Nike Inc Marketing Mix (4PsProduct Place Promotion ice) Analysis

Nike Inc. Marketing Mix (4Ps/Product, Place, Promotion, Price) Analysis

Nike shoes on display at a shoe store. Nike Inc.s marketing mix facilitates the companys global growth based on high quality products, numerous places for distribution, advertising-focused promotion, and relatively high prices. (Photo: Public Domain)

Nike Inc. relies on its marketing mix to maximize its profits and growth. The marketing mix is the combination of strategies and tactics a company uses to execute its marketing plan, with reference to the variables Product, Place, Promotion and Price (4Ps). Nikes marketing mix addresses the key concerns in the companys target markets around the world. Established in 1964, the firm evolves according to the dynamics of the global sports shoes, apparel and equipment market. Nike Inc. effectively does so through its marketing mix. Considering its success in the global market and its leadership in the industry, Nike is a case indicating the significant role of a companys marketing mix in international business.

Nikes marketing mix (4Ps) covers key strategies and tactics the company uses to maintain its leading position in the global market for athletic footwear, apparel and equipment. An analysis of the marketing mix reveals approaches applicable to Nike and similar businesses.

Nikes growth comes with changes in its product mix. This element of the marketing mix enumerates the organizational outputs offered to target consumers. The following broad categories represent Nikes product mix:

Sports shoes are the most popular products from Nike. Through the years, the company has added more product lines for this category. For example, Nike now offers running shoes, tennis shoes, and shoes for a variety of other sports, including cricket. The company also sells apparel, such as jerseys, shorts, and related products. In addition, Nikes product mix now includes accessories and equipment, such as golf clubs. These products are available under a number of brands, including Nike, Nike+, Hurley and Converse. Based on this element of the marketing mix, Nike has succeeded to expand its product mix and address needs of more market segments. This factor corresponds to theproduct development intensive growth strategy of Nike Inc.

Nike sells its sports shoes, apparel and equipment products through a large number of outlets worldwide. This element of the marketing mix outlines the venues where the companys products are sold, accessed or distributed. The following places/venues form Nikes distribution strategy, arranged according to significance:

Retailers are the most significant places where Nike products are sold. These retailers include large firms like Walmart [Read:Walmarts Marketing Mix]. Customers can also purchase Nikes sports shoes, apparel and equipment through the companys online store. The firm also operates Niketown retail outlets. Based on this element of the marketing mix, Nike Inc. has major control over the distribution and sale of its products, especially through the companys official online store and Niketown retail outlets.

Nike depends on the effective promotion of its products to maintain a strong brand image. This element of the marketing mix deals with the tactics the firm uses to communicate with its target market. The following are Nikes promotional activities, arranged according to significance:

Advertising is the biggest contributor to Nikes ability to attract customers. The company heavily relies on advertisements, especially those that involve celebrity endorsers, such as professional athletes and sports teams. In addition, the company uses personal selling through sales personnel who persuade target consumers to buy its products at retailers and Niketown retail outlets. The companys direct marketing activity involves directly persuading colleges, local sports teams and other organizations. Occasionally, Nike also applies discounts and special offers to attract more customers and generate more sales. Moreover, the company sponsors and provides financial support for other organizations to promote the Nike brand of athletic shoes, apparel and equipment. [Read More:Nikes Promotion Marketing Communications Mix]

Nike uses thevalue-based pricing strategyto ensure growth in its sales and profits. This element of the marketing mix identifies the prices the company applies to maximize profits while attracting the desired share of the market. In using the value-based pricing strategy, Nike Inc. considers consumer perception about the value of its products. This value is used to determine the maximum price consumers are willing pay in buying the companys sports shoes, apparel and equipment. In 2014, the company successfully increased its selling prices and generated higher sales and revenues. This trend continues, as the firm enjoys increasing sales revenues while gradually increasing its prices. Based on this element of the marketing mix, Nike Inc. successfully uses the value-based pricing strategy to maximize its profits while emphasizing the high value of its products.

Dominici, G. (2009). From marketing mix to e-marketing mix: a literature overview and classification.

International Journal of Business and Management

Goi, C. L. (2009). A review of marketing mix: 4Ps or more?

International Journal of Marketing Studies

Rahmani, K., Emamisaleh, K., & Yadegari, R. (2015). Quality Function Deployment and New Product Development with a focus on Marketing Mix 4P model.

Asian Journal of Research in Marketing

Van Waterschoot, W., & Van den Bulte, C. (1992). The 4P classification of the marketing mix revisited.

Yun-sheng, W. (2001). Perfection and innovation of 4P Marketing Mix How to evaluate 4P Marketing Mix.

Apparel IndustryCase Study & Case AnalysisGlobal EconomyMarketingMarketing Mix (4Ps)Nike Inc.RetailRetail Industry

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Role of Promotion in the Marketing Mix

Promotions are an integral part of the marketing mix. In general, promotions tend to focus on how to attract the attention of consumers and motivate them to take action or make a purchase. There are many ways marketers can go about promoting a product or service, but it requires strategic research into the target audience and where to find them.

The role ofpromotionin the marketing mix is critical for brands who want to ensure the right consumers are reached and objectives are met. Brands can achieve this by using strategic tactics to connect with consumers to generate a response.

In order to accomplish this, brands must look closely at the many ways to market/promote and decide which methods are most likely to reach the desired consumer demographic. This means taking into account factors such as age, gender, location as well as socio-economic, psychographic and competitive data.

The question then becomes, which type of promotion will deliver the greatest return on investment? While the answer to that question is not always black and white, there are several marketing promotions that have stood the test of time for their effectiveness in attracting customers and growing market share.

With nearly three quarters of Americans claiming to be price sensitive when shopping,rebateshave become an increasingly popular way to promote a brand or service. The perceived value of a rebate is what drives consumers down the path of purchase. Strategies such as show-rooming and other price comparison tactics have forced brands to find more creative ways to grab the attention of consumers both online and in store.

