Mkt Unit 8 Promotion Bbs 2 Akj (1)

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UNIT 8: PROMOTION DECISION Prof. A. K. Jha, PhD.

Curriculum  Concept and objectives of promotion  Promotion mix and its components: advertising, publicity, sales promotion, personal selling, and public relations  Advertising: concept, features, types, and Media  Web advertising in marketing communication  Publicity: concept and forms of publicity  Sales Promotion: concept and types  Personal selling: concept, types and process of personal selling  Public relations: concept and tools  Selection of Promotion mix  Integrated marketing communication: Meaning and significance. Concept of Promotion Marketing promotion includes a variety of communication activities to educate customers, increase awareness, increase demand, build brand value and recognition and provide differentiation. Promotion is the process of marketing communication involving information, persuasion, and influence. Promotional efforts act as powerful tools of competition providing the cutting edge of its entire marketing program. 1. According to Philip Kotler, “Promotion includes all the activities the company undertakes to communicate and promote its products to the target market”. 2 . According to W. J. Stanton, “Promotion is the element in an organization’s marketing mix that serves to inform, persuade and remind the market of the organization or its products”. 3. According to Mc. Carthy, “Promotion is concerned with any method that communicates to the target market about the right product to be sold in the right place at the right price. Promotion encompasses sales promotion ,advertising, and personal selling”. 4. According to Mc Carthy, “promotion refers to any type of marketing communication used to inform or persuade target audiences of the relative merits of a product, service, brand or issue. The aim of promotion is to increase awareness, create interest, generate sales or create brand loyalty. It is one of the basic elements of the market mix, which includes the four P's: price, product, promotion, and place”. Hence, promotion is persuasive communication to inform potential customers about the existence of products, to persuade and convince them that those products have emerged with want satisfying capabilities. It offers the message, the communication of these benefits to consumers. Hence, promotion message has two main purposes; persuasive communication and tool of competition. Importance/ Objectives of Promotion The importance of promotion are as follows: 1. Sales of the goods in imperfect market. Promotion helps in the sales of the goods in imperfect market. In the imperfect market conditions, the product cannot be sold easily only on the basis of price differentiation. It is the promotional activity that provides information about the differences, characteristics and the multi-use of the products of various competition in the market. The customer is attracted to purchase the goods on the basis of such information successfully.

2 2. Filling the gap between producers and consumers. Promotion helps in filling the gap between producers and consumers. Due to the tough market condition, mass selling is quite impossible without promotional activities. The distance between producers and consumers has so widened in present days to get them touched with the product that promotional activities are necessary. 3. Facing intense competition. Promotion helps in facing intense competition in the market. When a manufacturer increases his promotional spending and adopts an aggressive strategy in creating a brand image, others are also forced to follow the suit. This leads to ‘promotional war. So, it is necessary to face the competition in the market with the help of promotional activities. 4. Large scales selling. Promotion helps in the large selling of goods and services. Sales promotion is the result of large-scale production. It can be achieved only by appropriate methods of large scale selling. Large scale selling is possible with the help of promotional activity. Due to the large selling of goods, there will be more chance of promotion of goods. 5. Higher standard of living. Promotion helps in the rising standard of the people. The promotional activities increase the standard of living by providing the better goods at a lower rate due to large scale production and selling. It helps to increase the standard of living in a good way. People can raise their standard of living with the help of promotional activity. As the promotional activities increases, the standard of living of people also increases. So, the promotional activity has a great role in the increment of a standard of people so that they can live a good and happy life. 6. More employment. Promotion helps to create more employment opportunities. People can gain employment opportunity with the help of promotional activities. With the help of promotional activity, many workers get motivated towards the work. Promotional activity helps to increase more employment opportunities to the people who are unemployed, as the promotional activities cannot be performed without the help of an effective sales force and the specialists in various fields. 7. Increased trade pressure. Promotion helps to increase trade pressure in the market. The growth of large scales retailer, such as supermarkets, chain stores, etc. has brought greater pressure on manufacturers for support and allowance. Promotional activities help to decrease the trade pressure. There is need for promotional activities to decrease the trade pressure. 8. Effective sales support. Promotion helps in the sales support of the product. Sales promotion policies are under the supplement to the efforts and impersonal salesmanship. Good sales promotion materials make the salesman’s effort more productive. Promotion helps in the sales of the product. It provides good support in selling the different types of goods. Sales of different types of goods in the market are very necessary to increase the market economy. 9. Increased speed of product acceptance. Promotion helps to increase the speed of the products acceptance. Most of the sales promotion devices such as contests, premium coupons, etc. can be used faster than other promotion methods such as advertising. The increase in rapid speed of product acceptance has occurred with the help of promotional activities. As the promotional activities are done, there will be direct effect in the increment of a speed of the product. Tools or Components of Promotion The promotion mix is the essence of what promoting is and how promoting is done effectively. Advertising, sales promotion, personal selling, public relations, and direct marketing comprise the promotion mix. These tools are used “to communicate customer value and build customer relationships persuasively" (Kotler, 2010). Following are the components or tools of promotion mix:

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1. Advertising Advertising is the major components of promotion of products. It is an impersonal mass communication that the sponsor has paid for and in which the sponsor is clearly identified. The most familiar forms of ads are found in the broadcast (TV and radio) and print (newspapers and magazines) media. However, there are many alternatives, from direct mail to billboards and from the telephone directory to a yellow page. 2. Personal Selling Personal selling is the direct presentation of a product to a potential customer by a representative of the organization for selling it. Personal selling takes place face to face or over the phone, and it may be directed to a middleman or a final consumer. It plays the vital role in the promotion of products. 3. Sales Promotion Sales promotion is demand stimulating activity designed to supplement advertising and facilitate personal selling. It is paid for by the sponsor and frequently involves a temporary incentive to encourage a purchase. Many sales promotions are directed at consumers. They are designed to encourage the company’s sales force or other members of its distribution channel to sell its product more aggressively. Sales promotion include activities such as contests, trade shows, in- store displays, rebates, samples, premiums, discounts, and coupons. 4. Publicity Publicity is a special form of public relations that involves news stories about an organization or its products. It involves personal or impersonal message that reaches mass audiences through the media. But there are several things to distinguish publicity from advertising: It is not paid for, the organization that is the subject of publicity has no control over it, and it appears as news and therefore has greater credibility than advertising. 5. Public relation Public relation encompasses a wide variety of communication effort to contribute to generally favorable attitudes and opinions toward an organization and its products. Unlike most advertising and personal selling, it does not include a specific sales message. The targets of the public relation may be customers, stockholders, a government agency, or a special- interest group. Public relations can take many forms, including newsletters, annual reports, lobbying, and sponsorship of the charitable or civic event.

