MARKETING COMMUNICATION: PROMOTION

Meaning and Definition of Marketing Communication

Promotion is a communication process, by which the producers of the products or services draw attention of the consumers
or prospective consumers towards their products and services. Promotion is also called marketing communications in
which consumers are informed and reminded about the products and are requested and persuaded to purchase their products.
Such communication may be made either along the product or well in advance of the introduction of product into the market.
According to Philip Kotler, “Promotion compasses all the tools in the marketing mix whose major role is persuasive
communications”.
According to Stanton, “Promotion includes, advertising, personal selling, sales promotion and other selling tools”.
Thus, promotion includes every activity which inspires people to buy the goods and services of the company. Promotion is
that marketing communication activity that attempts to inform and remind individuals and persuade them to accept, resell,
recommend or use a product, service, idea or institution.
Promotional communication has the triple purpose to perform i.e., to inform, to persuade and to remind, are being fulfilled at
the different stages of product life cycle. For example, in the introduction stage promotion’s main function is to inform, in
growth stage to persuade and in maturity stage reminder and persuasion.
Promotional communication is not always directed towards the ultimate consumer. It can be for industrial customers,
institutions or some times towards middlemen. Promotion is an important tool for both the profit as well as non-profit
organisations.

Objectives of Marketing Communication

1) Leads to Behaviour Modification: Promotion seeks to:
i) Modify behaviour and thoughts (for example,
persuading to drink Coca Cola rather than Pepsi), Demand goal without promotion
Demand goal with promotion
ii) Reinforces existing behaviour (for example, persuading
to continue Coca Cola once customer began to take).
Price

Price
The marketer hopes to create the favourable image for itself
and also to motivate purchases of the company’s goods and
Present Demand
services. Present Demand

2) Objective to Inform: All promotional communications are Quantity (a) Quantity (b)
designed to inform the largest market about the firm’s product
or services. Informative promotion is more prevalent in the Figure 15.1: Objective of Promotion is to Change the Shape of Demand
early stages of product life cycle of a product or service. It is
necessary to increase the primary demand. The first thing which the customer needs is the information about the product
itself, its features etc. It leads the customer in making more intelligent purchase decision.

3) Objective to Persuade: It is designed to stimulate purchase. Though the firms want to create a positive image for the
long term gain rather than the immediate purchase. Persuasion objective is the main objective when the product reaches
to the growth stage of its product life cycle because at that time the consumer formation objective and consumer
retention objective both has to be taken simultaneously.
4) Objective to Remind: It is used to keep the product brand name in the public’s mind and is used in the maturity stage of
the product life cycle. This type of promotion is used to fresh the memory of the target customers assuming that they
know the product.
5) Specific Objectives: Broadly speaking the goal of promotion is to change the pattern of demand for a product by
behaviour modification, informing, persuading and reminding. In Economic terms the basic purpose of promotion is to
change the location and shape of the demand curve (figure 15.1) it means to shift the demand curve upward or to make a
change even temporarily.

Importance of Marketing Communication

The key importance of marketing communication or promotion that it brings to marketer is as follows:
1) Consistency of Message Delivery: By approaching the planning process in a holistic manner, companies can ensure that
all components of the communications program deliver the same message to the target audience. Importantly, this
demands the adoption of an overall strategy for the brand, rather than developing individual strategies for the separate
tools of marketing communications. The avoidance of potential confusion in the minds of consumers is a paramount
consideration in the development of effective communications programs.
2) Corporate Cohesion: For the company, promotion can be used as a strategic tool in communicating its corporate image
and product/service benefits. This has important consequences both on an internal and an external level. As consumers
increasingly gravitate towards companies with whom they feel comfortable, it becomes important to ensure that the
overall image projected by the organisation is favourably received. This demands, in turn, the development of a cohesive
communications program within the organisation – to ensure that all people working for the company fully understand
the organisation’s goals and ambitions – and externally – to present the company in the most favourable light.
3) Client Relationships: For the agency, it provides the opportunity to play a significantly more important role in the
development of the communications program and to become a more effective partner in the relationship. By
participating in the totality of the communications requirements, rather than having responsibility for one or more
components, the agency can adopt a more strategic stance. This, in turn, yields significant power and provides important
advantages over competitors.
4) Interaction: Promotion ensures better communication between agencies and creates a stronger bond between them and
the client company. By providing a more open flow of information it enables the participants in the communication
program to concentrate on the key areas of strategic development, rather than pursue individual and separate agendas.
5) Motivation: Promotion offers the opportunity to motivate agencies. The combined thinking of a team is better than the
sum of the parts (and unleashes everyone’s creative potential).
6) Participation: Everyone owns the final plan, having worked together on the brainstorming and implementation,
avoiding any internal politics. Potentially, this can overcome the divisive nature of individual departments i.e., ‘fighting
their own corner’.
7) Measurability: Perhaps the most important benefit is the delivery of better measurability of response and accountability
for the communications program.

Promotion Mix: Marketing Communication Tools

Communication/Promotion is one element of Marketing Mix. Promotional activities include Advertising (by using different
media), sales promotion (sales and trades promotion), and personal selling activities. It also includes internet marketing,
sponsorship marketing, direct marketing, database marketing, and public relations. And integration of all these promotional
tools alongwith other components of marketing mix to gain edge over competitor is called promotion mix.
Promotion mix/Marketing Communication mix refers to the combination of various promotional elements viz.
advertising, personal selling, publicity and sales promotion techniques used by a business firm to create, maintain and
increase demand of the product. It involves an integration of all the above elements of promotion.
According to Philip Kotler, “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”.
According to Gary Armstrong, “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”.
Usually a firm chooses more than one type of promotional tools and the manager of the firm is to decide how he is going to
choose the communication media and blend them into an effective promotion program. Promotion mix is the name given to
the combination of methods used in communicating with customers.

Elements of Promotion Mix

Marketers have at their disposal the major methods of promotion; taken together these comprise the promotion mix. But in the
present scenario, the promotional tools have widened their scope and number of types. There are many other promotional tools
also which are considered under the promotion mix such as e-commerce/internet marketing, sponsorship, exhibitions,
packaging, point-of-purchase displays, corporate communications/identity, event marketing, trade shows, and customer service.

