" Promotions "
# What Is Promotions
Promotions :-- Promotions refer to the entire set of activities, which communicate the product, brand or service to the user. The idea is to make people aware, attract and induce to buy the product, in preference over others.
In terms of a career, a promotion refers to the advancement of an employee's rank or position in a hierarchical structure.
In Marketing Promotion refers to a different sort of advancement. A sales promotion entails the features - via Advertising and a Discounted price - of a particular product or service. Product promotions can also be classified as "sales" or "specials."
In Investments, Promotion refers to creating awareness to little known Stocks in the hopes of Increasing demand, and thus, the price of the stock.Business promotion is Communicating with the public in an attempt to influence them toward buying your products and services. You might Communicate in person through direct selling or in a retail store, via the Internet through a website or social media platform, electronically through email or text messaging (SMS marketing), just to name a few of the more popular business communication channels, but it's the intention to influence the consumer that defines promotion and sets it apart from other communication with customers or clients.
The promotion element of marketing mix is concerned with activities that are undertaken to communicate with customers and distribution channels to enhance the sales of the firm.
Imagine you are an organization trying to go global or expand. You have carefully planned how your business will enter the new market, have Developed the right product or service, and believe you can offer it for a price that will be profitable. However, until you actual get to the real action and start selling your product, you need to take care of one important part of your business without which your business would not actually function, namely, your customers.
Job Promotions :-
A Promotion is a term that is used in different contexts, the most popular being a job promotion. A job promotion is usually handed to an employee who has displayed exceptional performance or has Developed the appropriate skills and knowledge necessary to take on the higher job responsibility. In the latter case, the employee may have been with the Company for a required Amount of time to be eligible for the Promotion. For example, an individual who starts off as an analyst in an investment bank may have to do time for three years in this role, before he gets considered for the next step up, which is the associate position. A Promotion is usually accompanied by a higher salary and increased job responsibilities. It might also include an expansion of benefits and managerial authority over other employees.
Product Promotions and Sales :-
Another area where promotion is applied frequently, is in the marketing sector. In marketing, a brand, company, product or service is usually promoted in an attempt to increase or improve the perception of the promoted asset. Product promotions are designed to increase sales of a product or service. Sales promotions are usually carried out through online media such as social media platforms, digital communication such as mobile SMS, print media such as newspapers, or in a physical location such as a retail store. Other ways used to promote a business or product include word of mouth, business cards, and flyers.
Stock Promotions :-
The capital market is not left without its own promotions. Stock Promotions are carried out when an individual or a group wants to hype a stock. Unfortunately, stock promotions in the capital market are mostly a fraudulent scheme carried out by people who already own shares in their portfolio. These shares usually are priced really low and are from little known companies with no solid financial fundamentals. If the promoter’s tactics work, and more people buy the stock, the value would go up. When this happens, the stock promoter would sell or dump all his shares in the market in classic pump-and-dump style. Stock promoters use a variety of vehicles to promote the stock including advertising online, cold calling, and digital email spams.
# Promotion Mainely Four Type :-
2. Sales Promotion
3. Personal Selling
4. Public Relation
1. Advertising : -- One of the key factors in the Promotional mix, which Contributes to brand building and also how the market perceives the company, is advertising. It is always a big part of the promotional mix because of the far and wide reach of advertising and the message that you can send to your existing and potential customers. Good advertising can build a solid brand for the company. On the other hand, bad advertising with a wrong message, can cause the brand or product to fail.
It is an impersonal presentation where a standard or common message regarding the merits, price and availability of product or service is given by the producer or marketer. The advertisement builds pull effect as advertising tries to pull the product by directly appealing to customer to buy it.
2. Sales Promotion : -- Sales Promotions are one of the most common types of Promotion used by Companies. Their main purpose is to stimulate purchasing and sales. While it has the potential of increasing sales, it is also beneficial for informing prospects about new products on the market or just to recapture old or lost customers. Such examples include: Coupons, product samples, etc.
Sales Promotion refers to short term use of incentives or other promotional activities that stimulate the customer to buy the product. Sales promotion techniques are very useful because they bring:
a. Short and immediate effect on sale.
b. Stock clearance is possible with sales promotion.
c. Sales Promotion techniques induce customers as well as distribution channels.
d. Sales Promotion techniques help to win over the competitor.
Sales Promotion Techniques for Customers :--
1. Rebate :- It refers to selling product at a special price which is less than the original price for a limited period of time. This offer is given to clear off the stock or excessive inventory for example - 2 Tshart at Rs 350 only.
2. Discounts :- This refers to reduction of certain % of price from list price for a limited period of time. The discounts induce the customers to buy and to buy more. Generally at the end of season big companies offer their products at discounted price to clear off the stock
example - Alfa Pilot Shop , Alfa Travel etc.
