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PROMOTION
DEFINITION
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According to Alderson, Wroe and Paul E.Green, “ Promotion is
any marketing effort whose function is to inform or persuade
actual or potential consumers about the merits of a (given)
product or service for the purpose of introducing a consumer
either to continue or to start purchasing the firms product or
service at same( given) price.”
Brink and Kelly has defined promotion as,” the co-ordination of
all seller initiated efforts to set up channels of information and
persuasions to facilitate the sale of a product or service or the
acceptance of an idea.”
PROMOTION DECISION
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Identify the Target Audience
Determining Promotional
Design and Developing the Message
Marketing Communication Budget
Selecting Promotion
Deciding Promotion
Measuring Promotion
FACTORS INFLUENCING PROMOTION
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Nature of the Product
Size of the Customer
Market Size and Location
Brand Differentiation
Purchase Frequency
Life Cycle of the Product
Fund Available or Promotion Budget
Market Penetration
Adoption of Push or Pull Strategy
Distribution Strategy
Pricing Strategy
ELEMENTS OF PRMOTION
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Advertising
Publicity
Public Relation
Personal Selling/ Salesmanship
Sales Promotion
Direct Marketing/ Selling
Packaging
ADVERTISING
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According to Little Field “ Advertising is mass
communication of information intended to persuade
buyers as to maximize profits.”
According to Hall “ Advertising in writing or
pictures or spreading information by means of the
written and printed word and the pictures”
The American Marketing Association defines
advertising as “ Advertising is any paid form of nonpersonal presentation of ideas, goods and services
by an identified sponsors.”
CHARACTERISTICS
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It is a Non- Personal Presentation
It is Paid Form of Communication
It is about Goods, Ideas and Services
It is by an Identified Sponsor
It informs and Persuades Buyers
It is depends on Communication Media
It is called Printed Salesmanship
It is meant for Selected Target Market
OBJECTIVE
OF
ADVERTISING
• To make the buyers aware f the availability of the
product or service and to explain what it is.
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To sustain an established product in the market
place
To improve sales and profit by increasing sales
volume.
To reduce marketing costs by reducing personal
selling.
To create awareness about new products and
services.
To capture an unattended or new segment of the
market.
To make known the advantages of full use of the
PUBLICITY
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Publicity is non-personal, not paid presentation, is
exposed in the mass media, and is used for
persuasion.
The few common types of publicity are news
release, speeches, presentation in editorial or print
media, presentation in the non-commercial portion
of radio or television etc.
The objective of publicity is to increase consumer
awareness of a company, its products, particularly
new and innovative products and marketing
practices.
PUBLIC
RELATION
• Public relations is a broader term than publicity and
involves with the relationship of the company to its
various public-individual consumer, employees,
shareholders, middleman, government officials etc.
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The purpose of public relations is to develop
favorable image, rapport, goodwill of the company a
and products in the eyes of the public.
Public relations may use advertising, publicity or
any other communication tools that might be
appropriate.
PERSONAL SELLING /
SALESMANSHIP
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Personal selling involves promotion on a one-to-one
basis with a customer.
It is an oral presentation of a tangible and intangible
product by a seller to buyer for the purpose of
completing an exchange..
Personal selling is a direct form of promotion/
marketing communication that can be tailored to fit
the demand.
SALES PROMOTION
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Sales promotion includes those activities that
supplement advertising and personal selling.
According to Philip Kotler, “ Sales promotion
consists of a diverse collection of incentive tools,
mostly short-term, designed to stimulate quicker
and/or greater purchase of particular products/
services by consumers or the trade.”
According to W.J.Stanton, “ Sales promotion as
demand stimulating devices to supplement
advertising and facilitate personal selling.”
DIRECT MARKETING/ SELLING
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Direct marketing/ selling is the use of consumer
direct channels to reach and deliver goods and
services to customers without using marketing
intermediaries.
These channels include direct mail, catalogues,
telemarketing, interactive TV kiosks websites and
mobile services.
Direct marketing is a form of non-store retailing that
uses advertising, personal selling and other
promotion tools to directly contact customers who in
turn, purchase products without going to retail
stores.
PACKAGING
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Packaging has become increasingly important as a
promotion/ marketing, communication tool in
consumer products.
With introduction of new packing technological
based companies have discovered the value of
packaging as a fascinating promotion/ marketing
communication in India.
Companies have gone to the extent of designing
their promotion/ communication message around
new and innovative packing.
Advertising and Sales
Promotion Strategy
The Marketing Communications
Mix
Advertising
Any Paid Form of Nonpersonal
Presentation by an Identified
Sponsor.
Sales Promotion
Short-term Incentives to
Encourage Trial or Purchase.
Public Relations
Personal Selling
Direct Marketing
Protect and/or Promote
Company’s Image/products.
Personal Presentations.
Direct Communications
With Individuals to Obtain
an Immediate Response.
