Marketing Mix
Marketing mix refers to tools which the marketer uses in order to interact with a market.
- Product Mix
- Price Mix
- Place Mix
- Promotion Mix
1) Product Mix
Product is either tangible (To whom you can touch for example car, bike, T.V) or intangible (Untouchable in nature for example Service offered by internet provider) offered to the customer by the seller to satisfy the customers' needs.
Product Classification
Products or goods can be classified in two categories
- Consumer Goods
- Industrial Goods
A) Consumer Goods
Products which are for direct consumption or which require no further processing for example shirts, bikes, T.V.
Consumer goods are classified into two types.
i) On the basis of durability
1. Durable Products or Goods - Goods which can be used for a longer period of time for ex refrigerators, cars, mobile phones, T.V. These goods are of high price.
2. Non-Durable Products or Goods - Goods have to be consume in short period of time for ex Sugar, salt, etc. These goods are of low price.
3. Services - Services are intangible, inseparable, can't store services, variable and perishable products. Examples: Haircut, appliance repairs. etc
ii) On the basis of consumer's buying behavior and attitude
1. Convenient Goods - Goods which are easily available in the market with of low prices and can be purchased with minimum shopping efforts is called convenient goods for example sugar, soap, salt, and etc.
2. Shopping Goods - The goods which are purchased after some shopping efforts with high prices. Shopping goods are purchased only after the buyer compares the products of more than one store or looks at more than one assortment of goods before purchasing them. Caparison done by consumer on the basis of price, quality, style, and color and etc for example TV, Furniture, Car, Computers.
3. Specialty Goods - These goods are unique in nature, low or high price, available at few selected places only and the buyer puts special efforts in obtaining these goods for example antiques, clothes, jewelry, wedding dresses, cars and etc
B) Industrial Products
These products are used as input or raw material to produce consumer goods for example tools, Machinery.
Industrial Products are classified as:-
1. Materials - These goods are used to finish the production of final goods for example cotton, sugar and etc
2. Capital Goods - These are the final assets which are used by firm to produce final goods.
2) Product Mix
Total number of products or goods that a particular seller or marketer offers to the market is called product mix. It refers to important decisions related to the product such as packaging of product, quality of product, design of product, etc. Another important thing included in product mix is product assortment for example the Hindustan lever deals with soaps, detergents, tea, toothpaste, etc.
Components of Product Mix
- Branding
- Packaging
- Labelling
A) Branding- A Product is anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need. Products include physical objects, services, events, persons, places, ideas or mixes. A brand is the identification of a product. Brand means a name, symbol, design etc that makes one seller’s product distinct from those of other sellers.
Following are the Terms which are related to brand
- Brand Name - The word or words used to identify a product or service of the company and it’s a verbal part of a brand for example L.G, Nokia, Fastrack, etc
- Mark/Logo – It is a visual sign or trademark of a brand for example Pepsi sign of red and blue ball, Nike sign of arrow, Ferrari sign of black horse with yellow background and etc
- Tagline - Allahabad Bank’s tagline is “A tradition of trust”, Bank of Baroda’s tagline is “India’s International Bank”.
- Colors – It means different colors given by different companies to their products.
- Shape - It means different shapes of the products.
- Trade Mark – Trade Mark is the part of brand which is given legal protection is called trade mark and no firm can use the name or sign for which a company get legal protection.
Features of a Good Brand Name
- Brand Name should be short and simple for example Dina, Lux, Nokia, Samsung etc
- It should be easy to pronounce.
- It should be unique and distinctive for example Tide, Surf.
- Flexible and expandable
- Fits within company’s brand portfolio
- Legally available and defensible
- Linguistically clean
- Embraces company personality
B) Packaging – The companies always supply the products in packaged form for example Oil in jar, Surf in plastic bag.
3 levels of Packaging
- Primary Package - The package, which has enclosed the actual commodity, is called primary package. Such package remains attached with the actual commodity until the consumers have completely used it. Tooth paste-tube, bottles of medicines, cigarette packets, match box etc. are the examples of primary package.
- Secondary Package - The layer of cover added to the primary package for its protection is called secondary package. After bringing the product home or being ready to use the product, the secondary package is taken-off or thrown. The cardboard-box in which tube of toothpaste is packed, the cover of soap etc are the examples of secondary package. The consumers do not keep secondary package for long.
