Promotion

Unit 8

Concept of Promotion:
It is an important mix of marketing. It communicates essential
messages to potential buyers. It is any form of
communications used to inform, persuade, or remind people
about an organization's or individual's goods, services etc. It
tells the target customers about product, price and place.
According to Philip Kotler "Promotion includes all the
activities the company undertakes to communicate and
promote its products to the target market."

After the goods have been produced, people must be

communicated about the products and persuade them for
acceptance. Promotion is an attempt to influence them
positively. Promotional elements consists or advertising,
sales promotion, personal selling, publicity and public
relations.

 Three basic objectives of promotion. These

are:
1. To present information to consumers as well
as others
2. To increase demand
3. To differentiate a product.

 Objectives Marketing Communication

1. Informing:

One of the most important objectives of promotion is to inform customers

about the use, benefits, and features of the products. It includes the name and
address of the manufacturer or seller also.
2. Persuading:
Only by informing consumers about the products, they may not be influenced
towards the products. In order to influence them, the manufacturer or seller must
kindly persuade or appeal them to use his products.
3. Reminding:
Once the products are communicated it may not serve market for always.
Consumers may forget about the products because several competitive products
are available in the market. So the market should repeat communication to
remind customers that a product is still avai8lable and serve as they desire.
4. Re-enforcing:
Marketers usually re-enforce the customers to buy products. It is a form of
psychological pressure to the customer for make purchase or re purchase of the
products. It consists motivating, heavy advertisement, publicity developing a
now atmosphere etc.

Marketing communication process and System

Marketing communication process and System

1.
2.
3.
4.
5.
6.
7.
8.

Sources
Communication message
Message encoding
Message delivery system
Decoding
Receiver
Noise
Feedback

The Promotion Mix Strategy

Promotion Mix:
It is the combination of advertising publicity, public relation, sales
promotion and personal selling. It is the particular combination of
promotional tools. They are given below:
1. Advertising:
It is paid form of non personal communication. It is delivered
through mass media like radios, Television, newspapers, brochures,
posters etc. It consists of Print media/Visual media/ Internet.
2. Personal selling:
It is a face to face communication between the sellers and
prospective buyers. More money spent on personal selling.

3. Sales promotion:
It involves marketing activities other than advertising,
publicity or personal selling that stimulate consumer purchases
and dealer effectiveness. The forms of sales promotion include:
Trade shows.
Demonstrations.
Coupons
Rebates
Samples
Contests
Sales promotion means any steps that taken for the purpose
of increasing sales. It is a bridge between advertising and
personal salesmanship.

 4. Publicity:
It is any message concerning an organization appearing in the
mass media as a news item for which the organization does not
pay and is not generally considered to be the source. For
example press conference and speeches, news releases feature
articles, publication.
5. Public relation:
It is any unpaid form of presentation designed ato promotes
favorable attitudes and opinions toward organization, its policies
and products. It is an attempt to be a good citizen in the market.
*Public service activities
* Sponsorship of events
* Lobbying / Exhibits and displays.

 Push Strategy: Manufacturer

Retailer
Customer
Pull Strategy: Manufacturer
Retailer
Customer

Wholesaler
Wholesaler

 Push Strategy:
The promotion program is directed at middlemen. The product is
pushed through the channel. The channel members are persuaded to
order, carry and promote product to customers. The manufacturer
promotes to wholesaler, the wholesaler promotes retailer, the
retailer promotes to customer. Personal selling and trade promotion
tools are emphasized in push strategy. This strategy is useful where
brand loyalty is low and market share is to be protected.
Pull Strategy:

The promotion program is directed at customers. The customers

are persuaded to ask the product from the retailers, the retailers ask
the product from the wholesalers and wholesalers order the product
from the manufacturers. The product is pulled through the channel
to increase sales.

Advertising
Advertising:

It is paid form of non personal communication. It is delivered

through mass media like radios, Television, newspapers, brochures, posters
etc. It consists of Print media/Visual media/ Internet.
AIDA: Attention/interest/desire/action
Features:
1. Advertising involves costs
2. Advertising is impersonal ( words, symbols )
3. Advertising can be various form ( consumer / Industrial )
4. Advertising uses various media
5. Advertising promotes goods, services and ideas
6. Advertising is targeted at some actions (inform, persuade, remind
etc )

Objectives of Advertising
Support to personal selling
Reach mass people
Attract a new market segment
Promotion of new product
Improve dealer relations
Expand company sales
Information
Persuasion
Reminder
Reinforcement
Media:
*Press or print
* Audio or Radio
* Audio-Visual
* Display
* Electronic (Internet etc )

Advertising Budgets
It is converting the advertising plan into
monetary value. It is a plan that involves
determining the total allocation of monetary
resources for various activities involved. The
major objectives of budgets are :
1. Facilitate the advertising program
2. Achievement of advertising goals
3. Control tool

 The major items of expenditures in advertising

are located in different areas:
1. Research expenses
2. Development expenses
3. Production
4. Release
5. Administrative cost
Budgeting Approaches
6. Top-Down approach
7. Bottom-up approach

Advertising message Selection

The main focus of advertising is to design the most
communicative messages and deliver the to the target audience
in the most effective way. It is also the most important element
of and advertising. Following qualities expressed in terms of
4ps of message design:
1. Personal ( personal touch ) message addresses according to
needs and wants of the customers.
2. Powerful ( clear and striking )
3. Permanent ( Innovative and unique because consumers can
remember )
4. Performance (awareness, interest, desire, conviction and
actions )

