Module – III , Promotion

•Advertising
•Sales Promotion
•Personal Selling
•Public Relation
•Publicity
•Propaganda
 MARKETING COMMUNICATION MIX
Marketing Communication Mix/Promotion mix is the
"Promotion" of the Marketing Ps and covers every method
and medium of communicating with your target audience.

Sales
Advertising Promotion

Marketing Public
Publicity Communication Relation
Mix

Personal
Propaganda
Selling
Advertising – A definition

It can be defined as the paid form of non-personal

communication and presentation of ideas, goods and
services by an identified sponsor.

Defining Modern Advertising

• Paid persuasive communication

• Uses non-personal / mass media to reach broad audiences

• Connects an identified sponsor with a target audience

 Advertisement “Defined”

“Ads are like people …

You can see most people a hundred times
and not remember them,
but meet someone you like once,
and you will never forget them”

Sir frank Lowe

 Advertising and Advertisement

*Advertising refers to the art and job of

presenting goods and services etc. It is a
process.
* But the term advertisement refers to the
form in which the actual massage appears.  
*Advertising is made through advertisements  
 Five Ms of Advertisement
• Advertising is called direct communication with
customers which includes following five Ms

1. Mission: It states the objectives of the advertising and

the steps to achieve the objectives. It also includes
the sales goal of the company.

2. Money: It gives an idea that how much money should

be spent by the company for the advertisement.
Factors to be considered for this are stage of product
life cycle, market share and consumer base,
competition, advertisement frequency and product
substitutability.
3. Message: Message includes what message should
be given. It includes message generation, message
evaluation and selection, message execution and
social responsibility review.

4. Media: It includes which media should be used for

the advertisement. It also includes reach,
frequency, impact of the advertisement. It also
contains major media types, media vehicles, media
timing etc.

5. Measurement: it is nothing but evaluation of the

results. It measures communication impact and
sales impact by an advertisement.
 Advertising Objective
Informing

Persuading

Reminding

Reinforcement

Assisting Other Company Efforts 8

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 Advertising Objective
Informing
• Makes consumers aware, educates them about
the features and benefits, and facilitates the
creation of positive brand images
• Facilitates the introduction of new brands and
increases demand for existing brands

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 Advertising Objective

Persuading

• Persuades customers to try advertised

products and services
• Primary demand:
demand
• Secondary demand:
demand

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 Advertising Objective
Reminding

• Keeps a company’s brand fresh in the

consumer’s memory
• Influences brand switching

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 Advertising Objective
Reinforcing

• It seeks to assure current purchasers that

they have made the right choice. 

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 Advertising Objectives

Assisting Other Company Efforts

• Advertising is just one member of the

marketing communications team
• Sometimes, an assister that facilitates other
company efforts in the marketing
communications process
• Examples?
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FUNCTIONS OF ADVERTISING:-

Advertising isn’t an end but a

means to an end – A tool that advertisers can use
to reach their goals.

1. Stimulating demand
2. Strengthen other promotion mix element
3. Cut cost
4. Lower price
5. Competitive weapon
6. Create differentiation
 ADVERTISING MESSAGE

Message consist of idea together with

other relevant information. The idea spots the
uniqueness of the product to win a place in the
consumer mind. Information gives detail of the
product which helps in taking the final decision.
Advertising message design identifies
the consumers perceptions about the products.
 Message Structure
Most advertising messages share common components
within the message including:
• The Appeal – This refers to the underlying idea that captures
the attention of a message receiver.  Appeals can fall into
such categories as rational, emotional, fearful, humorous
etc.
• Value Proposition – The advertising message often contains
a reason for customers to be interested in the product which
often means the ad will emphasize the benefits obtained
from using the product.
• Slogan – To help position the product in customer’s mind
and distinguish it from competitors’ offerings,
advertisements will contain a word or phrase that is
repeated across several different messages and different
media outlets.
 MESSAGE GENERATION
Message generation can be done in the following
ways:
• Inductive: By talking to consumers, dealers,
experts and competitors. Consumers are the
major source of good ideas. Their feeling about
the product, its strengths, and weaknesses gives
enough information that could aid the Message
generation process.
• Deductive: John C. Meloney proposed a
framework for generating Advertising Messages.
 MESSAGE GENERATION
According to him, a buyer expects four types of
rewards from a product:

• Rational
• Sensory
• Social
• Ego Satisfaction.
 Advertising Media

A Media is a vehicle for carrying the sales

message of an advertiser to the prospect.
It is indeed a vehicle by which advertiser
convey their message to a large group of
prospect and thereby closing the gap
between producer and consumer.
 Types of media
• Above - the - line Media:- The recognized agencies
get commission from these medias. Press, TV,
Outdoor, Posters , cinema and radio comes under
these category.
• Below – the – line Media:- Those who don’t give
commission to the ad agency. The agency adds a
percentage as a handling or profit charge or
charge a service fee. The examples are: Direct
mail, POS, sales promotion, exhibition and sales
literature
 Major Ad Media Categories:
– Print
• Newspapers
• Magazines
• Out-of-Home
– Broadcast
• Radio
• Television
• Narrow-cast Media
– Outdoor

– Transit
– Other Media
• Direct Mail, Yellow Pages, etc
• New Media / Specialty Media
• Direct Advertising / Direct Marketing
• Internet
 Major Ad Media Categories:
– Print
• Newspapers
• Magazines
• Out-of-Home
– Broadcast
• Radio
• Television
• Narrow-cast Media
– Outdoor

– Transit
– Other Media
• Direct Mail, Yellow Pages, etc
• New Media / Specialty Media
• Direct Advertising / Direct Marketing
• Internet
 NEWSPAPER

1. The primary role of newspaper is prompt

delivery & detailed coverage of news and
other information.
2. It incorporates interesting features for
readers
3. Detailed message can be processed at the
readers convenient pace.
4. These are high-involvement media.
 NEWSPAPER

Types of Newspaper:-
1. Classified advertising
2. Display advertising
3. Special interest advertising
 Magazines
1. Availability of wide variety of magazines
make them quite appealing to a large no. of
advertisers.
2. It can cover a wide range & variety of
customers.
3. It can allow detailed presentation with
beautiful reproduction & colorful
photographs.
4. It is comparatively more high involvement
than newspaper.
 Magazines
Types of Magazines:-
1. Consumer Magazines
* General interest magazine
* Women / Lifestyle magazines
* Film Magazine
* Special interest magazine
2. Business Publication
*General business
* Professional
*Trade & Industrial
* Institutional publication
 RADIO
1. Radio is used to be a premier mass medium
for audience and advertiser
2. Radio can deliver ad messages to a very large
number of audience at their convenience
across the length and breadth of our country
 TELEVISION
1. Television is believed to be the most
authoritative, influential, and exciting of all
medium.
2. It is the most ideal medium for advertising
because of its ability to combine visual images,
sound, motion and colour.
3. It provides advertiser most creative &
imaginative ad message as compared to any
other medium.
 Outdoor advertising
1. It is the oldest medium existed as early as 5000 years
ago in Babylon, Greece and Egypt .
2. Outdoor ad can generate considerable reach and
frequency levels at a fraction of cost of mainstream
media.
3. It can generate immediate brand name recognition
when introducing anew product and complement
other forms of advertising.
4. To remind customers about established and
recognized brands of the marketers
 Transit Advertising

1. Transit ad is targeting millions of people who

are exposed to various modes of transport.
2. The rate structure varies depending on the
site, period and size of display.
3. A very large part of ambulatory population
exposed to transit advertising
 Budgeting Considerations
in Practice

• What is the Ad objective?

• How much are competitors spending?
• How much money is available?

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 Advertising Budget

A budget is a forward plan of any activity expressed

in terms of rupees and budgeting is the process of
this planning.

Requirement of an advertising budget:-

1. Ad budget is the translation of an advertising plan
into rupees.
2. This is the important source for management to get
knowledge regarding ad.
3. It serves as a decision-making as well as controlling
tool for the top management.
 Budgeting Methods

• Percent-of-Sales Budgeting
• Objective-and-Task Method
• Competitive Parity Method
(match competitors method)
• Affordability Method

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 Percentage-of-Sales Budgeting

• A company sets a brand’s advertising

budget by simply establishing the budget as
a fixed percentage of past or anticipated
sales volume
• Criticized as being illogical.

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 Objective-and-Task Method

• The most sensible and defendable

advertising budgeting method
• Specify what role they expect advertising
to play for a brand and then set the budget
accordingly

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The Competitive Parity Method

• Sets the ad budget by basically following

what competitors are doing

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 Affordability Method
• Only the funds that remain after budgeting
for everything else are spent on advertising
• Only the most unsophisticated and
impoverished firms
• However, affordability and competitive
considerations influence the budgeting
decisions of all companies

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 Sales Promotion
Sales promotion consists of a diverse
collection of incentive tools, mostly short term designed to
stimulate quicker or greater purchase of particular product
or services by consumer or the trade.
Sales promotion is the act of influencing
customer/consumer perception and behaviour to build
market share and sales that reinforce brand image
Sales promotion is a term that is closely
linked with direct and online marketing, but has its
origins in FMCG
 Sales Promotion
The main tools falling into this category include:

1. Samples
2. Redeemable coupons
3. Cash-back offers
4. Cents-off deals or price packs
5. Premium offers
6. Advertising specialties
7. Patronage rewards
8. Point-of-purchase (POP) promotions
9. Contests and games of chance and skill
Selecting Sales Promotion
Tools
Contests and games
Samples
of skill and chance

Point-of-
Purchase coupons
Sales Promotion Tools
Patronage Cash-back
Rewards offers

Advertising Cents-off deals

Specialties or Price Packs

Premiums
 Purpose of Sales Promotion
1.Sellers use sales promotions to attract new triers,
2. to reward brand-loyal customers and thereby retain
them,
3. to reduce the time between purchases, and even to
turn light users into medium or heavy users.
4. The aim might also be to regain past purchasers who
have ceased buying.
New triers of a product category fall into one of
three groups: 
non-users
loyal users of another brand
brand switchers
 Developing Sales Promotion
Programs
• The marketer must decide:
– The size of the incentive.
– Conditions for participation.
– Duration of promotion
– Selection of proper vehicle to carry the program.
– Decide promotion budget
– How to evaluate the promotions program through
surveys and/or experiments etc.
 Personal Selling
• Sales personnel serves as the company’s personal
link to the customers.
• The people who do the selling go by many names,
such as key account managers, account executives,
sales consultants, sales engineers, agents, district
managers, and account development reps.
• Salespeople are involved in two-way personal
communication with customers with whom they
build long term relationships and brings back profit
to the organization.
 The Role of the Sales force
• The sales force is a critical link between the company and its
customers.
• They find and develop new customers and communicate
information about the company’s offerings.
• They sell products, answer objections, negotiate prices and
terms and close sales.
• Sales people change their approach by understanding
customers psychology and produce profit for the company by
satisfying customers.
• They should be able to understand sales data, measure market
potential, gather market intelligence and develop marketing
strategies and plans.
DESIGNING & MANAGING SALESFORCE:

Designing S.F. S.F. S.F.

S.F. S.F.
Sales Force Structure Size Compensation
Objective Strategy

Recruiting & Supervising Motivating Evaluating

Managing Training
Selecting Sales force Sales force Sales force
Sales Force Sales force
Sales force

Relationship
Improving Training in Negotiation Building
Sales force Selling Skill Skill
Effectiveness Technique
Major steps in effective selling
 PUBLICITY
• Publicity is the deliberate attempt to manage
the public's perception of a subject. The subjects
of publicity include people, goods and services,
organizations of all kinds, and works of art or
entertainment.
• From a marketing perspective, publicity is one
component of promotion & one element of the
promotional mix But the publicist cannot wait around
for the news to present opportunities. They must also
try to create their own news.
 About Publicity
• “Publicity involves supplying information that is factual,
interesting, and newsworthy to media such as radio,
television, magazines, newspapers, and trade journals“
• Publicity is information from an outside source that is
used by the media because the information has news
value.
• It is an uncontrolled method of placing messages in the
media because the source does not pay the media for
placement.
• Publicity is typically generated from an organization's
public relations department and its goal is to gain media
coverage.
 Examples of publicity:
• Art exhibitions
• Event sponsorship
• Arrange a speech or talk
• Make an analysis or prediction
• Conduct a poll or survey
• Issue a report
• Take a stand on a controversial subject
• Arrange for a testimonial
• Announce an appointment
• Invent then present an award
• Stage a debate
• Issue a commendation
 Importance of Publicity
• The advantages of publicity are low cost, and
credibility (particularly if the publicity is aired in
between news stories like on evening TV news casts).
• Publicity draws on several key themes including
birth, love, marriage and death. These are of
particular interest because they are themes in
human lives which feature heavily throughout life.
• Ethical performance will help a company prevent or
counteract negative publicity and will give a
company, organization, or individual a competitive
edge in achievement of goal.
• Effective publicity can persuade customers to
buy a product or service, bring more customers
into a store, increase attendance at a special
event, and help clarifying misconceptions.
 Public Relation
• A public is any group that has an actual or
potential interest in or impact on a company’s
ability to achieve it’s objectives.
• Public relation (PR) involves a variety of
programs designed to promote/protect a
company’s image or it’s individual products.
• The old name of MPR was publicity.
 Activities of PR Department
• Press relation
• Product publicity
• Corporate communication
• Lobbying
• Counseling
 Role of Public Relation
• Assisting in the launch of new product.
• Assisting in repositioning a mature product
• Building interest in a product category
• Influencing specific target group
• Defending products that have encountered
public problem
• Building the corporate image in a way that
projects favorably on its product.
 Major decisions in PR
• Establishing the marketing objectives
• Choosing the PR messages & vehicles
• Implementing the PR
• Evaluating the PR results