- Shipping/Transportation Package - Shipping package is used to facilitate, identification, transportation, handling and storing the products. Shipping package is very important and necessary for the products of whose nature is to keep store for long time, to carry far away and need to be loaded and unloaded several times. Under shipping package, there may many primary and secondary packages. Wooden boxes, cartons, cardboard boxes, plastic boxes etc. are the examples of shipping package.
Classification of Packaging
- Family Packaging - If a manufacturing firm uses same type and same design of package for all kinds of its products, this is called family packaging. For example, if a producer uses same or common design of package for different types of soaps, it is called family packaging. This is also called 'product line packaging' or 'packaging the product line'. This works as family brand. If any new product is added to the product line, its promotional value is related with old product. However, the use of family packaging is suitable only for the producers, which are same in use and equal in quality.
- Reusable Packaging - The package or container, which can be used for any other purposes, is called reusable packaging. Cheese packed bottle can be used to put juice, oil or pickle after the cheese has been finished. The reusable packaging motivates consumers to buy product again and again to make good set of reusable containers.
- Multiple Packaging - The package or container which can be used to put or pack varieties of goods is called multiple packaging. A single container or kit can be used to put different make-ups or cosmetic materials. Multiple packaging has proved to be helpful in increasing aggregate sales of products.
Apart from the above mentioned types of packaging, carriage or distribution packaging, container packaging, etc. are also found in use.
C) Labelling - Labelling means putting identification marks on the package. Label is the carrier of firms information for example name, MFD, Price, Name of Manufacturer, etc
Labels can be divided in four types.
- Brand Label - If only brand is used on package of a product, this is called brand label. Brand itself is expressed in label for example label is used on soap e.g., Lux, Hamam, Rexona etc.
- Grade Label - Some products have given grade label. Grade label shows the grade of the product. It shows the quality of products by words, letters, or figure. A,B,C,D grade can be put on peas packed into cans. Similarly, grade label can be mentioned as 1,2,3,4 grades for packed wheat,. Some firms may use labels as good, better, best etc. on their products.
- Descriptive Label - Descriptive label give information about the feature, using instruction, handling, security etc. of the products. Descriptive label is used for the products whose grade cannot be differentiated.
- Informative Label - Informative label gives information about the product. Using method and security of the product, name of the producer, manufactured date, expiry date, name of intermediary, additional instructions regarding the use of the product etc. are mentioned in informative label. Descriptive label gives general information about the product whereas informative label gives maximum information about the product including its use, manufacturer etc.
Function of labeling
- Labeling identifies the product - Label helps to identify the product and brand. It popularizes the product and its brand name.
- Labeling grades the product - Label helps to express grade of the product. For example, wheat can be express with the grades such as 1, 2, 3, and 4. Label becomes useful to grade any product according to its quality.
- Labeling describes the product - Label gives introduction of the product, describes and expresses its grade. Information and instructions about- who manufactured the product, when and where it was manufactured, how many ingredients have been used in it, how to use the product, how to keep the product safe, etc. are given on the label. This becomes helpful to the customers.
- Labeling promotes the product - Label helps to promote the product. Customers' attention is drawn by attractive and fascinating graphs, figures or marks. This motivates the customers to buy the product. Label plays an important role in sales and distribution as it makes the customers take buying decision.
- Labeling protects the customers - Label protects the customers. As maximum selling price, quantity, quality etc. are mentioned on the label, the customers are protected from the possible malpractice of middlemen.
2) Price Mix - Price mix refers to important decisions related to fixing of price of a commodity. These decisions can be related to price of competitors, decisions related to demand, decisions related to fixing cost, etc. Price is an important mix in marketing mix. Price is taken to be such a standard on which the success of marketing program depends. So, marketing manager should pay attention to price mix while formulating marketing program. Commonly, price means the cost or monetary amount to be paid for receiving certain goods or services. In other word, price means the exchange of things with value among parties involved in business. In the economic context, price means value of something expressed in money or any other monetary medium of exchange. Tuition fee for education, interest on principal amount, rent for building, fare for taxi, fee for doctor's service, premium for insurance, tariff for electricity use, wages for workers, commission for seller, membership fee for club etc are the examples of price. In marketing, monetary amount paid for receiving goods or services or ideas is called price.
Pricing means the task of determining reasonable price of particular goods or services. Customers should pay certain amount to the producers or sellers for their goods or services they provide. For this, certain monetary value or exchanging capacity of the goods or services should be determined on the basis of their importance. The same is called pricing. Pricing in marketing is to take an important strategic decision.
