To learn more in the promotion, first will be discussed issues of marketing communications. Although the two terms of promotion and marketing communications is often considered to be the same, but actually have different meanings. Marketing communications is a two-way exchange of information between the parties or institutions involved in marketing. Two-way exchange is sometimes referred to as dialogue marketing.
Marketing communications can be defined as communication activities carried out by the buyer and the seller, and an activity that helps in decision making in the field of marketing and direct exchanges to be more satisfying in a way rely on all parties to do better.
While the sale is the flow of information or persuasion one-way, and only done by one organization or individual. This is different from marketing communications that aims to satisfy all parties
All parties involved in the marketing communication process perform the same way, namely listening, reacting, and talk to create exchanges that satisfy relationship. Exchange of information, explanations persuasive and negotiation is the whole part of the process.
Marketing communications can help to bring buyers and sellers together in a relationship of exchange; creating a flow of information between buyers and sellers who make more efficient exchange activities; and allows all parties to reach an agreement satisfactory exchange.
One part of the total communication process is promotion. Promotion can help the parties involved in marketing to improve relations with other exchanges. The other part of the communication process is feedback. This feedback shows what the effect of a communication made and give the possibility to customize promotional efforts to the whims of the market.
In summary it can be said that marketing communications facilitate / assist buyers and sellers with:
Creating the exchange relationship
Maintaining the flow of information that allows the exchange,
Create awareness and inform buyers and sellers so that they can exchange more satisfactorily,
Memperbaikipengambilan decisions in marketing so that the whole process of exchange becomes more effective and efficient.
According to Harold Lasswell in his book: "The Structure and Function of Communication in Society, in Mass Communications" (Edition Wilbur Schramm, 1960), the communication can be understood by answering the following questions:
Who ? (Indicate the source)
What did you say ? (News show)
In the channel where? (Shows media used).
To whom ? (Indicating the party receiving or being targeted).
With what effect? shows the influence of various factors on the results achieved).
Source, as the party had the initiative to hold a communication can send something newsworthy to an object or the addressee (called the recipient). About how far the effectiveness of this communication, shown by the reactions and responses from at receiver as feedback to the source.
In marketing, communication initiatives can be derived from the sale or from the buyer. Thus, the seller has a function as a sender and a recipient; so it is with the buyer (see figure 42). The exchange model shows an overview of the marketing communication process they seek to exchange information and use persuasion to create a mutually satisfying relationship.
2. PROMOTION
It has been mentioned in advance that the marketing communication is a two-way exchange of information between the parties involved in the marketing.
While the sale is seen as:
The flow of information or promotional one-way created to direct a person or organization to act that created the exchange in marketing
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So promotion is one aspect that is important in marketing management, and often referred to as "continuous process". This is because the sale could lead to a series of further activities of the company.
In the past, when the economy is still a craft house, someone easy to know about the goods that are being or have been made by a neighbor, whether the goods are bad or good. But in the modern economy, as now the situation is different. Here, the company must inform and encourage people to buy its products, whether through the media or by other means. However the company does not always work, often also fail due to incorrectly use promotional tool.
Actually, this promotion is not only done by the company / seller, but the buyer is also often used. For example, they put an ad in a newspaper to search for the required goods or services from another party. In addition, buyers and sellers can use such communications intermediary advertinsi bureau to carry out their promotional activities. Thus, it can be said that buyers, sellers and intermediaries can be involved in the promotion.
3. PROMOTIONAL MIX
By J. Stanton, promotional mix is defined as:
The combination of the best strategy of the variables of advertising, selling issue, and other promotional tools, all of which are planned to achieve sales program.
That definition does not mention clearly some variables promotional mix in addition to advertising and personal selling. Some of the variables discussed above (goods and services, packaging and branding, pricing, and location), and other variables (advertising, personal selling, public relations and publicity, as well as sales promotion) will be discussed later.
Sales term often used synonymously with the term promotions despite the intended sale. Sales only includes the transfer of goods / services or the use of sales alone, and there is no advertising activities or any other activities that are shown to stimulate demand. Thus, the sale is only part of the promotional activities.
