ALIGARH MUSLIM UNIVERSITY CENTRE JANGIPUR, MURSHIDABAD, WEST BENGAL ASSIGNMENT FOR MARKETING MANAGEMENT TOPIC – ELEMENTS OF PROMOTION MIX AND THEIR DIFFERENCES SUBMITTED TO: DR. NIGAMANANDA BISWAS SUBMITTED BY: ANAS KHAN (20MBAW-50) SAHIL MIRZA (20MBAW-51) MOHD SHADAB FAIZI (20MBAW-52) SM TAHSEEN IMAM (20MBAW-53) ABDULLAH YASIR (20MBAW-54) ELEMENTS OF PROMOTION MIX AND THEIR DIFFERENCES In marketing, the promotional mix describes a blend of promotion variables chosen by marketers to help a firm reach its goals. Sales promotion is media and nonmedia marketing communication used for a pre-determined limited time to increase consumer demand, stimulate market demand or improve product availability. The Promotion Mix refers to the blend of several promotional tools used by the business to create, maintain and increase the demand for goods and services. The Promotion Mix is the integration of Advertising, Personal Selling, Sales Promotion, Public Relations and Direct Marketing. ADVERTISING Advertising is an impersonal form of communication which is paid for by the marketers to promote their goods and services. It is the most used element of promotional mix. The distinguishing features of advertising are: (i) Paid Form - Cost of advertising has to be borne by the marketer or the sponsors, thus it is a paid form of communication. (ii) Impersonality - There is no face-to-face contact between the advertiser i.e., the seller and the prospect i.e., the target customer. It creates a monologue, therefore, referred as an impersonal method of promotion. (iii) Identified Sponsor - Advertising is undertaken by an individual or a company who makes advertising efforts and bears the cost involved. The most common advertising means arenewspapers; magazines; television; radio; banners; pamphlets; hoardings etc. Advertising is an impersonal promotional technique, yet it is the most frequently used medium of promoting goods and services. Advertising is a useful expenditure as it increases the reach, brings down the unit cost of production and adds to the growth of the economy. However, the opponents of advertising say that expenditure on advertising is a social waste as it adds to the cost, multiplies the needs of people and undermines social values. 1 Benefits of Advertising Mass Reach - It helps business to reach a large number of potential customers spread over a wide geographical area. Advertising in a leading newspaper will reach all the readers across the country. Enhancing Customer Satisfaction - It creates confidence amongst potential customers about the quality and features of products hence they feel satisfied while purchasing the product. Expressiveness - Use of computers, artistic designs and graphics make advertising a forceful medium of communication. It makes even simple products look attractive and thus persuade potential consumers to become customers. Economy - It is the most economical way to communicate with a large number of potential customers spread over a wide geographical area. Legitimacy - Advertising involves giving a message publicly thus it creates confidence amongst the customers that the information provided is true. Public Relations Public Relations refer to the variety of activities conducted by a company to promote and protect its image, its products and policies in the eyes of the public. Thus, it aims to manage public opinion of the organization. Public relations encompasses a broad range of activities. In order to influence the public outlook and bring certain changes, the sellers should take help of newspapers, essays in magazines, advertisement and the personal contacts. Not only the public will be informed of regarding newly produced products, but this will also win the confidence of public. Public relations have not become an important marketing function. The total process of building goodwill towards a business enterprise and securing a bright public image of the company is called public relations. It creates a favorable atmosphere for conducting business. There are four groups of public relations Customers Share holders Employees The community 2 The marketer should have the best possible relation with these groups. Public relations complement advertising by creating product and service credibility. Effective marketing communication is not possible without establishing and maintaining mutual understanding between the company and its customers. The lubricant making the wheel of marketing run smoothly is public relations. Bright image is created and maintained only by public relations. Personal Selling The buyers and sellers negotiate under personal selling. It facilitates the mutual reactions of the buyers on the product and it enables to know and to transact the information. It is most effective factor for the sale promotion. It provides an elastic and two-way communication. Personal selling has been considered more useful for the sale of industrial products, but this factor plays a particular role in the sale of consumer products covered under large publicity. The main limitation or defect of this factor is that it is more expensive. About 55% of the total promotional expenses is incurred on personal selling. Personal selling involves oral presentation of message in the form of conversation with one or more prospective customers for the purpose of making sales. Most business firms appoint salespersons to develop personal communication with target customers to create product awareness and develop product preferences to make sales. It is a paid form of communication. Features of Personal Selling: (i) Personal Form - It is a direct face-to-face dialogue between the seller and the buyer. (ii) Development of Relationship - The direct interaction with the buyer helps salesperson to develop personal relationship which Is important for making a sale. (iii) Paid form - Cost of personal selling has to be borne by the marketers. Sales Promotion Sales promotion is a branch of promotion-mix. Irrespective of being separate from the advertisement, personal selling and public relations, it coordinates, integrates and supports the activities of advertisement and personal selling. Sales promotion refers to the promotional activities designed to encourage customers to make immediate purchase of goods or services. These activities include sales contest, free gifts, cash discounts, free samples etc. 3 Sales promotion usually supports other promotional activities like advertising, personal selling, publicity etc. to increase sales in the short run. Every company designs sales promotion activities specific to customers, tradesmen, middlemen or dealers and salesperson. Sales Promotions can be divided in two parts: (i) Consumer Promotion - The samples, coupons, premium, price reduction, proposals