WHAT ARE THE FIVE BASIC TYPES OF PROMOTION?
It is easy to think that once a company produces a product and puts a fairly good price on it, it would sell in the market. However, it is not that easy. The company has to think about promotions and marketing. Thus, a company is not concerned with sourcing for raw materials and manufacturing alone but has to think about how the average final consumer is going to accept the product as the better choice.
However, promotions can be very demanding. It involves a lot of money and resources. The company has to earmark a budget for promotion and still has to maintain a good price to attract final consumers. The types of promotion are being referred to as promotional mix. They would be discussed below.
First, advertising is vital. Word of mouth might reach hundreds but advertising would reach thousands. Advertising is a non-personal form of communication through the use of platforms that would get to as many people as possible. Advertisement could be in form of mass media, social media, bill boards, promotional flyers etc. Advertisement is paid for mostly and the cost is mostly reasonable for the effectiveness it brings to the table. A company willing to promote a new and existing product cannot do without advertisement. It is what would get the news or notification about the goods to the final consumers.
Second, personal selling is effective. This is basically the direct communication and interaction with customers – both present and prospect. By this method, customer can be informed and persuaded about products and promotions as they come up. Personal selling as being reputed to be expensive but compared to its effectiveness, it is a method a manufacturing company should consider. This could be by rack jobbing or by opening retail centers that are exclusively chains of the company. This method helps to create a relationship between the final consumers and the company.
Third, direct marketing is basically keeping up with the customers. Advertisement is made to the entire public but direct marketing is made directly to the final consumer. Direct marketing involves the sending of mails and letters on coupons, promotions, new products, toll-free lines, stores and many others. These mails are sent to persuade or urge the customer to make a purchase or a check a product out. It could also be used in social media platforms with direct approach on customers.
Fourth, sales promotions would definitely bring more customers. When companies want to increase sales or inform the public about a new product, sales promotions are resorted to. The method is very helpful in getting old customers back and getting new ones. This could be in form of additional milligrams to consumer goods.
Fifth, Public Relations are essentials as they give customers a virtual view into the company. Having good public relations helps in keeping a good reputation for the company. Customers and investors would invariably find transparency a virtue they would want to be a part of.