Module 4 – Promotion

Contents
Promotion
• Introduction to promotion
• Definition, meaning and importance
• Advertising:
• Definition Features and Functions
• Advertising Media
• Legal and Ethical Aspects of Advertising
• Personal Selling:
• Meaning, Functions and Steps
• Role of a Salesman in Selling Process
• Characteristics of a Good Salesman
• Publicity and Public Relations
• Sales Promotion
• Meaning, Nature and Functions
• Types of Sales Promotion

Contents
Promotion ............................................................................................................................................... 2
Definition ............................................................................................................................................ 2
Importance / Needs / Objectives of promotion ............................................................................... 2
Factors affecting promotion .............................................................................................................. 2
1. Advertising ......................................................................................................................................... 3
Features of advertising ...................................................................................................................... 3
Functions / Importance of advertising ............................................................................................. 4
Advertising media & classification ................................................................................................... 4
Legal and ethical aspects of advertising .......................................................................................... 6
Legal aspects ................................................................................................................................. 6
Ethical Aspects .............................................................................................................................. 6
2. Personal Selling ................................................................................................................................. 7
Functions / Importance / Needs / Objectives .................................................................................. 7
Steps in personal selling ................................................................................................................... 7
Qualities / Characteristics of a good salesman ............................................................................... 8
3. Publicity & Public relations ............................................................................................................... 9
Importance / Objectives / Needs / Functions of P and PR .............................................................. 9
Tools of Publicity / public relations .................................................................................................. 9
4. Sales Promotion............................................................................................................................... 10
 Nature / Functions / objectives / needs of sales promotion ......................................................... 10
Types of sales promotion & Techniques of sales promotion ......................................................... 11
Consumer oriented sales promotion techniques ...................................................................... 11
Trade / seller-oriented sales promotion techniques ................................................................. 12
5. Direct Marketing............................................................................................................................... 12
Tools of direct marketing ................................................................................................................. 12
Previous year questions ...................................................................................................................... 13

Promotion
Definition
Promotion: Promotion is a marketing tool, used as a strategy to communicate between the
sellers and buyers.
Promotion mix: The promotion mix is a combination of promotional tools marketers use to
communicate with their target audience.

Importance / Needs / Objectives of promotion

• To create awareness: Basically, to make customers understand that there is so and so
product or service and it is ready for sale.
• To persuade customers: Create a sense of urge among customers to build buying motive
to purchase the product or service.
• To stimulate demand: When customers are informed and persuaded, the sales and
demand may increase which leads to profits.
• To promote new product: A new product or service need to be thoroughly advertised and
promoted during its introduction in the market.
• To face competition: If forgotten to promote, the company may loose its customers due to
competitors.
• To create and improve brand image: Recall function made often improves the brand image.
Factors affecting promotion
❑ Promotion objective / strategy:
❑ Information – Advertising
❑ Assurance – Personal selling
 ❑ Increase sale – Sales promotion
❑ Promotion budget:
❑ Low – Digital marketing
❑ High – All other media
❑ Nature of market:
❑ Consumer market – Advertisement & SP
❑ Industry – Personal selling / direct marketing
❑ Nature of product:
❑ Low price / low complex – Advertisement & SP
❑ High price / high complex – Personal selling / direct marketing
❑ Product life cycle:
❑ Introduction – Advertisement
❑ Maturity – Sales promotion

1. Advertising
Advertisement: An advertisement, otherwise known as an advert or ad, is generally considered
a public communication that promotes a product, service, brand or event.

