Promotion



The Importance of Promotion

  • Increased physical distance between producers and consumers
  • Growth in the number of consumers due to population increase
  • Market expansion due to income growth
  • Increased competition due to the proliferation of substitute products
  • Growth in distribution channels due to the increase in intermediaries
  • Diversification of consumer needs and desires due to income growth; consumers seeking change, superior quality, and features


AIDA MODEL

  • Attention
  • Interest
  • Desire
  • Action
  • Attention: Informing consumers about the products or services offered and drawing their attention
  • Interest: Ensuring that consumers who are already aware of the product or service show interest in it
  • Desire: Creating a desire in the consumer to purchase the product or service to draw interest in a positive direction
  • Action: Converting the desire to purchase into a purchasing action


Characteristics of Personal Selling

  • A personal encounter occurs, meaning a direct and live relationship is established between the salesperson and the buyer.
  • Friendship relations are developed. A friendship relationship is developed with the buyer, thus creating a continuous buying-selling environment between the two parties.
  • Listening and responding are mandatory; communication is two-way.
  • The seller collects the necessary information.


What is Advertising?

Advertising is the work done to promote and popularize products, services, or ideas, targeting large audiences through various media channels for a fee.


Characteristics of Corporate and Brand Advertising

  • Unlike personal selling, large audiences are targeted.
  • It can be repeated and spread everywhere.
  • It can be presented meaningfully and effectively. It can be presented very effectively by using sound, color, and various artistic elements.
  • It is not directed at individuals; since it targets the mass, it is not coercive and is one-way communication.


Public Relations

These are activities aimed at developing and maintaining positive relationships between the brand and its target audience. Promotion is a component of this and typically includes commercial news and interviews conducted in communication channels without payment.

The credibility of public relations is greater than that of advertisements. Public relations activities can reach potential buyers who do not like salespeople and advertisements. The messages conveyed are not directly aimed at sales but are more news-oriented.


Sales Promotion

Sales promotion includes activities aimed at enhancing sales outside of personal selling, advertising, and promotional activities. These activities are usually not continuous and include participation in fairs, exhibitions, displays, and similar activities.


Classifications of Sales Promotion

  • Consumer-oriented: Promotional products, distribution of coupons / bonuses, participation in fairs, etc.
  • Intermediary-oriented: Providing product samples to intermediaries, giving free goods, bonuses, payment ease, sales competitions, etc.
  • Salesperson-oriented: Bonuses, gift certificates, sales competitions, motivation meetings, etc.


Characteristics of Sales Promotion

  • Attractiveness and effectiveness: Sales promotion often yields quick results.
  • Ease of implementation and monitoring: It is easy to implement and its effects are easily measurable.
  • Devaluation of the product: Overuse may lead to doubts about the product's value and price suitability.


Direct Marketing

Direct communication with individually selected consumers through phone, SMS, email, and similar means with the intention of obtaining immediate results.

Direct marketing;

  • Is not general or aimed at everyone. (a specific person is targeted)
  • Involves speed.
  • The message is prepared for the individual customer.
  • Is two-way. (there is two-way communication between the seller and the buyer)


Methods for Determining the Total Promotion Budget

  • Affordable method
  • Percentage of sales method
  • Competitive parity method
  • Objective and task method


Promotion Mix Strategy Alternatives

  • Push Strategy: Primarily targets intermediaries and aims to deliver the product or service to the final consumer through distribution channels. This strategy predominantly includes individual sales and sales promotion activities (sales bonuses, organizing events, etc.). This strategy is suitable for both industrial product manufacturers and many consumer goods manufacturers.
  • Pull Strategy: The manufacturer engages directly with end consumers. It aims to motivate the target audience to request the product from the retailer.


Main Factors Influencing the Selection of the Promotion Mix

  • Promotion budget and costs
  • Market characteristics
  • Product or service characteristics
  • The importance of the product in daily life