Rebates also offer a lower net-price for their marketing spend, which attracts shoppers while preserving margins for retailers and brands unlike instant discounts. Brands can choose to offer their rebate payments viaprepaid gift cards, giving them an additional marketing boost.

Gift cards also help drive consumers back to the store where they made the initial purchase. Typically about 30 percent of rebate dollars are spent back at the original store where the product was purchased.

Brands and theirfulfillmentpartners have also made the rebate redemption process easier for consumers by offering them the choice of mobile,onlineand mail-in options. In addition, brands can use the rebate-redemption process to collect customer data and opt-ins for future marketing efforts, making rebates an ideal promotion for building long-termloyalty.

Very fewpromotionaltactics can generate more buzz and excitement around a brand than a well-executedsweepstake, game or contest. They can reinforce, extend and enhance brand values, drive customer engagement, foster brand advocates, support in-store andecommercesales strategies as well create high impact with a limited budget.

The power of sweepstakes and contests as promotional vehicles lies in their ability to create an emotional connection, drive interest and engagement. While prizes are important, it is only one aspect of developing an effective, engaging campaign.Legal complianceand risk management are critical factors as well as operational logistics.

Today more than ever, brands have more challenges to connect with consumers and to be relevant. The shopper landscape is rapidly changing and it is now critical for brands to be authentic in ways that engage, drive sales andloyalty.

Sweepstakes and contests can be effective standalone tactics or part of a larger strategic marketing initiative to focus attention, promote a conversation and engage an audience. One of the first things to consider when developing a sweepstakes or contest is how will the promotion support the brands sales goals and what KPIs should be established to measure success? Knowing your budget constraints will also help define the scope of the project.

Working with a promotion fulfillment provider can help you develop a solid plan of action for both the development of the promotion as well as how to optimize consumer engagement.

A key element to a well-executed sweepstakes or contest in todays marketplace is understanding if the promotion is relevant and appealing to your target audience.

Consumers path to purchase is accelerating. Brands must react and find faster ways to compete such as offering dynamic promotions that motivate consumers toward an action or purchase.

While rebates, sweepstakes and contents have proven to be highly effective promotional tactics, careful attention must be paid to the legal aspects to ensure they are in compliance with federal, state and local regulations.

When it comes to rebates, each state has separate guidelines for escheatment reporting (click here to read our escheatment whitepaper). There are also a series of guidelines (per state) regarding proper design of the submission form. The risk of consumerrebate fraudis also prevalent, so it is important to partner with a promotion fulfillment center who can help spot issues such as multiple submissions under fictitious names or counterfeit forms and proofs of purchase.

Sweepstakes and contests are also subject to government scrutiny and the internet/social media have made the rules even more complex. Keeping compliant entails areas such as proper filing of the promotion and disclosure of rules, terms and privacy policy. In addition, the rules must protect all parties involved in the promotion including sponsors and other participants.

In addition to risk and compliance, a good rebate, sweepstake or contest should be highly orchestrated in terms of its logistics, quality standards and supporting documentation to ensure the promotion is executed at the highest possible level and offers a solid paper trail in the event of an audit.

When developing your brand marketing plan, consider including a promotion that motivates consumers, creates engagement, enhances brand awareness and grows market share. The key to making it successful is to be authentic, compelling and compliant.

At PFC, our clients success is our number one priority. Since 1974, PFC has delivered outstanding results, with turnkey solutions infulfillmente-commercerebatessweepstakescouponsandcontact center all backed by leadingtechnology. Brands who partner with PFC have historically achievedconsiderable cost savingsin excess of 35 percent and have significantly improved their turn times. PFC allows clients to focus on their big picture business goals, while skillfully managing all the details. For more information call (800) 493-7063.

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What Is the Difference Between a Marketing Mix a Promotionalix?

A marketing mix and promotional mix have their differences.

[Marketing Strategy] What Is the Difference Between a Marketing Strategy & a Marketing Mix?

[Communication Mix] What Is a Marketing Communication Mix?

[Promotion Mix] Role of a Promotion Mix

[Durable Goods] What Is the Difference Between Durable Goods and Non-Durable Goods?

A marketing mix and a promotional mix have differences, and are both important to your business. In order to successfully grow your business, you will need to market it. Marketing helps attract new customers and keeps customers coming back for repeat business. When you identify your marketing mix, it helps you determine how to satisfy your customers, while the promotional mix focuses on direct customer interaction.

The marketing mix is a planned mix of activities. The ingredients in the marketing mix are product, place, price and promotion. It is a combination of elements that you will use to market your product. Marketers use the marketing mix to create a value for their product. The four elements of the marketing mix are used and adjusted until the marketer gets the results that he wants. For example, pricing decisions are exercised in the form of cash discounts that convince customers to buy.

The marketing mix has four elements which allow you to control your product; they are product, price, place and promotion. Each element is analyzed so that you can achieve success in the marketplace. The product is analyzed for its ability to perform better than your competition. For example, quality and safety can be used as a benefit. Price includes decisions you would make to price your product competitively. Place includes the distribution decision — for example, how to reach your customers in a particular geographic location. Promotion decisions are strategies that you will use to get more customers, such as coupons and sales.

The promotional mix is the coordination of marketing activities which includes publicity, sales promotion, advertising, direct marketing and personal selling. It is a coordination of activities that you will perform to directly interact with your customers. For example giving sales presentations helps you to interact with the customers one on one to answer their questions and demonstrate your product.

The promotional mixs goal is to inform, persuade and remind your customer about your product or service. The promotional mix uses advertising, which is a paid form of non-personal presentation. Personal selling is used either by phone or face to face to the prospect, for example, to address your customers concerns and answer their questions directly. Public relations are firms communicating with their customers, employees and stockholders. It is important that a business have a solid reputation with customers. For example, one way firms communicate is by sending out newsletters or press releases. Sales promotion includes inducements with the purpose of encouraging customers to buy, such as cents off coupons. Merchandising is used in the store to stimulate sales. Examples include displays, signs and posters.

