The promotion mix or element of marketing mix is concerned with activities that are commenced to communicate with customers and distribution channels to enhance the sales of the firm.
Table of Content
Elements of Promotion Mix
These elements of promotion mix activities mainly includes:
- Advertising
- Direct marketing
- Sales Promotion
- Personal selling
- Publicity
- Public Relations
Advertising
Advertising is defined as any paid form of non-personal communication about an organization, product, service, or idea by an identified sponsor.
Advertising is defined as any paid form of non-personal communication about an organization, product, service, or idea by an identified sponsor.32 The paid aspect of this definition reflects the fact that the space or time for an advertising message generally must be bought. An occasional exception to this is the public service announcement (PSA), whose advertising space or time is donated by the media.
The non-personal component means that advertising involves mass media (e.g., TV, radio, magazines, newspapers) that can transmit a message to large groups of individuals, often at the same time. The non-personal nature of advertising means that there is generally no opportunity for immediate feedback from the message recipient (except in direct-response advertising).
Therefore, before the message is sent, the advertiser must consider how the audience will interpret and respond to it. Advertising is the best-known and most widely discussed form of promotion, probably because of its pervasiveness.
It is also a very important promotional tool, particularly for companies whose products and services are targeted at mass consumer markets such as automobile manufacturers, packaged goods, and drug companies.
Advertising is also used extensively by companies who compete in the business and professional markets to reach current and potential customers. For example, business-to-business marketers use advertising to perform important functions such as building awareness of the company and its products, generating leads for the sales force, and reassuring customers about the purchase they have made.
Direct Marketing
One of the fastest-growing sectors of the U.S. economy is direct marketing, in which organizations communicate directly with target customers to generate a response and/or a transaction. Traditionally, direct marketing has not been considered an element of the promotional mix.
However, because it has become such an integral part of the IMC program of many organizations and often involves separate objectives, budgets, and strategies, we view direct marketing as a component of the promotional mix.
Direct marketing is much more than direct mail and mail-order catalogs. It involves a variety of activities, including database management, direct selling, telemarketing, and direct-response ads through direct mail, the Internet, and various broadcast and print media. Some companies, such as Tupperware, Discovery Toys, and Amway, do not use any other distribution channels, relying on independent contractors to sell their products directly to consumers.
Direct marketing plays a big role in the integrated marketing communications programs of consumer-product companies and business-to-business marketers. These companies spend large amounts of money each year developing and maintaining databases containing the addresses and/or phone numbers of present and prospective customers.
They use telemarketing to call customers directly and attempt to sell them products and services or qualify them as sales leads. Marketers also send out direct mail pieces ranging from simple letters and flyers to detailed brochures, catalogs, and videotapes to give potential customers information about their products or services. Direct-marketing techniques are also used to distribute product samples.
Sales Promotion
The next variable in the promotional mix is sales promotion, which is generally defined as those marketing activities that provide extra value or incentives to the sales force, the distributors, or the ultimate consumer and can stimulate immediate sales.
Sales promotion is generally broken into two major categories:
- Consumer-oriented
- Trade oriented activities
Consumer-oriented sales promotion is targeted to the ultimate user of a product or service and includes couponing, sampling, premiums, rebates, contests, sweepstakes, and various point-of-purchase materials. These promotional tools encourage consumers to make an immediate purchase and thus can stimulate short-term sales.
Trade-oriented sales promotion is targeted toward marketing intermediaries such as wholesalers, distributors, and retailers. Promotional and merchandising allowances, price deals, sales contests, and trade shows are some of the promotional tools used to encourage the trade to stock and promote a company’s products.
Promotion and sales promotion are two terms that often create confusion in the advertising and marketing fields. As noted, promotion is an element of marketing by which firms communicate with their customers; it includes all the promotional mix elements we have just discussed. However, many marketing and advertising practitioners use the term more narrowly to refer to sales promotion activities to either consumers or the trade (retailers, wholesalers).
Personal Selling
The final element of an organization’s promotional mix is personal selling, a form of person-to-person communication in which a seller attempts to assist and/or persuade prospective buyers to purchase the company’s product or service or to act on an idea.
