PROMOTION MIX

MEANING
1. Promotion is an important part of marketing mix of a business enterprise.
2. Once a product is developed, its price is determined the next problem comes
to its sale i.e., creating demand for the product. It requires promotional
activities.
3. The activities are technique which bring the special characteristics of the
product and of the producer to the knowledge of prospective customers.
4. Promotion is a process of communication involving information, persuasion,
and influence.
5. The term ‘selling’ is often used synonymously with promotion. But promotion
is wider that selling.
6. Selling is concerned only with the transfer of title in goods to the purchaser,
whereas promotion includes techniques stimulating demand.
7. These techniques include advertising, salesmanship or personal selling and
other methods of stimulation demand.
 MEANING
9. Promotion is essentially the sales efforts of a business enterprise and
includes the function of informing, persuading and influencing the
purchase decision of the existing the prospective consumers with the
object of increasing sales volume and profits.
10. Promotion is the efforts of the seller to sell the product effectively.
Promotion is the communication with the customers to pursue them to
buy the product.
11. It is the duty of the marketing manager to choose the communication
media and blend them into an effective promotion programme.
12. These are more than one type of tools used to promote sales. The
combination of these tools with a view to maintain and create sales is
known as promotion mix. 
 Objective/Importance of Promotion
1. To Stimulate Demand:
• It is the primary objective of market promotion. Through the use of appropriate
means of market promotion, such as advertising, sales promotion, personal
selling, and so forth, the company can stimulate demand for the product. Market
promotion efforts convert potential buyers into actual buyers. Company, by
highlighting product benefits, tries to match the product with needs, wants, and
expectations of buyers. As per need, various means of market promotion are used
to establish the information link with the target customers.
2. To Inform Consumers:
• Promotion is aimed at informing consumers about features, qualities,
performance, price, and availability of firm’s products. Market promotion is also a
valuable means to inform consumers the changes made in the existing products
and introduction of new products. In the same way, market promotion, by various
tools of market communication, is used for communicating the special offers,
price concession, utility of products, and incentives offered by the company.
3. To Persuade Consumers:
• Market promotion is an effective way to persuade consumers the
superiority of product over competitors. A firm can communicate
competitive advantages the product offers to distinguish it from
competitors’ products. Obviously, market promotion can assist the firm to
convince buyers that the firm’s product is the best solution to their unmet
needs and wants. Advertising is one of the most effective tools to
distinguish the product from competitors’ products.