When these tools are integrated in a harmonious manner to reach and exceed the promotion objective, the outcome is called
Integrated Marketing Communication (IMC). IMC has been adopted as the best possible way to promote one’s offering
according to the situation. The major elements of promotion mix/communication mix are as follows:
1) Advertising: Advertising includes any informative or persuasive Elements of Promotion Mix
message carried by a non-personal medium and paid for by a
sponsor whose product is in some way identified in the message.
Traditional mass media, such as television and magazines, are most Advertising
commonly used. However, the direct mailing of catalogues, Personal Selling
electronic media advertisements featuring computerised ordering, and
Publicity
other direct-response vehicles are becoming increasingly popular. Sales Promotion
2) Sales Promotion: It includes activities other than advertising,
personal selling publicity and public relations which are used in Public Relations Direct Marketing
promoting sales of the product or in persuading the customer to
purchase the product. Distribution of samples, premium coupon, Word-of-Mouth
point of purchase display, off-price selling, etc. is the examples of Online Marketing
sales promotion techniques.
3) Personal Selling: Personal selling is a person-to-person dialogue between buyer and seller. The purpose of the
interaction, whether face-to-face or over the phone, is to persuade the buyer to accept a point of view, to convince the
buyer to take a specific course of action, or to develop a customer relationship.
4) Publicity: Publicity is a non-personal not paid stimulation of demand of the products or services or business units by
planting commercially significant news or editorial comment in the print media or by obtaining a favourable presentation
of it upon radio, television or stage.
5) Public Relations: Most firms in today’s environment are not only concerned to customers, suppliers and dealers but also
concerned about the effect of their actions on people outside their target markets. It is a planned effort by an organisation
to influence the attitudes and opinions of a specific group by developing a long term relationship. There target may
include a large number of interested public (customers, stock holders, government agencies, special interest groups).
6) Direct Marketing: In Direct Marketing, organisations communicate directly with target customers to generate a response
and/or a transaction. Traditionally, direct marketing has not been considered an element of the promotional mix. However,
because it has become such an integral part of the IMC program of many organisations and often involves separate
objectives, budgets, and strategies, marketer view direct marketing as a component of the promotional mix.
7) Word-of-Mouth: Word of mouth is a reference to the passing of information from person to person. Originally the term
referred specifically to oral communication but now includes any type of human communication, such as face to face,
telephone, email, and text messaging. An organisation’s image can be projected through channels other than the formal
communication process. Of course, positive word-of-mouth recommendation is generally dependent on customers
having good experiences with an organisation, and studies have shown how unexpectedly high standards of service from
a company can promote recommendation.
8) Online Marketing: Unlike traditional forms of marketing communications such as advertising, which are one-way in
nature, the new media allow users to perform a variety of functions such as receive and alter information and images,
make inquiries, respond to questions, and, of course, make purchases. In addition to the Internet, other forms of
interactive media include CD-ROMs, kiosks, and interactive television. However, the interactive medium that is having
the greatest impact on marketing is the Internet, especially through the component known as the World Wide Web.
Factors Affecting Promotion Mix
Companies must consider several factors in developing their communications mix. Following are the major factors
considered by companies while determining the promotion mix strategy.
1) Type of Product: The promotion task depends on the type of Factors Determining Marketing Communication Mix
product marketed. Low-priced, frequently purchased consumer
goods like toilet soap, toothpastes, soft drinks, etc., will need
Type of Product
frequent repeat messages to influence and remind the existing Nature of Market
consumers about the brand and to persuade new consumers to Stage in the Product Life Cycle
buy. Advertising is used for such products on a mass scale at a Budget Availability
high frequency. The promotion mix will consist of press ads,
magazine ads, TV spots, cinema slides, incentive offers, Company Policy Type of Product Market
contests, etc.
For an industrial product of high value and high technology which Buyer-Readiness Stage
is purchased infrequently, personal selling, product demo, exhibition, and sales presentations become the necessary promotion
mix.
2) Nature of Market: The intensity of competition in the market, locational characteristics of the consumers, and the
requirements of channel members also influence the promotion mix decision. If the target audience is large and widely
spread-out in different parts of the country, advertising and sales promotion will be effective and economical. For
example, consumer goods.
3) Stage in Product Life Cycle: Based on the stage at which the product is in the PLC the promotion mix has to change.
When the product is in the introduction and early growth stages, the tasks involved are awareness creation and
motivating product trials. The best promotion mix will consist of publicity, spreading information, advertising, consumer
sales promotions and trade promotions. Later, as the product reaches the maturity stage, the objectives of maintaining
brand loyalty and creating brand preferences become more important. Aggressive brand advertising and dealer
promotions become important components of the promotion mix at that stage.
4) Budget Availability: Using each promotion tool adds to the cost. Hence, the budget availability with a company has to
be considered while deciding the promotion mix. Companies with limited resources will have to go for localised
activities like dealer display, wall paintings, and personal selling. Companies with larger resources can go for large scale
and more sophisticated promotion tools.
5) Company Policy: All the considerations given above should fit in with the overall marketing and promotion policy of
the company, while deciding the promotion mix. The conviction of the top management in the role of promotion, the
product market strategy, and the type of corporate image it wants to project are factors influencing the decision.
6) Type of Product Market: Communications-mix allocations vary between consumer and business markets. Consumer
marketers tend to spend comparatively more on sales promotion and advertising; business marketers tend to spend
comparatively more on personal selling. In general, personal selling is used more with complex, expensive, and risky
goods and in markets with fewer and larger sellers (hence, business markets).
7) Buyer-Readiness Stage: Communication tools vary in cost-effectiveness at different stages of buyer readiness.
Advertising and publicity play the most important roles in the awareness-building stage. Customer comprehension is
primarily affected by advertising and personal selling. Customer conviction is influenced mostly by personal selling.
Closing the sale is influenced mostly by personal selling and sales promotion. Re-ordering is also affected mostly by
personal selling and sales promotion, and somewhat by reminder advertising.

ADVERTISING
Meaning and Definition of Advertising
Advertisement or commercial, often just advert, ad, or ad-film is a span of media programming produced and paid for by an
organisation that conveys a message, typically one intended to market a product. Advertisement revenue provides a
significant portion of the funding for most privately owned television networks.
The term ‘advertising’ is derived from the original Latin word ‘advertere’ which means ‘to turn’ the attention. Every piece of
advertising turns the attention of the readers or the listeners or the viewers or the onlookers towards a product or a service or
an idea. Therefore, it can be said that any thing that turns the attention to an article or a service or an idea might be well
called as advertising.
According to American Marketing Association, “Advertising is any paid form of non-personal presentation of ideas,
goods or services by an identified sponsor”.

According to Wheeler, “Advertising is any form of paid non-personal presentation of ideas, goods or services for the
purpose of inducing people to buy”.

According to William J. Stanton, “Advertising consists of all the activities involved in presenting to a group, a non-
personal, oral or visual, openly-sponsored message regarding a product, service or idea, this message is called on
advertisement, is disseminated through one or more media and is paid for by an identified sponsor”.

An integral part of marketing, advertisements are public notices designed to inform and motivate. Their objective is to
change the thinking pattern(or buying behaviour ) of the recipient, so that he or she is persuaded to take the action desired by
the advertiser. When aired on radio or television, an advertisement is called a commercial. Advertisements of this sort have
been used to promote a wide variety of goods, services and ideas since the dawn of television.

Objectives of Advertising
The specific objectives of advertising are as follows:
1) To Increase Demand: Advertising creates the awareness about the product among the target audience. They are made to
feel the need of the product. Advertising also make them feel that only advertiser’s product can satisfy this need. Thus
advertising creates demand and helps in increasing the market share of advertiser’s products.
2) To Sell a New Product and to build New Brands: Advertising introduces a new product to potential customers. These
potential customers are given information regarding features, contents, quality, price and availability of the new product.
Advertising can help to sell a new produced quickly, thus enabling the manufacturer to recover the costs of developing
the new product. Advertising is done to build brand familiarity and brand popularity.
3) To Educate the Masses: Non commercial advertisements issued by government department and social-organisations
aim at educating the masses. For example, ads issued by health departments about pulse-polio, AIDS, dengue fever,
female-foeticide etc, educate the masses about these fatal diseases/problems and suggest the ways to prevent them.
4) To Build Brand Preference: Advertising helps the manufacturers and marketers to build brand preference and brand
loyalty of their products. It will help the manufacturers to stay in the market in long run and enable them to charge
higher price for their products.
5) To Support Salesmen: Advertising provides great support to salesman. It becomes easy for the salesmen to sell the
product that are well advertised. People respond favourably to the call of salesman if the brand is popular. Advertising
also makes the audience understand the product and its uses. So it becomes easy for the salesmen to convince the people
to buy product.
6) To Remind the Customers of the Product and Company: The regular advertisements remind the product and the
company to the consumers. Many customers are likely to forget the company and its products, but repeated ads on
popular media help the firms to remain in touch with customers.

Strengths of Advertising
The major strengths of advertising can be measured in terms of its advantages which are as follows:
1) Advantages to Manufacturers
i) Increased Sales: The chief object of the manufacturer in advertising his products is to promote the sale of his
products. Goods produced on a mass scale are marketed by the method of mass persuasion through advertising. By
repeating advertisements, the manufacturers are not only able to retain existing markets but are also able to expand
the markets both by attracting more people to their products and also by suggesting new uses for them. Advertising
acts as an aid to selling.
ii) Steady Demand: Advertising has led to the smoothening out of the seasonal fluctuations in demand for many
products. The manufacturers are generally trying to discover and advertise new possible uses of which a seasonal
product may be put. The innovation of cold tea and cold coffee for the use during summer has helped in increasing
the demand for these beverages even in that season. The same may be said for refrigeration.
iii) Lower Costs: Advertising provides a drive to the sale and increases the turnover tremendously. This is
advantageous in two ways: on one side, the selling costs including the cost of advertising get spread over a large
 volume of sales, thus lowering the average cost of selling; while on the other side; higher turnover necessitates high
volume of production, thus lowering the average cost of production per unit.
iv) Greater Dealer Interest: The retailers who deal in advertised goods are materially assisted by advertising in the
performance of their functions. Advertising creates demand by which every retailer gets an opportunity to share with
others. The retailers have not to bother much about pushing-up the sale of such products. So, they evidence more
interest in advertised products.
v) Quick Turnover and Smaller Inventories: A well-organised advertisement campaign creates a highly responsive
market thereby facilitating quick turnover of the goods. This, in turn, results in lower inventories in relation to sales
and being carried-on by the manufacturers.
vi) Supplementing Salesmanship: Advertising prepares the necessary ground for the efforts of the salesmen. When a
salesman meets its prospect, they have just to canvass for a product with which the consumer may already have been
familiarised, through advertisements. Thus, the salesman’s efforts are supplemented and his task is made easier by
advertising.
2) Advantages to Consumers
i) Facility of Purchasing: Advertising makes purchasing easy for the consumers. Moreover, the re-sale prices (prices
at which the goods are to be sold by the retailers) are generally fixed and advertised. Thus, advertising offers a
definite and positive assurance to the consumer that they will not be overcharged for the advertised product. The
consumer can make his purchases with utmost ease and confidence.
ii) Improvement in Quality: Goods are generally advertised under brand names. When a person is moved by the
advertisement to use the product, they proceeds on the hope that the articles of the particular brand will be better
than the other brands of the same goods. If his experience confirms his expectation, a repeat order can be expected.
Otherwise, the sales may rise very high once but may drop down very low subsequently when the consumer’s
confidence in the quality of the product is shaken.
iii) Consumer’s Surplus: Advertising increases the utility of given commodities for many people. It points-out and
pays even more for certain products which appear to have higher utility to them. If these products are available at the
original lower prices, there will naturally be a certain amount of consumer’s surplus in terms of increased
satisfaction or pleasure derived from these products.
iv) Education of Consumers: Advertising is an educational and dynamic principle. Advertising aims at educating the
buyers about new products and their diverse uses. In this process, it introduces new ways of life to the people at large
and prompts them to give-up their old habits and inertia. Advertising thus paves the way to better standards of living.