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Lanee Blunt has been writing professionally since 1997. As a freelance copywriter for advertising, public relations and articles, she has handled projects in accounting, mortgages, contracting services and other industries. Blunt holds a bachelors degree in business administration, as well as several writing certificates.

Blunt, Lanee. What Is the Difference Between a Marketing Mix & a Promotional Mix?

Blunt, Lanee. (n.d.). What Is the Difference Between a Marketing Mix & a Promotional Mix?

Blunt, Lanee. What Is the Difference Between a Marketing Mix & a Promotional Mix? accessed May 22, 2018.

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[Product Mix] What Is a Product Mix?

[Marketing Advertising Public Relations] The Difference Between Marketing, Advertising, Public Relations & Sales Promotion

[Difference] What Is the Difference Between Marketing and Advertising?

[Role] The Role of Advertising in a Promotional Mix

[Ten Promotional Strategies] Top Ten Promotional Strategies

[Pull Marketing] Difference Between Push & Pull Marketing

[Promotion Mix] Factors Affecting Promotion Mix

[Marketing Products] Difference Between Marketing Products & Services

[Promotion Plays] What Are the Roles That Promotion Plays in Marketing?

[Main Advertising Objectives] Three Main Advertising Objectives

[Promotional Tools] Marketing Promotional Tools

Promotional mix

From Wikipedia, the free encyclopedia

It has been suggested that this article bemergedwith

integrated marketing communications

Not to be confused withMarketing mix.

Inmarketing, thepromotional mixdescribes a blend of promotional variables chosen by marketers to help a firm reach its goals.[1][2][3][4][5]It has been identified as a subset of themarketing mix.[1]It is believed that there is an optimal way of allocating budgets for the different elements within the promotional mix to achieve best marketing results, and the challenge for marketers is to find the rightmixof them. Activities identified as elements of the promotional mix vary, but typically include the following:

Advertisingis the paid presentation and promotion of ideas, goods, or services by an identified sponsor in a mass medium. Examples include print ads, radio, television, billboard, direct mail, brochures and catalogs, signs, in-store displays, posters, mobile apps, motion pictures, web pages, banner ads, emails.

Personal sellingis the process of helping and persuading one or more prospects to purchase a good or service or to act on any idea through the use of an oral presentation, often in a face-to-face manner or by telephone. Examples include sales presentations, sales meetings, sales training and incentive programs for intermediary salespeople, samples, and telemarketing.

Sales Promotionis media and non-media marketing communication used for a pre-determined limited time to increase consumer demand, stimulate market demand or improve product availability. Examples include coupons, sweepstakes, contests, product samples, rebates, tie-ins, self-liquidating premiums, trade shows, trade-ins, and exhibitions.

Public relationsorpublicityis information about a firms products and services carried by a third party in an indirect way. This includes free publicity as well as paid efforts to stimulate discussion and interest. It can be accomplished by planting a significant news story indirectly in the media, or presenting it favorably throughpress releasesorcorporate anniversary parties. Examples include newspaper and magazine articles, TVs and radio presentations, charitable contributions, speeches, issue advertising, seminars.

Direct Marketingis a channel-agnostic form of advertising that allows businesses and nonprofits to communicate directly to the customer, with methods such as mobile messaging, email, interactive consumer websites, online display ads, fliers, catalog distribution, promotional letters, and outdoor advertising.

Corporate imagecampaigns have been considered as part of the promotional mix.

Sponsorshipof an event or contest or race is a way to generate further positive publicity.

Guerrilla marketingtactics are unconventional ways to bring attention to an idea or product or service, such as by using graffiti, sticker bombing, posting flyers, using flash mobs, doing viral marketing campaigns, or other methods using the Internet in unexpected ways.

Product placementis paying a movie studio or television show to include a product or service prominently in the show.

Integrated marketing communications

Contemporary Marketing 2011 (textbook), Louis Boone, David Kurtz, Cengage Learning, Jan 1, 2010,Elements of the promotional mix, Retrieved Aug. 26, 2014

Essentials of Marketing, Charles Lamb, Joe Hair, Carl McDanie, Cengage Learning, Jan 1, 2011,Discuss the elements of the promotional mix, Retrieved Aug. 26, 2014, (see page 514+)

Sales Promotion: How to Create, Implement and Integrate Campaigns that Really Work, Roddy Mullin, Kogan Page Publishers, Apr 3, 2010,The Promotional Mix, Retrieved Aug. 26, 2014, (see page 30+)

Marketing: Connecting with Customers

. Chicago Education Press. p.286.ISBN02.

Small Business Management: Launching and Growing Entrepreneurial Ventures, Justin Longenecker, J. Petty, Leslie Palich, Frank Hoy, Cengage Learning, Sep 27, 2011,The Promotional Mix, Retrieved Aug. 26, 2014, …how a business combines its promotional methods…blend of nonpersonal, personal, and special forms of communication aimed at a target market…

Promotion and marketing communications

Articles to be merged from January 2017

This page was last edited on 14 May 2018, at 18:09.

Text is available under the; additional terms may apply. By using this site, you agree to theTerms of UseandPrivacy Policy. Wikipedia® is a registered trademark of theWikimedia Foundation, Inc., a non-profit organization.

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The promotional mix is one of the 4 Ps of the marketing mix. It consists of public relations, advertising, sales promotion and personal selling. In this lesson, youll learn how a marketing team uses the promotional mix to reach company objectives and goals.

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The promotional mix is one of the 4 Ps of the marketing mix. It consists of public relations, advertising, sales promotion and personal selling. In this lesson, youll learn how a marketing team uses the promotional mix to reach company objectives and goals.

