When any company launches its new product in the market; its whole success depends on the way, to communicate the product to the consumer/customer. Promotion mix refers to combination of promotional tools used by an organization to achieve its communication objectives. Various tools of communication are used by marketers to inform and persuade customers about their firm’s products. These include advertising, personal selling, sales promotion, publicity & public relations. These tools are also called elements of promotion mix and can be used in different combinations, to achieve the goals of promotion.
Advertising: Advertising is the most commonly used tool of promotion. It is an impersonal form of communication, which is paid for, by the marketers to promote some goods or services. The most common mode of advertising is newspapers, magazines, television and radio.
Merits of advertising: Mass reach, enhancing customer satisfaction, expressiveness, economy
Limitation of advertising: less forceful, lack of feedback, inflexibility, low effectiveness.
Personal Selling: Personal selling involves oral presentation of message in form of conversation with one or more prospective customers for the purpose of making sales.
Merits of personal selling: flexibility, personal for of communication, minimum wastage, development of relationship with the customer, direct feedback.
Sales Promotion: Sales promotion refers to short-term incentives, which are designed to encourage the buyers to make immediate purchase of product or service. Sales promotion activities include offering cash discounts, sales contest, refund, gifts, lucky draw, free sample etc.
Merits of sales promotion: Attention value, useful product launch
Limitation of sales promotion: Spoil product image, if product does not give benefit according to explanation; it reflects crisis, if the supply does not fulfills the demand.
Publicity: Publicity is a non-personal form of communication and it is non paid. It is specially done by the media.
Public relations – Paid intimate stimulation of supply for a product, service, or business unit by planting significant news about it or a favorable presentation of it in the media. Examples: Newspaper, magazines, Television, speeches, issue advertising, and seminars.