Weaknesses of Advertising
Advertising is known to perform three main functions, i.e., ‘inform’, ‘persuade’, and ‘remind’. However, in doing so,
advertising has also been subjected to a number of criticisms mainly because it has been misused by some people to serve
their own ends, overlooking the business interests. Some of the major targets of such criticism/weaknesses are described
below:
1) Multiplication of Needs: It is said that advertising compels people to buy things they do not need. Human instincts, like
desire to possess, to be recognised in the society, etc., are provoked in order to sell products. Sometimes, various types
of appeals are advanced to arouse interest in the product. Sentiments and emotions are played with to gain customers.
2) Misrepresentation of Facts: By misrepresentation of the benefit a product will give, goods of no real value are sold.
Tall claims are made by the advertisers to tempt people to take such actions as go purely to their advantage and cause
tremendous loss to the consumer.
3) Consumer’s Deficit: While advertising leads to increased satisfaction from commodities already in use, it also creates
discontent in the minds of many people who are tempted to purchase some commodities but are not able to do so
because of insufficient purchasing power. Such discontent is obviously not very desirable from the point of view of
society, particularly if it affects a large majority of people. But it is important if it acts as a spur to social change.
4) Increased Cost: There is a great deal of controversy as to whether advertising leads to increase in the cost which the
community has to pay for a product. In a sense, it is true since expenses on it form a part of the total cost of the product.
But at the same time, it would be wrong to infer that if the advertising costs were cut down the goods would necessarily
be cheaper. Advertising is, no doubt, one of the items of costs but it is a cost which brings savings in its wake on the
distribution side.
5) Barriers to Entry: There is a general belief that advertisements promote industrial concentration to a greater or lesser
degree. The extent of such concentration may vary with the character of the individual trade, the advertisability of the
product and the technical conditions of its production. However, studies on this subject are not conclusive. The evidence
of positive association between advertising and concentration is weaker than can be expected.
6) Product Proliferation: Critics of advertising point out that advertising encourages unnecessary product proliferation. It
leads to the multiplication of products that are almost identical, resulting in wastage of resources which could otherwise
have been used to produce other products.
7) Inefficient Manufacturers Stay in Business: One of the short-term effects of advertising is that it can enable inefficient
manufacturers to sell their sub-standard products by extensive advertising and thus stay in business. This is detrimental
to consumers if they can be lured by advertising into buying low-quality products.
8) Propensity to Consume: It is generally believed that advertising raises the propensity to consume. Raising the
propensity to consume can be undesirable as it can lead to conspicuous consumption. Thus, money can be frittered away
on inessentials. It is also argued that the higher the propensity to consume the lesser will be the savings. This leads to
problems of capital formation and so investment may be hindered.

SALES PROMOTION
Meaning and Definition of Sales Promotion
Sales Promotion is another important component of the marketing communications mix. It is essentially a direct and
immediate inducement. It adds extra value to the product and hence prompts the dealer/consumer to buy the product. Thus,
sales promotion methods aim to capture the market and increase the sales volume. It is an important instrument in marketing
to lubricate the marketing efforts. Now-a-days sales promotion is a necessary tool to boost sales.
In the broader sense, it is not expenditure; it is an investment, as it pays rich returns. It aims in creating demand. It is right to
say that sales promotion moves the product. A manufacturer must make the customers to know the product and he must
influence them to buy that product.
According to William J. Stanton, “Sales promotion is an exercise in information, persuasion and influence”.
According to American Marketing Association, “These marketing activities, other than personal selling, advertising and
publicity that stimulate consumer purchasing and dealer effectiveness such as display shows and exhibitions, demonstrations
and various non-recurrent selling efforts not in the ordinary routine”.
According to Philip Kotler, “Promotion encompasses all the tools in the marketing mix whose major role is persuasive
communication”.
Sales promotion has different types and each type is given more importance under following different situations:
1) In case of seasonal goods, to sell the product in off season, consumer-oriented sales promotion is very effective.
2) When middlemen are more popular than manufacturers, then middlemen-oriented sales promotion is very effective.
3) When old stock is to be cleared and immediate sales increase is needed.

Difference between Sales Promotion and Advertising

Basis of Difference Advertising Sales-Promotion
1) Approach Advertising is a non-personal means of Sales-promotion can be both personal and
communication. Here, non-personal means impersonal. Some of the sales-promotion-
advertising involves media for transmitting message schemes may involve face-to-face contact be-
to the target audience. There is no face-to-face tween dealer and customers while some sales-
communication between sender and receiver. promotion schemes may not involve face-to-face
contact.
2) Objective Objective of advertising is to inform, persuade and Main objective of sales promotion is to promote
remind the target customers about the product of the sales. It is directly related to promoting sales.
advertiser. The ads communicate the message and
persuade the audience to buy advertiser’s product.
Thus advertising indirectly promotes sale through
communication.
 3) Short-term Long- Advertising has both short-term and long-term Sales promotion has short-term effect on sales.
term effect on sales. Advertising creates brand awareness Sales promotion schemes are designed for
and brand preference which has effect in the short- immediate increase in sales. When these
run as well as in the long-run. schemes are withdrawn, the sales decline.
4) Target Group Advertising is generally targeted to ultimate Sales promotion can be targeted to different
consumers. It is not for a specific group. specific groups, viz., consumer-oriented sales
promotion, dealer-oriented sales promotion,
salesmen-oriented sales promotion.
5) Frequency Advertising is more frequent and repetitive than Sales promotion schemes are launched less
sales promotion. frequently. These are repeated less frequently in
comparison to advertising.
6) Cost Advertising is very cost effective for commu- Sales promotion is a costly method as some
nicating message to large audience. Here, per- economic-incentive is given in the form of free
audience communication-cost is low, as it is a gifts, free samples, extra discounts, viz., off-
means of mass communication. season discount, etc.
7) Feedback Immediate feedback from target audience is not In case of personal sales promotion schemes,
possible as it is always impersonal in nature. The immediate feedback can be taken. If the pro-
target audience cannot enquire about their spective customer has some doubts about sales
doubts/queries. promotion scheme then he can inquire about it
from the dealer/salesman, etc.
8) Nature of Status In case of ‘sales-promotion’ it is playing supporting ‘Advertising’ and ‘personal selling’ are purely
role. That is sales-promotion is attempted or independent yet supporting one another. They
resorted to fill in the gaps left over by the personal are fundamental in nature as impersonal and
and impersonal efforts namely salesmanship and personal efforts respectively.
advertising.
9) Achievement of The policies are short-terms as “sales-promotion” Policies are long-term and strategies are short-
Goals aims at attaining short-term goals, and these change terms. The “personal selling” and “advertising”
time to time and place to place. goals are policies and hence policies are long-
term which do not change very often.
10) Means Used Sales promotion resorts to consumer and dealer Advertising uses different media as in-door, out-
coupons, special prizes, special exhibits, free door, direct and promotion. That means it is
samples and contests. mostly impersonal – such as newspapers,
journal, television, radio, video, rural advertising
means, display advertising and promotion media
vehicles.

Objectives of Sales Promotion

The various objectives of sales promotion are as follows:
1) To Introduce New Products: To induce buyers to purchase a new product, free samples may be distributed or money
and merchandise allowance may be offered to business to stock and sell the product.
2) To Attract New Customers: New customers may be attracted through issue of free samples, premiums, contests, and
similar devices.
3) To Induce Present Customers to Buy More: Present customers may be induced to buy more by knowing more about a
product, its ingredients, and uses.
4) To Help Firm Remain Competitive: Sales promotions may be undertaken to meet competition from a firm.
5) To Increase Sales in Off Season: Buyers may be encouraged to use the product in off seasons by showing them the
variety of uses of the product.
6) To Increase the Inventories of Business Buyers: Retailers may be induced to keep in stock more units of a product so
that more sales can be affected.
7) To Develop Patronage Habits among Customers: It can be done by popularising goods and services of the producer
among the potential consumers and to motivate them towards larger purchases.
8) To Educate Customers: Educating customers/dealers and salesmen simplifies the efforts of salesforce and motivate
them for larger purchase.
9) To Stimulate Sales: Sales promotion can promote larger sales in certain specified segments of market. To stimulate
maximum sales on special occasions such as Diwali, religious festivals, and other such occasions.
10) To Facilitate Coordination: Sales promotion can be easily used to facilitate coordination and proper link between
advertising and personal selling.