Features of advertising
❑ Element of promotion mix: The important element in the promotion mix which informs
customers about the product / service.
❑ Art, Science and profession: It is an art form as it requires creative involvement. It is a
science form because it has a body of organized knowledge. Advertising is a
profession as it has a formation, purpose and a code of conduct.
❑ Communication: When a company advertises, it is addressing the masses. Through
advertisement, businesses communicate their product, service or cause to their target
audience.
❑ Paid form: The advertiser, must pay to develop an ad message, purchase a media slot,
and track advertising activities. The advertiser pays for the advertising and all the costs
incurred.
❑ Elements of Creativity: From imagination to execution, advertising involves a lot of
creativity. The correct execution of all the due process in advertising leads to successful
advertising campaigns.
❑ Persuasive: Advertising’s main goal is to persuade consumers to carry out a specific
task. The tasks could include purchasing or using the given goods and services.
Functions / Importance of advertising
❑ Identifying Brand: Advertising provides information about brands and it sometimes
acts as a reminding tool for particular brand which helps in its identification.
❑ Information: Providing information about a new product or features of a product which
might be useful to consumers.
❑ Persuasion: Motivating the customers to purchase the product or service. It is the
process of creating urge or buying motive among customers.
❑ Previewing new trends: Understanding the new trends in the market which enables the
customers to be informed.
❑ Demand: Advertising may increase the demand for a product or service which in turn
improves the revenue / sales.
❑ Customer base: Generation and maintenance of customer base is achieved if
advertising is properly planned and executed.
❑ Pricing: Advertising displays consumer goods with competitive prices relative to the
current market, thus educating consumers about what things should cost
Advertising media & classification
Definition: The medium through which an advertisement is delivered to a target audience for
the purpose of marketing, promotion, and selling goods and services
Legal and ethical aspects of advertising
Legal aspects
• Advertisements should not show anti-national feelings
• Shall not contain misinformation about the products
• Shall not violate government rules and regulations:
• Should not advertise banned products
• Should not advertise cigarettes, alcohol, tobacco etc.
• Clinics and hospitals should not resort to advertising etc.
Advertising is regulated or monitored by several govt bodies such as the Advertising Standards
Council of India (ASCI) and the Advertising Agencies Association of India (AAAI). In 1914, the
Federal Trade Commission Act (FTC) come into existence to control deceptive advertising. FTC
Act provides guidelines for ethical and unlawful advertising.
Acts in India
❑ Indian Penal Code (IPC)
❑ Drugs and Cosmetics Act
❑ Prize Competition Act
❑ Indian Copyright Act
❑ Trademarks Act
❑ Consumer Protection Act
Ethical Aspects
Ethical / legal issues
1. False advertising: Making deceptive claims or representations about a product or
service that are not true.
2. Portraying hurtful stereotypes: Using stereotypes that can perpetuate harm or
discrimination against certain groups of people in advertising.
3. Misusing customer data: Improperly handling or exploiting personal information
collected from customers without their consent or for purposes other than what was
agreed upon.
4. Negative advertising: Promoting a product or service by highlighting the flaws or
shortcomings of competitors rather than focusing on its own merits.
5. Advertising misleading prices: Displaying prices or promotional offers that do not
accurately reflect the actual cost or conditions associated with purchasing a product or
service.
Ethical principles
1. Empathy: Advertising should consider and understand the emotions, perspectives, and
needs of its audience, aiming to create messages that resonate positively with them.
 2. Honesty: Advertising should convey truthful and accurate information about products
or services, avoiding deceptive or misleading claims.
3. Sustainability: Advertising should promote products or services in a way that
minimizes negative impacts on the environment and society, supporting practices that
contribute to long-term ecological and social well-being.
4. Transparency: Advertising should be open and clear about its intentions, sources of
information, and any potential biases, fostering trust and accountability with
consumers.
5. Promise-keeping: Advertising should uphold any promises or commitments made to
consumers, ensuring that the actual experience aligns with the expectations set by the
advertisements.

2. Personal Selling
Personal Selling: Personal selling is a technique that involves face-to-face selling between a
sales rep and a prospective customer.
Functions / Importance / Needs / Objectives
❑ Part of promotion mix: Personal selling is part of promotion mix, or the communication
mix in the company’s marketing program.
❑ Two-way communication: Salesman can provide necessary information to customer
about company’s offer, and also can collect information from customer.
❑ Presentation and persuasion: Salesman through his knowledge tries to present his
product to the prospective buyer and tries to persuade the prospective buyer with the
help of various skills
❑ Creativity: The salesperson tries to create needs. Make the customer aware of hose
needs and try to persuade him to buy the product.
❑ Long term relationship: Personal selling results in the development of personal
relationship between the sales person and the possible buyer.
❑ Quick solution of queries: The prospective buyer can make inquiries regarding the
product. Salesman answers these queries quickly and removes any doubts in the mind
of the buyer.
Steps in personal selling
1. Prospecting: Prospecting refers to the process of identifying qualified potential customers.
Developing a list of potential customers from sources
2. Pre-Approach: Pre-approach is the process where a salesperson learns and gathers
information about the prospective customer.
3. Approach: The approach is all about the manner in which how the salesperson contacts a
potential customer and makes the relationship.
4. Presentation & Demonstration: In this step, the salesperson prepares a presentation so he
can discuss the product and its benefits with the potential customer.
5. Meeting / handling objections: In this step, the Salesperson’s responsibility is to overcome
objections and clear doubts and answer the queries from customers.
6. Closing the sales: Now Salesperson tries to convince a prospect to make an
order/purchase. And when the order is created it is known as the salesman closes the sale.
7. Follow-up: Following up is used to encourage the customer to take action. Follow-up can
increase customer satisfaction and repeat orders.
Role of salesman in personal selling
• Generating leads: Through cold calling, prospective customer leads are generated for
further stages. The marketing skills is appropriate here.
• Customer acquisition: After getting leads, prospective customers are invited to the office
or met by the sales man.
• Sales presentations: Conducting and convincing customers through PPT based or
demonstration-based presentations.
• Negotiation: The product and price negotiation will be made by reps and customer.
• Generate sales: Increase sales and revenue is yet another role.
• Coordination with marketing team: Daily reporting and monthly sales report are to be
prepared by coordinating with the sales team.
• Client relationship: Maintaining positive relationship with client by resolving issues at the
earliest.
Qualities / Characteristics of a good salesman
❑ Physical attributes – The salesman should be professional enough in terms of body
shape and size.
❑ Knowledge – Marketing knowledge and the theories of consumer behaviour shall be
understood.
❑ Mental attributes – It includes self-confidence, empathy and emotional quotient to
handle customers.
❑ Good communication – Crystal clear vocabulary and communication skills are
essential to persuade customers.
❑ Courtesy – It talks about down-to-earth personality without arrogance.
❑ Tactfulness – Tactical skills to catch and make the customers buy the product.
❑ Self-confidence – It is much required and they shall be outgoing personality.
❑ Enthusiasm – While doing client presentation
❑ Honesty – Should be honest at all time and not faking or telling lies.
❑ Persistency
3. Publicity & Public relations
Publicity: Publicity is the public visibility or awareness for any product, service, person or
organization
Public relations: Public relations (PR) refers to managing how others see and feel about a
person, brand, or company. PR for corporations, notably publicly traded companies, focuses on
maintaining a positive corporate image while handling media requests and shareholder
inquiries.
Importance / Objectives / Needs / Functions of P and PR
❑ Smooth business operations: Public relation term ensures the smooth Functioning of
Business. They maintain the connection between the company and customers.
❑ Building image and brand equity: Public relations covers a wide range of programs to
promote and secure the goodwill of the company. Public relations use its tools to build
corporate goodwill which ultimately affects favorably on its products.
❑ Launching new products: When the company launches new products, it needs Public
relation to promote the new product at the time of launching the product. it may be
launching the product by a celebrity or attach any social factor.
❑ Press and media relation: Public relations handle the news and media for making
goodwill of the organization. Public relations also helps the business to create brand
impacts on society.
❑ Event planning: Public relation department also planning for the event that is going to
happen in the organization for the media and press. Public relation team maintain the
whole event.
❑ CSR: Businesses can benefit society while boosting their own brands. It helps to grow
the brand in the long term and maintain the goodwill of the company.
Tools of Publicity / public relations

a) Press Release: A press release is a piece of news or information that companies send out
to inform the public and the press about something noteworthy or of material significance.
Press releases are usually handled by a company's public relations (PR) department.
b) Video news release: VNR is the video equivalent of a press release. and presents a
client's case in an attractive, informative format using video.
c) Factsheet: A fact sheet is a short, typed document that contains the most relevant
information about a particular subject in the least amount of space. The goal is to provide
facts and key points about a topic in a clear, concise, and easy-to-understand way.
d) Event sponsorship: Event sponsorship is when a company supports an event by providing
funds in exchange for something of value. This value could come in many forms, such as
increased brand exposure, access to attendee data
e) Publications: Companies rely on extensively on published materials to reach and
influence their target markets. These include annual reports, brochures, articles,
magazines etc.
f) Community relations programme: It includes CSR activities and donation made by in the
name of the company. It also includes conducting social based campaigns like “Prize the
hunger”, “Give and take” etc.

