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Unit 4 Marketing 12th Class 2025

The document discusses the significance of promotion in business communication, highlighting its role in informing, persuading, and reminding customers about products or services. It outlines the elements of the promotional mix, including advertising, sales promotion, direct marketing, personal selling, and public relations, while also distinguishing between above-the-line and below-the-line promotions. Additionally, it covers the importance of effective promotion in building customer relationships and supporting overall business goals.

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48 views19 pages

Unit 4 Marketing 12th Class 2025

The document discusses the significance of promotion in business communication, highlighting its role in informing, persuading, and reminding customers about products or services. It outlines the elements of the promotional mix, including advertising, sales promotion, direct marketing, personal selling, and public relations, while also distinguishing between above-the-line and below-the-line promotions. Additionally, it covers the importance of effective promotion in building customer relationships and supporting overall business goals.

Uploaded by

Bliss Kedia
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Unit - 4

Promotion
Session 1 : Meaning & Importance

Introduction
1. Communication is vital in every aspect of life, and in business, it's no
different. There are three types of communication:
A. Internal Communication: Messages intended only for the internal
members of an organization.
B. Internal-External Communication: Interaction between the
organization’s internal team and those outside the company.
C. External Communication: The focus of this session, which involves
communication between the company and various external stakeholders.

Meaning of Promotion : Promotion is the key activity in which businesses


communicate with their target market. It involves informing, persuading, and
reminding customers about a product or service, where it is available, and its
price. Promotion encompasses the following:

• Integrated Marketing Communication (IMC): Ensures consistency in


messaging across all promotional tools.
• Process of Communication: How information is passed to the target
audience.
• Promotion Mix: The combination of tools used to promote a product, service,
or idea.

Importance of Promotion
1. Information: Promotion educates and informs customers about new
products, services, or ideas, including their availability and location.
2. Persuasion: With many brands competing for attention, promotion aims
to persuade customers to choose one brand over others.
3. Remind: Promotion serves to remind customers continuously about a
brand, maintaining awareness and loyalty. For example, during World War II,
Bourn-vita kept advertising even when the product was in short supply to
ensure customers remained loyal.
4. Relationship Building: Effective promotion fosters long-term
relationships with customers through continuous engagement, enhancing
brand loyalty.
5. Adds Value: Promotion shapes customer perceptions, adding value to a
brand by influencing how it is seen in the market.
6. Assists Other Company Efforts: Promotion supports sales efforts and
complements other marketing strategies, helping to achieve overall business
goals.
Session - 2: Elements of Promotional Mix

Types of Promotion: ATL & BTL


• Above-the-Line (ATL): This includes mass communication through television,
radio, and print media, aimed at reaching a broad audience. ATL is often
expensive and involves high-budget campaigns (e.g., Rs. 10-25 crore for a TV
campaign).
• Below-the-Line (BTL): Targeted activities such as in-store promotions, fairs,
and local advertising, focusing on consumer interaction and feedback. These
are more cost-effective, especially in rural areas where direct consumer
engagement is key.
Key Elements of the Promotion Mix
Marketing authors typically identify four key elements, but Philip Kotler expands
these to eight, which are consolidated into five main categories:

1. Advertising & Word-of-Mouth


Communication
2. Sales Promotion
3. Direct Marketing & Online Marketing
4. Personal Selling
5. Public Relations & Sponsorship
1. Advertising & Word-of-Mouth Communication

• Advertising: Defined by the American Marketing Association as "any paid


form of non-personal promotion of ideas, goods, or services by an identified
sponsor." Key elements include payment, non-personal communication, an
identifiable source, and promotion of ideas, products, or services.
• Word-of-Mouth (WOM): Influential in penetrating markets, with opinion
leaders or influencers playing a crucial role. For instance, Marico utilized
barbers as influencers to promote Parachute After-Shower cream. WOM
communication, though mostly offline, helps build consumer trust through
personal experience sharing and reviews.
2. Sales Promotion
• Defined as "any activity which adds value to a product or service for a limited
time, offering an incentive to purchase." Sales promotions provide "extra
benefits" that encourage immediate action from consumers, shifting focus
from brand awareness to immediate sales. Popular methods include
discounts, contests, and offers.