Advertising
PROS
• Message can be repeated for exposure
• Very expressive -- can be used to create image
• Can reach a geographically diverse audience
CONS
• Can be tuned out
• Can be expensive
• Hard to measure results
Personal Selling
PROS
• Interactive - can be customized
• Allows a relationship to develop
• Better understanding of customer needs
• Buyer will pay more attention to the message
CONS
• Expensive
• Can only reach a small number of consumers
PROS
• Very believable
• “Free advertising”
CONS
• Hard to implement
• Hard to control
• Hard to measure its effectiveness
PROS
• Attract attention
• Strong incentives will induce consumers to act
• Quick response
• Encourages trial of product
CONS
• Can create price sensitive customers
• Can be costly
• Easy for competition to imitate
Channels of Sales Promotions
MANUFACTURER
Push
Trade
Promotions
RETAILER
Push
Retail
Promotions
CONSUMER
Consumer
Promotions
Pull
Consumer Promotion -- PULL
Consumer-Promotion
Objectives
Entice Consumers to
Try a New Product
Lure Customers Away
From Competitors’ Products
Get Consumers to “Load Up’
on a Mature Product
Hold & Reward Loyal
Customers
Consumer Relationship
Building
Consumer-Promotion Tools
Samples
Coupons
Cash Refunds
Advertising
Specialties
Patronage
Rewards
Contests
Price Packs
Premiums
Sweepstakes
Games
Point-of-Purchase
Displays
Trade Promotions -- PUSH
Trade-Promotion Objectives
Trade-Promotion
Tools
Persuade Retailers or
Wholesalers to Carry a Brand
Price-Offs
Premiums
Give a Brand Shelf Space
Allowances
Patronage
Displays
Rewards
Promote a Brand in
Advertising
Buy-Back
Guarantees
Discounts
Push a Brand to Consumers
Free Goods
Contests
Push Money
Specialty
Advertising
Items
Identify and
analyze
target
market
Define
Advertising
objectives
Create
advertising
platform
Determine
advertising
appropriation
Evaluate
advertising
effectiveness
Execute
campaign
Create
advertising
messages
Develop
Media
plan
Target market
selection
This is the single most important decision, because all
other decisions build upon it.
Is the budget sufficent?
Is the media message correct?
Are the media outlets appropriate?
All of these questions will depend upon the target
audience’s size, motivations, concerns, etc.
Start by describing with
demographic data
Target market of a national chain of child day-care
centers:
“Female household heads aged 25 to 34 employed
outside the home who have one or more children under
age 6 at home and live or work within within 10 miles of
a current center.”
But need to add life-style and
psychographic profile data
“This group aspires to have both a successful career and
family. These women are serious about child-rearing
responsibilities and are avid readers of books and articles on
the subject. They are primarily outer-directed Emulators and
Achievers in terms of VALS categories. They are concerned
about where and with whom they leave their children. Heir
child’s “experience” is of crucial importance, while cost of
the service is an important, but secondary, concern.”
Identify and
analyze
target
market
Define
Advertising
objectives
Create
advertising
platform
Determine
advertising
appropriation
Evaluate
advertising
effectiveness
Execute
campaign
Create
advertising
messages
Develop
Media
plan
Problem with using $ of revenue
or units sold as an advertising
objective
1. Advertising is only one of many factors impacting
whether a sale occurs.
2. Advertising has a carryover / delay effect that extends
beyond a calendar or fiscal year.
Response Hierarchy Models
Stages
AIDA
Model
Hierarchy-ofEffects
Model
InnovationAdoption
Model
Exposure
Awareness
Cognitive
stage
Attention
Awareness
Affective
stage
Interest
Attitude
Evaluation
Intention
Preference
Desire
Behavior
stage
Liking
Reception
Cognitive
response
Knowlege
Interest
Communications
Model
Conviction
Trial
Action
Purchase
Behavior
Adoption
Advertising Objectives
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Specific Communication Task
Accomplished with a Specific Target Audience
During a Specific Period of Time
Example advertising objective
To increase from 12% to 35%, within one year , the
number of homemakers, age 25-55, that list our
brand in unaided recall when asked to name 5
different instant coffee brands.
Advertising Objectives
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Specific Communication Task
Accomplished with a Specific Target Audience
During a Specific Period of Time
Informative Advertising
Persuasive Advertising
Build Primary Demand
Build Selective Demand
Reminder Advertising
Keeps Consumers Thinking
About a Product.
Identify and
analyze
target
market
Define
Advertising
objectives
Create
advertising
platform
Determine
advertising
appropriation
Evaluate
advertising
effectiveness
Execute
campaign
Create
advertising
messages
Develop
Media
plan
Advertising
platform
A statement of the basic idea or issues to be
communicated in the advertisement.
A general notion of the media type (e.g., TV, radio,
newspapers, etc.)
Identify and
analyze
target
market
Define
Advertising
objectives
Create
advertising
platform
Determine
advertising
appropriation
Evaluate
advertising
effectiveness
Execute
campaign
Create
advertising
messages
Develop
Media
plan
Issues to consider in
setting advertising
budget
Product Life Cycle
Market share
Competitive clutter
Product Substitutability
Setting Advertising Budgets
Affordable
Method
Percentage-of-Sales
Method
Setting Promotion
Budget at the Level the
Company Thinks They
Can Afford.
