UNIT- V: Promotion Mix

Promotion
Promotion is the process of marketing communication involving information,
persuasion, and influence

Promotion is a group of outbound communication activities which are used to inform

customers about the product and service features and offers in order to create
awareness, increase demand and drive sales.
Promotion- Definitions

According to Philip Kotler- “Promotion includes all the activities the company
undertakes to communicate and promote its products to the target market”.

According to W. J. Stanton- Promotion is the element in an organization’s marketing

mix that serves to inform, persuade and remind the market of the organization on
its products.

According to McCarthy- Promotion is the concerned with any method that

communicates to the target market about the right product to be sold in the right
place at the right price. Promotion encompasses sales promotion, advertising and
personnel selling.
Objectives of promotion

To introduce a new product

To educate customers about the product usage

To increase awareness of the product

To differentiate from competitors

To build brand value and image

To encourage people to try their product over their existing products
Promotion Mix

The term ‘Promotion mix’ is used to refer to the combination of

different kinds of promotional tools used by a firm to advertise and sell
its products. The main promotional tools or activities which make up
promotion mix are personal selling, advertising, publicity and sales
promotion. These are also known as elements of promotion mix.
Promotion Mix-Definitions

Gary Armstrong defines promotion mix as, “A company’s promotional mix includes
advertising, personal selling, sales promotion, public relations, direct marketing. It
also includes product design, shape, package, colour, label etc., as all these
communicate something to buyer.”

Philip Kotler defines “A company’s total marketing communication mix also called
promotion mix consists of specific blends of advertising, personal selling, sales
promotion, public relations and direct marketing tools that the company use to
pursue its advertising and marketing objectives.”
Objectives of promotion mix
Build Awareness
Create Interest
Provide Information
Stimulate Demand
Reinforce the Brand
Important Elements of Promotion Mix
 Managing Advertising
Advertisement can be defined as the “paid form of non-personal presentation and
promotion of idea, goods or services by an identified sponsor”.

It is an impersonal presentation where a standard or common message regarding

the merits, price and availability of product or service is given by the producer or
marketer.
Features of advertising

1. Paid Form

The sponsor has to pay for advertising he has to bear a cost to communicate with customers.

2. Impersonality

There is no face to face contact between customers and advertiser. It creates a monologue and not
a dialogue.

3. Identified Sponsor

Advertisement is given by an identified company or firm or individual.

Advantages/Merits of Advertisement
 Advertising can reach a large market
 There is wide variety of media available
 They can easily express the use of product through various techniques, and can add multimedia
effect also.
 Advertising is considered economical as compared to other promotional techniques

Disadvantages of Advertising
(i) It is an Impersonal Communication
(iii) Difficulty in Media Choice
(v) Lack of Feedback
Managing Advertising
To develop advertising program, need to start with identifying the target market & buyer motives.
Consider these 5 decisions:
1.Objectives
To build primary demand
Tool to build selective demand for a particular brand or
Remind (to purchase or that they made a right choice -reinforcement ad.)
2.Budget
Stage in the product life cycle (established brands have lower ratio)
Market share & consumer hare, less ratio)
Competition & clutter (more competitors, more ad./sales ratio)
Advertising frequency & product substitutability
3.Develop creative Message
Message generation
Message evaluation & selection
Message execution
4.Media
Media Selection
Media vehicles (programs)
Media timing
5.Advertising effectiveness
Communicating effectively
Sales-effect research
 Sales Promotion
Sales promotion refers to short term use of incentives or other promotional
activities that stimulate the customer to buy the product.

According to Philip Kotler – “Sales promotion consists of a diverse collection of

incentive tools, mostly short-term, designed to stimulate quicker and/or greater
purchase of particular product/services by consumers or the trade.”

Sales promotion techniques are very useful because they bring:

(a) Short and immediate effect on sale.
(b) Stock clearance is possible with sales promotion.
(c) Sales promotion techniques induce customers as well as distribution channels.
(d) Sales promotion techniques help to win over the competitor.
Sales Promotion Techniques for Customers:
Rebate
Discounts
Refunds
Premiums or Gifts/or Product Combination
Quantity Deals
Samples
Contests
 Instant Draws and Assigned Gifts
Packaged Premium
Container Premium
Merits of Sales Promotion
Attention Value
Useful in New Product Launch
Synergy in Total Promotion Efforts
Aid to other Promotion Tool
Demerits of Sales Promotion
Reflect Crisis
Spoil Product Image
 Personal Selling
Personal selling means selling personally. This involves face to face
interaction between seller and buyer for the purpose of sale.

