Unit IV

Promotion
 PROMOTION MIX
• ADVERTISING
• SP
• PS
• PR
• DM
• PUBLICITY (Event, Sponsorships, OOH)
 ADVERTISEMENT
Any paid form of non-personal
presentation and promotion of
ideas, goods or services through
mass media such as newspapers,
magazines, television or radio
by an identified sponsor
BY PHILIP KOTLER
Advertising Media

Traditional New
Advertising Media Advertising
Media

 Television
 Radio  Internet
 Newspapers  Banner ads
 Magazines  Viral marketing
 Books  E- mail
 Direct mail  Interactive video
 Billboards
 Transit cards
 Advertising

Advantages Disadvantages

•Mass reach
•
 Reach large numberTotal cost is high
of people
•Self explanatory • National reach is
expensive for small
 Low cost per
companies
contact
•Visual Impact
 Can be micro-
targeted
 Objectives of Advertising

 Creating awareness (Informing)

 Creating favorable attitude (Persuasion)

 Managing customer loyalty (Reinforcement, Reminder)

 Advertising goals

 Launch of new products and services: I pods

 Expanding market to include new users:

Manufacturers of video camera may manufacture
CC TV networks

 Announcing a product modification New, Improved, New

refill pack
Sales Promotion

Sales
o ti o n Marketing activities—
P r om other than personal
selling, advertising, and
public relations—that
stimulate consumer
buying and dealer
effectiveness.
 SALES PROMOTION
Definition

It consists of diverse collection of incentive tools,

mostly short term, designed to stimulate quicker
and/or greater purchase of particular products/
services by consumers or the trade.
PURPOSE

 Sellers use incentive type promotions for variety

of customers

 To produce high sales response in short time

 To break down loyal customers of some other

brands
SIGNIFICANCE
 Yields faster and more measurable response
in sales than advertising

 Attractdeal prone customers who switch

brands as deal is available

 Loyal
customers don’t change because of
competitive promotion
MAJOR DECISIONS INVOLVED

1. Establishing the sales promotion

objectives

2. Selecting the sales promotion tools

CONSUMER PROMOTIONAL TOOLS
 Coupons
 Cash refund offers (rebate)
 Price packs
 Premiums
 Prizes (contests, sweepstakes, games)
 Patronage awards
 Free trials
 Product warranty
 Tie in promotion
 Cross promotion
 Point of purchase (POP), Displays or Demonstration
 TRADE PROMOTIONAL TOOLS

Allowances
Free goods
Free trip
Reduced price if loyalty confirmed
Business promotional tools

Trade shows and Conventions

Sales contest
Specialty advertising
Sales Promotion

Free samples
End
Consumers
Contests

Premiums
Company
Trade Shows
Employees

Vacation Giveaways
Trade
Coupons Customers
Personal Selling

e rs o n al
P
Sellin
g Planned presentation to
one or more prospective
buyers for the purpose
of making a sale.
PERSONAL SELLING

 A tool used in later stages of buying process, particularly

in building up buyers’ preference.
 Developed for (purpose):
Personal confrontation
Cultivation
Response
Steps in PS
 Prospecting and qualifying
 Pre-approach
 Approach
 Presentation and demonstration
 Overcoming objections
 Closing
 Follow up and maintenance
Public Relations

c
Publi
i on s The marketing function that
Relat
evaluates public attitudes,
identifies areas within the
organization that the public
may be interested in, and
executes a program of action
to earn public understanding
and acceptance.
Public relations
A PUBLIC is any group that has an actual or
potential interest or impact on a company’s
ability to achieve its objective.
Significance (PR)

 Assist in the launch of New Products (TATA)

 Assist in repositioning a Mature Product (A mineral water brand)
 Build up interest in product category (Amul Doodh)
 Influence specific target group (Special Child)
 Defend products that have encountered Public Problems
(Coca Cola)
 Build the corporate image which favors its product
(Desh ki Dhadkan)
Major tools in PR

 Events
 News
 Speeches
 Public –service activities
 Identity media like logos, stationery, uniforms, cards
The Function of
Public Relations

