MODULE - 2

Promotion Mix / Tools of Promotion

 The 4 Ps of marketing are product, price, place and promotion. All four of these elements
combine to make a successful marketing strategy. Promotion, one of the basic elements of the
marketing mix, is aimed to communicate the company’s message across to the consumer.

 In marketing, promotion refers to any type of marketing communication used to inform or

persuade target audiences of the relative merits of a product, service or brand. The aim of
promotion is to increase awareness, create interest, generate sales or create brand loyalty.

 Promotion covers the methods of communication that a marketer uses to provide

information about its product. Information can be both verbal and visual.

Objectives of Promotion

– Create awareness
– Stimulate demand
– Differentiate the product
– Encourage product trial
– Identify prospects
– Retain loyal customers
– Facilitate reseller support
– Combat competition
– Reduce sales fluctuation/Stabilize sales

 For effective promotion of any product or service there are a number of marketing
promotional tools that can be utilized in a promotion program. These should be applied carefully
according to the given circumstances, because every promotional tool is suitable to certain
circumstances. Following are the important types of marketing promotional tools that must be in
your mind.

 Advertising
 Personal Selling
  Sales Promotion
 Direct Marketing
 Public Relations & Publicity

Advertising

o Any paid form of non-personal presentation of ideas, goods and services by an

identified sponsor in exchange for a fee.

Advertising media

Advantages

The masses of customers dispersed geographically can be reached with the Promotional Tools of
advertising, which can be repeated for a number of times. The popularity, size and success of the
selling organization are enhanced by the large scale advertising. It is the quickest way to promote a
product to a large portion of diversified customers. Another important feature of advertising is that
it is much more expressive in such a way that the selling organization dramatizes its products by
applying certain impressive print, sound, visuals and colors, etc.

Disadvantages

On one hand advertising is very beneficial, but on the other hand it has some disadvantages too.
The advertising cannot stimulate the customers directly, because it is impersonal. The advertising is
based on one ways of communication, which means that the audience of the advertisement has not
the option to give the feedback or response to the advertising messages. One of biggest drawback of
advertisement is that it is much expensive.

Personal Selling:

 It is a face-to-face interaction between the company representative and the customer

with the objective to influence the customer to purchase the product.

Advantages

At certain stages of the buying process, personal selling is the most effective promotion tool in
creating customer’s preferences, convictions and actions. In personal selling, personal interactions
between two or more people take place that can allow both parties to understand the characteristics
and needs of one another and take immediate adjustments. The sales persons have professional
expertise by which they focus the interests of the customers and develop a healthy relationship over
it. Moreover the customer also gives extra time and attention is listening to the offerings of sales
persons even his final decision is no.

Disadvantages

Personal selling is also faced with extra cost and effort in training sales persons to make them
committed to the given tasks. The advertising can be altered by continuing and discontinuing it in
certain conditions, but the size of the sales force is much harder to change in case of personal
selling.

Sales Promotion:

– The tools of sales promotion are applied to boost declining sales by attracting the
customers and offerings of distinct incentives of purchase. It include short term incentives given
to customers to have an increased sale for a given period.

A quick response is generated by using this promotion tool of sales promotion. If advertising is
related to “buy our product” then sales promotion is the representation of “buy the product now”. In
the short run, sales promotion can be regarded as an effective promotion tool, but in case of long
run it is not favorable in developing long lasting customer relationships and brand preference just
like advertising and personal selling do.
Promotional tools include consumer-oriented sales promotion and trade-oriented sales promotion
which further contains a broad assortment of elements like:

Direct Marketing:

The communication establishes through a direct channel without using any intermediaries is
referred to as direct marketing. Direct marketing can be used to deliver message or service. Direct
marketing saves time, makes an experience personal and pleasant. Direct marketing reduces cost for
companies. Direct mail, catalog marketing, telemarketing, Tele shopping and kiosks are media for
direct marketing.

Direct marketing may take the following forms.

Public Relations & Publicity:

– “Public relations refers to the planned and sustained effort to establish and maintain
goodwill and mutual understanding between an organization and its public.”
– Public comprises of customers, employees, suppliers, distributors, shareholders,
government & society as a whole.