Tools/Methods of Sales Promotion

The various sales promotion devices can be broadly classified in two ways:
1) Consumer Promotion: Sales promotion directed at consumers may be done with a view to increase the products rate of
using among existing consumers or to attract new consumers to the company’s product. It may also be undertaken to
retaliate the competitors’ sales promotion or other activities. Major forms of consumer promotion are as follows:
i) Free Distribution of Samples: It involves free distribution of samples to ultimate consumers. The samples may be
distributed door to door, or may be offered in a retail store, or with the purchase of any particular product.
ii) Coupons: A coupon is a certificate that entitles the consumer to a specified saving on the purchase of a specified
product. These coupons are usually issued by the manufacturers through the retailers or in most of the cases; they are
kept inside the package.
iii) Premiums or Bonus Offers: An offer of a certain amount of product at no cost of consumers who buy a stated
amount of a product or a special pack thereof is called premium offer or bonus offer.
iv) Money Refund Offer: This offer is generally stated in media advertising that the manufacturer will return the price
if the product is not to the satisfaction of the consumer within a stated period. For example, Bull-worker exerciser is
promoted this way.
v) Contests or Sweepstakes: At times, contests are arranged with a view to attract new users to the company's product.
An opportunity under this device is given to consumer to contest with a chance to win cash prizes, free air trips or
goods. It is an indirect manner of introducing a new product.
vi) Bonus Stamps: Such bonus stamps are issued to the consumers by the retailers or manufacturer in proportion to
their purchases. The consumer goes on collecting stamps until he has sufficient quantity to obtain desired
merchandise in exchange of the stamps.
vii) Draw: Under this system, every purchaser making a purchase of certain specified amount is offered a coupon during
a certain period. After the expiry of the period a draw is made and attractive prizes are given to the winners.
viii) Cheap Bargain or Self Liquidating Premium: Under this method, the consumer is offered another product at a
cheaper rate along with the purchase of company’s product. For example, a plastic bucket of 5 liter at ` 5 only with
the purchase of one kg. pack of ‘Surf’.
2) Middleman Promotion: Incentive programmes for dealers aim at obtaining maximum cooperation from distribution
channels such as wholesalers, semi-wholesalers and retailers, who form the vital links in the distribution chain.
Manufacturers want preferred store locations and special displays. There are different types of deals and the most
common among them are described below:
i) Buying Allowance Discount: The buying allowance or discount is offered to the dealer to induce him to buy the
manufacturer’s product. Such discount may be either deducted on invoice price or on cash paid.
ii) Buy-back Allowance: Under this method, the manufacturer offers a certain amount of money for additional new
purchases based on the quantity of purchases made on the first trade deal.
iii) Display and Advertising Allowance: The allowance is offered to the dealer to display the manufacturer’s product.
The allowance is given on the basis of space provided to display the manufacturer’s product in the shop.
iv) Dealer-Listed Promotion: Under this method dealer name and address is given on the advertisement and other
publicity material as calendars, diaries, etc.
v) Push Money or PM’s: This is an incentive payment in cash or in kinds to the retailer or salesman to push the sale at
a fixed rate for each article sold.
vi) Sales Contests: It is device used to stimulate and motivate distributors, dealers and their sales staff. They are offered
cash prizes for those who will win the sale contest, i.e., who will make the highest sales of the company’s product. In
view of the winning chance, sellers participate in the contest.
 vii) Advertising Material: The advertising materials such as calendars, New Year diaries, literature, sign boards,
packing bags, posters, etc. are supplied by the producer of the product to the dealer or middlemen for advertisement.
viii) Credit Facility: The producers allow credit to their dealers, based on the quantity purchased by them. This enables
them to purchase bulk quantity.

Strengths of Sales Promotion

The major strengths of sales promotion are:
1) Sellers introduce new products or new brands in the market by the use of sales promotion.
2) When an economy is going through a recessionary phase, customers become more prices sensitive. Marketers can tackle
this problem with the help of promotional tools like offering gift or discount coupons, gifts, contests, sweepstakes, etc.,
to the customers.
3) Can be effective for changing a variety of consumer behaviour s.
4) A company seeks to obtain greater co-operation from its retailers. It helps in earning the goodwill of dealers and
distributors.
5) Can be easily tied in with other promotional tools.
6) Excellent approach for short term price reductions for stimulating demand.

Weaknesses of Sales Promotion

The several weaknesses of sales promotion are:
1) There is a feeling that such seasonal sales promotional activities are mainly intended to sell sub-standard product.
2) The second criticism is that such discounts are not real, since the prices of the products are already inflated.
3) These activities are short-lived, so the results realised are also short-lived. As soon as these activities offering of various
concessions, free gifts, etc., are withdrawn, the demand also goes down rapidly.
4) May have only short term impact.
5) Over use of price related sales promotion tools may hurt brand image and profits.
6) Effective sales promotions are easily copied by competitors.

PERSONAL SELLING
Meaning and Definition of Personal Selling
Personal selling is a highly distinctive word and the only form of direct sales promotion involving face-to-face relationship
between sellers and potential customers. Personal selling is flexible and extremely effective but costly form of sales
promotion. Personal selling is a two-way communication or mutual communication.

According to American Marketing Association, “Personal selling is oral presentation in a conversation with one or more
prospective purchasers for the purpose of making sales”.

According to Richard Bushirk, “Personal selling consists of contacting prospective buyers personally”.

Personal selling is a direct, face to face, seller to buyer conversation which can communicate relevant facts about the product
and the firm to the prospect so that he or she may take buying decision. Personal selling can use the psychology of
persuasion most effectively so as to encourage a buying decision.

Difference between Advertising & Personal Selling

Basis of Difference Advertising Personal Selling
1) Personal, Non-Personal Advertising is a non-personal form of marketing Personal selling is a personal form of
communication. It involves no face-to-face marketing-communication in which selling is
contact between sender and receiver of message. made through face-to-face contact.
2) Individual, Mass Advertising is a form of mass communication. Personal selling is a type of individual
Communication Here mass media like T.V., radio, newspaper is communication. Here message is
used. Message is communicated to a large group communicated individually, i.e., at one time
at the same time. message is communicated to one person only.
Mass media is not used here.
 3) Feedback Immediate feedback cannot be taken in
advertising as it is one-way communication. In
case the message is not understood by the
audience then, they cannot immediately inquire
for their doubts/queries.
4) Adjustability of Message In advertising message cannot be adjusted as per
the requirements/background of individual
target audience. Same message is given to all
target audience irrespective of their individual
differences.
5) Objective The objective of advertising is to inform,
persuade and remind the target customer. Here
emphasis is on brand-awareness, brand-
popularity, brand-preference, etc. Here through
communication of message, sales-objective is
achieved. Hence, sales-objective is achieved
indirectly through communication objective.
6) Usefulness Advertising is more useful for consumer goods
having wide market area.
7) Cost Per Audience Here, cost per audience is less, as advertising
message is communicated to large group of
persons.
8) Speed In advertising, message can be delivered quickly
by using fast media like newspaper.
Immediate feedback can be taken by salesmen
during sales talk/sales call. It is a form of two-
way communication. Target customers can
inquire about their doubts/queries from the
salesman immediately if the message is not
clear to them.
In personal selling, message can be adjusted by
the salesmen as per the
requirement/background/circumstance of
individual target customers, i.e., message can
be moulded for different target customers.
Objective of personal selling is to sell the
product. Here achieving sales is direct
objective.
Personal selling is more useful for industrial
goods where number of customers is less.
Here cost per audience is more as message is
communicated individually to each target-
customer.
In personal selling, message communication is
a slow process, as each target-customer is
contacted separately.

Objectives of Personal Selling

Personal selling is used to meet the five objectives in the following ways:
1) To Build Awareness: A common task of salespeople, especially when selling in business markets, is to educate
customers on new product offerings. In fact, salespeople serve a major role at industry trades shows where they discuss
products with show attendees. But building awareness using personal selling is also important in consumer markets. As
we will discuss, the advent of controlled word-of-mouth marketing is leading to personal selling becoming a useful
mechanism for introducing consumers to new products.
2) To Create Interest: The fact that personal selling involves person-to-person communication makes it a natural method for
getting customers to experience a product for the first time. In fact, creating interest goes hand-in-hand with building product
awareness as sales professionals can often accomplish both objectives during the first encounter with a potential customer.
3) To Provide Information: When salespeople engage customers a large part of the conversation focuses on product
information. Marketing organisations provide their sales staff with large amounts of sales support including brochures,
research reports, computer programs and many other forms of informational material.
4) To Stimulate Demand: By far, the most important objective of personal selling is to convince customers to make a
purchase. The entire selling process tells that how salespeople accomplish this when we offer detailed coverage of the
selling process used to gain customer orders.
5) To Reinforce Brand: Most personal selling is intended to build long-term relationships with customers. A strong
relationship can only be built over time and requires regular communication with a customer. Meeting with customers on
a regular basis allows salespeople to repeatedly discuss their company’s products and by doing so helps strengthen
customers’ knowledge of what the company has to offer.