Setting Promotion
Budget at a Certain %
of Current or
Forecasted Sales
Competitive-Parity
Method
Objective-and-Task
Method
Setting Promotion
Budget to Match
Competitors’ Outlay
Setting Promotion
Budget by Defining
Objectives, Tasks &
Costs.
Identify and
analyze
target
market
Define
Advertising
objectives
Create
advertising
platform
Determine
advertising
appropriation
Evaluate
advertising
effectiveness
Execute
campaign
Create
advertising
messages
Develop
Media
plan
Issues in Selecting Advertising Media
Reach, Frequency, and Impact
Major Media Type Options
Media Habits of Target Consumers
Nature of the Product
Type of Message
Cost
Specific Media Vehicles
Specific Media Within a Given Type (e.g., E.R.)
Balance Media Cost Against Media Factors:
Audience Quality & Attention, Editorial Quality
Media Timing
Scheduling of Advertising Over the Course of a Year
Pattern of Ads: Continuity or Pulsing
Profiles of Major Media
Types
Newspapers
Advantages: Flexibility, timeliness; good local market coverage;
high believability
Limitations: Short life; poor reproduction quality; small
pass-along audience
Television
Advantages: Combines sight, sound, motion; high attention;
high reach; appealing to senses
Limitations: High absolute costs; high clutter; fleeting exposure;
less audience selectivity
Direct Mail
Advantages: Audience selectivity; flexibility, no ad competition within same medium; allows personalization
Limitations: Relative high cost; “junk mail” image
Profiles of Major Media
Types
Radio
Advantages: Mass use; high geographic and demographic
selectivity; low cost
Limitations: Audio only; fleeting exposure; lower attention;
fragmented audiences
Magazines
Advantages: High geographic and demographic selectivity;
credibility and prestige; high-quality reproduction;
long life; good pass-along readership
Limitations: Long ad purchase lead time;
no guarantee of position
Outdoor
Advantages: Flexibility; high repeat exposure; low cost;
low message competition
Limitations: Little audience selectivity; creative limitations
Issues in Selecting Advertising Media
Reach, Frequency, and Impact
Major Media Type Options
Media Habits of Target Consumers
Nature of the Product
Type of Message
Cost
Specific Media Vehicles
Specific Media Within a Given Type (e.g., E.R.)
Balance Media Cost Against Media Factors:
Audience Quality & Attention, Editorial Quality
Media Timing
Scheduling of Advertising Over the Course of a Year
Pattern of Ads: Continuity or Pulsing
Issues in Selecting Advertising Media
Reach, Frequency, and Impact
Major Media Type Options
Media Habits of Target Consumers
Nature of the Product
Type of Message
Cost
Specific Media Vehicles
Specific Media Within a Given Type (e.g., E.R.)
Balance Media Cost Against Media Factors:
Audience Quality & Attention, Editorial Quality
Media Timing
Scheduling of Advertising Over the Course of a Year
Pattern of Ads: Continuity or Pulsing
Classification of
Advertising Timing Patterns
Level
Concentrated
Rising
Falling
Alternating
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(9)
(10)
(11)
(12)
Continuous
Intermittent
Month
Number of
messages
per month
Identify and
analyze
target
market
Define
Advertising
objectives
Create
advertising
platform
Determine
advertising
appropriation
Evaluate
advertising
effectiveness
Execute
campaign
Create
advertising
messages
Develop
Media
plan
Factors Impacting the
Receipt of a Message
Selective Attention
Selective Distortion
Selective Retention
Issues to Consider in
Designing the Message
Message Content
Rational Appeals
Emotional Appeals
Moral Appeals
Message Structure
Draw Conclusions
Argument Type
Argument Order
Message Source
Expertise,
Trustworthiness,
Likeability
Typical Message Execution
Styles
Comparisons
Real or animated
Symbol
Slice of Life
Mood or
Image
Lifestyle
Demonstration
Spokesperson
Musical
Fantasy
Humor
Scientific
Evidence
Stylistic Approaches
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Can present many points quickly
Cost less than drama to produce
Audience can become distracted
Discount all or part of the facts
DRAMA
COMBINATION
LECTURE
• Characters speak to each other –
not the audience
• Consumers must infer lessons
• Conclusions are more likely to be
accepted
Common Appeals
Vanity and egotism
Profit motive
Health concerns
Fun and pleasure
Convenience
Common
Message
Appeals
Love
Sex
Admiration/worship
Fear
Identify and
analyze
target
market
Define
Advertising
objectives
Create
advertising
platform
Determine
advertising
appropriation
Evaluate
advertising
effectiveness
Execute
campaign
Create
advertising
messages
Develop
Media
plan
Identify and
analyze
target
market
Define
Advertising
objectives
Create
advertising
platform
Determine
advertising
appropriation
Evaluate
advertising
effectiveness
Execute
campaign
Create
advertising
messages
Develop
Media
plan
Advertising Evaluation
Advertising Program Evaluation
Communication Effects
Is the advertisement
meeting the specific
communication objective?
Sales Effects
(to the extent possible)
Is the Ad Increasing Sales?