Public relation consists of news stories, events and features that are considered as more real and
therefore the readers also consider them more believable. Many prospects avoid the advertisement
and personal selling, but they can be influenced by the public relations. The real message in the
public relations is considered to be as “news” by the customers rather than as a sales centered
communication. The product of an organization is also dramatized by the public relations. Public
relations should not be used too much. It is combined with the elements of the other promotional
mix to use it in an effective and economical way.

– Publicity is one form of public relations that company use with the intention to bring
newsworthy information to the public.
– Techniques used to gain publicity include: news releases, press conferences, featured
articles etc.
 Marketing Communication Mix
– Tools of Promotion is also referred to as marketing communication mix as it acts as
a medium to exchange the information about goods and services to the customers.
– Marketing communication mix refers to the different tools adopted by the firm to
inform, persuade and remind the customer – directly or indirectly - about the products and
services they sell.

Integrated Marketing Communication (IMC)

– It is a process in which messages communicated by each of the promotional

elements are harmonized, so that consumers will receive a consistent message regarding the
brand or the company.
– IMC means integrating all the promotional tools, so that they work together in
harmony for increased sales and maximum cost effectiveness.

The concept of IMC involves two fundamental aspects:

– Consistency of positioning, message and tone across different media.

– Simultaneous achievement of several marketing goals – awareness, increased

sales, brand building etc.

Key Characteristics:

– Customers feel that all their brand experiences come from one identity

– Consistent image of the brand through synergized communication

– Cross functional process for creating & maintaining profitable relationships

with all stakeholders

– The company and agencies work together in partnership

– Local and international marketing management collaborate effectively

Benefits of IMC

Creative consistency

– By repeating the headlines, key phrases and images in each communication, you
ensure that prospects and customers receive consistent messages in every campaign.

Cost Savings

– By using same images and adapting the same ad copy for different media, you
reduce copy-writing, design and photography costs.

Customer preference

– Integration helps you provide customers with information in the format they prefer.
It ensures that customers receive the same information in all communications –
email, text message or telephone.

Reasons for the Growing Importance of IMC

– The IMC approach to marketing communications planning and strategy is being adopted by
both large and small companies and has become popular among firms marketing consumer
products and services as well as business-to-business marketers.
– There are a number of reasons why marketers are adopting the IMC approach. A
fundamental reason is that they understand the value of strategically integrating the various
communications functions rather than having them operate autonomously. By coordinating
their marketing communications efforts, companies can avoid duplication, take advantage of
synergy among promotional tools, and develop more efficient and effective marketing
communications programs.
– Advocates of IMC argue that it is one of the easiest ways for a company to maximize the
return on its investment in marketing and promotion.
– The move to integrated marketing communications also reflects an adaptation by marketers
to a changing environment particularly with respect to consumers, technology, and media.
– Major changes have occurred among consumers with respect to demographics, lifestyles,
media use, and buying and shopping patterns. For example, cable TV and more recently
digital satellite systems have vastly expanded the number of channels available to
 households. Some of these channels offer 24-hour shopping networks. Every day more
consumers are surfing the Internet's World Wide Web. Marketers are responding by
developing home pages on which they can advertise their products and services interactively
as well as transact sales.

Several shifts in the advertising and media industry have caused IMC to develop into a
primary strategy for marketers:

 1. From media advertising to multiple forms of communication.

2. From mass media to more specialized (niche) media, which are centered on specific target
audiences.

3. From a manufacturer-dominated market to a retailer-dominated, consumer-controlled

market.

4. From general-focus advertising and marketing to data-based marketing.

5. From traditional compensation to performance-based compensation (increased sales or

benefits to the company).
1. Identify Target Audience

– Understand target audience & their culture

– Affects decisions related to:

• What to say…

• Where to say…

• When to say…

• How to say…

2. Determine Communication Objectives

– Objectives act as a guide while making decisions.

– The primary purpose of Marketing Communication is to communicate ideas to target

audience.