 Factors affecting message design:

1. Advertising objectives ( objectives may be differ like
informs, persuades, reassures and reminds consumers
about products or services etc )
2. Product factor ( industrial or consumer products )
3. Customer factor ( male or females ) messages that
appeal to the children may not appeal to teenagers. The
copy writer has to consider the demographic and
psychographic profile of the target audients before
writing message.
4. Competitor factor ( careful evaluate the competitor
factors before designing the message )
5. Media Factor

 Advertising media selection

There are various media options available to
the advertiser. The advertising media can be
grouped in to four categories:
1. Press Media ( indoor ad. media ) : News paper,
Magazines, Radios. Indoor media reach the
audience in their homes and offices.
2. Out door advertising media : This media reach
the target audience in open spaces. For
example :
Posters and wall paintings,
Hoarding, Electric/Electronic signs, Sky
writing, Sandwich - men

3. Direct Media: It reach customers their homes

and offices through the postal or courier
systems.
Envelop enclosures, post cards
Booklets and catalogues
Gift novelties ( key rings, pen stands and paper
weights.
Handbills ( Pamphlets )
4. Display Media: Window display, Exhibitions
and trade fairs, Mobiles etc

Objectives or goals of media selection:

1. Reach the defined target audience
2. Match the product distribution with media
coverage
3. Match advertising objective with media vehicle.
4. Counter the advertising of competitors
5. Stay within the advertising budget
6. Circulation ( number of copies of the
newspapers and magazines etc )
7. Reach / continuity / Impressions

Personal Selling:

Meaning:
It is a face to face communication between the sellers
and prospective buyers. More money spent on personal
selling. It is a process of informing customers and
persuading them to purchase products through personal
communication in an exchange Trans actions. It is a
oral presentation in a conversation with one or more
prospective customer for the purpose of making sales.
According to William j. Stanton Personal selling is
personal communication of information to persuade
somebody to by somethings.

Natures:
Traditional method
two way communication
Individual attention for consumers
Persuasion (request or appeal)

 Importance of Personal selling:

Flexibility ( changeable to meet
customers )
Two way communication
Persuasion ( face to face interaction )
Represents the whole company
Reliable source of information
Minimizes wasted efforts
It results in the actuarial sales

with

Objectives of Personal selling:

Entrance to selling area.
Two way communication.
Development of relationship.
Profit making.
Consumer facility.

 Methods: / Types
Retail selling ( door to door selling)
Trade selling ( selling to whole seller and
retailer)
Missionary selling (They don't directly sales
product orders collection like pharmaceutical
and insurance sales person.)
Direct selling ( direct to customer from
manufactures)
Industrial selling ( use industrial sales person)

Public Relations
Meaning/Nature
It is any unpaid form of presentation designed ato promotes
favorable attitudes and opinions toward organization, its policies and
products. It is an attempt to be a good citizen in the market.
*Public service activities
* Sponsorship of events
* Lobbying / Exhibits and displays
Marketing has to take care of the interest of various types of publics
such as media, government pressure groups, local people, and general
public and internal staff. Activities targeted at maintaining good relations
with the publics are known as public elations.
According to Philip Kotler Public relations involve a variety of
program designed to promote or protect a company's image or its
individual products

Importance
Build relationship with opinion leaders.
Build direct relationship with customers.
Build and maintain customer loyalty.
Build market place excitement before product launch.
Methods ( Tools )
1. Press Relations:
*Personal communication.
* Press Release
* Feature articles
* Publication
2. Public service activities
* Sponsorship of events
* Lobbying
* Exhibits and displays

Objectives of Public Relations

1. Build market place excitement before product
launch
2. Build and maintain customer loyalty
3. Build direct relationships with consumers
4. Build relationships with opinion leaders.

Sales promotion:
Meaning:
It involves marketing activities other than advertising, publicity or personal
selling that stimulate consumer purchases and dealer effectiveness. The forms
of sales promotion include:
Trade shows.
Demonstrations.
Coupons
Rebates
Samples
Contests

Sales promotion means any steps that taken for the purpose of increasing
sales. It is a bridge between advertising and personal salesmanship.
According to Philip Kotler Sales promotion consists of a diverse
collection of incentive tools, mostly short term, designed to stimulate
quicker and or gr3ater purchase of particular products /survives by
consumers or the trade

Objectives
Attracting new customers
Marketing of new customers
To compete
Helping middleman
To increase selling
To promote off-seasons products

Methods: (Tools)
Price-off promotion
Coupons
Samples
Premiums ( gift )
Prizes ( contests / games )
Product warranties
Trade shows and exhibitions
Sales contests
Credit facilities

 Relationship Marketing:

Marketers must take all possible efforts to

retain the existing customers as well as buildup
relationship with new customers. It is the best method
of retaining such customers in the company's
products. Actually it is the modern practice of building
long term satisfying relations with key parties like
customers, supppliers, and distributors. It means build
profitable unique relationship with marketing network
(customers, employees, suppliers, distributors,
retailers, advertising agencies, university scientists
and others). It provides greater customer satisfaction
and hence retains the existing customers.

Attract customers and keeping customers is

actually a difficult task.

 Customer Development Process

Suspects

Important questions
Define distribution and explain the
objectives of distribution .
Explain the importance of marketing
channel and their key functions
Discuss about channel dynamics.
How horizontal conflict arise? Also
briefy discuss how channel conflict
can be managed.
Define market logistic. Explain its
functions.