Professional Documents
Culture Documents
B.Com I Year
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B.Com I Year (Management) Subject: Marketing Communication
UNIT-I
Meaning
A process by which product information is transmitted to the target audience.
Marketing communication (MC) is a collective term for all the various types of planned messages used
to build brand-advertising, public relations, sales promotion, direct marketing, personal selling,
packaging, events and sponsorships, and customer service.
Marketing Communication functions, however, have little value without media, the vehicles through
which marketing communication messages are carried to (any from) target audiences. The media that
marketers use most frequently include TV, radio, newspapers, magazines, outdoor boards, internet,
mail, and the telephone.
Building brands is the overall objective of all marketing communication as well as marketing.
Nature of Communication
Communication involves plurality of persons
Existence of message is essential which may be the orders, instructions or information about
the managerial plans, policies, programmes
It’s a two way and continuous process
Its primary purpose is to motivate a response
Communication may be formal controllable or informal uncontrollable
It can be in vertical, horizontal or diagonal
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Objective of marketing Communication
To persuade target audience
To give and receive information
To provide advice
To educate and train customer
To issue orders and instruction
To receive suggestion
Importance
1. Persuasion is one of the factors of marketing communications. Persuasion is the main reason
companies engage in marketing: to persuade their target audience to take action, as in, buy their
product or subscribe to their services, make a phone call, or donate money.
2. All marketing communication is goal oriented, as the predetermine objective helps to create
effective marketing communication strategy.
3. Every successful marketing communications helps plan the marketing message at every contact
point that are received by the target audience.
4. It facilitates in controlling the performance and take necessary remedial actions on the basis of
feedback information from them.
5. Communication creates a meeting of minds and improve industrial relations. It helps to develop
mutual co-operation and understanding thereby improving industrial productivity.
6. Communication is indispensable for every organization to develop and maintain reputation or
goodwill with its customers, investors, dealers, suppliers etc.
Process
Marketing communication is a process for planning, executing, and monitoring the brand messages that
create customer relationships. MC is about synergy (discussed below) and creativity, integration, and
communication. Although many companies have coordinated and focused their marketing
communication to a certain extent, one of the best examples of how to do MC is the story of Saturn. The
receiver is anyone who is exposed to a message. Once receiver, usually customers and prospects,
receive a message, they must decode it. Decoding is the process of interpreting what a message means.
After customers decode a message, they respond in some way, indicating to what extent the message
was received, properly decode, and persuasive. This response is called feedback, which is a response
that conveys a message back to the source.
The communication process occurs in a context or environment where other things are going on-
competitive brand message, people walking by, a telephone ringing, as well as thoughts inside
customers’ heads. These “other things” are called noise-interferences or distractions that can negatively
affect the transmission and reception of a message. Companies and their NC agencies go to grate
lengths to create brand message that have impact that are attention getting as well as memorable.
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4. Noise
(Physical and Psychological Distraction
6. Feedback-Interactivity
Immediate Response
Delayed Response
No Response
Barrier of communication
1. Physical barriers-
These are the interference that occur in the environment in which the communication taks place.
Noise means interference that occurs in a process which blocks the receiver to receive the
information and understand at the expected degree of perception
Improper timing also hinders the communication process
Physical distance or in a situation where there is scattered or too many division of audience , it
becomes difficult for the sender to check whether message is properly understood or properly
acted upon or not.
2. Language Barrier
Language problem occurs when people use either the same words in different ways or different words
in the same ways.
Variety of meaning- to avoid word seldom sender and receiver must have to understand &
choose one meaning in order to call the communication perfect.
Communication becomes even more difficult because of different cultures and classes in
globalised world. Same category of symbols, colours, phrases, actions mean different in
different culture.
Lack of clarity and precision in a message makes it badly expressed which leads to vague and
poor expression.
Un clarified assumptions which underlay in the message practically are expected to be
understood automatically by the receiver.
The sender does not specify everything in the message and receiver may presume nothing
beyond the message or may assume different things.
3. Organisational Barrier
The factors internal to the organization which adversely affect the flow of communication are called
organizational barrier
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Organisational policies, rules and regulations that are not supportive to the flow of
communication or affects the flow of communication by prescribing the subject matter and
channel to be used.
If the organisational structure is complex there may be a large number of barriers that develops.
Intermediary levels are likely to distort, withhold or stop message intended to float and
message may lose its usefulness because of delay.
Wrong choice of channel may lead to miscommunication or failure even when the message is
effectively and clearly formed.
Improper interpretation of the feedback received.
5. Personal factors
Barriers that are internal to the sender or receiver are referred as personal factors
Barrier due to resistance to change or adaptability
Lack of trust and acceptance based on past experience of the product by the receiver
Lack of ability to express and communicate desire adversely affect the feedback
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Unit II
From Keith Devis - Communication is a process of passing information and understanding from one
person to another.