The Factors kept in mind while fixing the price of a commodity
Price is the crucial element of marketing mix because customer is very sensitive to this element. Little variation in the price may shift your customer to competitor’s product for example; if the price of Pepsi is changed from Rs 8 to Rs 8.50 then the customer will start demanding Coke which is still available at Rs 8. It is therefore important that the pricing decisions are taken with care and caution.
1) Pricing Objectives - What is the objective of firm is a very important factor which helps in deciding the price. For example, if the objective of company is profit maximization then generally high price is fixed whereas the companies having the objective of sales maximization prefer low price to increase the sale and capture a big share in the market.
If the objective of the company is to create a special image with innovative technologies then generally the prices are high for example, the companies like Rolls Royce or Mercedes etc. cannot lower the prices of their product as it will affect their image.
Apart from profit maximization, the pricing objective of a firm may include:
- Obtaining Market Share Leadership - If firm wants to capture big share in the market then it has to keep its price low so that more number of people are attracted to purchase the products.
- Surviving in a Competitive Market - To survive in a competitive market the firms have to reduce their price by offering discounts.
- Attaining Product Quality Leadership - In this case generally high prices are charged to cover the cost and high cost of research and development.
2) Product Cost - The second important factor which is kept in mind while fixing the price is the cost of product or service. The price of the product must be able to cover the total cost of product. Total cost means fixed cost and variable cost. Fixed costs are fixed irrespective of production level for example, rent of factory, cost of machinery, salary of permanent staff etc. The variable costs vary with production e.g., cost of raw materials, wages of labour etc.
The price is fixed after calculating the total cost. In case of high competition and to capture big share if firm has to fix low price then at least the price must cover variable cost and fixed cost can be ignored for some time
3) Extent of Competition in the Market - The third important factor which is kept in mind while setting up the price is the level of competition firm has to face.
When a firm does not face any competition then it can enjoy complete freedom in fixing the price. But when the competition is more than price is fixed keeping in mind the price of competitor’s product for example, Pepsi Company cannot fix the price of its drinks without considering the price of Coke and other cold drinks available in market.
4) Customer’s Demand and Utility - The last but not the least factor which is kept in mind while fixing the price is the demand of product or service when demand of the product is inelastic i.e., no or very less substitutes are available then company can fix up high price.
Whereas when demand is elastic i.e., more substitutes are available then price has to be brought down.
On the other hand, if product is highly demanded then price can be high but at the time of low demand price has to be brought down.
If product is offering higher utility one can easily charge high price as customer is ready to pay high price if he gets high value from the product. Whereas if utility is low, you cannot charge high price.
5) Government and Legal Regulations - To protect the interest of general public, the government has all the right to control the prices of various products and services by including the products in the category of essential commodities.
The common commodities in essential commodities are Drugs, some food items, LPG etc. With government intervention there can be a check on monopolist as they cannot charge unfairly high price for essential commodities.
6) Marketing Methods - The price of the product also gets affected by various techniques of methods of marketing used to promote the products.
If company is using intensive advertising to promote the sale of product then it will charge high price. Other marketing methods which affect price of a product are type of packing, distribution system, salesmen employed, customer support services etc.
Pricing Strategies
- Price Skimming - Under this method a high introductory price is charged for an innovative/new product and later on the price is reduced when more marketers enter the market with the same type of product. A price skimming strategy focuses on maximizing profits by charging a high price for early adopters of a new product, then gradually lowering the price to attract consumers. For example, a cell phone company might launch a new product with an initial high price, capitalizing on some people’s willingness to pay a premium for cutting-edge technology. When sales to that group slow or competitors emerge, the company progressively lowers its price, skimming each layer of the market until the low price wins over even frugal buyers.
- Penetration Pricing - Penetration pricing occurs when a company launches a low-priced product with the goal of securing market share. For example, a sponge manufacturer might use a penetration pricing strategy to lure customers from current competitors and to discourage new competitors from entering the industry. If the sponge’s price is low enough, consumers will flock to the new product. Competitors who can’t produce and promote sponges for such a small profit will avoid the market, freeing the sponge company to maximize brand recognition and goodwill.
