PROMOTION

Submitted by
Jakanathan

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 PROMOTION
• Promotion keeps the product in the minds of the customer and
helps stimulate demand for the product. Promotion involves ongoing
advertising and publicity. The ongoing activities of advertising,
sales and public relations are often considered aspects of
promotions.

• The global market place consists of an increasingly complex arena

of competitors within a rapidly changing environment.

• Everything about your product communicates:

Price - Place - Product (including packaging)

• New companies are formed on a daily basis,

How can one get people to know about their
business so that it can grow?

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 ADVERTISING
• "Advertising is any paid form of non-personal presentation
and promotion of ideas, goods and services through mass
media such as newspapers, magazines, television or radio by
an identified sponsor".
- Philip Kotler and Armstrong

• "The means of providing the most persuasive possible selling

message to the right prospects at the lowest possible cost".
- Institute of Practitioners in Advertising

• Advertising is bringing a product (or service) to the attention

of potential and current customers.

• Advertising is a form of Communication!

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 Cont.,
• Advertising is focused on one particular product
or service.

• Thus, an advertising plan for one product might be

very different than that for another product.

• Advertising is typically done with signs,

brochures, commercials, direct mailings or e-mail
messages, personal contact, etc.

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 Objectives
• Paid non-personal communication through various media.

• Objective - To inform reader, listener or viewer about

Retailer
Offerings
Prices
Services

• What do you want to achieve and how will you

measure it?

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 Scope and Importance
of Advertising
• Advertisements are important for:
▫ products aimed at large markets
▫ products that have easily communicated features
▫ products low in price
▫ products sold through independent channel members
and/or are new.

• Broadcast Ad spending is at an all time high due to heavy competition in

the:
▫ Computer industry
▫ Telecommunications Industry
▫ Auto Industry

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 Nature of Advertising
• Used by many types of organizations including Universities,
Civic groups and charities, politicians, government, public,
private – Manufacturing, Trading & service sectors !!

• Need to consider the following issues:

▫ Does the product possess unique, important features
to focus on Unique Selling Point (USP)
▫ Are the hidden qualities important to the buyers
▫ Is the general demand trend for the product adequate
▫ Is the market potential for the product adequate
▫ Is the competitive environment favorable
▫ Is the organization able and willing to spend the
required money to launch an advertising campaign

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BENEFITS OF ADVERTISING
• Advertisements create awareness, interest and desire for
products and services in customers to buy them.

• Advertising is cost efficient as advertisements can reach a

vast number of audiences simultaneously.

• The message can be repeated several times It helps in

boosting the sales of the company. 

• It supports the activities of the distribution network of the

firm by creating demand and encouraging purchase through pull
strategy.

• It helps in making the job of the sales force easier, by crating

awareness among potential customers.

• Advertisements also help in building a strong image of a

product or brand, apart from increasing its sales. 
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 DAGMAR
• DAGMAR was put forward by Russell H. Colley in his book
titled
“ Defining Advertising Goals for Measured Advertising
Results “ in 1961
under the sponsorship of Association of National
Advertisers. The term DAGMAR corresponds with the
abbreviation of the title .

• DAGMAR views advertising has to perform a

Communication task and not a Sales task, therefore
advertising goal should be separate and specific, should
be written, a defined audience and a specific time
period.

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 Cont.,
• In the DAGMAR approach, the communication
task is based on a specific model of the
communication process which is also referred to
as Hierarchy of Effects Model

Hierarchy of Effects Model

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The Five M’s of
Advertising

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Major Decisions in
Advertising

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 DEVELOPING AN
ADVERTISING PROGRAM
• There are five main stages in a well-managed advertising campaign.
• From companies point of view : Steps involved in an advertisement program
can be classified as,
(a) Identifying the target audience
(b) Specifying advertising objectives
(c) Setting the advertising budget
(d) Developing the advertising message
(e) Selecting the right media
(f) Scheduling the advertisement and
(g) Measuring advertising effectiveness. 

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 Identifying the target
audience
• Identify the Target Audience :
Marketers must gather information on the
geographic location, demographic variables (like age, sex,
education, income level etc.) and consumer attitude towards
the company products and competitor products.

• Local or Global audiences – Mass or niche Market

• For instance, an advertisement of Amrutanjan pain balm is

targeted at the mass market, while the advertisement of
Mercedes Benz is targeted at a niche market of status
conscious, high income group customers. 

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For Local Audience

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For Global Audiences

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 Specifying advertising
objectives
• “The objective of an advertising campaign is to achieve a
specific communication task for a specific target audience
during a specified period of time.”

• The objective should be laid down in clear, precise and

measurable terms.

• An advertising campaign can have different objectives and

they are:
Inform - Persuade - Remind 

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 Setting the
advertising budget
• It is influenced by various factors like the type of products
advertised, the size of the market, the geographic
distribution of customers within the market and the sales
volume as compared to the competitor's sales volume.

