Introduction to Promotion

Explain the relationship of promotional strategy to the process of communication.

      Communication is the transmission of a message from a sender (or source) to a receiver (or recipient). Marketing communications are those messages that deal with buyer&-seller relationships. Promotional strategy focuses on the appropriate blending of the promotional mix elements&- personal and nonpersonal selling &-to inform, persuade, and remind present and potential customers and to achieve overall objectives. Marketing communications is a broader term than promotional strategy, because it includes other forms of communication. A planned promotional strategy, however, is certainly the most important part of marketing communications.

List the objectives of promotion.

      The five basic objectives of promotion are to provide information, stimulate demand, differentiate the product, accentuate the product's value, and stabilize sales.

Explain the concept of the promotional mix and its relationship to the marketing mix.

      The promotional mix, like the marketing mix, involves the proper blending of numerous variables in order to satisfy the needs of the firm's target market and achieve organizational objectives. While the marketing mix is comprised of product, pricing, promotion, and distribution elements, the promotional mix is a subset of the overall marketing mix. In the case of the promotional mix, the marketing manager attempts to achieve the optimal blending of personal and nonpersonal selling to attain promotional objectives.

Identify the primary determinants of a promotional mix.  

      Developing an effective promotional mix is complex. The elements of promotion are related to the type and value of the product or service being promoted, the nature of the market the stage of the product life cycle, and the funds available for promotion as well as to the timing of the promotional effort. Personal selling is used primarily for industrial goods and services, for higher&-value items, and during the decision phase of the purchasing process. Advertising, in contrast, is used mainly for consumer goods and services, for lower&-value items, during the later stages of the product life cycle, and during the pre&-purchase and post&-purchase phases.

Contrast the two major alternative promotional strategies.

      A pushing strategy relies heavily on personal selling and attempts to promote the product to the members of the marketing channel rather than to the final user. A pulling strategy concentrates on stimulating final&-user demand, primarily in the mass media through advertising and sales promotion.

Compare the primary methods of developing a promotional budget.

      The percentage&-of&-sales method bases the promotional budget on a percentage of either past or forecasted sales. The fixed&-sum&-per&-unit method uses a predetermined allocation for each sales or production unit; this can be done on either a historical or forecasted basis. The approach of meeting competitors' promotional expenses can be used on either an absolute or percentage basis. The task&-objective approach first defines realistic goals for the promotional effort and then determines the amount and type of promotional activity required for achieving each objective.

Defend promotion against common public criticisms.

            Criticisms of promotion range from lack of social contribution to unethical promotional practices. Marketers acknowledge that many of the criticisms are justified but they also point out the considerable contributions promotion makes via its business, economic, and social roles.