Unlike advertising, personal selling involves direct contact between buyer and seller, either face-to-face or through some form of telecommunications such as telephone sales. This interaction gives the marketer communication flexibility; the seller can see or hear the potential buyer’s reactions and modify the message accordingly.
The personal, individualized communication in personal selling allows the seller to tailor the message to the customer’s specific needs or situation. Personal selling also involves more immediate and precise feedback because the impact of the sales presentation can generally be assessed from the customer’s reactions.
If the feedback is unfavorable, the salesperson can modify the message. Personal selling efforts can also be targeted to specific markets and customer types that are the best prospects for the company’s product or service. The various promotional mix elements are the major tools that marketers use to communicate with current and/or prospective customers as well as other relevant audiences.
Another important component of an organization’s promotional mix is publicity/ public relations.
Publicity
Publicity refers to nonpersonal communications regarding an organization, product, service, or idea not directly paid for or run under identified sponsorship. It usually comes in the form of a news story, editorial, or announcement about an organization and/or its products and services.
Like advertising, publicity involves non-personal communication to a mass audience, but unlike advertising, publicity is not directly paid for by the company. The company or organization attempts to get the media to cover or run a favorable story on a product, service, cause, or event to affect awareness, knowledge, opinions, and/or behavior. Techniques used to gain publicity include news releases, press conferences, feature articles, photographs, films, and videotapes.
An advantage of publicity over other forms of promotion is its credibility. Consumers generally tend to be less skeptical toward favourable information about a product or service when it comes from a source they perceive as unbiased.
Public Relations
It is important to recognize the distinction between publicity and public relations. When an organization systematically plans and distributes information in an attempt to control and manage its image and the nature of the publicity it receives, it is really engaging in a function known as public relations.
Public relations is defined as “the management function which evaluates public attitudes, identifies the policies and procedures of an individual or organization with the public interest, and executes a program of action to earn public understanding and acceptance.”
Public relations generally has a broader objective than publicity, as its purpose is to establish and maintain a positive image of the company among its various publics. Public relations uses publicity and a variety of other tools – including special publications, participation in community activities, fund-raising, sponsorship of special events, and various public affairs activities – to enhance an organization’s image.
Organizations also use advertising as a public relations tool. Traditionally, publicity and public relations have been considered more supportive than primary to the marketing and promotional process.
However, many firms have begun making PR an integral part of their predetermined marketing and promotional strategies. PR firms are increasingly touting public relations as a communications tool that can take over many of the functions of conventional advertising and marketing.
Marketing Management
(Click on Topic to Read)
- What Is Market Segmentation?
- What Is Marketing Mix?
- Marketing Concept
- Marketing Management Process
- What Is Marketing Environment?
- What Is Consumer Behaviour?
- Business Buyer Behaviour
- Demand Forecasting
- 7 Stages Of New Product Development
- Methods Of Pricing
- What Is Public Relations?
- What Is Marketing Management?
- What Is Sales Promotion?
- Types Of Sales Promotion
- Techniques Of Sales Promotion
- What Is Personal Selling?
- What Is Advertising?
- Market Entry Strategy
- What Is Marketing Planning?
- Segmentation Targeting And Positioning
- Brand Building Process
- Kotler Five Product Level Model
- Classification Of Products
- Types Of Logistics
- What Is Consumer Research?
- What Is DAGMAR?
- Consumer Behaviour Models
- What Is Green Marketing?
- What Is Electronic Commerce?
- Agricultural Cooperative Marketing
- What Is Marketing Control?
- What Is Marketing Communication?
- What Is Pricing?
- Models Of Communication
Sales Management
- What is Sales Management?
- Objectives of Sales Management
- Responsibilities and Skills of Sales Manager
- Theories of Personal Selling
- What is Sales Forecasting?
- Methods of Sales Forecasting
- Purpose of Sales Budgeting
- Methods of Sales Budgeting
- Types of Sales Budgeting
- Sales Budgeting Process
- What is Sales Quotas?
- What is Selling by Objectives (SBO)?
- What is Sales Organisation?
- Types of Sales Force Structure
- Recruiting and Selecting Sales Personnel
- Training and Development of Salesforce
- Compensating the Sales Force
- Time and Territory Management
- What Is Logistics?
