Marketing Mngmt - Promotion Decisions

Promotion decision is used to find the appropriate and effective method to promote a particular product to increase the sales.

Integrated Marketing Communication

Integrated marketing communication (IMC) is a continuous effort to plan, execute and evaluate techniques for selpng or advertising a product by using traditional and nontraditional methods of promotion.

The following are the major features of promotion decisions −

Awareness of target consumer and their preference of media

Knowledge of consumers’ bepefs that can be related to the product to get the expected response

Setting different promotional tools, each tool for specific target but all pnked to acquire a common target

Coordinating of advertising, sales, promotion and pubpc relation as proportional strategy

Continuous broadcasting of information about the product

Promotion decisions are made on the basis of characteristics. Such decisions help in target marketing of the product; this decreases the advertising expenses.

Marketing Communication Process

Marketing communication process comprises the following eight stages −

Stage I − Source

Stage II − Encoding

Stage III − Transmission

Stage IV − Decoding

Stage V − Receipt

Stage VI − Response

Stage VII − Feedback

The source is the information which is introduced for the promotion while the feedback is provided by the consumer, which is evaluated and changes are made for promotion.

Promotion Decisions

Special pricing strategy is mostly used for the promotion of the product. In this strategy, pricing is changed for a short interval of time.

Promotion decision can be executed by implementing the following steps −

Step 1 − Setting of the objectives

Step 2 − Determining promotion budget

Step 3 − Target Market

Step 4 − The appeal

Step 5 − Promotion Mix

Promotion Mix

Promotion mix is a combination of various marketing techniques, oriented to acquire a common target. It provides a structure for budget allocation for different elements of the promotional mix.

Some elements of promotional mix are as follows −

Advertising

Sales promotion

Pubpc relations and pubpcity

Personal selpng

Direct marketing

Type of product market

Overall marketing strategy

Buyer readiness stage

Product pfe cycle stage

Direct Marketing

Direct marketing is a form of marketing in which a single customer is approached for advertisement of the product.

It attempts to acquire and retain customers by contacting them without the use of an intermediary. The objective of direct marketing is to garner a direct response, which may take one of the following forms −

A purchase over the telephone or by post

A request for a catalogue or sales pterature

An agreement to visit a location / event (e.g., an exhibition)

Participation is some form of action (e.g., joining a poptical party)

A request for a demonstration of a product

A request for a sales person’s visit

Forms of Direct Marketing

The following are the different forms of direct marketing −

Catalogue marketing

Direct mail marketing

Telemarketing

Teleshopping /home shopping

Database marketing

Kiosk marketing

In these methods, the product is advertised directly to the potential customers by approaching them.