promotion is the element in the marketing mix that

serves to inform, persuade and reminding the market

of a product and/ or organization selling it, in hopes of
influencing the recipients feelings, beliefs, etc.
Goals of promotion
Information
Demand stimulation
Marketing Communication System
Message Encoding;
Feedback Decoding
Noise
Message
Feedback
Message Decoding;
Feedback Encoding
Interference
Receiver or target audience
Sender or Source
Promotion mix
Personal Selling
Advertising
Sales Promotions
Public relations
Direct marketing
Determination of Promotion Mix
Promotion Objective and buyer readiness stage
Size of promotion budget
Nature of market
Nature of product
Product life cycle stage
Push Vs Pull strategy
Producer
Wholesaler
Retailer Customer
Producer
Wholesaler
Retailer Customer
Push Strategy
Pull Strategy
Advertising
Paid form of non personal presentation of goods,
services or ideas for action, openly paid for by an
identified sponsor

Advertising involves costs
Advertising is impersonal
Advertising can be in various forms
Advertising uses various media
Indoor, outdoor, direct media, display
Advertising objectives
Brand recognition and acceptance
Trial purchase
Influence at sight of buying decision
Value addition
Aid in personal selling and sales promotion
Reminder
Budgeting Methods
1. Objective and task method
- Identify the objective to be achieved
-determine the cost involved
- determine the effort required
Advantages: logical, easy to achieve organizational goal
Disadvantage: difficult to calculate the actual cost, time
consuming
2. percent of sales method
Proportionate to sales (past sales and future sales)
Common method

Advantage: simple to calculate
Disadvantage : dependent on false belief. If sales drop,
promotion should increase

Budgeting Methods
3. Comparative Parity Method
Match costs/ expenses to the competitor

Advantages: remains at par with competiton
Disadvantages: no consideration for other changes in
market, esp. consumers
Budgeting Methods
4. Marginal Approach
Spending only upto a limit, beyond which sales doesnt
justify the cost

Advantage: profits would maximize as cost is limited
Disadvantage: difficult to calculate if market is
changing.


Budgeting Methods
Budgeting method
5. All you can afford method
Sped all the money that can be spared after other
expenses.
Often adopted by small businesses in initial phase

Advantage: no need to rely on sales that will not
materialise later

Disadvantage: can trigger inter-department conflict;
doesnt consider the need of the market
Message selection
Cognitive strategies
Rational, straight, focusing features

Types:
Generic message : making brands synonymous with products
(IME)
Preemptive message : claim on certain features (Bajaj pulsar
indias number one sports bike)
USP : less wastage on dish washing soap
Hyperbole : un attainable claim (saffola being cholesterol
free)
Comparative advertisements : rin vs tide
Conative Strategies : leading to action (purchase)
Action including advertisements (PoP materials)
Promotional support advertisements : support personal
selling and sales promotion efforts ( euro guard home
delivery, harpic home visits)
Message selection
Affective Message Strategies
Resonance advertising: building relation with product
and user (britannia tune, airtel melody,)
Emotional Advertising : building emotion while using
product ( happiness, fear, joy, insecurity)
Brand Strategies
User
Image (brand personality)
Usage
Corporate advertising
Message selection
Media strategy
Press media
newspaper
Magazine
Radio
Television
Cinema/ film
Outdoor
Posters and wall paintings
Hoardings
Electric signs
Skywriting
Sandwich men
Traveling displays
Media strategy
Direct media
Envelop enclosures, post cards
Booklets and catalogues
Gifts
Pamphlets
Display media
Shop/ Window display
Exhibition and trade fair
Media strategy
Personal Selling
Types
Retail selling
Trade selling
Missionary selling (order taking)
Direct selling ( medical reps)
Industrial selling (capital goods)
Relationship Marketing
Relationship building process
Suspect
Prospect
First time user
Repeat customer
Clients
Members
Advocates
Partners
Sales Promotion
Sales promotion consists of diverse collection of
incentive tools, mostly short term, designed to
stimulate quicker and/ or greater purchase of
particular product/ service by consumers or the trade
Sales promotion tools
Demonstrations
Free samples
Coupons or trading stamps
Money refund or rebates
Trade fair and exhibition
Point of purchase displays
Consumer sales promotion tools
Premiums
Price offs
Consumer contests
Consumer sweepstakes (lotteries)
Trade sales promotion tools
Buy back allowances
Free merchandise
Buying allowances
Cooperative advertising
Dealer listing sales contests
Dealer loader (gifts)
Public relations
Media relations
Group relation
Sponsorships