4. To Promote a New Product:

• In a large and decentralized market, market promotion is an inevitable
medium to promote a new product. By suitable promotional strategies, a
company can successfully introduce a new product in the market as
against existing products. Company can inform about availability, distinct
features, and price of newly launched product. In every stage of consumer
adoption of a new product, market promotion has critical role to play.
5. To Face Competition:
• Market promotion enables the firm to face competition effectively. In
today’s market situation, it is difficult to stand without the suitable
promotional efforts. In short, it can be said that marketer can fight with
competitors effectively, can prevent their entry, or can throw the
competitor away from the market by formulating and implementing
effective market promotion strategies.
6. To Create or Improve Image:
• Advertising, personal selling, and publicity and public relations – all
promotional tools – are capable to create or improve image and
reputation of the firm. Many companies have become popular in the
market due to effective market promotion. Company can reach the
customers at every corner of the world through market promotion.
• Brand image is purely an outcome of promotional efforts. For example,
Hindustan Unilever, Colgate Palmolive, Sony, Philips, Hero Honda, Ambuja
Cement, and many national and multinational companies have made their
permanent place in the market due to successfully launching of market
promotion programmes.
 ELEMENTS OF PROMOTION MIX
1. ADVERTISING
2. SALES PROMOTION
3. PUBLIC RELATIONS AND PUBLICITY
4. EVENTS AND EXPERIENCES
5. DIRECT MARKETING
6. INTERACTIVE MARKETING
7. PERSONAL SELLING
8. WORD OF MOUTH MARKETING
 IMC
• Integrated Marketing Communications is a simple concept. It ensures that
all forms of communications and messages are carefully linked together.
• IMC has been defined by the American Marketing Association as “a
planning process designed to assure that all brand contacts received by a
customer or prospect for a product, service, or organization are relevant to
that person and consistent over time.”
• IMCis the use of marketing strategies to optimise the communication of a
consistent message of the company's brands to stakeholders.
• Coupling promotion methods together improves communication as it
harnesses the benefits of each channel, which when combined together
builds a clearer and vaster impact than if used individually.
•  IMC requires marketers to identify the boundaries around the promotional
mix elements and to consider the effectiveness of the campaign's message.
• Although Integrated Marketing Communications requires a lot of effort it
delivers many benefits. It can create competitive advantage, boost sales
and profits, while saving money, time and stress.
• IMC wraps communications around customers and helps them move
through the various stages of the buying process. The organisation
simultaneously consolidates its image, develops a dialogue and nurtures
its relationship with customers.
• This ‘Relationship Marketing’ cements a bond of loyalty with customers
which can protect them from the inevitable onslaught of competition. The
ability to keep a customer for life is a powerful competitive advantage.
 ADVERTISING
1. The American Marketing Association defines Advertising, "Any paid
form of non-personal presentation and promotion of ideas, goods or
services by an identified sponsor.”
2. In advertising, existing and prospective customers are communicated the
message through impersonal media like radio, T.V., newspapers and
magazine.
3. It involves transmission of standard message simultaneously to a large
number of people.
4. MAIN FEATURES OF ADVERTISING:
• Paid form-Advertising is always a paid form of communication and hence
commercial in nature. Thus, advertising can clarify be distinguished from
publicity which is not paid for by the sponsor.
• Non-personal presentation-Advertising is a non-personal presentation.
Whatever the form of presentation, advertising is always directed to a
mass audience rather than to any individual.
• Sell or promote ideas, goods and services-Advertising is aimed at
promoting and selling not only tangible and physical goods, but also ideas
and services. Most often services like banking and insurance are sold
through advertising. 
• Identified sponsor-Advertising always has an identified sponsor. In other
words, advertising discloses or identifies the source of the opinions and
ideas it presents. 
•  Inform and persuade-Advertising usually informs the potential consumer
about products and services, their benefits and utilities. It also persuades
the consumers to purchase such products and services.
 Benefits of Advertising
1) Benefits to Manufacturer

• Through advertising the manufacturer can create a demand for his product and
maintain it throughout the year and thereby reduce the seasonal slumps in his
business.
• Advertising also protects the manufacturer against unfair competition because
the public learns to recognize the brand and the name of the manufacturer.
• Mass-production needs mass-selling. Advertising makes this possible.
• Advertising tends to stabilize the selling price and there by create confidence in
the public.
• Advertising helps in introducing new products in the market.
• Advertising creates new taste among public and stimulates them to buy new
products.
• Increase morale of employees as the task of salesman becomes easier.
• Advertising is instrumental in increasing goodwill of the concern. It
introduces the manufacturer and his product to the people. 

2. Benefits to Customers
• Advertising is educational and dynamic in nature. It familiarises the
customers with the new products and their diverse uses and also educates
them about the new uses of existing products.
• Different goods are advertised under different brand names. A branded
product assures a standard quality to the consumers. The manufacturer
provides quality goods to the consumers and tries to win their confidence
in his product.
• Advertising plays significant role in the introduction of a new product in
the market. It educates the people to about the product.
• It increases the utility of existing goods as adds satisfaction to the goods
used.
3. Benefits to Society

