The term ‘promotion’ is not exactly the same as ‘selling’. But sometimes, these two terms are used as synonyms. Selling is a narrow term which includes only transfer of title from seller to buyer. Promotion, on the other hand, is broader in its outlook and includes a variety of activities used ultimately for increasing sales volume.
Objectives of Promotion
The following are the objectives of promotion: –
- Communication: Communication is the basis of all marketing efforts. It is the main objective of promotion to inform the consumers or prospective consumers about the availability, features and uses of the products. Information tools are advertising, sales promotion, personal selling and other modes which communicate properly to the consumers about the product/ services.
- Convincing: It is not enough merely to communicate. Ideas to be communicated must be convincing so that necessary action (purchase) may follow. In other words, dissemination of information must produce marketing results. For this purpose, sellers should differentiate their own products with those of the competitors by creating brand loyalty. New or outstanding feature of the products should be highlighted in a manner most convincing to consumers.
- To Motivate Consumers: The next objective of promotion is to motivate the consumers to purchase the produce. For this purpose customers should be reminded time and again to purchase the product and services of the company by highlighting the main characteristics of the products with a comparative analysis of competitive products. Demand should be stimulated by creating awareness and interest among customers.
Importance of Promotion in Marketing
Promotion plays an important role in stimulating demand and sales of the product. Its importance may be gathered from the following facts:
- The activity of promotion has become important because of the widening of the market. The physical distance between producers and consumers and also the increase in the number of prospective buyers, promotion has gained-importance. The producer is now to inform all prospective consumers to capture a major share of the market.
- In modern times, there is a cut throat competition in every field. New and new products and producers are entering the market and every producer wants to sell’s products first. In order to meet the competition, the producer is to make the customers/ prospective customers of his products and their outstanding feature along with a comparative view of the competitors products. This helps the consumers to select the right type of product.
- There are a number of channels of distribution. The producer should not only inform the consumers but he should also inform about the product to the middlemen because they have to present the goods to the middlemen next in the hierarchy and to the consumers. The middlemen should be well versed in the characteristics of the goods.
- Promotion expenses are the highest of all the marketing expenses. They should be properly and strictly controlled and should be paid’ due attention.
- In depression, the importance of promotional activities is greater because at such a time, the main problem is that of sales of goods and services.