MARKETING

MANAGEMENT
MODULE III
PROF.DR.LEEBA BABU
MAR GREGORIOS COLLEGE OF
LAW
MAR IVANIOS VIDYA NAGAR
 MODULE III
 MARKETING PRODUCT
 PRODUCT-MEANING-INNOVATION
 PRODUCT DEVELOPMENT- STAGES OF NEW PRODUCT DEVELOPMENT
 PRODUCT MIX
 PRODUCT LIFECYCLE-STAGES & STRATEGIES
 BRANDING
 TRADEMARK
 BRAND EQUITY
 STANDARDISATION
 PACKAGING
 LABELING
 PRODUCT PROMOTION
 PROMOTION MIX – ADVERTISEMENT, PERSONAL SELLING,PUBLICITY,
SALES - PROMOTION TECHNIQUES
MARKETING MIX - 7Ps

According to Philip Kotler,

‘marketing mix is the mixture
of controllable marketing
variable that the firm uses to
pursue the sought level of
sales in the target market’.
MARKETING MIX 7Ps
MARKETING MIX-MOST IMPORTANT 4Ps
& DECISIONS OF A MARKETER
MARKETING MIX
-
4 Ps

IN DETAIL
PRODUCT-MEANING-INNOVATION

Philip Kotler defines product:

 ‘A product is anything that can be
offered to a market for attention,
acquisition, use or consumption.’

 A product may be defined as a set of

tangible, intangible and associate
attributes capable of being exchanged
for a value with the ability to satisfy
consumers and business needs.
HOW CUSTOMERS VALUE A
PRODUCT?
Philip Kotler distinguished three drivers of how customers attach value
to a product:

• Need: a lack of a basic requirement.

• Want: a specific requirement of products to satisfy a need.
• Demand: a set of wants plus the desire and ability to pay for the
product.

 Customers will choose a product based on their perceived value of it.

Satisfaction is the degree to which the actual use of a product matches
the perceived value at the time of the purchase.
 A customer is satisfied only if the actual value is the same or exceeds
the perceived value.
 A product is more than a tangible ‘thing’. A product meets the needs of
a consumer and in addition to a tangible value this product also has an
abstract value.

Kotler attributed five levels to products.

 Kotler states that there are five product
levels that can be identified and developed.
 In order to shape this abstract value,Kotler
uses five product levels in which a product is
located or seen from the perception of the
consumer.
 These 5 Product Levels indicate the value
that consumers attach to a product. The
customer will only be satisfied when the
specified value is identical or higher than
the expected value.
FIVE LEVELS OF
PRODUCT
 FIVE LEVELS OF
PRODUCT
 1. Core Product
 This is the basic product and the focus is on the purpose for which the product is
intended. For example, a warm coat will protect you from the cold and the rain. The more
important benefits the product provides, the more that customers need the product. A
key element is the uniqueness of the core product. This will benefit the product
positioning within a market and effect the possible competition.
 2. Generic Product
 This represents all the qualities of the product. For a warm coat this is about fit, material,
rain repellent ability, high-quality fasteners, etc.
 3. Expected Product
 This is about all aspects the consumer expects to get when they purchase a product.
That coat should be really warm and protect from the weather and the wind and be
comfortable when riding a bicycle.
 4. Augmented Product
 The Augmented Product refers to all additional factors which sets the product apart from
that of the competition. And this particularly involves brand identity and image. Is that
warm coat in style, its colour trendy and made by a well-known fashion brand? But also
factors like service, warranty and good value for money play a major role in this. The goal
is to deliver something that is beyond an expected product. It’s the translation of the
desire that is converted into reality.
 5. Potential Product
 This is about augmentations and transformations that the product may undergo in the
future. For example, a warm coat that is made of a fabric that is as thin as paper and
PRODUCT LEVELS
 Competition
The competition between businesses focuses
mainly on the distinctiveness of the Augmented
Product according to Philip Kotler.
It is about the perception a consumer
experiences when purchasing a product and it is
not so much about value.
He states: “Competition is determined not so
much by what companies produce, but by what
they add to their product in the form of packaging,
services, advertising, advice, delivery (financing)
arrangements and other things that can be of
value to consumers”.
Five Product Levels : marketing strategy
 For production companies it is important to
deliver products in an upward trend from
‘Core Product’ to ‘Augmented Product’ and
to have the potential to grow into the
‘Potential Product’.

