Promotions in Marketing

PROMOTION IN MARKETING
At the end of this module the learning outcomes

are
• What is the relevance of marketing
communication?
• What are the elements of marketing
communication mix?
• What is the purpose and relevance of each
element of marketing communication mix?
1
Suggested readings
1. Marketing management by Kotler, chapter 17,
18 & 19, 13th edition
2
Dove’s Campaign for Real
Beauty
17-3
AIDS prevention campaign in
West Bengal was a unique
integrated mass media campaign
18-4
What are
Marketing Communications?
Marketing communications are the means
by which firms attempt to inform, persuade,
and remind consumers, directly or
indirectly, about the products and brands
they sell.
Role of Marketing
Communication
For consumers
• Tell or show consumers how and why a product is
used, by what kind of person, and where and when
• Consumers can learn about who makes the stand
for product and what the company and brands
stand for
• Get an incentive or reward for trial or usage
• Allows companies to link their brands to other
people, places, events, brand, experiences, feelings
6
and things.
Modes of Marketing Communications
• Advertising • Direct marketing

• Sales promotion • Interactive marketing
• Events and • Word-of-mouth
experiences marketing
• Public relations and • Personal selling
publicity
Word-of-Mouth Marketing
• Person-to-person
• Chat rooms
• Blogs
17-8
Promotion
- How do we make customers aware about the
product
- How do we communicate?
- Problem of integrated marketing
communications
What is the communication process
9
Elements in the Communications Process
Communication process
- Interactive process
- Between company and its customers
Every aspect communicates
- Product styling
- Price
- Packaging
- Sales personnel dress and manners
- Channel partners behavior
- Office décor
- Sales personnel business card
- Stationery 11
Customer wants to buy computers. What will he
do?
- Talk to others
- See ads on television
- Read articles
- Surf internet
- Go to computer shop
- See a live demonstration
Marketers need to understand which experiences and
impressions will have the most influence at each
stage of the buying process.
12
Communication issues
• Role of the marketer is to send his/her message
through to the receiver (customer)
• Customer may not receive the message for three
reasons
– Selective attention
– Selective distortion
– Selective retention
13
The Communications Process
Selective attention
Selective distortion
Selective retention
Selective attention
- How many messages do you get exposed to everyday
- Over 100 (few 100’s)
- How ?
- Newspaper, internet, banners, word of mouth, books
etc.
- Do you remember all?
- No, why?
- Not possible to recall so many messages
- Which one will you recall
- An ad with bold headline ‘Win a Mercedes today’15
- Will grab your attention
Selective distortion
- Consumers will hear what fits into their belief
system
- Consumers often add something that are not
there
- Not notice other things that are there
- Message gets distorted because the consumer
adds or ignores certain things in the message
16
Selective retention
- How many ads you remember seen in last one
year
- Only a fraction
- You recall only those message which you feel
are positive
- Reject the ones which according to you are
negative
17
Steps in Developing Effective
Communications
Identify target audience
Determine objectives
Design communications
Select channels
Establish budget
Decide on media mix
Measure results/ manage IMC
Communications
Identify target audience
Clear target audience
• Influencer
• Decider
• User
19
Communications
Determine the communication objectives
Four types
• Category need
• Brand awareness
• Brand attitude
• Brand purchase intention
20
Communications
Category need
• Remove discrepancy between current
motivational state and a desired emotional
state
• Need of electric car
21
Communications
Brand awareness
• Ability to identify the brand within the category
• Brand recall is important outside the store
• Brand recognition is important inside the store
• Brand awareness provides a foundation for brand
equity
• Red and white packages of Colgate Dental cream
22
Communications
Brand attitude
• Evaluating the brand with respect to its
perceived ability to meet a currently