• Advertising provides and creates more employment opportunities for

many talented people like painters, photographers, singers, cartoonists,
musicians, models and people working in different advertising agencies.
• Advertising is immensely helpful in reducing the cost of the newspapers
and magazines etc. The cost of bringing out a newspaper is largely met by
the advertisements published therein.
• The experience of the advanced nations shows that advertising is greatly
responsible for raising the living standards of the people. By bringing to
the knowledge of the consumers different variety and better quality
products, it has helped a lot in increasing the standard of living in a
developing economy like India.
• Advertising is educational and dynamic in nature. It familiarises the
customers with the new products and their diverse uses and also educates
them about the new uses of existing products.
 Criticism of Advertising
(1) Increased Price of The Product:
• Advertising increases the cost of the product as the expenses on it form the part
of the total cost of the product. The increased prices are borne by the consumers.
(2) Multiplication of Needs:
• Advertising creates artificial demand for the product and induces people to buy
those products which are not needed by them. On account of its repetition, it
allures and creates a desire in the minds of the people to possess an article not
required by them.
(3) Deceptive:
• Sometimes advertising is used as an instrument of cheating. In order to impress
upon the people false statements are given with regard to different virtues of a
product. Fraudulent means and deceptive practice are resorted to by various
traders in order to sell their products. All these things adversely affect the public
confidence in the advertising.
(4) It Leads to Monopoly:
• Advertising sometimes leads to monopoly in a particular brand of a
product. By investing large sums in advertising of his brand, a big producer
eliminates small producers of the same product from the market and
creates brand monopoly. This leads to exploitation of consumers.
(5) Harmful For the Society:
• Sometimes advertisements are un-ethical and objectionable. Most often,
these carry indecent language and photographs in order to attract the
customers. This adversely affects the social values.
(6) Wastage of Precious National Resources:
• A serious drawback levied against the advertisement is that it destroys the
utility of certain products before their normal life. The latest and improved
model of a product leads to the elimination of old ones.
 Media of Advertising

1. Newspapers

• Newspapers are a popular medium to contact or inform a large number of

customers. Newspapers may be morning or evening; may be in English,
Hindi or in other regional languages; may be daily or weekly; may be local,
regional or national; or may be routine or special edition.
• The company should consider circulation, language, geographical
coverage, price, credibility, costs of buying space, and quality of printing
while selecting a suitable newspaper.
• Pictures, slogans, figures, charts, etc., can be used. Company can used
multi-coloured advertisement, too.
Merits:
(a)Newspaper is fit for mass
communication.
(b) Necessary changes can be made easily
in regularly published advertisement and
at low costs.
(c) The medium is suitable for almost all
types of products.
(d) It reduces tasks of salesmen and
dealers.
(e) It is relatively a cheaper option. Per
reader cost is very low.
(f) It is a more flexible advertising vehicle.
As per need a company can prefer effective
timings, languages, regions, and color
combinations.
(g )It is a simple and easy medium to
access by advertiser and readers, etc.
DEMERIT
 (a) Newspapers have a shorter life,
normally, a day.
(b) Message may not be read.
(c) Quality of paper and printing may
reduce the value of advertisements
published in newspapers.
(d) It is treated as an ordinary advertising
means. It is not as impressive (or
prestigious) as magazines and periodicals.
(e) It is costly when customers are limited
in number.
(f) In case of written advertisement, the
illiterate customers cannot read it
(g) Normally, customers have to buy the
newspapers. It is not cost-free medium
like television or radio, etc.
 Television – TV

