Question

What is promotion and promotion mix? What are the components of promotion mix? Explain briefly.

Answer 1

Promotion:

• Promotion is an important part of marketing mix.
• An important function of promotion is to provide information regarding new product to the existing and the potential consumers.
• In this process, the producer attempts to convert existing customers as well as potential customers to purchase the products.
• Thus, promotion aims at creating awareness, attracting customers, increasing demand and motivating people to purchase.

Components of promotion (or promotion mix):

• Promotion mix is a group of tools to create awareness about the product and services among consumers so that they can be attracted and motivated to purchase.
• The four main components or tools are:
  1. Advertisement,
  2. Personal selling,
  3. Sales promotion and
  4. Publicity.
• Business firms use these tools in different extents to lure the consumers.
• Which component to use in which manner and quantity is determined after considering factors such as attitude of consumer for purchase of product, nature of product, price of product, etc.

1. Advertisement:

• An advertisement is a paid form of non-personal information of goods and services in which advertiser’s identity is easily traced.
• Producers use different medium of advertisement to promote their product and service in the market.
• Advertisement is considered as the most important, famous and acceptable tool of promotion.
• The advertisement works as boon for products which are low in demand.
• Advertising can be done through TV, radio, mobile phones, dailies, magazines, internet, etc.

2. Personal selling:

• Although advertisement conveys the information of the product of a business unit to the consumer but still sometimes, it may not generate desired sales. Under such situations, the marketing manager takes help of the next component of promotion mix known as personal selling.
• In personal selling, the seller (or sales man/sales executive/sales manager) directs and explains about the product to the prospective consumer.
• Personal selling helps the seller to develop a rapport with the potential consumer. At the same time, the consumer develops a faith in the seller.
• The seller helps the consumer to clear his doubts regarding the product and assure him to extend his support in case of any problem with the product in the future.
• A big advantage of personal selling is that it not only creates awareness about the product but also creates a preference for the product. Moreover, it tries to develop faith of customer in the seller and the company. As a result, chances of sales increase.

3. Sales promotion:

• The process of persuading a potential customer to buy the product is called sales promotion.
• According to Kotler, “Sales promotions are short-term incentives that encourage the customer to buy the product or service.”
• Sales promotion has quick effects on customers.
• Sales promotion is an important component of promotion mix which when applied with advertisement and personal selling, increases the chances of sale quite drastically.
• Advertisement and personal selling mainly give information about the product while sales promotion gives prompt reason to buy the product.
• A variety of techniques are used for promoting the sale. Some of them are offering discounts, sale, gifts, coupons, etc.
• Sales promotion quickly attracts the customers and results into sales.

4. Publicity:

• Any form of non-personal presentation of goods, services or ideas done through public media which is free of charge is known as publicity. The business firm does not need to pay any charge for this form of publicity. Sometimes it is also considered as a part of public relations.
• Publicity is done by addressing public or giving a presentation or an interview in newspaper or on radio or on T.V channel, giving donation, getting the office or showroom inaugurated by a film star or a cricketer, to attract people, etc.