From Wilbur Schramm - Communication is something people do. To understand human communication
process, one must understand how people relate to each other.
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'group of decision makers at the sponsor's company or organization. So, before an ad ever gets a
chance to persuade a real consumer, it must first persuade the sponsor's agents.
Sources of
Information Perception of Belief about
information product / brand
Direct about Product/ and important of
General attitude
experience brand this belief to the
towards product /
Group (friends, customer
brand
family)
Mass Media
Contact with
Do I need it? Is it a ‘good’ product?
other influential
Does it suit me? Should I use It?
people
APPLICABILITY IN MARKETING
Marketing Communication channels may be personal or non personal. Such channels involve two or
more persons communicating directly face to face, person-to-audience, over the telephone, or through
e-mail. Following are some of the methods used for marketing communication.
Media : It consists of print media (newspapers journals & magazines) broadcast media (Radio & TV),
network media (Telephone, cable, satellite, Wireless) electronic media (audiotape, videotape,
videodiscs, CD-ROM, Web page) & display media (Billboards, signs & posters).
Sales promotion: It consists of consumer promotions (such as samples, coupons & free gifts), trade
promotion (such as price offs or allowances) & business & sales force promotion (contests for sales
representatives).
Events & Experiences: It includes sports, arts, entertainment & cause events & less formal activities
that create novel brand interactions with consumers.
A push promotional strategy involves taking the product directly to the customer via whatever means,
ensuring the customer is aware of your brand at the point of purchase.
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Examples of push tactics
Trade show promotions to encourage retailer demand
Direct selling to customers in showrooms or face to face
Negotiation with retailers to stock your product
Efficient supply chain allowing retailers an efficient supply
Packaging design to encourage purchase
Point of sale displays
A pull strategy involves motivating customers to seek out your brand in an active process.
"Getting the customer to come to you"
Examples of pull tactics
Advertising and mass media promotion
Word of mouth referrals
Customer relationship management
Sales promotions and discounts
Market Segmentation:
Basically there are four levels of market segmentation:
(a) Segment Marketing: Here the marketer’s task is to identify the segments that share a similar set of
needs & wants & decide which one (s) to target. Even in a segment, every individual has a different set
of needs flexible market offerings to all members of a segment. One way to carve up a market is to
identify preference segments which are basically of the following three types:
(i) Homogenous preferences: Market where all the consumers have roughly the same
preferences.
(ii) Diffused preferences: Here, the consumer preferences are scattered in nature.
(iii) Deserted Preferences: Here, the market comprises of distinct preference dusters caused
natures market segments.
(b) Niche Marketing: A niche is a narrowly defined group of customers seeking a distinctive mix of
benefits. E.g. ‘ALL’ in Treasure Island Becher producing oversized umbrellas
(C) Local Marketing: Here, the marketing programs are tailored to the needs and wants of local
customer groups. eg. ICICI Bank or CITI Bank
(D) Customerization: Customerization signifies ‘segments of one’ or ‘one-to-one marketing’. E.g. Nike
offering different sized shoes in a pair or Mochi designing shoes as per the customer’s requirements
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* Regular users.
E.g. Blood banks or airlines
(d) Usage Rate: e.g. Heavy beer drinkers, moderate beer drinkers & several light users or
Working Teens, bachelors eating out very often whereas married people prefer eating mostly at home.
(e) Buyer readiness stage: A market consists of people in different stages of readiness to buy a
product. Some are unaware of the product, some are aware. Some are informed, some are interested,
some desire the product & some intend to buy.
(f) Loyalty status: Buyers can be divided into four groups according to brand loyalty status viz.
Hard core loyals
Split loyals
Shifting loyals
Switchers
(g) Attitude: Five attitude groups can be found in a market viz.
Enthusiastic
Positive
Indifferent
Negative
Hostile
4 Mmessage strategy: Designing the communications requires the three decisions to be taken which are
-
What to say (Design the communications): Determining message strategy signifies searching for
appeals, themes, ideas that will +ie into the brand positioning & help to establish points of parity or
points of difference.
How to say it (creative strategy): Creative strategies means how marketers translate their messages
into a specific communication & are classified as involving either “informational appeals” or
“transmational appeals”.
Informational Appeals: An informational appeal elaborates on product or service attributes or
benefits. E.g. In advertising, problem solution ads (No mark for a clean face & clinic all clear for fighting
dandruff).
Product comparision ads (Pepsi & Coke war).
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Transformational Appeals: Transformational Appeals elaborates on a non product related benefit or
image. E.g. Loreal “you are worth it”
Who should say it (message source): Message source can be internal to the company or it could be
unknown people also. Message delivered by attractive or popular source can potentially achieve higher
attention & recall which is why advertisers often use celebrities as spokes people. E.g. Dipika Padukone
for Fiama, Kareena Kapoor for Globus,& Sachin Tendulkar for Boost.