 Under the guise of stagnation means

decline, innovative companies focus on the
latter category
Added value of the Five Product Levels:-

 Each level of the five product levels adds value for the
customer. The more efforts production companies make at all
levels, the more likely they are to stand a chance to be
distinctive.
 At the Augmented Product level, the competition is observed
in order to copy certain techniques, tricks and appearance of
each other’s products. This makes it increasingly difficult for a
consumer to define the distinctiveness of a product.
 To be able to tower over the competition, production
companies focus on factors which consumers attach extra
value to such as extreme packaging, surprising advertisements,
customer-oriented service and affordable payment terms.
 This is not just about satisfying the customers and exceeding
their expectations but also about surprising them.
PRODUCT DEVELOPMENT
 In today’s marketing practices, new product development is
a challenging task. New product development process is
dynamic in nature. Number of steps and types of steps to be
involved depend on a number of factors such as objectives,
investment required, degree of risk, type of people available,
current market situations, type of product to be developed,
past experience, market changes, and so forth.

 Careful analysis of the relevant factors helps decide the

suitable process of developing a new product. Note that the
question of new product development arises only when a
company wants to develop a new product by its own. New
product development is an integrated process. It involves
not only the employees of marketing department, but also
from other departments.
NEW PRODUCT
DEVELOPMENT
 Assuming that a new product is
being developed after studying
needs and wants of target
market, in normal situations,
there are 8 steps are to be
followed as described by Philip
Kotler.
NEW PRODUCT DVELOPMENT
STAGES
STEPS IN NEW PRODUCT
DEVELOPMENT
1.IDEA GENERATION:
 A new product is the result of new
ideas. New ideas are the basic
requirement for developing new
product. Manager who wants to
develop a new product must search
for new ideas from various possible
sources. Idea generation must be
within specified limits.
IDEA GENERATION:

 Ideas must be generated in

accordance with following
factors:
 Objectives of organization
 Product definition
 Definition of market, or users
 Efforts and money
 Time available, etc.
IDEA GENERATION:

Sources of New Ideas:

 Within the stated limits, a manager should identify possible and affordable
sources for new ideas.

Most widely used internal and external sources are:

 i. Top-level management
 ii. Employees within marketing department
 iii. Sales force or salesmen
 iv. Scientists
 v. Channel members or middlemen
 vi. Competitors
 vii. Investors
 viii. Inventors
 ix. Advertising agencies
 x. Marketing research firms
 xi. Government agencies and offices
 xii. Commercial and general libraries
 xiii. Private and government consultants
 xiv. Industrial publications
 xv. Mass media, including TV, Radio, Newspapers, Internet, magazines, etc.
IDEA GENERATION:

 In the Idea generation stage, attempts are made to

generate or collect maximum number of possible
ideas.
 Idea committee, idea manager, or the person in
charge of product development should motivate
employees to submit their ideas.
 Sometimes, certain techniques are used to collect
new ideas from the people directly involved in
marketing operations.
 Such techniques involve brainstorming; attribute
mapping, need/problem identification, benefit-listing,
word association test, sentence completion test,
storytelling, and many other similar techniques.
2.IDEA SCREENING

