Promotion

By
Akash Saxena

12/25/2009 By Akash Saxena 1

 Contents
• Promotional mix
• Advertising
• Sales promotion
• Personal selling
• Publicity
• Public relations

12/25/2009 By Akash Saxena 2

 Promotion: What is it
• Promotion is forth P of the marketing
mix.
• Promotion means customer
communication
• Under this P we cover all the
elements of marketing
communication

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 Communication
• I believe you all understand what
communication is and what is the
process of Communication

Sender Encoding Channel decoding receiver

Feedback

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 Now let’s understand this in
the perspective of marketing
• Assume Onida wants to tell people that
they have launched New consumer
products to suit the requirements of
young couples
• What should they do?
• Or, what they in fact do? Let’s
Senderunderstand
Encoding Channel decoding receiver

Feedback
12/25/2009 By Akash Saxena 5
 Now in this case,
who is sender – ONIDA
ncoding – Creating an Advertisement copy which can attract the targe
Channel – TV
g – That is on the part of the consumer , as to how they perceive the
Receiver – The consumer (Target consumer )

Sender Encoding Channel decoding receiver

Feedback
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 AIDA
• Marketing communication works on a
simple concept i.e. AIDA
– A – Attention (Advertisers first seek your
A attention, that’s why they encode the
message in a manner which attracts
I your attention)
– I – Interest (Second, after looking at the
D message you develop interest in the
product or brand)

A – D – Desire (third, Your interest leads to

desire to purchase or acquire)
12/25/2009 – A – Action (Fourth, You eventually buy 7
By Akash Saxena
 Now see the Onida LCD
commercial and try to relate it
with the previous slide

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 New Onida Microwave

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 Onida Multimedia Player

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 The story behind these newly
encoded messages

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 Does marketing
communication means
advertising alone
• No…….not at all
• Any business can communicate in
various methods
• These methods of communication
work as tools of communication for
the marketer
• All of them are collectively known as

Communication
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 Communication Mix
• It has got following elements
– Advertising
– Sales Promotion
– PublicityCollectively these elements are known as communication
And
– Public relations
Their collective application to send same message across is
Integrated
– Personal selling Marketing Communication (

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 Integrated Marketing
Communication

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 Example
• When Amul says “Amul – The taste of
India” – the same message through
all channels. It is Integrated
Marketing communication.
• On hoardings, TV, News Paper, Magazine etc
(Advertising)
• On shelves while offering 20% extra (Sales
promotion)
• When we the consumers tell each other
(publicity)
• When the representative of Amul convinces
the consumer (Public relations)
• Or the retailer personally entices the
consumer to buy
12/25/2009 Amul
By Akash Saxena(personal selling)
15
 Advertising
• Advertising is defined as “any paid
form of non personal
communication about a product or
brand by an identified sponsor”


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 Explanation of definition
• It has got following elements
– Paid form (You have to pay to buy
space or create message)
– Non personal communication (It is
often through mass mediums and
directed towards masses – not
individuals)
– About a product or brand (Product (all
marketable entities) and Brands
(individual or gamut of products)
– By an identified sponsor (You have to
12/25/2009 identify yourself)
By Akash Saxena 17
 Types of advertising
• It can be classified on the basis of
– Media used
– Reach & Frequency
– Appeals

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 Media Used
• Advertisement can be forwarded
through various types of channels or
media. Like
– Electronic Media
• TV, Radio, Video, MP3, MP4 etc
– Print media
• News paper, Magazine, posters, brochures
etc.
– Outdoor Media
• Hoardings, Wall paintings, Signets, glow
sign boards
– Transit media (Bus, rail etc – any moving object)
– Interactive media
These media types are collectively known as mail
(Internet, coupons,
12/25/2009 Media
orders, Telephone)
Mix
By Akash Saxena
– Specialty media (all other media – T-shirt, Pen,
19
 Reach & Frequency
• Reach > to how many people one
can address (reach)
• Frequency > how many times in a
time frame advertisement is
transmitted or broadcasted
• On the basis of reach advertisements
can be
– Local (in limited area)
– Regional
12/25/2009 – National etc.By (across
Akash Saxena the country) 20
 Appeals
• The appeals in advertisements can
broadly be divided into two
categories
– Rational appeals
– Emotional appeals

