After producing any product, the duty of producer is to inform all the buyer and potential buyer about his product. Beside that for creating new market and to keep the existing market, promotion is very much important.
The objectives are as follows-
(1) To inform: After producing a product, it is not sure that it will be sold. For selling it, a company should inform everybody. Promotion does the work for informing the buyers.
(2) To persuade: After informing the buyer about the product, the next task is to persuade the buyer for the product to buy. According to W.J. Stanton, ‘For a want satisfying or luxury product, for which demand depends on a seller’s ability to convince consumers, that the product’s benefits exceed those of other luxuries, persuasion is even more important.’
(3) To remind: It must be reminded about a product’s availability and potential satisfaction. It’s more important in holding a existing market.
(4) Hold market: Another task of promotion is to hold the present market besides extending the market. It is to save self position in the market where the competitors also exist.
(5) Create demand: If demand is not created, then products are not sold. So demand must be created through promotional tasks. Here future demand holds importance besides present demand.
(6) Increase demand: After creating demand, a marketer has to increase demand. Through the help of promotional tools, the demand curve is moved to right or the demand should be increased.
(7) Marketing stability of demand: Through the marketing promotion efforts, the marketing stability of demand remains stable. When demand starts to slope down, then by using the tools it is made to go upward.
(
Expand market: By promotional activities, sale is promoted that means market is expanded. By promotional activities, it is possible to capture the market or competitors.
(9) Create goodwill: Advertisement, personal selling etc create goodwill for an organization. This helps an organization in the long run. For creating goodwill, a favorable mix of all tools of promotion is essential.
(10) Make loyalty to brand: Marketing promotion always tries to make brand loyalty of customers to its products. After creating brand loyalty, it makes regular customers for the company.
(11) Increase profitability: When we subtract cost from the revenue then we get the profit. Every company use promotional tools to increase sales. And when the sales are increased, automatically the revenue is increased. This helps to increase profitability.
The main objective of business is to earn profit. Promotion helps to increase the profit. Promotion helps to increase the profitability and provides sustainable competitive advantage.