3) Place/Physical Distribution
Physical distribution is the delivery of goods at the right time and at the right place to consumers. Physical distribution of product is possible through channels of distribution which are many and varied in character. Place mix refers to important decisions related to physical distribution of goods and services. These decisions are deciding the channel of distribution, market for distribution.
Channels of distribution - Channel of distribution refers to the people or middlemen who help in distributing the goods. Channels of distributions are the firms and individuals who help in transferring the goods from place of manufacturing to place of consumption.
Common Type of Channels of distributions
- Producer
- Wholesaler
- Retailer
- Consumer
Level of Distribution Channels
a) Zero/Direct level channel – When a firm sells its product directly to customers without adopting any intermediary for example Bata, sell their products directly. Types of Zero/Direct level channel are
- Direct sale through salesmen
- Through internet
- Through teleshopping
b) Indirect level channel - When firms sell its product with the help of middlemen.
- One level channel – when firm sells its product through one intermediary only. In this level, firms directly supply the product to retailer who sells the product direct to the customer for example cars are sold through dealers.
- Two level channels - when firm sells its product through two intermediaries. The manufacture sells the products in a large quantity to wholesaler who sells in small lot to retailers and then retailers sell the product to the ultimate consumers.
- Three level channels - when firm sells its product through three intermediaries and these three intermediaries are agent/distribution, wholesaler and retailer.
Components of Physical distribution
A) Transportation - Transportation is that activity through which products are moved from one place to another. By making the products reach a desirable place can increase the importance and value of those products for example apple produced in himachal but these are transported to the different parts of the country, tea plantation is done in darjeling, gangtok, assam etc but these are transported all over the country and etc
B) Inventory – It means the stock of raw material, semi-finished goods and finished goods held in anticipation of sales or use. Inventory refers to maintenance of stock of goods. The inventory needs to be maintained so that goods can be supplied whenever demanded.
(i) Low quantity of Stock - If the quantity of inventory is kept low, then less amount of money is blocked and as a result of this investment is small. On the other hand, with the slight increase in demand because of the scarcity of inventory the consumers will turn to the rival companies.
(ii) Excessive Quantity of Stock - If the stock is available in excessive quantity, then any demand can be met. So the risk that consumers will desert drops to zero. On the other hand, investing more in inventory will block the money unnecessarily and investments will increase. In short, after analyzing the pros and cons of both the situations the decision about the adequate quantity of stock should be taken
C) Warehousing - Whatever is produced is not sold off immediately. Therefore companies need to store the finished goods until they are sold in the market. Storage of goods is necessary because some goods like crops are seasonal in production but are demanded throughout the year so these have to be stored for supplying throughout the year
D) Order Processing - Order Processing means the process which is followed to fulfill the material order of the customer. Different steps of an order processing are as follows:
- Orders placed by consumers to salesperson.
- Transmission of order by salesperson to the company.
- Entry of order in the Company Office.
- Evaluating the reputation of the customer.
- Checking inventory and preparing schedule.
- Shipment of material in accordance to the order.
- Receiving Payment
The customer service level is judged from the fact as to how expeditiously the shipment reaches the consumer. Customer satisfaction and speed of shipment are directly inter-related. Hence, faster the pace of shipment, higher the rate of customer satisfaction will be. Keeping this thing into consideration companies are nowadays using system based on Information Technology so that by delivering shipment expeditiously customer service level can be improved.
4) Promotion Mix
Promotion refers to all the activities which are undertaken to communicate with the customer and enhance the sale of product or service.
Elements Of Promotion Mix
- Advertising
- Sales Promotion
- Personal Selling
- Public Relations
A) Advertising - Advertising is one of most important elements of promotion mix. The non-personal communication of information and messages about goods or services made by the producers or sellers paying money to any media is called advertisement. Advertisement means paid form of non-personal presentation and promotion of idea, goods or services by an identified sponsor. For example Print ads, radio, television, billboard, direct mail, brochures and catalogs, signs, in-store displays, posters, motion pictures, Web pages, banner ads, and emails. (Always in Paid Form non personal).
Advertising Media
The means used in communicating information and messages about goods or services are advertising media. The main advertising media are as follows:
- Press or print media - Newspapers, journals, magazines and other printed mistrials are called print media. This is much practiced and important media among advertising media. Press or print media can be divided in newspapers, magazine, catalog, broaches, news-later, profile, posters etc.