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 Rational appeal

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 A classic rational appeal

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 Emotional appeal

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 Emotional appeal

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 Other factors that affect
advertising decisions
• Stage in PLC (Introduction, Growth,
Maturity and decline stages have
different requirements of
promotion)
• Environment (competition,
technology, culture etc)
• Reach & Frequency (How many
people to reach and how many
times in a time frame)
•
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 DAGMAR
• It is a method of evaluation of
advertising efforts –
– Defining Advertising Goals for
Measured Advertising Results
(DAGMAR)
– It is a technique where an attempt is
made to define the goals of
advertising so as to measure the
advertising results correctly
– As we all know that if we do not have
proper goals we can not control the
12/25/2009
process of Byexecution,
Akash Saxena
monitoring 27
and correction of the
 Sales Promotion
• 20% off on Fair & Lovely
• 2 shirts free with one shirt
• 20% extra with regular pack of Tide.
• Foreign trip on buying a house
• Scholarship for meritorious students

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 Contd..
• Sales promotion can be broken down
in two categories
• Consumer oriented sales
promotion, and
• Trade-oriented sales promotion

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 Consumer Oriented
• Targeted to the ultimate user of the
product
– Couponing
– Sampling
– Premiums
– Rebates
– Contests
– Sweepstakes
– Various Point Of Purchase material
12/25/2009 By Akash Saxena 30
 Trade oriented
• Targeted towards marketing
intermediaries such as –
wholesalers, distributors, retailers
– Promotional and merchandise
allowances
– Price deals
– Sales contests
– Trade shows etc

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 The stunning fact
• Among many consumer packaged
goods companies, sales
promotion is often 60 to 70% of
the promotional budget
• Sales promotional is conclusive
in nature (It can close the deal, as
it is offered at the purchase point) –
you buy similar quality soap with
30% discount as and when you see
it on the store
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 Sales promotion can
• Increase the sales immediately
• Now a days competitors immediately
follow
• Which makes the offer meaning less
• It is about enticing the consumer for
a limited period of time to pump
the sales.

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 Publicity
• Publicity refers to non personal
communications regarding an
organisation, product, service, or idea
not directly paid for or run under
identified sponsorship.
• Publicity is also non personal as
advertising
• But, the point of difference is that –
publicity is not paid for (you need
not pay for publicity, it goes
automatically)
• And, even there is no identified
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 Contd..
• Publicity can be negative as well as
positive as it uses the social
channel and News
• It spreads very fast, and any
negative publicity can kill a product
or brand very fast.
• Consider the case of worms in
Cadbury Chocolates.
• Social channels are hard to control
and so as publicity
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 Public Relations
• The management function which
– evaluates public attitudes,
– identifies the policies and procedures
of an individual or organisation with
the public interest,
– and executes a program of action
to earn public understanding
and acceptance

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 Contd..
• PR uses
• publicity (Cadbury’s Video response
on U Tube) and a variety of other
tools -
– including special publications,
– participation in community
activities,
– fund raising,
– sponsorship of special events,
and
12/25/2009
– various public affair activities –
By Akash Saxena 37

 PR is
• A very important tool in the
communication mix
• It works extremely positively to
enhance the image of an
organisation.
• Intelligent PR can produce great
brands

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 Personal Selling
• A form of
• person to person communication
• in which a seller attempts to
assist and/or persuade
prospective buyers
• to purchase the company’s product
or to act on an idea.

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 Contd..
• Unlike advertising personal selling
involves direct contact between
buyer and seller, either face to face
or telephonically
• This interaction gives the marketer
communication flexibility;
• The seller can see or hear the
potential buyer’s reactions and
modify the message accordingly.
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 Contd..
• The personal, individualized
communication in personal selling
allows the seller to tailor the
message to the customer’s specific
needs or situation.

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 conclusion
• All marketing communication is done
in order to entice the consumer to
adopt the product or the cause
which is being promoted.
• The success or the failure depends
on the effectiveness of the
marketing communication plan.

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