There are various tools
and elements available for promotion. These are adopted by firms to
carry on its promotional activities. The marketer generally chooses a
combination of these promotional tools.
Some of the most important
elements used in promotion are as follows :
- Advertising
- Sales promotion
- Personal selling
- Public relation
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.
1. Advertising:
Advertisement can be
defined as the “paid form of non-personal presentation and
promotion of idea, goods or services by an identified sponsor”. 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.
From the above definition
we can find that the three distinct features of advertising are:
1.
Paid Form: The sponsor has to pay for
advertising he has to bear a cost to communicate with customers.
2. Impersonality:There
is no face to face contact between customers and advertiser. It
creates a monologue and not a dialogue.
3. Identified
Sponsor:Advertisement is given by an
identified company or firm or individual.
Features of Advertising
and Advantages/Merits of Advertisement:
(i) Reach:Advertising can
reach a large market. As through various media of advertising there
is benefit of mass reach for example, any message given on All India
Radio or TV can reach in different corners of the country wherever TV
and Radio network is available.
(ii) Choice:There is wide
variety of media available for advertising for video, audio, visual
audio, print media etc. Under each category large variety is
available for example, in print media we can select from magazines,
newspaper, banner etc. This variety or choice helps the marketer to
select the media, keeping in mind the target customer.
(iii) Legitimacy:In
advertisement the messages regarding the product or service are given
publicly to customers so there is always a proof for it and customers
believe that publicly the company will not give false information of
the product. The customer feels comfortable to buy a product which is
widely advertised.
(iv)
Expressiveness:Advertising provides enough opportunities to marketers
to dramatise the message with the help of drawings, colours,
pictures, music, dance
etc. They can easily express the use of product through various techniques, and can add multimedia effect also.
etc. They can easily express the use of product through various techniques, and can add multimedia effect also.
(v) Economy:It is always
felt that advertising increases the cost of product or service but
advertising is considered economical as compared to other promotional
techniques because it reaches masses and if we calculate cost per
customer it is very low or nominal.
(vi) Enhancing Customer
Satisfaction and Confidence:
Customer feel more assured
about quality and feel more comfortable if sponsors claim these
benefits in advertising.
Disadvantages of
Advertising:
(i) It is an Impersonal
Communication/Less Forceful:
In advertising there is no
direct communication between the customer and marketer. The marketer
assumes that the message is communicated but the audience or
customers do not pay any attention to impersonal messages conveyed
through advertising. The response of customer cannot be known in
advertising.
(ii) Advertising is
less effective:
In advertising there is
only one way communication i. e., communication from seller only, but
two way communication is always more effective as in two way
communication the customer gets chance to clarify his or her queries.
Sometimes customers have many doubts regarding the use of product,
these doubts can be clarified only when there is two way
communication.
(iii) Difficulty in
Media Choice:
In advertising various
media are available. Each media have its own advantages and
disadvantages. So the effectiveness of advertisement depends to a
great extent on the right choice of media. When choice of media is
faulty or wrong no matter how good the advertisement is it will not
reach the target customer.
(iv) Inflexibility:
It is very difficult to
change advertisement as companies use standardised messages which
cannot be changed according to the need of customers.
(v) Lack of Feedback:
The evaluation of
effectiveness of advertisement is very difficult as there is no
immediate and accurate feedback given by the customers.
Objections to
Advertising or Criticism of Advertising:
Advertising has been
subject to lot of criticisms. The following are main objections
raised on advertisements by a group of people. Along with objections
the answers to these objections are also mentioned below:
(i) Effect of
Advertising on Values, Materialism and Life Styles:
The major objection on
advertisement is that it promotes materialism. The advertisements
inform people about more and more products, the use of existing
products and the new products are shown dramatically to attract the
customers.
This knowledge about more
and more products induces the customers to buy more and more
products. They start demanding the products which they don’t even
require. If there was no advertising we would be less aware of
material things and we can be more contented.
We do not agree with this
objection as it is wrong to say that a person who is least informed
is most contented or satisfied. The advertisement increases the
knowledge of customers by informing them about various products along
with their utilities.
The advertisement only
informs the customers, the final choice of buying or not, lies with
the customers only.
(ii) Advertising
Encourages Sale of Inferior and Dubious Products:
The advertisements show
all types of products irrespective of their quality. With the help of
advertising anything can be sold in the market.
The objection to sale of
inferior goods is not correct because what is inferior and what is
superior depends upon the economic status and preference. Every one
cannot afford to buy superior quality expensive products but it does
not mean they should not use the product.
The lower income group
people satisfy their needs with low cost inferior goods for example;
those who cannot afford to buy shoes of Nike or Reebok have to
satisfy with local brand only. So it is not advertisements which
encourage sale of inferior goods; it is one’s pocket or financial
capacity which decides this.