5 Establish the total marketing communications budget: Now comes the turn to decide on how much
to spend on communications & promotion.
Mainly there are four common methods:
(i) Affordable Method: This signifies to set the promotion budget at what the company or the brand
thinks it can afford.
(ii) Percentage of sales method: Many companies set promotion expenditure at a specified
percentage of sales (either, current or anticipated) or of the sales price.
(iii) Competitive parity method: Some companies set their promotion budget to achieve budget to
achieve share of voice parity with competitors.
(iv) Objective and task method: This method calls upon marketers to develop promotion budgets in
the following three steps:
- Define specific objectives.
- Determine the tasks to be performed to achieve these objectives. &
- The costs of performing these tasks.
COMMUNICATION MODELS
In general, we can say that the communicator offers certain cues (i.e., signals: price, packaging, colour,
brand name, store layout, design, etc. to signify the suitability of the product to the targeted customers)
with an express desire to seek a favourable response (purchase/favourable attitude/ other type of
behaviour) from them. The models that describe customer response stages are called (consumer)
response hierarchy models.
1. AIDA model: It shows that a buyer passes through the stages of attention, interest, desire and
action.
2. Hierarchy of effects model: Shows the buyer as progressing through awareness, knowledge,
liking, preference, conviction and purchase stages.
3. Innovation adoption model: shows the buyer as passing through awareness, interest,
evaluation, trial and adoption.
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Communication model shows the buyer as progressing through exposure, reception, cognitive
response, attitude, intention and behaviour. All these models assume that the buyer passes through a
cognitive, affective and a behavioural stage, in that order. This sequence is also called ‘learn (cognition),
feel (affective), and do (behaviour) sequence. This happens when the product/brand being considered,
falls in a high involvement category.
“Innovation-
Stages “AIDA” “Hierarchy-of-Effects” “Communication”
Adoption”
Model Model Model
Model
Cognitive Reception
stage
Knowledge Cognitive
response
Interest Liking Interest Attitude
Preference
Affective
stage
Trial
Behaviour
stage
Action Purchase Adoption Behaviour
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UNIT III
COMMUNICATION MIX CONCEPT
Communication mix includes the objectives of communication. communication components and
communication variables. These are interdependent. The objectives of communication are achieved by
using the components of communication and modifying the controllable variables within the given non-
controllable variables.
1. Communication Objectives – The main objective of communication is to communicate to the
target audience. It not merely informs but is persuasive and reminds of the products of the
company and its image. The communication should be motivated in such a manner that the
consumer takes the action (purchases the products).
2. Components of Communication – The components of communication are four –
a. The sender is the person pr advertiser who communicates or sends the message.
b. The message – It is a very important tool for influencing the audience or receiver. The message
may be either visual or verbal. The success of advertising depends on how well the elements of
the message are the medium in created and arranged. The word, the picture, the symbol and
other communicative elements are the bases of the message
c. The media – The media may be mass media or individual media. They are sub classified on the
basis of frequency, coverage and ownership. Advertisers use them effectively for spreading the
message. They have divided the media on the basis of time, space, participation, speed and
permanency
d. The receiver – The audience is the targeted link in the message. The receiver's nature and
attention are taken into account when designing the communication process. The demographic,
psychographic and geographic characteristics of the audience are properly evaluated by the
communicator. The feedback provided by the audience as a guide to effectiveness of
communication. There is an interrelationship between the receiver and the sender through the
media and the message.
3. Controllable Variables – Producers have to communicate facts and reality to the receiver.
Deceptive and false advertisements may damage the image of the product and the company. It may
contain some criticism which is very useful for product design, reasonable pricing, effective
communication and distribution. Information on quality, product line, price level and distribution is
communicated to the receiver or audience.
4. Uncontrollable Variables – The uncontrollable variables such as environment, market situation,
technology and competition have a long-lasting impact on the components of communication.
Environment has a long-lasting impact on advertising and communication. It includes social, legal,
economic and political factors.
5. Hierarchy of Communication Effects – The communication process has some effects on the
receivers which may be Classified as low level, middle-level and high-level effects. The low-level
effects are observed when the difference between the competing brands is the least. The middle-
level effects are observed when product choice or alternative choice is not known to the receiver or
audience
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Audience Mass customers Mass (customers, Small (one/few) Mass
employees,
shareholders)
Message Uniform (same Uniform for one Specific to each Generally same
for all) category of customer
audience
Cost Low per audience No/low cost High per Depends on sales
customer promotion
scheme
Sponsor Company No sponsor Company Company
Flexibility in Low (since Low (for same Very high (since Low (since
communication message can’t be reason) each audience usually only one
changed to suit bears what he scheme is run for
the listener) wants to) promotion)
Control over Very high None Very high Very high
Content of
Message
Placement None High Very high
(where&
when would it
appear)
Credibility (i.e., Moderate High Moderate Low
do customers
believe it)
Major examples TV ad for Newspaper Mill’s showroom A discount offer
suiting’s article about this selling this on his suiting
suiting company suiting
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UNIT-IV
Meaning and definition - Personal selling is a promotional method in which one party (e.g.,
salesperson) uses skills and techniques for building personal relationships with another party (e.g.,
those involved in a purchase decision) that results in both parties obtaining value. In most cases the
“value” for the salesperson is realized through the financial rewards of the sale while the customer’s
“value” is realized from the benefits obtained by consuming the product. However, getting a customer
to purchase a product is not always the objective of personal selling. For instance, selling may be used
for the purpose of simply delivering information.