3. Direct Marketing & Online Marketing

• Direct Marketing: Involves creating direct relationships with customers


through customized communication, often using mail, telephone, or email to
generate immediate responses or sales. It is a targeted approach aimed at
fostering lasting customer relationships.
• Online Marketing: Also known as e-commerce, involves business
transactions conducted electronically. It includes activities like online sales,
digital advertising, and email marketing to connect with consumers digitally.
4. Personal Selling

• Personal selling involves face-to-face communication between a salesperson


and a customer. It is a two-way communication process that is highly
personalized and persuasive, often used in industries like real estate or high-
value products.

5. Public Relations (PR) & Sponsorship

• Public Relations (PR): Defined by Edward Bernays as a "management


function" that fosters mutual understanding between an organization and its
stakeholders. PR includes media relations, press releases, corporate social
responsibility (CSR), and public events to shape public perception.
• Sponsorship: Involves providing financial or in-kind support for events,
activities, or individuals to gain commercial benefits. It helps increase brand
visibility and foster positive brand associations by linking the company to
popular events or causes.

Modes of Advertising
1. Print Media (Newspapers, Magazines, Yellow Pages)
 Advantages: Wide reach, targeted markets, high reader
engagement.
 Limitations: Short shelf life, costly space, no audiovisual element.

2. Radio
 Advantages: Economical, fast, reaches segmented audiences.
 Limitations: No visuals, clutter, divided listener attention.
3. Television
 Advantages: Visual demonstration, humor, realistic appeal.
 Limitations: High costs, remote zapping, scheduling issues.

4. Telemarketing
 Advantages: Cost-efficient, direct response, place and time
independent.
 Limitations: Screening of unwanted calls, less control if outsourced.

5. Cinema Advertising
 Advantages: Captive audience, longer videos, large screen.
 Limitations: High cost, selective audience, distractions.
6. Out-of-Home Advertising (Billboards, Transit Ads)
 Advantages: Mass reach, large visibility, colorful and dominant.
 Limitations: Limited time (2-3 seconds), short campaigns.

7. Other Modes
 Includes cable ads, direct mail, pay-per-click, social media,
advergaming, etc.
Sales Promotion: Importance & Objectives
• Definition: Temporary incentive to boost product sales.
• Objectives: Increase trial, loyalty, widen usage, create awareness,
deflect attention from price, gain intermediary support, and address
complaints.

Types of Sales Promotion


1. Price Promotions: Discounts, free offers, cash rebates,
repurchase offers, coupons.

2. Prize Promotions: Sweepstakes, competitions, free prize draws.


3. Premium Promotions: On-packet offers, free mail-ins, partner
promotions.
4. Off-the-Shelf Offers: Discount coupons, holiday vouchers, two-
for-one flights.
5. Hybrid Sales Promotions: Trade fairs, events to boost company
image.

Differences between Advertising & Sales Promotion


• Advertising: Long-term, costly, builds brand image, indirect sales
Effect.

• Sales Promotion: Short-term, cheaper, immediate sales impact.


Differences between Personal Selling & Sales Promotion
• Personal Selling: Face-to-face, high value, long-term relationships,
Expensive due to the need for trained personnel and travel.

• Sales Promotion: No direct interaction, low-value products, short-


term sales boost, more affordable.
Factors Affecting Promotion Mix
1. Push vs. Pull Strategy: Push motivates intermediaries; pull
focuses on consumers.
2. Product Features: Consumer goods need more advertising;
industrial products need personal selling.
3. Product Life Cycle: Advertising in the introductory phase; sales
promotion in maturity.
4. Buyer Readiness & Type: Awareness through ads; ready-to-buy
customers need promotions.
5. Distribution Type: Intensive distribution uses ads; exclusive
distribution uses personal selling.
6. Budget & Media Availability: Budget influences promotion
methods; media availability (like TV ads) can limit choices.
7. Digital Media: Fast-growing digital promotion requires
understanding consumer behavior.
8. Election Impact: Some companies exploit election periods for
marketing, while others avoid it.
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