4 ADVERTISING Concept of Advertising Advertising is one of most important elements of promotion mix. The non-personal communication of information and messages about goods or services made by the producers or sellers paying money to any media is called advertisement. Besides giving information about goods or services to customers, advertisement also educates them. Producers or sellers may use different media such as TV, radio, newspapers, magazines, etc. in order to make customers know about their goods or services and communicate their messages and ideas. They also may use fair, post office, internet and so on to advertise. In fact, advertisement is one of the most effective as well as easy means to increase sales. This is the best means to disseminate information and messages to maximum people about products at lowest cost. In this age, sales of goods or services cannot be imagined without advertisement. 1. According to Philip Kotler, “Advertising is any paid form of the non-personal presentation and promotion of ideas, goods and services by an identified sponsor”. 2 . According to AMA, “Advertising is any paid form of the non-personal presentation of goods, services or ideas for action, openly paid for by an identified sponsor.” Thus, advertising is the communication of any activity through sponsored body. Objectives of Advertising The main objective of advertising is to sell goods or services. In order to achieve these major objective other specific objectives are formulated and applied in personal advertising campaign. Such specific objectives are designed or determined by entire marketing strategy. They are as follows: 1. To assist salespersons. The major objective of advertising is to give information about goods or services to perspective customers. This supports personal selling. In fact, if advertisement already reaches the customers, it becomes easy for sellers to sell the advertised goods or services. Sometimes, advertisement reaches the people inaccessible to the sales-force and informs them about the products. 2. To inform about new product. The other objective of advertisement is to give information to the general public about new products. While making plan for new products, it is aimed to make know the customers or even businessmen about the utility, quality, features, benefits, price etc of the new products. 3. To create new demand. The objective of advertisement is to attract perspective customers and motivate them to buy the products. Through the means of advertisement customers can be motivated to buy even the goods, which are not necessary for them. 4. To create and maintain image and goodwill. Advertisement can disseminate good impression, goodwill and good image of the producer or seller in the general public. Already established goodwill and good image help in bringing new product in market easily. 5. To reduce cost. The other objective of advertisement is to increase demand, sales and reduce production and distribution cost through effective advertising. 6. To remind and reinforce customers. The objective of advertising is to remind customers of the utility, price, benefits etc. of the already established brand of the products and also to encourage customers to buy the products suggesting that their selection is right. Types / Classification of Advertising Media Major advertising medias include press media, direct advertising, outdoor media, audio visual media, advertising specialties, and others.

5 I. Press Media Press media are also called print media. Print media are popular and widely used for commercial advertising. A number of people can be addressed by print media. Attractive slogans, statements, words, figures, pictures, drawings, comparative statements, charts, etc., can be used for advertising the products in colorful and artful manner. Press media mainly involves newspapers, magazines, and other publications: 1. Newspapers. Newspapers are a popular medium to contact or inform a large number of customers. Newspapers may be morning or evening; may be in English, Hindi or in other regional languages; may be daily or weekly; may be local, regional or national; or may be routine or special edition. The company should consider circulation, language, geographical coverage, price, credibility, costs of buying space, and quality of printing while selecting a suitable newspaper. Pictures, slogans, figures, charts, etc., can be used. Company can used multi-colored advertisement, too. 2. Magazines. Magazine is another popular and wisely used advertising medium. It is similar to newspapers with regard to many aspects. To consumers, magazines are treated as source of information and entertainment. A large variety of magazines or periodicals are published weekly, fortnightly, monthly, quarterly, half-yearly or annually. Magazines are also published by religious and social organizations, schools, colleges, university or educational associations, professional and commercial associations, governments, companies, etc. Similarly, magazines are classified in forms of sex, age, profession, industry, entertainment, and so forth. Based on customer characteristics, a proper magazine should be selected for publishing advertising message. 3. Other print media. Print media also include telephone directories, books, notebooks, reports, community and professional directories, bus or railway tickets and timetables, and special publications on the special events by schools, colleges, universities, local bodies, cooperative societies, companies, or governments. Local manufacturers, professionals, dealers, retailers, etc., mostly prefer these media to advertise their products. This set of media is relatively cheaper. Most of these print media are used by many people and have long life compared to magazines and newspapers. II. Direct or Mail Advertising Direct advertising can be defined as “Any form of advertising in which the message is directed to specific individuals directly by the advertiser”. This medium consists of written, printed, or processed message delivered directly to the selected buyers. This set of media is used to appeal the target market directly. In practice, it is not suitable for a large number of customers. This type of advertisement is mostly sent personally, or by post and courier services. In the age of information technology, fax, email, and cell phone SMS are also famous modes to send direct mail in a limited scale. Most commonly used methods for direct advertising are: 1. Sales letters. The firm directly sends a written or printed letter to some or all customers. Such letters contain message, product description, special offers, etc. Sales letters can be sent to customers using different methods like courier services, paid persons, or postal services. 2. Fax. Catalogue, invitation, launching of new product or any message can be sent through fax machine. However, company must know fax number of the receivers. Now, fax is used widely for different purposes. Words, pictures, tables, charts, symbols, etc., can be sent through fax. It can be used for limited customers, and is normally applied for industrial products. 3. E-mail. E-mail is relatively new and popular tool for sending message. It is sent to special customers whose e-mail addresses are available or directly to all the account holders. For example,

6 What-sap, Hotmail or MSN Messenger services, Gmail, Yahoo and many others provide free messenger services. However, advertiser has to pay for advertising his products. 4. Cards. Cards are used to carry brief messages, acknowledge orders, remind customers, answer enquiries, update mailing list or to make special offers. Cards may be plain or coloured; multifold or single fold; or may be in forms of greetings or business letters. 5. Greetings. Very popular means to establish relation with customers. The company maintaining a well-up-to-date customer database can send greeting cards on different events and occasions. Along with greetings, a brief message, picture of product or slogan with commercial value can be sent to customers and dealers. 6. Circulars and leaflets. Mostly, they are typed or printed on one or both sides. They may be in coloured papers. Circulars and leaflets involve description or special features of products. Many companies send circulars or leaflets on regular basis. 7. Catalogues, folders, booklets and brochures. They contain necessary information and are sent or offered to customers. Booklets are widely used by companies selling two- wheelers, refrigerators, television, or other technical products. 8. Calendars and diaries. Companies offer calendars or diaries, specially prepared as per their requirements, free-of-costs to customers and dealers, containing their names, symbols, brand names, slogans or pictures of the products. Diaries are more informative and expensive compared to calendars. 9. Others. Following other means are also used for direct advertisement: i. Data cards, samples, and gifts ii. SMS – Short Mobile Message through cell phone iii. House organs like story books, articles, cartoons, jokes, etc. iv. Pamphlets, etc. III. Outdoor or Mural Media Nowadays, outdoor advertising media are widely used for almost all types of goods and services. Outdoor media are excessively used by manufacturers and dealers, hotels, restaurants, academic institutions, airways, banks, insurance, etc. Cold drinks, cements, cigarettes, petroleum products, and cosmetics products widely use these media for advertisement. They are also known as mural media. Those companies, which are not in position to spend huge amount on television, radio, newspapers or magazines and opt for these media. Most common outdoor advertising media have been briefly discussed below: 1. Banners. They are used at popular places like cricket matches, tournaments, stage shows, fairs, talent shows, and annual functions of school, colleges and universities, seminars and conferences, or public meetings. 2. Special signboards. They are used at bus and railway satiations indicating route or platform number, or indicating name of roads and directions in the city. Most cell phone service providers including Vodafone, Idea Cellular, Airtel, etc., use this medium to popularize their name and brand. 3. Kiosk. Square or triangle shaped boxes with written words or picture on them are hanged on electricity or telephone polls. 4. Billboards. Special boards are prepared to advertise the product. Dealers or retailers put such boards nearby their shops, showrooms, shopping malls or on the upper sides of buildings. 5. Handbills. They are very common and too cheap. Advertisement is printed on a piece of paper of small size. These leaflets are distributed hand to hand by a paid man, along with newspapers, or otherwise.

