Promotion

What do we mean by PROMOTION?

• In marketing, promotion refers to any type of

marketing communication used to inform or
persuade target audiences of the relative
merits of a product, service, brand or issue. It
helps marketers to create a distinctive place in
customers' mind.
 How does it help …
Promotion keeps the product in the minds
of the customer and helps stimulate
demand for the product.

The ongoing activities of advertising,

sales Promotion, Public Relations and
Personal Selling are often considered
aspects of promotions.
PROMOTION MIX
 Promotion MIX
• The Promotion Mix is the integration of Advertising,
Personal Selling, Sales Promotion, Public Relations
and Direct Marketing. The marketers need to view
the following questions in order to have a balanced
blend of these promotional tools.
• A promotion mix is a set of different marketing
approaches that marketers develop to optimize
promotional efforts and reach a broader audience.
The marketer’s task is to find the right promotion mix
for a particular brand.
 Promotion MIX Means
• .
Promotion MIX
 Sales promotions ideas & examples

• https://blog.bannersnack.com/13-sales-prom
otion-techniques-case-studies/

• Case study : https://www.sales-

promotions.com/case-studies/
 Why is using a promotion mix important?

• Improves the effectiveness of promotional

campaigns
• Helps segment the audience
• Improves communication with clients
• Informs subscribers
• Stands out from the crowd

• Note: Please add more points to this slide as per

your understanding in the class 
 Explanation of the previous slide
• Improves the effectiveness of promotional campaigns. Promotion is a crucial part of any business, so
companies develop a promotion mix, putting all efforts to make promotions at the right place, at the right
time, and to the right audience. It helps one get the most out of their marketing resources by optimizing their
budget and saving time.
• Helps segment the audience. To develop a compelling promotion mix, a company needs to identify its target
audience. Potential subscribers may include various groups of people who have something in common, for
example, age, gender, preferences, etc., and they all require an individual approach. A promotion mix is a key
method for delivering a relevant promotion message via the most suitable channel for each segment.
• Improves communication with clients. Companies develop a promotion mix trying to speak their consumers’
language. If prepared correctly, it helps build trust between the brand and its customers. This is a crucial
factor in lead nurturing and customer retention. For example, automated email campaigns help achieve these
goals by responding to people’s actions instantly.
• Informs subscribers. Some promotions, on Instagram for example, aim to show the product from the best
angle, and others, like SMS, emphasize the advantages of local services. When using a promotion mix,
companies define the best ways to educate people about the products and services they provide.
• Stands out from the crowd. People are bombarded with all sorts of advertising at every turn. With a
promotion mix, it is possible to stand out from the crowd without creating chaos in your customers’ heads.
Successful companies make quality prevail over quantity, promoting their product or service at the right place
and right time.
 Advertising
• This is a non-personal promotion of products
and services. Marketers use advertising as a
vital tool for increasing brand awareness.
Advertisers show promotions to masses of
people using email, webpages, banner ads,
television, radio, etc.
 TASK

Let’s Discuss advantages and

disadvantages !!
 The distinguishing features of advertising
are

• (i) Paid Form – Cost of advertising has to be

borne by the marketer or the sponsors, thus it
is a paid form of communication.
• (ii) Impersonality – There is no face-to-face
contact between the advertiser i.e., the seller
and the prospect i.e., the target customer. It
creates a monologue, therefore, referred as an
impersonal method of promotion.
 Continue…

• (iii) Identified Sponsor – Advertising is

undertaken by an individual or a company
who makes advertising efforts and bears the
cost involved. The most common advertising
means are- newspapers; magazines;
television; radio; banners; pamphlets;
hoardings etc.
 More can be referred :
• https://www.businessmanagementideas.com/
marketing-management/promotion-
mix/20846
 Merits of Advertising:

• Advertising as a medium of communication provides the following benefits:

• (i) Mass Reach – It helps business to reach a large number of potential
customers spread over a wide geographical area.
• For example, advertising in a leading newspaper will reach all the readers across
the country.
• (ii) Enhancing Customer Satisfaction – It creates confidence amongst potential
customers about the quality and features of products hence they feel satisfied
while purchasing the product.
• (iii) Expressiveness – Use of computers, artistic designs and graphics make
advertising a forceful medium of communication. It makes even simple products
look attractive and thus persuade potential consumers to become customers.
• (iv) Economy – It is the most economical way to communicate with a large
number of potential customers spread over a wide geographical area.
• (v) Legitimacy – Advertising involves giving a message publicly thus it creates
confidence amongst the customers that the information provided is true.
 Limitations of Advertising:
(i) Less forceful – Since advertising is impersonal, there is no direct
communication between marketer and the potential customer.
The marketer may give a satisfactory message but there is no
compulsion on the prospective customers to pay attention.
(ii) Lack of Feedback – In the absence of immediate and accurate
feedback mechanism, it is difficult to evaluate the effectiveness of
the message delivered through advertisement.
(iii) Inflexibility – The message delivered through advertisement is
standardised thus lacks flexibility. It cannot be customised to meet
requirements of specific customer groups.
(iv) Low effectiveness – The advertising message reaches a large
number of people, hence it is difficult to ensure that the message
is heard by potential customers. This adversely affects the
effectiveness of the advertisement.
 Direct Selling
• This is a one-to-one communication between a
sales representative and a potential customer.
Direct selling influences people to decide to buy
certain products or services.
• It is one of the most effective ways of promoting
your brand because the sales rep can tailor the
promotion precisely to those who are most
likely to make a purchase. On the other hand,
this is the most expensive form of sales because
companies need to pay for one person’s time.
Companies who are doing direct selling

Think
• Tupperware
• Oriflame
• Amway India Enterprises Private Limited. .
• Avon

• NAME FEW MORE NOW………

 Personal selling
• A process of helping and persuading one or
more prospects to purchase a good or
service or to act on any idea through the
use of an oral presentation. Examples: Sales
presentations, sales meetings, sales training
and incentive programs for intermediary
salespeople, samples, and telemarketing.
Can be face-to-face selling or via telephone
 Features of Personal Selling:

(i) Personal Form – It is a direct face-to-face

dialogue between the seller and the buyer.
(ii) Development of Relationship – The direct
interaction with the buyer helps salesperson
to develop personal relationship which is
important for making a sale.
(iii) Paid form – Cost of personal selling has to
be borne by the marketers.
 Merits of Personal Selling:

• Personal Selling has the following advantages:

• (i) Flexibility – The direct interaction with the buyer enables
the salesperson to present products in accordance to the
specific needs of the buyer.
• (ii) Direct Feedback – Face-to-face communication facilitates
direct feedback from the customer and thus helps the
salesperson to adapt the changes as required by the
customer.
• (iii) Minimum wastage – The contact with target customers
is made after their interest in the product. This minimises
the wastage of selling efforts.
 Sales promotion -
• This is a set of short-term activities that are designed to encourage
immediate purchase. Sales promotions are a campaign that uses
time-sensitive offers — sales, discounts, coupons, etc., to engage
existing consumers and bring in a larger audience. Many companies
make this a core component of their marketing efforts, though
sometimes it’s the most annoying type of communication for
people.
• Examples: Coupons, sweepstakes, contests, product samples, rebates,
tie-ins, self-liquidating premiums, trade shows, trade-ins, and
exhibitions.
• Sales promotion usually supports other promotional activities like
advertising, personal selling, publicity etc. to increase sales in the
short run. Every company designs sales promotion activities specific
to customers, tradesmen, middlemen or dealers and sales person.
 Definition of Personal Selling

• American marketing association defines sales

promotion as, “Those marketing activities
other than personal selling, advertising and
publicity that stimulate consumer purchasing
and dealer effectiveness such as display shows
and exhibitions, demonstrations and various
non-­recurrent selling efforts not in the
ordinary routine.”
 Examples of Sales Promotion:

i. For customers – Free samples, cash discounts,

contests etc.
ii. For middlemen – Cooperative advertising,
dealer discount, dealer incentives or schemes
etc.
iii. For salesperson – Bonus, incentive or
commission on sales, appreciation awards,
free holidays, contests etc.
 Merits of Sales Promotion:

• Sales promotion has the following advantages:

• (i) Attention Value – Sales promotion activities attract attention
of the people because incentives are related with sales.
• (ii) Useful in New Product Launch – The sales promotional
activities induce customers to break away from their regular
buying behaviour and try new products. Thus, sales promotion
tools help to introduce new products.
• (iii) Synergy in Total Promotional Efforts – Sales promotional
activities supplement the other promotional tools like
advertising, personal selling etc. to make the overall
promotional efforts of the firm effective.
• Direct Marketing is a form of advertising that allows businesses
and nonprofits to communicate straight to the customer, with
advertising techniques such as mobile messaging, email,
interactive consumer websites, online display ads, fliers, catalog
distribution, promotional letters, and outdoor advertising.
 Limitations of Sales Promotion:

• Sales promotion activities help to make sealer promotional

tools effective but there are certain limitations as well.
• (i) Reflects Crisis – Frequent sales promotional activities
may give an impression to customers that the firm is
unable to create natural demand for its products or there
are not too many takers for the product. It may send a
message that the company is clearing stocks.
• (ii) Spoils Product Image – Too many promotional activities
may affect the product’s image. Customers’ may feel that
the product may not be of good quality or the company
may be trying for distress sale.
 Scratch your heads… !!!!
• Point out the commonly used sales promotion
methods??
 Point out the commonly used sales promotion methods??

• Rebates
• Discounts
• Refunds
• Product combinations
• Quantity gift
• Instant draws
• Lucky draws
• Sampling
• PUBLIC relation: This type of promotional method
determines the way people treat the brand. Companies using PR try
to build a firm and attractive brand image by planting interesting
news stories about their activities in the media. Public relations are
not fully controlled by the company, though, as some reviews and
webpages may negatively highlight the brand. If a company
adequately solves these issues, people will reward them with
positive word-of-mouth consideration
Corporate image Corporate image may also be considered as
the sixth aspect of promotion mix. The image of an
organization is a crucial point in marketing. If the reputation of
a company is bad, consumers are less willing to buy a product
from this company as they would have been, if the company had
a good image.

Sponsorship is sometimes added as an seventh aspect

Promotion is one of the market mix elements, and a term used
frequently in marketing. The specification of five promotional mix
or promotional plan. These elements are personal selling,
advertising, sales promotion, direct marketing, and publicity

Selling through a person to person communication process.

This direct and inter personal communication gives immediate
feedback from the receiver. It plays an important role in
industrial firms. Personal selling is vary from firm to firm
depending on following
1. Nature of the product or service
2. Size of the organisation
3. Type of industry
 Definitions:
“Personal selling consists of contacting prospective
buyers of product personally”
----Richard
“The oral presentation in a coversaton with one or
more prospective purchasers for the purpose of
making sales” ---- Americal Marketing Association
 Provider stage (Providing products to buyers)
Persuade stage (Make people to beleave the sellers)
Propector stage (Reacting the buyers who
are interest to sellers offering)
Problem solver stage (customersSolve the problems
of buyers and seller)
Procreator stage (match the needs of s)
 Sellers & Buyers in direct contact with one another
Personal selling involves conversation b/n sellers and
prospective buyers regarding quality, price, use etc
Personal selling involves the sale of goods and
services personally
In personal selling, sellers wants to convince the
buyers about the goods and services which he wants to
sell
Personal selling is the best means of two –way
communication continously b/n the enterprise andits
customers
 Sales promotion refers to those activites other then
personal selling, advertisement and publicity that
stimulate consumers purchasing and dealer
effectiveness, such as display shows and exhibitions,
demonstrations and various non recurrent selling
efforts not in ordinary routine

Media and non-media marketing communication are

employed for a pre-determined, limited time to increase
consumer demand, stimulate market demand or
improve product availability. Examples: Coupons,
sweepstakes, contests, product samples, rebates,
premiums, trade shows, trade-ins, and exhibitions
 Definitions:
“sales promotion is a marketing discipline that utilizes a variety
of incentive techniques to structure sales related programs
targeted to consumers, trade, and sales levels that generatea
specific measurable action or response for a product or service”
------- Council of Sales Promotion

“Materials that act as a direct inducement, offering added value,

or incentive for the product, to resellers, sales persons or
consumers. Designed for immediate (short term) increase in
product sales”.