relevant need
• Kellogg’s experience
23
Communications
Brand purchase intention
• Take purchase related action
• Promotional offers
24
Communications
Designing the Communications
• Message strategy
• Creative strategy
• Message source
• Global adaptation
17-25
Designing the Communications
Message strategy
• What type of appeals
– Positive
– Negative
• LIC communication strategy
• Cadbury strategy
Communications
Creative strategy
• How a message is being expressed
• Content of the message
• Two types of appeals
– Informational appeals
– Transformational appeals
27
Communications
Informational appeals
• Elaborates attributes/benefits
• Surf
• Saridon
28
Communications
Transformational appeals
• Elaborates non-product-related benefit or
image
Raymond
• young successful and elegantly dressed men
Mentos
• Dimaag ki bate jla de
29
Communications
Message source
• Most from the company
• Messages from attractive people attract
attention
• Use of celebrities
• Spokesperson credibility is critical
30
Message Source
Celebrity Characteristics
– Expertise
– Trustworthiness
– Likeability
17-31
Communications
Global adaptations
• Should the offering be standardized or
adapted
• Products
• Market segments
• Style
• Local or Global
Coke experience
Issues Facing Global Adaptations
• Is the product restricted in some countries?
• Are there restrictions on advertising the
product to a specific target market?
• Can comparative ads be used?
• Can the same advertising be used in all
country markets?
Communications
Select Communication Channels
Pfizer
• Deploy sales personnel
• Sales calling expensive
• expand its communication channel
• Ads in medical journals
• Direct mails
• Free samples
• Telemarketing
• Sponsor clinical conferences 34
Communications
• Personal channels
• Nonpersonal channels
• Integration of channels
Personal channels
• Two or more persons communicate face-to-
face, person-to-audience, over the telephone
• Individualized presentations and feedback
36
Personal
Communications Channels
Advocate channels
Expert channels
Social channels
17-37
Communications
Advocate channels
• Consists of salespeople contacting buyers in
the target market
38
Communications
Expert channels
• Independent experts making statements to
target buyers
39
Communications
Social channels
• Consists of friends, family members and
associates talking to target buyers
40
Communications
Nonpersonal Communication channels
• Directed to more than one person
• Include
– Media
– Sales promotion
– Events and experiences
– Public relations
41
Communications
Media
• Consists of
– Print media
– Broadcast media
– Network media
– Electronic media
– Display media
42
Communications
Sales Promotion
• Consists of
– consumer promotions
– Trade promotions
43
Communications
Events and experiences
• Includes
– Sports
– Arts
– Entertainment
44
Communications
Public relations
• Targeting at
– Governments
– Other firms
– media
45
Communications
Integration of communication channels
• Personal and nonpersonal channels need to
coordinate with each other to deliver
effective output.
46
Communications
Establish the total marketing
communications budget
Common methods are
• Affordable method
• Percentage of sales method
• Competitive parity method
• Objective-and-task method
47
Communications
Decide on marketing communication mix
Marketer must allocate resources to these
eight modes of communication
• Public relations
• Advertising
• Sales promotion
48
Communications
• Events and experiences
• Direct marketing
• Interactive marketing
• Word-of-mouth marketing
• Personal selling
49
Communications
• Allocation to these modes depends upon the
nature of the product
50
Communications
Measuring communication results
• planning and controlling always go together
• Measure results
• What objectives were set
51
Characteristics of
The Marketing Communications Mix
Advertising Sales Promotion
• Pervasiveness • Communication
• Amplified • Incentive
expressiveness • Invitation
• Impersonality
Characteristics of
the Marketing Communications Mix
Direct Marketing Personal Selling

• Customized • Personal interaction
• Up-to-date • Cultivation
• Interactive • Response
Word-of-Mouth Marketing
• Credible
• Personal
• Timely
.
Characteristics of
the Marketing Communications Mix
Public Relations and Events and