– Communication tools – Promotion mix

– Major communication objectives include:

– To inform

– To persuade

– To remind
 – Other communication objectives are:

– Increase awareness

– Change attitudes

– Influence purchase

– Stimulate trial purchase

– Drive brand switching

3. Design Communication Message

AIDA framework guides message design

– Capture Attention

– Stimulate Interest

– Create Desire

– Encourage Action

– While designing the message, the marketer must decide ..

• The content

• The structure

• The format of the message.

Message Content

– Marketer decides the theme or appeal to achieve desired results.

 – Appeal is the central idea of advertisement.

– Three types of appeal:

• Rational/Informational appeal

• Emotional appeal

• Moral appeal

Rational/Informational appeal

• Functional benefits of the product is highlighted

• Eg. Colgate

Emotional appeal

• It is an attempt to induce positive and negative emotions to motivate

purchase.

• Eg. Johnson & Johnson

Moral appeal

• It arouses the moral sense of target audience of what is right and what is
wrong.

• It is often used to support social and ethical causes such as clean & safe
environment, do not waste water etc.

Message Structure

– Structure decides the way or order in which the message will be delivered.

– Key decisions are required with respect to three message structure issues:

• Whether or not to draw a conclusion or leave it to the audience

• Whether to present only positive aspects or disclose negative aspects too.

• Order of argument presentation (strong arguments first or last)

Message Format

– The communicator must decide on the headline, copy, illustration, and colour.
 • If a Message is carried over the radio, the communicator must decide words,
sounds and voices.

• If a Message is carried on TV, the presenters must plan their facial

expressions, gestures, dress, posture and hairstyles.

• If the message is carried on the product or its package, the communicator has
to watch texture, colour, size and shape.

4. Select Communication Channels

– Communication channels refer to the various media used in the communication

process.

– Three broad channels of communication:

• Personal communication channels

– They are channels through which two or more people communicate

directly with each other, including face to face, over phone, through
mail or e-mail, or even through an internet “chat”.

• Non-personal communication channels

– They are Media that carry messages without personal contact– print
media, broadcast media, display media, online media etc.

• Integrated channel – Personal + Non-personal

5. Establish Communication Budget

Four methods of setting budget:

– Affordable method

• It is the action of setting the promotion budget at the level management

thinks the company can afford.

– Competitive Parity Method

• It is the action of setting the promotion budget to match competitors’

expenses.
 – Percentage of Sales Method

• Setting the promotion budget at a certain percentage of current or forecasted

sales or as a percentage of the unit sales price.

– Objective and Task Method

• Specific objectives are set

• Tasks required to achieve objectives are determined

• Cost of performing tasks are estimated, then summed to create the

promotional budget

6. Decide Promotion/Media Mix

Factors affecting the choice of Promotion Mix

• The nature of each Promotion Tool

– Advertising

– Personal selling

– Sales promotion

– Public relations & Publicity

– Direct marketing

• Type of product/market

• The Product life-cycle stage

– (Introduction / Growth / Maturity / Decline)

7. Measure Communication Results

– After sending the message, the communicator must evaluate its effect on the target
audience.

– This involves asking the target audience members whether they remember the
message, how many times they saw it, what points they recall, how they felt about
 the message, and their past and present attitudes toward the product and the
company.

8. Manage IMC

– Analyze trends

– Audit communications spending

– Identify all points of contact with the customer

– Team up in communication planning

– Make all communication elements compatible

– Create performance evaluation measures

– Appoint an IMC manager

ADVERTISING

– Any paid form of non-personal presentation of ideas, goods and services by an

identified sponsor in exchange for a fee.

Advertising Decisions

1. Setting Advertising Objectives

2. Setting the Advertising Budget

3. Developing Advertising Strategy

 4. Evaluating Advertising Effectiveness and Return on Advertising Investment

1. Setting Advertising Objectives

i. To inform

ii. To persuade

iii. To remind

b. Other objectives are:

i. Increase awareness

ii. Change attitudes

iii. Influence purchase

iv. Stimulate trial purchase

v. Drive brand switching

2. Setting the Advertising Budget

a. Advertising Budget is the money and other resources allocated to a product or
advertising program.

b. New Products, typically, need large advertising budgets to build awareness and to
gain customer trial.

c. Mature brands usually require lower budgets as a ratio to sales.

d. Whenever there is strong competition, heavy advertising is also needed.