• It is the newest, fastest growing, and most popular advertising medium. It

is a powerful medium for entertainment and advertisement.
•  It appeals the people through the eye and the ear, i.e., it creates audio-
visual effect. Products can be demonstrated as well as explained.
• Written words, description, and slogans can also be depicted with
pictures, package, and brand names and/or products. Now, film starts,
cricketers, artists, and modeling personalities are excessively used to
advertise different types of products.
MERITS
 (a) Millions of people can be exposed to
the products.
(b) Company can appeal to the customers
by two faculties (the eye and the ear) at a
time. A long-term effect can be created.
(c) Live demonstration can be displayed.
(d) Television advertisement is also a great
source of entertainment for children.
(e) It is fit for the illiterate as well as the
literate audience.
(f) Advertising during specific interesting
events like films, cricket match, film fair,
specific serials, or news carries a high
degree of exposure.
(g) Television advertisement can be
presented in the most effective and
perfect way by using the latest animation
technology or computer effect.
(h) Product can be attached to specific
personality in the most effective way
DEMERITS
(a) advertisement of the firm appears before, after,
or in middle of the programmes along with various
advertisements. In the same way, various
companies jointly sponsor a programme. Each
company tries to impress its viewers. All
advertisements are not carefully attended.
(b) It is the costliest medium to advertise the
product.
(c) People avoid seeing commercial break.
(d) Television is a source of entertainment. Many
advertisements are viewed for joy. Its commercial
value may be undermined.
(E) Many viewers opine that advertisements create
a nuisance on television.
(f)) Television advertisement seems more artificial,
superfluous, , misleading, and full of exaggerations
due to use of animation, virtual reality or special
effects created by computer.
 RADIO
• Perhaps it is the cheapest (in terms of per listener cost) and most
pervasive among all media used for mass communication.
• It crosses the literacy barriers. Countrywide or on particular regions, the
direct message is conveyed to the (desired group of) listeners.
• Radio is used not only for advertising national programmes by the
Government for Family Planning, vaccination, woman education,
ecological conservation, erosion of superstitions, or any other
programmes of social and national interest, but is also used by many
companies for commercial advertising.
MERITS
(a) Radio is more effective than spoken
words.
(b) Musical effects can be associated with
` the lowest, it is costly affair.
message or slogan
Wide coverage, it reaches to every corner
of the country or at particular region.
(d) Per contact cost is the lowest.
(e) The programme can be sponsored or
purchased as per advertiser’s needs and
objectives.
(f) It suits the low-cost products like foods,
drugs, cosmetics, etc.
DEMERITS
(a) Though per customer contact cost is
(b) Company has to compromise in terms
of message, events, or time schedule.
(c) Only brief, sometimes not clear,
message is conveyed.
(d) It is not suitable with all types of
products.
(e) Mostly, advertisement appears during,
before, or after the interesting
programmes. People hear radio for
programmes, and not for advertisement.
So, message may not be properly
attended.
(f) It is not the sole medium to advertise
the products. It is used as supplementary
to other advertising media.
 MAGAZINES
• Magazine is another popular and wisely used advertising medium. It is
similar to newspapers with regard to many aspects.
• To consumers, magazines are treated as source of information and
entertainment. A large variety of magazines or periodicals are published
weekly, fortnightly, monthly, quarterly, half-yearly or annually.
• Magazines are also published by religious and social organisations,
schools, colleges, university or educational associations, professional and
commercial associations, governments, companies, etc.
• Similarly, magazines are classified in forms of gender, age, profession,
industry, entertainment, and so forth.
• Based on customer characteristics, a proper magazine should be selected
for publishing advertising message.
MERITS
(a) Magazines have a long life.
(b) They are more effectives as they are
referred by educated and special class
during leisure time.
(c) They are printed in better quality
papers and effective or fault-free
language.
(d) Magazine can appeal to the special
groups of customers. For example,
children, women, or professionals.
(e) It is a prestigious and credible vehicle
to send advertising message.
(f) It is a flexible, elastic, and multipurpose
medium as readers may find page tag,
receipt, guidebook, catalogue, and
picture, calendar, which can be detached
and kept for the future reference.
DEMERITS
1.Many magazines have limited circulation
and, hence, limited prospects are
appealed.
2. Continuity or consistency is not possible
as magazines are published weekly,
monthly, or quarterly.
3. Most of the magazines are small in size;
a large advertisement is not possible.
4. Compared to newspapers, magazine is
expensive vehicle in terms of both space
and per reader costs.
 Other Print Media:

• Print media also include telephone directories, books, notebooks, reports,

community and professional directories, bus or railway tickets and
timetables, and special publications on the special events by schools,
colleges, universities, local bodies, cooperative societies, companies, or
governments.
• Local manufacturers, professionals, dealers, retailers, etc., mostly prefer
these media to advertise their products. This set of media is relatively
cheaper.
• Most of these print media are used by many people and have long life
compared to magazines and newspapers. Further, more selective
advertisement is possible. Such print media are more or less similar to
newspapers and magazines.
 Direct or Mail Advertising
1. Direct advertising can be defined as: Any form of advertising in which the
message is directed to specific individuals directly by the advertiser.
2. This medium consists of written, printed, or processed message
delivered directly to the selected buyers. This set of media is used to
appeal the target market directly.
3. In practice, it is not suitable for a large number of customers. This type of
advertisement is mostly sent personally, or by post and courier services.
4. In the age of information technology, fax, e-mail, and cell phone SMS are
also famous modes to send direct mail in a limited scale.
5. It involves a direct and personalized appeal to the customers, and, hence,
it is more effective.
6. This method is costlier as advertising message is conveyed personally. It
involves both preparation costs and distribution costs.
 Outdoor or Mural Media
1. Nowadays, outdoor advertising media are widely used for almost all types of
goods and services. Outdoor media are excessively used by manufacturers and
dealers, hotels, restaurants, academic institutions, airways, banks, insurance,
etc.
2. Cold drinks, cements, cigarettes, petroleum products, and cosmetics products
widely use these media for advertisement.
3. They are also known as mural media which includes spray painting and grafitti.
4. Those companies, which are not in position to spend huge amount on
television, radio, newspapers or magazines, may opt for these media.
5. Outdoor media do not require customers’ special time and efforts to read or
watch. Outdoor media are capable to attract mass. Number of people can be
attracted at a time.
6. People tend to overlook these media. People do not read or see such
advertisements consciously and carefully.
Factors affecting Choice of Advertising Media
1. The nature of product:
• A product that is needed by all will encourage mass media like print,
broadcast, telecast, outdoor and the like. A product needing
demonstration warrants television and screen advertising. Industrial
products find favour of print media than broadcast media. Products like
cigarettes, wines and alcohols are never advertised on radio, television
and screen.
2. Potential market:
• The aim of every advertising effort is to carry on the ad message to the
prospects economically and effectively. This crucial task rests in
identification of potential market for the product in terms of the number
of customers, geographic spread, income pattern, age group, tastes, likes
and dislikes and the like.
• If the message is to reach the people with high income group, magazine is
the best. If local area is to be covered, newspaper and outdoor advertising
are of much help. If illiterate folk is to be approached, radio, television and
cinema advertising are preferred.
3. The type of distribution strategy:
• The advertising coverage and the distribution system that the company has
developed have direct correlation. Thus, there is no point in advertising a product if it
is not available in these outlets where he normally buys. Similarly, the advertiser
need not use national media if not supported by nationwide distribution network.
4. The advertising objectives:
• Though the major objective of every company is to influence the consumer
behaviour favourably, the specific objectives may be to have local or regional or
national coverage to popularize a product or a service or the company to create
primary or secondary demand to achieve immediate or delayed action to maintain
the secrets of the house.
• If it wants immediate action, direct or specialty advertising fitting most. If national
coverage is needed, use television and news-paper with nationwide coverage.
5. The type of selling message:
• It is more of the advertising requirements that decide the appropriate choice. The
advertisers may be interested in appealing the prospects by colour advertisements.
In that case, magazine, film, television, bill- boards, bulletin boards serve the
purpose.
• If the timeliness is the greater concern, one should go in for news-paper, radio,
