Mod-4

promotion
 Marketing Communications

The means by which firms attempt to

inform, persuade, and remind
consumers, directly or indirectly, about the
products and brands they sell.
 Communications Mix
ADVERTISING SALES PROMOTION PUBLIC PERSONAL DIRECT
RELATIONS SELLING MARKETING
Press Point of purchase displays Press packs Sales Telesales
TV Competitions Seminars presentations Mail shots
Packaging On-pack offers Annual reports Sales Catalogues
meetings
Cinema Gift with purchase Sponsorships E-shopping
Incentive
Brochures Sampling Editorial Fax mail
programmes
Posters Coupons/MONP Lobbying Email
Samples
Directories Discounts Company Telemarketing
magazine Literature
Billboards Trade-in Voice mail
allowances/Refunds Events ”leave-
Display signs behinds” Texting
Logos Multi-buys Fairs and trade
shows Websites
Videos BOGOF
Advertorials 3 for 2 Exhibitions
Infomercials Cross-promotions/piggy Community
backing relations
Internet
Extra free Charitable
Radio
Loyalty cards/points/Clubs donations/activitie
s
Finance (low rate or interest
Speeches
free)
Website
Special Features/Limited
Editions
Guarantees (e.g. refund and
replace)
Recipes
 Communications Objectives

• Category need
• Brand awareness
• Brand attitude
• Purchase intention
 Importance of Marketing
• Increasing awareness
• Increasing knowledge & preferences
• Increasing retailers
• Increasing sales
• Increase customer traffic
• Build sales & profits
 Developing Effective Marketing
Communications
Steps in Marketing Communications Program Development

1. Identify target audience 5. Establish the budget

2. Determine objectives of 6. Select the marketing
communication
3. Design the message
communications mix
4. Select communication 7. Measure results
channels
8. Manage the IMC
process
• Step 1: Identifying the target audience
– Includes assessing the audience’s perceptions of
the company, product, and competitors’
company/product image
• Step 2: Cognitive (relating to / remembering),
affective, and behavioral objectives may be set
• Step 3: AIDA model guides message design
 Developing Effective Marketing
Communications
• Message content decisions
Message Design involve the selection of
appeal, theme, idea, or USP
• Types of appeals
• Content – Rational appeals
• Structure – Emotional appeals
• Format – Moral appeals

• Source
 Developing Effective Marketing
Communications
• One-sided vs. two-sided
Message Design messages
• Order of argument
• Content
presentation
• Structure
• Format
• Source
 Developing Effective Marketing
Communications

Message Design • Message format decisions vary

with the type of media, but
may include:
• Content – Graphics, visuals
• Structure – Headline, copy or script
– Sound effects,
• Format voice qualities
• Source – Shape, scent,
texture of package
 Developing Effective Marketing
Communications
• Message source
Message Design characteristics can influence
attention and recall
• Factors underlying
• Content perceptions of source
• Structure credibility:
– Expertise
• Format – Trustworthiness
• Source – Likability
• Step 4: Selecting Communication Channels
– Personal communication channels
• Effectiveness derives from personalization and
feedback
• Several methods of stimulating personal
communication channels exist
– Nonpersonal communication channels
• Influence derives from two-step flow-of-
communication process
• Step 5: Establishing the Marketing
Communications Budget
– Affordability method
– Percentage-of-sales method
– Competitive-parity method
– Objective-and-task method
• Step 6: Deciding on the Marketing
Communications Mix
 Developing Effective Marketing
Communications
• Advertising
Communications Mix • Sales promotion
Selection • Public relations and publicity
• Direct marketing
• Types of promotional tools • Personal selling
• Selection factors
 Developing Effective Marketing
Communications
• Consumer vs. business
Communications Mix market
Selection • Stage of buyer readiness
• Stage of product life cycle
• Types of promotional • Market rank
tools
• Selection factors
• Step 7: Measure Results
– Recognition, recall, attitudes, behavioral
responses
• Step 8: Manage the Integrated Marketing
Communications Process
– Provides stronger message consistency and
greater sales impact
– Improves firms’ ability to reach right customers at
right time with right message
 PROMOTION MIX
• The promotion mix consists of “the specific blend of
advertising, Sales promotion, Public relation, Personal selling,
& Direct marketing tools that a company uses to pursue its
advertising and marketing objectives
Components of Promotion Mix
• Advertising
• Sales Promotion
• Public Relation
• Personal Selling
• Direct Marketing
• Publicity.
 Objectives
🠶 There are certain
objectives :-
❖ To communicate
❖ To convince
❖ To compete
They must be addressed by
the seller.
 Meaning
• Modern marketing calls for more than just developing a good product,
pricing it attractively, and making it available to the target market. Despite
of these functions marketers must communicate their consumers about
the product, price and its availability.
• Matching the specific needs and wants of the buyers, putting price on the
product and making product available to the market only cannot help
organizations achieve their objectives of profit unless buyers are
communicated about the product, its price and availability.
• All the activities of an organization associated with communicating
about its product, price and
availability is promotion.
• Promotion is the component or element of marketing mix that is associated
with informing, persuading and reminding the market about the product
and offers, price, and availability which directly or indirectly affect the
consumer behavior and organizational sales.
• According to Philip Kotler :-" Promotion includes all the activities the
company undertakes to
communicate and promote its products to the target market".
2
• promotion is a tool used by company in order to communicate products' 2
Promotion Mix
• A company’s total marketing communication mix – also
called as promotion mix
consists of the specific blend of advertising, sales
promotion, public relation,
personal selling, and direct marketing tool that the
company uses to pursue its advertising and marketing
objectives.

