What is Promotions Meaning of Promotion

“What is Promotion?” Promotion is a marketing tool, used as a strategy to

communicate between the sellers and buyers. Through this, the seller tries to influence
and convince the buyers to buy their products or services. It assists in spreading the
word about the product or services or company to the people. The company uses this
process to improve its public image. This technique of marketing creates an interest in
the mindset of the customers and can also retain them as a loyal customer.
Promotion is a fundamental component of the marketing mix, which has 4 Ps: product,
price, place, and promotion. It is also an essential element promotional plan or mix,
which includes advertising, self and sales promotion, direct marketing publicity, trade
shows, events, etc.,
Some methods of this procedure contain an offer, coupon discounts, free sample
distribution, trial offer, buy two items in the price of one, contest, festival discounts, etc.
The promotion of a product is important to help companies improve their sales because
customers reaction towards discounts and offers are impulsive. In other words,
promotion is a marketing tool that involves enlightening the customers about the goods
and services offered by an organization.

Types of Promotion:
Advertising-
It helps to outspread a word or awareness, promote any newly launched service,
goods or an organization. The company uses advertising as a promotional tool as it
reaches a mass of people in a few seconds. An advertisement is communicated
through many traditional media such as radio, television, outdoor advertising,
newspaper or social media. Other contemporary media that supports advertisement
are social media, blogs, text messages, and websites.
Direct Promotion-
It is that kind of advertising where the company directly communicates with its
customers. This communication is usually done through various new approaches like
email marketing, text messaging, websites, fliers, online adverts, promotional letters,
catalog distributors, etc.
Sales Promotion-
This utilizes all sorts of a marketing tool to communicate with the customers and
increase sales. However, it is for a limited time, used to expand customers demand,
refresh market demand and enhance product availability
Self-promotion-
It is a process where the enterprises send their agents directly to the customers to
pitch for their product or service. Here, the response for the feedback of the customer
is prompt and therefore, easy to build trust.
Public Relation-
Popularly know as PR is exercised to broadcast the information or message between a
company (NGO, Government agency, business), an individual or a public. A powerful
PR campaign can be valuable to the company.
Online Promotion-
This includes almost all the elements of the promotion mix. Starting from the online
promotion with pay per click advertising. Direct marketing by sending newsletters or
emails.
Key Points of Promotion

 It is a communication tool that incorporates all the elements used to spread awareness and
convince customers to buy good and services
 It is applicable only for short term sales
 It is one of the variables of the marketing mix
 The effect of promotion is short term
 The result or outcome of the promotion is immediate
 It is an economic marketing tool as compared to advertising
 It can be used for all sorts of businesses irrespective of the size, brand of a company

5-6 Marks Questions:

Q.1 Explain the concept of Promotion Mix.

Answer:

Meaning of  It refers to the sum of promotional tools

promotion mix that are used by the marketer to inform and
persuade the buyers to buy the product.
 These tools/elements are used in different
combinations depending upon the
necessity of information.

Elements of the These tools are in the form of-

promotional mix (a) Advertisement.
(b)Personal Selling.
(c) Publicity.
(d) Sales Promotion.
Q.2 What do you mean by sales promotion? What are the merits and
demerits of sales promotion?

Answer:

Meaning of It refers to short term incentives which are offered

sales promotion to the ultimate customers to encourage them to
make immediate purchase of the product or
service.

Following are the merits of sales promotion:

(a)Attention  Its purpose is to draw the attention of

value prospective customers to make them buy
the products.
 Example: “Buy 1 Get 1 free” offer, draws
the attention of the customers.
(b) Useful in  It is used mainly when the new products
new product are launched in the market so that the
launch attention of the prospects can be drawn
towards new products.
 Example: Offers given by Reliance at the
time of launch of Jio.
(c) Synergy in  It helps to supplement the efforts made in
total personal selling and advertisement.
promotional  It adds to overall effectiveness to the
efforts promotional efforts.
 Example: Sales promotion by domino’s
“Buy 1 Get 1 free” helps to make TV
advertisements hit leading to more sales.
Following are the limitations of sales promotion:
(a) Reflects  A firm cannot remain too much dependent
crisis upon sales promotions.
 It may otherwise leave the impression that
the company is not doing good business.
(b) Spoils  Too much dependence on sales promotion
product image techniques gives the impression in the
mind of customers that perhaps the product
falls short of quality and is not saleable.
3-4 Marks Questions:

Q.1 (Hots): Identify the Sales Promotion Technique in Following

Situations:

(I) Rs. 4,000 Waive on the New Cng Scooter.

(Ii) 50% Off on All Items During a Stock Clearance Sale.
(Iii) Free Mug With Horlicks.
(Iv) Free Sachet With Dove Soap.
(V) Buy Three Get One Free.
(Vi) Scratch a Card and Win the Car.
Answer:
(I) Rebate.
(II) Discount.
(III) Usable benefit.
(IV) Sampling.
(V) Quantity gift.
(VI) Instant Draws.
Q.2 Explain the features of personal selling?

Answer:

Features of personal selling:

(a) Personal form  An interactive relationship exists between
the sellers and the buyer in personal
selling.
 This happens due to a direct face to face
dialogue between them.
(b) Two-way  In personal selling, the seller gives
communication information about the product and at the
same time, the buyer gets a chance to
clarify his doubts.
(c) Better response  When the seller personally explains the
utilities of the product to the customers
they do pay some attention and listen to
the information.
(d) Relationship  When the seller and the buyer meet
together, it improves the relation between
them.
 Salesperson normally makes friendly
relations with customers.
(e) Better  Personal selling is the most effective form
convincing of promotion.
 The salesperson can convince the buyer
by demonstrating the use of the product.
 He can also make changes in the product
or the offer according to the needs of the
customer.
1 MARKS QUESTIONS

Q.1 Identify the promotional tool of marketing mix which involves the oral presentation of
message with one or more prospective customers for the purpose of making sales.

Answer:
Personal selling.
Q.2 When the salesman should not lose his temper but should listen to the customers
patiently. Explain this quality of salesman.
Answer:
Many times, a salesman meets the customers of a different nature. They make
irrelevant questions, waste a lot of time and buy nothing. Under such
circumstances, the salesman should not lose his temper but should listen to the
customers patiently.
Q.3 Under which case- advertising or personal selling, cost per person reached is very high?
Answer:
Personal selling.
Q.4 ‘You don’t close a sale; you open a relationship if you want to build a long-term
successful enterprise.’ identify the communication tool used by the marketer.
Answer:
Personal selling.