Prof.N.D Syriac Defines - Personal selling involves oral conversations, either by telephone or face-to-
face, between salespersons and prospective customers.
Personal selling is a personal presentation for the purpose of making sales and building relationships.
The key to personal selling today is to create relationship marketing
Relationship marketing is the idea of creating a long term relationship between the customer and the
business, in order to provide the customer with satisfaction and a lack of buyer’s remorse, and to leave
the business with a future long-term customer and possibly attract new ones
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Likability is rooted in each party's perception of "having something in common" with the other.
This is an emotional factor, yet a powerful force in buyer and seller relationships.
Missionary Salespeople Distribute information regarding new goods or services, describes attributes
and leaves materials, does not close sales. Assist producers' customers in selling to their own
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customers. IE call on retailers and persuade them to carry the product. Pharmaceuticals may go to
doctors offices and persuade them to carry their products.
Trade Salespeople May perform order taking function as well. Spend much time helping customers,
especially retail stores, to promote the product. Restock the shelves, set up displays. Technical
Salespersons Offer technical assistance to current customers. Usually trained engineers etc.
Service Salespeople interacts with customers after sale is complete.
Team selling...entire team of selling professionals in selling to and servicing major customers,
especially when specialized knowledge is needed to satisfy different interests in customers' buying
centers.
Preapproach
(Precall Planning)
Approach
Trial Close
Determine Objections
Meet Objections
Trial Close
Close
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POPULAR PROSPECTING METHODS
1. Cold canvassing 7. Telephone and telemarketing
2. Endless chain – customer referral 8. Prospect lists
3. Public exhibitions and demonstrations 9. Observation
4. Orphaned customers 10. Get published
5. Direct mail 11. Networking
6. Sales lead clubs 12. Center of influence
2) PreApproach: Making First Contact - This is the preparation that a salesperson goes through
before they meet with the client, for example via e-mail, telephone or letter. Preparation will make a call
more focused.
Make sure that you are on time.
Before meeting with the client, set some objectives for the sales call. What is the purpose
of the call? What outcome is desirable before you leave?
Make sure that you've done some homework before meeting your prospect. This will
show that you are committed in the eyes of your customer.
To save time, send some information before you visit. This will wet the prospect's
appetite.
Keep a set of samples at hand, and make sure that they are in very good condition.
Within the first minute or two, state the purpose of your call so that time with the client
is maximized, and also to demonstrate to the client that your are not wasting his or her
time.
Humour is fine, but tries to be sincere and friendly.
Preapproach is planning the sales presentation to meet the customer’s wants or to solve the customer’s
problem. This involves gathering research about the prospect. The salesperson must determine where
the specific target market consumer is in the purchasing process. In the approach, the salesperson
meets and greets the buyer and puts the buyer at ease. At this meeting, the salesperson asks some key
questions to get some essential information before getting the buyer’s attention and launching into the
presentation.
3) Approach -: Manner in which the sales person contacts the potential customer. First impression of
the sales person is Lasting and therefore important.Strive to develop a relationship rather than just
push the product.
4) Presentation : is telling the product “story” to the prospect, showing how the product will solve a
problem for the product. The salesperson must build a case for how the product can serve the needs of
the buyer. A need-satisfaction approach involves carefully listening to the buyer’s needs and then
clearly explaining how the product can satisfy those needs.
B) Formula Method- The salesperson may use a structured series of steps such as the AIDA approach.
AIDA ====>attention ====>interest ====>desire ====>action
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The AIDA approach could be effective when prospects are in similar situations and can be sold using the
same basic presentation. This would be appropriate, for example, in route sales, where the salesperson
calls on the same customers each and every week.
6) Trial Close - The trial close involves checking the prospect’s attitude toward the sales presentation.
Salespeople may at any time use a trial close like one of these:
• How does that sound to you?
• What color do you prefer?
• If you bought this, where would you use it in your business?
• Are these features what you are looking for?
7) Handling Objections - Objection handling is the way in which salespeople tackle obstacles put in
their way by clients. Some objections may prove too difficult to handle, and sometimes the client may
just take a dislike to you (aka the hidden objection). Here are some approaches for overcoming
objections:
Firstly, try to anticipate them before they arise.
