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| Promotion |
The word "Promotion" in the context of 'Marketing" means all activities, which aim to
increase the sales of a product or service. There are three main activities to boost sales:
increase the sales of a product or service. There are three main activities to boost sales:
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Public Relations:
One part of promotion is public relations. Public relation can be described as "the effort to establish and
maintain mutual understanding between an organisation and its public". So, public relations include all
activities that create a positive reputation of the company.
Public relation activities could be activities like sponsorship of sporting events, Royalty opening a new
factory, open days for the public, helping local charities and supporting social facilities, in-house newsletters or
arranging sport facilities for the employees and issuing press releases.
Public relations have to work in different directions because the public of a company includes several different
groups and the activities are aimed at these specific groups. Some of these groups are: the consumers or
the people who might be consumers, the distributors or the suppliers, the banks or other financial institutes,
the shareholders, the employees and the media. Public relations try to make all these groups think of the
company in a positive way.
If the employees are well motivated they are interested in achieving the targets of the company.
If the company has a good reputation the consumer has a positive opinion of the products.
It is easier for distributors or suppliers to convince consumers to buy products of a company with a good
reputation.
Another very important part of the public is the media. The media also influence the other groups of the public.
They are also important because they often publish negative events. This is more spectacular than reporting
the normal work e.g. In factory. For example there was an accident in a chemical factory some years ago. A fire
in the factory was responsible for the pollution of the river. The media reported in great detail about this
accident and its effect. It was hard work for the whole chemical industry to limit this negative publicity and to win
back the confidence of the public. They spent a lot of money for big announcements and reports on their safety
steps in the media.
One part of promotion is public relations. Public relation can be described as "the effort to establish and
maintain mutual understanding between an organisation and its public". So, public relations include all
activities that create a positive reputation of the company.
Public relation activities could be activities like sponsorship of sporting events, Royalty opening a new
factory, open days for the public, helping local charities and supporting social facilities, in-house newsletters or
arranging sport facilities for the employees and issuing press releases.
Public relations have to work in different directions because the public of a company includes several different
groups and the activities are aimed at these specific groups. Some of these groups are: the consumers or
the people who might be consumers, the distributors or the suppliers, the banks or other financial institutes,
the shareholders, the employees and the media. Public relations try to make all these groups think of the
company in a positive way.
If the employees are well motivated they are interested in achieving the targets of the company.
If the company has a good reputation the consumer has a positive opinion of the products.
It is easier for distributors or suppliers to convince consumers to buy products of a company with a good
reputation.
Another very important part of the public is the media. The media also influence the other groups of the public.
They are also important because they often publish negative events. This is more spectacular than reporting
the normal work e.g. In factory. For example there was an accident in a chemical factory some years ago. A fire
in the factory was responsible for the pollution of the river. The media reported in great detail about this
accident and its effect. It was hard work for the whole chemical industry to limit this negative publicity and to win
back the confidence of the public. They spent a lot of money for big announcements and reports on their safety
steps in the media.
Sales Promotions:
Sales promotions are short-term promotional schemes to support the selling of the product. There are three
audiences for sales promotion activities:
(1) to push their own sales department, the company can offer special staff training for this department
and a bonus for successful selling. To be successful the sellers will be supplied with information material.
(2) If a company addresses its sales promotion activities to the retailer, it will guard its interest against the
competitors and will strengthen the loyalty of this retailer, which means the retailer should prefer this company.
The company also will encourage the retailer to stock the product that means this product will be bought in
bigger amounts. The activities to reach these aims are:
(3) The aim of addressing a sale promotion to the consumer are:
To reach this aim the company can do the following:
Sales promotion support the selling of a product. The contact between the company, which makes sales
promotion, and its customers is closer than media advertising. So it easier for the company to get feedback
about the campaign.
E.g. If there are coupons the company known how many coupons were used or if a company offers free
samples, the person who offers the free samples can give a report concerning the reaction of the consumers.
Carrying out sales promotion for the consumer the company depends on the retailer. The retailer most co-
operate. E.g. The person who offers a free sample works in the retailer's shop or if there are coupons, the
retailer has to accept these coupons. If the retailer does not co-operate, it may have a negative effect for the
company.
Sales promotions are short-term promotional schemes to support the selling of the product. There are three
audiences for sales promotion activities:
- the sales department of the company
- the retailer
- the consumer.
(1) to push their own sales department, the company can offer special staff training for this department
and a bonus for successful selling. To be successful the sellers will be supplied with information material.
(2) If a company addresses its sales promotion activities to the retailer, it will guard its interest against the
competitors and will strengthen the loyalty of this retailer, which means the retailer should prefer this company.
The company also will encourage the retailer to stock the product that means this product will be bought in
bigger amounts. The activities to reach these aims are:
- Special offers : this can be percentage discount on the price for the products, or the delivery of more
products than the retailer has to pay for. It also can be an extended credit, so the retailer can wait
e.g. 30 days longer to pay this invoice. - Display material & information material: with the display material the company provide the
advertising for their product in the shop of the retailer. E.g. If there is a new coffee machine, a
toaster etc. In yellow, the retailer gets all the material for a special table, the shelves and/or the shop
window from the manufacturer to decorate the products in a yellow surrounding. The information
material can be useful for sales talk. E.g. For a successful sales talk in a car shop assistant need all
information about the engine, the car body, the extras. - Staff training: if the product are complicated or it is useful to give some advice for the use of the
product (e.g. Cam-Corder), the company can offer sales training for the shop assistants of the
retailer. - Exhibitions: This is part of the business -to- business marketing advertising or industrial marketing.
Exhibitions are a good opportunity to make new contacts and to reinforce the bond with old
contacts. At an exhibition a company can show and explain its products. The company can show its
products at a trade exhibition or it can make exhibition in its own factory or shop. The advantage of an
exhibition is that the company usually can demonstrate the products.
(3) The aim of addressing a sale promotion to the consumer are:
- encourage non-users to try the product
- encourage users to switch brands
- introduce new products
To reach this aim the company can do the following:
- Special offer: the company can give a price reduction, add a present, or add a small quantity of
the product to the main product. E.g. If you buy a camera you get some films free or if you buy two
liters of milk you get 250 ml bottle of milk free. - Gifts: these gifts have nothing to do with the product, they are additional to the product. Particularly
children are attached by little gifts, e.g. a small game or a picture in their breakfast cereals. - Coupons: this is a very common way to tie the customer to a brand for a while and to encourage
them to make the next purchase soon, because there is a time limit for the coupons. During this time
limit the customer can collect the coupons, than he can save money because the next package is
cheaper with the coupons or he can get some gifts. E.g. You can collect points from coca cola soft
drinks to get drinking glasses, radio or watches with the brand name on it. - Free samples: free samples are used to bring the potential customer in contact with the product.
The company expects that the consumer will buy the product after testing it. E.g. You often find some
people in the supermarkets who offer you some food for testing or you get small quantity of perfume for
testing.
Sales promotion support the selling of a product. The contact between the company, which makes sales
promotion, and its customers is closer than media advertising. So it easier for the company to get feedback
about the campaign.
E.g. If there are coupons the company known how many coupons were used or if a company offers free
samples, the person who offers the free samples can give a report concerning the reaction of the consumers.
Carrying out sales promotion for the consumer the company depends on the retailer. The retailer most co-
operate. E.g. The person who offers a free sample works in the retailer's shop or if there are coupons, the
retailer has to accept these coupons. If the retailer does not co-operate, it may have a negative effect for the
company.
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