Publicity Experiences
• High credibility • Relevant
• Ability to catch • Involving
buyers off guard • Implicit
• Dramatization
Factors in Setting
Communications Mix
• Type of product market
• Buyer readiness stage
• Product life cycle stage
17-55
Cost Effectiveness by Buyer Readiness Stage
Advertising
- Any paid form of non personal presentation and
promotion of ideas, goods or services by an
identified sponsor
- Is done by
• Commercial organizations
• Government
• Non-profit organizations
- Direct messages to target public
57
Advertising can be used to
1. Long term image
- Ads of Coke
2. Trigger quick sales
- Buy one, get one free
3. Geographically dispersed buyers
- Lifebuoy customers
o Rural
o Semi-urban
o All over India
4. Brand preference
- Surf comparing ordinary washing powder with surf
58
Advertising can be used to

5. Removing misconceptions
- AIDS
o Causes
o Misconceptions
o Remove
o Present right picture
59
Who carries out advertising?

- Advertising department within the marketing
department
- Most of the work carried out by an outside
advertising agency
60
Developing an advertising program
Five Ms of advertising
1. Mission
What is the purpose of advertising
2. Money
How much can be spent?
3. Message
What message should be sent?
4. Media
What media should be used?
5. Measurement
How should the results be measured? 61
Mission
- Sales goals
- Advertising objectives
Money
Factors to consider:
- Stage in product life cycle
- Market share and consumer base
- Competition and clutter
- Advertising frequency
- Product substitutability
62
PROMOTION IN
MARKETING
Message
- Message generation
- Message evaluation and selection
- Message execution
- Social – responsibility review
63
PROMOTION IN
MARKETING
Media
- Reach, frequency, impact
- Major media types
- Specific media vehicles
- Media timing
- Geographical media allocation
Measurement
- Communication impact
- Sales impact
64
Sales promotion
Consists of a diverse collection of incentive tools,
mostly short term, designed to stimulate quicker or
greater purchase of particular products or services
by consumers or the trade.
65
Sales promotion
Whereas advertising offers a reason to buy, sales
promotion offers an incentive to buy.
Examples
- Samples
- Cash refund
- Prices off
- Prizes
- Free trials
- Cross – promotions 66
Sales promotions – examples
1. Samples
Domino’s provide free pizzas when they start outlets.
2. Cash refund
Surf saying that if you do not like the product, entire
money will be refunded
3. Prices off
Hindustan times – Scratch an HT sticker. You get Rs
90/- off on Domino’s pizza
4. Prizes
Hindustan times – buy HT, win a Santro
67
Sales promotion – who carries out

- Manufacturers
- Distributors
- Retailers
- Non-profit organizations
68
Types of sales promotion

1. Consumer promotion
- Targeted on end consumers
2. Trade promotion
- Targeted on intermediaries and channel
partners
3. Business promotion
- Targeted on business / institutional consumers
69
Purposes of sales promotion
- Introducing new products
- Unloading accumulated inventory
- Overcoming seasonal slumps
- Getting new accounts
- Retrieving lost accounts
- As a support and supplement to the advertising effort
- As a supplement and support to the salesmen’s effort
- Persuading marketing channel to buy more / increase
the size of the orders.
70
PROMOTION IN
MARKETING
Events and experiences
• Sponsoring events
• Provide companies
• Opportunities to obtain wider exposure
• Influence attitudes towards brands
71
PROMOTION IN
MARKETING
BCCI
• Kit sponsorship by Nike
• Team sponsorship by Sahara
• Media rights to telecast matches
• Association with popular sport in India
• Gets visibility amongst youngsters
72
Why Sponsor Events?
• To identify with a particular target market or life
style
• To increase brand awareness
• To create or reinforce consumer perceptions of
key brand image associations
• To enhance corporate image
• To create experiences and evoke feelings
• To express commitment to community
• To entertain key clients or reward employees
• To permit merchandising or promotional
opportunities
Public relations(PR)
Involves a variety of programs designed to
promote or protect a company’s image or its
individual products
74
Functions of public relations