'Yes but' technique allows you to accept the objection and then to divert it. For example, a client
may
say that they do not like a particular colour, to which the salesperson counters 'Yes but X is also
available in many other colours.'
Ask 'why' the client feels the way that they do.
'Restate' the objection, and put it back into the client's lap. For example, the client may say, 'I don't
like the taste of X,' to which the salesperson responds, 'You don't like the taste of X,' generating the
response 'since I do not like garlic' from the client. The salesperson could suggest that X is no longer
made with garlic to meet the client's needs.
The sales person could also tactfully and respectfully contradict the client.
8) Closing the Sale - This is a very important stage. Often salespeople will leave without ever
successfully closing a deal. Therefore it is vital to learn the skills of closing.
- Just ask for the business! - 'Please may I take an order?' This really works well.
- Look for buying signals (i.e. body language or comments made by the client that they want to place an
order). For example, asking about availability, asking for details such as discounts, or asking for you to
go over something again to clarify.
- Just stop talking, and let the client say 'yes.' Again, this really works.
- The 'summary close' allows the salesperson to summarise everything that the client needs, based
upon the discussions during the call. For example, 'You need product X in blue, by Friday, packaged
accordingly, and delivered to your wife's office.' Then ask for the order.
- The 'alternative close' does not give the client the opportunity to say no, but forces them towards a
yes. For example 'Do you want product X in blue or red?' Cheeky, but effective
9) Follow Up - Follow-up is essential to building a relationship between the seller and the buyer.The
salesperson follows-up to ensure that the buyer received the right products in the right condition at the
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right time. Any problems or concerns on the part of the buyer after the sale are addressed
immediately. The salesperson demonstrates continued interest in the account and a desire to satisfy the
buyer’s needs on an ongoing basis.
SALES TALK
According to Ericka Strich :
Most people's sales conversations could be better. Not a little better, significantly better. We see too
many professional services providers fall into the same traps:
You talk too much, leaving the prospect with the impression that you don't understand their
business, their industry, or their needs.
You grill the prospect with questions, making them feel like they are at the police station with a
spotlight shining on them.
You talk too little, letting the prospect control the conversation.
You are over eager, and the prospect can smell your desperation a mile away.
You talk about your services as if they are commodities, leading the prospect to simply buy based on
price.
You are unprepared, and the prospect wonders why they are wasting their time with you.
You are uncomfortable talking about money, and the second a price objection comes up you cave and
start discounting.
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Most sellers make major mistakes each and every time they talk with a prospect. As a sales personnel
and under a sales talk, We can avoid these mistakes and take your sales conversations up a level simply
by following these seven keys to highly effective sales conversations:
1. Build rapport: Before We ask questions to get the buyer to open up or talk about how you can help,
We have to build rapport. All else being equal, people buy from people they like. Be likable and build
strong relationships, and We'll find our sales conversations will go much more smoothly.
2. Uncover aspirations and afflictions. If We've ever read any piece of sales advice, We know We need
to ask questions to uncover the prospect's pain. That's a given. But what most advice doesn't include is
how to harness the power of aspirations. our job is not only to uncover the prospect's needs and pains,
but it's to also uncover their aspirations and goals. Get our prospect to open up and share their hopes,
dreams, and desires and then show how We can help them achieve their goals.
3. Make the impact clear. If We don't make the business case, We won't make the sale. We can do
everything else right, but if the prospect doesn't see the value of our services (and We've got to be very
clear with what that value is), they will not buy it.
4. Paint a picture of the new reality. This goes hand in hand with points 2 and 3. Once We know the
prospect's needs and goals and the tangible impact of alleviating these pains or attaining their goals, We
must paint a picture of what their new world will look like. How will it be better? In our sales
conversations, help them visualize the other side and build excitement around it.
5. Balance advocacy and inquiry. Sales conversations require give and take. We have to get the
prospect talking so We can fully understand their situation. We also need to take what the prospect says
and communicate recommendations based on We are expertise to help them see how We can help. In
each and every sales conversation (yes, this includes capabilities presentations and demos) We have to
balance how much We talk and how much We listen.
6. Build on the foundation of trust. Trust is the foundation of sales success. A prospect will not open
up and share their needs if they don't trust on ours. A prospect will not believe in our solution .A
prospect will never see the full value of what We propose if they don't trust We. We will not win the sale
if they don't trust us.
7. Plan to succeed. Set the table for success by going into each sales conversation with a plan. A
complete homework has to be done and know what we want to get out of the conversation. If we should
go into each conversation well prepared and planning to succeed, We will be much more likely to make
the sale.
SALES PROMOTION
Meaning and Definition of Sales Promotion
Sales promotion refers to many kinds of incentives and techniques directed towards consumers and
traders with the intention to produce immediate or short term effects. In fact, whenever a marketer
increases the value of its products by offering an extra incentive to purchase a brand or product, it is
creating a sales promotion. The objective of sales promotion is to encourage ‘action’, although
promotion can also help build identity and awareness.