“A direct induscement that offers an extra value or incentive for

the product to the sales force, distributors, or the ultimate
consumer with the primary obejective of creating an immediate
sale”
 Obtaing trail and repurchase
Increaseing consumtion of an established brand
Defending current customers and increasing short term
profits Targeting current customers
Targeting a specific market segment
Enhancing advertising and marketing
efforts

Increasing Competition
Customers have become more price sensitive
Consumer Acceptance
Advertising has become more expensive and less effective
Sales promotion geneally create an immediate positive
impact
on sales
Sales promotion speciality are available
Samples:
A free sample is a portion of a product given to consumers at no
cost for their trial with the aim of driving product adoption.
Ex: Clinic+ Provides its shampoos in big bazar and
attached with times of India
Coupons:
Usually reduce the purchase price or offered as cash. A coupon
is a ticket or document that can be exchanged for a financial
discount or rebate when purchasing a product.
Premiums(Gifts):
Premiums are prizes, gifts, or other special offers consumer
receive when purchasing products. Such premiums are gifts
individuals receive for buying a product.
Contests:
Contests and sweepstakes are two forms of sales promotions
which attract consumers by offering them the chance to win a
valuable prize. Contests require skill; sweepstakes generally
only reward luck.

Contests normally require the participant to perform some type

of activity and the winner is selected based on who performs
the best or provides the most correct answers

Sweepstakes entice consumers to submit free entries into

drawings of chance (not skill) that are tied to the product or
service wherein the featured prizes are given away by
sponsoring companies
Contests:
Contests:
Refunds & Rebates:
A rebate is an amount paid by way of reduction, return, or
refund on what has already been paid or contributed.
Manufacturer or sales-promotion strategy that promises to
refund part of the retail sales price to the consumer upon
receipt of proof of purchase; also called rebate offer.
Bonus Packs:
Bonus packs offers the consumer an extra amount of a product
at the regular price by providing larger containers or extra
units. Ex: Colgate offers 25gm extra on their 200 gm pack at
the same price
Price-off deals:
This is the direct price-off deal offered by manufacturer by
reducing the price of a brand. Price-off reductions are typically
offered right on the package through specially marked price
packs. Ex: Nature fresh edible oil 1 litre pack is available at Rs.
55/- where as the MRP is Rs.70/-
Frequency Programs:
One of the fastest growing areas of sales promotion is the use of
frequency programs also known as continuity or loyality
programs. Consumer get points on every purchase and get the
offers from the companies as points accumulate. Airline
companies introduced frequently flyer programs, where the
customer gets points on every trip and gets discount in the form
of extra miles or in the for of price reductions.
Event Marketing:
Event Marketing is a type of promotion where a company or
brand is linked to an event or where a themed activity is
developed for the purpose of creating experience for consumer
and promoting a product or service
Trade oriented sales promotion techniques:
These techniques are designed to get the trade support. These
are targeted to merketing intermediaties such as wholesalers
and retailers. The objectives of this program are
1. Obtaining distribution and support for new products
2. Maintaining support for established brands
3. Encouranging retailers to display established brands and
4. Building retail inventories
Types:
a) Contests and incentives
b) Trade allowances
c) Displays and Point of Purhcase Materials(POP)
d) Sales taning Programs
e) Trade Shows
f) Cooperative Advertising
Contests and incentives:
Manufacturere may develop contests or special incentive
programs to stimulate greater selling effort and support from
resellers. Contests or incentive programs can be directed toward
managers, sales people who work for a wholesaler, distributor
as well as retailer

These programs may involve cash payments made directly to

the retailer’s or wholesaler’s sales staff to encourage them to
promote and sell a manufactures product
Trade allowances:
A discount or deal offered to retailers or wholesalers to
encourage them to stock, promote, or display the
manufacturer’s products. These allowances may be in the form
of buying allowances, promotional or display allowances, and
slotting allowances. Buying allowances are offered to resellers
in the form of price discount on the goods ordered during a
fixed period. Retailers get promotional allowances for
merchandising support. Slotting allowances also known as
stocking allowances, or introductory allowances are fees
received by retailers for give a slot to accommodate the new
product.
Displays and Point of Purhcase Materials(POP):
Point of purchase displays are an important promotional tool
because they are more effective in store merchandising efforts.
These POP materials include banners, posters, shelf cards,
motion pieces, stand up racks.

Sales Traning Programs:

Another form of manufacturer sponsored promotional
assistance is conducting sales taning programs for reseller
personnel. Many products sold at the retail shops require
knowledge sales people who can provide consumers with
information about the features, benefits, and advantages of
various brands and models
 How to Use Send Pulse for Promotion

• Email
• SMS
• Web push notifications
• Messenger marketing
• Note: more can be read at
https://www.economicsdiscussion.net/marke
ting-management/elements-of-promotion-mix
/32325
• And off course nothing can beat up the power
of books, please keep reading.