Promotion

Promotion is an essential element in the marketing mix. It's a tool used by businesses, both large and small, to inform, persuade and remind customers about the products and services they have to offer. Without business promotion, companies would be stagnant and lack substantial growth because their brands would have low visibility in the market. Significance Promotion allows businesses to reach out to consumers using various forms of media, techniques and strategies to capture their attention. Promotion delivers a brand marketing message to consumers' television screens, radios, in the stores where they shop, online, in billboards and in magazines. Types Promotion can be broken down into four categories: advertising, sales promotion, public relations and personal selling. Types of promotion Explanation

Any non personal paid form of communication using any form of mass media. Advertising: Advertising promotions appear as print advertisements in magazines, banner advertisements on the web or commercials. Public relations Involves developing positive relationships with the organisation media public. The art of good public relations is not only to obtain favorable publicity within the media, but it is also involves being able to handle successfully negative attention. Activities include everything from getting bloggers to post about products, pitching articles to magazines, and writing and distributing press releases.

Commonly used to obtain an increase in sales short term. Could involve using Sales money off coupons or special offers. This include attending trade shows, holding promotion: contests and initiating customer loyalty programs. Personal selling: Selling a product service one to one. This is done face to face, as with a business that hosts home parties, or using the phone or web solutions. Is the sending of publicity material to a named person within an organisation Direct mail allows an organisation to use their resources more effectively by Direct Mail allowing them to send publicity material to a named person within their target segment. By personalising advertising, response rates increase thus increasing the chance of improving sales. Listed below are links to organisation who's business involves direct mail. Internet Promoting and selling your services online using various forms of online

Marketing

marketing techniques such as banner advertisments, videos or social media.

Where you pay an organisation to use your brand or logo. This organisation usually has a high profile so that you know that your brand will be seen by a large audience. Most common use of sponsorship is with sporting events. The 2012 Sponsorship Olympics being held in London is being sponsored by a number of organisations such as Mcdonalds and Coca-Cola as the event will attract a world wide audience that will run into hundreds of millions. Some inexpensive, appropriate and effective methods of promotion include advertising through: Personal selling Product demonstrations Direct mail Business cards Yellow Page listing Seminars Newsletters Contests Flyers Statement stuffers Window banners Greeting cards Sports team sponsor Home parties Ethnic serviceslanguages spoken Loyalty schemes Celebrity endorsements Websites Catalogues Exhibitions Party Plan Selling Door to Door sales D.R.T.V (Direct Response) Junk Mail Texts/Pop ups Product placement (Films - TV shows) Relationship Marketing Of course, one of the best free methods of promotion is good word of mouth."

Strategies Promotion is an important part of any marketing strategy. You can have the best product or service out there, but unless you promote it successfully, no one will know about it. There are three basic types of promotional strategies a push strategy, a pull strategy or a combination of the two. In general, a push strategy is sales oriented, a pull strategy is marketing-oriented and a push-pull strategy is a combination of the two. Pull strategy focuses on promoting a product in a manner that encourages the consumer to respond by making a purchase. Examples include coupons, referrals and customer loyalty programs. Push strategy focuses on taking a product directly to a customer to purchase. Examples include point-of-purchase displays, promotions at trade show events, packaging design and working with companies to offer products in their stores or on their websites. When To Use Push promotional strategies work well for lower cost items, or items where customers may make a decision on the spot. New businesses use push strategies to develop retail markets for their products and to generate exposure. Once a product is already in stores, a pull strategy creates additional demand for the product. Pull strategies work well with highly visible brands, or where there is good brand awareness. This is usually developed through advertising. Benefits As a result of promotion efforts, customer are informed about new products and reminded about existing products. Promotion can help companies introduce new uses for old products in an effort to gain a new segment of the market. Promotion efforts give companies quantitative and qualitative data they can use to plan future campaigns to target their ideal consumers. From customer opinions left on product review sites to being able to gauge the number of people who click an online advertising effort, effective promotional efforts produce results. Considerations While promotion strategies are important to businesses and can help them introduce their products and services into a market, there are considerations that marketers must factor into their marketing plans. It's essential the businesses use the appropriate media to target their consumers. With the advent of social marketing and other forms of online marketing, promotional options extend beyond print, radio and television promotions. Businesses must determine where their target market gets the majority of its information, including product reviews and referrals. How to Promote a Sale Now that you have a great product to promote, enticing customers to buy is the next step. The variety of campaign options is endless. The "Bill Me Later---Try Before You Buy," "Free Gift," and "Sliding Scale Discount" offers are just a few common sale promotional campaigns from which you have to choose. You can also combine two or more different types of offers to create