A marketing plan is focused on the target market and made up of four key elements. These four elements are also knows as the 4Ps. OnePis called thepromotional mixand it contains advertising, public relations, personal selling and sales promotion. They are used as tools to communicate to the target market and produce organizational sales goals and profits.

The new amusement park Fun Town has spent most of this year customizing and fine-tuning their promotional mix. Lets take a look at each element that Fun Town adopted to create an effective promotional communication program.

One of the most important elements of the promotional mix for Fun Town was the creation of a viable advertising program.Advertisingis any form of impersonal (one-way) paid communication in which the company is identified. Fun Town realized that it needed to have a good advertising campaign because this would allow the company to reach a large number of people effectively. Fun Town used television, radio, newspaper, social media and Internet ads to introduce the target market to a grand opening of the amusement park. The park also used giant billboards and e-mails to reach other local customers. They promoted senior citizen discounts, family discounts and grand opening specials to lure the target market into trying a day at Fun Town.

Another promotional tool that Fun Town utilized waspublic relations. The main purpose of public relations is that it helps build a positive public image for a company, supports new product launches and sales, helps a company to evaluate public attitudes and communicates the overall goals of the company. Fun Town has multiple days throughout the year where they donate a percentage of ticket sales to local charities. They also have days where they close the park down and invite disadvantaged youths to enjoy the rides for free. In addition, Fun Town uses their public relations team to handle any negative park issues. For example, if a visitor is injured on a ride, the public relations team must evaluate public attitudes and communicate with the media that the appropriate corporate response occurred.

Sales promotionis another tool in the promotional mix. It contains methods of stimulating consumer purchase and is usually based on a short-term or immediate goal. Examples of sales promotion items are contests, sweepstakes, giveaways, free samples or coupons. Fun Town has invested heavily in sales promotion. They have had contests, like the first 1,000 people in the park would get a prize. They also had giveaways of free Fun Town water bottles, t-shirts, hats and canvas bags. Lastly, Fun Town released a large number of coupons into the marketplace, such as BOGO (buy one ticket, get one ticket free) or 15% off for students, family coupons for 20% off the day, etc.

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The last part of the promotional mix is calledpersonal selling. It is a purchase situation involving a personal, paid-for communication between two people with the end result being an influence of the individual in the specific target market. Most personal selling is used for complicated or highly technical products, such as auto sales, copier or business-to-business products. The key element of personal selling is that it allows a one-on-one relationship to develop, and the customer is able to ask questions and receive specialized product help. Although Fun Town does not have a complicated or highly technical product, they have created a sales force that promotes the amusement park to businesses and schools. The sales team tries to book large parties, school trips and business events at the park. The Fun Town sales team looks to develop long-term relationships with area schools and businesses so that corporate and educational events can be booked at the park. This leads to a large increase in profits!

The promotional mix is one part of the 4Ps of the marketing mix. Companies must decide what parts of the mix (advertising, sales promotion, personal selling and public relations) they want to adopt as part of their promotional mix. Many companies need immediate feedback from their customers and are pressed for immediate sales. In this instance, sales promotion would be an excellent tool to use. In some instances, companies want to utilize paid forms of communication, such as television or radio ads, to reach their target market through advertising. Other companies want to create a positive public image and a long-term relationship with their target market, so they will heavily use personal selling and public relations. In the end, the marketing team must identify what the company objectives are and which tools will help them to achieve those objectives the fastest!

At the end of this lesson, youll be able to explain when, why and how a company should use sales promotion, personal selling, advertising and public relations as part of its promotional mix.

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4 Most Important Elements of Promotion Mix Businessarketing

elements used in promotion are as follows :advertising, sales promotion, personal selling and public relation!

The promotion element of marketing mix is concerned with activities that are undertaken to communicate with customers and distribution channels to enhance the sales of the firm.

Image Courtesy : /wp-content/uploads/2013/08/marketing.jpg

The promotional communication aims at informing and persuading the customer to buy the product and informing him about the merits of the products.

It refers to all the decisions related to promotion of sales of products and services. The important decisions of promotion mix are selecting advertising media, selecting promotional techniques, using publicity measures and public relations etc.

There are various tools and elements available for promotion. These are adopted by firms to carry on its promotional activities. The marketer generally chooses a combination of these promotional tools.

Following are the tools or elements of promotion. They are also called elements of promotion mix:

Advertisement can be defined as the paid form of non-personal presentation and promotion of idea, goods or services by an identified sponsor.

It is an impersonal presentation where a standard or common message regarding the merits, price and availability of product or service is given by the producer or marketer. The advertisement builds pull effect as advertising tries to pull the product by directly appealing to customer to buy it.

From the above definition we can find that the three distinct features of advertising are:

The sponsor has to pay for advertising he has to bear a cost to communicate with customers.

There is no face to face contact between customers and advertiser. It creates a monologue and not a dialogue.

Advertisement is given by an identified company or firm or individual.

Advertising can reach a large market. As through various media of advertising there is benefit of mass reach for example, any message given on All India Radio or TV can reach in different corners of the country wherever TV and Radio network is available.

There is wide variety of media available for advertising for video, audio, visual audio, print media etc. Under each category large variety is available for example, in print media we can select from magazines, newspaper, banner etc. This variety or choice helps the marketer to select the media, keeping in mind the target customer.

In advertisement the messages regarding the product or service are given publicly to customers so there is always a proof for it and customers believe that publicly the company will not give false information of the product. The customer feels comfortable to buy a product which is widely advertised.

Advertising provides enough opportunities to marketers to dramatize the message with the help of drawings, colours, pictures, music, dance

etc. They can easily express the use of product through various techniques, and can add multimedia effect also.

It is always felt that advertising increases the cost of product or service but advertising is considered economical as compared to other promotional techniques because it reaches masses and if we calculate cost per customer it is very low or nominal.