Strengths of Personal Selling

The major strengths of personal selling are as follows:
1) Allowing for Two-way Interaction: The ability to interact with the receiver allows the sender to determine the impact
of the message. Problems in comprehension or objections can be resolved and in-depth discussions of certain selling
points can be provided immediately. In mass communications this direct feedback is not available and such information
cannot be obtained immediately (if at all).
2) Tailoring of the Message: Because of the direct interaction, messages can be tailored to the receiver. This more precise
message content lets the sender address the consumer's specific concerns, problems, and needs. The sales representation
can also determine when to move on to the next selling point, ask for the sale, or close the deal.
3) Lack of Distraction: In many personal selling situations, a one-to-one presentation is conducted. The likelihood of
distractions is minimised and the buyer is generally paying close attention to the sales message. Even when the
presentation is made by a group of salespeople or more than one decision maker is present, the setting is less distracting
than those in which non-personal mass media are used.
4) Involvement in the Decision Process: Through consultative selling and relationship marketing, the seller becomes more
of a partner in the buying decision process, acting in conjunction with the buyer to solve problems. This leads the buyer
to rely more on the salesperson and his or her products and services. An added benefit may be increasing the
involvement of the organisation’s own employees.
5) Source of Research Information: In a well-integrated marketing/sales department the sales force can be the “eyes and
ears” of the firm. Sales reps can collect information on competitor’s products and services, promotions, pricing, and so
on. In addition, they can learn about the buying needs and wants of customers and potential customers.

Weaknesses of Personal Selling

The major weaknesses of personal selling are as follows:
1) Inconsistent Messages: The ability to adapt the message to the receiver is a distinct advantage of personal selling. But
the lack of a standardised message can become a disadvantage. The message to be communicated is generally designed
by the marketing staff with a particular communications objective in mind. Once this message has been determined, it is
communicated to all receivers. But the salesperson may alter this message in ways the marketer did not intend. Thus, the
marketing staffs are at the mercy of the sales force with respect to what exactly is communicated.
2) Sales Force/Management Conflict: Unfortunately, there are situations in even the best companies when one wonders if
the sales staff and marketing staff know they work for the same company and for the same goals. Because of failure to
communicate, corporate politics, and myriad other reasons, the sales force and marketing may not be working as a team.
The marketing staff may not understand the problems faced by the sales staff, or the salespeople may not understand
why marketing people do things the way they do. The result is that the sales force may not use materials provided from
marketing, marketing may not be responsive to the field's assessment of customer needs, and so forth. The bottom line is
that the communications process is not as effective as it could be due to faulty internal communications and/or conflicts.
3) High Cost: As the cost per sales call continues to climb, the marketer may find mass communications a more cost-
effective alternative.
4) Poor Reach: Personal selling cannot reach as many members of the target audience as other elements. Even if money
were no object (not a very likely scenario!), the sales force has only so many hours and so many people it can reach in a
given time. Further, the frequency with which these accounts are reached is also low.
5) Potential Ethical Problems: Because the manager does not have complete control over the messages the salespeople
communicate and because income and advancement are often directly tied to sales, sometimes sales reps bend the rules.
They may say and do things they know are not entirely ethical or in the best interest of the firm in order to get a sale.

DIRECT MARKETING
Meaning and Definition of Direct Marketing
Direct marketing (DM) is the process by which a firm approaches its customers on one-to-one basis and markets its products
directly to them. In conventional marketing, a firm approaches the customers on a mass basis and sells to them indirectly.
According to Direct Marketing Association of USA, “Direct marketing is an interactive system of marketing which uses
one or more advertising media to affect a measurable response and/or transaction at any location”.
An analysis of this definition brings out three key elements, namely:
1) Interactive System: It is an interactive system in the sense that there is a two-way communication between the marketer
and his/her target market; the response or non-response of the customer completes the communication loop in the direct
marketing programme. For example, when the customer fills in the response coupon in an advertisement or a catalogue
and mails it, he/she communicates to the marketer and hence completes the communication loop.
2) Measurability of Response: Another element is measurability of response – as mentioned above the number of coupons
received indicates the response rate to the marketer’s communication.
3) Transaction at Any Location: Direct marketing activities are not location specific; it is not necessary for the customer
to physically interact with the marketer; he/she can establish a contact through mail, phone, fax or the Internet.
 Direct Marketing Conventional Marketing
1) Direct Marketing is demassified marketing. Conventional marketing is mass marketing.
2) Direct Marketing is a two-way activity. Conventional marketing is a one-way activity.
3) Direct Marketing deals customers directly. Conventional mass marketing deals customers indirectly.
4) Direct Marketing does not involve marketing channels/stores. Conventional marketing relies heavily on marketing channels/stores.
5) Direct Marketing does not involve advertising/mass Conventional marketing relies heavily on advertising/mass
promotion. promotion.

Difference between Advertising and Direct Marketing

Advertising Direct Marketing
It is mass selling. Buyers are identified as broad groups sharing It is about selling to individuals. Customers are identified by
common demographic and psychographic characteristics. address and name.
Mass advertising cannot build personal relation. DM can build personal relation with each customer.
Advertising copy is “Me” and “It” copy – it focuses on what the DM copy is “You” plus “Benefits” copy – i.e., it is more personal.
company and the product does.
The retailer outlet is the market place. The medium is the market place, i.e., the product is ordered
through telephone, e-mail, etc.
Marketer may lose control over the product as it enters the Marketer controls the product until delivery.
distribution channel.
Advertising is used to build image, awareness, recall, loyalty, etc. DM is used to motivate an immediate order and enquiry.
Effectiveness of mass media such as advertising is more difficult Effectiveness of DM can be measured accurately.
to measure.

Methods of Direct Marketing

Direct marketers can use a number of channels for reaching prospects and customers are as follows:
1) Direct (face-to-face) Selling: The original and oldest form of direct marketing is the field sales call. Today most
industrial companies rely heavily on a professional sales force to locate prospects, develop them into customers, and
grow the business. Or they hire manufacturers’ representatives and agents to carry out the direct-selling task. In addition,
many consumer companies use a direct-selling force: insurance agents, stockbrokers, and distributors working for direct-
sales organisations such as Avon, Amway.
2) Mail Order Marketing/Catalogue Marketing: Mail Order Marketing (MOM)/Catalogue Marketing, also known as
Mail Order Business (MOB), is one of the well-established methods of direct marketing. In this method, the consumers
become aware of a product through information furnished to them by the marketer through catalogues dispatched by
mail. The entire marketing takes place by mail. Interested consumers respond by placing a mail order on the marketer;
the product is supplied to the consumer by mail; payment by the consumer is also made by mail, either by VPP or by
cheque, or by credit cards.
3) Direct Mail Marketing: Direct mail marketing (DMM) is similar to MOM. Usually, when a trading house markets
various products by mail order, we refer to it as MOM or MOB and when a manufacturer markets his products by the
same method, we refer to it as DMM. In direct mail marketing, not only letters/brochures are mailed to the prospects, but
free product samples, gifts and compliments are also mailed, depending on the context. Direct mail should be followed-
up by an e-mail, which is less expensive and less intrusive than a telemarketing call.
4) Telemarketing: Telemarketing describes the use of telephone operators to attract new customers, to contact existing
customers to ascertain satisfaction levels, or to take orders. In the case of routinely taking orders, it is called telesales.
Many customers routinely order goods and services by telephone. Companies use call centres for inbound telemarketing
– receiving calls from customers – and outbound telemarketing – initiating calls to prospects and customers.
5) Direct Response Marketing: Direct Response Marketing (DRM) is; another expression that we come across in the
context of direct marketing. It is similar to, but not exactly the same as direct mail marketing. What distinguishes direct
mail marketing and direct response marketing from each other is the media/instruments used. While direct mail
marketing relies on mail, i.e., letters/mailers for obtaining the response, direct response marketing uses more
instruments/media (including letters/mailers), like telephone, radio, TV and computer. Response is needed to be quick in
this format like call now… order now….
6) Tele-shopping/Home Shopping: Tele-shopping, alternatively known as home shopping, is one of the relatively more
recent editions of direct marketing. Here, the marketer hawks the product on the air and the consumer watches it on his
 TV screen at home, phones up the marketer and buys his requirement. Television home shopping is a retail format in
which customers watch a TV program demonstrating merchandise and then place orders for the merchandise by
telephone. Tele-shopping, alternatively known as home shopping, is one of the relatively more recent editions of direct
marketing. The three forms of electronic home shopping retailing are cable channels dedicated to television shopping,
infomercials, and direct response advertising.
7) Database Marketing: Database marketing is a form of direct marketing using databases of customers or potential
customers to generate personalised communications in order to promote a product or service for marketing purposes.
There is no particular definition of database marketing but it can be precisely defined as, “Communicating, promoting,
and selling activities based on a database management system (DBMS), which stores and refines data generated by a
firm’s routine marketing and selling efforts”. Database marketing is an important part of Analytic CRM. In a plain
language, database marketing is a marketing technique that utilises customer databases.