7 6. Station posters. Multi-colored printed posters with written message and pictures are stuck on walls, benches, insides the canteens, and inside and outsides bus stations, railway stations, and airports. 7. Sky writing. It is a novel and expensive vehicle to advertise the product. It is not very popular in our country. It involves showing words, symbols, or picture through gas during the night using plane, balloon, helicopter, or bursting. 8. Symbol of product. Giant size products, picture of products, or package of products are used for advertising purpose. Cadbury, Balaji Wafers, Coca-Cola, Maruti Car, Hero Honda, Natraj Pencil, etc., use this medium. 9. Neon sign. Neon tube lights are used for advertising. Words are written by neon tubes and are place on boards on buildings. Different coloured are used to make it attractive. This can be used only during the night. Cinema, business firms, banks, tuitions classes, and other professionals use neon signs to publish the advertising message. 10. Other outdoor media. Other common and popular outdoor advertising media include: i. Posters and wall paintings ii. Hoarding on the road iii. Vehicle advertising iv. Sandwich man v. Trade fair vi. Balloons, etc. There may be more outdoor media than listed above. Each of these media has its merits, demerits, and suitability. But, we will discuss merits and demerits jointly for ail the outdoor advertising media. IV. Audio-Visual Media The media that can be seen and/or hear are known as audio-visual advertising media. In contemporary marketing environment, these media are the most popular means to send advertising message. Marketers are using aggressively the audio-visual vehicles to prove superiority of their products over the competitors. These media, though expensive, are considered as the modern and prestigious among all the advertising media. This set of media is excessively used for all types of goods and services. Audiovisual media mainly include television, radio, short films, Internet, moving slides, film slides, etc. 1. Radio. Perhaps it is the cheapest (in terms of per listener cost) and most pervasive among all media used for mass communication. It crosses the literacy barriers. Countrywide or on particular regions, the direct message is conveyed to the (desired group of) listeners. Radio is used not only for advertising national programmes by the Government for Family Planning, vaccination, woman education, ecological conservation, erosion of superstitions, or any other programmes of social and national interest, but is also used by many companies for commercial advertising. Insurance, banks, financial institutions, and manufacturers use radio to advertise their goods/ services. Advertisements are broadcasted before, after, or during specific (regional or national) programmes. Some companies broadcast their own programmes or events of the social interest and get their products or activities advertised directly. Local radio (FM radio) is excessively used by local marketers like tuition classes, private colleges, hotels and restaurants, dealers and distributors of distributors consumer durables, and so forth. 2. Television (TV). It is the newest, fastest growing, and most popular advertising medium. Now, television set is available at affordable price. Most of TV channels and local cable operators carry

8 commercial advertisements. It appeals the people through the eye and the ear, i.e., it creates audiovisual effect. Products can be demonstrated as well as explained. Written words, description, and slogans can also be depicted with pictures, package, and brand names and/or products. Now, film starts, cricketers, artists, and modeling personalities are excessively used to advertise different types of products. Celebrity participates in it for advertising. 3. Internet. Internet is the latest medium to advertise products. Some companies put their advertisements on their websites; some companies buy web page of the popular websites. Even, sometimes, they place their advertising message directly on different websites. Viewers just clicking on the name, address, picture, product, logo, brand, or slogan and can get full detail of a product or a company. To develop their own websites on Internet is also very common due to rapid practice of e-commerce or online transactions. Most of the established companies, banks, insurance, and educational institutes have put their information of Internet. In India, use of Internet for advertising purpose is on increase. More than 100 million Indian access the Internet regularly. 4. Moving slide. This is mostly used in urban areas. Here, moving slides are used to advertise product. They are used for commercial or even for non-commercial purposes. Advertising message, picture of product, or logo of company moves either alternate or in one direction on the screen kept on private or public buildings. Such slides are based on electricity or battery. However, use of electric circuit is very common. Nowadays, computer-based slides are very effective. Normally, it is a visual device. Voice is not associated. These slides are located in densely populated locality, corners, or near public places where a maximum number of people passes through. 5. Film or cinema. Film advertisement mainly involves cinema slides and short films. A large number of people can be exposed through this medium. Advertisements are shown at theatres or at different places by projectors. 6. Short films. They are presented before films or during interval. Many companies use short films to advertise its products through cinema houses. It is a similar to television medium. Main difference between TV and short film is that film can expose only limited audience while TV is capable to contact millions of people at time. For example, popular advertisements are Vico cream, toothpaste and powder, Niramia detergent cake and washing powder etc. Short films are shown along with non-commercial films during various events or functions such as seminars and similar events. 7. Slides. The alternate way to advertise the product in the theatre consists of slides. This medium is also used for both commercial as well non-commercial ads. Alike TV, it is a slide-cum-sound medium. Here, slides consisting name of producers, products, logo, etc., are shown in theatres and at the place of special events. Advertisements are presented in theatre before and after film or during interval. V. Other Media Apart from the media discussed in above part, there are various media frequently use for advertising the products. Most widely used common advertising media are: 1. Window Display 2. Product Package 3. Counter Display 4. Special Display and Shows 5. Showrooms 6. Trade Fair and Exhibition, etc.

9 Web Advertising in Marketing Communication (Online Advertising) Online advertising, also called online marketing or Internet advertising or web advertising is a form of marketing and advertising which uses the Internet to deliver promotional marketing messages to consumers. Consumers view online advertising as an unwanted distraction with few benefits and have increasingly turned to ad blocking for a variety of reasons. It includes email marketing, search engine marketing (SEM), social media marketing, many types of display advertising (including web banner advertising), and mobile advertising. Like other advertising media, online advertising frequently involves both a publisher, who integrates advertisements into its online content, and an advertiser, who provides the advertisements to be displayed on the publisher's content. Other potential participants include advertising agencies who help generate and place the ad copy, an ad server which technologically delivers the ad and tracks statistics, and advertising affiliates who do independent promotional work for the advertiser. It includes the following advertisement: i. Mobile advertising Mobile advertising is ad copy delivered through wireless mobile devices such as smart phones, feature phones, or tablet computers. Mobile advertising may take the form of static or rich media display ads, SMS (Short Message Service) or MMS (Multimedia Messaging Service) ads, mobile search ads, advertising within mobile websites, or ads within mobile applications or games (such as interstitial ads, "advergaming," or application sponsorship). Industry groups such as the Mobile Marketing Association have attempted to standardize mobile ad unit specifications, similar to the IAB's efforts for general online advertising. ii. Email advertising Email advertising is ad copy comprising an entire email or a portion of an email message. Email marketing may be unsolicited, in which case the sender may give the recipient an option to opt out of future emails, or it may be sent with the recipient's prior consent. iii. Online classified advertising Online classified advertising is advertising posted online in a categorical listing of specific products or services. Examples include online job boards, online real estate listings, automotive listings, online yellow pages, and online auction-based listings.