(vi) Enhancing Customer Satisfaction and Confidence:

Customer feel more assured about quality and feel more comfortable if sponsors claim these benefits in advertising.

(i) It is an Impersonal Communication/Less Forceful:

In advertising there is no direct communication between the customer and marketer. The marketer assumes that the message is communicated but the audience or customers do not pay any attention to impersonal messages conveyed through advertising. The response of customer cannot be known in advertising.

In advertising there is only one way communication i. e., communication from seller only, but two way communication is always more effective as in two way communication the customer gets chance to clarify his or her queries. Sometimes customers have many doubts regarding the use of product, these doubts can be clarified only when there is two way communication.

In advertising various media are available. Each media have its own advantages and disadvantages. So the effectiveness of advertisement depends to a great extent on the right choice of media. When choice of media is faulty or wrong no matter how good the advertisement is it will not reach the target customer.

It is very difficult to change advertisement as companies use standardised messages which cannot be changed according to the need of customers.

The evaluation of effectiveness of advertisement is very difficult as there is no immediate and accurate feedback given by the customers.

Advertising has been subject to lot of criticisms. The following are main objections raised on advertisements by a group of people. Along with objections the answers to these objections are also mentioned below:

(i) Effect of Advertising on Values, Materialism and Life Styles:

The major objection on advertisement is that it promotes materialism. The advertisements inform people about more and more products, the use of existing products and the new products are shown dramatically to attract the customers.

This knowledge about more and more products induces the customers to buy more and more products. They start demanding the products which they dont even require. If there was no advertising we would be less aware of material things and we can be more contented.

We do not agree with this objection as it is wrong to say that a person who is least informed is most contented or satisfied. The advertisement increases the knowledge of customers by informing them about various products along with their utilities.

The advertisement only informs the customers, the final choice of buying or not, lies with the customers only.

(ii) Advertising Encourages Sale of Inferior and Dubious Products:

The advertisements show all types of products irrespective of their quality. With the help of advertising anything can be sold in the market.

The objection to sale of inferior goods is not correct because what is inferior and what is superior depends upon the economic status and preference. Every one cannot afford to buy superior quality expensive products but it does not mean they should not use the product.

The lower income group people satisfy their needs with low cost inferior goods for example; those who cannot afford to buy shoes of Nike or Reebok have to satisfy with local brand only. So it is not advertisements which encourage sale of inferior goods; it is ones pocket or financial capacity which decides this.

The real criticism of advertisement is that it encourages sale of duplicate products. Some producers exaggerate the use of products and innocent consumers get trapped in and buy duplicate products.

(iii) Advertising Confuses Rather than Helps:

The number of advertisements shown in TV and Radio are increasing day by day for example, if we take TV, there are so many advertisements of different companies shown such as LG, Onida, Sony, BPL, Samsung, Videocon etc. each brand claiming they are the best. These claims by different companies confuse the customer and it becomes very difficult for him to make choice.

We do not agree with this objection because advertisements give wide choice to customers and todays customer is smart enough to know and select the most suitable brand for him.

(iv) Some Advertisements are in Bad Taste:

Another objection to advertisements is that advertisements use bad language, the way they are speaking may not appeal everyone, sometimes women are shown in the advertisements where they are not required for example, a woman in after shave lotion and in advertisements of suiting etc. Some advertisements distort relationship between employer-employee, mother-in-law and daughter-in-law etc. for example, in advertisement of Band Aid, Detergent Bar, Fevistick, etc.

Although those types of advertisements should be avoided but it cant be an objection because good or bad taste differs from person to person. It is a matter of personal opinion as to what was not accepted by yesterdays generation is accepted by todays generation and they may not find it of bad taste.

(v) Advertisement Costs are passed on to the Customers in the Form of Higher Price:

The most serious objection to advertisement is that it increases the price of product because the firms spend a huge amount on advertisement and these expenses are added to cost and consumer has to pay a higher price for the product or service.

This objection is also not correct because with advertisements the demand for product increases which brings increase in sale and this leads to increase in production. With increase in production the companies can get the economies of scale which reduces the cost of production and thus the increase in cost due to expenses on advertisements gets compensated. So if advertisement is used properly it brings reduction in cost the in long run.

Sales promotion refers to short term use of incentives or other promotional activities that stimulate the customer to buy the product. Sales promotion techniques are very useful because they bring:

(a) Short and immediate effect on sale.

(b) Stock clearance is possible with sales promotion.

(c) Sales promotion techniques induce customers as well as distribution channels.

(d) Sales promotion techniques help to win over the competitor.

Some of the sales promotion activities commonly used by the marketer to increase the sale are:

It refers to selling product at a special price which is less than the original price for a limited period of time. This offer is given to clear off the stock or excessive inventory for example; coke announced 2 liter bottles at Rs 35 only.

This refers to reduction of certain percentage of price from list price for a limited period of time. The discounts induce the customers to buy and to buy more. Generally at the end of season big companies offer their products at discounted price to clear off the stock e.g., seasons sale at Snow-White Jain Sons, Paul Garments, Bhuvan Garments, etc.

This refers to refund or part of price paid by customer on presenting the proof of purchase for example, Rs 2 off on presentation of empty pack of Ruffle Lays.

(iv) Premiums or Gifts/or Product Combination:

These are most popular and commonly used promotion tool. It refers to giving a free gift on purchase of the product. Generally the free gift is related to product but it is not necessary for example, Mug free with Bourn vita, Shaker free with Coffee, Toothbrush free with Toothpaste, etc.

It refers to offer of extra quantity in a special package at less price or on extra purchase some quantity free for example, buy three get one free e.g., this scheme of buy three get one free scheme is available on soaps.

It refers to distribution of free samples of product to the customers. These are distributed when the seller wants the customer must try the product. Generally when a new product is launched for example, when Hindustan Level launched Surf Excel it distributed the samples as it wanted the customers to try it.

