Name and explain three objectives of promotional strategy.
The main objective of a company's promotional strategy is to make sure that the consumer is aware of the product. To effectively communicate the differentiated benefits of your product to the market.
Promotional Strategies include, advertising, public relations, personal selling and sales promotion.
Creating the appropriate mix of elements in the promotional strategy is vitally important to the product's success.
Presenting the product to the target market is accomplished through the promotional strategy.
A second clear objective of promotional strategy is to create brand loyalty. In the first step of the strategy you create brand and product awareness, then the marketing process attempts to create an ongoing relationship with the customer which will result in repeat buying or brand loyalty.
A third key objective of the promotional strategy is to stimulate demand for the product through the use of effective sales promotion techniques such as free samples, coupons with both retailers and consumers to create short term demand that you anticipate will develop into continuing long-term demand for the product.
Promotion or, more correctly, sales promotion refers to different types of actions that sellers or marketers take to increase sale of a particular product for a short term.
This should not be confused with the term promotion used in the classic concept of "P's of Marketing Mix" - which include Product, Price, Promotion and Place. As one of the component of marketing mix, promotion refers to all the communication from a company directed towards is customers including advertising and selling. However, the term promotion is rarely used in this sense except in context of marketing mix.
Sales promotion include a wide variety of programs such as distribution of samples and free trials, special reduced prices or extra quantity for same price, free gifts, prizes based on draws or lottery, patronage awards, and point of purchase displays and demonstrations and extra incentives to sales personnel.
A promotion program may be designed to achieve one or more of the following objectives.
- Induce customer to try out a new product not used by them. This can result in customers switching their brands.
- Attracting switchers from competing brands.
- To increase repurchase rate of existing customers.
- Encouraging off season buying and reducing surplus inventories.
- Encouraging purchase of larger-sized units.
- Building brand loyalty
- Persuading retailers to carry additional items and higher stocks.
- Consolidate long term relationship with retail outlets by, for example, providing Free advisory services or free display material and equipments to be used at point of purchase.
- Encouraging sales-persons to put in extra efforts for selling of specific products.