 The second step in the new product development process
is idea screening. It is also said as scrutinizing ideas. Poor
ideas are weeded out. This step is aimed at reducing the
number of ideas. The rationale is that product development
costs rise substantially with each successive stage of
development.
 Therefore, it is advisable to concentrate on a few promising
ideas, or to drop the poor ideas as early as possible. Also,
all the ideas so generated are not equally attractive. In fact,
a company tries to materialize one or two out of highly
feasible and profitable ideas. So, it is necessary to reduce
the number of ideas so as to concentrate only on a few
promising ideas.
 For idea screening purpose, appropriate criteria (often
called standards) should be set, against which each of the
ideas can be compared to find out attractive and/or poor
IDEA SCREENING
 Various relevant criteria can be established such as:
 i. Objectives
 ii. Profitability
 iii. Gestation period
 iv. Competitiveness
 v. Resource ability of company
 vi. Location factors
 vii. Marketability
 viii. Government rules and restrictions
 ix. Social and ethical factors
 x. Personal factors
 xi. Availability of inputs.

 Each of the listed ideas is compared with these preliminary criteria. Those
ideas fail to suit the criteria are removed from the list, put aside. As a result,
only attractive ideas can be retained. While screening the ideas, there is
possibility of two types of errors, which must be avoided. First is, A DROP-error
is one in which good/promising ideas, for any reason, are dropped. The second
is, A GO-error that occurs when poor idea is permitted or selected for product
development and commercialization.
3.CONCEPT DEVELOPMENT AND
TESTING

 Now, a company has a limited number of most promising ideas. For each
of the ideas, concept is developed and tested to find out degree of
success. All attractive ideas are refined into testable concept. At this
stage, we must understand product idea, product concept, and product
image.
 Philip Kotler states that product idea is a possible product that the
company may offer to the market; product concept is an elaborated
version of the idea expressed in meaningful consumer terms; and product
image is the particular picture that consumer acquires of an actual or
potential product. The step involves three sub-steps-concept development,
concept positioning, and concept testing.

Concept Development:
 Each of the product idea is to be converted into several product concepts.
The idea is expressed in consumer terms. Consumer terms mean from the
viewpoint of consumers.

Product concept may be expressed as:

 i. Users of the product
 ii. Possible uses of the product
CONCEPT DEVELOPMENT AND
TESTING

Concept Positioning:
Some companies go beyond mere concept
development. They try to position the
product concept against the competitors to
find out how strongly the product stands in
relation to existing competitive products. It
is called product concept positioning. On the
basis of product positioning, product
positioning map or brand positioning map
can be prepared to see the current position
of the proposed product.
CONCEPT DEVELOPMENT AND
TESTING

Concept Testing:
 As per Philip Kotler, concept testing calls for testing
product concept with an appropriate group of target
consumers, then getting those consumers’ reactions. At
this stage of development, we have only picture, symbol,
sketch, or description of product. However, a computer-
aided design or picture can make a strong sense.

 The use of virtual reality may help consumers to perceive

the reality. In some cases, simple, less costly, and image
reflective plastic or clay based models of the proposed
product are prepared to get more reliable views and
reactions of consumers. Target consumers are described
the product or shown pictures to get their opinion.
A company tries to test following aspects to measure consumers’ views and
reactions:

i. Communicability: is the product concept conveying any meaning? It measures an

ability of product concept to communicate the meaning to consumers.
ii. Believability: Do they believe that product is possible?
iii. Need Level: Can they see product as filling needs?
iv. Gap Level: Do they perceive the real gap between an existing product and a new
product?
v. Perceived Value: Do they believe that price is reasonable in relation to the value
(utility) of product?
vi. Purchase Intention: Are they going to buy a new product?
vii. User Target: Who will use the product?
viii. Purchase Frequency: When and how often will the product be bought?

Concept testing can be applied to any good or service. It provides valuable and
meaningful information about possibility of success of the proposed product. Mark
that consumers are the best judges who cannot be challenged. Only when product
concept testing produces a favourable response or result, further process is carried
on ; otherwise the company drops the plan of developing a new product.
4.MARKETING STRATEGY
DEVELOPMENT

 When market testing produces favourable results, marketing

manager moves to formulate marketing strategy for the proposed
product. Remember that the company has, so far, not developed any
product, but it is moving toward developing a new product.