It refers to participation of consumers in competitive events organised by the firm and winners are given some reward for example, Camlin Company organizes painting competition, Bourn vita quiz contest and some companies organise contest of writing slogans and best slogan is awarded prize.

(viii) Instant Draws and Assigned Gifts:

It includes the offers like scratch a card and win instantly a refrigerator, car, T-shirt, computer etc.

In this draws are taken out by including the bill number or names of customers who have purchased the goods and lucky winner gets free car, computer, A.C., T.V., etc. Draw can be taken out daily, weekly, monthly, etc.

This includes offers like Purchase goods worth Rs 5000 and get a holiday package or get a discount voucher, etc.

Many marketers offer 0% interest on financing of consumer durable goods like washing machine, T.V. etc. e.g., 24 easy installments 6 paid as front payment and remaining 18 with post-dated cheques. In these types of scheme customers should be careful about the file charges etc.

In this type of sales promotion the free gift is kept inside the pack. The gift is kept in limited products but the excitement of getting the gift induces the customer to buy the product for example, gold pendant in soap, gold coin in Tata tea etc.

This refers to use of special container or boxes to pack the products which could be reused by the customer for example, Pet Bottles for Cold Drinks. This bottles can be used for Steering Water, Plastic Jars for Bourn vita, Maltova, etc. which can be reused by the housewives in kitchen.

The incentives offered in sales promotion attract attention of the people.

The sales promotion techniques are very helpful in introducing the new product as it induces people to try new products as they are available at low price or sometimes as free sample.

3. Synergy in Total Promotion Efforts:

Sales promotion activities supplement advertising and personal selling efforts of the company. Sales promotion adds to the effectiveness of advertisement efforts.

Sales promotion technique makes other promotion techniques more effective. Salesmen find it easy to sell products on which incentives are available.

If firm is offering sales promotion techniques again and again it indicates that there is no demand of product which can create crisis situation.

Use of sales promotion tool may affect the image of product as buyer feel that product is of low quality that is why firm is offering incentives.

Personal selling means selling personally. This involves face to face interaction between seller and buyer for the purpose of sale.

The personal selling does not mean getting the prospects to desire what seller wants but the concept of personal selling is also based on customer satisfaction.

In personal selling the buyers and sellers have face to face interaction. This closeness allows both the parties to observe each others action closely.

In personal selling the sellers give information about the product, at the same time the buyer get a chance to clarify his doubts. It is suitable for sale of complex products where buyer wants to interact with the manufacturer.

When seller is personally explaining the utilities of product to the customers then customer do pay some attention and listen to the information.

When the seller and buyer come together this may improve relation between the customer and seller. Salespersons normally make friendly relations with the customers.

Personal selling is most effective form of promotion because with this the sales person can convince the buyer by demonstrating the use of product and making changes in the product according to the need of customer.

The qualities which are commonly found among effective salesman are described below:

A salesman must have good health and pleasing personality. He must be well built and free from physical defects. A pleasing and charming personality boosts self-confidence. Good grooming, appropriate dress, clean and tidy appearance and a good posture will go a long way in creating a first impression. More importantly, a salesman must always have a cheerful smile on his face.

A salesman must have good manners, courtesy in dealing with customers. The practice of greeting and thanking customers, using polite expression are necessary for success in personal selling. He should not be shy or reserved but an extrovert and a good listener. He must have the ability to say the proper things and do the right thing without offending others.

A good salesman must have a high degree of intelligence, initiative and foresight. He must be intelligent and imaginative enough to understand the customer quickly and read his mind accurately.

Salesman must have two basic qualities i.e., empathy and ego drive. Empathy means he must have ability to understand the problem from customers point of view. Ego drive means salesman must pursue sale not just for money but for recognition and personal success. A good salesman must have presence of mind and good common sense.

The salesman must have full technical knowledge about the product.

Other qualities, a salesman must possess, are:

(i) A salesman must have a good power of memory and observation.

(ii) A salesman must be honest and should not try to win the customer through false and misleading representation.

(iii) A salesman must be a man of sound character, loyal and dependable. He must perform his duties sincerely.

(iv) The salesman must have wide knowledge about the product he is selling and company he is representing.

(v) He must have capacity to inspire trust.

Personal selling plays a very important role in marketing of goods and services. It is important tool for businessmen, customers and society.

Personal selling is an important tool to increase the sale. It is important for businessman due to following reasons:

Personal selling is an effective tool to increase the sale of product. Salesmen explain the merits of products to customers.

Personal selling efforts can be changed according to the type of customer salesmen are attending. They may change the offer in varying purchase situations.

As compared to other methods of promotion in personal selling the wastage of efforts is minimum.

Through personal selling it is easy to get the attention of customer as there is face to face interaction between salesman and customers.

Personal selling helps to create lasting relationship between customers and sales-persons which help in increasing sale.

Through personal selling salesmen can create personal support with the customers. This can improve competitive strength of organisation.

(vii) Very Effective to Introduce New Product:

Personal selling is very effective to introduce a new product as salesman can explain the merits, show the demonstration and clarify the doubts of customers.

Personal selling is very important from customers point of view, as customers can get required information about the product from customers. Customers are benefits by personal selling in the following ways:

Salesmen help the customers to discover their needs and wants and they also help customers to know how these needs and wants can be satisfied.

In personal selling salesmen provide information regarding the new products available in market, uses of those products etc.

Customers can get expert advice and guidance in purchasing various goods and services.

Personal selling induces customers to buy products for satisfying their needs.

Personal selling brings following positive effects for society

1. Converts Latest Demand into Effective Demand:

Personal selling creates effective demand which results in increasing sale and more income. With more income there will be more products and services which in turn bring economic growth.

Unemployed youth can work as salesman and earn their livelihood.

Personal selling offers attractive career with job satisfaction and security.

