Promotion is that part of the marketing mix where the producer or seller communicating
about the products or brands they sell, its utility, benefit etc with the customers. Marketing communications are the means by which firm’s attempts to inform, persuade and remind consumers directly or indirectly about the products and brands they sell. The ultimate success of the marketing endeavors is dependent on how effective the promotion strategy has been in reaching the market and influencing the consumers appropriately
Role of Promotion in marketing:
Promotion in marketing has the following aims:
- Persuasion: Aims to create liking, preference etc for a product to make the customer start acting in favour of the firm
- Inform: Aims to create brand awareness and knowledge of new products or new features of an existing product among the consumers.
- Reminding: Aims to stimulate repeat purchase of products and services with a view to retaining their business and to have higher share in it.
- Reinforcing: Aims at ensuring customer satisfaction and convincing the current purchasers that they made the right choice.
Promotion of product means the activities that communicate the merits and utility of a product and influence the target customers to buy it. The following are the tools used in promoting a product or service :
- Advertising: Advertising is any paid form of non-personal presentation of ideas, goods or services by an identified sponsor. Advertisement through print media, Television, Film ads Internet etc has a wider reach.
- Personal selling: In this case there may be a presentation by the Sales Team of the Firm to the prospective buyers. It involves a personal interaction between the seller and the buyer. In this process the buyers’ need is better understood.
- Sales promotion: Short term incentives like coupons, contests, discounts etc are offered to customers to attract them for stimulating purchase of a particular commodity. It is an incentive influencing customers to buy.
- Public Relations: It includes a variety of programs to promote or protect a company’s image or individual products. Press conference by CEO of companies, and Banks arranging blood donation, Free eye testing camps, Free medical camps, organizing painting exhibitions etc . are public relations activities aimed at building the image of the organizations concerned.
The elements of promotion mix may be implemented in the promotion program of a product in the best way suitable to the organization. Integrated promotion communications produce stronger message consistency and greater sales impact. It
enables the producer or seller to reach the right customers with the right message at the right time and right place.
Role Of Direct Selling Agent / Direct Marketing Agent in a bank
Bulk of the goods and services are sold through stores. Non-store retailing falls into four major categories: direct selling, direct marketing, automatic vending and buying services. The non-store jobs have slowly diversified to the service sector, like banking and insurance companies.
Direct Selling: It is known as multi-level selling or network marketing. In this process a sales person visits household or a group for door to door selling. The sales person demonstrates and takes orders either from a buyer or group of prospective buyers who watch the demonstration. Example: Amway.
Direct Marketing: An interactive marketing system using one or more than one media for effecting considerable transactions. It uses consumer direct channels to reach and deliver goods and services to customers without the middlemen. These channels include Direct mail, catalogue, telemarketing, TV, Web sites and mobile devices.
Banker as a DSA/DMA: The Branch Manager, Officers, Managers, Front office staff ,
Marketing Managers are the Direct Selling Agent or the Direct Marketing Agent in a Bank. Their job is to collect information about the customer with all details and create a database, create awareness among the customers about the various products of the bank, convince them about the security aspects of their deposits and other transactions.
Code of conduct for DSA/DMA: Telecalling a prospective customer, leaving messages and contacting person other than the prospect, No misleading statements permitted. Must not accept any gifts or bribes from prospects, precautions to be taken on visits/contacts, proper dress code etc
OutSourcing of Marketing activities through Service Providers: When outsourcing the marketing operations, banks have to be extremely careful that the appointment of such service providers does not compromise with the quality of the customer service and the bank’s ability to manage credit, liquidity and operational risk. Banks should ensure that DSA/DMA do not transfer or misuse any customer information during marketing of Products.
Regulatory and Supervisory Requirements: In the outsourcing activity, the ultimate
responsibility lies with the bank :
-The bank will be directly responsible for all the actions of then DSAs/DMAs
-The Bank should retain ultimate control of the outsourced activity.
-The RBI has fixed vicarious liability on the Board of directors and Senior Management of the bank in respect of the outsourcing policy.