PROMOTION

Prof. (Dr.) D K SAKORE

B.Tech, PGDM (IIMA), NET, Ph.D

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Please
Switch off
your Mobile
Phones or put
them in
Silent Mode

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 Promotion

Promotion Communication

Promotion Mix

• Specific blend of tools that the company uses to persuasively

communicate customer value and build relationships

• Also referred to as Marketing Communication

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 Marketing Communication

Means by which an Organization attempts to

• inform, persuade (convince) and remind consumers

• directly or indirectly

• about the products and brands that they sell

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 Marketing Communication

 Represents VOICE of the Brand

 Means by which it can establish a dialogue and build

relationships with customers

 MARCOM

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 Marketing Communication
Communicating with target customers is becoming
increasingly difficult as –

 Large number of Companies

 Offering multiple brands / products

 Try to grab consumers increasingly divided attention

 Proliferation of Media & Advertising Clutter

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 Marketing Communication
The question is not whether to communicate, but

 What to say ?

 How to say it ?

 To Whom ? and

 How Often ?
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 Integrated Marketing
Communication
 Now, companies are using a combination of Promotional
Tools in order to reach a large number of customers

 This approach is called as IMC

Ensure Comprehensive, Clarity, Consistency and Compelling

nature of communication for maximum impact

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 Integrated Marketing
Communication
Pharma Industry : IMC tools used

 Medical Representatives
 Free Samples
 Ads in Medical Journals
 Telemarketing
 Sponsor Conferences
 Advertisements
 Direct mail (including audio and video tapes)
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 Objectives of Promotion
1) Create awareness among target customers

2) Generate Interest & Trial

3) Provide detailed information (features/benefits/usage)

4) Persuade (convince) customers about Value

5) Stimulate Action (info or to buy)

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 Objectives of Promotion
6) Reinforce the Buying Decision

7) Remind customers about Product/Brand (Repeat buying)

8) Inform changes in the Marketing Mix

9) Supporting Social Causes

10) Build Image of the Company/Brand in the minds of the

customers 11
 Target Audience for Promotion
• Customers • NGO’s

• Consumers • Media

• Employees • Government

• Society • Banks / Financial Institutions

• Share holders • Marketing Channel Members

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 Modes of Promotion
• Advertising • Direct Marketing

• Sales Promotion • Personal Selling (Sales force)

• Events & Experiences • WOM

• Publicity & Public Relations • Interactive Marketing

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 Modes of Promotion
1. Advertising

 Any paid form of non-personal presentation & promotion of

ideas, goods or services by an identified sponsor

 Includes print ads (newspapers/magazines/directory/journal),

Audio Visual & Broadcast ads (TV/ Radio/Cinema/Internet),
Hoardings (bill boards), Posters, Leaflets (handbills), Display
Signs, Packaging (outer/inserts), Point of Purchase materials
(POP)
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 Modes of Promotion
2) Sales Promotion

 Variety of short term incentives to encourage trial and

purchase of a product/service

 Helps to advance / increase volume of purchases

(A)Consumer Promotions
 Includes free samples, lucky draws, scratch cards, games,
contests, discount coupons, gifts, trials, loyalty programs,
exchange programs and low interest financing 15
 Modes of Promotion

(B) Trade Promotions

 Encourage trade channel members to stock, sell more and

promote the brand

 Includes trade shows, display allowances, trade discounts,

cooperative advertising, training

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 Modes of Promotion
3) Events & Experiences

 Company sponsored activities & programs designed to

create special brand related interactions with customers

 Includes sports, arts, entertainment programs, festivals,

causes, factory tours, company museums and street
activities

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 Modes of Promotion
4) Publicity & Public Relations

 Variety of programs designed to promote/protect image of

the Company/Brand

 Includes public speeches, media kits, news conference,

press relations, seminars, annual reports, company
magazine, publications, charitable donations, community
relations and lobbying

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 Modes of Promotion
5) Direct Marketing

 Direct communications with specific customers & prospects

for dialogue , obtaining response and build relationships

 Includes sending mailers, email, fax, voice mail, TV

Shopping, telemarketing, catalogs and company websites

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 Modes of Promotion
6) Personal Selling (Sales force)

 Face to face interactions with one or more prospective

purchasers for the purpose of making presentations,
answering questions and procuring orders

 Includes Sales Presentations, Sales Meetings, Sales

Contests, Demonstrations, providing Samples, Trade shows
and Consumer Exhibitions