 What strategy will be used if the product is to be launched?

Some companies do not follow this step at this level of development,
but after development of product. The manager develops a
preliminary marketing strategy statement for introducing a new
product into the market. Marketing strategy is further refined in
subsequent stage.

Marketing strategy statement includes three sub-steps, such

as:
 a. Target Market Determination
 b. Designing Marketing Mix
 c. Preparing long-term Plan
Target Market Determination:

This step describes the target market.

Main points include:
i. Definition of target market
ii. Detail about target market’s size, structure, and behaviour
iii. The plan for product positioning
iv. The sales, market share, and profit goals
Designing Marketing Mix:
The second part of marketing strategy outlines various strategies on product,
price, promotion, and distribution for the initial stage. Thus, marketing
strategy for the first year is prepared.
Preparing Long-term Plan:
The third step of marketing strategy statement describes a long- term plan for
the product. It involves long-term sales and profit plans, and marketing mix
strategies over time. It contains the company’s plan for different stages of
product life cycle. Note that this is not the final and complete strategy for the
product. The strategy formulated is taken as a base for the future. At the time
of launching a product in the market, a lot of changes are necessarily made.
5.BUSINESS ANALYSIS

In this stage of a new product development

process, the manager tries to measure the
business attractiveness of the proposal.
Attempts are made to know what extent a
proposed product is economically viable.
The proposed product is checked with
reference to overall business environment. It
simply means measuring the ability of
product to meet company’s objectives (wants
satisfying capacity and profitability aspects).
This step calls for following aspects:
 Estimating Sales: It is also known as sales forecasting. On the
basis of sales history and current performance of similar types of
products, or on the basis of expert opinion and preliminary
consumer survey, the rough estimate of sales can be made. By this
way, one can arrive at minimum and maximum sales to learn about
range of risk.
 Estimating Costs:
Manager estimates total costs to find out cost per unit and profit
margin. Practically, the person having adequate knowledge
regarding the costing estimates costs.
 Determining Selling Price and Profit Margin:
On the basis of estimated sales and total costs, per unit cost can
be calculated. Adding the desired per cent of profit on total costs,
total sales revenue can be estimated for each of the proposals.
Dividing sales revenue by number of sales units, per unit selling
price can be arrived at.
 Evaluation of Product(s):
On the basis of above steps, now it is easy to find out feasibility of
the proposed products.

 When we want to select one product from the two or more products,
profitability of different proposals can be compared to find out the
most attractive one.

 Along with profitability, other important variables should also be

considered. If one has year-wise costs and sales data, the cash flow
can be calculated; it can be used for evaluating the proposals.

 Various methods are used for evaluation purpose, such as Pay Back
Period, Internal Rate of Return, Accounting Rate of Return, Present or
Net Present Value, Profitability Index, Break-Even Analysis, and so
forth. Nowadays, the use of computer and computer-based techniques
is very common for the purpose. The product which is the most
attractive in all the significant aspects is selected.
 6.PRODUCT
DEVELOPMENT
 Only when business analysis shows positive results, the company will move further in developing a new
product for the selected proposal. This step calls for a heavy investment. Product development involves
product design and testing.
 Company’s research and development wing, marketing department, new product development officer,
production department, outside experts, and others start their work for development of a new product.
High degree of coordination and integration among these people plays a decisive role for successful
development of a new product. This is the stage when new product idea may be translated into
technically and commercial feasible product.
 A company will not directly jump into mass production, but it concentrates on preparing a prototype
(model) of the new product. Successful development of prototype takes long or short time depending
upon the type of product.

 The prototype must satisfy following three conditions:

 i. Attributes must be similar as described in product concept.
 ii. It must perform safely and smoothly under normal conditions.
 iii. It must be prepared within budgeted amount.
 At the time of development of a prototype, functional as well as psychological characteristics should be
considered. Colour, size, weight, status, image, physical clues, etc., must be given due attention.

