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May 09, 2012

Same word many meanings

Promotion (marketing definition) is the advancement of a product, idea, or point of view through publicity personal selling, sales promotion and/or  advertising. It is a form of communication by the manufacturer to the buyer telling about his product, idea or point of view.

Promotion (Human Resource definition) is the appointment of a current, active classified employee to a position in a higher salary range than the one to which the employee is presently assigned.  A promotion is also advancement to a position that requires performing accountabilities of significantly increased complexity or responsibility

Dry promotion is an increase in responsibility and seniority or status without an increase in pay. It's rarely effective because people generally feel resentful that so much extra is being asked but not recognized.

Horizontal Promotion: is the appointment of a current, active classified employee to a similar position from one place to another. It is akin to a transfer. It could entail an increase in pay but that increase could be due to the house rent differential between the two cities involved. In India when one moves from grade B to Grade A city the HRA allowance goes up by 10%.

The word Premium has many meanings. Savor these:

Premium can be used to mean high price. For example – “Basically in the future if you want good quality water you will have to pay a premium price”.

Premium can be used to mean best.. For example – The Price for Premium technology will never go down.

Premium can be used to mean bonus. Premiums are sales promotional offers that are given in marketing. It is something that is given extra. For example – 20% weight extra is given at the same price.

Premium can be used to mean compensation or payment or allowance. In insurance premium is the regular payment that has to be paid to insure the risk. For example -- the yearly premium for a Money Back Life Insurance Policy. 

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