods.
During most of the situations two or more promotional methods are to
be used for each campaign. Generally with the help of a single method
it is not possible to succeed. Advertising needs the support of personal
selling or display to increase the sales. Sometimes even the personal
selling alone cannot be successful without the support of advertisement.
An ideal promotion
mix is that situation where the total expenditure incurred for various
promotion methods is minimum and sales by such mix is maximum. Promotion
mix means finding out the proper ratio of usage of different methods
of promotion. The management must find out, how much amount should be
spent on each promotional activity. Promotional mix is influenced by
the following factors.
(a) Nature of
Nature of the product
will be decide the promotional mix. For consumer goods advertisement
and dealer display will have more effect. Industrial goods with high
technology will need much of personal selling and cosmetics, blades
etc, will require more of advertisement than personal selling and displays
(b) Nature of
If the communications
are mostly to middlemen, then personal selling will be more effective
and very little spending on advertisement will do. If information are
to be passed to consumers and when the number of consumers is large,
it is better to advertise. Especially if customers are scattered, then
advertisement alone can be successful.
(c) Nature of
If market for a
product is only local then personal selling alone will be sufficient.
If the market for a product is available at national level, then advertisement
is more suitable.
The amount of funds
available for promotion will decide the promotional mix. The companies
having huge funds for promotion will favor advertisement and try to
cover wider market. If the funds are available are less than maximum
portion of such funds will be allocated for personal selling in a limited
area. These funds may be used for window display also.