 When the prototype is ready, it must undergo two types of tests:

 i. Functional Test:
 It tests whether the prototype functions safely and effectively under normal uses and conditions.
 ii. Consumer Test:
 Consumers are invited to laboratory to use or try the product. They are given samples to use at home.
This test measures whether the consumers perceive the prototype as useful and beneficial.
 7.MARKET TESTING
 If the prototype satisfies all expectations, a company proceeds further in new product development process. It is
worth noted that many companies do not prefer market testing. They directly jump into the commercialization. But,
it is advisable, even sometimes, indispensable to measure consumers’ and dealers’ reactions in handling, using,
and repurchasing product. Product is dressed-up (wrapped with packing), and branding procedure is completed for
testing it in more authentic consumer market.
Market testing can be defined as:
 An attempt to try the entire marketing programme for the first time in a limited number of well-selected markets,
test cities or different areas. This helps in testing viability of full marketing programme for regional and national
market. A product is launched in a limited scale under normal market conditions to test consumers’ reactions. Thus,
market testing essentially determines effectiveness of all the key aspects of marketing programme.

Type of Information:

 Market testing produces valuable information.

It reflects:
 i. Reactions of consumers and dealers
 ii. More reliable demand forecasting
 iii. Measuring market share and size of market
 iv. Effectiveness of (elements of) marketing mix
 v. Whether brand, colour, packing, and labeling are appropriate
 vi. Pre-testing of alternative plan(s)
 vii. Information regarding trial, first time purchase, repeat purchase, and frequency of buying
 viii. Competitive strength of the product.

Methods of Market Testing:

 Various methods are used for market testing purpose. Methods are different for consumer products and industrial
products. Some popular methods for consumer products are sales-wave method, stimulated store techniques,
controlled market testing, test market, etc., while trade show, distributor and dealer display room, product use test,
etc., are used for industrial products. A company can select appropriate method depending upon the situation.
Important Decisions: Market testing involves a lot of vital
decisions.
Normally following decisions are more relevant:
 i. Purpose: For what purpose, market testing is
undertaken.
 ii. Costs: Amount of money to be spent for market testing.
 iii. Place: The region or state to be tested.
 iv. Type of cities: Type of cities to be tested.
 v. Numbers of cities: Number of cities to be tested.
 vi. Timing: The time or season during which to test the
product.
 vii. Duration: The length of time for the test.
 viii. Actions: Type of actions to be taken after market
testing.
 8.COMMERCIALISATION
 This is the stage of large-scale production and full-fledged marketing. This step is
followed only if test marketing produces promising/desirable results. Now, the
company makes necessary arrangement for mass scale production and full-
fledged marketing.

Commercialization calls for two sub-steps:

 Production:
Company prepares a plan for large-scale production. It makes necessary
provisions for raw materials, working capital, labour, and other inputs. Minor and
major problems related to production are mastered at the earliest possible.
Packaging, branding, labeling, trademark, and similar activities are carried out.
When full-fledged production starts, finished products are stored in warehouses for
sell. In short, products are ready to be marketed or distributed to the consumers.
 Marketing:
Marketing of products is an essential part of commercialization. Products are
now launched in the market. The company undergoes a lot of procedures for
systematic marketing of the product. The contracts are made with middlemen,
terms and conditions are decided, and a system for smooth distribution is
developed. Similarly, promotion and pricing strategies are formulated for
introducing a new product in desired segments of the market.
PRODUCT MIX
 Productmix, also known as product
assortment, refers to the total number of
product lines a company offers to its
customers.