 Commonly used in B2B transactions 20

 Modes of Promotion
7) WOM

 Face to face communications between customers/

prospects (Word of Mouth )
 Now includes Word of Mouse - Social Media interactions,
consumer reviews, blogs and chat rooms (Viral/Buzz
Marketing)
 Increase geographical reach, number of customers and
impact multiple times
 Discuss merits/demerits, consumer experiences of
purchasing and using products/services of a company
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 Modes of Promotion
8) Interactive Marketing

 Refers to online activities and games to engage existing

customers and prospects of the company

 Includes Banner ads, search related ads, pop ups, Micro

sites as well as sponsorships (providing information on
other websites)

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 Steps in Developing Effective
Communication
1. Identify the Target Audience
2. Determine Communication Objectives
3. Design Communication Theme
4. Select Communication Channels
5. Establish Communication Budget
6. Decide the Media Mix
7. Measure Communication Results
8. Manage IMC

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 Steps in Developing Effective
Communication
1. Identify the Target Audience

 Potential Buyers, Current Users, Deciders, Influencers, or

General Public
 Influences what to say, how to say it, when to say it, where
to say it and to whom
 Can be expressed in terms of market segment (B2C or B2B)
 Need to understand Usage rate (light, medium, heavy),
User Category (ex, non, new, existing) and Brand Loyalty
(for company, competitor or frequent switcher)
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 Steps in Developing Effective
Communication
2) Determine Communication Objectives

Can be of 4 types or combination –

a) Establish Category Need – Ola, Zomato, Tesla

b) Brand Awareness – Recall & Recognition
c) Brand Attitude – Positive, Negative, Neutral or Hostile
d) Brand Purchase Intention – exchange offers, cash backs

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 Steps in Developing Effective
Communication
3) Design Communication Theme

a) What to say ? Message Strategy

b) How to say it ? Creative Strategy

c) Who should say it ? Message Source

Appeal : Humour, Fear, Social, Rational, Emotional, Ethics (Moral)

Use of Experts, Celebrities, Common people, Animations 26
 Steps in Developing Effective
Communication
4) Select Communication Channels

2 categories –
a) Personal Channels (one to one directly)
b) Non-Personal Channels (one to many indirectly)

Depends upon type of customer, nature of product/service,

PLC stage, reach of the media, location of customers and
competitors channels of communication
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 Steps in Developing Effective
Communication
5) Establish Communication Budget

4 types of Methods :
a) Affordable method
b) Percentage of Sales method
c) Competitive Parity method
d) Objective & Task method

Depends upon industry, competition, level of profitability

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 Steps in Developing Effective
Communication
6) Decide the Media Mix

 Prepare detailed Media Plan - Tool or instrument to be

used, reach, frequency, timing, duration, size, impact, costs

 Consider Pros and Cons of each media and channel

 Allocation of budgets on various tools varies from company

to company even in the same industry (L’Oreal / Amway)
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 Steps in Developing Effective
Communication
7) Measure Communication Results

 Top Management evaluates the effectiveness of the

Communication plan

 Quantitative measure : Impact on Sales Revenue

 Qualitative measures : Brand Recall / Recognition, Attitude,

Trial, Recommendations to other customers
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 Steps in Developing Effective
Communication
8) Manage IMC

 If IMC plan is not effective or successful, changes are made

 Can be for message, tools used, media vehicle etc

 Regular monitoring to get Maximum Bang for the Buck

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 Consumer Response to Marketing
Communication
AIDA Model (Stages in Selling Process – E K Strong)

Attention – draw attention to the message

Interest – provide information to generate interest

Desire – create desire for the product/service

Action – encourage the audience to take specific action (such

as purchase) 32
 5 M’s of Advertising
Major decisions made by Marketing Manager in developing
advertising programs -

1) Mission
2) Money
3) Message
4) Media
5) Measurement

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 Promotions in Channels
1. Pull Strategy

2. Push strategy

• Top Marketing Companies employ Both.

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 Promotions in Channels
1. Pull Strategy

• Using Advertising & Sales Promotion to influence consumers

• Consumers ask intermediaries, thus inducing them to order it
• Brand choice made before going to the store
• Useful for high involvement category with brand loyalty
• Suitable for big companies having popular brands

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 Promotions in Channels
2. Push strategy

• Using Sales force and Trade Promotion to Induce intermediaries

• To carry, promote and sell the products to end users
• Appropriate when involvement and loyalty is low
• Brand choice made in store
• Suitable for Small companies with unknown brands

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Enjoy and Celebrate
Life

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 Consumer Response to Marketing
Communication
Innovation Adoption Model – Everett Rogers

A - Awareness
I - Interest
E - Evaluation
T - Trial
A - Adoption

Applicable for purchasing innovative products

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