Strengths of Direct Marketing

The key strengths of direct marketing are as follows:
1) Focused Approach: It is possible to identify a very specific target market using direct marketing techniques. This
makes it a very useful promotional tool for niche products because it is possible to target only those who are likely to
respond to the promotion  there is less wastage.
2) Cost Effective: Although cost per thousand people reached may be high as compared to other mass marketing
promotional techniques, direct marketing can be very cost effective for niche products.
3) Immediate and Flexible: Some promotional activities can take a great deal of time to develop from first idea to final
execution  TV ads for example. Direct marketing is flexible and there are short lead times associated with its use
because of which it often has an immediate impact on customer responses.
4) Easy International Reach: It is relatively easy to adapt a direct marketing campaign to an international target
market.
5) Tailored Messages: Direct marketing also offers greater opportunities for developing tailor-made messages for
particular groups of consumers.
6) Rapid Delivery: Direct marketing is both swift and flexible in achieving results. This is especially true for
telemarketing, one of the direct marketing tools, as the results of a conversation can be logged immediately and scripts
adjusted straight away to improve results.
7) Multiple Uses: Direct marketing doesn't just have to be used to sell  it can be used to test new markets and trial new
products or customers, to reward existing customers to build loyalty, collect information for future campaigns, or
segment a customer base.
8) Relationship Building: Direct marketing is far more effective at initiating and developing a meaningful dialogue with
new customers. From the outset you have a direct relationship with them, which can also be used as part of a push pull
strategy to stimulate demand for retailers.

Weaknesses of Direct Marketing

The key weaknesses in the concept of direct marketing as promotion tool are as follows:
1) May be Seen as Competing with Existing Intermediaries: May upset marketing intermediaries as sales through direct
marketing may be taking sales away from them. In effect, you may end up competing with your own customers, that is,
the intermediaries.
2) May be Seen as Intrusive by Consumers: Especially a problem for door-to-door and telemarketing.
3) Costs: Initial customer acquisition costs are high — high cost per thousand reached; and database development can be
expensive.
4) Fraud: There is also the concern that personal information collected by legitimate direct marketing agencies could be
purchased by unscrupulous or shady companies for the express purpose of fraud.
5) Lack of Awareness: Many people are unaware of how the personal information they include on an order form or survey
may be used for targeted advertising later.
6) Cost: The cost per thousand will be higher than almost any other form of mass promotion (although the wastage rate
may be much lower).
7) Waste: Large quantities of paper are thrown away in direct marketing.
8) Privacy Concerns: Legitimate Direct Marketing firms should offer methods by which individuals can ‘opt out’ of these
lists upon request. Direct Marketing agencies must respect the do-not-call list maintained by government agencies.

DIRECT SELLING
Introduction
Direct selling is a dynamic, vibrant, rapidly expanding channel of distribution for the marketing of products and services
directly to consumers. Direct selling is the marketing and selling products directly to consumers away from a fixed retail
location. Peddling is the oldest form of direct selling. Modern direct selling includes sales made through the party plan, one-
on-one demonstrations, and other personal contact arrangements as well as Internet sales.

Direct selling may be defined as, “The direct personal presentation, demonstration, and sale of products and services to
consumers, usually in their homes or at their jobs”.

Direct selling often, but not always, uses multi-level marketing (salesperson is paid for selling and for sales made by people
he recruits or sponsors) rather than single-level marketing (salesperson is paid only for the sales he makes himself).

Multilevel marketing is an important component of the direct selling industry. It is also referred to as network marketing,
structure marketing or multilevel direct selling, and has proven over many years to be a highly successful and effective
method of compensating direct sellers for the marketing and distribution of products and services directly to consumers.

Direct selling can best be described as the marketing of products and services directly to consumers in a face to face manner,
generally in their homes or the homes of others, at their workplace and other places away from permanent retail locations.
Direct sales typically occur through explanation or personal demonstration by an independent direct salesperson. These
salespersons are commonly referred to as direct sellers. Some of the most common examples of direct selling companies are
Avon Products, Inc., Amway, Tupperware Brands Corp., Oriflame Cosmetics.

Direct Selling versus Direct Marketing

Direct selling should not be confused with terms such as direct marketing or distance selling which may be described as
an interactive system of marketing that uses one or more advertising media to affect a measurable response and/or
transaction at any location, with this activity stored on a database. Some commonly known types of direct marketing and
distance selling techniques are telemarketing, direct mail, and direct response.
In contrast to direct marketing, which involves no personal contact with consumers, direct selling entails some type of
personal contact. This contact can be at the consumer’s home or at an out-of-home location such as the consumer’s
office. Although direct selling organisations occasionally use some direct marketing or distance selling techniques and
technology to enhance their businesses, the primary difference between the two methods of marketing is the face to
face, or personal presentation that is always an aspect of the direct selling relationship e.g., direct selling includes
telephone sales.

Direct selling is distinct from direct marketing because it is about individual sales agents reaching and dealing directly with
clients. Direct marketing is about business organisations seeking a relationship with their customers without going through
an agent/consultant or retail outlet.

Reasons for Direct Selling

The reasons/strength of direct selling lies in its tradition of independence, service to consumers, and commitment to
entrepreneurial growth in the free market system:
1) Accessible Business Opportunities: Direct selling provides accessible business opportunities to people looking for
alternative sources of income, and whose entry is generally not restricted by gender, age, education, or previous
experience.
2) Owned and Accessible Business Opportunities: Independent direct sellers are those individuals engaged on their own
behalf, or on behalf of a direct selling company, selling products and services through personal sales contacts, and are
commonly referred to in some jurisdictions as independent contractors.
3) Customised Selling Opportunity: The products sold by direct sellers are as diverse as the people themselves and
include – cosmetics and skin care products; laundry and personal care items; vacuum cleaners and home appliances;
household specialties; household cleaning products; food and nutrition products; toys, books and educational products;
and clothing, jewelry and fashion accessories; just to mention a few.
4) Alternative Employment Opportunity: It offers an alternative to traditional employment for those who desire a
flexible income earning opportunity to supplement their household income, or whose responsibilities or circumstances
do not allow for regular part-time or full-time employment.
5) Low Cost Investment: The cost for an individual to start an independent direct selling business is typically very low.
Usually, a modestly priced sales kit is all that is required for one to get started, and there is little or no required inventory
or other cash commitments to begin.
6) Consumer Convenience and Service: Consumers benefit from direct selling because of the convenience and service it
provides, including personal demonstration and explanation of products, home delivery, and generous satisfaction
guarantees.

EVENTS AND EXPERIENCES

Events
An event can be described as a public assembly for the purpose of celebration, education, marketing, or reunion. An
event in its universal and literal form would be any occasion when sometimes happens or sometimes needs to be done
to organise the same. Events and experiences reach out to the customer and can be used for brand building as well as
for selling products.

Events are occurrences designed to communicate particular messages to target audiences. An event can be considered as a
live multimedia package organised and held with a preconceived concept, customised to achieve the client’s objectives of
reaching and influencing a specific target audience by providing an enjoyable and sensual experience, with provision for live
interaction. Events are marketing offers in the context of experiential marketing.

These are highly targeted brand associate activities. These are planned to engage prospects for the customers. Events are
customer-orientated promotion activities. Most events are sponsored. Sponsorship increases the awareness of the brand.
The events are customised. The idea is to reach out the target audience who has come to witness the event. Brand associated
events, e.g., are concerts, competition, etc. Companies organise events to support or leverage its promotional aspects. For
example, when Maruti sells car, it is not an event, but it is an event, when its millionth unit is sold. For this occasion, people
are brought together to get publicity.

Objectives of Event
Events are organised to attain the following objectives:
1) Identifying the Target Market or Lifestyle: Customers can be targeted geographically, demographically,
psychographically, or behaviourally according to events.
2) Increasing Awareness of Company or Product Name: Sponsorship often offers sustained exposure to a brand, a
necessary condition to build brand recognition, and enhance brand recall.
3) Creating or Reinforcing Perceptions of Key Brand Image Associations: Events themselves have associations that
help to create or reinforce brand associations.
4) Enhancing Corporate Image: Sponsorship can improve perceptions that the company is likable and prestigious.
5) Creating Experiences and Evoking Feelings: The feelings engendered by an exciting or rewarding event may
indirectly link to the brand.
6) Expressing Commitment to the Community on Social Issues: Cause-related marketing sponsors non-profit
organisations and charities.
7) Entertaining Key Clients or Reward Key Employees: Many events include lavish hospitality tents and other special
services or activities only for sponsors and their guests.
8) Permitting Merchandising or Promotional Opportunities: Many marketers tie in contests or sweepstakes, in-store
merchandising, direct response, or other marketing activities with an event. Many of the popular televisions programs
are sponsored by well-known brands.