 The product mix has four dimensions:

Breadth, Length, Depth, and Consistency.
The Breadth of a product mix shows the
different kinds of product lines that firm
carries. Simply, it shows the number of
items in the product line.
ITC PRODUCT MIX

 Forexample, the product lines of ITC

are FMCG, Hotels, Paper Board and
Packaging, Agribusiness.
ITC PRODUCT MIX
PRODUCT MIX
DECISIONS
 Product mix width: The width is all
about the number of different product
lines the company carries.
 Product mix length: It refers to the
total number of items a company carries
within the product lines. For instance,
Colgate carries several different brands
within each line. In Colgate’s oral care
product line, several different categories
of toothpastes can be identified.
 Product mix depth: It refers to the
number of versions offered for each
product in the product line.
 For instance, Colgate toothpastes
come in several tastes and
variations.
 The consistency of a product mix refers to how
closely related the product lines are in terms of
end use, production requirements, distribution
channels or any other way.
 In Colgate’s case, there exists a rather strong
consistency, which is based on the fact that all
product lines constitute consumer products and
go through the same distribution channels.
 The vehicle manufacturer also has a relatively
consistent product mix, if both product lines
contain consumer-vehicles, can be sold in the
same way etc.
PRODUCT LIFE
CYCLE(PLC)
 Theterm ‘Product Life Cycle’(PLC)
can be defined by Philip Kotler as :
The product life cycle is an
attempt to recognize distinct
stages in sales history of the
product.
PLC GRAPH
STAGES OF PLC
 An industry passes through a number of phases beginning with introduction,
followed by growth, maturity and then finally decline phase.

 The PLC theory believes that the industry growth follows an ‘S shaped curve’
because of the process of innovation and diffusion of a new product.

 1. The introduction phase – This is usually characterised by a flat curve

reflecting the difficulty of overcoming the buyer’s inertia. And their initial denial
to buy the product.
 2. Then product enters rapid growth phase, once the product has been
accepted by the buyers. This is growth phase.
 3. This rapid growth phase enters a plateau, once the product reaches the
current potential market. This is the maturity phase.
 4. In the final stage the PLC tapers off as the demand for the product keeps on
declining due to the entry of new substitutes. This is decline phase.

 The product life cycle is an extremely important concept in marketing. It

describes the stages a product passes through from when it was first thought of,
till it is finally removed from the market. Not all products reach these defined
stages. In fact, some products continue to grow while other products rise and fall.
PLC STAGES AND
STRATEGIES
BRAND

A brand is a specific term that may

include a name, sign, symbol, design
or a com­bination of these, with an
intention to identify goods or
services of a particular seller.
 Branding helps to develop customer
loyalty and it is advertised by sellers
under their own name. A good brand
develops a corporate image. Usually
customers prefer brands as they can
BRANDS
BRAND EQUITY

 Brand equity is important for not

only increase market share along
with increasing its valuation in the
marketplace. Increases market
share: Good brand equity results in
loyal customers who prefer one
brand over the other and increases
its market share.
COMPONENTS OF BRAND
EQUITY
Elements & Components of Brand Equity
Brand equity is a function of several other qualitative parameters
which a customer can associate with a brand.
Some of the main components or elements of brand equity are as
follows:

1.Brand Image
2.Brand Identity
3.Brand Awareness
4.Brand Loyalty
5.Brand Association
6.Customer Perception

Since brand equity gives a qualitative outlook, it is quite complicated to

define it through numbers or a value.
PACKAGING

A ‘Package‘ is nothing but a

container in which things are packed.
 ‘Packing‘ is the process of covering
or wrapping goods into a package.
 ‘Packaging‘ is the process of
designing or producing the container
itself.
FUNCTIONS OF
PACKAGING
 1. To protect the contents from getting spoiled or damaged.
 2. To allow easy handling of certain bulky goods like rice, wheat,
sugar, etc.
 3. To facilitate transportation of goods to different places.
 4. To facilitate storage of goods in warehouses. Packed goods can
be easily placed in a warehouse.
 5. To prevent loss of goods due to evaporation, pilferage and so
on.
 6. To provide space for giving details of the goods like price,
quantity, date of manufacturing, etc.
 7. To allow space also for pasting label.
 8. To provide scope for reuse. Bottles, for example, can be reused.
 9. To facilitate self-service.
 10. To enable the buyer to stock and use certain goods over a
longer period of time.
 According to Philip Kotler, protection, convenience and economy
are the three important purposes served by package.
LABELING