i. Advertising: any paid form of non-

personal presentation and
promotion of ideas, goods or services by
and identified sponsor.
ii. Sales promotion: Short term in incentives
to encourage the purchase or saleof a
product or service.

2
3
iii. Public relations: building good relations with the
company’s various publics by obtaining
favorable publicity, building up a
good corporate image and handling or heading
off unfavorable rumors, stories and events.
iv. Personal selling: personal presentation by the
firm’s sales force for the
purpose of making sales and building customer
relationships.
v. Direct marketing: direct connections with
carefully targeted individual consumers to both
obtain an immediate response
and cultivate lasting
• customer relationships through the use of telephone,
mail, fax, e-mail, internet and other tools to
communicate, directly with specific consumers.
 Factors Affecting Determination of
promotion Mix
1. Promotion Objective
2. Promotion Budget
3. Nature of Market
4. Nature of Product
5. Product Life Cycle
6. Promotion Strategy
➢ (push, pull, interpersonal, Mass
communication)

25
 Promotion Objective

• For clear information objective – Advertisement and

propagation
• For assurance objective – Personal Selling and
Advertisement
• For order/demand objective – Personal selling and Sales
promotion
• For reminding objective - Advertisements
Nature of Market
• Small Market – One way method/Personal selling
• Big market – More than one medium
• Consumer Market – Advertisement and Sales promotion
• Industrial Market- Personal sales and Promotional 26
 Nature of Product

For Consumer goods –

Advertisement For Industrial
goods- Personal selling
For low priced goods –Advertisement and Sale promotional
For high priced goods-Personal Selling and Local
advertisement For Special goods – Personal selling and
propagation

Product life cycle

@ Introduction stage –Advertisement and

propagation @Growth Stage-Advertisement
@Maturity- Rapid Advertisement
@Decline – Personal selling, Sales Promotion and 27
Propagation
2
8
Advertising/
Advertisement
• Advertising is nothing but apaid form of
non-personal presentation or promotion of
ideas, goods or services by an identified
sponsor with a view to disseminate
information concerning an idea, product or
service.
• This is a powerful element of the promotion
mix. Essentially advertising means spreading
of information about the characteristics of
the product to the prospective customers
with a view to sell the product or increase
the sales volume.

2
9
The main features of advertise are as
under:
➢ It is directed towards increasing the sales of business.
➢ Advertising is a paid form of publicity
➢ It is non-personal. They are directed at a mass audience
and nor at the individual as is in the case of personal
selling.

➢ Advertisement are identifiable with their sponsor of

originator which is not always the case with publicity or
propaganda.