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4. DETERMINATION OF PROMOTIONAL MIX
Promotional variables determine the most effective mix is a difficult task in marketing management. In practice, management must find the best combination for the use of these tools. Here, the difficulties faced is that management can not know for sure about the extent of advertising, personall selling, sales promotion, publicity or other promotional tool that can be used to achieve the purpose of the sales program. Moreover, how large the results are achieved from the expenses for promotional activities is also difficult to know. However quantitatively searchable results closest to the truth, namely by using a statistical approach.
Management can not be separated from a wide variety of factors that influence in determining the best combination of variables promotional mix. These factors include: (1) the amount of funds used for promotion, (2) the nature of the market, (3) the type of product, da (4) stages in the life cycle of goods.
1. Funds Used For Promotion
The amount of funds / money available is an important factor affecting the promotional mix. Companies that have greater funding, promotional activities will be more effective than those of companies which have only limited resources more funds. From some of the promotional mix fariabel that there are, in general, personal selling is an activity that requires at most in its use than others. Therefore, for companies that lack strong financial condition would be better to hold the advertising in magazines or newspapers rather than using personal selling. This is because the use of media advertisement can reach more number of potential buyers in addition to the wider area of operations. Thus the cost per person will be lower.
2. Nature of the Market
Several kinds of markets which affect the nature of the promotional mix include: (a) broad geographic markets, (b) the market concentration, and (c) all kinds of buyers.
a. Broad geographic market
Companies that only have local market often hold different promotional activities with companies that have a national or international market. For companies that have a local market may be sufficient to use personal selling, but for companies that have a national market should at least be using advertising.
b. market concentration
This market concentration can affect promotion strategies undertaken by the company to: the number of potential buyers, the number of potential buyers are different kinds and concentrations nationwide. Company sales are only focus on one group of buyers, then use promotional tools will be different from companies that sell in all groups of buyers. For example, the company is concentrating its sales on a group of female buyers, then the company can use the female media (such as magazine femina, kartini) for the implementation of the advertising program.
c. kinds of buyers
Promotion strategy undertaken by the company was also affected by an object or target in its sales campaign, whether the buyer of industrial, household consumers or between traders. Often brokers also determine or take part in the implementation of the promotion program of the company.
3. Product Type
Promotion strategy will be undertaken by the company is also influenced by the type of product, whether the consumer goods or industrial goods. In promoting consumer goods also all kinds, whether goods konvenien, shopping or special items. On industrial goods was also so, the installation will be different ways of promoting denganoperating supplies. For goods konvenien typically companies use advertising. This is because goods disebebkan konvenien widely distributed, do not require demonstration or illumination. While the strategy for the promotion of industrial goods such as precious high enough usually use personal selling
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4. Stages in the Life Cycle of Products
In the chapter in advance has been discussed about the life cycle of goods (product life cycle), beginning with the stage of introduction, growth, maturity, saturation and ends with a steep downturn. The strategy will be taken to promote the goods affected by the stages of the life cycle of the goods. In the introductory stage, the seller must push to increase primary demand (demand for one type of product) first, rather than selective demand (demand for products with a particular brand). So, the company should be sold to the buyer by promoting a particular brand. Instead of advertising, usually the company emphasizes personal selling efforts when promoting a new product or when entering a new market area.
5. CAMPAIGN
Often people use the term "campaign" to mean promotion activities. If further review, the actual definition of "campaign" has a wider meaning than "promotion". J.Stanton give the campaign definition as follows:
The campaign is a series of coordinated promotional efforts tenteng one theme or idea and planned to achieve a predetermined goal.
We can say it as a promotional campaign when the campaign is applied in business, and these can be divided into components: advertising, personal selling and sales promotion
Geographically, the company can conduct a local campaign, regionally or nationally, depending on available funding, objectives, and the extent of the market. One campaign can be conducted for one week, one month, one year, or even longer. In addition, the stages in the life cycle of goods can also determine whether a campaign is done or shown to pave the way to compete.
To conduct promotional campaigns, companies should set a goal first campaign. The purpose, and also the motive of purchase of the buyer can determine on appeal whether the sale will take precedence. For example in an airline that will use a new jumbo jet, can give appeal to consumers in the form of speed, quietness in transit, or other services attractive. The promotional campaign in order to be successful, then all elements sale of the company must be effectively coordinated.