PUBLICITY Concept of Publicity Publicity is also a way of mass communication. It is not a paid form of mass communication that involves getting favorable response of buyers by placing commercially significant news in mass media. Publicity is not paid for by the organization. Publicity comes from reporters, columnists, and journalists. It can be considered as a part of public relations. Business firms hold press conference, photography, news broadcasting, publicity etc. and distribute different advertising materials to pressmen. News presentation may create positive attitude in customers. Publicity involves giving public speeches, giving interviews, conducting seminars, offering charitable donations, inaugurating mega events by film actors, cricketers, politicians, or

10 popular personalities, arranging stage show, etc., that attract mass media to publish the news about them. 1. According to William J. Stanton, “Publicity is any promotional communication regarding an organisation and/or its products where the message is not paid for by the organisation benefiting from it”. 2. According to Philip Kotler, “Non-personal stimulation of demand for the product or service, or business unit by placing commercially significant news about it in public medium or obtaining favourable presentation of it upon radio, television, or stage that is not paid for by the sponsor”. Forms/ Tools/ Types of Publicity The following sections list numerous means by which one can publicize events. One of these ideas will be familiar to you while others will hopefully provide with insight into innovative and more creative ways of effectively publicizing programs: 1. Posters. The essential purpose of a poster is the rapid telling of a single simple message using a limited number of elements. Posters are viewed more rapidly than other methods of advertisement. Their message must be strong, simple, and brief. 2. Table tents. Table tents should be made of thick or heavy grade of paper that will stand firm. Table tents can be placed in visible locations including lounges, lobby, dining hall, and on desk tops. 3. Invitations. A personal touch can be added to your publicity by distributing invitations for your program. These can be placed in mailboxes or handed out or slipped under room doors. 4. Calendar. A large calendar of activities located on your bulletin board or distributed individually is a particularly effective technique. Students will have at least one consistently identifiable source for information and activities. The smaller calendars of activities can be copied and put into mailboxes or slid under doors. 5. Balloons. One can write a message on the balloon or put the message on a piece of paper inside the balloon. Balloons can be tied with string to student’s door knobs, handed out at the entrance of the building or handed out in dining hall lines. 6. Tickets. One can purchase printed tickets or make your own. Free tickets, and invitations, can be placed in mailboxes, handed out, or slipped under doors. A variation of the ticket concept is to distribute coupons. The coupon might entitle the person to a prize or free refreshment item. Coupons can be included on flyers or on printed schedules and this may prevent your advertisement from falling victim to the trash can. 7. Banners. A large extension of the poster, these can be hung outside the hall or in the mailroom or in a lobby. A bed sheet or old shower curtain will make a good size banner. 8. Internet. One can use networking groups or access other groups through their email list, many communities now have Email lists for community events, individuals also have large lists and can use them to do outreach with flyers, letters and other information. 9. Websites. Websites can be effective tools for the exchange of ideas, for marketing, for outreach. They require regular upkeep. Links can be emailed, imbedded in the prose or offered in other website listings. 10. Other publicity techniques: Networking sites, Mass e-mails, Bumper Stickers, Door Hanger, Footprints Logos Painted Windows Stickers T-shirts Balloons Post Cards. Characteristics of Publicity Publicity is not a paid form of mass communication that involves getting favourable response of buyers by placing commercially significant news in mass media. It involves obtaining favourable

11 presentation upon radio, newspapers, television, or stage that is not paid for by the sponsor. Following are the features of it: 2. Non-paid form. Publicity is not a paid form of communication. It is not directly paid by producer. However, it involves various indirect costs. For example, a firm needs some amount for arranging function, calling press conference, inviting outstanding personalities, decorating of stage, other related costs, etc. 3. Various media. Mostly, publicity can be carried via newspapers, magazines, radio, or television. For example, in case a product is launched by popular personality in a grand function, the mass media like newspapers, television, radio, magazines, etc., will definitely publicize the event. 4. Objectives. Sales promotion is undertaken for a wide variety of purposes. They may include promotion of new product, pollution control and special achievements of employees, publicizing new policies, or increase in sales. It is primarily concerns with publishing or highlighting company’s activities and products. It is targeted to build company’s image. In a long run, it can contribute to increase sales. 5. Control of producer. Company has no control over publicity in terms of message, time, frequency, information, and medium. It comes through mass media like radio, newspapers, television, etc. It is given independently by the third party. It is presented as a news rather than propaganda. 6. Credibility/ social significance. Publicity has high degree of credibility or reliability as it comes from mass media independently. It is given as news for social interest. It has more social significance compared to other means of market promotion. 7. Part of public relations. Publicity is a part of broad public relations efforts and activities. Public relations includes improving, establishing, and maintaining direct relations with all publics. Publicity can help improve public relations. 8. Costs. Publicity can be done at much lower cost than advertising. Company needs to spend a little amount to get the event or function publicized. 9. Effect. Publicity message is more likely to be read, viewed, heard, and reacted by audience. It has a high degree of believability as it is given by the third party. 10. Repetition. Frequency or repetition of publicity in mass media depends upon its social significance or the values for news. Mostly, it appears only once. Objectives of Publicity Publicity is aimed at a number of objectives. The most common objectives of publicity have been discussed in brief as under: 1. Building corporate image. Through publicity, a company can build or improve its corporate image. People trust more on what press reporters, columnists, or newsreaders say via mass media independently than what the company says. Publicity highlights the company’s name and operations. It popularizes the name of the company. 2. Economy. It is a cost saving medium. Here, a company is not required to pay for message preparation, buying space and time, etc. The cost involved is much lower than other means of market promotion. Financially poor companies may opt for publicity. 3. Assisting middlemen and salesmen. Publicity can help middlemen and salesmen in performing the sales-related activities successfully. Information conveyed through publicity speaks a lot of things on behalf of sellers. Publicity makes selling tasks much easier. 4. Information with high creditability. Sometimes, publicity is targeted to disseminate information more reliably. Customers do not express doubts on what publicity appeals. Customers assign more value to information supplied by mass media via publicity than by the advertisement.

12 5. Removing misunderstanding or bad image. Company can defend the product that has encountered public problems. In many cases, publicity is aimed at removing misunderstanding or bad impression. Whatever a publicity conveys is more likely to be believed. 6. Building interest on product categories. Publicity attracts attention of buyers. Due to more trusted news, people build interest in various products and activities. 7. Newsworthiness information. Publicity publicizes the fact in an interesting ways. Publicity is eye-catching in nature. People do not skip the news presented by publicity that more likely happens in case of advertising. For example, when a new product is launched by the distinguished personalities like film star, eminent artist, or cricketer in a grand function, the product becomes popular within no time. SALES PROMOTION Concept and Definition of Sales Promotion The most important tool used in promotion is sales promotion. Most consumers relate ideas of marketing to the use of sales promotion techniques. Sales promotion is the process of persuading a potential customer to buy the product. Sales promotion is designed to be used as a short-term tactic to boost sales – it is rarely suitable as a method of building long-term customer loyalty. 1. According to American Marketing Association, “Sales promotion in a specific sense includes marketing activities other than personal selling, advertising and publicity that stimulate consumer purchasing and dealer effectiveness, such as displays, shows and expositions, demonstrations and various non-recurring selling efforts not in the ordinary situation.” 2. According to A.H.R. Delens, “Sales promotion means any steps that are taken for the purpose of obtaining or increasing sales.” 3. According to Kitchen, Philip J., (1999), “Sales promotion can be defined as short-term incentives to encourage purchase of a good or service”. The above definitions reveal that sales promotion is a marketing device to stimulate demand for a product in ordinary situation through short term incentives Objectives of sales promotion Sales promotion secures the following objectives: 1. Bridge between advertising and personal selling. Sales promotion consists of those activities other than personal selling, advertising and publicity. It serves as a bridge between personal selling and advertising. 2. Introduction of new products. Sales promotional devices help in introducing new products in the market. They induce buyers to purchase a new product. Free samples are distributed or money or merchandise allowance is offered to the dealers to stock and sell the new product. 3. Attracting new customers. Sales promotion aims at wooing new customers. Sales promotional devices at consumer’s level include Coupons, product samples, giving demonstration about the product, organizing contests, refund offers, offering free trials etc. These stimulate customers to make purchase promptly on the spot. 4. Inducing present customers to buy. Sales promotion induces present customers to buy more of the product. Sales promotion methods work faster than advertisement. It enables the consumer to know more about the product, its ingredients and uses. 5. Increasing sales during off season. Some products are seasonal in nature. After the season is over, they are not demanded any more. Sales promotion is used to retain customer’s interest in the product during off-season. Short term incentives offered to the buyers stimulate sales.