3
0
Objective / Functions of advertising
Preparing Ground for New Product
New product needs introduction because potential customers have never used
such product earlier and the advertisement prepare a ground for that new product.
Creation of Demand
The main objective of the advertisement is to create a favorable climate for
maintaining of improving sales. Customers are to be reminded about the product and
the brand. It may induce new customers to buy the product by informing them its
qualities since it is possible that some of the customers may change their brands.
Facing the Competition
Another important objective of the advertisement is to face to competition.
Under competitive conditions, advertisement helps to build up brand image and brand
loyalty and when customers have developed brand loyalty, becomes difficult for the
middlemen to change it.
Creating or Enhancing Goodwill: Large scale advertising is often undertaken with the
objective of creating or enhancing the goodwill of the advertising company. This, in turn,
increases the market receptiveness of the company’s product and helps the salesmen to11
win customers easily.
Objective / Functions of advertising
Informing the Changes to the Customers
Whenever changes are made in the prices, channels of
distribution or in the product by way of any improvement in
quality, size, weight, brand, packing, etc., they must be informed to
the public by the producer through advertisement.
Neutralizing Competitor’s Advertising
Advertising is unavoidable to complete with or neutralize
competitor’s advertising. When competitors are adopting intensive
advertising as their promotional strategy, it is reasonable to follow
similar practices to neutralize their effects. In such cases, it is essential
for the manufacturer to create a different image of his product.
Barring New Entrants
From the advertiser’s point of view, a strongly built image
through long advertising helps to keep new entrants away. The
advertisement builds up a certain monopoly are for the product in
which new entrants find it difficult to enter. 3
2
Types of
Advertising

3
3
Types of advertising
• Print Advertising - The print media has been used for
advertising since long. The newspapers and magazines are quite
popular modes of advertising for different companies all over
the world.
• Using the print media, the companies can also promote their
products through brochures and fliers. The newspaper and
magazines sell the advertising space and the cost depends on
several factors.

1
4
 Cont…
• Broadcast Advertising - This type of
advertising is very popular all around the
world. It consists of television, radio, or Internet
advertising.
• The ads on the television have a large
audience and are very popular. The cost of the
advertisement depends on the length of the ad
and the time at which the ad would be
appearing.
Types of advertising
• Outdoor Advertising - Outdoor advertising makes use of
different tools to gain customer’s attention. The billboards,
kiosks, and events and tradeshows are an effective way to convey
the message of the company.

1
5
• Covert Advertising - This is a unique way of
advertising in which the product or the
message is subtly included in a movie or TV
serial. There is no actual ad, just the mention
of the product in the movie.
For example, Tom Cruise used the Nokia
phone in the movie Minority Report.
awareness as far as general public is
concerned.
 Cont..
• Public Service Advertising - As evident
from the title itself, such advertising is for
the public causes. There are a host of
important matters such as AIDS, political
integrity, energy conservation, illiteracy,
poverty and so on all of which need. This
type of advertising has gained more much
importance in recent times and is an
effective tool to convey the message.
•
Sales
promotion

4
2
 Sales Promotion

“A direct inducement that offers an extra

value or incentive for the product to the
sales force, distributors, or the ultimate
consumer with the primary objective of
creating an immediate sale.”

An extra
incentive to to buy A tool to speed up
An extra incentive
buy sales
speed up sales

Targeted to
different parties
These are distributed to attract
consumers to try out a new product
and thereby create new customers.
Some businessmen distribute samples
among selected persons in order to
popularize the product.
Common examples - shampoo,
washing powder, coffee powder, etc.
 Premiums
Premium: an offer of an item of
merchandise or service either free
or at a low cost that is an extra
incentive for customers

Two Types of
Premiums

Self-liquidating
Free Premiums:
Premiums: require
Only require
consumer to pay
purchase of the
some or all of the
product
cost of the premium
COUPONS
Sometimes, coupons are issued by
manufacturers either in the packet of a
product or through an advertisement
printed in the newspaper or magazine
or through mail. These coupons can be
presented to the retailer while buying
the product. The holder of the coupon
gets the product at a discount. Best
example for this is coupons distributed
by the pizza restaurants like dominos,
pizza hut, etc
Contests and Sweepstakes

Contest: a promotion where consumers compete for

prizes or money on the basis of skills or ability.
Winners are determined by judging entries or
ascertaining which entry comes closes to some
predetermined criteria

Sweepstakes/games: a promotion where winners

are determined purely by chance and cannot
require a proof of purchase as a condition for entry.
Winners are chosen by random selection from a
pool of entries or generation of a number to match
those held by game entrants.
BONUS REWARDS/ POINTS
Certain retail shops will have a scheme which
will require the customer to be a member of
the shop and to acquire membership card for
the same. And every time the customer
makes a purchase bonus points are added to
the card and at the end of the year gifts
are given for the points earned.
Example – coffee day bonus points card,
Moore super markets, Reliance fresh.
MONEY BACK OFFER/ REFUNDS
Under this scheme customers are
given assurance that full value of the
product will be returned to them if
they are not satisfied after using the
product.
When customers doubt the quality or
reliability of your product or service,
offer a money-back guarantee. Give
a detailed explanation of eligible
returns and refunds available for
customer reference.
Eg : Telebrands shopping
Exchange offer
Scratch and win
offer Bonus offer

