MCOM 2nd Year Meaning Of Product Promotion Study Material Notes MCOM Study Material Notes Sample Model Practise Papers
MEANING OF PRODUCT PROMOTION
Product promotion means commission with customer. Contant development in international marketing requires the improvement individual designing of a product line for each nation. This objectivem achieved by periodical development and improvement in present product.
To review and changing the product line for development is called ‘prod promotion. Those changes grow from consumer preferences, tactics competitors legal requirements of host nation, objectives, cost structure of firm etc. Thus, it may become important to promote the products for meet the requirements of customer and to stay in international market.
The changes in product line may be done in different forms:
(i) The first mode to make necessary changes is by normally exte additional domestic product in foreign market.
(ii) Second form of promotion of product includes a particular product my be made for a specific foreign nation. After these changes, a product can be prepared for international marketit And if a product is not suitable for any nation that should be eliminated. The are many modes to change the product line and promotion of goods.
The promotion of goods is possible by following strategies :
1. By Introducing Products to the International Line. Internatio product line is the best way of making promotion of products. Because eve domestic producer wants his product quality to join the international mark In international market a domestic market may gather information about lat technology and necessary information about developing a product line. When product line has properly developed, the product promotion is automatica done.
A product may be introduced to the international product line for t reasons : (i) to fulfill the customers’ requirement which they want from speci market abroad, and (ii) to optimise the current marketing capacity. The produ may be added to fulfill above said requirements.
For example: A chemical company selling fertiliser and pesticides abro in developing nations. The company may discover an extreme requirement good quality of seeds and thus this company may add new product (seeds) to existing product line.
The same company may fulfill the requirements of rural people by setti up an effective distribution channel. The rural customer may use that prodi through distribution channel. This distribution channel helps in promoting product.
Mostly a company sells a product which is related or not related with company.
For example : Coca-cola sells two fruits drink only in Japan, i.e., a can coffee flavoured non-carbonated drink and second is carbonated orange drink. These products of Coca-cola do not available in United States. O example, is in Europe and Japan Compbell Soup Company sells gourmet cookies in Japan but not in U.S.
Colgate-palmolive company also follows this strategy. The product of belonging other company scatters by Colgate. As Wilkinson razor sold by Colgate for their British producer.
The promotion of product or decision to add a new product affected by the act together harmoniously paying attention in connection with marketing. finances and environment. The act together is called ‘marketing compatibility and it refers to the set in comparison with new product addition and the existing marketing compatibilities of the main company and its overseas subsidiary.
An optimum compatibility is useful whereas a low compatibility affect the profitable marketing.
For product promotion, it needs appropriate examination of the financial risk and possibilities regarding the product addition under consideration. The financial compatibility may be judged on the basis of profitability and cash flow of proposed addition.
Environmental compatibility also discussed under this method. It includes customer, competitive reactions and political problem. The addition of new product into existing line should not grow any problem to either existing or potential consumer. If political or legal conditions are against of addition new product than a marketer should cancel the plan of adding new product.