The Four Major Promotional Tools

The basic idea behind “marketing concept” – that you make what you can sell rather than sell what you make – does not mean that your product will sell all by itself. Even a good, attractively priced product that clearly satisfies a need has to be made known to its target customers. During the introduction and growth stages of the standard product life cycle, the producer (or importer, and so on) has to develop product or brand awareness, i.e. inform potential customers (and distributors, dealers and retailers) about the product’s existence, its features, its advantages, and so on.

According to the well-known “Four P`s” formulation of the marketing mix (product, place, price and promotion), this is clearly a matter of promotion. Since budgets are always limited, marketers usually have to decide which tools – advertising, public relations, sales promotion, or personal selling – to use, and in what proportion.

Public relations (often abbreviated to PR) is concerned with maintaining, improving or protecting the image of a company or product. The most important element of PR is publicity which (as opposed to advertising) is any mention of a company’s products that is not paid for. Many companies attempt to place stories or information in news media to attract attention to a product or service. Publicity can have a huge impact on public awareness that could not be achieved by advertising, or at least not without an enormous cost. A lot of research has shown that people are more likely to read and believe publicity than advertising.

Sales promotions such as free samples, coupons, price reductions, competitions, and so on, are temporary tactics designed to stimulate either earlier or stronger sales of a product. Free samples, for example, (combined with extensive advertising), may generate the initial channel of a new product. But the majority of products available at any given time are of course in the maturity stage of the life cycle. This may last for many years, until the product begins to be replaced by new ones and enters the decline stage. During this time, marketers can try out a number of promotional strategies and tactics. Reduced-price packs in supermarkets, for example, can be used to attract price-conscious brand-switchers and also to counter a promotion by a competitor. Stores also often reduce process of specific items as loss leaders which bring customers into the shop where they will also buy other goods.

Sales promotions can also be aimed at distributors, dealers and retailers, to encourage them to stock new or larger quantities, or to encourage off-season buying, or the stocking of items related to an existing product. They might equally be designed to strengthen brand loyalty among retailers, or to gain entry to new markets. Sales promotions can also be aimed at the sales force, encouraging them to increase their activities in selling a particular product.

Personal selling is the most expensive promotional tool, and is generally only used sparingly, e.g. as a complement to advertising. As well as prospecting for customers, spreading information about a company’s products and services, selling these products and services, and assisting customers with possible technical problems, salespeople have another important function. Since they are often the only person from a company that customers see, they are an extremely important medium of information. It has been calculated that the majority of new product ideas come from customers via sales representatives.

Comprehension questions:

1. What does the basic idea behind “marketing concept” mean?

2. How can you define the Four P’s?

3. What is PR concerned with?

4. What do you know about sales promotion?

5. Is personal selling the most expensive promotional tool? Prove it.

Logos

The best corporate or company logo design is simple (not complicated) and memorable (easy to remember). An eye-catching, or attractive and noticeable, image will be remembered and recognized regardless of size.

· A descriptive design uses an image to depict, or represent, the company’s name or business. The Batman logo is a good example of a descriptive design.

· An abstract design is a symbolic representation and doesn’t show a product or service.

· A typographic design uses the company’s name or initials. This kind of design is also known as logotype.

A design brief for a logo might include:

v Name of company

v Company activity

v Current symbol

v Tagline/slogan

v Client request

v Client preferences: colours

v Client preferences: shapes

v Main competitors

v Logo usage

The type face is the design of the letters used. A typeface may have a number of fonts with different weights and styles, such as roman, italics and bold.

Comprehension questions:

1. What is logo?

2. What does a design brief for a logo include?

3. What is the type face of logo?