The real criticism of
advertisement is that it encourages sale of duplicate products. Some
producers exaggerate the use of products and innocent consumers get
trapped in and buy duplicate products.
(iii) Advertising
Confuses Rather than Helps:
The number of
advertisements shown in TV and Radio are increasing day by day for
example, if we take TV, there are so many advertisements of different
companies shown such as LG, Onida, Sony, BPL, Samsung, Videocon etc.
each brand claiming they are the best. These claims by different
companies confuse the customer and it becomes very difficult for him
to make choice.
We do not agree with this
objection because advertisements give wide choice to customers and
today’s customer is smart enough to know and select the most
suitable brand for him.
(iv) Some
Advertisements are in Bad Taste:
Another objection to
advertisements is that advertisements use bad language, the way they
are speaking may not appeal everyone, sometimes women are shown in
the advertisements where they are not required for example, a woman
in after shave lotion and in advertisements of suiting etc. Some
advertisements distort relationship between employer-employee,
mother-in-law and daughter-in-law etc. for example, in advertisement
of Band Aid, Detergent Bar, Fevistick, etc.
Although those types of
advertisements should be avoided but it can’t be an objection
because good or bad taste differs from person to person. It is a
matter of personal opinion as to what was not accepted by yesterday’s
generation is accepted by today’s generation and they may not find
it of bad taste.
(v) Advertisement Costs
are passed on to the Customers in the Form of Higher Price:
The most serious objection
to advertisement is that it increases the price of product because
the firms spend a huge amount on advertisement and these expenses are
added to cost and consumer has to pay a higher price for the product
or service.
This objection is also not
correct because with advertisements the demand for product increases
which brings increase in sale and this leads to increase in
production. With increase in production the companies can get the
economies of scale which reduces the cost of production and thus the
increase in cost due to expenses on advertisements gets compensated.
So if advertisement is used properly it brings reduction in cost the
in long run.
2. Sales Promotion:
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:
Some of the sales
promotion activities commonly used by the marketer to increase the
sale are:
(i) 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; coke announced 2 liter
bottles at Rs 35 only.
(ii) Discounts:This refers
to reduction of certain percentage 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 e.g., season’s
sale at Snow-White Jain Sons, Paul Garments, Bhuvan Garments, etc.
(iii) Refunds:This refers
to refund or part of price paid by customer on presenting the proof
of purchase for example, Rs 2 off on presentation of empty pack of
Ruffle Lays.
(iv) 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 Bourn vita, Shaker free with
Coffee, Toothbrush free with Toothpaste, etc.
(v) Quantity Deals:It
refers to offer of extra quantity in a special package at less price
or on extra purchase some quantity free for example, buy three get
one free e.g., this scheme of buy three get one free scheme is
available on soaps.
(vi) Samples:It refers to
distribution of free samples of product to the customers. These are
distributed when the seller wants the customer must try the product.
Generally when a new product is launched for example, when Hindustan
Level launched Surf Excel it distributed the samples as it wanted the
customers to try it.
(vii) Contests:It refers
to participation of consumers in competitive events organised by the
firm and winners are given some reward for example, Camlin Company
organises painting competition, Bourn vita quiz contest and some
companies organise contest of writing slogans and best slogan is
awarded prize.
(viii) Instant Draws and
Assigned Gifts:It includes the offers like ‘scratch a card’ and
win instantly a refrigerator, car, T-shirt, computer etc.
(ix) Lucky Draw:In this
draws are taken out by including the bill number or names of
customers who have purchased the goods and lucky winner gets free
car, computer, A.C., T.V., etc. Draw can be taken out daily, weekly,
monthly, etc.
(x) Usable Benefits:This
includes offers like ‘Purchase goods worth Rs 5000 and get a
holiday package’ or get a discount voucher, etc.
(xi) Full Finance @ 0%:
Many marketers offer 0% interest on financing of consumer durable
goods like washing machine, T.V. etc. e.g., 24 easy instalments 6
paid as front payment and remaining 18 with post-dated cheques. In
these types of scheme customers should be careful about the file
charges etc.
(xii) 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, gold
pendant in soap, gold coin in Tata tea etc.
(xiii) Container Premium:
This refers to use of special container or boxes to pack the products
which could be reused by the customer for example, Pet Bottles for
Cold Drinks. This bottles can be used for Steering Water, Plastic
Jars for Bourn vita, Maltova, etc. which can be reused by the
housewives in kitchen.
Merits of Sales
Promotion:
1. Attention Value: The
incentives offered in sales promotion attract attention of the
people.