Price-off offer
 Definitions
Personal selling –
1) two-way flow of communication
2) between a buyer and seller
3) a face-to-face or real time encounter

W hy are “ face to face” and “two-way”

important?
 Definitions

According to Philip Kotler:-

“As face to face interaction with one or

more prospective purchasers for the purposes
of making the sales.”
 Definitions

American Marketing Association defines Personal

Selling as:-
“Personal Selling is the oral presentation in a
conversation with one or more prospective purchases for
the purpose of making sales , it is the ability to persuade
the people to buy goods and services at a profit to the
seller and benefit to the buyer.”
Objectives of Personal
Selling
1.Creation of Demand
2.Handling Objectives
3.Exploring Hidden Words
4.Educating Customers
5.Building Relationships
6.Providing Feedback
Importance of Personal
Selling
1. Benefits to consumers

2.Benefits to company

3.Benefits to society
Steps In Personal
Selling
Prospecting Identifying
and Qualifying

Pre approach and call planning

Presentation approach and

demonstration

Handling of Objections

The close

Follow up
 Advantages of Using
Personal Selling

1.Personal selling is face to face activity, customers

therefore obtain a relatively high degree of personal
attention.
2.The sales message can be customized
3.The two way nature of sales
4. Good way of getting across large amounts of
information about product.
5.Demonstrate the product
6.Frequent meetings help in building long term
relationships
 Disadvantages Of
Personal Selling
1.Cost of employing sales force

2.In addition to basic pay incentives are to be

provided

3.Sales person can only call on one customer at

a time.
Pu b l i c
R e l a t i o ns
s
What is Public Relations?
It’s the art and science of talking to the right audience in the right
voice. It influences and shapes a company’s image, reputation,
brand perception and culture.
Nature of PR
➢ PR is essentially defensive

➢It is a corporate armour that a company can wear which would

protect a company during adverse times

➢Public Relations can also be defined simply as the practice of

managing communication between an organization and its public.
Functions of Public Relation
➢ Media Representation
➢ Crisis Communication
➢ Content Development
➢ Stakeholder Relations
➢ Social Media Management
➢ Public Image Strategy
➢ Outreach Events
➢ Handling Emergencies
➢ Counselling
➢ In house Journals
➢ Special Events
➢ Public Service Activities
Benefits of Public Relation
➢ Credibility

➢ Cost

➢ Avoidance of
Clutter

➢ Lead
Generation

➢ Selectivity

➢ Image
Building
Role of PR Officer
➢ Advocate- The public relation manager is the chief advocate for
the company, he must focus all energy on building an organization
that will be deemed a good corporate citizen. He’s the mouthpiece
for management. In political circles he is known as the press
secretary .

➢ Communicator- The public relations manager crafts

communications policies and oversees the development of all
statements and news releases for the company. Sociology,
Psychology and Good Journalism are the requisite talents for the
manager and staff.
➢ Problem Solver- The public relations manager is the ultimate spin
doctor. It is his job to put the best face on news and company’s
reputation. Often, he will be called upon to polish mundane
information into platinum data that gives the company more credit
than would originally be due for routine accomplishments.

➢ Opinion Maestro- The public relations manager directs all

outreach efforts. He is responsible for media placements and
coordinating organizational functions and the efforts of executives.
It is his responsibility to determine the executive appropriate
for each situation and ensure that person has approved information
and statements in hand.
Types of Public
Relations
• Media Relations : relationship with the people of media industry
• Corporate Public Relations: Managing the public profile and
reputation of a company and includes Issue Management, Corporate
Advertising, Cause Related Marketing, Advocacy Advertising
• Crisis Management : Cadbury’s, Maggi, Coke
• Marketing Public Relations : To support Marketing Objectives
• Employee Relations:
• Financial Relations: Annual Budget books for stakeholders & investors
• Community Relations: Corporate Social Responsibility
• Government Relations: lobbying with the government officials.
Tools Of Public
Relations
• Publications
• Video & films
• News Releases & Press Conference
• Special events & Social Activities
• Company Sponsorship /Events
• Social Appearances
• Online Media tool
Advantages of PR
• Very credible and inexpensive
• PR can hold down promotion costs