your own special one-of-a-kind sale promotion. Sometimes it may be difficult to brainstorm. To help get the creative juices flowing, review 10 effective ways to promote your next sale. 1. Offer a "Bill Me Later---Try Before You Buy" option. Neither you nor the customer loses in this kind of promotion. Give the customer between one to two weeks to try the product. Only bill the customer if the product is not returned by the time the trial period ends. 2. Offer a "Free Gift." Send a promotional gift along with the order as a no-obligation to buy enticement. Give the customer the option to return the product within a specified time frame and keep the free gift. 3. Offer a "Sliding Scale Discount" between two and 10 percent. This incentive encourages customers to buy more to receive a higher discount. 4. Offer a "Double Your Money Back Guarantee." This type of promotion lets potential customers know that you stand behind your product 200 percent. 5. Offer the "Add-on" sale promotion. The main product is sold at a regular price while an add-on product is heavily discounted. For example, an offer may state that buyers could purchase a bicycle at regular price and get a helmet for a fraction of the price or only $10 more. 6. Offer the "Charity Pledge" sale promotion. Donate a percentage of the sale to a charity of the customer's choice. 7. Offer the "Trade-in" option. Give customers a discount off a newer product when they trade in their older product towards an upgrade. 8. Offer a "Free Shipping Upgrade." Give customers the opportunity to get their product faster without paying more. 9. Offer a "Short-Term Introductory" sale promotion. This offer works best with monthly subscription products like magazines or other similar recurring programs. It is somewhat like the "Bill Me Later---Try Before You Buy" option." The difference is that the "ShortTerm Introductory" offer gives the potential customer a longer time to review the product; for example, 3 months is typical. 10. Offer a "Lifetime Guarantee." This offer is similar to the quality-based "Double Your Money Back Guarantee" offer in that it conveys to the potential customer your willingness to stand by your products over time.

The Advantages Promotional Strategies

Advantages of PR:
Credibility: Because PR communications are not perceived in the same light as advertising that is, the public does not realize the organization either directly or indirectly paid for them they tend to have more credibility. The fact that the media are not being compensated for providing the information may lead receivers to consider the news more truthful and credible. For example, an article in newspapers or magazines discussing the virtues of aspirin may be perceived very much as more credible than an ad for a particular brand of aspirin. Cost: In both absolute and relative terms, the cost of PR is very low, especially when the possible effects are considered. While a firm can employ AD agencies and spend millions of

dollars on AD, for smaller companies, this form of communication may be the most affordable alternative available. Avoidance of Clutter : Because they are typically perceived, as news items, PR messages are not subject to the clutter of ads. A story regarding a new product, introduction of break through is treated as a news item and is likely to receive attention. Ability to reach specific groups: Because some products appeal to only small market segments, it is not feasible to engage in advertising and / or promotions to reach them. If the firm does not have the financial capabilities, to engage in promotional expenditures, the best way to communicate to these groups is through PR. Image Building: Effective PR helps to develop positive image for the organization. A strong image is insurance against later mis-fortunes.