posters. If demonstration is needed there is nothing like television and screen media.
If new product is to be introduced, promotional advertising is most welcome.
6. The budget available:
• A manufacturer may have a very colourful and bold plan of advertising. He may be
dreaming of advertising on a national television net-work and films. If budget does
not allow, then he is to be happy with a low budget media like his news-paper and
outdoor advertising.
• Instead of colour print in magazine, he may be forced to go in for black and white.
Thus, it is the resource constraints that decide the choice.
7. Competitive advertising:
• A smart advertiser is one who studies carefully the moves of his competitor or
competitors as to the media selected and the pattern of expenditure portrayed.
Meticulous evaluation of media strategy and advertising budget paves way for
better choice.
• It is because, whenever a rival spends heavily on a particular medium or media and
has been successful, it is the outcome of his experience and tactics. However, blind
copying should be misleading and disastrous.
8. Media availability:
• The problem of media availability is of much relevance because; all the required
media may not be available at the opportune time. This is particularly true in case
of media like radio and television; so is the case with screen medium. Thus, non-
availability of a medium or a media poses a new challenge to the media planners
and the people advertising industry. It is basically an external limit than the internal
constraint.
 SALES PROMOTION
1. Sales promotion is the process of persuading a potential customer to
buy the product.
2. Sales promotion is designed to be used as a short-term tactic to boost
sales – it is rarely suitable as a method of building long-term customer
loyalty.
3. Some sales promotions are aimed at consumers. Others are targeted at
intermediaries and at the firm's sales force.
4. Sales promotion is any initiative undertaken by an organization to
promote an increase in sales, usage or trial of a product or service (i.e.
initiatives that are not covered by the other elements of
the marketing communications or promotions mix).
5. There are many methods of consumer promotion, including:
• Money off coupons – customers receive coupons, or cut coupons out of
newspapers or a products packaging that enables them to buy the
product next time at a reduced price
• Competitions – buying the product will allow the customer to take part in
a chance to win a prize
• Free gifts – a free product when buy another product
• Point of sale materials – e.g. posters, display stands – ways of presenting
the product in its best way or show the customer that the product is
there.
• Loyalty cards – e.g. Air Miles; where customers earn points for buying
certain goods or shopping at certain retailers – that can later be
exchanged for money, goods or other offers.
• Joint promotions between brands owned by a company, or with another
company’s brands. For example fast food restaurants often run sales
promotions where toys, relating to a specific movie release, are given
away with promoted meals.
• Free samples (aka. sampling) e.g. tasting of food and drink at sampling
points in supermarkets.
• Cause-related and fair-trade products that raise money for charities, and
the less well off farmers and producers, are becoming more popular.
•  Finance deals – for example, 0% finance over 3 years on selected vehicles.
• Exchange scheme: In this case, the customer exchanges the old product
for a new one. The old product’s exchange value is deducted from the
price of the new product. 
6. Techniques of Trade Promotion
• A trade allowance is when manufactures give retailers an allowance or a
refund on their products. In exchange the retailer agrees to promote the
manufacturer’s products within their stores. This is sometimes referred to
as a slotting allowance if the brand is granted special in-store placement
(e.g. a high traffic shelf position.)
• Cooperative advertising simply refers to an agreement between
manufacturers and resellers to share the advertising cost for the
manufacturer’s brands. This is often seen is a catalog produced by a
retailer that is highlighting brands for sale within the store.
• Gifts and premium money refer to gifts such as free products or monetary
rewards which are given to resellers by manufacturers if they resellers are
successful in purchasing and or reselling a particular volume of a product.
It is similar to a bonus or a commission being paid to a salesperson.
• Point-of-purchase (POP) display material-Brands will often provide point-
of-purchase display material – usually known as POP – such as posters,
signage, videos, portable shelving, and so on.
 Objectives of Sales Promotion