13 6. Encouraging business buyers. Wholesalers and retailers purchase goods for resale. Promotional activities are undertaken to attract retailers and wholesalers to stock the products more. Display and advertising allowances are granted to dealers to compensate them for the space given for the display of manufactured products. Premiums are offered for purchasing above a particular level. 7. Improving the public image of the firm. Huge amounts are now being spent on determining appeals for arresting the attention of the prospects towards the product. Consumer’s dissatisfaction about a particular brand can be removed by aggressive sales promotion programmes. Sales promotional devices make products popular among customers. Ultimately, they enhance the public image of the firm. Types of Sales Promotion Sales promotions can broadly be classified into three categories depending on the initiator and the target of the promotion. I. Consumer Sales Promotions (premiums, gifts, prizes, competitions, etc.), II. Trade Sales Promotions (Special terms, point-of-sale materials, etc.), III. Sales Force Promotion. I. Consumer Sales Promotions (premiums, gifts, prizes, competitions etc.) Sales promotion aimed at consumers is called ‘Consumer sales promotion‘. It aims to stimulate consumers. The main consumer promotion tools include samples, coupons, demonstration, contests, cash refund offer, premium, etc. The tools for sales promotions are as follows: 1. Samples. Samples are one of the most important tools of sales promotion. Samples are defined as offers to consumers of a small amount of a product for trial. Free samples are given to consumers to generate their interest in the product. Samples help consumers verify the quality of the product. For example sample for new sweets of Suvam Sweets Corner, biscuits of Hulas Co., Samples are delivered at the doors of consumers or sent by postal mail or given to customers in the retail store itself. Sometimes, samples are attached to another product. For example, samples given by Lux International. 2. Coupons. A coupon is a certificate that fetches buyers a saving when they purchase a specified product. Coupons are generally issued along with the product. They entitle the holders either a specified saving on a product or a cash refund, As, coupon for purchase of Dhoni soap, Bike coupon. Coupons are designed to:  introduce a new product  sell products in large quantity and  encourage frequent purchases. 3. Demonstration. Demonstration is required when products are complex and of a technical nature. Customers are educated as to how to make proper use of the product. Demonstration of products induces customers to buy and use in convenient way. Demonstrations are provided to the consumers free of cost. 4. Contests. Contests are the promotion events that give consumers the chance to win something, such as cash, trips or goods. Contests are conducted to attract new customers. The buyer purchases the product and submits the evidence of purchase with entry form for contest. Entry forms are duly filled by the buyers. A panel of judges selects the best and prizes are given to them, As- contest offered by Honda company for car.

14 5. Cash refund offer. Cash refund offers are rebates allowed from the price of the product. It is an offer to refund a part of the purchase price in % or any other way of a product to the consumers who send a proof of purchase to the manufacturer. 6. Premium. Premium refers to goods offered either free or at low cost as an incentive to buy a product. A premium may be inside the package, outside it or received through mail. The reusable package itself serves as a premium. As, Premium offered for consumer goods such as soap, toothpaste, etc. Premium may be of several kinds- direct premium, reusable container free in mail premium, a self liquidating premium, trading stamps, etc. 7. ‘Price off’ offer. Goods are sold at reduced prices during slump season. Reduction in prices stimulates sale of goods, As for example reduction of price in Dashain season. 8. Buy back allowances. Allowances are granted to buyers on the basis of their previous purchases. In other words, buy back allowances are given for new purchases, based on the quantity of goods bought previously. As for example, Buddha airlines offer. II. Dealer Sales Promotion The other name for dealer promotion is trade promotion. Manufacturers use a number of techniques to secure the co-operation of wholesalers, retailers or the middlemen. These activities, which increase the interest and enthusiasm of dealers and distributors, are called dealer or distributor sales promotion. They are the middlemen who are important persons for the fast movements of products. Hence this must be offered with some incentive. Following are the dealer sales promotion devices: 1. Buying allowance. It is an offer of money off or temporary reduction in price to dealers for purchasing in stipulated period of time. It encourages the dealers to buy a quantity that they will no t buy in ordinary time. This buying allowance gives the dealers immediate profit, and price redemption, as A wet grinder producer will give one grinder free if one purchases five wet grinders at a time. 2. Merchandise allowance. An advertising allowance is given to the dealers for advertising the features of the manufacturer’s product. A display allowance is given to them for arranging special displays of the product. After verifying the promotional work of the dealer, the manufacturers will give a certain amount of money for promotional activities. They hope that additional efforts will be taken to increase the sales at retail level. 3. Price deals. Apart from the regular discount, special discounts are also allowed to the dealers for a specified quantity of purchase. This special discount is over and above the regular discount. For instance, a regular discount of Rs. 10 per case is allowed; and if the dealer purchases 100 cases at a time, he will be given a discount of Rs. 12 per case, i.e., Rs. 200 extra for the purchase of 100 cases. 4. Push money or premium. Manufacturers may offer push money. It is a payment in cash or gifts given to dealers or to their sales force to push the manufacturer’s product. To push his brand, the manufacturer will offer free specialty items that carry company’s name, such as pens, pencils, calendars, match boxes, memo pads and yard sticks etc. This is a device for aggressive selling. 5. Co-operative advertising. Dealers spend money in advertising manufacturer’s product with the consent of the manufacturers. The dealer can claim an allowance by giving the proof of the advertisement. This is an indirect advertising for the manufacturer. It will increase the sales of the manufacturer’s product. But it is a burden on the manufacturer’s budget. 6. Dealer sales contests. This is an indirect way of boosting the sales. This type of contest is conducted at the level of retailers and wholesalers. This is in the form of window display, store display, sales (volume) etc. Prize is awarded to the outstanding achievements. This method is aimed at stimulating and motivating distributors, dealers, sales-staff etc. 7. Dealer’s gift. Manufacturers give attractive and useful articles to dealers against their order. The gift may be transistor, radio, television set, clock, watch, bike, car etc. Some manufacturers offer free

15 holidays family tours to dealers who place more orders. LG Co., arranges for free holidays tours to those who sell the maximum TV in a year. 8. Point-of-purchase. Point-of-purchase is also known as dealer-aids, dealer displays, and dealer hopes etc. The competition among the retailers or traders has encouraged point-of-purchase advertising, which is a significant method for sales promotion. For instance, floor displays, stands, overhead signs, wall signs, posters etc., are examples of point-of-purchase materials. Again, it may be exterior or interior items. Exterior items like banners, displays are utilized by firms like service station. As for example, display of product in Dharan exhibition. III. Sales Force Promotion As dealer and consumer promotion, the sales force promotion also is a necessary one. The activities of sales force must be induced. In the channel of distribution, the role of salesman is very important. The idea of sales force promotion is to make the salesman’s effort more effective. The tools for sales force promotions are: 1. Bonus to sales force. The manufacturer sets a target of sales for a year. If the sales force sell the products above the targeted sales, bonus is offered to them. This is an encouragement incentive given to the sales people to sell more products—to cross the quota or targeted sales. 2. Sales force contests. To increase the interest and efforts of sales by sales force over a specified time, these contests are announced. The prizes are given to the salesman who secures the maximum sales in sales contests. Thus it stimulates the salesmen to sell more products. 3. Salesmen meetings and conferences. The idea behind these is to educate, inspire and reward salesmen. Encouragement is given to them during the discussion. New selling techniques are described to them and discussed in the conference. PERSONAL SELLING Meaning and Definition of Personal Selling Personal selling is one part of a company’s promotion mix, along with advertising, sales promotion, and public relations. Personal selling is the process of communicating with a potential buyer (or buyers) face-to-face with the purpose of selling a product or service. This is very old and popular technique. In fact, most of history’s successful entrepreneurs have been skilled salespeople, able to represent and promote their companies and products in the marketplace. Personal selling can be defined as an oral presentation in conversation with one or more prospective customers for making sales. In personal selling, a salesman can pinpoint the prospect and actual demonstration of the product can be made through two –way communication. Personal selling has a permanent place in promotion and distribution. Personal selling searches for customers offers for sale, create confidences and execute sales through different activities. 1. According to W. J. Stanton, “Personal selling consists of individual, personal communication, in contrast to the mass impersonal communication of advertising, sales promotion, and other promotional tools”. 2. According to Philip Kotler, “Personal selling is a broader concept and involves oral presentation in a conversation with one or more prospective purchasers for the purpose of making sales”. Process of personal selling There are many steps involved in the process of personal selling: prospecting, pre-approach, approach, sales presentation, handling objectives, and follow up.