The personal selling does not mean getting the prospects to desire
what seller wants but the concept of personal selling is also based on
customer satisfaction.
Features of Personal Selling

(i) Personal Interaction

(ii) Two way Communication

(iii) Better Response

(iv) Relationship

(v) Better Convincing

Benefits of Personal Selling
Increase the sale
Flexible promotion Tool
Consumer Attention
Create lasting relationship between customers and sales-persons
Very Effective to Introduce New Product
Latest Market Information
Employment Opportunities
Product Standardisation
Direct Marketing

With the intent of technology, companies reach customers directly without any
intermediaries. The e-mails, text messages, Fax, are some of the tools of direct
marketing.

The companies can send emails and messages to the customers if they need to be
informed about the new offerings or the sales promotion schemes.
Advantages of Direct marketing

Powerful tool for customer relationship building.

Accurate selection of buyers and messages, and targeting them individually.

Competitors are kept unaware about the message sent to potential buyers.

Lot of tools or medium given to customers for any queries or placing orders –
email, telephone, mobile, personal computer, etc.

Convenient to shop from the comfort of home. Customers can ask for queries,
place orders or request a demo at home.

The customer can easily compare the features and benefits with competitor
products on the internet or with retailers, etc.
 Publicity and Public Relations
Publicity is defined as the way of disseminating information to the public at large,
through media. It creates awareness and credibility in the people regarding a brand,
product or the company.

Publicity aims at spreading the information or news, to the maximum number of

people, with in limited time. It is a non-paid form of communication, which is not
under the control of the company.
Public Relations is all about maintaining the positive image of the
company in the eyes of the public and developing strong relationships
with them. It encompasses a range of programs organised by the
company to promote its product and services.

The functions performed by the public relations department include

press relations, corporate communications, counselling etc.
Major Decisions in Public relations

Establish the marketing objectives

Chose the PR messages & vehicles: Implementing the MPR

Evaluating the MPR results

Significance/Importance of public relations

Help to convey the policies and programmes of the organisation.

Help to collect information about public opinion about the organisation,

management activities etc.

To overcome the complaints and dislikes of public.

To mould people’s attitude in favour of organisation.

 To maintain goodwill and understanding between organisation and public.

 To build an image of the organisation.

Methods /Tools of Public Relations

News bulletins

Speeches

Events

Written Materials

Public Service Activities

Key Differences between Publicity and Public Relations

 Publicity in the sense that it can be positive or negative feedback regarding the product or service
given by the customer or controversial news about the company. Public relations are always
positive, because it is strategized and managed by the public relations department of the
company.

 The term public relations, as the name suggest, is a strategic management tool, that aims to
create a company’s positive image in the eyes of the public. While publicity is not under the
control of the company, public relations is fully under the company’s control.
Publicity involves, gaining the attention of the media that communicates any
information or news regarding a product, service, person, organization, etc. so as
to create awareness in people. Public relations seek to attract the target
audience, for the purpose of boosting the company’s sales.
 Integrated marketing communication
Integrated marketing communication(IMC) refers to integrating all the
methods of brand promotion to promote a particular product or service
among target customers.

Integrated marketing communication (IMC) makes marketing activity more

efficient and effective because it relies on multiple communication methods and to
deliver a consistent message in multiple means and in more compelling ways.
Components of Integrated Marketing Communication
Foundation - As the name suggests, foundation stage involves detailed
analysis of both the product as well as target market. It is essential for
marketers to understand the brand, its offerings and end-users.

Corporate Culture - The features of products and services ought to be in

line with the work culture of the organization. Every organization has a
vision and it’s important for the marketers to keep in mind the same
before designing products and services.

Consumer Expectations - Marketers need to focus on consumer

experience which refers to what the customers feel about the product. A
consumer is likely to pick up a product which has good packaging and
looks attractive. Products need to meet and exceed customer
expectations.
Communication Tools - Communication tools include various modes
of promoting a particular brand such as advertising, direct selling,
promoting through social media such as Facebook, twitter, etc.

Integration Tools - Organizations need to keep a regular track on

customer feedbacks and reviews.It need to have specific software
like Customer Relationship Management (CRM) which helps in
measuring the effectiveness of various integrated marketing
communications tools.

Integrated marketing communication enables all aspects of marketing

mix to work together in harmony to promote a particular product or
service effectively among end-users.
 Social Marketing
Social marketing is an approach used to develop activities aimed at
changing or maintaining people’s behaviour for the benefit of
individuals and society as a whole.

social marketing is a proven tool for influencing behaviour in a

sustainable and cost-effective way.
How Social Marketing helps
Policy: Social marketing helps to ensure policy is based on an
understanding of people’s lives, making policy goals realistic and
achievable.

Strategy: Social marketing enables you to target your resources cost-

effectively, and select interventions that have the best impact over time

Implementation: Social marketing enables you to develop products,

services and communications that fit people’s needs and motivations.