Human Resource Management : Unit-3

Promotion in HRM:-

Concept of Promotion:–

Promotion is a fundamental marketing concept that involves various activities and strategies aimed at increasing the awareness, visibility, and desirability of a product, service, or brand in the eyes of the target audience. Different authors and marketing experts have contributed to the understanding of promotion in the field of marketing.

“Promotion is the set of activities and strategies used to create awareness and interest in a product, service, or brand to persuade people to buy or engage with it.”

1. Philip Kotler: Promotion is “the process of communicating product and service information to the target market, with the purpose of influencing their attitudes and behaviors.”
2. George E. Belch and Michael A. Belch: Promotion involves “coordinating all seller-initiated efforts to set up channels of information and persuasion to sell goods and services or promote an idea.”
3. Seth Godin: Promotion, within the context of “Permission Marketing,” is about “earning the privilege of delivering anticipated, personal, and relevant messages to people who want to get them.”
4. David Aaker: Promotion contributes to “building brand equity by enhancing the perceived value, recognition, and strength of a brand through various marketing communication activities.”

Advantages:-

Promotion in marketing offers several advantages for businesses and brands. Here are some of the  benefits:

1. Increased Sales:

Effective promotion can lead to higher sales and revenue as it creates awareness and encourages customers to make a purchase.

2. Brand Visibility:

Promotion helps improve brand recognition and visibility in the market, making it easier for customers to identify and choose the brand.

3. Competitive Edge:

Promotion allows businesses to differentiate themselves from competitors, making their products or services stand out in the market.

4. Customer Engagement:

Promotional activities can engage customers, fostering a sense of loyalty and affinity for the brand.

5. Product Awareness:

Promotion informs potential customers about the features and benefits of a product or service, helping them make informed choices.

6. Clear Communication:

It provides a platform for clear and direct communication between the brand and its target audience, conveying messages and value propositions.

7. Increased Market Share:

Effective promotion can help a business gain a larger share of the market, potentially leading to long-term growth.

8. Product Launch Support:

Promotion is crucial for introducing new products or services to the market and generating initial interest.

9. Cost-Efficiency:

When done strategically, promotion can be a cost-effective way to reach a large audience compared to other marketing efforts.

10. Customer Loyalty:

Ongoing promotion and engagement with customers can foster loyalty, encouraging repeat business.

Disadvantages:-

While promotion offers several advantages, it also comes with some potential disadvantages and challenges. Here are the disadvantages of promotion in marketing:

• Effective promotion can be expensive, especially for small businesses with limited budgets. Advertising, public relations, and other promotional activities can incur significant costs.
• Some promotions may encourage short-term gains at the expense of long-term brand building. Businesses might sacrifice brand equity for immediate sales.
• Excessive or misleading promotion can lead to customer skepticism, eroding trust in the brand or product.
• Competitors may respond to promotional efforts with their own aggressive marketing strategies, leading to a price war or escalating promotional expenses.
• Once a promotion is launched, it can be challenging to control how consumers perceive and respond to it, particularly in the age of social media.
• Price promotions can create an expectation of discounts or deals, potentially affecting profit margins and brand image.

Bases of Promotion:-

Promotion decisions in organizations can be based on several criteria, including seniority and competence. Here’s an explanation of each:

1. Seniority-Based Promotion:

Seniority-based promotion, also known as “time-based promotion” or “seniority-based advancement,” is a practice where employees are promoted primarily based on their length of service within the organization. In this approach, the employees who have been with the company for the longest time are given priority for advancement. Here are some key points related to seniority-based promotion:

Advantages:

• Encourages loyalty and long-term commitment among employees.
• May result in a stable workforce and reduced turnover.
• Reduces the perception of favoritism or bias in promotion decisions.

Disadvantages:

• It may not necessarily reward or promote the most competent or skilled employees.
• Can discourage high-performing, younger employees if they perceive limited growth opportunities.
• May lead to an aging workforce that lacks diversity in terms of skills and perspectives.
• Common in Unionized Environments: Seniority-based promotion is often more common in unionized environments, where there are specific rules and agreements regarding promotions based on tenure.

2. Competence-Based Promotion:

Competence-based promotion, also known as “merit-based promotion” or “performance-based promotion,” is a practice where employees are promoted based on their skills, knowledge, performance, and ability to meet job-related criteria. In this approach, promotions are given to individuals who have demonstrated their competence and potential for higher roles. Here are some points related to competence-based promotion:

Advantages:

• Rewards and advances the most capable and qualified individuals.
• Encourages continuous skill development and performance improvement.
• Can contribute to a workforce that is more dynamic and innovative.

Disadvantages:

• May create a competitive work environment, which can be stressful for some employees.
• Requires robust performance evaluation and measurement systems, which can be subject to bias or subjectivity.
• It may result in high turnover if employees who are not promoted seek opportunities elsewhere.
• Common in Performance-Driven Organizations: Competence-based promotion is often more common in organizations that prioritize performance and seek to reward and retain high-performing employees.

Promotion Policy:-

A promotion policy is a set of guidelines, principles, and rules established by an organization to govern the process of promoting employees within the company. This policy outlines the criteria, procedures, and decision-making processes related to internal promotions. A well-defined promotion policy helps ensure fairness, consistency, and transparency in how employees are considered and selected for advancement within the organization

• The policy should begin by stating its objectives and purpose. This can include the organization’s commitment to recognizing and rewarding employees for their contributions and providing opportunities for career growth.
• Outline the various promotion paths within the organization, including upward, lateral, and vertical moves. Describe the typical career progression routes and the prerequisites for each.
• Define the process for announcing job openings and promotions. This may include how vacancies will be communicated to eligible employees and where they can find information on available positions.

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