Assignment on promotion mix free essay sample

Promotion involves disseminating information about a product, product line, brand, or company. It is one of the four key aspects of the marketing mix. (The other three elements are product marketing, pricing, and distribution. ) To generate sales and profits, the benefits of products have to be communicated to customers. In marketing this is commonly known as â€Å"promotions†. It consists of a diverse collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade. From marketing point of view, Promotion informs, persuades, and reminds prospective and current customers and other selected audiences about a company and its products. The most useful brand is failure if no one knows it is available. Promotion Techniques Promoting your business can take different forms. You can promote it online and offline. Promotion is a very important part of every business imaginable. If you don’t promote it, how are customers supposed to know about it? Here are some very effective ways to promote your product or services. We will write a custom essay sample on Assignment on promotion mix or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Specific combination of promotional methods such as print or broadcast advertising, direct marketing, personal selling, point of sale display, merchandising, etc. , used for one product or a family of products. Six main promotion Tactics 1. ADVERTISING 2. SALES PROMOTION 3. PUBLIC RELATIONS 4. PERSONAL SELLING 5. PUBLICITY 6. DIRECT MARKETING The factors that guide a marketer’s decision in selecting a promotion mix are:- Nature of the product market. Overall marketing strategy. Buyer readiness stage. Product life cycle stage. ADVERTISING The means of providing the most persuasive possible selling message to the right prospects at the lowest selling message to the right prospects at the lowest possible cost. Kotler and Armstrong provide an alternative definition:- â€Å"Advertising is any paid form of non-personal presentation and promotion of ideas, goods and services through mass media such as newspapers, magazines, television or radio by an identifies sponsor†. SALES PROMOTION â€Å"An activity designed to boost the sales of a product or service. It may include an advertising campaign, offering free gifts or trading stamps, arranging demonstrations or exhibitions, setting up competitions with attractive prizes, temporary price reductions, door-to-door calling, telemarketing and personal letters on other methods†. More than any other element of the promotional mix, sales promotion is about â€Å"action†. It is about stimulating customers to buy a product. It is not designed to be informative – a role which advertising is much better suited to. Publicity refers to non-personal communications regarding an organization, product, service, or idea not directly paid for or run under identified sponsorship . it usually comes in the form of news story, editorial, or announcement about an organization and/or its products and services. Techniques used to gain publicity include news releases, press conferences, feature articles, photographs, films, and videotapes. PERSONAL SELLING Personal selling is oral communication with potential buyers of a product with the intention of making a sale. The personal selling may focus initially on developing a relationship with the potential buyer, but will always ultimately end with an attempt to â€Å"close the sale† Personal selling is one of the oldest forms of promotion. It involves the use of a sales force to support a push strategy (encouraging intermediaries to buy the product) or a pull strategy (where the role of the sales force may be limited to supporting retailers and providing after-sales service). PUBLIC RELATIONS â€Å"The planned and sustained effort to establish and maintain goodwill and mutual understanding between an organization and its publics†. Public relations activities include, press releases. Company literature, videos, websites and annual reports. DIRECT MARKETING Direct marketing is concerned with establishing an individual relationship between the business offering a product of service and the final customer. Direct marketing has been defined by the Institute of Direct Marketing as: â€Å"The planned recording, analysis, and tracking of customer behavior to develop a relational marketing strategies†. The process of direct marketing covers a wide range of promotional activities, these include: Direct-response adverts on television and radio Mail order catalogues E-commerce Magazine inserts Direct mail Telemarketing OBJECTIVES FOR PROMOTION BUILD AWARENESS. CREATE INTEREST. PROVIDE INFORMATION. STIMULATE DEMAND. REINFORCE THE BRAND. Marketing Strategy For each target market, management must design a Marketing strategy, which includes the designing of the marketing mix. The Marketing Mix is the combination of multiple aspects of the following four elements: a product, how it is distributed and promoted, and its price. These four elements are intended to please the target market(s) and, equally important organization marketing objectives. The Companys strategy is guided by several fundamental principles. Nestles existing products grow through innovation and renovation while maintaining a balance in geographic activities and product lines. Long-term potential is never sacrificed for short-term performance. The Companys priority is to bring the best and most relevant products to people, wherever they are, whatever their needs, throughout their lives. Nestle is committed to the following Business objectives in all countries, taking into account local legislation, cultural and religious practices: Nestles business objective is to manufacture and market the Companys  products in such a way as to create value that can be sustained over the long term for shareholders, employees, consumers, and business partners. Nestle does not favor short-term profit at the expense of successful long-term business development. Nestle recognizes that its consumers have a sincere and legitimate interest in the behavior, beliefs and actions of the Company behind brands in which they place their trust, and that without its consumers the Company would not exist. Nestle continues to maintain its commitment to follow and respect all applicable local laws in each of its markets. Promotional Mix of NESTLE Nestle is using following