Disadvantages of PR

• Difficult to quantify PR benefits

• Lack of control
• ‘Deft’ management required
PUBLICITY
PUBLICITY IS THE MOVEMENT OF INFORMATION WITH THE
EFFECT OF INCREASING PUBLIC AWARENESS OF A SUBJECT

INVOLVES THE GENERATION OF NEWS ABOUT A COMPANY,

PRODUCT, SERVICE, BRAND OR PERSON IN VARIOUS MEDIA.

IT IS A SUBSET OF THE PUBLIC RELATIONS EFFORT.

SHORT-TERM FOCUS

NOT ALWAYS UNDER THE CONTROL OF THE FIRM

CAN BE NEGATIVE AS WELL AS POSITIVE

NON-PAID COMMUNICATION
 Examples of
What it is ? Publicity
 Publicity is the free  Sponsorship
mention of a product or  A testimonial
company
 Someone’s analysis or
prediction
 Differs from advertising If I squeeze out a
because a company does few tears I
not pay for the exposure, wonder if I can
earn back some
it gets in the media of my
sponsors…

 Major disadvantage is
that companies have lack
of control on it
Tiger Woods Speech
OUTLINE
 Getting attention from the press
 Writing a good press release

 Communicating with the press

 Best practices
Reebok Used a
Press
Conference to
Announce the
Sponsorship of
Shakira
1. Oral-B Drone Deliveries Publicity
Stunt
2. Red Bull's New Moon Event
3. McDonald's Women's Day Flip
 GETTING ATTENTION FROM THE PRESS

 Creating “Buzz”

 Famous by Association
⚫ Tip from Julia Allison “Whenever someone takes a picture of me, I always try
to stand next to someone famous..”
 Making An Announcement
⚫ Launch, Investment, Opening of an office, impressive statistics, new product
with hot new features
 Other options/Goodie
⚫ A funny story
⚫ Be part of a trend
⚫ Mystery or something impressive
BEST PRACTICES
 Following up with a Journalist who hasn’t published
anything
 Corrections

 Competitors

 Social Media
⚫ Facebook – activity on Fan pages can be news
⚫ Twitter – sometimes tweets can be news worthy
⚫ Quora – interesting replies to questions can lead to stories
 Top secrets
TYPES OF PUBLICITY
 Positive Publicity
 Negative Publicity
 DEALING WITH NEGATIVE PUBLICITY
DO s Don’t s

 Open all  Hesitation

Communication lines  Litigation

 Select a spoke person  Retaliation

 Be Empathetic  Prevarication

 Stay Calm  Pontification

 Confrontation

 Obfuscation
PUBLICITY TECHNIQUES
 Continous Public Relation Activities
⚫ Local Community Involvement
⚫ Newsletters, Newspapers and Company magazines
⚫ Media Relations
⚫ Employees Relations
⚫ Shareholders and financial community relations
 Pre-planned, Short-term activities
⚫ News, Press Conferences
⚫ Ceremonies, opening and events
⚫ Announcements
 Unpredictable, Short-term activities
⚫ Handling Negative Publicity
⚫ Media Interviews
 Lectures,
Public conferences
Speaking
Presentations,
Speeches

News Event
Publicity Events
Management

Press Conferences
Media Interviews, photo
Relations calls
Press Releases
OUTCOMES OF PUBLICITY
 Attention
 Visibility

 Market Share

 Recognition

 Branding
ADVANTAGES
 It Is Credible
 It is Cost Effective

 Often generates High Frequency of exposure

Disadvantages

 Less Control
 Less accuracy

 Few releases published

• Advertising budget is a financial document that shows the total
amount to be spent on advertising and lists the way this amount
is to be allocated.

• It is a translation of an advertising plan into monetary units.

• It helps in meeting advertising objectives of an org.

• It is prepared for a specific future period of time.

• It is prepared by the advertising manager in consultation with the

marketing manager and approved by the top management.

• It shows the plan of allocation of available funds to various

advertising activities.
➢ FACTORS INFLUENCING THE ADVERTISING BUDGET
• Advertising task to be achieved

• Stages in the product life cycle.

