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Elements of Promotion Mix.

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Elements of Promotion Mix.

The term “promotion mix” describes the combination of various promotional tactics used by the company to generate, sustain, and grow demand for products and services.

The promotion component of the marketing mix’s four components focuses on raising consumer awareness and convincing them to make a purchase. The Promotion Mix is the aggregate name for the many methods that help a company achieve its goal of promotion.

“A company’s promotional mix comprises advertising, personal selling, sales promotion, public relations, and direct marketing,” says Gary Armstrong. It also encompasses the product’s shape, packaging, colour, label, and other visual aspects since they all convey information to the consumer.

According to Philip Kotler, a company’s total marketing communication mix, also known as the promotion mix, is made up of particular combinations of advertising, personal selling, sales promotion, public relations, and direct marketing tools that it uses to further its advertising and marketing objectives.

Promotion is a method of communication that involves persuasion, influence, and information. It covers all forms of direct or indirect contact between a producer and potential clients, as well as with intermediaries in the distribution chain.

Promotion’s main goals are to educate, convince, and influence potential clients. It is common practise to employ personal selling, advertising, public relations, sales promotion, and direct marketing to tell consumers about the availability of items and pique their interest in purchasing them.

Promotion is a kind of business communication that use a variety of strategies to deliver a certain message to a targeted audience in order to accomplish particular organisational goals. Almost all businesses, whether for-profit or nonprofit, across all sectors of industry, are required to use some kind of marketing.

Such initiatives may take a variety of forms, from multinational corporations paying significant money to get prominent celebrities to act as corporate spokespersons to a one-person company owner handing out business cards at a gathering of local businesspeople.

Promotion is the act of a marketer communicating with potential customers. Through advertising, personal selling, sales promotion, and publicity, it aims to create mental pictures in the minds of consumers that will encourage them to purchase the product.

The combination of advertising, direct marketing, personal selling, sales promotion, and public relations is known as the promotion mix. To have a well-balanced mix of various promotional techniques, marketers must consider the following issues.

  • What is the most effective way to inform the customers?

  • Which marketing methods to be used?
  • To whom the promotion efforts be directed?

Objectives of Promotion Mix

Promotion can be used for number of reasons for ex: Promotional activity can increase sales, raise awareness or concerns about particular issues develop a brand image or alter public opinion.

The possible objectives for promotion mix may include the following:

  1. Build Awareness

New products and new companies are often unknown to a market, which means initial promotional efforts must focus on establishing an identity. In this situation the marketer must focus promotion to effectively reach customer and tell the market who they are and what they have to offer.

  1. Create Interest

Moving a customer from awareness of a product to making a purchase can present a significant challenge. Consumer buying behaviour depends on the type of customer so the customer must first recognize they have a need before they actively start to consider a purchase.

The focus on creating messages that convince customers that a need exists has been the hallmark of marketing for a long time with promotional appeals targeted at basic human characteristics such as emotions, fears, humor, sex etc.

3. Provide Information

Some promotions are designed to assist customers in the search stage of the purchasing process. In some cases, such as when a product is so novel it creates a new category of product and has few competitors the information is simply intended to explain what the product is and may not mention any competitors.

In other situations where the product competes in an existing market, informational promotion may be used to help with a product positing strategy.

  1. Stimulate Demand

The right promotion can drive customers to make a purchase. In the case of products that a customer has not previously purchased or has not purchased in a long time, the promotional efforts may be directed at getting the customer to try the product.

This is often seen on the internet where software companies allow for free demonstrations or even free downloadable trials of their products. For customer base products, promotion can encourage customers to increase their purchasing by providing a reason to purchase products sooner or purchase in greater quantities than they normally do.

  1. Reinforce the Brand

Once a purchase is made a marketer can use promotion to build a strong relationship that can lead to the purchaser becoming a loyal customer. For instance, many retail stores now ask for a customer’s email address so that follow-up emails containing additional product information or even an incentive to purchase other products from the retailer can be sent in order to strengthen the customer marketer relationship.

Elements of promotional mix are also called as tools, means, or components. Basically, there are five elements involved in promotional mix. Some authors have considered more elements, too

 

  1. Advertising

Advertising is defined as any paid form of non-personal presentation and promotion of ideas, goods, and services by an identified sponsor. It is a way of mass communication. It is the most popular and widely practiced tool of market promotion. Major part of promotional budget is consumed for advertising alone. Various advertising media – television, radio, newspapers, magazines, outdoor means and so forth – are used for advertising the product.

Characteristics of advertising are as follow:

(i) Adverting is non-personal or mass communication. Personal contact is not possible.

(ii) It is a paid form of communication.

(iii) It is a one-way communication.

(iv) Identifiable entity/sponsor-company or person gives advertising.

(v) It is costly option to promote the sales.

(vi) It can be reproduced frequently as per need.

(vii) Per contact cost is the lowest.

(viii) Various audio-visual, print, and outdoor media can be used for advertising purpose.