A few definitions of ‘Sales promotion’ are quoted below:
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1. American Marketing Association (AMA) offering this definition: “Sales promotion is media
and non-media marketing pressure applied for a predetermined, limited period of time order to
stimulate trial and impulse purchases, increase consumer demand, or improve product quality.”
2. More recently, the Council of Sales Promotion Agencies offered a somewhat broader
definition: “Sales promotion is a marketing discipline that utilizes a variety of incentive
techniques to structure sales-related program targeted to consumers, trade, and/or sales levels
that generate a specific, measurable action or response for a product or service.”
3. William Stanton defines sales promotion as “demand-stimulating devices to supplement
advertising and facilitate personal selling.” He further writes that examples of sales promotion
devices are coupons, premiums, in-store displays, trade shows, samples, in-store
demonstrations, and contests.
4. Definition by Institute of Sales Promotion, UK, “Sales promotion comprises that range of
techniques used to attain sales/marketing objectives in a cost-effective manner by adding value
to a product or service either to intermediaries or end-users, normally but not exclusively
within a defined time period.”
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11. Versatile: Sales promotions are extremely versatile. The different forms of sales promotions are
capable of being used with various groups and designed to achieve different effects. Given this
versatility, sales promotions can be useful throughout the product life cycle.
12. Growing Field: The total spending on sales promotion now exceeds spending on advertising.
Promotional budget is increasing than allocated to advertising. The field of sales promotion has
grown rapidly over the last fifteen years.
13. Marketing Communication: Similar to advertising, sales promotion is one type of marketing. It
is focused on creating action.
14. ‘Action’-the Ultimate Goal: Although an ‘action response’ is the goal of the most sales
promotion, it is also designed to build awareness. But it always focuses on action as the ultimate
goal.
15. Effective Marketing Activity: Ultimately, the basic reason for the growth of spending on sales
promotion is that it is now recognized as a very effective marketing strategy.
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7. Increasing Consumption of an Established Brand: Sales promotion can generate some new
interest in an established brand to help increase sales or defend market share competitors.
8. Defending Current Customers: With more new brands entering the market every day and
competitors attempting to take away their customers, many companies are turning to sales
plans to hold present customers and defend their market share.
9. Targeting a Specific market Segment: Most companies focus their marketing efforts on
specific market segments and are always looking for ways to reach their target audiences.
Many marketers are finding that sales promotion tools such as contests, coupons, and
samplings are very effective ways to reach specific geographic and demographic markets.
10. To disrupt Existing Buying Habits: A coupon offering a discount might cause brand
switching for a product such as orange juice or motor oil. For which many consumers do not
have strong preferences.
11. To Attract New Customers: Demonstrations of Products such as vacuum cleaners or food
processors can show people hoe easy they are to use and how well they perform.
12. To Increase Impulse Buying: End-of-aisle and island displays in supermarkets can increase
sales of a product by ass much as 50n percent.
13. To Get Greater Retailer Cooperation: A sporting-goods manufacturer gets additional shelf
space by setting up point-of-purchase displays, training retailers’ salespeople, and providing
tote bags to be given away with purchases.
14. Other Objectives:
a. To speed up the sales off slow moving products.
b. To check the fluctuations in sales.
c. To clear the excessive inventories.
d. Motivate dealers to stock and sell more.
e. Encourage dealers to participate in display and sales contests.
f. To gain advantageous shelf-space.
g. To increase store traffic.
h. To improve relationship with dealers.
i. To motivate sales-force.
j. To supplement advertising and personal selling efforts.
k. To deflect customers; attention from price.
l. To educate customers and dealers.
m. To develop patronage habits among the customers.
n. To facilitate the market research study on consumer motivates and behaviour.
o. To increase the goodwill of the firm.
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5. Creating ‘Action’: Although advertising is designed to build long-term brand awareness,
sales promotion is primarily focused on creating ‘action’.
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4. Creation of healthy competition in national and international trade, etc
5. Development and expansion of various transport, communication, insurance, banking and
warehousing services and facilities.
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12. It is built on an understanding of public opinion regarding public affairs issues critical to the
organization, such as ecology; how a company’s practice impact on the environment and its
local community; or workers’ rights and how a company deals with its employees; (William
Wells and others)
13. An important component of public relations is publicity-news media coverage of events related
to a firm’s products or services.
14. Public relations problems can arise from either a firm’s own activities or from external forces
completely outside a firm’s control.
15. Public relations is not a ‘soft-sell’.
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In contrast, advertising runs exactly as the client who paid for it has approved. And it runs as
scheduled.
11. Credibility: Successful public efforts bring a credibility not usually associated with advertising.
Experts believe that consumers tend to trust the media more than they do advertisers. Thomas
Harris, in his book Value-Added Public Relations, observes that today’s sophisticated and
skeptical consumers know when they are being informed and when they are being “sold to.” He
explains, “PR closes the marketing credibility gap because it is the one marketing
communication tool devoted to providing information. Not salesmanship.”
