A Theoretical Framework of Promotional Strategies

Promotion is just like the spark plug in the marketing mix. It is the process of marketing
communication involving information, persuasion, and influence. Promotion has been defined as “co-
ordinate self-initiated efforts to establish channels of information and persuasion to facilitate or foster
the sale of goods or points of view.” Thus, promotion is persuasive (Communication to inform potential
customers of the existence of products, to persuade them that those products have want satisfying
capabilities).

The marketing mix (or promotion mix) consist of five major modes of communication vix.
Advertising, sales promotion, Public relations and personal selling. All elements of promotion mix have a
defined ~ole in all stages of the selling process. The objective of promotional strategies is to influence
the customer in such a way that he can purchase the product of his own will and then patronizes the
same brand in future too. Thus there are two important activities.

1. To give information about the product.

2. To influence (increase) the demand of the product.

Within the five forms of promotion, each as distinct features that determine in what situation it
will be most effective.

ADVERTISING STRATEGY:

Demand creation has become an important function now – a Day. Advertising is one of the
important activity through which a manufactures firm conveys persuasive communication to the target
buyers.

“Advertising nothing more than the use of bright ideas, Students, and slogans to popularizes
goods which appeals to the great body or ordinary consumers. Advertising is an extremely versatile took
of communication. It consists of non-personals forms of communication conducted through paid media
under clear sponsorship.”
 Americas Marketing Association says:

“Advertising is any paid form of non-personal presentation and promotion of ideas, goods or
service by an identify sponsor.”

The main purpose of advertising is to communicate. Its long-term objective is profit maximization.
Because of the many forms and users of advertising, it is difficult to make all embracing generalization
about its distinct quality as a component of promotional strategy. It serves a number of other allied
purposes also, which are as follows:

1) Helps to salesman.
2) It makes the certainty of new demand.
3) It removes the doubt about the goods.
4) Maintains sales demand.
5) Create image and goodwill of the advertising firm.
6) Explains the various uses of goods to the consumers.
7) Reduces in production and distribution cost.
8) Enables the producer to face competition.
9) Increases in sales and ultimately the profit of the firm.
10) Reminds the users to buy the products.

Thus advertising in an efficient way to reach numerous geographically dispersed buyers at a low
cost per exposure. In the modem sense advertising is a mass selling technique. It is an informative and
educational force that aids the consumer to form, judgment on what to buy.

ADVERTISING MEDIA:

Selection of a suitable medium of advertising (or a combination of media) is san important

decision. There are numerous media of advertising available to the modern advertisers. So, in
managing its advertising program, a company carefully evaluates the effectiveness of previous ads and
uses the results to improve the quality of future ads. Novelty in this field is misnomer. Infect there is
nothing novel in this area because with the passage of time, the advertisers and the advertising
agencies have thought of new way and means of approaching the prospects .

But for the sake of description one conveniently divide the basis types of advertising media in
the following manners.
Advertising Media:

1. Daily papers
2. Sunday papers
3. Sunday supply.
4. Weekly news paper.

1. Poster
2. Advertising Board
3. Wall Advt.
4. Bus, Trains &Trams etc.

1. Direct Advt.
2. Outdoor Advt.
3. Advertising novelties.
4. Exhibits trade shops.
5. Screen Advt.
6. Directories.
7. Packages ,Labels &Inserts
8. Calendar and gifts

1. Weekly. 2. Fortnightly. 3. Monthly. 4. Yearly

Journal

1. Trade journals.
2. Technical Journals

Sales Promotions:

Sales promotions consists of a divers collection of incentives tools, mostly short-term design to
stimulate quicker and / or greater purchase of particular / services by consumer or trade.
“Sales promotion is an organized effort applied to the selling job to secure the greatest
effectiveness for advertising and for dealer’s help.”

George W Hopkins

American Marketing Association says promotions include “those activities other than personal
selling. Advertising and public, that stimulates consumer purchasing and dealer effectiveness such as
displays. Shows and exhibitions. Demonstrations and various non – routine.”

We may say that sales promotion is a demand stimulating device designed to supplement
advertising and facilitate personal selling.

All the marketing and promotional activities ,other than advertising, personal selling and
publicity, that motivate and encourage the consumer to purchase by means specialties, samples
cents of coupons, sweep stakes , contest etc.

It offers direct inducement to act by providing extra worth over and above what is build
into the products as its normal price. There temporary inducements are offered usually at a time and
place where the buying decision is made.

TECHNIQUES OF SALES PROMOTION:

1. Point of purchase displays : -

This is a very effective sales promotion tool. Under this method, product itself or its photography
is displayed in the shop points or purchase displays established as link between the products advertised
and the product displayed. Those displays are presented in a very suggestive and attractive manner.
They tell the customers about the product and its possible uses.

2. Direct mail promotion:

 Under this method individually typed letters, postcard leaflets, booklets and catalogues charts
research building calendars are sent to potential customers. Detailed description of the product, its
uses, time of manufacture can be obtained from the subject matter or direct promotion techniques.

3. Merchandising Aids

Merchandising aids are given to induce business buyers to purchase goods in large quantities.
Manufacturer imparts free training to business buyers on such matters as store layout. They also do all
advertising for the business buyers. Their devices help a manufacturer in obtaining the patronage of
buyers.

