Introduction of Promotion
Introduction of Promotion
MEANING OF PROMOTION
generating sales, and creating brand loyalty. It is one of the four basic elements
of the market mix, which includes the four P's: price, product, promotion, and
place.
promotional mix specifies how much attention to pay to each of the five factors,
PURPOSE OF PROMOTION
through it. The fact that companies spend millions of dollars on it through TV,
radio, the internet, and newspapers indicate its benefits in sales promotion.
durable, cheap and costly need extensive advertising for sales promotion and
customer support. Latest communication techniques now are used for making
Behaviour of Consumers
displays
Linking
TECH
Advertising, public relations and personal selling are three staple methods
of promotion
ADVERTISING
to social, cultural and political aspects of our lives. The American Marketing
It needs the sponsor of the message known of mass communication for large scale selling
It is a medium
(iii) The content of the advertisement is within the control of the advertiser,
of money.
identical with those of another; he cannot predict with accuracy what results
FEATURES OF ADVERTISING
and brand name are also there. The information supplied educates and guide
service.
The company also decides the size, slogan, etc. given in the advertisement.
the message is given to all and not to one specific individual. This rule is
applicable to all media including the press. However, even in it, target
appeal.
features and benefits of goods and services of different types. It offers new
ideas to customers as its contents are meaningful. The aim is to make the
to have it, and finally induces consumers to visit the market and purchase the
decisions.
6. Target oriented: Advertising becomes effective and result-oriented when it
market.
a profession as it has a code of conduct for its members and operates within
standards set by its organized bodies. In its field, Advertising Agencies and
ADVANTAGES OF ADVERTSING
from them, and soon new customers also respond. Thus, advertisement creates
brand.
appropriate advertisements.
welfare programs and community service activities can get wide publicity
through advertisements. The public can notice even the progress of the
advertising. They can study the advertisements of competitors and select the
appropriate products that are best suited and profitable to them. It helps to
manufacturers have to bring down the price in order to attract customers. They
have to supply quality goods in order to attract them more. All this is beneficial
people by supplying information about goods and services, which can offer
suitable products for their daily life. Thus, it provides a higher standard of
regards the right manner of using the product and help to avoid any possible
channels
Non- Broadcast Video, cable/closed circuit TV and cinema
Outdoor Posters, Hoardings, Neon signs, sky advertising etc.
Transit/Vehicula trains, Buses, Taxis and Auto rickshaws, Private vehicles
r
Point of Purchase Banners, Hangings, Packaging, Stickers, Painted signs,
Window display
Specialty media T-shirts, caps, stickers, badges, diaries, key-chains,
calendars
Miscellaneous Direct mail advertising, trolleys at airports
Importance of Advertising
keep following, buying and using your brand. And this is where
the sales.
stay in the market. This goal is achieved with the help of advertising which
customers start expecting from a brand. Thereafter, the stage arises where
educates people and makes the society aware about various issues. Many
social issues like female foeticide, child labor, child abuse, etc., are also
FIVE Ms OF ADVERTISING
Evaluation and broad decisions need to be taken in regard to these five areas
MISSION
MONEY
MEASUR-EMENT
5 Ms of Advertising
MONEY
MEDIA
the purpose should only be to inform people about the product Persuasion-
Persuading people to actually go out and buy the product. This objective is of
paramount importance because of cutthroat competition. Any advertisement
existence. For instance whenever we hear or read yeh dil maange more, we
tend to think about Pepsi. Same way we tend to associate two minutes with
2. MONEY: After the objective has been decided upon, the next step is to
decide upon the budget. There are several methods for deciding on the
sales method. Under this method, a certain percentage of sales are allotted for
advertising expenditure. Though this method is used widely, there are some
problems with this method. The first issue is what percentage the company
would mean increase in advertising expenditure when sales are up and less
spending when sales are down. This in some ways is quite paradoxical,
because logically the reverse should happen. The company needs to spend
more on advertising when sales are down. But this method uses circular
reasoning and views sales as cause for promotion. In fact sales are a result of
as its competitors are spending. This method claims that it would prevent
promotional wars. But then like each individual each company is also
different. It may not make any sense in spending like your competitor because
the others just irritate us. An appealing advertising will win consumers and
will consequently induce them to purchase the product. On the other hand,
professionals to make impact -making ads. The message that company wants
definitely important but what is more important is how it is said. The tone
should be appealing. Words used should be catchy and retentive. These days
both electronic as well as print media are overflowing with ads. People have
no time to read or see them, and therefore they have to be attractive enough
4. MEDIA: Selecting the proper media vehicle for communicating the message
goes a long way in the success of any kind of advertising3. Each media
vehicle has its positive and negative points with a different reach and impact.