A label is a slip of paper pasted on the package

and/or on the product giving the following details:
 1. The nature of the product,
 2. The manufacturer,
 3. The date of manufacture,
 4. The date of expiry (in some cases),
 5. The ingredients used (in some cases),
 6. The price (the MRP — Maximum Retail Price)
and
 7. The taxes as applicable.
 A label is essentially a medium through which the
manufacturer gives necessary information to the
consumer.
IMPORTANCE OF
LABELING
 1. It is informative.
 2. It enables the buyer to satisfy himself about
the quality of the goods he buys.
 3. It enables the manufacturer to give all the
necessary information, as may be necessary, to
the buyer.
 4. It helps to avoid price variations in the market
for the product, as the price is mentioned on it.
 5. It helps to prevent false claims for the product
by the manufacturer.
 6. It also helps as a medium of advertisement.
 7. It also helps to comply with legal requirements.
PROMOTION MIX
 The Promotion Mix refers to the blend of
several promotional tools used by the business
to create, maintain and increase the demand
for goods and services.
 It focuses on creating the awareness and
persuading the customers to initiate the
purchase. The several tools that facilitate the
promotion objective of a firm are collectively
known as the Promotion Mix.
 The Promotion Mix is the integration of
Advertising, Personal Selling, Sales Promotion,
Public Relations and Direct Marketing.
PROMOTION MIX

 Advertising
 Personal Selling
 Sales Promotion
 Public Relations
 Direct Marketing
PROMOTION MIX
 Advertising: The advertising is any paid form
of non-personal presentation and promotion of
goods and services by the identified sponsor in
the exchange of a fee. Through advertising, the
marketer tries to build a pull strategy; wherein
the customer is instigated to try the product at
least once. The complete information along
with the attractive graphics of the product or
service can be shown to the customers that
grab their attention and influences the
purchase decision.
PROMOTION MIX
 Personal Selling: This is one of the
traditional forms of promotional tool
wherein the salesman interacts with
the customer directly by visiting
them. It is a face to face interaction
between the company representative
and the customer with the objective
to influence the customer to purchase
the product or services.
PROMOTION MIX
 Sales Promotion: The sales promotion is the
short term incentives given to the customers
to have an increased sale for a given period.
Generally, the sales promotion schemes are
floated in the market at the time of festivals
or the end of the season. Discounts, Coupons,
Payback offers, Freebies, etc. are some of the
sales promotion schemes.With the sales
promotion, the company focuses on the
increased short-term profits, by attracting
both the existing and the new customers.
PROMOTION MIX
 Public Relations: The marketers try to build a favourable
image in the market by creating relations with the general
public. The companies carry out several public relations
campaigns with the objective to have a support of all the
people associated with it either directly or indirectly.The
public comprises of the customers, employees, suppliers,
distributors, shareholders, government and the society as a
whole. The publicity is one of the form of public relations
that the company may use with the intention to bring
newsworthy information to the public.
 E.g. Large Corporates such as Dabur, L&T, Tata Consultancy,
Bharti Enterprises, Services, Unitech and PSU’s such as
Indian Oil, GAIL, and NTPC have joined hands with
Government to clean up their surroundings, build toilets and
support the Swachh Bharat Mission.
PROMOTION MIX
 Direct Marketing:
With the intent of technology, companies
reach customers directly without any
intermediaries or any paid medium. The e-
mails, text messages, Fax, are some of the tools
of direct marketing. The companies can send
emails and messages to the customers if they
need to be informed about the new offerings or
the sales promotion schemes.
E.g. The Shopperstop send SMS to its
members informing about the season end sales
and extra benefits to the golden card holders.
IMPORTANCE OF
PROMOTION:
Promoting the brand will in many
different ways:
 Increase brand awareness
 Provide appropriate information
 Increase Customer Traffic
 Build sales and profits
 Not only these but promotions will
also help your company to introduce
products easily in the ever-so-
competitive market.