Course # 6305

Lecture # 07

₪ Marketing Promotion: Definition

Pride & Ferrel - “The role of promotion is to communicate with individuals, groups or organizations
to directly or indirectly facilitate exchanges by informing and persuading one or more of the
audiences to accept and organization‟s products”.
E. J. McCarthy - “Promotion is communicating information between seller and buyer to change
attitudes and behaviors”.

Marketing promotion is a part of marketing mix. An important „P‟ of four P‟s/marketing mix is
„promotion‟. It will change the buying behavior, negative attitude and create interest of the product.

₪ Objectives of Marketing Promotion

1) To inform

2) To persuade

3) To remind

4) To face competition

5) To create and increase the demand

6) To create brand loyalty

7) To change the attitude

8) To expand the market

9) To create goodwill

10) To create and increase public awareness

11) To stimulate trial use

12) To increase the profit

13) Maintaining elasticity of demand

14) Retaining the demand

 ₪ Importance / Significance / Role of Marketing Promotion
Significance of Marketing Promotion

Economic Significance Social Significance

1) Creating demand 1) Creating employment

2) Increasing sales 2) Developing standard of living
3) Adjusting between demand and supply 3) Establishing image
(Maintaining elasticity of demand) 4) Creating social awareness
4) Creating brand loyalty 5) Informing the mass people
5) Facing competition 6) Creating nationality
6) Market expansion 7) Assisting salesperson
7) Increasing profit
8) Persuading to buy the product
9) Keeping up the demand
10) Creating goodwill
11) Large-scale production

₪ Tools / Methods of Marketing Promotion

Marketing Promotion Tools

Advertising Personal Selling Sales Promotion Public Relation Direct Marketing

Press Release Tele-marketing

Consumer Business Press Conference
Radio Field level Online Marketing
Films / Drama
Television Retail Busi. Stage Coupon Co-operative Tours Postal Service
advertising Sponsorship
Newspaper Door to Door Sample Community Activity Catalog Marketing
distribution Price deal
Lobbying
Magazine Push money Others
Price cut Counseling
Outdoor Fair Publicity
Competition In-house Publications
Transit Gift
Speeches
Package
Cinema Online Communication
Premium Special Events
Others Audiovisual Materials
Free offer Corporate identity
Materials
₪ Promotion Planning in Marketing

Evans and Berman- “Promotion planning is systematic decision making relating to all aspects of an organization‟s
and individual‟s communication efforts”.

Belch and Belch- “promotional plan, that provides the framework for developing, implementing, controlling the
organization‟s integrated marketing communications program and activities”.

₪ Steps of Marketing Promotion Planning

1) Determining a promotional opportunity

2) Determining promotional objectives
3) Organizing the promotional activities
4) Selecting the appropriate audience
5) Selecting the message
6) Selecting promotional mix
7) Determining a budget
8) Preparing and implementing promotional strategies
9) Measuring the result / feedback
10) Correction and appropriate action

₪ Marketing Promotion Mix

Pride and Ferrell- “Promotion mix is the specific combination of promotional methods that an organization uses
for a particular product”.

C L Bovee- “Promotion mix is a combination of two or more elements of advertising, sales promotion, public
relations and personal selling”.

Philip Kotler- “Promotion mix consists of the specific blend of advertising, personal selling, sales promotion and
public relation tools that the company uses to persue its advertising and marketing objectives”.

₪ Promotion Mix at different stages of Product-life Cycle

Philip Kotler – “A product life cycle is the course of a product‟s sales and profits over its lifetime”.
Evans & Berman – “The product life cycle is a concept that attempts to describe a product‟s sales, profits,
customers, competitors and marketing emphasis from its beginning until it is removed from the market”.
Philip Kotler- “A product life cycle is the course of a product‟s sales and profits over its lifetime”.
Sales & Profits (Tk.)

Sales line

Profit line

Product Introduction Growth Maturity Decline

Dev. Stage Stage Stage Stage Stage

Losses/Investment (Tk.)
Figure : Product life cycle / Sales and Profits over the Product’s life from Inception to Demise

1) Product Development Stage

At this stage, the company finds and develops a new product idea. During this stage, there are no sales
and the company‟s investment & costs are rises.