12. Reward: Advertising agencies and public relations consultancies may be remunerated
differently.
13. Desired Action: Advertising aims to persuade people to take some desired action such as visit
a shop, respond by post or telephone, or simply remember, in order to buy. Public relations
aims to create mutual understanding.
According to Wells, Burnett, and Moriarty, typical Public relations objectives include the
following:
Creating a corporate brand
Shaping or redefining a corporate reputation.
Positioning or repositioning a company or brand
Moving a brand to a new market or a global market
Launching a new product or brand
Disseminating news about a brand, company, or organization
Providing product or brand information
Changing stakeholder attitudes, opinions, or behaviours about a brand or company
Creating stronger brand relationship with key stakeholders, such as employees, shareholders
and the financial community, government, members (for associations) and the media.
Creating high levels of customer (member) satisfaction
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Creating excitement in the marketplace
Creating buzz (word of mouth)
Involving people with the brand, company, or organization through events and other
participatory activities
Associating brands and companies with good causes
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papers. Training materials, sales kits, corporate publication are also prepared and distributed to
support campaigns.
5. Internal Communications: In addition to publications, public relations may employ other
types of internal communications, including bulletin boards, e-mail list server group, letters, and
memos.
6. Bulletin Board: It is another method used to communicated internally. PR department can put
specific messages on bulletin board.
7. Speakers, Photos and Films: Many firms have renowned speakers who give talk about topic at
the public’s request. News media may want pictures of people, products, places, and events.
Films, videotapes have become a major public relations tool for a great many companies.
8. Displays, Exhibits, Events, and Tours: Other public relations tools available to a firm include
displays, exhibits, staged events, trade shows, tours, etc. where a company may take orders for
much of their annual sales.
9. News Releases: Media news releases are massages issued by the company regarding a wide
variety of topics, including the release of a new product, a change in corporate leadership, or
any other item that generates a positive pubic image.
10. Press Conferences: Companies often call press conferences when they have significant news to
announce, such as the introduction of a new product or advertising campaign.
11. Online Communication: E-mail, internals, extranets, Internet advertising, and web sites have
opened up avenues for public relations activities. Candace While and Raman write, “The World
Wide Web can be considered the first public relations mass medium in that it allows managed
communication directly between organizations and audiences without the gate keeping
function of other mass media.”
12. Interviews: A company may organized interviews with outside groups. Usually someone will
raise specific questions, and a spokesperson provided by the firm will answer them.
13. Community Involvement: Many corporations enhance their public image through involvement
in the local community. This involvement may take many forms, including membership in local
organizations. Another tool to develop positive publicity may be a company-sponsored special
event, such as annual “homecoming.”
14. Altruistic Activities: Altruistic activities are things provided to employees and other internal
stakeholders. Examples include sending flowers to employee family members in the hospital,
alcohol counseling, child care for workers’ children, purchase discount and numerous other
benefits given to employees.
15. Cause-Related Marketing: When a firm ties a marketing programme into some type of charity
work, goodwill can be generated. In choosing a cause, a company must focus on issue that relate
to its specific business.
16. Green Marketing: It is the development and promotion of products that are environmentally
safe. It may become a strong positive force to generate goodwill and mutual understanding
between an organization and its publics.
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Advantages of Public Relations Program
1. Credibility: The Public does not perceive public relations communications in the same light as
advertising, hence these have more credibility. The fact that the media are not being
compensated for providing the information may lead receivers to consider the news more
truthful and credible.
2. Low Cost: The cost of public relations is very low.
3. Avoidance of Clutter: Because they are typically perceived as news items, public relations
messages are not subjected to the clutter of ads.
4. Ability to Reach Specific Groups: If the firm does not have the financial capabilities to engage
in promotional expenditures, the best way to communicate to these groups is through public
relations.
5. Image Building: Effective public relations helps to develop a positive image for the
organization.
6. Value to Advertising: Advertising can benefit from public relations activity. In fact, advertising
may well fail because of lack of public relations.
7. Effecting Negative Attitudes into Positive Attitudes: Public relations can change negative
attitudes into positive.
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UNIT-V
SETTING UP TAGETS FOR MARKETING COMMUNICATION
Before targeting the market for implementation of effective communication strategy and plan, we
should have to divide the market, which is known as segmentation .The Common bases for market
segmentation is:
1) Geographic Segmentation 5) Buyer Segmentation
2) Demographic Segmentation 6) Volume Segmentation
3) Economic Segmentation 7) Benefit Segmentation
4) Psychographic Segmentation
1. Undifferentiated marketing: Which is created by the same marketing mix product, price, place and
promotion for all markets .The firm considers the target market as one and same. It requires extensive
distribution in the maximum number of retail outlets. For Example – REVLON, PEPSI & SONY.