16 1. Pre-sale preparation. Pre-sale preparation is the most important and the most neglected step in personal selling process. In this step you select right person for marketing and selling your product, you give him proper training and motivate him to achieve target successfully. Salespersons must be fully familiar and aware with the products which he is going to sell. It is the responsibility of company, organization, firm etc. to tell new salesman about his company history, products, earlier projects, success and also, he must know about his competitor, his Products, services and challenges from his competitors so that he can handle all this successfully 2. Prospecting. The second step of the personal selling process is called ‘prospecting’. Prospecting refers to locating potential customers. There are many sources from which potential customers can be found: observation, social contacts, trade shows, commercially-available databases, commercially-available mail list and cold calling. 3. Pre-approach. The next step in the personal selling process is called the ‘pre-approach’. The preapproach involves preparation for the sales presentation. This preparation involves research about the potential customers, such as market research. Research is useful in planning the right sales presentation. During the pre-approach the salesperson may also plan and practice their sales presentation. For example, if your company is selling software for school then try to approach principal or manager of the school and explain them about your product and how it will help their school if they are convinced, they will buy your product because they have purchasing power. 4. The approach. The next step in the personal selling process is called the ‘approach’. The approach refers to the initial contact between the salesperson and the prospective customer. During this stage the sales person takes a few minutes for “small talk” and get to know the potential customer. The goal of the approach is to determine the specific needs and wants of the individual customer, as well as allowing the potential customer to relax and open up. 5. Sales presentation. The next step in the personal selling process is called the ‘sales presentation’. The sales presentation involves the salesperson presenting the product or service, describing its qualities and possibly demonstrating features of the product. Ideally the sales presentation will be individualized to match the needs and desires of the potential customer. 6. Handling objectives. In some cases, after receiving the sales presentation, the potential customer will have some questions or concerns. In order to secure a sale, the salesperson must address these questions or concerns; this step is referred to as ‘handling objectives.’ 7. Closing the sale. The next step in the personal selling process is referred to as ‘closing the sale’. ‘Closing the sale’ refers to finalizing the sale and persuading the potential customer to make the purchase. During the ‘closing the sale’ step, prices and payment options may be negotiated. 8. Follow up. The final step in the personal selling process is referred to as the ‘follow up.’ The follow up involves the salesperson contacting the customer after the sale to ensure that the customer is satisfied. If the customer has any existing issues with the product, the salesperson will address them. A successful follow up stage of personal selling can be very effective in ensuring repeat sales, evaluating the effectiveness of the salesperson, and obtaining additional referrals from the satisfied customer. Importance of Personal Selling Personal selling is an important element of promotion mix and an effective promotional tool. The importance of personal selling can be shown briefly below: 1 Flexible message. Personal selling is important as a flexible message. It involves individual and personal communication as compared to the mass and impersonal communication of advertising and sales promotion. Therefore, personal selling is most flexible in operation. Trader can observe the

17 customer’s reaction to a particular sales approach and thus makes necessary adjustments right on the spot. Face- to –face contacts with customers is the most effective means of communication. 2. Minimum wastage. Personal selling helps in minimum wastage of the goods. In personal selling, a salesman can select the target market and concentrate on the customers. He need not communicate with the people. Therefore, personal selling involves minimum wastage of effort. 2. Effective sales. Personal selling helps in the effective sales of products. Personal selling in most cases leads to an actual sale. A salesman can find potential buyers, demonstrate the product, explain its operation, and convince customers to buy it or install it at the customer’s place and provide after sale service. Therefore, personal selling does the entire job of selling. It is a complete promotional technique of keeping customers satisfied. 3. Immediate feedback. Personal selling helps in the immediate feedback of the products in the market. It involves a two-way flow of communication between the buyer and the seller. It is a useful method of understanding the needs and behavior of customers. It provides knowledge about the tastes, habits, and attitudes of the customers. 4. Complements to advertising. Personal selling also acts as a complement to advertising. In most situations, there is a need for explaining the quality uses and price of the product. Advertising attracts customers but their doubts and questions about the product are answered by salesmen. In this way, personal selling supports advertising. Salesmen educate the consumers about new products and about new uses of existing products. 5. Educates consumers. Personal selling helps to educate the consumers about the products. Salesmanship is not simply a tool of convincing people to buy certain products. It assists customers in satisfying their wants. A salesman provides information, education, and guidance to customers. He handles their complaints and assists them in getting value for their money. It is important to educate the consumers about the product. 6. Employment opportunity. Personal selling also creates employment opportunity to the people. It helps to increase aggregate sales and production in the country thereby increasing employment opportunities. They help to maintain equilibrium between demand and supply. Types of Salespersons 1.

2.

3.

4. 5.

In business and industry, the following types of salespersons are widely used: Manufacturers salesman. A manufacturer’s salesman is that type of salesman whose job is to sell products either directly to the consumers or to the wholesale or retailers. He may be a “pioneer salesman”, merchandising salesman or a ‘dealer servicing salesman’. A manufacturers salesman is engaged in creating and cultivating outlets for a new product. Pioneer or missionary salesman. Pioneer salesman is also known as a creative salesman. They are employed by manufacturers and do the work of missionary nature. They create demand for the products. They usually develop goodwill. They call on distributors, wholesalers, retailers, professional customers, in order to promote the products. Merchandising salesman. Merchandising salesman is the salesman who gives suggestions on display, store- layout, service layout, service facility, etc. They arrange wide publicity and conduct demonstration for dealer salesmen by working along with them. They are largely involved in drugs, medicines, grocery, etc. Dealer servicing salesmen. Dealer salesman is that salesman who calls on retailers in their territory and visits them often. They bring samples of new products, take orders and organize window display. Wholesaler’s salesmen. The wholesaler’s salesman is the salesman who calls on retail dealers at regular intervals to book their orders. He informs the retailers about the various products offered by

18 the wholesaler, helps them in the selection of articles and advises the retailers in involving effective selling techniques. The wholesaler’s salesman may be the outdoor or indoor salesman. 6. Sales engineer. Sales engineer are that salesman who deals in high-value goods like computers, automobiles, refrigerators, washing machines, and television set. They are known as specialty salesman. They help in the installation of the products like computer or plant and machinery at the customer's place. 7. Service salesmen. Service salesmen are appointed by the institutions providing intangible/ individual services like banking and insurance companies. These salesmen can meet the public to convince them about the need of saving for better future. Their job requires greater persuasion as compared to the job of salesmen dealing in tangible products. Qualities of a Good Salesperson

1.

