Promotional Strategies

1. Dr S.L Gupta
3-1
6-1
Promotional Strategies
6
Session

2. Dr S.L Gupta
3-2
Promotion
 Effective COMMUNICATION is the essence of PROMOTION
 Promotion is a process of Communication involving information,
persuasion, and influence.
 Personal selling – Advertising – Publicity – Sales Promotion

3. Dr S.L Gupta
3-3
 To provide information
 To stimulate demand
 To differentiate the product
 To highlight the utility of product
 To counter competition and stabilise sales
Objectives of Promotion

4. Dr S.L Gupta
3-4
Objectives of Promotion
Initial Objectives Examples Ultimate Objectives
To Inform Pepsi (Yehi hi hai right
choice baby!)
Maggi (It’s different)
Inform the prospective
customers and
differentiate offer.
To Persuade Onida (Neighbour’s envy,
owner’s pride)
Stimulate demand
To Remind Lux (Filmstar’s soap)
Colgate (Ring of
Confidence)
Complan (Complan girl/boy)
Stabilise demand and
stay in competition
To Counter Competition Comparative Advertisements Product utility,
superiority and
differentiation
To build favourable
image
Vicks, Indian Airlines Stabilise sales volume

5. Dr S.L Gupta
3-5
Marketing Communication Models
Consumer Response
Models
Cognitive Stage
(Learn)
Affective Stage (Feel) Behaviour Stage
(Do)
“AIDA” Model Attention Interest  Desire Action
Hierarchy of Effects
Model
Awareness 
Knowledge
Liking  Preference 
Conviction
Purchase
Innovation –
Adoption Model
Awareness Interest  Evaluation Trial  Adoption
Communication
Model
Exposure, Reception Attitude  Intention Behaviour or
Response
Promotion that
might be relevant to
various stages
Advertisements,
Point-of purchase,
Displays, Publicity,
Event Launching,
Window displays,
Demonstration, Trial
Coupons, Samples
Information and
Description
Advertisement; Status,
usage, Glamour appeals;
Image advertisements,
Comparative
advertisements
Personal selling,
Point of purchase,
Displays, Coupons,
Discounts,
Remainder
Advertisements

6. Dr S.L Gupta
3-6
Methods / Elements of Promotion
Advertising
Public
Relations &
Publicity
Direct
Marketing
Personal
Selling
Sales
Promotion
TARGET
MARKET

7. Dr S.L Gupta
3-7
 It is impersonal form of promotion that is directed towards
masses and is paid for, with the clear identification of the
sponsorers.
 The media include mass media (TV, Radio and News paper),
Magazines, Point of sale displays, packaging, sponsorship,
billboards, banners etc.
Methods / Elements of Promotion
1. Advertising:

8. Dr S.L Gupta
3-8
 It consists of short-term and temporary incentives to
purchase or induce trials.
 The tool includes arranging contests, games, premium packs,
gifts, off-season discounts, sampling, rebates, exchange offers
etc.
 The recent trend - Freebies
2. Sales Promotion:
Methods / Elements of Promotion

9. Dr S.L Gupta
3-9
 It is a personal direct presentation of product to the
customer or prospective customer for the purpose of making
sales.
 The tools include Sales presentations, meetings, incentive
programmes and samples
3. Personal Selling:
Methods / Elements of Promotion

10. Dr S.L Gupta
3-10
 It is the use of non-personal contact tools to solicit a trial or
purchase.
 It includes catalogue selling, mail-order, Tele-marketing, www
marketing, TV shopping etc.
4. Direct Marketing:
Methods / Elements of Promotion

11. Dr S.L Gupta
3-11
 It encompasses wide variety of communication efforts to
contribute a generally favorable attitude towards the
organization and its products.
 Publicity is not paid for.
 The tool includes press conferences, speeches, annual reports,
events, publications, donations for public cause and
sponsorships.
5. Public Relations and Publicity:
Methods / Elements of Promotion

12. Dr S.L Gupta
3-12
Promotional Planning
Sales
Promotion
Advertising
Sales force
Public
Relations
Direct mail
& Tele
marketing
Promotion-Mix
Distribution
Channels
Target
Customers
Company
Products
Services
Prices
Offer - Mix

13. Dr S.L Gupta
3-13
Factors affecting Promotion Mix
1. Product Considerations
 Nature of Product
 Product Image
 Stage of Product Life Cycle
 Packaging
 Degree of Customization
2. Pricing Policy
3. Distribution
4. Target Market Characteristics
Level of Competition
Geographic Coverage
Buyer Readiness Stage
Promotional Budget
Promotional Strategy

14. Dr S.L Gupta
3-14
Pull vs. Push Strategy
Marketer Intermediary Consumer
Marketer Intermediary Consumer
Push Strategy
Pull Strategy
Demand creation