- What Is Logistics System?
- Technologies in Logistics
- What Is Distribution Management?
- What Is Marketing Intermediaries?
- Conventional Distribution System
- Functions of Distribution Channels
- What is Channel Design?
- Types of Wholesalers and Retailers
- What is Vertical Marketing Systems?
Marketing Essentials
- What is Marketing?
- What is A BCG Matrix?
- 5 M'S Of Advertising
- What is Direct Marketing?
- Marketing Mix For Services
- What Market Intelligence System?
- What is Trade Union?
- What Is International Marketing?
- World Trade Organization (WTO)
- What is International Marketing Research?
- What is Exporting?
- What is Licensing?
- What is Franchising?
- What is Joint Venture?
- What is Turnkey Projects?
- What is Management Contracts?
- What is Foreign Direct Investment?
- Factors That Influence Entry Mode Choice In Foreign Markets
- What is Price Escalations?
- What is Transfer Pricing?
- Integrated Marketing Communication (IMC)
- What is Promotion Mix?
- Factors Affecting Promotion Mix
- Functions & Role Of Advertising
- What is Database Marketing?
- What is Advertising Budget?
- What is Advertising Agency?
- What is Market Intelligence?
- What is Industrial Marketing?
- What is Customer Value
Consumer Behaviour
- What is Consumer Behaviour?
- What Is Personality?
- What Is Perception?
- What Is Learning?
- What Is Attitude?
- What Is Motivation?
- Segmentation Targeting And Positioning
- What Is Consumer Research?
- Consumer Imagery
- Consumer Attitude Formation
- What Is Culture?
- Consumer Decision Making Process
- Consumer Behaviour Models
- Applications of Consumer Behaviour in Marketing
- Motivational Research
- Theoretical Approaches to Study of Consumer Behaviour
- Consumer Involvement
- Consumer Lifestyle
- Theories of Personality
- Outlet Selection
- Organizational Buying Behaviour
- Reference Groups
- Consumer Protection Act, 1986
- Diffusion of Innovation
- Opinion Leaders
Business Communication
- What is Business Communication?
- What is Communication?
- Types of Communication
- 7 C of Communication
- Barriers To Business Communication
- Oral Communication
- Types Of Non Verbal Communication
- What is Written Communication?
- What are Soft Skills?
- Interpersonal vs Intrapersonal communication
- Barriers to Communication
- Importance of Communication Skills
- Listening in Communication
- Causes of Miscommunication
- What is Johari Window?
- What is Presentation?
- Communication Styles
- Channels of Communication
- Hofstede’s Dimensions of Cultural Differences and Benett’s Stages of Intercultural Sensitivity
- Organisational Communication
- Horizontal Communication
- Grapevine Communication
- Downward Communication
- Verbal Communication Skills
- Upward Communication
- Flow of Communication
- What is Emotional Intelligence?
- What is Public Speaking?
- Upward vs Downward Communication
- Internal vs External Communication
- What is Group Discussion?
- What is Interview?
- What is Negotiation?
- What is Digital Communication?
- What is Letter Writing?
- Resume and Covering Letter
- What is Report Writing?
- What is Business Meeting?
- What is Public Relations?
Business Law
- What is Business Law?
- Indian Contract Act 1872
- Essential Elements of a Valid Contract
- Types of Contract
- What is Discharge of Contract?
- Performance of Contract
- Sales of Goods Act 1930
- Goods & Price: Contract of Sale
- Conditions and Warranties
- Doctrine of Caveat Emptor
- Transfer of Property
- Rights of Unpaid Seller
- Negotiable Instruments Act 1881
- Types of Negotiable Instruments
- Types of Endorsement
- What is Promissory Note?
- What is Cheque?
- What is Crossing of Cheque?
- What is Bill of Exchange?
- What is Offer?
- Limited Liability Partnership Act 2008
- Memorandum of Association
- Articles of Association
- What is Director?
- Trade Unions Act, 1926
- Industrial Disputes Act 1947
- Employee State Insurance Act 1948
- Payment of Wages Act 1936
- Payment of Bonus Act 1965
- Labour Law in India
Brand Management