methods for promotion: Advertising The Nestle are the broadcast there products (TV and Radio) and print media (newspapers and magazines). The Nestle also uses other advertising vehicles like billboards, T-shirts and, more recently the Internet. Nestle has its own website which is giving the information about the different brand of the company. Nestle is doing the selective demand advertising that is intended to stimulate demand for individual brands. In the advertisement the message is given that, And in recent advertising campaign, their slogan is,†JIYO! Kay yehi hay zindagi†. On billboards the pictures of Nestle kitkat choclate advertisement seems so attractive, especially teenager and child groups that motivates the customer to purchase it. Nestle has the internal advertising department as well as hire the services of the external Media manager assisted by its assistant to devise all campaigns†¦Ã¢â‚¬ ¦ Sales Promotion It is demand-stimulating activity designed to supplement advertising. It is paid for by the sponsor and frequently involved a temporary incentive to encourage a sale or purchase. Many sales promotions are directed at consumer. Nestle has designed it in a way to encourage the company’s sales force or other members of the distribution channel to sell products more aggressively. Nestle India limited arranges concerts, trade shows, event sponsorship, in-store displays, and discounts. In Nestle, a separate sales department is working. The function of this department is to taking the sales orders, visiting the market, collecting the customer’s complaints and transferring to the concerned department. They also make sure the availability of their products (Kitkat, Munch, Polo, Milkmaid, Maggi etc. ) to the consumer at right time and at right place. Public relations It encompasses a wide variety of communication efforts to contribute to generally favorable attitudes and opinions toward an organization and its products. Unlike most advertising and personal selling, it does not include specific sales message. The targets may be customers, stockholders, a government agency, or a special-interest group. Public relations can take many forms, including newsletters, annual reports, lobbying, and support of charitable and civic events. Nestle is following all above mentioned public relations forms: The company assists through donations such hospitals and organizations that provide services to the poor and responds to distress calls by the government and NGOs for assistance to victims of flood, earthquake, drought and other natural calamities. The company arrange mil program for undernourished and sick children and mothers through several NGOs and charitable organizations. The company has initiated a tube well and hand pump installation scheme in selected rural areas. It donates computers to schools for disadvantaged children run by NGOs and charitable organizations. To support the spread of education in rural areas, it undertakes Refurbishment Program of Govt. operated primary and middle schools. The Company regularly sponsors sports and cultural events, such as the International Polo Tournament and SAF Games in the recent past. The company gives the extra gifts, calendars and diaries to the employees and customers for public relations. Publicity Publicity is also a promotional method used by the Nestle. Publicity is specific form of public relations that involves news stories about organization or its products. Like advertising, it consists of an impersonal message that reaches a mass audience through the media. But several features distinguish publicity from advertising. The company does not pay for it and it has little or no control over this and it appears as news and therefore has grater credibility than advertising. The company seeks for good publicity and frequently provides the material for it in the form of news releases, press conferences, and photographs. When a picture of a company’s CEO appears on the cover of business publication and it accompanied by a flattering article in the magazine, it is often attributable to the efforts of the firm’s public relations department. Integrated Marketing communication Nestle is using the integrated marketing communication system. In this, company is trying to coordinate all promotional efforts make an effective impact on the customer mind and to deliver a consist message. The Nestle has incorporated several different promotional campaigns. Depending upon the objectives and available funds, it undertakes simultaneous local, regional, national, and international programs. Findings and Recommendations This is competitive world and must never forget that customers have a choice. If they are not satisfied with a Nestle Pure Life, they will switch to another brand. The pursuit of highest quality at any price is no guarantee for success, nor is a single-minded cost-cutting approach. Lasting competitive advantage is gained from a balanced search for optimal value to customers, by simultaneous improvement of quality and reduction cost. Success can never be taken for granted. Nestle must watch and learn from its competitors. If they do something better, Nestle must improve its own performance. Nestle can achieve competitive advantage through Quality. Progress is followed by listening to Nestle customers and by measuring its works performance. Shortcomings and mistakes must be analyzed and corrected. Problems must be anticipated and prevented before they occur. Nestle also must identify and take advantage of opportunities. To stand still is to fall behind. So Nestle must strive for continuous improvement in every area. It is through many small improvements as well as through major breakthroughs that Nestle will achieve excellence. The company is eager to serve consumers at its every possible level, consumer services department is the evidence of such a pursuit from the organization point of view. Presently the company is market leader in its category but it shouldn’t take it as a complacent attitude rather capitalize on its good brand equity and to improve its quality of product to reap not only more profits for the shareholder but also serve the humanity by providing them healthful water which in other way a noble sacred job. The company can fulfill this job by having such a spirit following it religiously by incorporating it all the marketing strategies.