Therefore a company has to be very clear about its target audience. Choices
available are Internet, TV, newspapers, magazines, direct mails, radio and
Companies often go in for a media mix, i.e. they select more than one of the
be timed that way to take care of these fluctuations. A limited budget should
be taken. An ad can be judged on the basis of its reach and impact on sales.
Nonetheless there are some advanced statistical techniques available that can
be used with the help of computer softwares like SPSS. Thus a systematic
target audience.
various services and performs many functions for its clients, who are
1. Attracting clients
2. Research function
3. Advertising planning
4. Creative function
5. Media selection
6. Advertising budget
7. Coordination
8. Sales promotion,
9. Marketing research
10. Non-advertising functions, and
11. Public relations
1. Attracting clients
Ad agency always tries to attract clients usually by giving ads in trade journals.
It also seeks their attention by offering them various services. It offers expert,
cheap and quick services. It maintains good relations with them. It tries to give
them full satisfaction. It strives harder to attain their goodwill and customer-
loyalty.
2. Research function
3. Advertising planning
research function is completed. That is, after analyzing the client's product, its
After making the advertising plan, it is shown to the client. If the client likes
and approves it, then the plan is executed (put into action).
4. Creative function
Advertising agency put the advertising-plan into action under its creative
function.
These jobs are done by experts like copy writers, artists, designers, etc. These
people are highly skilled and creative. They make an advertisement more
The ad agency must always use fresh ideas for creating ads. It must neither use
5. Media selection
the most suitable media for its client's ad. It must choose media, which has a
potential to give best results for the lowest cost. It must select more than one
media for the ad. For example, an advertisement can be put on television, the
After selecting the media, the ad agency must maintain goods contacts with the
media.
6. Advertising budget
use his budget economically and make the best use of it.
Without a proper advertising budget, there is a risk of client's funds getting
wasted or lost. If an advertiser suffers a loss, he may not bring new projects. As
a result, there is a possibility of losing a potential client that can bring more
business to an ad agency.
7. Coordination
8. Sales promotion
introduce sales promotion measures for the dealers and consumers. This helps
9. Marketing research
Advertising agency helps its clients to solve their marketing problems. It does
Advertising agency does the public relations (PR) work for its clients. It
increases the goodwill between its clients and other parties like consumers,
LIMITATIONS OF ADVERTISING
business; on the other hand, some scholars are of the view that money spent
on advertising is a waste. Those who hold this opinion are, as a matter of fact,
of the services provided. To meet this expenditure, price of the services are
raised. No company pays for the advertising expenses out of his pocket.
said that advertising costs are passed on to the customer in the form of high
fees.
the people away from reality and into the realm of artificiality. Through its
advertising, customers get attracted to the services. On its use, they feel
cheated.
Many times, foul language and objectionable pictures are used in advertising in
Such kinds of advertising are generally opposed by the people as it hurts their
feelings. In this reference it is said that some advertisements are in bad tastes.
advertisements inform people about more and more products, the use of
existing products and the new products are shown dramatically to attract the
customers.
Products:
The advertisements show all types of products irrespective of their quality. With
The objection to sale of inferior goods is not correct because what is inferior
and what is superior depends upon the economic status and preference. Every
one cannot afford to buy superior quality expensive products but it does not
day for example, if we take TV, there are so many advertisements of different
companies shown such as LG, Onida, Sony, BPL, Samsung, Videocon etc. each
brand claiming they are the best. These claims by different companies confuse
the customer and it becomes very difficult for him to make choice.
We do not agree with this objection because advertisements give wide choice to
customers and todays customer is smart enough to know and select the most
the way they are speaking may not appeal everyone, sometimes women are
shown in the advertisements where they are not required for example, a woman
in after shave lotion and in advertisements of suiting etc. Some advertisements
in-law etc. for example, in advertisement of Band Aid, Detergent Bar, Fevistick,
etc.
product because the firms spend a huge amount on advertisement and these
expenses are added to cost and consumer has to pay a higher price for the
product or service.
PUBLIC RELATIONS
and services with its key publics through the use of a variety of
professionals would work with members of the media to build a favorable image
broadcast media. But today the role of public relations is much broader and
includes:
Within the overall objective of understanding the public and making itself
1. Creating awareness about the company, its goals, products and services
be accepted by employees.
company has to establish the truth. In normal times, too, a company has to
promote its reliability. Just consider the frequent use of words like believe,
services etc. have to be wooed in such a way that they willingly help the
company.