(ix) It is a widely used and highly popular tool of market promotion.

  1. Sales Promotion

Sales promotion covers those marketing activities other than advertising, publicity, and personal selling that stimulate consumer purchasing and dealer effectiveness. Sales promotion mainly involves short-term and non-routine incentives, offered to dealers as well consumers. The popular methods used for sales promotion are demonstration, trade show, exhibition, exchange offer, seasonal discount, free service, gifts, contests, etc.

Characteristics of sales promotion are as follows:

(i) The primary purpose of sales promotion is to induce customers for immediate buying or dealer effectiveness or both.

(ii) Excessive use of sale promotion may affect sales and reputation of a company adversely.

(iii) It is taken as supplementary to advertising and personal selling efforts.

(iv) It involves all the promotional efforts other than advertising, personal selling, and publicity.

(v) It consists of short-term incentives, schemes, or plans offered to buyers, salesmen, and/ or dealers.

(vi) It involves non-routine selling efforts.

  1. Personal Selling

Personal selling includes face-to-face personal communication and presentation with prospects (potential and actual customers) for the purpose of selling the products. It involves personal conversation and presentation of products with customers. It is considered as a highly effective and costly tool of market promotion.

Characteristics of personal have been listed below:

(i) Personal selling is an oral, face-to-face, and personal presentation with consumers.

(ii) Basic purpose is to promote products or increase sales.

(iii) It involves two-way communication.

(iv) Immediate feedback can be measured.

(v) It is an ability of salesmen to persuade or influence buyers.

(vi) It is more flexible way of market communication.

(vii) Per contact cost is higher than advertising.

(viii) It involves teaching, educating, and assisting people to buy.

  1. Publicity

Publicity is also a way of mass communication. It is not a paid form of mass communication that involves getting favourable response of buyers by placing commercially significant news in mass media. William J. Stanton defines: “Publicity is any promotional communication regarding an organization and/or its products where the message is not paid for by the organization benefiting from it.”

It is the traditional form of public relations. Publicity is not paid for by the organization. Publicity comes from reporters, columnists, and journalists. It can be considered as a part of public relations. Publicity involves giving public speeches, giving interviews, conducting seminars, charitable donations, inauguration by film actor, cricketer, politician or popular personalities, stage show, etc., that attract mass media to publish the news about them.

Main characteristic of publicity include

(i) Publicity involves obtaining favourable presentation about company or company’s offers upon radio, television, or stage that is not paid for by the sponsor.

(ii) It is a non-paid form of market promotion. However, several indirect costs are involved in publicity.

(iii) It may include promotion of new product, pollution control efforts, special achievements of employees, publicizing new policies, etc., for increasing sales. It is primarily concerns with publishing or highlighting company’s activities and products. It is targeted to build company’s image.

(iv) Mostly, publicity can be carried via newspapers, magazines, radio or television.

(v) Company has no control over publicity in terms of message, time, frequency, information, and medium.

(vi) It has a high degree of credibility. Publicity message is more likely to be read and reacted by audience.

(vii) Publicity can be done at a much lower cost than advertising. Company needs to spend a little amount to get the event or activity publicized.

(viii) Frequency or repetition of publicity in mass media depends upon its social significance or the values for news. Mostly, it appears only once.

  1. Public Relations

The public relations is comprehensive term that includes maintaining constructive relations not only with customers, suppliers, and middlemen, but also with a large set of interested publics. Note that public relations include publicity, i.e., publicity is the part of public relations.

William Stanton defines:

“Public relations activities typically are designed to build or maintain a favourable image for an organisation and a favourable relationship with the organization’s various publics. These publics may be customers, stockholders, employees, unions, environmentalists, the government, and people in local community, or some other groups in society.” Thus, public relations include organization’s broad and overall communication efforts intended to influence various groups’ attitudes toward the organization. Some experts have stated that the public relations are an extension of publicity.

Main characteristic of publicity are as under:

(i) Public relations is a paid form of market promotion. Company has to incur expenses.

(ii) Public relations activities are designed to build and maintain a favourable image for an organization and a favourable relationship with the organization’s various publics.

(iii) It is an integral part of managerial function. Many companies operate a special department for the purpose, known as the public relations department.

(iv) It involves a number of interactions, such as contacting, inviting, informing, clarifying, responding, interpreting, dealing, transacting, and so forth.

(v) Public relations covers a number of publics – formal and informal groups. These publics may be customers, stockholders, employees, unions, environmentalists, the government, people of local community, or some other groups in society.

(vi) Public relations activities are undertaken continuously. It is a part of routine activities.

(vii) All the officials, from top level to supervisory level, perform public relations activities.

(viii) In relation to modern management practices, the public relations is treated as the profession.

Thus, there are five major elements or promotion mix. Each tool/element has its advantages, limitations, and applicability. Depending upon company’s internal and external situations, one or more tools are used. Mostly, company’s promotional programme involves more elements, each element supplements others.

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