UNIT 5: PROMOTION DECISION AND DEVLOPMENT IN

MARKETING

Promotion Decision: Communication Process and Importance

Communication Process in Promotion:

The promotion decision involves creating awareness and interest in a product or service
through various promotional activities. The communication process in promotion
typically follows these steps:

1. Sender (Company): The company initiating the promotional message.

2. Encoding: Converting the promotional message into a format that can be transmitted
through selected channels.
3. Message: The actual content of the promotion, which includes information about the
product, its features, benefits, and any promotional offers.
4. Channel: The medium or platform chosen to deliver the promotional message. This can
include advertising, public relations, personal selling, sales promotion, and digital
marketing channels.
5. Decoding: The process by which the target audience interprets and understands the
promotional message.
6. Receiver (Target Audience): The individuals or groups for whom the promotional
message is intended.
7. Feedback: Any response or feedback from the target audience, which can help the
company assess the effectiveness of the promotional campaign.

Importance of Promotion:

1. Creating Awareness:
• Importance: Introduces a new product or service to the market or reminds
customers of existing ones.
• Example: Launching a new smartphone and ensuring potential customers are
aware of its features.
2. Building Interest:
• Importance: Generates curiosity and interest in the target audience.
• Example: Teasers or previews for an upcoming movie or product release to build
anticipation.
3. Informing and Educating:
• Importance: Provides information about the product's features, benefits, and
uses.
• Example: Educational content in advertisements or tutorials that explain how to
use a new software product.
4. Persuasion:
• Importance: Influences consumer behavior and encourages them to make a
purchase.
• Example: Promotional campaigns highlighting the unique selling points of a
product, such as its quality, durability, or cost-effectiveness.
5. Differentiation:
• Importance: Helps a product stand out from competitors in the market.
• Example: Emphasizing a unique feature, such as an eco-friendly packaging, that
sets a product apart.
6. Building Brand Image:
• Importance: Contributes to the overall perception of the brand in the minds of
consumers.
• Example: Consistent branding in advertisements that reinforces a brand's values
and identity.
7. Driving Sales:
• Importance: Encourages immediate action, leading to increased sales.
• Example: Limited-time promotions, discounts, or sales events to prompt
customers to make a purchase.
8. Customer Loyalty:
• Importance: Establishes an ongoing relationship with customers and encourages
repeat business.
• Example: Loyalty programs or exclusive offers for existing customers.
9. Market Expansion:
• Importance: Expands the market reach by attracting new customers.
• Example: Targeted promotional campaigns in new geographic regions or
demographics.
10. Adapting to Market Changes:
• Importance: Allows companies to respond to changes in the market, consumer
preferences, or competitive landscape.
• Example: Adjusting promotional strategies in response to emerging trends or
shifts in consumer behavior.
 PROMOTION TOOLS:

The promotion mix refers to the combination of promotional tools or elements that a
company uses to communicate and promote its products or services to the target
audience. The choice of promotion mix tools depends on various factors, including the
nature of the product, target market, budget, and overall marketing objectives. Here are
some key tools in the promotion mix, and considerations for making decisions about
their use:

1. Advertising:
• Description: Paid, non-personal communication through various media
channels.
• Considerations:
• Budget: Advertising can be expensive, so consider the available budget.
• Reach: Evaluate the reach and frequency of the chosen media to ensure it
aligns with the target audience.
2. Personal Selling:
• Description: Face-to-face communication between a salesperson and potential
customer.
• Considerations:
• Product Complexity: Suitable for products that require explanation or
customization.
• Cost: Personal selling can be resource-intensive; evaluate cost-
effectiveness.
3. Public Relations (PR):
• Description: Building and maintaining positive relationships with the public and
media.
• Considerations:
• Credibility: PR can enhance brand credibility and trust.
• Long-term Impact: PR efforts may take time to build relationships and
reputation.
4. Sales Promotion:
• Description: Short-term incentives to encourage immediate purchase or action.
• Considerations:
• Campaign Duration: Typically used for specific periods to drive short-
term results.
• Impact on Brand Image: Consider how promotions may impact the
perceived value of the brand.
5. Direct Marketing:
 • Description: Direct communication with individual customers to generate a
response.
• Considerations:
• Targeting: Highly targeted and personalized communication.
• Data and Analytics: Utilize data for effective targeting and measure
campaign performance.

FACTORS AFFECTING PROMOTION MIX:

The promotion mix is influenced by various factors that guide the selection and
allocation of resources among different promotional tools. Understanding these factors
is crucial for creating an effective and tailored promotional strategy. Here are key factors
that influence the promotion mix:

