Category : Banking
Promotion
Promotion is one of the primary elements used in the marketing mix. As a key marketing element, promotion comprises communication tactics used to educate consumers, increase demand and differentiate brands.
"Promotion is the means by which firms attempt to inform, persuade and remind consumers-directly or indirectly about the products and brands they sell."
- Kotler and Keller
Promotion Mix
Promotion mix is a specific combination of promotional methods used for one product or a family of products. In other words, promotion mix refers to combination of promotional tools used by an organization to achieve its communication objectives
The main elements of promotion mix are
Advertising communicates a message to a targeted a audience and generates feedback in the form of a sale.
Marketing impacts personal selling and improves the selling environment by increasing exposure to potential customers.
It stimulates market demand, product availability and coordinates public selling, advertising and public relations.
It is the management of a message between an individual or organization and the public.
It is versatile, far-reaching, fast, inexpensive, fosters brand awareness and can improve customer service.
It goes direct to customer via telephone, mail, fax, etc.
Sales Promotion
Sales promotion is one level or type of marketing, aimed either at the consumer or at the distribution channel (in the form to sales-incentives). It is used to introduce new product, clear out inventories, and attract traffic and to increase sales temporarily.
The sales promotion targeted at the consumer is called consumer sales promotion, the sales promotion targeted at the retailers and wholesalers is called trade sales promotion.
Some of the objectives of sales promotion are listed below
Sales promotion activities inform the potential buyers about the availability, features, use, etc. of the product. Thus, it offers additional support to promotional activities like advertising, publicity and personal selling.
Sales promotion activities aim at arousing customer's interest in the products and persuading them to buy them.
The sales promotion schemes are a big help in boosting off-season sales and also in tempting the buyers to make quick decisions to purchase.
The main objective of sales promotional activities is to offer promotional support to retailers. Incentive schemes help product in getting shelf-space for them in new retail outlets.
Under Sales Promotion Programme, product identity is established by offering additional features and incentives for that particular product. This helps in building consumer's preference for the specific products and brands.
Characteristics of sales promotion are as follows
This is the degree to which the consumer perceives the promotion as being desirable.
A promotion which has no relationship with the product is less likely to appeal to customers.
If the promotional gift or discount will not arrive for some time, it is less attractive.
High-value promotions work better than low-value ones, but it is the value as perceived by the customer which is important.
Difference between Advertising and Sales Promotion
Basis |
Advertising |
Sales Promotion |
Objectives |
Objective of advertising is to create a favourable consideration for the product |
Objective of the sales promotion is to stimulate the consumers to buy the product. |
Effect |
It has a long-term effect. |
It has a short-term effect and useful for increasing immediate sales. |
Nature |
Advertising is recurring is nature. |
It is non-recurring and one time communication process. |
Price |
Expensive in most cases. |
Not very expensive ion most cases. |
Suitable for |
Medium to large companies. |
Small to large companies. |
Sales |
Assumption that it will lead to sales. |
Directly related to sales. |
Purpose |
Increase sales, brand building. |
Increase sales. |
Example |
Giving an advertisement in the newspaper about the major products of a company. |
Giving free products, coupons, etc. |
Tit-Bits
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