Promotion Decisions: Meaning, Elements & Techniques | UGC NET Commerce Preparation Course PDF Download

Overview of Promotion Decisions

Promotion is a key tool for marketers to share information with potential customers, focusing on product awareness, value, and benefits. Its main objectives are to remind, inform, and influence customer behavior.

What is Promotion?

Promotion encompasses all activities designed to communicate a product, brand, or service to potential users. The goal is to raise awareness, attract interest, and encourage customers to choose a product over its competitors. According to Philip Kotler, promotion involves all the company’s efforts to communicate or promote its product to the target market.

Elements of the Promotion Mix

The Promotion Mix includes a combination of promotional tools used by marketers to achieve their goals. It consists of five main elements: Advertising, Personal Selling, Sales Promotion, Publicity, and Public Relations.

Detailed Breakdown of Promotion Mix Elements

Advertising:

• Advertising involves paid, non-personal presentation and promotion of ideas, goods, or services by an identified sponsor. It can appear through various media such as television, radio, newspapers, magazines, and outdoor signage.

Personal Selling:

• This is a direct, face-to-face communication method between the buyer and seller, aimed at selling products. Objectives include creating demand, educating customers, building relationships, and uncovering customer needs.

Sales Promotion:

• Sales promotions are short-term incentives offered to dealers and consumers. Common techniques include demonstrations, trade shows, exhibitions, seasonal discounts, free services, gifts, and contests.

Publicity:

• Publicity is an unpaid form of mass communication designed to generate a favorable response by placing significant news in the media. It includes news coverage, feature stories, and executive interviews, helping to build brand awareness and gain broad exposure.

Public Relations:

• Public relations efforts focus on enhancing a positive image, generating publicity, and fostering goodwill to boost sales. Activities might include favorable media coverage, hosting special events, and sponsoring charitable campaigns.

Sales Promotion Techniques

Various techniques are used to promote sales:

Rebates:

• Rebates offer a refund on the purchase price when a specified quantity is bought. This discount is often handled through the manufacturer and passed on to the customer later.

Discounts:

• Discounts reduce the price offered to customers immediately. They can be trading discounts at the point of purchase or cash discounts for immediate cash payments.

Gifts:

• Gifts are used during special occasions or to stand out in a competitive market. Customers may receive gifts with purchases or as part of promotional offers.

Samples:

• Distributing free samples allows customers to try a product before buying. Samples are often given out by sales representatives or through online channels.

Contests:

• Contests involve engaging customers with simple questions or challenges. Winners are rewarded with points or cashbacks, making contests a popular promotional tool.

Lucky Draws:

• Lucky draws offer gifts to customers on a specific date, with winners chosen randomly from among participants.

Conclusion

Effective promotion decisions are crucial in the marketing process. They help in the identification of brands and products, contributing to increased sales and profitability. Marketers carefully design their promotion mix to achieve these goals.