• Market share

• Competition

• Frequency of advertising

• Product differentiation

• Support from retailers

• Financial resources
❑ Setting advertising objectives.
❑Determining tasks to be performed
to achieve advertising objectives.
❑ Setting advertising objectives.
❑Determining tasks to be performed
to achieve advertising objectives.
❑ Preparing advertising budget.
❑ Approval.
❑ Allocationof advertising budget.
❑ Monitor & control.
❑ AFFORDABLE METHOD

❑ PERCENTAGE-OF-SALES METHOD

❑ COMPETITIVE-PARITY METHOD

❑ OBJECTIVE-AND-TASK METHOD

❑ JUDGEMENT METHOD
❑ INCREMENTAL CONCEPT APPROACH
❑ RETURN ON INVESTMENT METHOD
❑ QUANTITATIVE METHOD

❑ EXPERIMENTAL APPROACH
❑The name itself gives an idea about this
method.
❑The amount which is affordable by the
company will be taken as the budget for
advertising.
❑Eg: If a company is willing to spend 3
lakhs for promotion purpose, then it will
be the advertising budget of that
particular company.
❑A fixed percentage of sales will be
allocated for promotion.
❑Budget is set based on the availability
of funds & not on the basis of market
opportunities.
❑It encourages competitive stability,
which means our competitor will also
spend approximately same amount for
promotion.
❑Promotion budget is prepared after
analyzing the overall objectives of the
company and also the tasks to be
performed to achieve the goals.
❑Then consider the cost required to
perform the task.
❑The sum of the costs is the proposed
promotion budget.
❑ Implementing this method is very easy.
❑In this method the judgment of
experienced & senior managers are
taken and based on that prepare the
advertising budget.
❑The estimation will be approximately
correct.
❑Certain factors like availability of funds,
stage in the PLC, nature of consumers
etc are noted.
❑Also known as ‘Increase over Last Year’s
Budget’.
❑The budget of previous year will be
taken as a benchmark and calculate the
current year’s budget by adding or
subtracting from it.
❑Advertising cost is increased due to
increase in price level of advertising
inputs. So it is called as ‘incremental
budgeting’.
❑In this method cost incurred for
advertising will be taken as an
investment & not as an expenditure.
❑According to this method we are
investing on advertising with an
expectation of returning something
more than invested.
❑Income generated from advertising will
extends over a particular time period.
❑According to this method, the
advertising budget is prepared using
statistical methods like simulation,
multiple regression, probability etc.
❑It computes the budget based on the
factors which influence the budget.
❑ It can be utilized only by experts.
❑It can be considered as a substitute to
the mathematical models & statistical
methods.
❑Experiments & tests are taken over
chosen market areas, consider the
results & prepare the advertising budget
based on the observations.
❑All the disadvantages faced by other
methods can be eliminated using this
method.
 Sales Promotion
⚫The ‘American Marketing Association’
defines-
⚫“In a specific sense, sales promotion
includes those sales activities that
supplement both personal selling &
advertising,& co-ordinate them & make
effective, such as displays, shows,
demonstrations & other non-recurrent
selling efforts not in the ordinary routine”.
 TOOLS & TECHNIQUES OF SALES
PROMOTION
⚫ Demonstrations.
⚫ Trade fairs & exhibitions.
⚫ Coupons, premium, free offers, price-offs, etc..
⚫ Free samples.
⚫ Joint promotion.
⚫ Contests.
⚫ Consumer contests dealer contests.
⚫ Merchandising / display.
⚫ Sales promotion on the Internet.
 DEMONSTRATIONS

⚫Demonstrations at retail stores

⚫School demonstrations
⚫Door-to-Door demonstrations
⚫Demonstrations to key people
 TRADE FAIRS & EXHIBITIONS

⚫ They also form one of the oldest practices in

sales in sales promotion.
⚫ Trade fairs & exhibitions provide companies with
the opportunity of introducing & displaying their
products.
⚫ In case of high cost industrial products, trade
fairs have become a handy & effective sales
promotion tool.
⚫ This is especially so in international marketing
because orders & inquiries worth billions get
generated at international trade fairs.
 COUPONS, PREMIUMS, FREE OFFERS, PRICE-OFFS,
DISCOUNTS,EXTRAS,INSTALMENT-PAYMENT
OFFERS,EXCHANGE OFFERS

COUPONS:-
⚫ Coupons are certificates which offer price
reductions to consumers for specified items.
⚫ These are distributed through newspaper &
magazine advertisements, or through the
package of the merchandise, or direct mail.
⚫ These perform normally two specific functions
for the manufacturer.