Sales people move from one place to other, this promotes travel and tourism industry.

With the help of personal selling there can be uniformity of consumption by supplying standardised products.

Apart from four major elements of marketing mix, another important tool of marketing is maintaining Public Relations. In simple words, a public relations means maintaining public relations with public. By maintaining public relations, companies create goodwill.

Public relations evaluate public attitudes; identify the policies and procedures of an organisation with the public interest to earn public understanding and acceptance.

Public does not mean only customers, but it includes shareholders, suppliers, intermediaries, customers etc. The firms success and achievement depends upon the support of these parties for example, firm needs active support of middle men to survive in market, it must have good relations with existing shareholders who provide capital. The consumers group is the most important part of public as success of business depends upon the support and demand of customers only.

Public relations are significant in the following ways:

1. Help to convey the policies and programmes of the organisation.

2. Help to collect information about public opinion about the organisation, management activities etc.

3. To overcome the complaints and dislikes of public.

4. To mould peoples attitude in favour of organisation.

5. To maintain goodwill and understanding between organisation and public.

6. To build an image of the organisation.

The companies can use the following tools to improve their relations with public:

Sometimes companies get involved in such kind of activities or make such policies so that they get some positive coverage in news. For example, a companys name may be covered in news for reservation of jobs for women or for introducing new technology etc.

The speeches given by the leaders of corporate sectors influence various members of public specially banks, shareholders etc. Public relations department creates occasion when the speeches are delivered by the leader of company.

Events refer to organizing press conferences, multimedia presentation, matches, stage shows etc.

Sometimes written materials such as Balance Sheet, Annual Reports, Special documents, Brochures etc. are circulated to various parties to improve and maintain public image of the company.

Big business houses often associate themselves with various social service projects such as women welfare programmes, charity shows, up-keeping of parks, planting trees on road side, training schools, running schools, colleges, hospitals etc.

3 Most Important Components of Product Mix Business Marketing

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Promoting Products 5 Components of the motional Mix

Promoting products is important for any business because of the lasting impact promoting

has on customers. The promotion mix is the essence of what promoting is and how promoting is done effectively. Advertising, sales promotion, personal selling, public relations, and direct marketing comprise the promotion mix. These tools are used to communicate customer value and build customer relationships persuasively (Kotler, 2010). With the correct blend of the promotional mix being used effectively, a business will continue to gain customers and achieve both short and long term success.

Personal selling, the most costly tool in the promotional mix, is one of the most effective

Relationship BuildingPersonal selling is effective because a long-term relationship between the customer and employee is cultivated creating a customer that will continue to come back. This is primarily beneficial when dealing with customers that will be spending large amounts of money. This customer could be purchasing ovens for each of his/her fifty restaurants or the customer could want a hotel for one hundred people. Building this relationship will increase the possibilities for future opportunities with this customer if expectations are met.

RisksThere are certain risks associated with this method. The customer could decide that he/she does not want or need the products or services anymore which in turn causes the company to lose money. Companies spend more money with personal selling creating a much larger risk because the company relies on a salesperson to cultivate a relationship with a customer that could eventually falter. Direct Marketing is comparable to personal selling.

Direct marketing uses technology to individually target customers. Examples of direct marketing are mail, e-mail, apps, catalogs, and telephone calls.

E-MailChiles has an email club that sends out deals and specials. These specials are incentives to come in and receive something free in exchange for purchasing an entre. Furthermore, sends out recommendations based on previous purchases. This type of direct marketing is intended for customers to look at these recommendations and make a purchase with m or Chiles.

Ability to Mass MarketDirect marketing is very useful to a company when marketing to many people, but individualizing the central message for each person.

Why Direct Marketing?Individuals spending small amount of money at different times will typically be considered for direct marketing because those customers are not spending as much money as frequently.

Public Relations is very important to any business, but is often overlooked because many

associate Public Relations as dealing with negative situations that affect a company.

DynamicA Public Relations Director must be very dynamic to deal with both negative and positive situations.

Positive ApplicationsOn a positive note, a Public Relations campaign is used through grand openings, press releases, social media, newsletters, and major events. Social media is a major source for PR campaigns to utilize because social media is seen by the masses. Take Facebook for example, a restaurant introducing a new item on a menu or a seasonal item could post it to their Facebook page generating likes and people sharing this with friends. Grand openings and events could also be announced on social media sites generating the same type of response.

Negative AspectsDealing with negative situations is something a PR director must be able to effectively handle.

How to Handle a Foodborne IllnessA foodborne illness could potentially occur at an establishment that serves food. A PR director should be the only one to address the media. All other employees of the company should make no contact with the media and refrain from answering any questions the media might ask. The PR director should state the facts of the foodborne illness in reference to the situation. The PR director should also contact the health department notifying them about the outbreak. Any questions the media has should be directed to the PR director and answered with honest responses. Avoid creating a positive image of the company in initial stages. This will be faced with criticism. Instead empathize with victims of the outbreak.

Sales promotions are a great way to get customers to buy a product or service quickly.

Attraction FactorSales promotions are especially valuable to the hospitality industry because people may not want to pay full price for a vacation package, but when they receive a promotion for 15% off, they are immediately more attracted to the offer. Restaurants also use sales promotions as a way to bring people to the restaurant and boost sales. Restaurants send out tons of coupons through email for a free liter bottle of soda, a free dessert, a free appetizer, or a free drink at the bar. All people love free stuff. This coupon is sent out with FREE written across it, but the fine print says the individual must purchase an entre or something similar to receive the free item from the coupon. People continue to use these coupons because of the perceived value of getting something for free. These promotions are easy for restaurants to keep track of because servers must write down the coupon number from the email. When the sales promotion is over, tally up how many of those coupons were used based on the number of coupon codes received by the servers.