1. Press relations
Presenting news and information about the
organization in most positive light
2. Product publicity
Sponsoring efforts to publicize specific products
3. Corporate communication
Promoting understanding of the organization
through internal and external communications 75
4. Lobbying
Dealing with legislators and government officials
to promote or defeat legislation and regulation
5. Counselling
Advising management about public issues and
company positions and image. This includes in the
event of a product mishap.
76
Tasks Aided by Public Relations
• Launching new products
• Repositioning a mature product
• Building interest in a product category
• Influencing specific target groups
• Defending products that have encountered
public problems
• Building the corporate image in a way that
reflects favorable on products
Major Tools in Marketing PR
• Publications
• Events
• Sponsorships
• News
• Speeches
• Public Service Activities
• Identity Media
18-78
Public relations – examples

1. Dhara educating customers
Mustard oil problem
2. Maruti promoting road safety week
3. McDonald’s denying use of beef in India
4. Ranbaxy promoting green Delhi
79
Personal selling
Face – to –face interaction with one or more
prospective purchasers for the purpose of making
presentations, answering questions and procuring
orders
80
Personal selling
- Is the most effective tool at later stages of the
buying process.
- Particularly in building up
o Buyer preference
o Conviction
o Action
81
Personal selling
Three distinctive qualities
1. Personal confrontation
Immediate and interactive relationship between
two or more persons
2. Cultivation
- Encourages personal relationship
- Informal
3. Response
- Buyer under obligation
- Listen to sales talk 82
Types of Sales Representatives
• Deliverer
• Order taker
• Missionary
• Technician
• Demand creator
• Solution vendor
Deliverer
• Salesperson whose major task is the
delivery of the product
84
Order taker
• Inside order taker
• Standing behind the counter
• Outside order taker
• Calling on customers
85
Missionary
• Does not takes order
• Builds goodwill
• Educate the actual or potential user
86
Technician
• High level of technical knowledge
• Consultant to client companies
87
Demand creator
• Salesperson who relies on creative methods
for selling products
88
Solution vendor
• Salesperson whose expertise is solving a
customer’s problems
89
Figure 19.4 Designing
a Sales Force
Sales force objectives
Sales force strategy
Sales force structure
Sales force size
Compensation
Copyright © 2009
Dorling Kindersley
• Sales-Force Objectives and Strategy
• What is expected from the sales force
• Prospecting
• New customers
• Relationship building
• Existing customers
91
• Direct sales force versus contractual sales
force
• Direct
• High volume handled
• Own sales force
• Contractual
• Hire from outside
• Low volume 92
Sales Tasks
• Prospecting
• Targeting
• Communicating
• Selling
• Servicing
• Information
gathering
• Allocating
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 19-93

• Sales-Force structure
• Customer segments
• Nature of customers
• Buyer behavior
94
• Sales-Force Size
• Example
• 1000 A category customers
• 2000 B category customers
• A category requires 100 calls a year
• B category requires 25 calls a year.
95
• Total calls are 150000
• Average number of calls made by
salesperson are 1000
• Total number of salesperson required are
150
• !50 sales personnel need to be hired on a
full-time basis.
96
• Sales-Force compensation
• Sales personnel
• Regular income
• Extra reward
• Fair payment
• Management
• Control
• Economy 97
Components of Sales Force Compensation
Fixed amount
Variable amount
Expense allowances
Benefits
Copyright © 2009
Dorling Kindersley
• Variable amount
• Linked to strategic objectives
• Profitability
• Customer retention
• Team-based outcomes
99
Figure 19.7 Managing the
Sales Force
Recruiting, selecting
Training
Supervising
Motivating
Evaluating
Copyright © 2009
Dorling Kindersley
• Evaluating Sales representatives
• Sources of information
– Sales reports
– Key indicators
• Formal evaluation
101
• Average no of of sales calls per salespersons per day
• Average sales call time per contact
• Average revenue per sales call
• Average cost per sales call
• Entertainment cost per sales call
• Percentage of orders per hundred sales calls
• Number of new customers per period
• Number of lost customers per period
• Salesforce cost as a percentage of sales
102
Table 19.1 Form for Evaluating Performance
Copyright © 2009
Dorling Kindersley
Figure 19.8 Steps in Effective Selling
Prospecting/Qualifying
Preapproach
Approach
Presentation
Overcoming objections
Closing
Follow-up
Copyright © 2009
Dorling Kindersley
105
PROMOTION IN
MARKETING
Direct marketing
Is the use of consumer-direct channels to
reach and deliver goods and services to
customers without using marketing
middleman
106
PROMOTION IN
MARKETING
Can reach through
• Direct mail
• Catalog marketing
• Telemarketing
• Mobile devices
• Web-sites
107
Direct marketing – characteristics
1. Non public
Message is addressed to a specific person
2. Customized
Message can be prepared to appeal to the addressed
individual
3. Up-to-date
A message can be prepared very quickly
4. Interactive
The message can be changed depending on the
person’s response. 108
Benefits – direct marketing
• Fun of home shopping
– Online marketing
– Convenient
– Hassle free
– Saves time
– Large selection of merchandise
– Compare prices
109
Marketers benefit
– Focus
– Find any types of groups
Diabetic list
Obese list
Gymkhana club members list
Airtel subscribers list
Citibank card members list
One year old babies list
110
- Build a continuous relationship

