PROMOTION
1.
What
is promotion
Promotion is one of the market mix elements,
and a term used frequently in marketing. The
specification of five promotional mix or
promotional plan. These elements are personal selling, advertising, sales
promotion, direct marketing, and publicity. A promotional mix specifies how much
attention to pay to each of the five subcategories, and how much money to
budget for each. A promotional plan can have a wide range of objectives, including:
sales increases, new product acceptance, creation of brand equity, positioning, competitive retaliations, or creation of a corporate image.
Fundamentally, however there are three basic objectives of promotion. These
are:
- To present information to consumers as well as others.
- To increase demand.
- To differentiate a product.
There are different ways to promote a product in
different areas of media. Promoters use internet advertisement, special events,
endorsements, and newspapers to advertise their product. Many times with the
purchase of a product there is an incentive like discounts, free items, or a
contest. This is to increase the sales of a given product.
The term "promotion" is usually an
"in" expression used internally by the marketing company, but not
normally to the public or the market - phrases like "special offer" are more common. An example of a fully
integrated, long-term, large-scale promotion are My Coke Rewards and Pepsi Stuff. The UK version of My Coke Rewards is Coke Zone.
2.
What
is sales promotion
Sales promotion
is one of the seven aspects of the promotional mix.
(The other six parts of the promotional mix are advertising,
personal selling,
direct marketing, publicity/public relations,
corporate image and exhibitions.)
Media and non-media marketing communication are employed for a pre-determined,
limited time to increase consumer demand, stimulate market demand or improve
product availability. Examples include contests,
coupons,
freebies, loss leaders,
point of purchase displays, premiums, prizes, product samples,
and rebates
Sales
promotions can be directed at either the customer,
sales staff, or distribution channel members (such as retailers).
Sales promotions targeted at the consumer
are called consumer sales promotions. Sales promotions targeted at
retailers and wholesale are called trade sales promotions.
Some sale promotions, particularly ones with unusual methods, are considered gimmicks
by many.
Sales
promotion includes several communications activities that attempt to provide
added value or incentives to consumers, wholesalers, retailers, or other
organizational customers to stimulate immediate sales. These efforts can
attempt to stimulate product interest, trial, or purchase. Examples of devices
used in sales promotion include coupons, samples, premiums, point-of-purchase
(POP) displays, contests, rebates, and sweepstakes.
There are
many methods of sales promotion, including:
·
Money off coupons – customers receive coupons, or cut
coupons out of newspapers or a products packaging that enables them to buy the
product next time at a reduced price
·
Competitions – buying the product will allow the
customer to take part in a chance to win a prize
·
Discount vouchers – a voucher (like a money off
coupon)
·
Free gifts – a free product when buy another product
·
Point of sale materials – e.g. posters, display stands
– ways of presenting the product in its best way or show the customer that the
product is there.
·
Loyalty cards – e.g. Nectar and Air Miles; where
customers earn points for buying certain goods or shopping at certain retailers
– that can later be exchanged for money, goods or other offers
3.
Kinds of promotion
You can create promotions of any of the following
types:
a) Product
promotions :
·
Percentage off per item
·
Fixed amount off per item
·
Fixed amount off for all
·
Buy X, get one or more items at a discount
·
Free gift with purchase
b) Order
promotions :
·
Percentage off
·
Fixed amount off
·
Free gift with purchase
c) Shipping
promotions :
·
Free shipping
·
Discounted shipping for an order using a selected ship
mode
·
Discounted shipping for all items using a selected
ship mode
·
Discounted shipping per item using a selected ship mode
4.
Why
do we need promotion
Promotion is
benefit for customer, activities have a variety of aims:
- To inform current and potential customers about the existence of
products
- To explain the potential benefits of using the product
- To persuade customers to buy the product
- To help differentiate a product from the competition
- To develop and sustain a brand
- To reassure customers that they have made the right choice
Present
tense :
2. Sales
promotion includes several communications activities that attempt to provide
added value or incentives to consumers, wholesalers, retailers, or other
organizational customers to stimulate immediate sales
3. These
elements are personal selling, advertising, sales promotion, direct marketing, and
publicity
4. To persuade
customers to buy the product
5. To inform
current and potential customers about the existence of products
6. A
promotional mix specifies how much attention to pay to each of the five
subcategories, and how much money to budget for each
8. Fundamentally,
however there are three basic objectives of promotion
9. There are
different ways to promote a product in different areas of media
Past
tense :
1. Sales
promotions can be directed at either the customer,
sales staff, or distribution channel members (such as retailers)
3. The term
"promotion" is usually an "in" expression used internally
by the marketing company, but not normally to the public or the market -
phrases like "special offer" are
more common
4. An example
of a fully integrated, long-term, large-scale promotion are My Coke Rewards and Pepsi Stuff
5. Media
and non-media marketing communication are employed for a pre-determined,
limited time to increase consumer demand, stimulate market demand or improve
product availability
7. Examples of devices used in sales
promotion include coupons, samples, premiums, point-of-purchase (POP) displays,
contests, rebates, and sweepstakes.
REFERENSI :
http://publib.boulder.ibm.com/infocenter/wchelp/v5r6m1/index.jsp?topic=/com.ibm.commerce.user.doc/refs/rprtypes.htm