3. Refunds :- This refers to refund or part of price paid by customer on presenting the proof of purchase for example, Rs 10 off on presentation of empty pack of Lays.
4. Premiums or Gifts or Product Combination :- These are most Popular and Commonly used promotion tool. It refers to giving a free gift on purchase of the product. Generally the free gift is related to product but it is not necessary for example, Mug free with Tea, Shaker free with Coffee, Toothbrush free with Toothpaste, etc.
5. Packaged Premium :- In this type of Sales Promotion the free gift is kept inside the pack. The gift is kept in limited products but the excitement of getting the gift induces the customer to buy the product for example, mug, Watches etc.
3. Personal Selling :--
It is a part of the Promotional mix which involves a one to one communication between buyers and customers (either potential or already customers). As it is a one-to-one Communication, it generates direct contact with prospects and customers. Even though it is considered to be one of the most expensive forms of promotion, it is also considered to be the most successful as a seller-buyer relationship can be created and developed.
Personal Selling means selling personally. This involves face to face Interaction between seller and buyer for the purpose of sale.
The personal selling does not mean getting the prospects to desire what seller wants but the concept of personal selling is also based on customer satisfaction.
Features of Personal Selling :-
a. Personal Interaction :- In personal selling the buyers and sellers have face to face interaction. This closeness allows both the parties to observe each other’s action closely.
b. Two Way Communication :- In personal selling the sellers give information about the product, at the same time the buyer get a chance to clarify his doubts. It is suitable for sale of complex products where buyer wants to interact with the manufacturer.
c. Better Response :- When seller is personally explaining the utilities of product to the customers then customer do pay some attention and listen to the information.
d. Relationship :- When the seller and buyer come together this may improve relation between the customer and seller. Salespersons normally make friendly relations with the customers.
Qualities of a Good Salesman :-
1. Physical Qualities :- A salesman must have good health and pleasing personality. He must be well built and free from physical defects. A pleasing and charming personality boosts self-confidence. Good grooming, appropriate dress, clean and tidy appearance and a good posture will go a long way in creating a first impression. More importantly, a salesman must always have a cheerful smile on his face.
2. Social Qualities :- A Salesman must have good manners, courtesy in dealing with customers. The practice of greeting and thanking customers, using polite expression are necessary for success in personal selling. He should not be shy or reserved but an extrovert and a good listener. He must have the ability to say the proper things and do the right thing without offending others.
3. Mental Qualities :- A good salesman must have a high degree of intelligence, initiative and foresight. He must be intelligent and imaginative enough to understand the customer quickly and read his mind accurately.
4. Technical Quality :- The salesman must have full technical knowledge about the product.
4. Public Relations :- Lastly public relations enable an organization to influence a target audience and through this, create a favorable and positive image for the company. The company tries to connect with the audience by sharing information with them about the company and about the product. If anything goes wrong on the information front, the public relations department has to step forward and rebuild the public image.
Apart from four major elements of marketing mix, another important tool of marketing is maintaining Public Relations. In simple words, a public relations means maintaining public relations with public. By maintaining public relations, companies create goodwill.
Public relations evaluate public attitudes; identify the policies and procedures of an organisation with the public interest to earn public understanding and acceptance.
Public does not mean only customers, but it includes shareholders, suppliers, intermediaries, customers etc. The firm’s success and achievement depends upon the support of these parties for example, firm needs active support of middle men to survive in market, it must have good relations with existing shareholders who provide capital. The consumers’ group is the most important part of public as success of business depends upon the support and demand of customers only.
Public relations are significant in the following ways:
1. Help to convey the policies and programmes of the organisation.
2. Help to collect information about public opinion about the organisation, management activities etc.
3. To overcome the complaints and dislikes of public.
4. To mould people’s attitude in favour of organisation.
5. To maintain goodwill and understanding between organisation and public.
6. To build an image of the organisation.
Ways / Methods and Tools of Public Relations :-
1. News :- Sometimes Companies get involved in such kind of activities or make such policies so that they get some positive coverage in news. For example, a company’s name may be covered in news for reservation of jobs for women or for introducing new technology etc.
2. Speeches :- The Speeches given by the leaders of corporate sectors influence various members of public specially banks, shareholders etc. Public relations department creates occasion when the speeches are delivered by the leader of company.
3. Events :- Events refer to organizing press conferences, multimedia presentation, matches, stage shows etc.
4. Written Materials :- Sometimes written materials such as Balance Sheet, Annual Reports, Special documents, Brochures etc. are circulated to various parties to improve and maintain public image of the company.
Thanks & Regards,
Mob No - 9907031431