Forms of promotion (wk 3)

Product promotion involves the passing of information to public about the features of a

product and persuading them to buy. Below are various forms of promotion adopted by firms.

Sales promotion

This is any initiative undertaken by an organization in order to promote an increase in sales or usage of a product or service. It can also be undertaken in order to get rid of goods with slow-selling lines. The two forms of sales promotions are consumers and trade promotions. Some of the methods used are:

• Free gifts/samples• Competitions and prize draws• Trade fair• Premium offer• Buy-one-get-one-free etc

Some of the reasons for the use of sales promotion are:

• To encourage frequent use of a product.• To boost sales in a particular geographical

area.• To offset price competition• To stimulate off peak period sales• To encourage the sale of products with slow-

selling lines

Customer services

This can be seen as series of activities designed to enhance customer’s satisfaction before, during and after a purchase. Customer services is divided into;

• Pre-sales services which are provided before the goods are bought, such as granting of credit, sorting of goods, giving personal attention etc.

• After-sales services are extra services granted to customers after purchases had been made in order to encourage continuous patronage. These include home delivery, free installation services, free replacement of faulty parts under guarantee.

Public Relation

These are strategies adopted by a firm in order to endear/attract itself to the general public and acquire goodwill.

Importance of public relation include• Maintenance of a favourable relationship

between an organization and its products• Provision of information to the public• Rebuild company’s reputation and images

Media of Public Relations

• Exhibitions• Trade fairs• Gifts/free samples• Feature articles• Sponsored programs• Discharging social responsibilities

Publicity

These are news or information about a product or company with the effect of increasing public awareness of the product or service. It can be on radio, television or press based material

Uses of publicityTo create awarenessTo create goodwill for the companyTo bring prestige to the company.

Forms of publicity

• Photographs• Featured stories• News conference etc

PackagingThis is the process of enclosing or protecting

products for distribution, storage, sale and use in order to avoid harm or damage.

Reasons or advantages of packaging

• For easy handling of the product• Prevent damage to the product• Serves as advertising• Protect both buyers and sellers when handing any harmful

product.Disadvantages• Makes the product to be more expensive• The information on prepackaged goods may be deceitful to

buyers• Actual inspection of the goods is not possible unless the

packaging has to be destroyed.

Advertising: Is the creation of awareness about a company’s products or services.

Product differentiation: Any means used by a producer to distinguish his product from similar products of competitors, example the colour of MTN is yellow.

Branding: This is the act of giving a distinct label, mark or name to a product. Examples Coca-cola, Omo detergent, Close tooth paste.

Labeling: Is any written electronic or graphic communication on the package.

Trade mark: This the use of names, symbols, letter or any combination of these by a company to distinguish its product.

Assignment

• What is public relation?• State and explain five media of public relation

( SSCE June 1996)