Four methods of setting budget:

– Affordable method

• It is the action of setting the promotion budget at the level management

thinks the company can afford.

– Competitive Parity Method

• It is the action of setting the promotion budget to match competitors’

expenses.

– Percentage of Sales Method

 • Setting the promotion budget at a certain percentage of current or forecasted
sales or as a percentage of the unit sales price.

– Objective and Task Method

• Specific objectives are set

• Tasks required to achieve objectives are determined

• Cost of performing tasks are estimated, then summed to create the

promotional budget

3. Developing Advertising Strategy

a. Advertising Strategy is the action plan by which the company accomplishes its
advertising objectives.

b. It consists of two major elements:

i. Creating Advertising Messages

ii. Selecting Advertising Media.

Creating Advertising Messages

– Messages must be better planned, more imaginative, more entertaining and more
rewarding to consumers.

– Message Content

– Message Structure

– Message Format

Selecting Advertising Media

– Advertising Media are the vehicles through which advertising messages are
delivered to their intended audiences.

Four Major Steps for selecting media:

1. Deciding on reach, frequency and impact

2. Choosing among major media types –

(Print media, Broadcast media, Display media, Online media)

 3. Selecting specific media vehicles –

(Specific media within each general media type).

4. Deciding on media timing

4. Evaluating Advertising Effectiveness and Return on Advertising Investment

– Advertisers should regularly evaluate the communication effects of an ad or ad

campaign to find out whether the ads and media are communicating the message
well.

– Advertisers should also measure the sales and profit effects of advertising by
comparing past sales and profits with past advertising expenditures.

ADVERTISEMENT COPY OR AD COPY

– It includes all the elements of an advertising message, whether printed or broadcast.

– Ad copy is a written or spoken message to be transmitted to target audience through

print, visual and voice media.

– In print media: it includes the heading, sub-heads, picture, captions, slogans, &
body copy, Company logo, mascot, borders & other illustrations & visual symbols.

– In TV: Motion, sight, sound ( words spoken by the characters in the script, music &
sound effects as well as illustrative materials, actions, & even camera cues.

Elements of Ad Copy

There are five basic components of a print ad

1. Headline,

2. Sub heads,

3. Body copy,

4. The visual elements or illustrations.

5. These elements are brought together through a layout.

1. Headlines

– The headline refers to the words in the leading position of the advertisement.

– Likely to be read first or are positioned to draw the most attention.

– The most important function of a headline is to attract the readers’ attention and
make them interested in the remainder of the advertising message.

There are various types of headlines including:

– Direct headlines – straightforward and informative in terms of the message

presented.

– Indirect headlines - provoke curiosity and intrigue by using questions, challenges,

provocations, and other methods

2. Subheads

– The subheads usually appear in a smaller size than the main headline and are
generally larger the type size used for the body copy.

– They are used to break-up or section off large amount of body copy and highlight
key points in the ad.

3. Body copy

– The main text portion of a print ad is referred to as the body copy.

 – Body copy content depends on the type of advertising appeal and/or execution style
being used.

4. Visual elements

– Visual components often dominate print advertising and play a very important role
in determining effectiveness.

– It include: drawings, pictures, colour, logo etc.

Layout

– A layout refers to the physical arrangement of the various parts of the ad including
the headline, subheads, illustrations, body copy and any identifying marks.

ADVERTISING AGENCIES

– Organization of professionals who provide creative business services to clients in

planning, preparing and placing advertisements

Functions of Ad Agency

– RESEARCH: study about the product and the company in order to distribute the
message to the public and test the consumer reaction towards products and services.

– CREATIVE PRODUCTION: formulating plans for creative strategies, copy or

script writing, visualization, designing, layout, shooting of films, editing, giving
music.

– DISTRIBUTION & MEDIA PLANNING: decisions are taken regarding type of

message and what media will be most helpful in sending this message to the public.

– MONITORING FEEDBACK: By monitoring consumer feedback, a decision on

whether to revise the message, the medium, the target audience or all of them can be
made.