Personality. A salesman should have a good personality. The personality includes a way of speaking, voice, posture, habits, etc. A pleasing and charming personality always creates a good impression on the prospects. A salesman should possess good health because it is the key to his efficiency. His tone of speaking should be natural so as to create receptivity among the listeners. 2. Mental qualities. An effective salesman must possess certain mental qualities like imagination, foresightedness, presence of mind, strong memory power, and initiative. A good salesman must have the power of imagination so that he can enter into the shoes of the potential customer to know what he wants and how he wants to be treated. These mental qualities will help a salesman in winning permanent and regular customers. 3. Sociability. A salesman should be social and have the ability to mix with people. He should be able to interact with all types of people. He should be honest, sincere, dependable and cooperative. He should have the patience to listen to the customers and remove their objections. He should be polite and humble in talking to the customer. He should have the quality of adjusting the customers of different nature. He should not be shy among the people. 4. Vocational skills. A salesman should have the good vocational skill to deal with the customers. Salesmanship is a highly skilled vocation. It requires certain training and a specific bent of mind. He should have ambitions and enthusiasm to become a good salesman. A good salesman should know the features, benefits and other particulars of the product which is to be sold.

19 5. Communication ability. A salesman should have a good communication ability. He should communicate with the people in a good manner. Communication skill is an asset for the salesman. He should be able to speak freely, clearly and in a well-pitched voice. 6. Patience. A salesman should have the ability of patience. He should not get provoked even under worst circumstances. He should have sufficient patience to listen to customers and clear their doubts. 7. Determination. The salesperson must have a sense of determination to secure the customer. He should not lose confidence and give up the customer so easily. It is important for him to determine and convince the customers about the products. 8. Dependability. Dependability is the must needed for a salesman. The salesman can win permanent customers if he is honest, sincere and dependable. He should be able to win the confidence of the customers if he is to succeed in his vocation. So, dependability is must needed for a salesman to develop his sales career. Types of Personal Selling 1. Retail selling. Retail selling the product the consumers through retail store or door to door visit .in door sales persons work at the store and they deal with the customers visiting the stores and outdoor sales personal visit the potential customers in their homes or offices and persuade them to buy the product. 2. Trade selling. It involves selling the product to the retailers and wholesalers trade sales personal made regular contact to the wholesaler and retailers and received bulk order from them, trade sales personal work either for wholesaler or manufactures. 3. Missionary selling. In missionary selling missionary sales personal create demand for the product they do not directly sales the product. They visit retail stores and encourage them to place orders from the dealers and wholesalers they work for manufactures. 4. Industrial selling. It involves selling the capital item like equipment, machineries to the industrial users industrial sales personal are usually very well educated experience and train people they provides technical information and assistances. PUBLIC RELATION Concept of Public Relation Public relations are the management functions that identifies, establishes and maintains mutually beneficial relationships between an organization and the various publics on whom its success or failure depend. Companies cannot survive in isolation they need to have a constant interaction with customers, employees and different stakeholders. This servicing of relation is done by the public relation office. The major function of the public relation office is to handle press releases, support product publicity, create and maintain the corporate image, handle matters with lawmakers, guide management with respect to public issues. 1 According to W. J. Stanton, “Public Relation is a management tool designed to favorably influence attitudes towards an organization, its products, and its policies.” 2 According to British Council of the Institute of Public Relations, “PR is the deliberate, planned and sustained effort to establish and maintain mutual understanding between and organization and its publics.” Companies are looking at ways to converge with functions of marketing and public relation in marketing public relation. The direct responsibility of Marketing Public Relation (MPR) is to support corporate and product branding activities.

20 MPR is an efficient tool in building awareness by generating stories in media. Once the story is in circulation MPR can establish credibility and create a sense of enigma among sales people as well as dealers to boost enthusiasm. MPR is much more cost effective tool than other promotional activities. Tools of Public relations In order to build a relationship with the target audience and maintain it on a high level, PR specialists use a variety of tools and techniques. Some of the most common ones include: 1) Attendance at public events. In order to attract public attention and keep it engaged with a particular organisation or an individual, PR specialists take an advantage of every public event and the opportunity to speak publicly. This enables them to directly reach the public attending the event and indirectly, a much larger audience. 2) Events/ Functions. Public relations experts organize special events, gatherings, parties, to target their customers and promote their organization and its products among them. People from media are also invited for coverage. 3) Press releases. Information that is communicated as a part of the regular TV or/and radio programme, newspapers, magazines and other types of mainstream media achieves a much bigger impact than advertisements. This is due to the fact that most people consider such information more trustworthy and meaningful than paid adds. Press release is therefore one of the oldest and most effective PR tools. 4) Newsletters. Sending newsletters – relevant information about the organisation or/and its products/services - directly to the target audience is also a common method to create and maintain a strong relationship with the public. Newsletters offering promotional products are also a common marketing strategy but PR specialists use it to share news and general information that may be of interest to the target audience rather than merely promoting products/services. 5) Blogging. To reach the online audience, PR specialists use the digital forms of press releases and newsletters but they also use a variety of other tools such as blogging and recently, micro blogging. It allows them to create and maintain a relationship with the target audience as well as establish a two-way communication. 6) Social media marketing. Like its name suggests, it is used primarily by the marketing industry. Social media networks, however, are also utilised by a growing number of PR specialists to establish a direct communication with the public, consumers, investors and other target groups. 7) Charity/ Corporate social responsibility. Public relations experts engage in various social and charitable activities to publicize their organization and its products. Organizations distribute products among target audiences to create a goodwill of their organization. 8) Employee interactions on a regular basis. It is really essential for employers to stay in constant touch with employees and keep them abreast with the latest developments and happenings within the organization. Management or public relations experts should circulate latest events, new product launches among employees through emails, circulars, notices or simply communicating with them. Selection of Promotion mix/ Factors Influencing Promotion Mix Main factors influencing promotion mix has been briefly discussed as under: 1. Type of product. Type of product plays an important role in deciding on promotion mix. Product can be categorized in terms of branded products, non-branded products, necessity products, luxury products, new products, etc. All these types of products need different promotional tools. For example, advertising is suitable for the branded and popular products. Personal selling may be fit for

21 non-branded products. Advertising, personal selling, sales promotion and publicity – all four tools – are used for a newly launched product to get a rapid consumer acceptance. 2. Use of product. Product may be industrial product, consumable and necessity product, or may be luxurious product that affects selection of promotion tools and media. For example, advertising and sales promotion techniques are widely used for consumer goods while personal selling is used for industrial goods. 3. Complexity of product. Product complexity affects selection of promotional tools. Personal selling is more effective for complex, technical, risky, and newly developed products as they need personal explanation and observation. On the other end, advertising is more suitable for simple and easy-handled products. 4. Purchase Quantity and Frequency. Company should also consider purchase frequency and purchase quantity while deciding on promotion mix. Generally, for frequently purchase product, advertising is used, and for infrequently purchase product, personal selling and sales promotion are preferred. Personal selling and advertising are used for heavy users and light users respectively. 5. Fund available for market promotion. Financial capacity of company is a vital factor affecting promotion mix. Advertising through television, radio, newspapers and magazines is too costly to bear by financially poor companies while personal selling and sales promotion are comparatively cheaper tools. Even, the company may opt for publicity by highlighting certain commercially significant events. 6. Type of market. Type of market or consumer characteristics determines the form of promotion mix. Education, location, income, personality characteristics, knowledge, bargaining capacity, profession, age, sex, etc., are the important factors that affect company’s promotion strategy. 7. Size of market. Naturally, in case of a limited market, personal selling is more effective. When market is wide with a large number of buyers, advertising is preferable. Place is also an important issue. Type of message, language of message, type of sales promotion tools, etc., depend on geographical areas. 8. Stage of Product Life Cycle. Product passes through four stages of its life cycle. Each stage poses different threats and opportunities. Each stage needs separate marketing strategies. Each of the promotional tools has got different degree of suitability with stages of product life cycle. It can be concluded that, in normal situations: 1. Advertising, personal selling, and, even, sales promotion are used during the introduction stage. However, advertising is given more priority, 2. More intensive advertising and sales promotional techniques are used during the second stage, 3. More rigorous advertising along with personal selling are followed in the third stage, and 4. Company prefers to curb the expenses in forth stage, and promotional efforts are reduced. 9. Level of competition. Promotional efforts are designed according to type and intensity of competition. All promotional tools are aimed at protecting company’s interest against competition. Level of promotional efforts and selection of promotional tools depend on level of competition. 10. Promotional objectives. It is the prime factor affecting promotional mix. Different objectives can be achieved by using different tools of promotional mix. If company’s objective is to inform a large number of buyers, advertising is advisable. If company wants to convince limited consumers, it may go for personal selling. Even, when company wants to influence buyers during specific season or occasion, the sales promotion can be used. Some companies use publicity to create or improve brand image and goodwill in the market. 11. Other factors. Over and above these factors, there are certain minor factors that affect promotion mix. These factors may include: i. Price of Product, ii. Type of Marketing Channel,