Media PR is the appealing power to a large number of people. If it is a newspaper or a magazine, about millions of readers will see the information of your company and understand it. In addition, if it is a TV program, 1,000,000 and 10,000,000 audiences will see the information which introduces your company on TV. Because it is different from the other ways of advertising, readers and audiences will be interested in the information which is introduced in the media. Media PR is a great appealing power and responses. For example, please remember your everyday life. Which one of the following will make you feel like eating "? 1. To see a commercial for noodles on TV 2. A reporter was eating noodles and saying it was delicious as part of an information program on TV. The information, which the highly public mass communication picks up from a lot of information, becomes at a premium for the readers and audiences at that point. Therefore it is the greatest characteristic of media PR to bring an effect which creates needs by shaking up the targeted consumers' minds, who receive the information. Media PR is inexpensiveness of the cost. For example, if it is an appearance on a TV commercial, the amount of money which is needed is from tens of millions to more than a hundred million. However it is possible to have it for free of charge if you do it in particular. Running cost to carry out the PR activity always occurs, but you can control "the expense" overwhelmingly if you compare it to the other ways of advertising.

Advantages of Personal Selling Two-way form of communication One key advantage personal selling has over other promotional methods is that it is a two-way form of communication. In selling situations the message sender (e.g., salesperson) can adjust the message as they gain feedback from message receivers (e.g., customer). So if a customer does not understand the initial message (e.g., doesnt fully

understand how the product works) the salesperson can make adjustments to address questions or concerns. Many non-personal forms of promotion, such as a radio advertisement, are inflexible, at least in the short-term, and cannot be easily adjusted to address audience questions. Convey More Information You can express added information with personal selling when compared to any other types of promotion, such as advertising. Personal selling is predominantly beneficial when functioning with goods of high value. You will require influencing buyers more with supplementary luxurious stuffs. Most enterprises use notebook presentation, exhibitions and extremely comprehensive product information when promoting goods like medical equipment, computers, and industrial goods. More Impact Personal selling has a superior impact on consumers than direct mail or other forms of advertising. The buyers dont require to wait long to get his queries responded. He can find out what he requires to be acquainted with instantly. Retailer also obtain an enhanced experience for what the consumers demands. Recommend specific goods if you have widespread merchandise line or adapt your services, like discussing, to the buyer's specific requirements. Building Relationships The interactive nature of personal selling also makes it the most effective promotional method for building relationships with customers, particularly in the business-to-business market. This is especially important for companies that either sell expensive products or sell lower cost but high volume products (i.e., buyer must purchase in large quantities) that rely heavily on customers making repeat purchases. Because such purchases may take a considerable amount of time to complete and may involve the input of many people at the purchasing company (i.e., buying center), sales success often requires the marketer develop and maintain strong relationships with members of the purchasing company. Practical Promotional Option Finally, personal selling is the most practical promotional option for reaching customers who are not easily reached through other methods. The best example is in selling to the business market where, compared to the consumer market, advertising, public relations and sales promotions are often not well received.

Advantages of TV Advertising TV advertising allows the product to reach large number of people, both at regional as well as at national level. In addition, a very short span of time is required to reach the product to the public. TV helps in conveying the message or advertisements with sound, visuals and actions. TV advertisements can target large number of local people with local cable network channels and independent stations. Various segments of people like house wives, young people and children are targeted through different channels like cartoon etc. They provide complete flexibility and selectivity options to the customers so that they can choose the desired product offered by various companies. Television advertisements can attract people and convince them to buy the products. This is extremely advantageous for small business. People do not like to waste their time on things which do not concern them. So to be successful, advertisement must be brief.

Advantages of internet
The Internet's vast reach can allow advertisers to reach significantly more people than traditional advertising media at a fraction of the cost. Internet advertising is ideal for businesses with a national or international target market and large-scale distribution capabilities. As a rule, the more people your business serves, the most cost-efficient internet advertising can be. Internet advertising can also be more targeted than some traditional media, ensuring that your messages are seen by the most relevant audiences. Advantages of sales promotion (Jefkins, 1993)

Good sales promotion campaign result in good and close relation between manufacture and key customers. Good sales promotion campaign will attract or convince retailer or dealer to stock manufactures product in their store because product is added-value so consumers demand for that product. Impulse buying can be induced Attention to a new product can be drawn Good sales promotion campaign support consumer to switching brand. if create collection of tokens, habit buying may be occurred Because of consumers are encourage to buy large volume, consumers might buy competitors product less. Sales promotion is marketing tool which easy to control and measure because there are period of time limited and it can be measure by sale sheet. Good sales promotion campaign can create good public relation Sales promotion can be used for competitiveness with rival competitor such as regaining market share.