Other Services:
 – Organizing exhibitions and fairs

– Preparing all kinds of publicity material

– Planning and organizing special events

– Direct marketing

Types of Advertising Agencies

1. In - house agency - is owned and operated by the company.

• Instead of outsourcing to an outside agency, ad campaigns are mainly
handled by company’s own in-house agency.

2. Full service agencies - involved in planning, creating, producing advertising,

performing research and selecting media.
– Some full service agencies also provide non-advertising related services including
strategic market planning, direct market promotion programs, interactive marketing
and web site design, and public relations.

3. Specialized agencies - specialized in a particular activity of the whole

communication process.
– They are specialists in certain functions (copy, art, media), industries (health,
computers) or in a marketing communication area (direct marketing, sales
promotion, public relation).
 4. Media Specialist - organizations that specializes in buying media time and space
and offer media strategy consulting to advertising agency.
5. Creative boutiques - specialize in "creative" or design-based business models.
Focus on creative concept development, copywriting and artistic services to clients.
– Their basic interest is in the creation of the advertisement or branding.

6. Interactive agencies – provide specialized advertising and marketing services for

the digital space.
– They offer a mix of web design / web development, search engine marketing,
internet advertising/marketing, or e-business/ e-commerce consulting.

7. Direct marketing agency - design direct marketing campaigns either through mail
or via telemarketing.
8. E-commerce agency- handle a variety of planning and execution activities related to
promotion using electronic commerce
9. Social Media Agencies - specialize in promotion of brands in the various social
media platforms like blogs, social networking sites, Q&A sites, discussion forums,
and micro blogs.
– The two key services of social media agencies are:

– Social media marketing

– Online reputation management

In-House vs. External Advertising Agency Decision are taken based on the following
Variables:

• The size of the account

• The media budget

• Objectivity

• Product complexity

• Creative ability

Steps in Selecting an Advertising Agency

1. Set goals of advertising.

 2. Select process and criteria.

3. Screen initial list of applicants.

4. Request client references.

5. Reduce list to two or three viable agencies.

6. Request creative pitch.

7. Select agency.

Evaluation Criteria in Choosing an Ad Agency

– Size of the agency

– Relevant experience of the agency

– Conflicts of interest

– Creative reputation and capabilities

– Production capabilities

– Media purchasing capabilities

– Other services available

– Client retention rates

AIDA MODEL

 AIDA is an acronym that stands for Attention, Interest, Desire and Action.
 The AIDA model is widely used in marketing and advertising to describe the steps
or stages that occur from the time when a consumer first becomes aware of a product or brand
through to when the consumer trials a product or makes a purchase decision.
 As consumers become aware of brands via advertising or marketing
communications, the AIDA model helps to explain how an advertisement or marketing
communications message should help consumers in brand choice.

The steps proposed by the AIDA model are as follows:

 Attention - The consumer becomes aware of a category, product or brand (usually through
advertising)

Interest - The consumer becomes interested by learning about brand benefits & how the
brand fits with lifestyle

Desire - The consumer develops a favorable disposition towards the brand.

Action - The consumer forms a purchase intention, shops around, engages in trial or makes
a purchase

Using the AIDA model will help you ensure that any kind of writing, whose purpose is to get the
reader to do something, is as effective as possible. First it must grab the target audience's attention,
and engage their interest. Then it must build a desire for the product offering, before setting out
how to take the action that the writer wants the audience to take.

Applications of AIDA model

In poster design, almost every single movie poster you've ever seen conforms to AIDA. The movie
poster's sole purpose is to get your attention, draw your interest, and feed you with a desire to watch
the movie, and then go and buy a ticket.

Direct mail is another huge proponent of AIDA, and with good reason. The direct mail package
must get you through all four steps if it is going to be successful. If it fails to grab your attention (in
the right way) it will be thrown in the trash. But even after you've noticed it, it has to invite you
inside, get you to read, get you through the product or service on offer, and of course, prompt you
to call, click, or buy.
Even the humble email has the same problem, and AIDA is the solution. The subject line will grab
your attention. The content of the email will raise your interestand create desire. And the final
action should be just a simple click.

AIDA also guide consumer during the decision making process: