PROMOTION
Promotion is one of the
market mix elements, and a term used frequently in marketing. The specification
of five promotional mix or promotional plan. These elements are personal
selling, advertising, sales promotion, direct marketing, and publicity. A
promotional mix specifies how much attention to pay to each of the five
subcategories, and how much money to budget for each. A promotional plan can
have a wide range of objectives, including: sales increases, new product
acceptance, creation of brand equity, positioning, competitive retaliations, or
creation of a corporate image.
Fundamentally, however there are three
basic objectives of promotion. These are:
·
To present information to consumers as well as others.
·
To increase demand.
·
To differentiate a product.
The objectives of product promotion are to increase sales, attract
customers, improve product recognition and enhance brand identity. Product
promotion benefits businesses by generating consumer demand, and benefits consumers
by providing needed information about product availability and uses. Because of
intense competition, it is critical to plan an effective strategy before
initiating a promotion campaign. It is particularly important for small
businesses to utilize their limited resources effectively
There are different
ways to promote a product in different areas of media. Promoters use internet
advertisement, special events, endorsements, and newspapers to advertise their
product. Many times with the purchase of a product there is an incentive like
discounts, free items, or a contest. This is to increase the sales of a given
product.
The term "promotion" is
usually an "in" expression used internally by the marketing company,
but not normally to the public or the market - phrases like "special
offer" are more common. An example of a fully integrated, long-term,
large-scale promotion are My Coke Rewards and Pepsi Stuff. The UK version of My
Coke Rewards is Coke Zone.
Sales
Promotion
Sales promotion is one of the seven aspects of the
promotional mix. (The other six parts of the promotional mix are advertising,
personal selling, direct marketing, publicity/public relations, corporate image
and exhibitions.) Media and non-media marketing communication are employed for
a pre-determined, limited time to increase consumer demand, stimulate market
demand or improve product availability. Examples include contests, coupons,
freebies, loss leaders, point of purchase displays, premiums, prizes, product samples,
and rebates
Sales promotion can be directed at either the
customer, sales staff, or distribution channel members (such as retailers).
Sales promotions targeted at the consumer are called consumer sales promotions.
Sales promotions targeted at retailers and wholesale are called trade sales
promotions. Some sale promotions, particularly ones with unusual methods, are
considered gimmicks by many. Sales promotion includes several communications
activities that attempt to provide added value or incentives to consumers,
wholesalers, retailers, or other organizational customers to stimulate
immediate sales. These efforts can attempt to stimulate product interest,
trial, or purchase. Examples of devices used in sales promotion include
coupons, samples, premiums, point-of-purchase (POP) displays, contests,
rebates, and sweepstakes.
When your mechanic
sends you a coupon for a discount on an oil change, or your local coffee shop
rewards you with a free cup of coffee every tenth time you buy, you're seeing a
promotional program at work.
A promotion is a planned strategy for
increasing sales over a short period. A promotion adds value to the product or
service offered. It stimulates sales for reasons other than the product's
inherent benefits. We call those reasons incentives. Sometimes the incentive is
designed to specifically make a sale, as in "$2.00 off medium pizza with
this coupon." Other times the incentive is planned simply to expose the
customer to the product--to break down preliminary barriers that are roadblocks
to a future sale. With a promotional program, you can persuade people to try
your product, to experiment with new beliefs about your service; you can shift
buying habits so that light users find reasons to buy more.
Who
uses promotions? There are business-to-business promotional programs, and there
are consumer programs. We'll talk mainly about consumer programs. The concepts
we'll discuss are really about the same for both. Remember, people do business
with people. It's just a matter of what market you're trying to influence--end
users or intermediaries.
Different businesses are drawn to
different styles of promotion. The most frequent users of promotional programs
are the retail services, like car care, hair care, and restaurants. Coupons are
the most common promotion for these types of businesses; dry cleaners use
coupons extensively, and so do groceries. It's the ability to track results, as
well as their proven effectiveness, that makes coupon offers so popular.
In the business-to-business world,
suppliers frequently engage in promotions by offering sale prices. You are less
likely to see coupons here, because the patterns of purchasing are a little
different. The person making the decision to buy may not be the same person who
is writing the check, so requiring the physical coupon to be used would be an
unnecessary barrier to the desired sale.
Even the most large of
organizations offer their item, and for valid purpose. So what exactly is this
reason? As easy as it may audio, we need promotion to let individuals know
about a item. It need not be just a product; it can be a support, a residence,
and anything that can be marketed for cash. The key factor here is the point
that promotion is done about factors that are traded for real cash, and anyone
who wants to offer something wants to create some benefit on it, and that is
why promotion is done. Apart from the
apparent response that the signmakers do it, it is the big organizations and
organizations that put up the most symptoms in promotion. The greatest
objective of these organizations, of any organization, for that issue, is to
benefit.
The quantity that goes
into promotion is not a little one, so this should be apparent. They are in it
for the a longer period transport. By promotion, each item that they produce
goes out into the thoughts of the individuals who see the signboards and thus
improves the possibilities of the item's purchase. The way promotion is done is
just as essential as the act of promotion itself. If the promotion you see is
something crazy, or done in a way that you can keep in thoughts quickly, you
will go examine it out in a store for yourself, and if you do like it, you'll
buy it. So the promotion has been a achievements.
Advertising is a key
device in any item's lifestyle. Right from when an concept for a item is
believed of, and the choice is created to produce it extensive, the promotion
group starts its perform - considering and developing store symptoms,
automobile symptoms, signboards, promotion occasion banner ads relevant to the
item, and much more. Advertising is not restricted to items created by
organizations alone - you could promote if you're using a meeting in your
position, welcoming some superstar, beginning a store, beginning a purchase,
almost anything that the globe at large needs to know about can be promoted.
If you go further into
why we need promotion, the point that many individuals are actually based on
this very promotion to stay their lifestyle becomes another purpose for its
lifestyle. If promotion were to be eliminated, so many individuals or
individuals would become homeless; the quantity would be incredible to say the
least. The most well-known, and thus the most typical type of promotion is
using signboards. Threes a signboard basically everywhere you look - in all
designs, and in all colors. Technological innovation has created more and more
types of signboards available, but the conventional hand-painted indication
created by signmakers has not disappeared. Among the more recent types of performs
are LED symptoms, that promote using shiny lighting style, and are seen in all
locations around the globe, lighting style up the nightime with their lighting.
Vehicle symptoms and
signboards still stay among the top types of indication promotion, and the need
for these is ever existing. Since the expenses of large hoardings and other
such factors is quite great, most small-time companies and separate suppliers
choose the signboard way of promotion. Not only is it inexpensive, but it is
also more efficient - you can position several little signboards in several
locations instead of only one large holding on to, and for perhaps 50 percent
the price, accomplish the same outcome.
Promotions work because
people like something for nothing. They respond to two-for-one offers, and they
love a good deal or free extras with their purchases. Special promotions help
lots of businesses achieve their marketing objectives, such as combating
seasonal cycles or stealing attention from the competition.
Promotion Types
You can create promotions of any of the
following types:
a.
Product promotions
·
Percentage off per item
·
Fixed amount off per item
·
Fixed amount off for all
·
Buy X, get one or more items at a discount
·
Free gift with purchase
b.
Order promotions
·
Percentage off
·
Fixed amount off
·
Free gift with purchase
c.
Shipping promotions
·
Free shipping
·
Discounted shipping for an order using a selected ship mode
·
Discounted shipping for all items using a selected ship mode
·
Discounted shipping per item
using a selected ship mode
Present
Tense
§ These
elements are personal selling
§ These
elements are personal direct marketing
§ Promoters
use internet advertisement
§ The
person making the decision to buy
§ When
your mechanic sends you a coupon for a discount on an oil change
§ The
quantity that goes into promotion is not a little one
§ You
can create promotions
§ Who
wants to offer something wants to create some benefit
§ That
promote using shiny lighting style
§ There
are different ways to promote a product in different areas of media
Past
Tense
§ Sales
promotion can be directed at either
the customer
§ Technological
innovation has created more and more types of signboards available
§ Advertising
is not restricted to items created by organizations alone
§ Other
times the incentive is planned simply to expose the customer to the product
§ Wholesale
are called trade sales promotions
§ Sales
promotions targeted at retailers and wholesale are called trade sales
promotions
§ If
promotion were to be eliminated
§ The
conventional hand-painted indication created by signmakers has not disappeared.
§ The choice is
created to produce it extensive
- A purchase,
almost anything that the globe at large needs to know about can be
promoted.
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