Promotion is communication of favorable, persuasive information about a firm or product in oder to influence potencial buyers. There are variuos promotional objectives.
The basic objective underlying all promotion is providing information. Firms want to tell potencial customers about themselves as well as what products are available, where they can be purchased, and for what price.
Increasing sales. Encouraging prospective customers to purchase products is the most common promotional objective, since sales mean survival and success for firms.
Stabilazing sales. Firms also rely on promotional activities to reduce or eliminate substatial variations in demand throughout the year, especially for seasonal products.
Promotion is used to position a product as different or superior to competing products. It means emphasizing certain poduct features to create a specifict image for the product.
Sometimes a company wants to develop a certain public image through promotion.
The promotional mix is the combination of advertising, personal selling, sales promotion and publicity used to promote a specific product. A promotional mix may contain any or all of the four elements, depending on the firm’s objectives, promotional strategy, product characteristics, and target market characteristics.
Advertising is a paid form of non personal communication to a target audience through a mass medium such as television, newspapers, or magazines. Of all promotional activities consumers are most familiar with advertising. We see and hear many advertisements every day. Advertising can be quite expensive, but firms often find advertising to be cost effective. It can reach a vast number of people at a low cost per person. It is also quite flexible, since advertisers can choose outlets to reach audiences of any size or demographic makeup. Ads can be repeated as often as sponsors wish.
Three major categories of advertising are primary – demand, selective (brand), and institutional. At times organizations want to create or increase demand for all products...
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