- Can reach prospects at the right moment
- Can test alternative medias
- Find out which is the most effective media
- Strategy less visible to competitors
111
PROMOTION IN
MARKETING
Interactive Marketing
• Latest channels are electronic
• Internet provides opportunities with greater
• Interaction
• individualization
112
PROMOTION IN
MARKETING
Advantages
• Can send tailored messages
• Reflect their interests
• Effective for reaching during the day
• Young, high-income, high-education customers
total online media consumption exceeds TV
113
PROMOTION IN
MARKETING
Disadvantages
• Can actively screen out most messages
• Bogus clicks generated
• Consumers can misuse
114
PROMOTION IN
MARKETING
Maruti Dil Se program
• Tap nonresident Indian market
• Created marutinri.com
• NRIs can purchase and gift Maruti cars
• Gives multiple payment options
• Testimonial section
• Existing customers sharing their
115
experiences
PROMOTION IN
MARKETING
Word of Mouth
Facebook
• Have become important force in B2B and B2C
marketing
• Social networks
• Key aspect
• Word of mouth
• Consumers talk about brands everyday
116
PROMOTION IN
MARKETING
Word of Mouth
• Organizations increasingly understand the
power of word of mouth
• Can be very effective for smaller businesses
for whom customers may feel a more
personal relationship
117
PROMOTION IN
MARKETING
Buzz and Viral marketing
• Buzz marketing
• Generates excitement
• Creates publicity
• Conveys new relevant brand-related
through unexpected.
118
PROMOTION IN
MARKETING
Viral Marketing
• Encourages consumers to pass along
company-developed products and services
or audio, video, or written information to
others online.
119
PROMOTION IN
MARKETING
Viral Marketing
P&G
• 225000 teens enlisted in Tremor
• 600000 mothers in Vocalpoint
• Certain individuals want to learn about
products, receive samples and coupons
• Share their opinions with companies
• Talk up their experiences with others 120
PROMOTION IN
MARKETING
Viral Marketing
P&G
• Vocalpoint moms
• Big social networks
• Generally speak to 25-30 other women during the
day
• Compare to an average of 5 for other moms
• Messages carry a strong reason to share product
information with a friend. 121

Promotions in Marketing

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PROMOTION IN MARKETING

At the end of this module the learning outcomes

• Advertising • Direct marketing

Direct Marketing Personal Selling

Public Relations and Events and

Advertising can be used to

Who carries out advertising?

Sales promotion – who carries out

Types of sales promotion

Functions of public relations

Public relations – examples

Sales force strategy

Sales force structure

Sales force size

Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 19-93

Benefits – direct marketing

- Build a continuous relationship

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