6. Earning recognition. It is not enough to perform feats but it is necessary to
get these noticed and talked about. Through winning awards, certifications etc.
and getting these read and seen, a company gets recognition. Having so-and-so
1. Human Relations:
PR is getting along with the people or publics both internal and external. No
2. Empathy:
sorry for others is sympathy. Empathy is the primary pre requisite for-a-
understanding is expected. That is to feel ones feeling stepping into the boots
3. Persuasion:
There are two ways of changing the mind of another or others namely by
win his heart and head it is highly appreciated, accepted and acted up without
opposition.
4. Dialogue:
exchange of ideas bringing into being a new form of knowledge; the use of
a bridge of meaning.
The Need for Public Relations:
and every individual need latest information to live on this digital age. He
certainly would not be able to live will without using the numerous possibilities
that in this fast moving increasingly automated world men and women can no
other. Thus, information is the breath of this digital age where outsourcing is
the maximum. There are four factors that speak very high of the real need for
public relations.
1. Communication:
and sophistication and there is no end for this. Finance, the force behind all
different thing that all 1 billion and odd persons are highly qualified. What is
important is that rate of literacy and level of literacy both are increasing
If one thins, whether we are all correctly informed is really very difficult to say.
India and all over the world, and countless lectures excluding those in
3. Information Load:
Information load is also called message load or quantity. Those people who do
not believe in others will attract our attention to the flood of information to
The correct answer to this is that this flood is largely without direction and
likely to result in dislikes, dissatisfaction and outright rejection with all their
organisation into harmony with public interest that wins and maintains
From these points one thing is clear that the purpose of this activity for and
with the public is to act and not to react; to create an atmosphere of mutual
confidence through and active information policy the passive part of which
consists in answering all types of queries; to inform the public and exert
reaction.
MEANING
seller that is designed to influence the buyers decision. Personal selling can
take place in various situations for example; Face-to-Face, on the telephone, via
companies, for promotion of the sales of their products/ services. Prior to the
method used by companies for promotion of sales. It is, in fact, the forerunner
DEFINITION
the purpose of making sales; it is the ability to persuade the people to buy
goods and services at a profit to the seller and benefit to the buyer.
(i) Personal selling involves a face-to-face contact between the salesman and the
prospect.
(ii) It is an art of persuading the prospect, to appreciate the need for the service
prospect. Personal selling, therefore, is the art of convincing the prospect and
(v) Personal selling requires a flexible approach; on the part of the salesman i.e.
the salesman should modify his approach in persuading the prospect, in view
promotional tools. It can be more flexible than these other tools. Sales people
can tailor their presentations to fit in with the needs and behavior of the
students undergoing training. They can see their customers reaction and
3. Sale making goal: the main motive of the company here is to makes sales,
that is get the actual customers who require the services of the company by
giving the company the required consideration for the services rendered.
prospects for the product. The salesperson can use the communication efforts
salesperson is able to meet buyer's objection and answer all questions raised
by the buyer on the product or service its attributes and terms and condition
of the sale.
Flexibility of message
Personal selling allows the communicator to adapt the message according to
the situations.
Persuasion
Personal selling can achieve the highest degree of persuasion. The salesperson
may be able to visit the prospect several times in order to peruse sales.
stimulate one off their social drives - ego, fear, love, hate, status and prestige -
DIRECT MARKETING
Meaning
marketer reaches out to his target customers at any location. It is the fastest
websites and mobile devices to reach and deliver goods and services to
response.
1. Post Cards It is the most widely form of direct mail advertising due to
its high attention value and economy. It gets immediate attention. Post cards
2. Sales Letters It is also most widely used form. Sales letters are sent to
induce the potential customers to buy a particular product.
specific markets can be pinpointed with precise selectivity, and results can
such as:
1. Quick to produce: One can prepare and mail a small promotion within
days or weeks. Direct mail is perfect for quickly testing prices, offers, and
potential audiences. We have complete control over the media, the audience, and
our offer.
2. Quicker response: Not only is direct mail quicker to prepare, but response
time to direct mail is usually quicker as well. We can project the final results of a
mailing quickly and accurately. We can build an advertising campaign with more
Association or Dun and Bradstreet. For example, a small vitamin storeowner can
order lists of people who buy vitamins or health products in her market. She can
then prepare a direct mailing in hopes of getting these customers to shop at her
store.
4. Less competition: Our advertising message does not have to compete
with other advertising messages. And, our competitors are less apt to know our
current strategy.
7. Easy to respond to: The inclusion of an order card and return envelope
makes it convenient for the consumer to respond to direct mail.
advertisement as a test. Once the company determines that the first mailing is