- Visual media - The presentation message of advertisement to be seen by eyes is called visual media. This is external advertisement. Under this include billboards, outdoor displays and indoor displays. Billboard or hoarding board is printed the advertisement. It is attractively printed in attractive designed letters and put at the places where people can see it. Outdoor display includes paintings, posters, banners, wall painting, electronic symbols etc. and are used as advertising media. Similarly, the messages or advertisement presented in retail shops, trade fair, exhibition etc are called indoor advertising.
- Audio media - The advertisement communicate in a way that people can hear the message is audio media of advertisement. Radio, tape-recorder, circular disk, telephone etc. can be used to communicate advertising message. Among them radio is the popular as well as effective media. So, it is called radio advertising.
- Audio-visual media - The other popular advertising media is television. This is audio-visual media of advertisement. In this, both presentation and explanation of the products can be done at the same time. Sound, song, music, speed, scene are included in advertising any product. This kind of advertising is free from the defects of only audio or video advertising.
- Electronic media - Audio-visual media are also electronic media for advertising. But here electronic media means internet media. Now a days, direct selling has become possible through telephones and computers. E-mail and websites are used for advertisement. Internet media has go popularity in short time.
B) Sales Promotion - Sales promotion refers to short term use of incentives or other promotional activities that stimulate the customer to buy the product. Sale promotion techniques are very useful because they bring short and immediate effect on sale, Stock clearance is possible and Sales promotion techniques also help to win over the competitor.
Sales promotion techniques for customers
- Rebate - Sell products at a special price which is less than the original price for a short duration for ex Coca Cola announced 2 liter bottle at Rs 75 only.
- Discounts – It means reduction of certain percentage in the listed price for a limited period of time for example season end sale, 20% off on Mobile Phones.
- Contests – It refers to participation of consumers in competitive events organized by different firms and winners are given some reward.
- Lucky Draw – In this draws are taken out by including the bill number or names of customers who have purchased the products are lucky winner gets free car, computer, A.C, etc
- Gifts – It refers to giving a free gift on purchase of the product.
- Instant draws and assigned gifts – It includes the offers like scratch a card and win instantly a car, bike LCD etc.
- Usable benefits - It includes offers like purchase goods worth Rs 15000 and get a holiday package.
- Joint promotions between brands owned by a company, or with another company’s brands. For example fast food restaurants often run sales promotions where toys, relating to a specific movie release, are given away with promoted meals
- Free samples (aka. sampling) e.g. tasting of food and drink at sampling points in supermarkets. For example Red Bull (a caffeinated fizzy drink) was given away to potential consumers at supermarkets, in high streets and at petrol stations (by a promotions team).
- Finance deals - for example, 0% finance over 3 years on selected vehicles.
- Vouchers and coupons, often seen in newspapers and magazines, on packs
Many of the examples above are focused upon consumers. Don’t forget that promotions can be aimed at wholesales and distributors as well. These are known as Trade Sales Promotions. Examples here might include joint promotions between a manufacturer and a distributor, sales promotion leaflets and other materials (such as T-shirts), and incentives for distributor sales people and their retail clients. Often they are original and creative, and hence a comprehensive list of all available techniques is virtually impossible (since original sales promotions are launched daily!). Here are some examples of popular sales promotions activities:
- Buy-One-Get-One-Free (BOGOF) – which is an example of a self-liquidating promotion. For example if a loaf of bread is priced at Rs 1, and cost 10 paisa to manufacture, if you sell two for Rs 1, you are still in profit – especially if there is a corresponding increase in sales. This is known as a PREMIUM sales promotion tactic.
- Customer Relationship Management (CRM) incentives such as bonus points or money off coupons. There are many examples of CRM, from banks to supermarkets.
- New media - Websites and mobile phones that support a sales promotion. For example, in the United Kingdom, Nestle printed individual codes on kit-kat packaging, whereby a consumer would enter the code into a dynamic website to see if they had won a prize. Consumers could also text codes via their mobile phones to the same effect.
- Merchandising - Merchandising additions such as dump bins, point-of-sale materials and product demonstrations.
Sales promotion works as link between advertisement and personal selling. There may be difference in the objectives of the method of sales promotion. However, the common objectives of sales promotion are as follows:
- To introduce new products - Through sales promotion, new products are presented to prospective customers to persuade them to buy the products. Mostly free samples are distributed. Likewise premium, consumer competition, reduction in price etc. tools can be used. Besides the consumers, middlemen also can be motivated to keep stock of the products.