• Some common methods followed by firms are ,

(1) Objective and task method
(2) Percentage of sales method
(3) Affordability method and
(4) Competitive parity method. 

• Depends on affordability Keep in mind that budget

could have a direct effect on results.
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 Developing the
advertising message
• A successful advertising message should have the following characteristics :
Creditable - Meaningful - Distinctive – Believable – Achievable – Creative –
Noticeable - Relevant

• Approaches to creating advertising messages :

Comparative advertising
Inoculate advertising
Refutation advertising
Emotional advertising 

• Message Structure One side - Two side  

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 Selecting the right
media
• Who should be reached?
• Where are they located?
• Which media is appropriate?
• When do we run the advertising campaign? 

• You have a wide choice of media vehicles each with it’s own
advantages and shortcomings.

• Media analysis
"An investigation into the relative effectiveness and the
relative costs of using the various advertising media in an
advertising campaign"

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 Cont.,
• A useful distinction can be made between “published media”
and “visual/aural media”.

• Published or print media include:

National daily newspapers
Sunday newspapers
Local and regional newspapers
Consumer magazines
Specialist magazines
Trade and professional press
Internet
• Visual and aural media include:
Television (terrestrial and digital)
Radio
Cinema
Billboards (Out door)
Transport
Direct mailing
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Profile of major advertising mediums
Newspapers Flexibility; timeliness; good
local market coverage; broad
acceptance; high believability
Television Combines sight, sound and
motion; appealing to the
senses; high attention; high
reach.
Direct mail Audience selectivity, flexibility, no ad
competition within the same medium,
personalization.
Radio Mass use, high geographical
and demographic selectivity;
low cost.
Magazines High geographical and
demographic selectivity;
credibility and prestige; high
quality reproduction, long life;
good pass-along readership.
Outdoor Flexibility; high repeat
exposure; low cost; low
competition.
Broachers Flexibility; full control; can
dramatize message.
Short life; poor reproduction
quality;
small pass along audience
High absolute cost, high clutter,
fleeting
exposure, less audience selectivity
Relatively high cost, junk mail image.
Audio presentations only; lower
attention than television; non
standardized rate structure;
fleeting
exposure.
Long ad purchase lead time; some
waste
circulation; no guarantee of position
Limited audience selectivity;
creative
limitation.
Overproduction could lead to26
run
away
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 Scheduling the
advertisement
• The firm can vary the advertising to follow the seasonal
pattern, to oppose the seasonal pattern, or to be same for
the year.

• Scheduling pattern :
Continuity – scheduling Ads evenly within the given period.
Pulsing - scheduling Ads unevenly over a given time.

• Thus 52-Ads, could either be scheduled at 1/week during

the year or pulsed in several Burst.

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• seasonal

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 Measuring advertising
effectiveness
• Advertising program should evaluate both communication
effects and sales effects of advertisement, regularly.

• Communication effects – Can be measured by Copy testing, it is

taken before and after the Advertisement.
Before - change of attitude of consumers.
After - Product awareness, preferences of consumers.

• Sales effects are calculated by comparing past sales (with past

AD expenditure) or by testing the effects of different
advertising spending levels
ex. Coca cola

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 DEVELOPING AN
ADVERTISING PROGRAM
• From recipient point of view
a) Exposure
b) Processing by the recipient
c) Communication effect (The recipient
forms an opinion about a brand)
d) Target Audience Action (An action
of trial, purchase, etc. by the buyer)
e) Sales/market share
f) Profit

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Categories of Advertising
• Public Awareness Advertising
• Product Advertising- 3 Types
• Consumer Advertising
• Industrial Product Advertising
• Service Advertising
• Corporate Advertising
• Public Relation Advertising
• Public Service Advertising
• Financial Advertising
• Global Advertising
• Internationalizing of Advertising
• Institutional Advertising
• Cause Advertising
• Celebrity Advertising
• Cause Advertising 41
 Public Awareness Advertising
Public Awareness
Advertising

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Pioneering – Product AD

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Competitive - product AD

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Comparative - product AD

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Industrial Product Advertising

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Consumer Advertising

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Corporate Advertising

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Institutional Advertising

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Public Relational Advertising

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Service Advertising

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Financial Advertising

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Competitive Advertising

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Global Advertisement

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Internationalizing Advertising

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Celebrity Advertising

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 Sales promotion
• Short term incentives to encourage the
purchase or sale of a product or service.

• Sales promotion include tools for consumer

promotion, trade promotion and business
and sales force promotion.

• Now ,it is part of the Marketing spend of

all companies and these days SP spends in
many companies exceed that of the
advertisements spends.

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 Objectives
• Speeding the sales process and
increasing the sales volume.
• Building product awareness.
• Creating interest.
• Providing information.
• Reinforcing the brand.

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Tools of sales promotion
• Consumer promotion tools
• Trade promotion tools
• Business promotion tools

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 Consumer promotion tools
Coupon
certificate that gives buyers a saving when they
purchase a specified product.