The Disadvantages Promotional Strategies

Disadvantages of PR:
Long Hours: Public relations managers often work long hours, especially during busier times of the year or when important campaigns are in progress. When high-dollar clients impose deadlines, PR companies must work diligently to meet them to satisfy the clients and retain business. This means managers might work well into the evenings and on weekends to beat deadlines. Twelve- to 15-hour workdays are not uncommon. Stress: Public relations can be a high-stress environment. Clients might request timely turnarounds on last-minute work. You not only have to respond and plan quickly, you also must lead your team of specialists to produce fast results. On some projects -including those involving a sudden problem a client must deal with publicly -- PR managers must work into the late hours of the night so the company can be prepared to deal with the problem first thing in the morning. Clients also make late changes, which frustrates you and your team and contributes to the pressure of getting the work completed. Additionally, the crisis management element of PR is inherently stressful. When your company introduces the media PR, it seems that people focus on advantages of the media PR too much and disturb their gambling spirit in many opportunities. However, you must understand the disadvantages properly as well. At first, the media PR "is very difficult". If you continue sending press releases, there is a possibility they will be picked up by a newspaper or a magazine. But we can say that in the case of TV PR which can get high responses, you must have a minute strategy ready. Otherwise the opportunity to be picked up does not come. This is because TV is a special media that handles "videos". A strategy supported by the professional knowledge of the media will be needed if you want to get into the media where you can get high responses to your promotions. Secondly, it is hard to "predict about the responses". Let's say that a product of your company was picked up by a TV program. Telephone calls for inquiries go up explosively and orders would be rushing and your company may fall into lack of stock. However, the responses of the media PR last around 3 days to 1 week at most. So then a business plan will be necessary that utilizes the media exposure well without getting influenced by the needs which temporally went up. Also, it is "the increase of the risk". It draws the end users who have bad quality and you haven't had before into your company as your company is introduced in the media. Therefore the claims that your company never had before might take place or it often happens that the problem of the product is picked up on. The media PR may end up with a result that gives the opposite effect, unless the management which involves the assessment of risks is done.

Disadvantages of Personal Selling Limited Reach: One disadvantage is that your customer reach is limited through personal sales. As a result, it will require extended time period to create product

awareness, particularly if you dont use other forms of advertising. Sales representatives have to cover up one region or place at a time. As a Sales representative, you can only talk to twenty five potential buyers per day and put together 3-5 presentations. Contact can be principally partial in rural regions where fewer potential buyers are situated. Expensive: Personal selling is in addition costly, particularly when bearing in mind the sales representative's salary, bonus, commission as well as travel time. Furthermore, it requires plenty of money to prepare your sales representatives, educating them on a range of goods and sales techniques. That is the reason it paramount to study the advantages and disadvantages of personal selling against other forms of advertising.

Disadvantages of TV Advertising Cost is very high. TV advertisements are short, thus they do not express much about the product It involves complicated procedure. Producing the TV advertisement involves hiring advertising agency, video editors, actors and script writer.

Disadvantages of internet:
One disadvantage of advertising on the Internet is that your marketing materials are automatically available for anyone in the world to copy, regardless of the legal ramifications. Logos, images and trademarks can be copied and used for commercial purposes, or even to slander or mock your company. This is not the case with television and magazine advertising, wherein images must be replicated rather than simply copied electronically. Another disadvantage is the fact that the Internet-advertising gold rush has begun to introduce ad clutter to the Web. Web users are so inundated with banner ads and spam email that they have begun to ignore internet advertising just as much as ads on traditional media.

