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Promotion

The document discusses the promotion element of the marketing mix, emphasizing the importance of a well-coordinated promotion mix to create awareness and drive sales. It outlines various promotional tools including advertising, personal selling, sales promotion, public relations, publicity, and direct marketing, each with distinct characteristics and purposes. Additionally, it provides steps for developing an effective promotional mix tailored to a target audience and specific goals.

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Manas Kejriwal
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0% found this document useful (0 votes)
14 views27 pages

Promotion

The document discusses the promotion element of the marketing mix, emphasizing the importance of a well-coordinated promotion mix to create awareness and drive sales. It outlines various promotional tools including advertising, personal selling, sales promotion, public relations, publicity, and direct marketing, each with distinct characteristics and purposes. Additionally, it provides steps for developing an effective promotional mix tailored to a target audience and specific goals.

Uploaded by

Manas Kejriwal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Dr.

Pawan Kumar
• The fourth element of the 4 P’s of Marketing Mix is
the promotion; that 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.
Introduction
• Promotion is coordination of all seller initiated efforts
to setup channels of information and presentation to
sell goods and services or to sell an idea or promote an
idea.
• The organization’s communication with the market
takes place with a carefully planned and controlled
promotional program.
• Promotion mix is a dynamic concept and need to be
reviewed from time to time. Necessary modification
and improvement should be made in promotion mix in
view of the changes in the environment of business.
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.
• The marketers need to view the
following questions in order to have a
balanced blend of these promotional
tools.
• What is the most effective way to inform
the customers?
• Which marketing methods to be used?
• To whom the promotion efforts be
directed?
• What is the marketing budget? How is it
to be allocated to the promotional tools?
Why is using a promotion mix important?

• Improves the effectiveness of promotional


campaigns
• Helps segment the audience
• Improves communication with clients
• Informs subscribers
• Stands out from the crowd
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.
Characteristics of advertising
i. Adverting is non-personal or mass communication. Personal
contact is not possible.
ii. It is a paid form of communication.
iii. It is a one-way communication.
iv. Identifiable entity/sponsor-company or person gives advertising.
v. It is costly option to promote the sales.
vi. It can be reproduced frequently as per need.
vii. Per contact cost is the lowest.
viii. Various audio-visual, print, and outdoor media can be used for
advertising purpose.
ix. It is a widely used and highly popular tool of market promotion.
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.
Characteristics of Personal
i.Selling
Personal selling is an oral, face-to-face, and
personal presentation with consumers.
ii. Basic purpose is to promote products or
increase sales.
iii. It involves two-way communication.
iv. Immediate feedback can be measured.
v. It is an ability of salesmen to persuade or
influence buyers.
vi. It is more flexible way of market
communication.
vii. Per contact cost is higher than
advertising.
viii. It involves teaching, educating, and
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.
Characteristics of sales
promotion

i. The primary purpose of sales promotion is to induce customers


for immediate buying or dealer effectiveness or both.
ii. Excessive use of sale promotion may affect sales and reputation
of a company adversely.
iii. It is taken as supplementary to advertising and personal selling
efforts.
iv. It involves all the promotional efforts other than advertising,
personal selling, and publicity.
v. It consists of short-term incentives, schemes, or plans offered to
buyers, salesmen, and/ or dealers.
vi. It involves non-routine selling efforts.
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.
Characteristic of Public
Relation
i. Public relations is a paid form of market promotion. Company has to
incur expenses.
ii. Public relations activities are designed to build and maintain a
favourable image for an organisation and a favourable relationship with
the organization’s various publics.
iii. It is an integral part of managerial function. Many companies operate a
special department for the purpose, known as the public relations
department.
iv. It involves a number of interactions, such as contacting, inviting,
informing, clarifying, responding, interpreting, dealing, transacting, and
so forth.
v. Public relations covers a number of publics – formal and informal
groups. These publics may be customers, stockholders, employees,
unions, environmentalists, the government, people of local community, or
some other groups in society.
vi. Public relations activities are undertaken continuously. It is a part of
routine activities.
vii. All the officials, from top level to supervisory level, perform public
relations activities.
viii. In relation to modern management practices, the public relations is
treated as the profession.
Publicity:

• Publicity is also a way of mass communication. It is not a paid


form of mass communication that involves getting favourable
response of buyers by placing commercially significant news
in mass media.
• William J. Stanton defines: “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.”
• It is the traditional form of public relations. Publicity is not
paid for by the organisation. Publicity comes from reporters,
columnists, and journalists. It can be considered as a part of
public relations. Publicity involves giving public speeches,
giving interviews, conducting seminars, charitable donations,
inauguration by film actor, cricketer, politician or popular
personalities, stage show, etc., that attract mass media to
publish the news about them.
Main characteristic of
publicity
company’s offers uponinclude:
i. Publicity involves obtaining favourable presentation about company
or radio, television, or stage that is not paid for
by the sponsor.
ii. It is a non-paid form of market promotion. However, several
indirect costs are involved in publicity.
iii. It may include promotion of new product, pollution control efforts,
special achievements of employees, publicizing new policies, etc., for
increasing sales. It is primarily concerns with publishing or
highlighting company’s activities and products. It is targeted to build
company’s image.
iv. Mostly, publicity can be carried via newspapers, magazines, radio
or television.
v. Company has no control over publicity in terms of message, time,
frequency, information, and medium.
vi. It has a high degree of credibility. Publicity message is more likely
to be read and reacted by audience.
vii. Publicity can be done at a much lower cost than advertising.
Company needs to spend a little amount to get the event or activity
publicized.
viii. Frequency or repetition of publicity in mass media depends upon
its social significance or the values for news. Mostly, it appears only
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.
How to Develop an Effective Promotional Mix
for Your Company

1. Consider Your Target Audience


• First, create a detailed buyer persona for your ideal
customer. Without a clear picture of who you’re
trying to reach, you’ll waste time, effort, and money
marketing to the wrong audience in the wrong
channel.
2. Establish Clear Promotional Goals

• Next, you’ll identify clear goals for your


promotional efforts. Your goals act as a guide for
every decision relating to your promotional mix
elements. Once you know where you want to go, it’s
easier to create your marketing plan to help you get
there.
3. Create a Promotional Budget

• Next, know how much you can afford to spend on


promotional mix elements. Different activities and
channels can vary widely in costs, so it’s important
to avoid overcommitting yourself and your
organization.
. 4. Choose Your Channels

Next, where will you deliver your message? Where is your


target audience? The promotional mix elements and
channels you choose can make or break your campaign, so
it’s important to keep a few rules in mind:
Go where your audience is. If your audience is on
LinkedIn, don’t market on Instagram and TikTok.
Choose channels that match your desired message and
format. For example, according to Buffer, video performs
best on Facebook, but written blog posts tend to find more
traction on Twitter.
5. Define Your Marketing Message

• The golden rule when it comes to messaging? Be


specific. Vague and generic messages are far less
likely to resonate with audiences than specific
communication is. That’s why you defined your
audience early on. Now, speak directly to them.
6. Lay Out Your Promotional Mix

• Split your budget between your chosen channels


based on how well you expect those channels to
perform.
7. Learn and Iterate on Your Plan

• Finally, put your plan into action. Measure your


success using your KPIs—did you meet your
original goals? Use what you learn to inform your
promotional mix analysis as well as your future
marketing plans.
Thank You!

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