MM/U4 Topic 5 Objectives of Market Promotion
Market promotion is an integral part of marketing strategy. It is a powerful weapon used excessively by today’s’ marketers to achieve marketing goals in a competitive environment. Market promotion is essentially a way to communicate with the target market. Since the modern market is characterized by over-informed consumers, over-flooded products, cut-throat competition, and rapid changes, the market promotion has a crucial role to play.
In nutshell, main objectives of market promotion can be described with reference to below stated points:
- To Stimulate Demand
It is the primary objective of market promotion. Through the use of appropriate means of market promotion, such as advertising, sales promotion, personal selling, and so forth, the company can stimulate demand for the product. Market promotion efforts convert potential buyers into actual buyers. Company, by highlighting product benefits, tries to match the product with needs, wants, and expectations of buyers. As per need, various means of market promotion are used to establish the information link with the target customers.
- To Inform Consumers
Promotion is aimed at informing consumers about features, qualities, performance, price, and availability of firm’s products. Market promotion is also a valuable means to inform consumers the changes made in the existing products and introduction of new products. In the same way, market promotion, by various tools of market communication, is used for communicating the special offers, price concession, utility of products, and incentives offered by the company.
- To Persuade Consumers
Market promotion is an effective way to persuade consumers the superiority of product over competitors. A firm can communicate competitive advantages the product offers to distinguish it from competitors’ products. Obviously, market promotion can assist the firm to convince buyers that the firm’s product is the best solution to their unmet needs and wants. Advertising is one of the most effective tools to distinguish the product from competitors’ products.
- To Promote a New Product
In a large and decentralized market, market promotion is an inevitable medium to promote a new product. By suitable promotional strategies, a company can successfully introduce a new product in the market as against existing products. Company can inform about availability, distinct features, and price of newly launched product. In every stage of consumer adoption of a new product, market promotion has critical role to play.
- To Face Competition
Market promotion enables the firm to face competition effectively. In today’s market situation, it is difficult to stand without the suitable promotional efforts. In short, it can be said that marketer can fight with competitors effectively, can prevent their entry, or can throw the competitor away from the market by formulating and implementing effective market promotion strategies.
- To Create or Improve Image
Advertising, personal selling, and publicity and public relations – all promotional tools – are capable to create or improve image and reputation of the firm. Many companies have become popular in the market due to effective market promotion. Company can reach the customers at every corner of the world through market promotion.
Brand image is purely an outcome of promotional efforts. For example, Hindustan Unilever, Colgate Palmolive, Sony, Philips, Hero Honda, Ambuja Cement, and many national and multinational companies have made their permanent place in the market due to successfully launching of market promotion programmes.
Thus, market promotion can help company realize various objectives. Company can increase sales, improve its image, and maintain close and live contact with the market by suitable promotional efforts. A company’s survival, growth, and development are based on how effectively it communicates with the market.