for refund of price competitions, exhibitions etc., are included with it. (ii) Trade Promotions - Free sample, purchase allowances, commercial sales competition, commercial allowances, cooperative advertisement etc., are included with it. Direct Marketing Any paid form of personal and long-term communication of ideas, goods and services using direct communication platform such as – emails, newsletters, etc. Direct marketing uses direct approaches to connect and communicate with the specific customers and prospects using emails, mails, business letters, telephone, and fax etc. It helps the marketer to create a dialogue with the customer for immediate and quick response. Direct marketing enables you to communicate with your customers in a more personalized way than advertising, such as greeting them with a letter or telephoning them directly. Telemarketing, direct mail, catalogs and coupon mailers are all examples of direct-marketing techniques. Successful direct marketing depends on whether you can acquire and maintain a database of your target market. Some marketers find this alone justifies the cost of advertising in a national consumer publication instead. Advantages of direct marketing Predictability - By staging initial tests and measuring the results, you can roll out a directmarketing campaign to a wider universe of potential customers with a strong likelihood that it will succeed. You can mitigate your risk by strategic sampling. Effectiveness in reaching the right target - Through direct marketing, you can contact narrow market segments and customize your message to appeal to them. 4 Ease of measurement - Evaluating direct-marketing campaigns is straightforward because you can measure outcomes with quantifiable data, such as number and size of orders, leads generated or requests for more information. Differences of the elements of promotion mix S. No 1. Point of difference Form 2. Flexibility 3. Reach 4. Cost 5. Coverage 6. 7. Use of Mass Media Feedback 8. Useful for Advertising Personal Selling It is an impersonal form of communication. Less flexible as standardized messages are used. It is a personal form of communication. Flexible messages can be changed according to the type of customer. It reaches masses. Only limited number of customers can be contacted. Cost per person is less as at it Cost per person is high as at a covers large number of people. time limited member can be connected. Covers market in short time. Takes long time to cover market. Makes use of mass media such Do not make use of mass as T.V., Radio, Newspaper. media. No direct feedback can be Direct feedback can be obtained. collected by salesman. More useful for standardized and More useful for industrial and customer products. customized products. Differences of Advertising and Sales Promotion S. NO. Point of difference Advertising Sales Promotion 1. 2. 3. 4. 5. Time Purpose Price Suitable for Sales Short Term Increase sales Not very expensive Small to Large Companies Directly related to sales 6. Example Long Term Increase sales, Brand building Expensive Medium to Large Companies Assumption that it will lead to sales Giving an advertisement in the newspaper about the major products of a company 5 Giving free products, coupons etc. Differences of Public Relation and Direct Marketing Marketing generally covers promotional, direct marketing and advertising which seeks to return direct sales, whereas public relations is focused on reputation management through generating positive media coverage and stakeholder communication. Direct marketing is direct communication with individually targeted consumers to get an immediate response. It is a private and specific activity, immediate, personalized and interactive. Public relation is the communication strategy that aims to establish good relationships with the target clientele of an organization. It can take place in the form of reports, events or press articles. This approach seems more authentic and credible than advertising and reaches consumers who avoid sales and advertising. Now we will discuss the major differences of the elements of promotion mix. The primary purpose of sales promotion is to induce customers for immediately buying while the basic purpose of personal selling is to promote products and the primary concerns of the direct marketing is to publishing and highlighting companies’ activities and products. Advertising is the paid form of communication and it is costly option to promote the sales while in personal selling per contact cost is higher than advertising but the direct marketing is the non paid form of market promotion and also public relation is a paid form of market promotion, company has incurred expenses. Sales promotion involves non-routine selling efforts while personal selling involves two-way communication and involves teaching, educating peoples to buy. In direct marketing involves obtaining favorable promotion about company or company’s offers upon radio, and T.V. while in public relations involves several interactions such as contacting, inviting, informing, classifying, responding, interacting, dealing. Advertising is a non-personal or mass communication personal contact is not possible while in personal selling is an oral, face to face, personal presentation with consumer. Direct controlling can be done at a much lower cost than advertising. So, these are some differences of the elements of promotion mix. 6 CONCLUSION In conclusion does the promotion mix offer a lot of tools to address different types of customers. A company does not need to use every tool to gain customers. The trade-off between more customers and the costs are different for small local companies than for global companies, as shown. Product promotion is critical for every business due to the lasting impact promotion has on the clients. The promotion mix is essentially what promoting entails as well as how promoting is effectively done. It comprises personal selling, advertising, public relations, sales promotion, and direct marketing. The main objective of market communication is to exchange the information about the product and organization with the help of promotion in order to create awareness amongst the customers and other stakeholders. The promotion plays an important role in marketing communication and is considered as one of the most important components of the marketing communication. A promotion mix is a key method for delivering a relevant promotion message via the most suitable channel for each segment. Improves communications with clients. Companies develop a promotion mix trying to speak their consumers language. If prepared correctly, it helps build trust between the brand and its customers. ……………………………………………………………………………………………………… 7