Sample
A small amount of a product offer to customers for
trial.

Cash refund offer (rebate)

Offer to refund the part of the purchase price of the
product to consume send a “ proof of purchase “ to the
manufacturer.

Price pack (cents – off - deal)

Reduced price that is marked by the producer directly
on the label or package.

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 Cont.,
• Advertising capacity
Useful article imprinted with an advertiser’s name, given as a gift to
consumers.

• Patronage reward
Cash or other award for the regular use of certain company’s
products or services.

• Point – of – purchase (POP) promotion

Display and the demonstration that takes place at the point of
purchase or sale.

• Contents, Sweepstakes, Games

Promotional events that give the consumer the chance to win
something – such as cash, trips or goods – by luck or through extra
effort.

• Premium
Good offered either free or at low cost as an
incentive to buy a product.

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• coupon

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 Trade promotion tools
• Discount
A straight reduction in price on
purchases during a stated period of time.

• Allowance
Promotional money paid by
manufacturers to retails in return for an
agreement to feature the manufacturer’s
product in some way.

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Business promotion tools
• Companies spend billions of dollars each
year on promotion to customers.

• This tool is used to generate business

leads, stimulate purchases, reward
customers and motivate sales people.

• Many companies and trade associations

organize the conventions and trade shows
to promote their product.

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• Ftv show

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Uses of sales promotion
• Immediate purchases
• Increase trial
• Boost consumer inventory
• Encourage repurchase
• Encourage brand switching
• Encourage brand loyalty

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 Direct marketing
• Direct marketing
Direct marketing creates a direct relationship between
the customer and the business on an individual basis.

• Many forms: Telephone marketing, direct mail, online

marketing, etc.

• Four distinctive characteristics:

– Nonpublic
– Immediate
– Customized
– Interactive

• Well-suited to highly targeted marketing efforts

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 Public Relationship

• “The planned and sustained effort to establish

and maintain goodwill and mutual understanding
between an organization and its publics”.

• Highly credible

• Many forms: news stories, news features, events

and sponsorships, etc.

• Reaches many prospects missed via other forms

of promotion

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 Public relations techniques
• There are many techniques available to influence
public opinion, some of which are more
appropriate in certain circumstances than others:
Consumer Business Internal & External Financial
communication communication communication communication
•Customer press releases • Corporate identity • In-house newsletters • Financial
• Trade press releases design and magazines media relations
• Promotional videos • Company and • Intranet • Annual report
• Consumer exhibitions product videos • Notice boards and accounts
Competitions and • Direct mailings • Employee conferences • Meetings with
prizes • Web site Email stock market
• Product launch events • Trade exhibitions •Company literature analysts, fund
•Celebrity endorsements (brochures, videos etc.) managers etc
•Web sites • Community • Shareholder
involvement programs meetings
• Trade, local, national (including the
and international media annual general
relations meeting)
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 Personal Selling
• Direct communications between paid representatives and
prospects that lead to transactions, customer satisfaction,
account development, and profitable relationships.

• Most effective tool for building buyers’ preferences,

convictions, and actions

• Personal interaction allows for feedback and adjustments

• Relationship-oriented

• Buyers are more attentive

• Sales force represents a long-term commitment

• Most expensive of the promotional tools (Paid one)

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 Cont.,
• Steps in Personal Selling Process:
- Opening a call
- Need Exploration
- Presentation
- Handling objections
- Closing the sale
- Follow-up

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 Sales management
• Controlling of personal contact programs
designed to achieve the sales and profit
objectives of the firm.

• Responsible of Sales Manager

– Achieving or exceeding the goals established
for performance in the current period
– Developing the people reporting to them

The planning, organizing, and leading

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 Positions of Personal Selling and Sales
Management in the Marketing Mix

Public Personal Sales

Advertising Internet
Relation Selling Promotion

Sales
Management

Planning Motivating
Budgeting Compensating
Recruiting and Designing territories
selecting Evaluating performance
Training 78
 THE SALES
MANAGEMENT PROCESS
1. The formulation of a sales program.
2. The implementation of the sales
program.
3. The evaluation and control of the
sales program.

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THE SALES MANAGEMENT
COMPETENCIES
• Strategic Action Competency.
• Understanding the industry
• Understanding the organization
• Taking strategic actions

• Coaching Competency.
• Providing verbal feedback
• Role modeling
• Building trust

• Team-Building Competency.
• Designing teams properly
• Creating a supportive environment
• Managing team dynamics appropriately

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 Cont.,
• Self-Management Competency.
• Integrity and ethical conduct
• Managing personal drive
• Self-awareness and development

• Global Perspective Competency.

• Cultural knowledge and sensitivity
• Global selling program

• Technology Competency.
• Understanding the productivity potential of new
technology
• Implementing sales force automation (SFA)
• Implementing customer relationship management (CRM)

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THANK YOU
FOR
LISTENING

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