A- The role of promotion in marketing:
1- Promotion and imperfect competition:
In economic terms, the role of promotion is to change the location and shape of the demand curve for a company’s product. Promotion is intended to make a product more attractive to prospective buyers. Through promotion a company strives to increase its product’s sales volume at any given price. That is the firm seeks to change its demand elasticity for its product. The goal is to make the demand more inelastic when price increases and more elastic when price decreases. In other word, the quantity demanded will decline very little if price goes up and sales will increase if price goes down. 2- Promotion and marketing:
The most useful product will be a failure in no one knows it exists, so the first task of promotion is to inform. Customers must understand what benefits it provides, how it works and how to get it. B- Promotion methods:
1- Personal selling: it’s the direct presentation of a product to a prospective customer by a representative of the organization selling it. It takes place face to face or over the phone and may be directed to a business person or a final consumer. 2- Advertising: it’s non personal communication paid for by a identified sponsor promoting ideas, organizations or products 3- Sales promotion: it is sponsor funded, demand stimulating activity designed to addition advertising and facilitate personal selling. 4- Public relations: it has a wide variety of communication efforts to contribute to favorable attitudes and opinions toward an organization and its product. It takes many forms like newsletters… C- Integrated marketing communication:
Marketers should form a coordinated promotional program within its total marketing plan. These promotional activities are fragmented in many firms with potentially damaging consequences. The elements comprising promotion should be a part of an integrated marketing communication...