2. Useful in New Product
Launch: The sales promotion techniques are very helpful in
introducing the new product as it induces people to try new products
as they are available at low price or sometimes as free sample.
3. Synergy in Total
Promotion Efforts: Sales promotion activities supplement advertising
and personal selling efforts of the company. Sales promotion adds to
the effectiveness of advertisement efforts.
4. Aid to other Promotion
Tools: Sales promotion technique makes other promotion techniques
more effective. Salesmen find it easy to sell products on which
incentives are available.
Demerits of Sales
Promotion:
1. Reflect Crisis: If firm
is offering sales promotion techniques again and again it indicates
that there is no demand of product which can create crisis situation.
2. Spoil Product Image:
Use of sales promotion tool may affect the image of product as buyer
feel that product is of low quality that is why firm is offering
incentives.
3. Personal Selling:
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:
(i) 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.
(ii) 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.
(iii) 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.
(iv) 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.
(v) Better Convincing:
Personal selling is most effective form of promotion because with
this the sales person can convince the buyer by demonstrating the use
of product and making changes in the product according to the need of
customer.
Qualities of a Good
Salesman:
The qualities which are
commonly found among effective salesman are described below:
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.
Salesman must have two
basic qualities i.e., empathy and ego drive. Empathy means he must
have ability to understand the problem from customer’s point of
view. Ego drive means salesman must pursue sale not just for money
but for recognition and personal success. A good salesman must have
presence of mind and good common sense.
4. Technical
Quality: The salesman must have full
technical knowledge about the product.
5.
Other Qualities: Other qualities, a salesman
must possess, are:
(i) A salesman must have a
good power of memory and observation.
(ii) A salesman must be
honest and should not try to win the customer through false and
misleading representation.
(iii) A salesman must be a
man of sound character, loyal and dependable. He must perform his
duties sincerely.
(iv) The salesman must
have wide knowledge about the product he is selling and company he is
representing.
(v) He must have capacity
to inspire trust.
Role of Personal Selling:
Personal selling plays a very important role in marketing of goods
and services. It is important tool for businessmen, customers and
society.
1. Importance to
Businessmen: Personal selling is an important tool to increase the
sale. It is important for businessman due to following reasons:
(i) Effective
Promotion Tool: Personal selling is an
effective tool to increase the sale of product. Salesmen explain the
merits of products to customers.
(ii) Flexible
Tool: Personal selling efforts can be changed
according to the type of customer salesmen are attending. They may
change the offer in varying purchase situations.
(iii) Minimum Wastage of
Efforts: As compared to other methods of promotion in personal
selling the wastage of efforts is minimum.
(iv) Consumer
Attention: Through personal selling it is
easy to get the attention of customer as there is face to face
interaction between salesman and customers.
(v) Relationship:
Personal selling helps to create lasting relationship between
customers and sales-persons which help in increasing sale.
(vi)
Personal Support: Through personal selling
salesmen can create personal support with the customers. This can
improve competitive strength of organisation.
(vii) Very
Effective to Introduce New Product: Personal
selling is very effective to introduce a new product as salesman can
explain the merits, show the demonstration and clarify the doubts of
customers.
(iv)
Importance to Customers: Personal selling is
very important from customer’s point of view, as customers can get
required information about the product from customers. Customers are
benefits by personal selling in the following ways:
1. Helps
in Identifying Needs: Salesmen help the
customers to discover their needs and wants and they also help
customers to know how these needs and wants can be satisfied.
2. Latest Market
Information: In personal selling salesmen provide
information regarding the new products available in market, uses of
those products etc.
3. Expert Advice:
Customers can get expert advice and guidance in purchasing various
goods and services.
4. Induces Customers:
Personal selling induces customers to buy products for
satisfying their needs.
(v) Importance to
Society: Personal selling brings following positive
effects for society
1. Converts
Latest Demand into Effective Demand: Personal
selling creates effective demand which results in increasing sale and
more income. With more income there will be more products and
services which in turn bring economic growth.
2. Employment
Opportunities: Unemployed youth can work as
salesman and earn their livelihood.
3. Career
Opportunities: Personal selling offers
attractive career with job satisfaction and security.
4. Mobility
of Sales Persons: Sales people move from one
place to other, this promotes travel and tourism industry.
5. Product
Standardisation: With the help of personal
selling there can be uniformity of consumption by supplying
standardised products.
4. Public
Relations: 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.
Role, Significance,
advantages of public relations:
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:
The companies can use the
following tools to improve their relations with public:
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.
5. Public Service
Activities: Big business houses often associate themselves with
various social service projects such as women welfare programmes,
charity shows, up-keeping of parks, planting trees on road side,
training schools, running schools, colleges, hospitals etc.