BundlingAlso, many restaurants are bundling food, for example two entrees with a dessert or an appetizer for a set price. This promotion basically gives you the appetizer or dessert for free because the two entrees on the regular menu cost the same as the price of the promotion. This is easily traceable in the POS systems used by many restaurants. The menu prices stay the same in the restaurant and are not affected by the promotion because by selling the entre, or two entres, the restaurant does not lose that much money by giving something away for free, especially if many people use the coupons or use the package deal. A promotional mix focuses on the different promotional tools to achieve the advertising goals that are specific to each individual company.

Advertising will also play a role for promoting business. Billboards, Newspapers, Radio, Television, and Social Media Advertising all play a role in how customers will be targeted and how many will respond to the advertisement message.

Social Media MarketingThe traditional forms of advertising are going by the wayside and social media marketing is taking over. Focusing on social media marketing, specifically Facebook, is a crucial step in communicating with customers. This is because Facebook is heavily trafficked and used on a daily basis by individuals around the world. Furthermore, it is instantaneous. The moment a company makes a post on Facebook, it becomes available for everyone to see, like, and share. This makes it very easy for companies because it does not require a middle-man to place their add for them; they can now do it themselves at their convenience. Furthermore, Facebook gives users the ability to target individuals by geographical location, likes and interests, gender, age, and other demographics making it even easier to direct advertising messages to the consumers they want to buy their products. Social Media Marketing is the way to go about advertising in the 21st Century.

A promotional mix is important to the success of a firm because all firms want to

promote and grow their firm to generate more revenue. By using promotional tools, a firm can bring in new customers and encourage these customers to come back through high quality service. A good promotional campaign starts with the promotional tools, but a great promotional campaign uses the promotional tools along with great customer service to create customer loyalty, realizing the potential loyal customers have on future business.

1) Kotler, P., Bowen, J. T., & Makens, J. C. (2010). Marketing for Hospitality and Tourism (5th ed.). N.p.: Prentice Hall

Promotion and Promotional Mix

Basically personal selling is one-to-one communication between seller and prospective purchaser. It generates direct contact with prospects and customers. It is one of the most expensive forms of promotion.

Examples: personal meetings, telemarketing, e-mails, and correspondence

Advertising is a form of nonpersonal promotion. It is when companies pay to promote ideas, goods, or services in a variety of media outlets. It can be found everywhere. With advertising, a company engages in a one-way communication to the prospect or customer.

Examples: magazines, newspapers, television, websites, city buses, etc.

Direct marketing is a type of advertising directed to a targeted group of prospects and customers rather than to a mass audience. Two formsof direct marketing are printed by mail, or direct by e-mail. The goals of direct marketing are to generate sales or leads for sales representatives to pursue. Direct marketing allows a business to engage in one-way communication with is customers about product announcements, special promotions, bulletins, customer inquiries, and order confirmations.

Sales promotion basically represents all marketing activities other than personal selling, advertising, and public relations. Sales promotions are used to stimulate purchasing and sales and the objectives are to increase sales, inform potential customers about new products, and create a positive business or corporate image.

Examples: coupons, product samples, point-of-purchase displays

Public relations activities enable an organization to influence a target audience. Most of the time, public relation campaigns try to create a favorable image for a company, its products, or its policies. Companies give news releases to announce newsworthy developments about a companys products or services, distribution channels, facilities, operations, partners, revenues and earnings, employees, and events.Publicityis one tactic that public relations professionals use. This means bringing newsworthy information to the public.

Examples: a campaign to encourage businesses to donate computers to schools, donating to hospitals, donating to a cause

The Role of Advertising in a Promotional Mix

Local newspaper ads are a common delivery mechanism for small businesses.

Thomas Northcut/Lifesize/Getty Images

[Promotion Mix] Role of a Promotion Mix

[Promotional Tools] Marketing Promotional Tools

[Functions] 7 Functions and Effects of Advertising

[Role] The Role of Advertising in Media

The promotional mix is the blend of methods used by a company to deliver company, brand and product messages to target customers. Advertising, public relations, direct marketing and selling are common components of a complete promotional mix. Advertising is generally one of the most important promotion methods and the one with the largest budget.

One of the strongest distinctions between advertising and other forms of promotion is that you pay for ad messages, buying time or space on a particular medium. Paying for placement gives you greater control over the design, timing and location of your message. In public relations, you can have some influence, but media reporters can write negative stories just as easily as they can positive ones.

Much of advertising centers on the development and maintenance of a brand image. Building a brand image is an important first step for a successful business. Your messages convey what makes your company, products or service distinct from competitors. However, some brand messages are more intangible, emphasizing qualities such as luxury, sophistication, class, social belonging, relaxation and fun.

Your value proposition is the mix of product or service benefits and price that you offer a particular target customer group. You can base your value on top quality, elite service, organic materials or ingredients, environmentally-responsible behavior, low price or unique designs. Since you control ad messages, you have a greater ability to set out for customers why your brand has superior value. PR includes dealing with negative issues and sales doesnt allow for preplanned message strategies and development.

Unlike direct marketing and selling, advertising is a one-way, passive form of promotion. You deliver a commercial or print ad and must research or watch business results to find out whether the message affected customers. For this reason, much of advertising is intended to promote brand recall or to persuade customers to buy. If your business sells complex or expensive goods, you often need sales staff at the point-of-sale to interact with customers and overcome their concerns or objections.

Neil Kokemuller has been an active business, finance and education writer and content media website developer since 2007. He has been a college marketing professor since 2004. Kokemuller has additional professional experience in marketing, retail and small business. He holds a Master of Business Administration from Iowa State University.

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Kokemuller, Neil. The Role of Advertising in a Promotional Mix.

Kokemuller, Neil. (n.d.). The Role of Advertising in a Promotional Mix.

Kokemuller, Neil. The Role of Advertising in a Promotional Mix accessed May 22, 2018.

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[Business Promotion] Role of Advertising in Business Promotion

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