⚫
Premiums & free offers:-
❖ Aristocrat luggage
❖ Suzuki shogun bike
❖ Aqua fresh toothpaste
❖ Colgate
❖ Benchmark
❖ Santro
❖ IT firms
❖ Samsung
Cont..

Discounts, price offs:-

➢Nirlep
➢Hawkins
Installments offers:-
➢Washotex:- It is a scheme where came up
with washing machines “pay 20% now, take
home washotex” was offered to consumers.
Exchange Schemes, Money back Offers:-
⚫Akai exchange scheme.
⚫Godrej fridge with Akai TV.
⚫Videocon –money back offer.
⚫Philips 5-in-one offer.
Free samples & gifts:-
The company offers free samples & gifts to
consumers to persuade consumers to try the
product.
For eg:-soaps, detergents, toothpaste & coffee
etc…….for free samples.
For eg:-pen, calendars, diaries, table decorations
etc…… for gifts.
 Consumer Contests

Factors that decide success of

consumer contests:-
⚫They must be simple to operate from
the standpoint of the consumers.
⚫Another condition for the success of
the contest is the publicity given to it.
⚫Another precondition is the current of
honesty behind the offer.
 CONTESTS

➢Contests of various kinds constitute another

widely-used sales promotion tool.
➢There are ‘dealer contests’ meant exclusively
for the dealers of the company and
‘consumer contests’ open for all.
➢Dealer contest normally remain a closed
affair between the company & its dealers.
EXAMPLES OF CONSUMER CONTESTS

➢ The Bombay Dyeing contest

➢ The Nescafe Shake contest
➢ Cadbury’s family contest
➢ Bajaj – ‘Scratch the card’ contest
➢ Bata-HAHK contest
➢ Pepsi contest for children
➢ Philips ‘dare to compare’ contest
➢ ‘Gold bonanza’ by HMT & Titan
➢ LAKME ‘create your own shade’ contest
➢ Reid & Taylor/James Bond movie contest
 JOINT PROMOTIONS

⚫It is another new trend

⚫Two or more firms from different
industries, but with shared markets and
values, join together & conduct sales
promotion programmes.
⚫It helps to save promotional expenses for
every partner.
⚫For eg:- oberoi, Lufthansa & American
Express, Centurion Bank & Videocon.
 MERCHANDISE/DISPLAY

⚫ Proper merchandising & display at the store

level promotes sales.
⚫ It prompts the consumer to switch over to the
displayed brand ignoring existing brand loyalties.
⚫ Display enhances counter pull, display at the
point of purchase (pop) can be rightly described
as a ‘clincher’ in the marketing process.
⚫ Eg: ITC, Pepsi cool zone, Kwality-Walls in glass
topped freezer.
 SALES PROMOTION ON THE INTERNET

⚫ Internet is emerging as the new advertising

medium.
⚫ For sales promotion too, people are turning to
internet.
⚫ Marketers run promotions on specific sites that
attract audience who are interested in
promotions and contests.
⚫ Sites like Contest2win.com & hungama.com are
examples, where several leading brands like
levis, Sony, Cadbury, Bacardi & Pepsi run online
contests offering exciting prizes.
Major Types of Advertising Media

Newspapers

Magazines

Radio

Television

Outdoor Media

Internet

Alternative Media
Newspapers

Advantages Disadvantages

▪ readership
▪ Limited demographic
▪ Geographic selectivity selectivity
▪ Immediacy ▪ Little color
▪ High individual market ▪ May be expensive
coverage
▪ Clutter (mess/confusion)
▪ Short lead time
▪ Mass market medium
Magazines
Advantages Disadvantages

▪ Higher cost per contact

▪ Long-term advertiser
▪ Good reproduction commitments
▪ Demographic selectivity ▪ Slow audience build-up
▪ Regional/local selectivity ▪ Limited demonstration
▪ Long advertising life capabilities

▪ High pass-along rate ▪ Lack of urgency

▪ Long lead time
Radio
Advantages Disadvantages

▪ Selectivity and audience

segmentation
▪ Immediate and portable ▪ No visual treatment
▪ Geographic flexibility ▪ Short advertising life
▪ Entertainment carryover▪ High frequency to
generate retention
▪ Short-term ad
commitments
Television
Advantages Disadvantages