4. Sales Promotion
Sales promotion: It is a marketing activity that is designed to increase sales, encourage
customer loyalty, or generate brand awareness.
❑ It usually involves offering:
❑ A discount
❑ Some other type of incentive for customers to buy
Nature / Functions / objectives / needs of sales promotion
❑ Attracts large customers: It demonstrates the brand products at a large scale and tells
people about their benefits. Sales promotion techniques differentiate brand products
over the other competitors available in market.
❑ Promotes new product: It uses distinct schemes such as distributing free samples and
providing free trials to customers in order to create awareness about brand products
among public.
❑ Stimulate repeated purchases: It runs limited time campaigns under which customers
are provided coupons for their next purchases or points accumulations on repetitive
purchases. Customer gets motivated to continue their repetitive purchases.
❑ Counter Market Competition: Sales promotion retain customers with business for a
long term by strengthening relations with them. It is a mechanism that interacts on a
regular basis with people who once make purchases with brand.
❑ Supplies Product Information: Sales promotion team explains full details about goods
offered by brand. They guide customers about how to use product properly taken into
consideration the safety instructions.
❑ Enhances Brand Image: When sales improve, the business becomes industry leader
which improves their brand image and loyalty of customers.
 ❑ Increase the Profitability: It enable business organizations in raising their profit margins
by achieving economies of scale. Techniques of sales promotion raises the sales of
brand by doing a mass-promotion of its products in market
Types of sales promotion & Techniques of sales promotion

Consumer oriented sales promotion techniques

a) Samples: Free products given to consumers to encourage trial or purchase.
b) Coupons: Discounts or offers given to consumers for use on specified products.
c) Premiums: Free or discounted items given as a bonus with purchase to incentivize
buying.
d) Contest/Sweepstakes: Promotional activities where participants compete for prizes
through luck or skill.
e) Buyback allowance: An agreed sum offered by the seller if the buyer returns (resells)
the product to him which helps for repurchase and brand loyalty.
f) Refund / Rebates: Partial or full reimbursement offered to consumers after purchase,
serving as an incentive for buying.
g) Bonus pack: Additional quantity or complementary item included with a purchase to
add value for consumers.
h) Price offs: Discounts or reduced prices provided to consumers to stimulate sales or
encourage purchases.
i) Loyalty program: Rewards system where customers earn points or benefits for repeat
purchases or brand loyalty.
j) Chain discount: A series of discount is provided to the customer. It refers to providing
more than 1 discount.
Trade / seller-oriented sales promotion techniques
a) Contest and dealer incentives: Promotional activities where participants compete for
prizes or rewards, often extended to dealers to boost sales performance.
b) Trade allowance: Discounts or incentives provided to retailers or distributors for
promoting or selling specific products.
c) Point-of-Purchase display: Marketing materials or arrangements placed near the
checkout area to attract customers' attention and encourage impulse purchases.
d) Training programme: Educational initiatives designed to enhance the knowledge and
skills of sales staff or partners to effectively represent and sell products or services.
e) Trade show: Exhibitions or events where companies showcase their products or
services to potential buyers, industry professionals, and the public.
f) Cooperative advertising: Marketing strategy where manufacturers and retailers share
the costs and benefits of advertising campaigns to promote specific products or brands.

5. Direct Marketing
Direct marketing consists of any marketing that relies on direct communication or distribution
to individual consumers, rather than over usage of third party.
❑ Direct sales
❑ Mass media is less used
Tools of direct marketing
❑ Direct mail: Marketing strategy that involves sending promotional materials directly to
individuals via postal mail or email.
❑ Personal sale: Face-to-face interaction between seller and a potential customer to
persuade them to purchase a product or service.
❑ TV marketing: Promotional activities conducted through television advertisements
to reach a wide audience and promote products or services.
❑ Door-to-door sale: Sales technique where products or services are sold directly to
consumers at their homes, often involving personalized pitches and demonstrations.
❑ Multilevel marketing: A marketing strategy where existing customers are incentivized
to recruit new customers or salespeople, forming a chain or network of sales
representatives.
Previous year questions
❑ 2 Marks
❑ Direct mail advertising
❑ What is Public relations?
❑ What is chain discount?
❑ What is promotion mix?
❑ What is personal selling
❑ What is buyback allowance?
❑ 5 Marks
❑ Factors affecting promotion mix
❑ Regulation aspect for advertising
❑ Legal & ethical aspect of ads
❑ Diff. between advert and publicity
❑ 10 Marks
❑ Types of sales promotion
❑ Classification of advertising