Disadvantages of sales promotion (Jefkins, 1993)

If sales promotion campaign is not well developed or planned, retailer might not cooperate because inefficient sales promotion campaign is seen as a trouble. Moreover, Jefkins also state that there are problems that they may not yet have received (or put on display) stock bearing promotional packing, which has been advertised; or the scheme has gone so well that they are out-of-stock when customers want to buy further units with the promotional packing. These customers go elsewhere. Customer might feel not satisfied if they did not complete the collection of tokens before the campaign is closed. As a result of this, negative public relation is occurred. In addition, if retailer did not stock promotion package as much as it should be, when consumer did not get what company advertised, this also result in negative public relation. Moreover, delay in delivery is another cause of negative public relation. Jefkins (1993) suggest that some large supermarket chain quite blatantly accept cash vouchers as price cuts on any product they stock, thus negating the whole point if a manufacturers promotion.

After sales promotion campaign is ended, customer who switched from competitors brand might go back to their previous brand. Customer might only buy a product only for extra offers. If used over the long-term, customers may get used to the effect, Too much promotion may damage the brand image

Disadvantages of Sales Promotion Increased price sensitivity: Consumers wait for the promotion deals to be announced and then purchase the product. This is true even for brands where brand loyalty exists. Customers wait and time their purchases to coincide with promotional offers on their preferred brands. Thus, the routine sales at the market price are lost and the profit margin is reduced because of the discounts to be offered during sale-season. Quality image may become tarnished: If the promotions in a product category have been rare, the promotions could have a negative effect about its quality image. Consumers may start suspecting that perhaps the product has not been selling well, the quality of the product is true compared to the price or the product is likely to be discontinued because it has become outdated. Merchandising support from dealers is doubtful: In many cases, the dealers do not cooperate in providing the merchandising support nor do they pass on any benefit to consumers. The retailer might not be willing to give support because he does not have the place, or the product does not sell much in his shop, or may be he thinks the effort required is more than the commission/benefit derived. Short-term orientation: Sales promotions are generally for a short duration. This gives a boost to sales for a short period. This short-term orientation may sometimes have negative effects on long-term future of the organization. Promotions mostly build shortterm sales volume, which is difficult to maintain. Heavy use of sales promotion, in certain product categories, may be responsible for causing brand quality image dilution. Decreased Value: The longer a sales promotion lasts, the more likely you will decrease the perceived value of your product or service. For example, if a restaurant offers a steep discount for childrens meals to attract families, parents might balk at paying more after they get used to the low prices. Keep promotions short to prevent long-term damage to your overall pricing strategy.

Promotional Strategies
There are many different types of promotional strategies a company can implement, and promotional products are just one of them. You need to have complete campaign and strategy in place. Here are a few strategies that can be employed. 1. Media releases Media releases are a great way to get information about your product, service or company out to a large amount of potential customers. If you can put information about your product into an

interesting story then there is a chance your story will be picked up. Remember it must be interesting for people or it will not be grabbed. 2. Events Is your event going to be memorable? Are people going to feel like friends visiting or like walking wallets? Spend a little extra, make them feel welcome and get to know people. Yes, you are there for a purpose, however people expect a good time at events and you want to make sure they leave with a favourable impression. 3. Networking Networking within your industry and clients is a great way to get yourself and you product noticed. Attend networking functions, have a good story or joke ready, and they will be sure to remember you for the right reasons. 4. Sales Pitches A great sales pitch consists of not only showing the prospect your product. You are also selling yourself. Be likeable, bring along morning or afternoon tea, and be memorable. 5. Follow-up with clients Once you have spoken with a client it is important to follow up my mail or email, if only to confirm with them the items you discussed. This also sets the tone for further talks and reminds them that they are important to you. 6. Promotional products Promotional products can be used to accomplish several things. They can motivate customers to use your product or service, increase attendance at conferences or trade booths, thank loyal customers, for attracting staff, and for rewarding staff. When choosing a promotional product think of the goal you are trying to achieve. 7. Talk to us!! PromoSales consultants are happy to have a chat about what you need from you promotion. We are always interested in hearing from you and want to see your promotion succeed. 8.Contests Contests are a frequently used promotional strategy. Many contests don't even require a purchase. The idea is to promote your brand and put your logo and name in front of the public rather than make money through a hard-sell campaign. People like to win prizes. Sponsoring contests can bring attention to your product without company overtness.