▪ Short life of message

▪ Expensive with high
▪ Wide, diverse audience campaign cost
▪ Low cost per thousand ▪ Little demographic
▪ Creative and demonstrative selectivity with network
▪ Immediacy of messages ▪ Long-term advertiser
commitments
▪ Entertainment carryover
▪ Long lead times
▪ Demographic selectivity with
cable ▪ Clutter
Outdoor Media
Advantages Disadvantages

▪ High exposure
frequency ▪ Short message
▪ Moderate cost ▪ Lack of
demographic
▪ Flexibility selectivity
▪ Geographic selectivity▪ High “noise” level
▪ Broad, diverse market
Examples of Alternative Media

Fax Machines

Video Shopping Carts

Computer
Screen Savers

Ads in
Movies and Videos
Modern media
⚫Internet : Banner, Interstitial ads, Pop ads,
video ads
⚫Cinema & theatre programme
⚫In flight advertising
⚫Transit advertsing
Advertising Copy

⚫Ad-copy is the written or spoken message

which the advertiser wants to
communicate to its target audience
through any type of advertisements
Elements of ad-copy
⚫Headlines
⚫Sub heads
⚫Slogans ,logo type, & signatures
⚫Blurb
⚫Identification mark
⚫Body copy
⚫Catchy phrases
⚫Boxes & panels
⚫Closing idea
Media Selection Considerations

Cost per The cost of reaching one

Contact member of the target market.

The number of target consumers

Reach exposed to a commercial at least
once during a time period.
The number of times an individual
Frequency is exposed to a message during a
time period.
The ability of an advertising
Audience medium to reach a precisely
Selectivity defined market.
Assessing Advertising Effectiveness -
Effectiveness Measures

Reach
Frequency • What proportion of
the target audience
Continuity
do we want to see
Cost (or read, or hear)
the advertising
message?
Effectiveness Measures

Reach
Frequency
• How often should
Continuity the target audience
Cost be exposed to the
advertisement?
Effectiveness Measures

Reach
Frequency
Continuity • When are the best
times to reach the
Cost target audience?
Effectiveness Measures

Reach
Frequency
• What is the least
Continuity expensive way to
Cost accomplish the
other objectives?
Evaluating Advertising Effectiveness

⚫Communication Effect Research

Consumer feedback method
Portfolio tests
Laboratory tests
⚫Sales-Effect Research
 Evaluating Advertising Effectiveness
Communication-Effect Research
⚫Copy testing
⚫Consumer feedback method
• Example questions:
 What is the main message you get from this ad?
 What do you think they want you to know, believe, or
do? How likely is it that this ad will influence you to
undertake the implied action?
 What works well in the ad and what works poorly?
 How does the ad make you feel?
 Where is the best place to reach you with this
message?
Contd..,

⚫Portfolio test – ask consumers to view or listen

to a portfolio of advertisements, taking as much
as they need. Consumers are then asked to
recall all the ads & their content
⚫Laboratory test – use equipment to measure
physiological reactions – heartbeat, blood
pressure, galvanic skin response- to an ad
Contd..,
Advertising Research Techniques
For Print Ads. Starch and Gallup & Robinson, Inc. are two
widely used print pretesting services. Test ads are placed in
magazines, which are then circulated to consumers. These
consumers are contacted later and interviewed. Recall and
recognition tests are used to determine advertising
effectiveness.
For Broadcast Ads. In-home tests: A videotape is taken into the
homes of target consumers, who then view the commercials.
Trailer test: In a trailer in a shopping center, shoppers are
shown the products and given an opportunity to select a
series of brands. They then view commercials and are given
coupons to be used in the shopping center. Redemption rates
indicate commercials’ influence on purchase behavior.
Contd..,

⚫Sales-Effect Research – Advtg’s sales

effect is generally harder to measure than its
communication effect. Sales are influenced by many
factors, such as the product’s features, price, &
availability.
 Companies are generally interested in finding out
whether they are overspending or underspending on
advtg. This question can be answered with following
formula
 A company’s Share of advtg expenditures
produces a share of voice (i.e., % of company
advtg of that product to all advtg of that product)
that earns a share of consumers’ minds and
hearts & ultimetly, a share of market.