22 iii. Degree of Product Differentiation, iv. Desire for Market Penetration, etc. INTEGRATED MARKETING COMMUNICATION (IMC) Concept of Integrated Marketing Communication (IMC) It is essential for organizations to promote their brands well among the end-users not only to outshine competitors but also survive in the long run. Brand promotion increases awareness of products and services and eventually increases their sales, yielding high profits and revenue for the organization. In this concern, Integrated Marketing Communications (IMC) blends various promotional tools and communications/ marketing/ advertising services and techniques to maximize profit. Integrated marketing communication refers to integrating all the methods of brand promotion to promote a particular product or service among target customers. In integrated marketing communication, all aspects of marketing communication work together for increased sales and maximum cost effectiveness. According to Duncan, “ IMC is the process for planning , executing and monitoring the brand message that create customer relationships”. 2. According to Clow & Baack, 2007, P.8, “IMC is the coordination and integration of all marketing communication tools, avenues and sources within the company into a seamless program that maximizes the impact on consumers and other end users at a minimal cost”. 3. According to American Marketing Association, “A planning process designed to assure that all brand contacts received by a customer or prospect for a product, service, or organization are relevant to that person and consistent over time”. Thus, it involves coordinating the various promotional elements and other marketing activities that communicate with the firm’s customers. The basic tools used to accomplish an organisation’s communication objectives are referred to as the promotional mix. The promotional mix has traditionally involves: Advertising Sales Promotion Public Relations Personal Selling 1.

Components of Integrated Marketing Communication 1. Foundation As the name suggests, foundation stage involves detailed analysis of both the product as well as target market. It is essential for marketers to understand the brand, its offerings and end-users. You need to know the needs, attitudes and expectations of the target customers. Keep a close watch on competitor’s activities. 2. Corporate Culture The features of products and services ought to be in line with the work culture of the organization. Every organization has a vision and it’s important for the marketers to keep in mind the same before designing products and services. Let us understand it with the help of an example. Organization A‘s vision is to promote green and clean world. Naturally, its products need to be eco friendly and biodegradable, in lines with the vision of the organization. 3. Brand Focus Brand Focus represents the corporate identity of the brand. 4. Consumer Experience

23 Marketers need to focus on consumer experience which refers to what the customers feel about the product. A consumer is likely to pick up a product which has good packaging and looks attractive. Products need to meet and exceed customer expectations. 5. Communication Tools Communication tools include various modes of promoting a particular brand such as advertising, direct selling, promoting through social media such as facebook, twitter, orkut and so on. 6. Promotional Tools Brands are promoted through various promotional tools such as trade promotions, personal selling and so on. Organizations need to strengthen their relationship with customers and external clients. 7. Integration Tools Organizations need to keep a regular track on customer feedbacks and reviews. You need to have specific software like customer relationship management (CRM) which helps in measuring the effectiveness of various integrated marketing communications tools. Significance of Integrated Marketing Communication Integrated marketing communications is an approach to planning communications that gives your small business the potential to get better results from your campaigns and reduce marketing costs. By integrating tools such as advertising, direct mail, social media, telemarketing and sales promotion, you provide clarity, consistency and maximum communications impact. IMC is not a new concept, but it’s more important than ever, as there are now more marketing channels than ever before. Back in the 50’s, marketing campaigns relied heavily on print, radio, and television. IMC provides greater:  Brand differentiation.  Accountability within a firm.  Trust among consumers.  Levels of effectiveness in cutting through message clutter than single strategies. Following are the roles and importance of IMC: 1. Results In the traditional approach to marketing communications, businesses and their agencies plan separate campaigns for advertising, press relations, direct marketing and sales promotions. Integrated campaigns use the same communication tools to reinforce each other and improve marketing effectiveness. In an integrated campaign, you can use advertising to raise awareness of a product and generate leads for the sales force. By communicating the same information in press releases and feature articles, you reinforce the messages in the advertising. You can then use direct mail or email to follow up inquiries from the advertising or press campaigns and provide prospects with more information. To help convert those prospects to customers, you can use telemarketing to sell directly or make appointments for the sales team. 2. Creative Consistency In an integrated campaign, the different tools feature the same creative treatment. By repeating the headlines, key phrases and images in each communication, you ensure that prospects and customers receive consistent messages each time they see one of the elements of the campaign. Creative consistency helps reinforce the basic campaign themes by increasing the number of times prospects see or hear the same message. 3. Cost Savings Creative consistency in your integrated campaigns can also save you money. By using the same images and adapting the same copy for different media, you reduce copy-writing, design and photography costs. If you work with external communications suppliers, you may be able to reduce

24 agency fees by working with a single firm that offers integrated communications services, rather than separate specialist agencies. 4. Customer Preference An integrated campaign helps you provide customers with information in the format they prefer. Consumers and business customers can specify if they want to receive product information via email, direct mail, text message or telephone. Integration ensures they receive the same information in all communications. You can also meet the needs of customers who search the Internet for product information by integrating your website design and content with other communications. 5. Direct Marketing The communication establishes through a direct channel without using any intermediaries is referred to as direct marketing. Direct marketing can be used to deliver message or service. Direct marketing has shown tremendous growth in recent years. The internet has played major part in this growth story. Direct marketing saves time, makes an experience personal and pleasant. Direct marketing reduces cost for companies. Face to face selling, direct mail, catalog marketing, telemarketing, TV and kiosks are media for direct marketing. Advertisement, Promotional activity, Public relation and direct marketing play an essential role in helping companies reaches their marketing goals. Questions 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21.

Define promotion. Discuss objectives of promotion. What do you mean by Promotion Mix? Discuss its various components. What do you mean Advertising? State the features of Advertising. Mention the types of Advertising. What is media? Discuss the types of Media. Give the concept of Web advertising in marketing communication What is publicity? Write about the objectives of publicity. Describe the forms of publicity. What is Sales Promotion? What is its different type? Discuss. What is the concept of Personal selling? Explain the types of Personal selling State the processes of personal selling. Explain the types of personal selling. What do you mean by Public relations? Describe the tools of public relations. Discuss the factors for Selecting Promotion mix. What do you understand by Integrated marketing communication? Explain significance of Integrated marketing communication. Discuss the Components of Integrated Marketing Communication.

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