MCom 2nd Year Product Promotion Study Material Notes
Mcom 2nd Year Product Promotion Study Material Notes: In this post, we will learn about MCom 2nd Year Product Promotion Study Material Notes. In MCom 2nd Year there is one of the most important questions comes from Promotion. You will learn about Mcom 2nd Year Product Promotion Study Material Notes. Teaching is a social and professional activity. It is a process of development. Teaching is a system of actions that induce learning through interpersonal relationships. and all the rest you will study in this Blog.
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MEANING OF PRODUCT PROMOTION
Product promotion means commission with customers. Conta development in international marketing requires the improvement of individual designing of a product line for each nation. This objective is achieved by periodical development and improvement in the present product. (Mcom 2nd Year Product Promotion Study Material Notes)
To review and change the product line for development is called product promotion. Those changes grow from consumer preferences, tactics competitors legal requirements of the host nation, objectives, the cost structure of the firm, etc. Thus, it may become important to promote the products to meet the requirements of customers and to stay in the international market.
The changes in the product line may be done in different forms:
(i) The first mode to make necessary changes is by normally exte additional domestic product in the foreign market.
(ii) The Second form of promotion of product includes a particular product that may be made for a specific foreign nation. After these changes, a product can be prepared for the international market, 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. An international product line is the best way of making the promotion of products. Because even domestic producer wants his product quality to join the international mark In the international market a domestic market may gather information about lat technology and necessary information about developing a product line. When the product line has properly developed, the product promotion is automatically done.
A product may be introduced to the international product line for t reasons : (i) to fulfill the customers’ requirements which they want from a special market abroad, and (ii) to optimize the current marketing capacity. The product may be added to fulfill the above-said requirements. (Mcom 2nd Year Product Promotion Study Material Notes)
For example:- A chemical company selling fertilizer and pesticides abroad in developing nations. The company may discover an extreme requirement for good quality seeds and thus this company may add new products (seeds) to the existing product line.
The same company may fulfill the requirements of rural people by setting up an effective distribution channel. The rural customer may use that product through the distribution channel. This distribution channel helps in promoting products.
Mostly a company sells a product that is related or not related to the company.
For example- Coca-cola sells two fruit drinks only in Japan, i.e., a can coffee flavored non-carbonated drink and second is carbonated orange drink. These products of Coca-cola do not available in the United States.
The Colgate-Palmolive Company also follows this strategy. The product belonging to another company scatters by Colgate. As Wilkinson razor sold by Colgate for their British producer.
The promotion of a product or decision to add a new product is 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.
Optimum compatibility is useful whereas low compatibility affects profitable marketing.
For product promotion, it needs an appropriate examination of the financial risk and possibilities regarding the product addition under consideration. The financial compatibility may be judged on the basis of the profitability and cash flow of the proposed addition.
Environmental compatibility is also discussed under this method. It includes customers, competitive reactions, and political problems. The addition of a new product into an existing line should not grow any problems for either existing or potential consumers. If political or legal conditions are against adding a new product then a marketer should cancel the plan to add a new product.
2. By Introducing New Product to a Host Country. Promotion plays a vital role in providing information about the product to foreign customers. (Mcom 2nd Year Product Promotion Study Material Notes)
Through promotion, a marketer may introduce a new product to the host country. A product may be new for the host country but not new to the overseas market. (Mcom 2nd Year Product Promotion Study Material Notes)
For example:- Kodak started selling its bucket Camera in Asia in 1982. It was a new product to Sri Lanka, Pakistan, Thailand, and other countries in Asia. Though it was already available in the United States and not new for the U.S.
Product promotion is required for the introduction of new products in the domestic or international market. Does the product promotion help in making decisions about:(i) Which new product has to introduce in the international market? (ii) What is the perfect time and sequence for introducing a new product? (iii) A product is marketed in United Nations whether to introduce in other countries?
A nation first introduces the product in countries which are same in the culture of that country.
For example- The U.S. introduced the product first in Canada, Australia, and Great Britain, because those nations are culturally similar to the U.S. Those countries are the main recipients of new U.S. international offerings.
Those countries received almost half of new introducing products.
Developed countries also received a big part of new products. One-third part is secured to the developed countries. Whereas developing countries received a little part or 1/6 part of introducing the product.
Product promotion provides information about introducing products and it may increase the part of sharing into the international market. (Mcom 2nd Year Product Promotion Study Material Notes)
Different industries also have varied new product introductions. A very little Dart or half of the office machines, computers introduced to the international market whereas textiles, paper, and fabricated metals have a big part in the foreign market.
If the timing is studied we see that the united state corporations have been launching new products faster than before to the international market. (Mcom 2nd Year Product Promotion Study Material Notes)
IMPORTANCE OF PRODUCT PROMOTION
Promotion plays a vital role in providing information about the product to foreign customers. It also creates the desirability of the product among forcing potential buyers. Foreign companies desire to communicate with their marketing intermediaries and potential buyers to ensure favorable sentiments toward themselves and their products.
Promotion is more culture-bound than other promotions. Hence foreign companies must take special care in promoting, the product in the host country. (Mcom 2nd Year Product Promotion Study Material Notes)
Global promotion includes all forms of marketing communications that seem to affect the buying behavior of existing and potential customers including advertising, personal selling, direct mail, point of sale displays, literature publicity, and word-of-mouth communications. Marketing text has referred to these promotions as above line (media promptness) below line ‘move focussed non-media promotions and direct selling). (Mcom 2nd Year Product Promotion Study Material Notes)
The purpose of promotion is both to communicate with buyers and to influence them. Effective promotion requires an understanding of the process of persuasion and how this process is influenced by environmental factors. The potential buyer must not only receive the desired information but should also be able to comprehend that information. The information must be sufficiently patented to motivate this buyer to react positively. (Mcom 2nd Year Product Promotion Study Material Notes)
The major advantages of global promotion, as with domestic marketing are to enhance the company’s image vis-a-vis its competitors and to inform, educate and influence the attitudes and buying behavior of the individual companies institutions, and or government agencies that make up a target market. (Mcom 2nd Year Product Promotion Study Material Notes)