Types of Events
Depending on their nature the various types of events are:
1) Sporting: Sporting event may be like Olympics, FIFA, DLF-IPL, ICC Cricket Worldcup, etc. These events provide
great opportunity to marketers to showcase their offering through ads and sponsorships.
2) Entertainment, Arts, and Culture: Entertainment events are well known for their ability to attract large audiences. In
some cases, the concerts are extremely viable from a financial point of view; in others, financial problems can quickly
escalate when ticket sales do not reach targets.
3) Commercial Marketing and Promotional Events: Promotional events tend to have high budgets and high profiles.
Most frequently they involve product launches, often for computer hardware or software, perfume, alcohol, or motor
cars.
4) Meetings and Exhibitions: The meetings and conventions industry is highly competitive. Many conventions attract
thousands of people, whereas some meetings include only a handful of high-profile participants.
5) Festivals: Wine and food festivals are increasingly popular, providing a particular region the opportunity to showcase its
products. Religious festivals fall into this category, too. Festivals like New Year Carnival or Goa Carnival are good
examples.
6) Family: Weddings, anniversaries, bar mitzvahs, and nowadays, divorces and funerals all provide opportunities for
families to gather. Funerals are increasingly becoming big events with non-traditional coffins, speeches, and even
entertainment.
7) Fund Raising: Fairs, which are common in most communities, are frequently run by enthusiastic local committees. The
effort in the organisation required for these events are often underestimated. As their general aim is raising funds, it is
important that rides and other such contracted activities contribute to, rather than reduce, revenue.
8) Live Show: Organising live events like Elton John or Ricky Martin shows need meticulous event management at its best.

Event Sponsorship: Using Events as Marketing Tool

Sponsorship promotion is practiced by organisations when an organisation gives money for an event against promotion of its
brand name. It is important that companies must fine-tune their objectives to project a favourable image and survive in a
turbulent environment. To sponsor something is to support an event, activity, person, or organisation financially or through
the provision of products or services. A sponsor is the individual or group that provides the support, similar to a benefactor.

Sponsorship is a cash and/or in-kind fee paid to a property (typically in sports, arts, entertainment or causes) in return for
access to the exploitable commercial potential associated with that property. For example, a corporate entity may provide
equipment for a famous athlete or sports team in exchange for brand recognition. The sponsor earns popularity this way
while the sponsored can earn a lot of money.

According to Meenaghan, “Sponsorship is the provision of assistance either financial or in kind to an activity by a
commercial organisation for the purpose of achieving commercial objectives”.

Sponsorship achieves these goals by creating and maintaining in the consumer’s mind an association between the brand and
an event that the target consumer values highly. Sponsorships represent a rapidly growing aspect of marketing
communications, and are considered by most marketing executives as an important marketing tool.

Strengths of Sponsorship
1) For the Sponsor
i) Enhancing Image/Shaping Consumer Attitudes: Often companies are looking to improve how they are perceived
by their target audience. Sponsoring events that appeal to their market are likely to shape buying attitudes and help
generate a positive reaction.
 ii) Driving Sales: Sponsorship geared to driving sales can be an extremely potent promotional tool. This objective
allows sponsors to showcase their product attributes. Food and beverage companies often use sponsorship to
encourage samplings and sales.
iii) Creating Positive Publicity/Heightening Visibility: Every sponsor is seeking wide exposure in both electronic and
print media. Positive publicity helps create heightened visibility of products/services. Various media covering the
event may include sponsors names and/or photos.
iv) Financial: Companies who put money into sponsorship are able to reduce their tax bill. Sponsors can claim for any
of their sponsoring events against the taxes which they have to pay. This means that it can actually save them
money.

2) For the Sport

i) Extra Income: In professional sport, sponsorship means that big prize money can be paid and events can be
organised on a very large scale without the spectators having to pay huge admission prices.
ii) Raises Standards: If a team is sponsored it may attract more or better players, thus raising the quality of the
team. If an event is sponsored, it will be better organised and may be able to expand to allow more teams/players
to take part.
iii) Status: Being sponsored gives a team status. If a company is prepared to give money to a team, then people will
tend to think that the team must be a very good one. The more well-known the sponsor, the higher the status of the
team.
iv) Career Security: Young and promising sports people are able to concentrate on their sport without many of the
financial worries.

Weaknesses of Sponsorship
1) For the Sponsor
i) Poor Value: If a team or event is a massive success and attracts media attention, then the sponsor has had good
value. If the team or even was a failure with little or no media coverage, then the sponsor will have had poor value
for money.
ii) Bad Image: During the time a sponsor is under contract with a sport, the image of the sport may suffer and thus
damage the image of the sponsor.
iii) Only One Winner: It is important for the sponsor to be associated with a team or individual that is successful.
Sponsors associated with teams who are failures will not get the right kind of publicity.
iv) Expensive: Sponsorship can end up being a lot more expensive than paid for advertising (e.g., Formula 1).
v) Development of Controversies: The presence of competitors is on its own a disadvantage for sponsors. There will
always be a challenger to each company to stay on top.
vi) More Time is Consumed: As sponsorship promotes a more ‘intimate’ business relationship, this also causes more
time to be spent on a sponsor-sponsee plan. The amount of time needed in planning and execution is bigger since
sponsorship should be very detailed.

2) For the Sport

i) Dependence on Sponsor: Many sports become too dependent on sponsorship.
ii) Major-Minor Gap: The difference between the heavily sponsored major sports and the minor sports who attract
little or no sponsorship, has grown enormously in the last two or three decades.
iii) No Consultation: When there is an agreement between a large sporting body and a sponsor, the sports players may
have to wear or use their equipment whether they, as individuals, approve of the sponsor of not. There is often no
consultation of the people who have to wear the sponsor’s name.
iv) Gross Commercialisation: The sport may become over commercialised reducing the fun aspect of taking part.
v) Identity Loss: The sport can lose its own identity and be dictated by the sponsors. This can happen in the following
way:
a) Rules can be changed at the sponsors’ request, i.e., clothes to wear/length of time of event.
b) The time at which the event should take place, i.e., to suit an international audience.
Creating Experiences
A large part of local, grassroots marketing is experiential marketing, which not only communicates features and benefits but
also connects a product or service with unique and interesting experiences. “The idea is not to sell something, but to
demonstrate how a brand can enrich a customer’s life.” “Marketing Insight: Experiential Marketing” describes the concept of
Customer Experience Management (CEM). Customer Experience Management is the process of strategically managing a
customer’s entire experience with a product or company.
One survey showed four of five respondents found participating in a live event was more engaging than all other forms of
communication. The vast majority also felt experiential marketing gave them more information than other forms of
communication and would make them more likely to tell others about participating in the event and be receptive to other
marketing for the brand. Companies can even create a strong image by inviting prospects and customers to visit their
headquarters and factories. Companies such as Hallmark and Kohler have built corporate museums at their headquarters that
display their history and the drama of producing and marketing their products.

Essentials of Customer Experience Management

According to Schmitt, brands can help to create five different types of experiences: sense, feel, think, act, and relate. In
each case, Schmitt distinguishes between hard-wired and acquired experiential response levels. He maintains that marketers
can provide experiences for customers through a set of experience providers:
1) Communications: Advertising, public relations, annual reports, brochures, newsletters, and magalogs (a combination of
a magazine and a catalog).
2) Visual/Verbal Identity: Names, logos, signage, and transportation vehicles.
3) Product Presence: Product design, packaging, and point-of-sale displays.
4) Co-Branding: Event marketing and sponsorships, alliances and partnerships, licensing, and product placement in
movies or TV.
5) Environments: Retail and public spaces, trade booths, corporate buildings, office interiors, and factories.
6) Websites and Electronic Media: Corporate sites, product or service sites, CD-ROMs, automated e-mails, online
advertising, and intranets.
7) People: Salespeople, customer-service representatives, technical support or repair providers, company spokespersons,
and CEOs and other executives.

Steps of Customer Experience Management

CEM framework is made-up of five basic steps:
1) Analysing the Experiential World of the Customer: Gaining insights into the socio-cultural context of consumers or
the business context of consumers or the business context of business customers.
2) Building the Experiential Platform: Developing a strategy that includes the positioning for the kind of experience the
brand stands for (“what”), the value proposition of what relevant experience to deliver (“why”), and the overall
implementation theme that will be communicated (“how”).
3) Designing the Brand Experience: Implementing their experiential platform in the look and feel of logos and signage,
packaging, and retail spaces, in advertising, collaterals, and online.
4) Structuring the Customer Interface: Implementing the experiential platform in the dynamic and interactive interfaces
including face-to-face, in stores, during sales visits, at the check-in desk of a hotel, or the e-commerce engine of a website.
5) Engaging in Continuous Innovation: Implementing the experiential platform in new-product development, creative
marketing events for customers, and fine-tuning the experience at every point of contact.

