PROMOTION & PLACE MIX

UNIT - 5
 Unit – 5 Outline
• Elements of promotion mix,
• Marketing communication process,
• Publicity, Advertising and public relations.
• Personal selling and sales promotion.
• Direct marketing and online marketing.
• Distribution channels and logistics
management,
• Channel design and administration, Public
policy and distribution decisions.
Five Major Components of Promotion
Mix

Marketing
Mix

Product Price Promotion Place

Personal Sales Direct

Advertising Publicity
Selling Promotion Marketing
 Advertising
Introduction:
• Advertising is definitely an unavoidable means
of doing business for all kinds of Industries.
• Advertising itself is a big business which ranks
among the some of the top sectors like
automobile, IT, agriculture etc…
• Nearly everyone in developed and developing
countries like India are influenced by
advertising to a very large extent.
 Brief History of Advertising
• The recorded history of Ad covers a period of
about 5000 years
• Before the invention of printing form, there
were three forms of advertising
1. Trademark (used by craftsmen)
2. Signs (messages were painted on rocks along
roadside)
3. Town criers (announcement made by men)
 Advertising
• Definition:
“Advertising is a paid, mediated form of
communication from an identified source,
designed to persuade the receiver to take some
action , now or in the future”
- Jeff I. Rechards & Catherine M. Curran
 Characteristics of Advertising
1. Paid form
2. Non-personal presentation and promotion
3. Ideas, goods and services
4. An Identified sponsor (Different form
Propaganda)
5. Controlled (time, message etc…)
6. Mediated (print, electronics etc…)
7. Persuasion
Product Life cycle & Advertising
Strategies for the differing stages of the
PLC
• Introduction stage of PLC
– The product is promoted to create awareness.
– Advertising differentiates the product.
• Growth stage of PLC
– Advertising differentiates the product.
• Maturity stage of PLC
– Promotion becomes more widespread and use a greater
variety of media. Advertising puts price ahead of the
competition.
• Decline stage of PLC
– Defensive advertising or for revitalization
 Role of Advertising
• The role of advertising varies in different
industries
• In most advertising situations it is unrealistic
to expect that an Ad would directly produce
sales.
• Advertising is known to facilitate sales rather
than accomplish the complete selling
function.
 Role of Advertising
1. BRANDING ROLE
2. PERSUASION ROLE : HARD SELL VERSUS SOFT
SELL
3. DISARMING ROLE – attractive
4. REASSURANCE ROLE – reduce cognitive
dissonance
5. SOCIAL TARGETING ROLE – Videocon
6. WISH-FULFILMENT ROLE
7. NON-CONDESCENDING ROLE
8. PIONEERING ROLE
 Functions of Advertising

• Make an impact. • Remind consumers.

• Create awareness. • Change perceptions
• Communicate • Stimulate the staff
messages. and the trade.
• Create favourable • Evoke an immediate
impressions. response.
• Fulfill needs. • Encourage trial.
Lavidge & Steiner Hierarchy of effects
model
 Classification of Advertising

Advertising
Types

Advertising to
Consumer Non-Product
Business &
Advertising Advertising
Profession
Classification of Advertising
Classified Advertising

Display Advertising

National Advertising

Advertising to
Local Adv
Consumers

Co-operative Adv

End product Adv

Direct response Adv

Classification of Advertising
Trade Adv

Industrial
Adv to Business Adv
& Profession Professional
Adv

Corporate
Adv
Classification of Advertising
Idea Adv

Service Adv

Political Adv
Non Product Adv
Primary Demand Adv

Selective demand Adv

Surrogate Adv
 Promotion Mix – Personal Selling
• Personal Selling is the face-to-face presentation
of a product, service or an idea to a potential
customer or customers by a representative of the
company or organisation.
• Personal selling is oral communication with
potential buyers of a product with the intention of
making a sale. The personal selling may focus
initially on developing a relationship with the
potential buyer, but will always ultimately end
with an attempt to "close the sale"
 Personal Selling Process.

Closing the sale.

Objection
handling.
The sales call.

Making first
contact.

