explain 5 current trends in product promotion
Answers
Answer:
-There is stiff competition among sellers of similar products e.g mobile phone services provider.
-Modern technology e.g internet has revolutionized the method of product promotion.
-Consumer awareness has increased and product promotion has become more accurate, truthful &
ethical.
-Many businesses are seeking publicity in the media e.g T.V and newspapers.
-Exhibitions and trade fairs have widely been used as methods of product promotion.
-More emphasis has been put on use of posters, billboards, brochures, travelling salesmen because
of increased literacy.
-There has been increased use of electronic media e.g radios and television in advertising.
Explanation:
Answer:
1. Buy One Get One Free (BOGOF):
The trend of giving one item free with one purchase of one item is becoming very popular not only in urban areas but in rural/sub-urban areas too. For example, if pack of bread is priced at Rs.10 and its actual manufacturing cost is Rs.3 and you two breads for Rs.10, you will be still in profit especially if sales increase due to this BOGOF offer. In retailing this practice is actually known as a premium promotion tactic. The stores use this method because due to increased sales they are able to get benefit because of economies of scale.
2. Customer Relationship Management (CRM):
– The concept of CRM is of twofold: it is a part of retail strategy that aims at creating customers for long-term say whole life and on the other hand, CRM is largely technology driven. The main focus of CRM is on customers rather than products it offers. Examples are incentives such as bonus points, collecting numbers are very popular. Besides this, there are several other examples of CRM, from petrol pumps to malls. This increases long-lasting relationship with the customers.
3. New Media:
With the change in technologies, e-retail, online buying, and vending machines are the fashion of the day. SMS, e-mails, websites and mobile phones are used for the purpose of placing orders. For example Nestle a Swiss MNC printed some individual codes on KIT-KAT chocolate packaging, whereby a customer after buying it, would enter the code into a dynamic website to know whether if he had won a prize/gift or not. Customers also had option to check these printed text codes via their cellular phones. In India, some companies have also started use of such techniques as experimental method.
4. Customers Expectations:
The onslaught of sales promotion activity over the last several decades has eroded the value of the short-term requirement to act on sales promotions. Many customers are conditioned to expect a promotion at the time of purchase otherwise they may withhold or even alter their purchase if a promotion is not present.
For instance, food shoppers are inundated on a weekly basis with such a wide variety of sales promotions that their loyalty to certain products has been replaced by their loyalty to current value items (i.e., products with a sales promotion). For marketers, the challenge is to balance the advantages of short-term promotions offer versus the potential to erode loyalty to the product.
5. E-Retailing:
Sales promotions are delivered to customers in many ways such as by mail, in-person or within print media. However, the Internet and mobile technologies, such as cell phones, present marketers with a number of new delivery options.
For example, the combination of mobile devices and geographic positioning technology will soon permit marketers to target promotions to a customer’s physical location. This will allow retailers and other businesses to issue sales promotions such as electronic coupons, to a customer’s mobile device when they are near the location where the coupon can be used.