Strategies are -

 Data collection regarding promotion from the market

 Develop promotion planning
 Contract sign with relevant parties
 Promotion may start in a limited and different way

2) Introduction Stage
Philip Kotler- “Introduction is a period of slow sales growth as the product is introduced in the market”.
Strategies are -
 Inform the target market
 Persuade / convince to buy
 Attract the intermediaries

3) Growth Stage
Philip Kotler- “Growth is a period of rapid market acceptance and increasing profits”.

Strategies are -
 Continue to much promotional activities
 Build an strong distribution system
 Give some extra benefits to customers, distributors, retailers than competitors
 Emphasis to personal selling and direct marketing
 4) Maturity Stage
Philip Kotler- “Maturity is a period of slowdown in sales growth because the product has achieved
acceptance by most potential buyers”.

Strategies are-

 All promotional tools have to use

 Follow competitor’s promotion strategy
 Rapid change in promotion mix

5) Decline Stage
Philip Kotler- “Decline is the period when sales fall off and profits drop”.
Strategies are-
 Limited sales promotion
 No further investment (it may be bad investment)
 Withdraw the product quickly / slowly
 Aggressive promotion for repositioning

₪ Marketing Communication
Sherlekar – “Marketing communication involves sharing of meaning, information and concepts by the source and
receiver about products and services and about the firm selling them”.

Charles and Reuben – “Marketing communication is simply the transmission of information from the marketer to the
consumer; it thus creates a favorable climate for the product in the market place”.

₪ Basic Elements / Characteristics of Marketing Communication

1) Presence of two parties
2) Transmission of information
3) Bridge between buyer and seller
4) Paid media
5) Presentation of information
6) Pervasiveness
7) Create favorable climate
8) Public awareness
₪ Model of Marketing Communication Process

McCarthy – “A whole communication process means, a source trying to reach a receiver with a message”.

Message
Sender Encoding Decoding Receiver

Channel

Noise

Feedback Response

Figure : Model of the Communication Process

Elements of Marketing Communication:

1) Sender

Philip Kotler – “ Sender is the party sending the message to another party”.
Busch & Houston – “ Source is the sender of the message”.

2) Thoughts

Sender encodes the thoughts or information exists in the mind of the sender. This can be a concept, idea,
information or feelings.

In any kind of communication, the sender at first develop an idea which he / she wants to transmit.

3) Encoding

Philip Kotler – “ Encoding is the process of putting thought into symbolic form”.

Stanton E & W – “ In marketing, encoding means changing an idea into words, pictures or both”.

Russ & Kirkpatrick – “ Encoding is the process of formulating the points, thoughts and meaning, sender‟s
want receivers to grasp”.

4) Message

Philip Kotler – “ Message is the set of symbols that the sender transmits”.

Bovee – “Once the idea has been encoded into a form acceptable for transmission, it is considered a
message”.

Steven J Skinner – “Message is a idea or experience that a source wants to share in the communication
process”.
5) Media / Channel

Philip Kotler – “ Media is the communication channel through which the message moves from sender to
receiver”.

McCarthy – “ Message channel is the carrier of the message”.

6) Decoding

Philip Kotler – “ Decoding is the process by which the receiver assigns meaning to the symbols encoded
by the sender”.

Evans & Barman – “ Decoding is the process by which the message sent by the source is interpreted by
the audience”.

7) Receiver
Philip Kotler – “ Receiver is the party receiving the message sent by another party”.

8) Response
Philip Kotler – “ Response is the reaction of the receiver after being exposed to the message”.

9) Feedback
Philip Kotler – “Feedback is the part of the receiver‟s response communicated back to the sender”.

10) Noise

Philip Kotler – “ Noise is the unplanned static or distortion during the communication process, which
results in the receiver‟s getting a different message than one the sender sent”.

Evans & Berman – “Noise is the interference at any stage along the channel of communication”.

11) Barriers

A barrier is something such as a rule, law or policy that makes it difficult or impossible for something to
happen or be achieved.