- To identify and attract new consumers - The objective of sale promotion is also to identify new customers and attract them towards the firm's products. Different techniques of sales promotion are used at different times to stimulate customers to buy the products. If the business firm feel that the volume of current sales to the present customers is unsatisfactory, the firm tries to identify and develop new customers to sell the products.
- To encourage more purchase among current customers - The main objective of sales promotion is to increase sales volume. The producers encourage current customers to purchase more through different promotional methods like premium, reduction in price, competition etc.
- To combat or offset competitors' marketing efforts - A business firm always adopts sales promotion policy so that its products are not sold less than competitors' product in the markets. So, it becomes necessary for the firm to adopt proper sales promotion policy to offset the effect of competitors' policy in the market, if they try any. Hence the objective of sales promotion is to counter competitors' marketing policy and efforts.
- To stabilize the fluctuating sales pattern - Fluctuation in demand, especially due to seasonal effect, brings instability in sales volume. In such situation, the producer or business firm can bring stability in sales pattern through sales promotion programs.
- To increase brand awareness - The other important objective of sales promotion is to increase the total number of customers by increasing brand awareness.
- Other objectives - The other objectives of sales promotion are as follows:
- Increasing consumption
- Broadening distribution channel
- Educating consumers regarding product improvement
- Bringing more customers into retail stores
C) Personal selling - Personal selling means selling personally. This involves face to face interaction between seller and buyer for the purpose of sale. A 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. Examples: Sales presentations, sales meetings, sales training and incentive programs for intermediary salespeople, samples, and telemarketing. Can be face-to-face or via telephone.
Features of personal selling
- Personal Form - Under personal selling a personal contact is established between the buyers and the salesman. In other words, both the parties face each other.
- Development of Relationship - Personal selling results in the development of personal relationship between the sales person and the possible buyer. Such a relationship has an important place in sales.
- Oral Conversation - There is oral conversation between the sales person and the buyer regarding the features of the product, i.e., price, colour, shape, design, method of using, etc.
- Quick solution of Queries - The prospective buyer can make inquiries regarding the product. Salesman answers these queries quickly and removes any doubts in the mind of the buyer.
- Receipt of Additional Information - Normally, before introducing its product, a company is aware of the preferences of the probable buyers. Nevertheless, during the course of personal selling, when the sales person is in direct contact with the buyers he/she gathers additional information regarding their tastes and likes.
- Real Sale - Under personal selling, the buyers are not only informed about the product but the goods are actually sold to them.
Qualities of a Good Salesman
1) Physical Qualities - A good salesperson should posses the following physical Qualities.
- Attractive personality
- Neat and clean
- Good health
- Cheerful
- Ability to impress
- Sweet speaking
2) Mental Qualities - Good salesperson needs goods mental qualities as follows
- Patience and enthusiasm
- Adequate intelligence
- Maturity
- Self-confidence
- Understanding
3) Social Qualities - Goods salesmen should be endowed with social qualities. These qualities are as follows
- Sociable
- Co-operative
- Good manner
4) Character Qualities - The character qualities necessary for goods salesmen are
- Honesty
- Loyalty
5) Professional Qualities - The professional qualities of salespersons can are as follows
- Complete in salesmanship
- Professional ethics
Differences between Personal Selling and Advertising
S. No.
|
Personal Selling
|
Advertising
|
1.
|
Personal form of communication.
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Non-personal form of communication.
|
2.
|
Confined to particular area
|
Generally covers larger number of
people
|
3.
|
Two-way communication
| |
4.
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Only one channel of transmission
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Wide choice of channels
|
5.
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Used only for promotion and sales of products
|
Used for various other purposes such as seeking jobs, offering services
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6.
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Aims at selling existing products
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Aims at enhancing goodwill/customer base
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7.
|
Salesman get salary or commission or both
|
It involves one time of expenditure
|
8.
|
Effectiveness depends upon qualities of salesman
|
Effectiveness depends upon design of advertisement
|
D) Public Relations
Public Relations mean maintain public relation with public. Public Relations Referred to as publicity, this type of promotion uses third-party sources, and Particularly the news media, to offer a favorable mention of the marketer’s Company or product without direct payment to the publisher of the information. Examples: a campaign to encourage businesses to donate computers to schools, Donating to hospitals, donating to a cause. Newspaper and magazine articles/reports, TVs and radio presentations, charitable contributions, speeches, issue advertising, and seminars.