9.Social Media Social media websites such as Facebook and Google+ offer companies a way to promote products and services in a more relaxed environment. This is direct marketing at its best. Social networks connect with a world of potential customers that can view your company from a different perspective. Rather than seeing your company as "trying to sell" something, the social network can see a company that is in touch with people on a more personal level. This can help lessen the divide between the company and the buyer, which in turn presents a more appealing and familiar image of the company. 10.Mail Order Marketing Customers who come into your business are not to be overlooked. These customers have already decided to purchase your product. What can be helpful is getting personal information from these customers. Offer a free product or service in exchange for the information. These are customers who are already familiar with your company and represent the target audience you want to market your new products to. 11.Product Giveaways Product giveaways and allowing potential customers to sample a product are methods used often by companies to introduce new food and household products. Many of these companies sponsor in-store promotions, giving away product samples to entice the buying public into trying new products. 12.Point-of-Sale Promotion and End-Cap Marketing Point-of-sale and end-cap marketing are ways of selling product and promoting items in stores. The idea behind this promotional strategy is convenience and impulse. The end cap, which sits at the end of aisles in grocery stores, features products a store wants to promote or move quickly. This product is positioned so it is easily accessible to the customer. Point-of-sale is a way to promote new products or products a store needs to move. These items are placed near the checkout in the store and are often purchased by consumers on impulse as they wait to be checked out. 13.Customer Referral Incentive Program The customer referral incentive program is a way to encourage current customers to refer new customers to your store. Free products, big discounts and cash rewards are some of the incentives you can use. This is a promotional strategy that leverages your customer base as a sales force. 14.Causes and Charity Promoting your products while supporting a cause can be an effective promotional strategy. Giving customers a sense of being a part of something larger simply by using products they

might use anyway creates a win/win situation. You get the customers and the socially conscious image; customers get a product they can use and the sense of helping a cause. One way to do this is to give a percentage of product profit to the cause your company has committed to helping. 15.Branded Promotional Gifts Giving away functional branded gifts can be a more effective promotional move than handing out simple business cards. Put your business card on a magnet, ink pen or key chain. These are gifts you can give your customers that they may use, which keeps your business in plain sight rather than in the trash or in a drawer with other business cards the customer may not look at. 16.Customer Appreciation Events An in-store customer appreciation event with free refreshments and door prizes will draw customers into the store. Emphasis on the appreciation part of the event, with no purchase of anything necessary, is an effective way to draw not only current customers but also potential customers through the door. Pizza, hot dogs and soda are inexpensive food items that can be used to make the event more attractive. Setting up convenient product displays before the launch of the event will ensure the products you want to promote are highly visible when the customers arrive. 17.After-Sale Customer Surveys Contacting customers by telephone or through the mail after a sale is a promotional strategy that puts the importance of customer satisfaction first while leaving the door open for a promotional opportunity. Skilled salespeople make survey calls to customers to gather information that can later be used for marketing by asking questions relating to the way the customers feel about the products and services purchased. This serves the dual purpose of promoting your company as one that cares what the customer thinks and one that is always striving to provide the best service and product.

Small Business Level (Volume less than 5 million)

Small business entrepreneur (SBE) should adopt personal selling method to promote business. SME should adopt following promotion methods because to increase sales which is affordable. Online Marketing Developing Customer Relationships Website & Search Engine Optimization Promotional Products: Special offers and giveaways Using SMS Advertisement Technology

Medium Business Level (Volume 5 million to 10 million)

Medium business entrepreneur (MBE) should adopt personal selling and public relation method to promote business. MME should adopt following promotion method because to increase sales which is affordable. Sampling Sales promotion Personal selling Advertising

Large Business Level (Volume More than 10 million)

Large business entrepreneur (LBE) should adopt advertising method on different channels to promote business. LME should adopt following promotion method because to increase sales which is affordable. Contests Coupons Sampling Sales promotion Merchandising Personal selling Exhibitions Advertising Sponsorship and public relations