 To increase sales by publicity through the media which are

complementary to press and poster advertising.
 To disseminate information through salesmen, dealers etc., so as to
ensure the product getting into satisfactory use by the ultimate
consumers.
 To stimulate customers to make purchases at the point of purchase.
 To prompt existing customers to buy more.
 To introduce new products.
 Advertising vs Promotion

BASIS ADVERTISING SALES PROMOTION

Time Long term
Definition One-way communication of a
persuasive message by an
identified sponsor, whose purpose
is non-personal promotion of
products/services to potential
customers.
Short term
A Promotion usually involves an
immediate incentive for a buyer
(intermediate distributor or end
consumer). It can also involve
disseminating information about
a product, product line, brand, or
company.

Price Expensive in most cases Not very expensive in most cases.

Suitable for Medium to large companies Small to large companies
Sales Assumption that it will lead to Directly related to sales.
sales

Purpose Increase sales, brand building. Increase sales.

Result Slowly very Soon
 Publicity
• Publicity is also a way of mass communication. It is not a paid form of mass
communication that involves getting favourable response of buyers by placing
commercially significant news in mass media
• . Publicity is not paid for by the organisation. Publicity comes from reporters,
columnists, and journalists. It can be considered as a part of public relations.
• Publicity involves giving public speeches, giving interviews, conducting
seminars, offering charitable donations, inaugurating mega events by film
actors, cricketers, politicians, or popular personalities, arranging stage show,
etc., that attract mass media to publish the news about them.
• Publicity is undertaken for a wide range of purposes like promoting new
products, increasing sales of existing product, etc. It also aimed at
highlighting employees’ achievements, company’s civic activities, pollution
control steps, research and development successes, financial performance, its
progress, any other missionary activities, or social contribution.
 PUBLIC RELATIONS
• Marketing public relations refers to narrowly focused public relations activities
that directly support marketing goals.
• Marketing public relations involves an organization’s relationships with consumers
or other groups about marketing concerns and can be
either proactive or reactive.
• With proactive marketing public relations, the marketer takes the initiative and
seeks out opportunities for promoting the firm’s products, often including
distribution of press releases and feature articles. It is a powerful marketing tool
since it adds news coverage that reinforces direct promotion activities. Although
some publicity happens naturally, more typically a “buzz” needs to be created by
a firm’s publicists. 
• Reactive marketing public relations responds to an external situation that has
potential negative consequences for the organization. The goal in this case is to
manage the flow of information to address concerns so that consumers don’t
panic and distributors don’t abandon the product.
 Objectives of PR
• Public relations specialists need to operate at many levels to ensure that
various publics of a company receive coordinated, positive messages
about the firm.
• These groups include customers, suppliers, employees, the media,
stockholders, and government regulators.
• Companies that practice integrated marketing communication strategies
know that public relations strategies are best used in concert with
advertising, sales promotion, and personal selling in order to send a
consistent message to customers and other stakeholders.
• As part of the total IMC plan, public relations departments may perform
any or all of the following functions to achieve communications objectives:

1. Public Affairs – Building and maintaining national or local community

relations.
2. Lobbying – Building and maintaining relations with legislators and
government officials to influence legislation and regulation.
3. Investor Relations – Maintaining relationships with shareholders and
others in the financial community.
4. Development – Public relations with donors or members of nonprofit
organizations to gain financial or volunteer support.
5. Location PR – Enhancing the image of a city, region, or country.
6. Press Relations – Creating and placing newsworthy information in the
news media to attract attention to a person or product.
7. Product Publicity – Publicizing specific products to consumers as well as
other organizations.  
• Examples of tools used in Public Relations are attendance at public
events, press releases, sending newsletters, blogging, social media
marketing etc.
 PERSONAL SELLING
• Personal selling is a face-to-face contact between the salesman and the
prospect; through which the salesman persuades the prospect, to
appreciate the need for the product canvassed by him – with the
expectation of a sales-transaction, being eventually materialized.
 Features of Personal Selling:

(i) Personal selling involves a face-to-face contact between the salesman and the
prospect.
(ii) It is an art of persuading the prospect, to appreciate the need for the product
canvassed by the salesman, in a democratic, cordial and social manner.
(iii) In personal selling, the emphasis is on the development of permanent and
lasting relations with prospects If a prospect is won; a sales transaction might
materialize with him subsequently in future. Obtaining an immediate sale may
be the natural ambition of a salesman; it should never be his target.
(iv) A salesman sells product, by first selling his own idea or viewpoint to the
prospect. Personal selling, therefore, is the art of convincing the prospect and
influencing his mind, in a favourable way.
(v) Personal selling requires a flexible approach; on the part of the salesman i.e.
the salesman should modify his approach in persuading the prospect, in view
of the psychology, needs and resources of the prospect.
(vi) The ultimate goal of personal selling is mutual satisfaction of the interests of
both – the salesman and the prospect.
PERSONAL SELLING PROCESS
 Factors affecting Promotion Mix
1. Type of Product:
• Type of product plays an important role in deciding on promotion mix.
Product can be categorized in terms of branded products, non-branded
products, necessity products, luxury products, new products, etc. All these
types of products need different promotional tools.
• For example, advertising is suitable for the branded and popular products.
Personal selling may be fit for non-branded products.
2. Use of Product:
• Product may be industrial product, consumable and necessity product, or
may be luxurious product that affects selection of promotion tools and
media.
• For example, advertising and sales promotion techniques are widely used
for consumer goods while personal selling is used for industrial goods.
3. Complexity of Product:
Product complexity affects selection of promotional tools. Personal selling is
more effective for complex, technical, risky, and newly developed products as
they need personal explanation and observation. On the other end, advertising is
more suitable for simple and easy-handled products.

4. Purchase Quantity and Frequency:

• Company should also consider purchase frequency and purchase quantity while
deciding on promotion mix. Generally, for frequently purchase product,
advertising is used, and for infrequently purchase product, personal selling and
sales promotion are preferred. Personal selling and advertising are used for
heavy users and light users respectively.

5. Fund Available for Market Promotion:

• Financial capacity of company is a vital factor affecting promotion mix.
Advertising through television, radio, newspapers and magazines is too costly to
bear by financially poor companies while personal selling and sales promotion
are comparatively cheaper tools.
6. Type of Market:
• Type of market or consumer characteristics determine the form of
promotion mix. Education, location, income, personality characteristics,
knowledge, bargaining capacity, profession, age, gender, etc., are the
important factors that affect company’s promotion strategy.

7. Size of Market:
• Naturally, in case of a limited market, personal selling is more effective.
When market is wide with a large number of buyers, advertising is
preferable. Place is also an important issue. Type of message, language of
message, type of sales promotion tools, etc., depend on geographical
areas.

8. Stage of Product Life Cycle:

• Product passes through four stages of its life cycle. Each stage poses
different threats and opportunities. Each stage needs separate marketing
strategies. Each of the promotional tools has got different degree of
suitability with stages of product life cycle.
• It can be concluded that, in normal situations:
(1) Advertising, personal selling, and, even, sales promotion are used during
the introduction stage. However, advertising is given more priority,
(2) More intensive advertising and sales promotional techniques are used
during the second stage,
(3) More rigorous advertising along with personal selling are followed in the
third stage, and
(4) Company prefers to curb the expenses in forth stage, and promotional
efforts are reduced.

9. Level of Competition:
• Promotional efforts are designed according to type and intensity of
competition. All promotional tools are aimed at protecting company’s
interest against competition. Level of promotional efforts and selection of
promotional tools depend on level of competiton.
10. Promotional Objectives:
• It is the prime factor affecting promotional mix. Different objectives can be
achieved by using different tools of promotional mix.
• If company’s objective is to inform a large number of buyers, advertising is
advisable. If company wants to convince limited consumers, it may go for
personal selling.
• Even, when company wants to influence buyers during specific season or
occasion, the sales promotion can be used.
• Some companies use publicity to create or improve brand image and
goodwill in the market.