Definition: The Product Promotion means disseminating the information about the product, product line, brand and company to the prospective buyers with the intent to generate sales and develop a brand loyalty.
The Promotion is the fourth element of the marketing mix (Viz. Product, price, place, promotion) which is considered as a mode of communication that business adopts for achieving the specific set of objectives such as:
- To provide information about the availability of features and uses of the product to the prospective buyers.
- To stimulate demand for a product by creating awareness and interest among the customers.
- To differentiate the product from the competitor’s product by creating the brand loyalty.
- To stabilize sales by highlighting the importance and features of the product.
Basically, there are four Kinds of Promotion that companies adopt:
- Informative promotion
- Persuasive promotion
- Reminder promotion
- Buyer Behavior Modifications
The basic purpose of promotion is to persuade customers to buy and primarily includes three types of sales activity: Advertising, Personal Selling, and Sales Promotion. The importance of product promotion lies in the fact, that no firm can survive in the market without reaching the customers effectively and could not compete with other market players if no unique benefits are offered to the customers.
There are several types of promotions such as above line promotions (Advertising, press releases, schemes, discounts, etc.) and below the line promotions (trade discounts, freebies, awards, etc.)