PROMOTION

Concept and Process of Integrated Marketing Communications /promotion
Integrated Marketing Communications is a term used to ensure consistency of message and the complementary use of media. Integrated marketing communication is integration of all marketing tools, approaches, and resources within a company which maximizes impact on consumer mind and which results into maximum profit at minimum cost.
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Promotional Mix 
Firms select a mix of promotional tools to

effectively communicate with their target group. The different elements of the mix are : 
Advertising  Personal selling  Sales promotion  Public relations

Promotional Mix
Not each element is helpful in all product market situations  Advertising is known to deliver results in soft drinks industry  Personal selling is effective in personal computers and software  Advertising has bigger role to play in consumer durables, service marketing etc.  Sales promotion and publicity have an equal significance in all type of products

Promotional Tools ± Advertising
Advertising is a paid form of non personal presentation of goods and services by an identified sponsor. It can be done by using a media like television, radio, print media etc.  Advertising is also considered as cost efficient as it can reach a vast number of audiences simultaneously.  The message can be repeated several times  Adds value to the product to certain extent  Helps in boosting the sales of the company  It provides reassurance to the customer after they have taken the correct purchase decision

Promotional Tools ± Advertising 
Helps in changing customers perception of a product  Creates awareness amongst the potential customers  Helps in offsetting competitors advertisement  Is expressive and hence it dramatizes the whole concept  Helps in building a strong image of the company

Benefits of Advertisements
‡Advertisements create awareness, interest and

desire in the customers to buy them ± AIDA
‡Cost

Efficient as reaches audiences simultaneously

vast

number

of

‡The message can be repeated several times

thereby creating an impact on the mind of the customer

7 Main stages
Identifying the target audience Schedule the advertising campaign Measure advertising effectiveness

Specifying advertisement objectives

Select media

Set the advertising budget

Develop advertisement message

Sales Promotion
AMA defines : Sales promotion include activities that supplement both personal selling and advertising and co-ordinate them and make them effective such as displays, shows, demonstrations and other nonrecurrent selling efforts not in the ordinary routine In simple words Sales promotion as an activity is taken up to boost the sales of the product. It can include a host of activities like running advertising campaigns, handling public relation activities, distribution of free samples, offering free gifts, conducting trade fairs, exhibitions and competitions, offering temporary price discounts, launching door to door selling and telemarketing etc. Compared to any other element Sales promotion is more action oriented

Different types of Sales Promotion
There are two types Consumer Sales Promotion Methods Trade Sales Promotion Methods

Consumer Sales Promotion Methods 
Marketers use sales promotion to introduce new product or

brand, or promote the existing brand  Price Promotions : Price discounts  Coupons : certificate that offers price discount for some specified items to the holder (pasted on package, placed in the package, newspaper, offered with a purchase, cut out in advertisement, printed on back of receipts)  Free gifts / samples (subscription based products- magazines, consumer luxuries ± perfumes, vehicles etc) Banks and other businesses offer free gifts like calendars, diaries, penholders etc.

Consumer Sales Promotion Methods 
Money refunds and rebates : on multiple purchases  Frequent user incentives : rewarding loyal customers

(E.g. Frequent flier schemes offered by airlines) 
POP-point of purchase displays : (window displays, wall

displays, display racks, danglers, balloons, outside signs, counter pieces, and innovations such as sniff teasers that spread a product¶s aroma in the store etc.  Installment offers : paying remaining amount on an installment basis

Consumer Sales Promotion Methods 
Consumer Contest : Competition to attract

customer¶s attention 
Consumer Sweepstakes : submit the names in a

draw for prizes 
Trade Shows : Exhibitions and trade shows

Trade Sales Promotion Methods 
Manufacturers use special trade promotion methods to encourage

reseller like retailers to promote their products 
Buying Allowance : Temporary price reduction offered to the retailer for

purchasing specific quantity of product 
Buyback Allowance : Offered to the channel member for each additional

unit purchased after initial deal 
Merchandise Allowance : Manufacturer agrees to pay certain amount of

money for promoting companies product through advertising or displays 
Free Merchandise : Additional amount of product is offered without any

additional cost as an incentive to purchase a minimum quantity

Trade Sales Promotion Methods 
Dealer Loader : Reward or gift given to retailer to

encourage display of merchandise 
Dealer Listing : Technique in which advertisement

of company identifies & acknowledges it¶s retailer 
Scan back Allowance : Retailers are rewarded on

the basis of number of units that moved through their scanners

Promotional Tools ± Personal Selling 
Personal selling takes place when the sellers or the

salesperson in a face to face interaction with buyer tries to persuade him to purchase the service he is promoting on behalf of the Personal selling takes place at a personal involves a personalized transaction.

a potential product or company. level and 

The sales person communicates the product benefits to the

customer in an attempt to inform him and convince him to make a purchase. Personal selling provides salesperson with immediate feedback and helps him to adjust or modify his sales preposition to suit the requirements of the buyer

Promotional Tools ± Personal Selling
The sales person has to meet certain goals. These include 
Finding new prospects  Convincing the prospects to purchase the

company¶s product and  Keeping the customers satisfied and indirectly influencing them to provide a positive word of mouth publicity of the company

Promotional Tools ± Personal Selling
Personal selling can be described as a handy tool in the hands of the marketer for the following reasons 
Personal Selling gives marketer the freedom to

make adjustments in the promotional message to satisfy the information needs of the customers  Target the promotional message with utmost precision at the most promising leads  Provides marketer with more information about customer preferences and also serves as a means of obtaining feedback about the company and its products

Promotional Tools ± Personal Selling
Personal selling can be described as a handy tool in the hands of the marketer for the following reasons 
Facilitates a two way flow of information  Interaction between salesperson and customers

helps company to identify the strength and weaknesses of their new products. It helps company to take corrective action  Effective sales force helps company build and improve relationship with customers

Public relations

Online marketing 
The commercial mails that promote the product or

service generally ask for a click and if the consumer is interested will visit the site or just delete the mail. 
The personal page is filled up with pop up messages

and banner ad¶s trying to grab attention. 
The rapid increase in the growth of online marketing

can be attributed to many factors. Goods and services can move continents efficiently at a click of a mouse. Internet and online transactions take place all the time of the day and night in today¶s market

Advantages and Disadvantages of Online marketing 
Can

reach larger customer base, in fact marketing can be done on a global basis using internet  Enables customers to shop online at their convenience from home or workplace  Online marketing allows customers with video clips and statistics thereby giving them ample scope to compare products with those of competitors

Online marketing 
Maintaining an online store does not have

traditional costs associated with maintenance of a conventional store (cost related to real estate, shelf space, interiors, insurance premiums etc. )  Online marketing can count the exact number of customers visiting the site  Disadvantage ± people are still not accustomed to shop online

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