2. Concentrated Marketing: Which Involves devising a marketing mix on tome product, one segment
principle. This strategy can be used by small companies also because small companies can create niches
in one product, one segement.For example: Cosmetics (LAKME).
3. Differentiated marketing: It Involves multiple market offerings: for example, Unilever and proctor
& gamble.
The competitive benefit – What your product or service delivers uniquely and meaningfully to
individuals in the target market. Ideally this section will also include support for the benefit –
sometimes called “permission to believe.”
The objective – In general advertising, objectives focus mainly on informing, persuading or reminding
people about the product or service. In direct marketing, it usually focuses more specifically on
attracting leads and/or selling products. Sales promotion objectives concentrate on maximizing short-
term incentives, while public relations objectives – when they are part of an IMC plan – generally have
to do with generating non-paid publicity.
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METHODS TO BE USED:
1. Headline Method:
Give news
Tell how-to
Inspire curiosity
Pose a challenge
Pose a question
Appeal to the reader’s self-interest
3. Layout and Illustration Types : Many of today’s print ads – if they are not direct-response oriented–
fall in to the category of “poster” or “fashion” layouts. They include little more than a headline, a
dominant picture that bleeds off the page, a line or two of copy or even no copy at all, and a logo. This
type of ad can be quite effective at building a brand image or at reminding customers and prospects
about a dominant, leading product.
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- Comparison or contrast (Example: Huge stack of laundry done with one container of
concentrated laundry detergent across from much smaller stack done with one container of regular-
strength competitor)
1. Finding the right marketing mix remains an art, not a science. Now that Integrated Marketing
Communications strategies appear to be here to stay (for a while), it is important to determine just how
much emphasis to place on each element since resources and budgets are still finite.
2. Communications and marketing pros are going retro and reinstituting increased number of
email campaigns. For a number of years, the use of email declined, but many are rediscovering the
value of direct contact and a clear call to action that is not always achieved through advertising or social
media campaigns. Note to readers, email campaigns are only as good as the list you have, so create,
update and maintain good databases.
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3. A clear, consistent, concise, customized content strategy is vital to success. Positioned as the
foundation and building block of any successful integrated campaign, it is necessary to review and
refresh key messaging on an annual basis. Dynamic content will need to be tailored to reach and engage
target audiences, and timing will be equally important.
4. Social media is here to stay but continues to evolve. Social media pros were among the hardest
candidates to identify and hire in 2013. We don’t expect that to change for another year or two. Avoid
jumping on bandwagons. Just because competitors are doing it, does not mean it is the best use of time
and resources for your client or company. Determine who your target audiences are and then identify
the best channels for engagement.
5. Identify and interview candidates before you need them. For the first time in many years, demand
for talent is so high that some undergrads have jobs secured before they actually graduate. There was a
recent article that resulted from a poll, indicating thatPR jobs would grow by 23 percent, while
journalism jobs continue to decrease.
6. Mobility solutions continue to gain momentum. Smart phones are ubiquitous and tablets are this
year’s hottest holiday gift. Digital media is here to stay so adapt and optimize your strategy accordingly.
7. The transition from traditional print to digital collateral will continue to accelerate. While there
are still a few vertical industries that still rely heavily on print collateral, most marketers recognize the
value and efficiency of digital materials which can still be printed on demand when necessary.
8. Client case studies and testimonials will only increase in value for your business. While it still
remains a challenge to secure permission to use client references and endorsements in sales, marketing
and PR materials, it is worth the time and effort, given the value and credibility that comes with third-
party validation for your client or company.
9. Internet advertising campaigns and strategies will become a more significant portion of the
marketing mix. Experts predict that Internet advertising will comprise nearly 25 percent of the entire
ad market by 2015.
10.If you haven’t already done so, check out the statistics on the impact visual marketing has when
combined with a content strategy. Consider leveraging info graphics or custom charts to summarize and
reinforce your content.
11.As a marketing tool, video is here to stay… at least for a while. Given the appeal, communicators are
seeking new, creative ways to integrate video into content strategies and campaigns. Consider that each
month more than 1 billion unique users visit YouTube and more than 6 billion hours of video are watched
there. That’s almost an hour for each person on Earth, which is up more than 50 percent from last year.
12. For PR pros, revisit your media pitching strategies. In 2013, there were continued cuts in
newsrooms while the number of total publications actually grew due to an increase in the number of
digital media outlets. Basically, you have more opportunities to reach audiences more directly but you
don’t have the luxury of time and interest from your media targets – make every pitch count.
13. Networking is more valuable than ever. Online tools, such as LinkedIn, allow you to efficiently and
effectively determine the targets that will help you grow personally and professionally, but it still helps
to have a personal touch. Reach out often and expand your sphere of influence with the movers and
shakers in your business community. It’s easier than you think.
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