 Ma
intain
a posit
 Edu ive im
cate t age
compa he pub
ny’s ob lic about t
 Int jective he
roduce s
 Sup new p
roduct
port th s
 Ge e sales e
nerate ffort
favora
ble pu
blicity
 Direct Marketing
 Emails,
 online adverts,
 flyers,
 database marketing,
 promotional letters,
 outdoor advertising,
 phone text messaging,
 phone calls,
 postcards,
 websites,
 catalog distribution
 Definition by Don Schultz and Heidi Schultz (1998)

 ”IMC is a strategic business process used to

plan, develop, execute, and evaluate
coordinated, measurable, persuasive brand
communication programs over time with
consumers, customers, prospects, and other
targeted, relevant external and internal
audiences.”
Reaching the Customer: Encoding, “Noise,”
and “Decoding”

NOISE

Other ads
News articles
Other store displays

ENCODING DECODING
MESSAGE
SENDER THE THE RECEIVER
CHANNEL
MESSAGE MESSAGE

Mktg mgr Media, Salesperson Customers

Advertisement Receiver
Advertising mgr Retail store Media audience
Coupon interpretation of
Advertising News program News media
Sales presentation the message
agency Press release Clients
Store display
CHANNEL
FEEDBACK
Integrated Marketing
Communications
Integrated
Marketing
Communications

The careful coordination of all

promotional messages to assure
the consistency of messages at
every contact point where a
company meets the consumer.
The Communication Process (continued)

9 Elements in the Communication Process

1. Sender: message from HP

2. Encoding: HP Ad Agency Creating
the Ad
3. Message: the HP Ad
4. Media: the magazine
5. Decoding: consumer read and
assimilate the Ad
6. Receiver: home, office, target
7. Response: aware, will buy, will not
8. Feedback: action from consumer to HP
9. Noise: distraction, not clearly receiving the message
Managing the Marketing Communication Process
Eight Steps of Developing Effective Communications

 1) Identify the Target Audience

 2) Determine the Communication Objectives
 3) Design the Message
 4) Select the Communication Channels
 5) Establish the Communications Budget
 6) Deciding on the Marketing Communications Mix
(which promotional tools should be used)
 7) Measuring Results
 8) Manage Integrated Communications (Source: Kotler)
 1)Identify the Target Audience-Market segments-
 Target markets are those market segments whose needs and demands a company seeks to
serve and satisfy
 2) Determine the Communication Objectives
 -1) Inform2) Persuade3) Remind
 3) Design the Message-AIDA-Message Content/Message Structure- appeal, theme, idea, or unique
selling proposition-Message Format- layout, wording, quality Message Source- Who is
delivering the message
 4)Select the Communication Channels- Personal communication channels-Non-personal
communication channels
 5) Establish the Communications Budget-Top-down-Budgeting- senior management decides
how much each subunit receives-Bottom-up budgeting- when managers of subunits
determine how much is needed to achieve their objectives
 6) Deciding on the Marketing Communications Mix- Advertising-Public Relations-
communication with non-customers—including labor, public interest groups, stockholders,
and the government-Publicity- like advertising, is non-personal communication to a mass
audience, but unlike advertising, publicity is not directly paid for by the company that
enjoys the publicity
 7) Measuring the Communication Results- How is the company doing consumers responding?
 8) Managing the Integrated Marketing Communication process-Pre vs. Post
 STEP ONE
Identifying the target customers
• image analysis
done on the basis of different scales
• classifying the target customers
knowers
preferers
triers
indifferents
rejectors
non triers
 STEP TWO
Determining the communication objectives
• Awareness
• Knowledge
• Liking
• Preference
• Conviction
• Purchase
 STEP THREE
Designing the message
• Message content
appeal ( emotional, moral, rational)
theme, idea, USP,
• Message structure (conclusion driving,
presentation)
• Message format ( varies in print, audio, video)
• Message source (trustworthiness, likability)
 STEP FOUR
Selecting communication channels
• Personal channels
• Non personal channels
 STEP FIVE
Establishing total promotional budget
• Affordable method
• Percentage of sales method
• Competitive parity method
• Objective and task method
 STEP SIX
Deciding on the promotion mix
Nature of each promotional tool
• Advertising Public presentation, Amplified expressiveness
• SP Communication, incentive, invitation
• DM Customized
• PS Confrontation, cultivation, response
• PR & Publicity High credibility, dramatization
 Factors in setting the
promotion mix
• Type of product
• Push vs pull strategy
• Buyer readiness stage
• PLC stage
• Company market rank
• Measuring promotional results