PUBLICITY
Meaning and Definition of Publicity
Publicity is any unpaid form of non-personal presentations of the ideas, goods or services. Of course, publicity people are
paid. But they try to attract attention to the firm and its offerings without having to pay media costs. For example, movies
studios try to get celebrities on TV talk shows because this generates a lot of interest and sells tickets to new movies without
the studio paying for TV time.
According to the American Marketing Association, “Publicity is, any form of non paid commercially significant news or
editorial comment about ideas, products, or institutions.”
Publicity is defined as the process of drawing attention to a person or thing. However, in the world of publishing, publicity
refers more correctly to the process of drawing attention to a person or thing for free. Publicity is the deliberate attempt to
manage the public’s perception of a subject. The subjects of publicity include people (for example, politicians and
performing artists), goods and services, organisations of all kinds, and works of art or entertainment.

Difference between Publicity and Advertising

Publicity Advertising
1) Publicity may or may not be related with the Advertising is essentially a commercial communication of
communication of commercial information. information to the public.
2) Publicity may or may not be paid for by the sponsor for The media-owners and the advertising agencies bill the
the use of space and time. advertisers for the message passed on by the advertiser to the
audience.
3) The message of the sponsor is controlled by the media- It is the sponsor who decides on these facts as he is paying for
owners in respect of space and timing with other the services of the media-owners and agencies.
dimensions such as the style, the format, couching and the
like.
4) Publicity commands respect, prestige and esteem and is The audience will take the advertising messages at high rate of
able to gain public acceptance as it comes from the desk of discount as they come from the office of the sponsor—a person
an editor a responsible and dependable person. known for blowing his own flute.
5) The idea promotion, the identity and the purposes of the In case of advertising, the promotion, the identity and the
sender of the message are less clear and self-illustrative. purposes of the sponsor are clearly known. That is why; the
That is, the sponsor is not known in the most cases. sponsor is responsible for what he states.
6) In case the message of the person giving publicity is If a given advertising is ignored by the audience, it is the
ignored by the public, it is the public to suffer than the sponsor who suffers most than the media-owners and the
media-owners and the agencies and sponsor. agencies. It is so because, it is the sponsor who foots the bills.
7) Last, but not the least, publicity is a comprehensive word Advertising is only a form of publicity.
and means and includes advertising in its fold.

Objectives of Publicity
Objectives of a publicity strategy can be summarised as:
1) The major goals of publicity are to stimulate business activity, enhance profits, and increase public awareness of a
product, service, individual, organisation, or activity.
2) The purpose of publicity is to draw favourable attention to a company and/or its products without having to pay the
media for it.
3) Another goal of publicity is to reach the target audience in right time with the right capsule of message to create the
desired perceptions.
4) To increase the awareness of the retailer and his strategy mix and thereby maintaining or improving company’s image.
5) To demonstrate innovativeness in front of the target market as a whole and create the magical widespread scene of
promotion.
6) To minimise total promotion costs by utilising the economies of scope i.e. communicating via no-paid and non-personal
medium.

Strengths of Publicity
The major strengths of publicity are:
1) Low Cost: The advantages of publicity are low cost, and credibility (particularly if the publicity is aired in between
news stories like on evening TV news casts). New technologies such as weblogs, web cameras, web affiliates, and
convergence (phone-camera posting of pictures and videos to websites) are changing the cost-structure.
2) Prevent Crisis Situations: A bad day can turn into a media nightmare for otherwise obscure companies. Getting frequent
and positive news coverage for luxury products is the best way to protect the brand from unpredictable crisis situations.
3) Increase Visibility: As business gain media coverage - whether in print, broadcast, or online - the brand integrity grows.
Eventually luxury products will be recognised as an industry leader in public opinion.
4) Get Product Reviews: Whether it’s a product placement in a national magazine, a book review, or a feature article on
service, nothing beats objective reviews by independent third parties for credibility. A review also helps in sales efforts.
5) Increase Perceived Worth: Media placements—interviews on radio and TV and in print—increase perceived worth,
and the worth of company, in the eyes of customers, clients and industry. This is especially important for high-end
luxury products and services.
6) Building Sales: Media exposure helps to build awareness for business, and products and services.

Weaknesses of Publicity
The weaknesses of publicity are:
1) Lack of Control: The lack of control over the specific content, the timing, and the amount of coverage.
2) Community Concerns: Publicity campaign displaces crime to an unprotected area and raising community concerns.
3) Unpredictable: Content of publicity is always unpredictable. Every marketer leaves some type of contingency to
negative publicity.
4) Biased: Publicity always talk about good not about errors and mistakes.
5) Negative: The story can be altered so it’s not positive.
6) Repetition: Stories are not likely to be repeated; advertising can be repeated as often as needed.

PUBLIC RELATIONS
Meaning and Definition of Public Relations
Most firms in today’s environment are not only concerned to customers, suppliers and dealers but also concerned about the
effect of their actions on people outside their target markets. It is a planned effort by an organisation to influence the
attitudes and opinions of a specific group by developing a long term relationship. The target group may include a large
number of interested public (customers, stock holders, government agency, and special interest group).

A public is any group that has an actual or potential interest in or impact on a company’s ability to achieve its objectives.
Public relations (PR) involve a variety of programs/events designed to promote or protect a company’s image or its
individual products. “Public relations are a broad set of communication activities used to create and maintain favourable
relations between the organisation and its publics as customers, employees, stockholders, government are officials and
society”.

According to Indian Institute of Public Relations, “Public relations practice is the planned and sustained effort to establish
and maintain goodwill and mutual understanding between an organisation and its public”.

According to Public Relations Society of America (PRSA), “Public Relations (PR) help an organisation and its publics
relate to each other to the benefit of both”.

Public relations or PR is an activity aimed at increasing communication and understanding between an organisation,
individual and one or more groups are called as publics. The ultimate goal of any public relations effort is for a corporation,
institution, organisation or individual to win favour with the general public.

Difference between Public Relation and Publicity

Basis of Publicity Public Relation
Difference
1) Time It is a short-term strategy. This is a long-term strategy. PR programme extends
period over a long period of time.
2) Type Publicity may be positive or negative. PR is always positive.
3) Control It is not always under the control of the person about It is under the control of the firm or its agent.
whom publicity is made.
 4) Cost It need not be paid by the organisation. It is paid by the organisation for doing PR.
5) Impact Creates impact by deeds. Creates impact by proclaimation.
6) Mode Uses press release to achieve the purpose. Uses sponsored event to achieve the purpose.
7) Nature Controlled by the firm. It can control the amount of The company is under obligation to the press for the
impact that the event makes. release of information.

Objectives of Public Relations

The objectives of public relations are as follows:
1) Building Product Awareness: When introducing a new product or re-launching an existing product, marketers can use
a PR element that generates consumer attention and awareness through media placements and special events.
2) Creating Interest: Whether a PR placement is a short product article or is included with other products in “round-up”
article, stories in the media can help to entice a targeted audience to try the product.
3) Providing Information: PR can be used to provide customers with more in depth information about products and
services. Through articles, collateral materials, newsletters and websites, PR delivers information to customers that can
help them to gain understanding of the product.
4) Stimulating Demand: A positive article in a newspaper, on a T.V. news show or mentioned on the Internet, often
results in a discernable increase in product sales.
5) Reinforcing the Brand: In many companies the pubic relations function is also involved with brand reinforcement by
maintaining positive relationship with key audiences, and thereby aiding in building a strong image. Today it is ever
more important for companies and brands to build a good image.

Strengths of Public Relations

Public relations enjoy several strengths. These include the following:
1) Credibility: Public relations enjoy credibility. Basically, public relations communications tools tend to be believed
primarily because these tools do not necessarily appear as advertisements, especially the tools that appear as stories or
articles in the media. In short, readers, listeners and viewers assume that the media’s journalists have gathered the
information and written the stories or articles, not a public relations practitioner.
2) Low Cost: Public relations communications tools typically enjoy low cost. These tools do not cost as much as
advertisements or commercials to produce. Nor do these tools cost a lot when they appear in the media, especially the
tools that sent to media personnel for consideration. In fact, only a few forms of public relations tools appear in media as
a result of the client paying a fee.
3) Not Compete in Other PR Tools: Pubic relations tools do not necessarily compete with other public relations tools,
primarily because these communications usually appear as stories or articles. Unfortunately, advertisements and
commercials have to compete with other advertisements and commercials in the media.
4) Effective: Pubic relations communications tools can be effective in developing a positive image in the minds of various
publics for a product, service or whatever else a client wishes to address.

Weaknesses of Public Relations

Pubic relations have a few weaknesses too. These include the following:
1) May Not Appear in Media: Pubic relations communications tools may not appear in media, especially the tools that are
merely sent to media personnel for consideration.
2) Incapable to Link Message: Public relations communications tools may be read, seen or heard, but members of the
intended public may not link the messages to the client.
3) Fail to Achieve the Objectives: Public relations communications tools may fail to achieve the objective for which they
were created. If this is the case, the client may never know it, primarily because the effectiveness of public relations is
difficult to measure.
4) Brief Life: Public relations communications tools usually have a brief life. In fact, in order for a public relations tool to
have any impact, it must be changed frequently with new information.
5) Incapable of Changing Perception: Public relations may have difficulty changing an intended public’s perception of a
product, service or whatever else a client addresses.