Prospecting.
 Promotion Mix – Personal Selling
• Features of Personal Selling
– Most Expensive than any other promotional tool
– Impractical to accomplish mass selling
– Employed as a follow up to mass communication
– Establishes long term relationship with customers
– The sales message can be customized to meet the
needs of the customer
– The two-way nature of the sales process allows
the sales team to respond directly and promptly
to customer questions and concerns
Promotion Mix – Sales Promotion

“Sales promotion are short-term incentives to

encourage purchase or sale of a product or
service”
- Roger A.Strang
 Difference between Ad and Sales
Promotion
Advertising Sales Promotion
• Offers reason to buy • Offers reason along with
• The primary appeals of Ad incentives
are emotional • The primary appeals are
• Time frame of an Ad is rational
long-term • Time frame of promotion is
• Primary objective is to short-term
create brand image • The primary objective is to
• Ad is indirect in it’s get quick sale
approach • Sales promotion is direct in
approach
 Types of sales promotion
1. Price deals premium
2. Quantity deals 11.Free-in-mail premium
3. Discounts 12. Sampling
4. Coupons 13.Consumer contests
5. Refund or Rebate 14.Dealer sales contest
6. Premiums (gifts) 15.Merchandise deals
7. Packaged premium 16. Demonstration
8. Banded premium 17.Trade fairs and
9. Container premium Exhibitions
10. Over the counter
 Advantages & Disadvantages of Sales
Promotion
Advantages Disadvantages

• Creates urgency • Increases price sensitivity

• Quality Image may become

• Keep Stock Flowing
tarnished
• Dealers forward buy & divert
• Price discrimination
stocks
• Effects on Consumer
• Short-term Orientation
behaviour
 Sales promotion Push & Pull Strategy

• Pull strategy is appropriate when there is high

demand for the product. It is possible to
differentiate the product on basis of real or
emotional features.
• Push strategy is appropriate for products
where there is low brand loyalty and when
there is high competition.
Publicity & Public
Relations
 Publicity & Public Relations
• Publicity is the media coverage for a business
that is not paid for
• Negative publicity
– Hurts sales
– Example: Defective products, social issues (obesity for
fast food restaurants)
• Positive Publicity
– Will help the image of your business
– Charity work, brining awareness to social issues, etc.
 Publicity & Public Relations
• Firms will often hire public relations
companies or individuals to manage the
publicity surrounding the company
• The public relations company will:
– Coordinate media relations
– Lobbying
– Prepare Brochures and Annual Reports
– Manage Crises
 Publicity & Public Relations
• Media Relations
– Prepare press releases
• Print-ready stories about positive things their clients
are doing
– May have a press conference
• Media representatives are allowed to ask the company
questions
– Often create events that ensure press coverage
 Publicity & Public Relations
• Lobbying
– May try and convince public officials to vote
certain ways
– May try and encourage public support for issues
 Publicity & Public Relations
• Brochures
– Sent to potential customers
• Advertise and emphasize the benefits of the product/service
– Can be very similar to junk mail – but often a much
more concentrated effort to give to specific individuals
• Annual Reports
– Prepared using the financials from accounting
– Attempt to convince investors to give their money
– Give facts and figures of the business
 Publicity & Public Relations
• Crisis Management
– When things go wrong with a business – the PR
representatives will try to control the damage
done to the business and brand name
– we have seen one of the biggest PR disasters with
Coca-Cola
 Strengths of Publicity
• Can announce new products, recognize
employees, report good results, breakthroughs.
• Key Benefits:
– Lower cost than advertising or personal selling.
– Increased readership; advertising ignored
often.
– More information.
– Timeliness.

20 - 33
 Weaknesses of Publicity
• Some loss of control over message.
• Limited exposure; only happens once.
• Not free; preparation costs.

20 - 34
 Determinants of Promotional Mix
• Marketers depend on two or more methods to
accomplish promotion & marketing activities
• Major determinants of Promotional Mix are:
1. Type of product
2. Nature of Market
3. Stage of product in PLC
4. Availability of Budget
5. Company Policy