1. Nature of the Product or Service:

• Complexity: Complex products may require more personal selling or detailed
advertising to educate consumers.
• Tangibility: Tangible products may benefit from visual advertising, while
intangible services may rely on personal selling or digital channels.
2. Target Audience Characteristics:
• Demographics: Age, gender, income, education, and other demographic factors
influence the choice of communication channels.
• Psychographics: Understanding the lifestyle, values, and attitudes of the target
audience helps in selecting relevant promotional tools.
• Behavioral Factors: Knowing how consumers make purchasing decisions and
their buying habits informs the promotion mix.
3. Stage in the Product Life Cycle:
• Introduction Stage: Emphasis on advertising and public relations to create
awareness.
• Growth Stage: Increase advertising, personal selling, and sales promotion to
capture market share.
• Maturity Stage: Maintain brand loyalty through advertising and sales
promotions.
• Decline Stage: Consider reducing promotional efforts or changing the
promotional mix.
4. Competitive Landscape:
• Intensity of Competition: Higher competition may require more aggressive
promotion.
 • Competitor's Strategies: Observing and responding to competitors'
promotional activities.
5. Budgetary Constraints:
• Available Budget: The financial resources influence the choice of promotional
tools.
• Cost-Effectiveness: Evaluate the cost-effectiveness of each promotional tool in
reaching the target audience.
6. Product Positioning and Brand Image:
• Brand Image: The desired image influences the tone and style of promotional
messages.
• Product Positioning: How the product is positioned in the market affects the
choice of communication channels.
7. Distribution Channels:
• Distribution Strategy: The choice of distribution channels may influence the
promotion mix.
• Intermediaries: If intermediaries are involved, coordination with them influences
the communication strategy.
8. Legal and Ethical Considerations:
• Regulatory Restrictions: Legal constraints may impact the type of messaging
and promotional activities.
• Ethical Considerations: Aligning promotions with ethical standards to maintain
trust and credibility.
9. Technological Advancements:
• Media Consumption Habits: Changes in how the target audience consumes
media influence the choice of digital or traditional channels.
• Technological Tools: The use of technology in promotions, such as social media,
online advertising, and data analytics.
10. Promotion Objectives:
• Awareness: Emphasizes advertising and public relations.
• Sales Promotion: Focuses on driving immediate sales.
• Building Brand Image: Utilizes advertising, PR, and sponsorship to create a
positive brand image.
11. Cultural and Social Factors:
• Cultural Sensitivity: Adapting promotional messages to cultural nuances.
• Social Trends: Aligning promotional activities with current social trends.
12. Global Considerations:
• Cultural Differences: Adapting promotions for different cultural contexts in
global markets.
 • Legal and Regulatory Variances: Complying with diverse legal and regulatory
environments.
13. Feedback and Evaluation:
• Performance Metrics: Regularly evaluating the effectiveness of promotional
activities and adjusting the mix based on feedback

INTEGRATED MARKETING COMMUNICATION APPROACH:

Integrated Marketing Communication (IMC) is an approach to achieving the objectives

of a marketing campaign through a well-coordinated use of various promotional
methods that are intended to reinforce each other. The goal of IMC is to create a
seamless and unified brand image and message across different channels. Here are key
components and characteristics of the Integrated Marketing Communication approach:

1. Consistency in Messaging:
• Key Feature: Ensures a consistent message is communicated across all
promotional tools.
• Importance: Consistent messaging helps build a cohesive brand image and
reinforces the core values and positioning of the brand.
2. Multiple Communication Channels:
• Key Feature: Utilizes a mix of promotional tools such as advertising, public
relations, personal selling, sales promotion, and digital marketing.
• Importance: Reaching the target audience through various channels increases
the chances of effective communication and engagement.
3. Customer-Centric Focus:
• Key Feature: Emphasizes understanding and meeting the needs of the target
audience.
• Importance: Tailoring messages to address customer needs and preferences
enhances the effectiveness of communication efforts.
4. Strategic Planning:
• Key Feature: Involves strategic planning and coordination of promotional
activities.
• Importance: Ensures that all elements of the marketing mix work together
harmoniously to achieve overall marketing objectives.
5. Cross-Functional Collaboration:
• Key Feature: Encourages collaboration among different departments within the
organization, such as marketing, sales, and public relations.
• Importance: Facilitates a holistic approach where different functions work
together to deliver a consistent message.
6. Use of Technology:
• Key Feature: Leverages technology to integrate communication efforts,
especially in the digital realm.
• Importance: Harnessing technology ensures that messages are coordinated and
delivered seamlessly across online and offline channels.
7. Data-Driven Decision Making:
• Key Feature: Relies on data and analytics to measure the performance of
promotional activities.
• Importance: Allows for informed decision-making, optimization of campaigns,
and understanding the effectiveness of each communication channel.
8. Brand Integration:
• Key Feature: Ensures that promotional activities align with the overall brand
strategy and image.
• Importance: Reinforces brand identity and helps customers recognize and
connect with the brand across various touchpoints.
9. Message Customization:
• Key Feature: Allows for tailoring messages to specific audience segments.
• Importance: Recognizes the diversity of the audience and enables more
personalized and relevant communication.
10. Feedback and Continuous Improvement:
• Key Feature: Regularly gathers feedback and data to assess the success of
promotional efforts.
• Importance: Allows for adjustments and improvements, ensuring the ongoing
effectiveness of the IMC approach.
11. Global Consistency:
• Key Feature: Maintains consistency in messaging across international markets.
• Importance: Adapts messages to local cultures while ensuring a unified brand
image globally.
12. Long-Term Relationship Building:
• Key Feature: Focuses on building long-term relationships with customers.
• Importance: Emphasizes customer retention and loyalty by delivering consistent
and relevant messages over time.