4. Premiums:

Sometimes a customer is given a product free or at a nominal price to induce him to buy the
product. Such gifts or commissions are known as premiums. Premiums are generally given in the case of
high value consumer durable, because such items are not the customers do not frequently purchase
such items.

5. Sample & Free Gifts:

Samples and free gifts are also given to introduce a new product or to increase the sales of an
existing product. The main objective is create consumer awareness develop brand preference.

6. Product demonstration:

Another effective safes promotional tool is the actual demonstration of the product
Repres4etatives of manufacturer go form shop to shop and house to house demonstrate the uses of the
product to middlemen and ultimate consumers.

7. Quiz of profit and pleasure:

 Contents are also organized for the purpose of increasing awareness of a product. Rewards are
given to winners.

Mainly three devices of sales promotion are used generally.

a)Consumers or business user’s sales promotion Activities intended to educate or inform the consumers
are included in this type.
b) Middlemen and their sales force sales promotion –Activities to increase the interest and enthusiasm
of dealer & distributors.
c)Producer’s own sales force sales promotion- Activities to increase the production and capacity of their
own.

PERSONAL SELLING:

The goal of all marketing efforts is to increase profitable sales by offering want satisfaction to
consumer over the long run. Personal selling is by far the major promotional method used to reach this
goal.

We can define personal selling “as the personal communication of information to persuade
somebody to buy something.”

SCOPE OF PERSONAL SELLING

There are two kinds of personal selling:-

a)Across –the-counter selling:-

Here the customer comes to the sales people. It primarily involves retail stores.

b) Outside sales force-

In this type, sales people go to the customers. Here a sales person serve as a company’s link to
customers, and is the rep who brings back to the company. Much needed information about the
customer. Managing the personal selling function is a matter of applying the three stage management
processes (planning, implementation and evaluation) to a sales force and its activities. Sales
executive/personal begins by setting sales goal and planning sales force activities.
 A sales force must be organized, staffed and operated to implement the strategic plans and
reach the goals that were set. The main objectives of sales force management for a company is,

1. Prospecting: - Sales representative search for prospects or leads.

2. Targeting: - Sales people decide how to allocate t heir time prospects and consumers.
Communication: - They skillfully communicate information about the company s product and
services.
3. Selling: - They know the art of sales approaching, presenting answering objections, and closing
sales.
4. Servicing: - They provide various services to the customers consulting on their problems rending
technical assistance, arranging financing and expending; delivery.
5. Information gathering: - They conduct market research and in telling and work and fill in call
reports.

PUBLIC RELATION: -

Public can be defined as:

“ A public is any group that has an actual potential interest in or impact on a company’s
ability t o achieve its objectives, public relations involves a variety of programmers designed to
promote and / or protect a company’s image or its individual products.

Public relation is a management tool designed to build pre maintain a favorable image for an
organisation and a favorable relationship with its various public customer, prospects, stock holders,
employees, and labor unions government. However, unlike advertising public relation need not use the
media to communicate its message.

Good public relations can be achieved by supporting charitable projects (by supplying volunteer
or other resources.) Participating ion community service events, sponsoring athletic teams funding
the arts, and disseminating information through exhibits, displays and tours.

PUBLICITY:-
 Publicity is any communication about an organization, its products or policies through the
media that is not paid or by the organizations. Publicity may be good or bad. So, for making good
publicity, these steps can be considered by the managers.

a) Prepare a positive story (or News release) and circulate it to the media.

b) Personal communication with a group, like press conference (as it may be has a news value for
media persons.)

c) One – on – one personal communication often called lobbying. With the help of powerful
people, they can influence their opinions, and subsequently their decisions to public or target
consumers.

Public is used to announce new products, publicize new policies , recognize employees ,
describe research break through , or report financial performance – it the message, person, group or
event is viewed by the media newsworthy. Publicity is different form the advertising because it is
not” forced “on the audience and the credibility of publicity is much higher than advertising. Publicity is
beneficial for the organisation as it;

i. Costs lower than advertising or personal selling.

ii. Is presented as additional material or news, so it gets greater readership.

iii. Is a very short time taking process, so a company can put our news release very quickly when
some unexpected event occurs and get the benefit of it . So recognizing the value of
publicity, organizations have special units to generate news releases.

ADVANTAGES OF SALE PROMOTION

1. Sales promotion makes an immediate effect on sales.

2. It stimulates positive attitude towards the products.
3. It gives an extra incentive to the Retailers/Consumers to make a new purchase.
4. Measurement of the effectiveness of Sales Promotion is easier against the other promotional
methods.
5. It gives extra incentive to take immediate action now rather than later.
6. It has flexibility and can be used at any stage of a new product introduction. Sales promotion is a
very effective in this regard.
7. Products are becoming standardized and similar and so need increased support of non-price factors
of which sales promotion is an important.
LIMITATIONS OF SALES PROMOTION

1. Sales Promotion has temporary and short life, span. Sales promotion alone can’t build up brand
loyalty.
2. Sales promotions are only supplement, devices to supplement selling efforts of other promotion
tools.
3. They are not recurring in their use. They have seldom reuse value.
4. Too much sales promotion may affect adversely the brand image, suggesting its lack of popularity of
overstocking by a company.
5. Adverting agencies accord law status to sales promotion so that they may be trained for more
creative jobs.
Sales promotions are ineffective in lack of proper planning and Research for sales promotion.