This document discusses various aspects of promotion including definitions, objectives, tools, and methods. It defines promotion as activities that communicate the benefits of a product or service to customers and generate sales. The key tools of promotion discussed are advertising, personal selling, sales promotion, direct marketing, publicity, and public relations. Both conventional methods like brochures and unconventional methods like emotional branding are covered. The document also outlines some advantages and disadvantages of promotions, particularly sales promotions which can increase price sensitivity and forward buying from dealers.

1. GURSIMRAN SINGH 15115
RAMANDEEP SINGH
NITISH SHAHI
SUNIL KAKKAR
MANI SINGH
ANAND KULLAR 15119
AMITOZ SINGH

3. • Promotion is one of the market
mix elements or features, and a
term used frequently
in marketing.
• Promotion refers to raising
customer awareness of a
product or brand, generating
sales, and creating brand
loyalty.

5. Promotion cont.
• Promotion is also found in the specification of five promotional
mix or promotional plan. These elements are personal selling,
advertising, sales promotion, direct marketing, and publicity. A
promotional mix specifies how much attention to pay to each of
the five subcategories, and how much money to budget for each.
A promotional plan can have a wide range of objectives,
including: sales increases, new product acceptance, creation
of brand equity, positioning, competitive retaliations, or creation
of a corporate image. Fundamentally, there are three basic
objectives of promotion. These are:
• To present information to consumers as well as others.
• To increase demand.
• To differentiate a product

6. • There are different ways to promote a product in
different areas of media.
• Promoters use internet advertisement, special events,
endorsements, and newspapers to advertise their
product. Many times with the purchase of a product
there is an incentive like discounts (i.e., coupons), free
items, or a contest. This method is used to increase the
sales of a given product.

7. • The term "promotion" is usually an "in" expression
used internally by the marketing company, but not
normally to the public or the market - phrases like
"special offer" are more common.
• An example of a fully integrated, long-term, and a
large-scale promotion are My Coke Rewards
and Pepsi Stuff. The UK version of My Coke
Rewards is Coke Zone

10. • Promotions are also held in physical environments at special
events such as concerts, festivals, trade shows, and in the field
such as in grocery or department stores. Interactions in the
field (i.e., grocery and department stores), allow customers to
purchase the brand or product immediately.
• The interactions among the brand and the customer are
performed by brand ambassadors or promotional
models [ that represent the products and brands in physical
environments.

11. • Brand ambassadors or promotional models are hired
by marketing companies that are hired by the brand
to represent the product and/or service. Person-to-
person interaction, as opposed to media-to-person
involvement, establishes connections that add another
dimension to promotion. Building a community
through promoting goods and services can lead to
brand loyalty.

13. Social media
• Promotional activities to push a brand enabling social media
channels to spread content making something viral such as the
advertising by Coke using the release of a new bond film
creating a huge amount of attention which then gets promoted
across all social channels by people spreading the information
due to excitement. Social media, as a modern marketing tool,
offers opportunities to reach larger audiences in an interactive
way. These interactions allow for conversation rather than
simply educating the customer. Facebook, Twitter, LinkedIn,
Google Plus, Tumbler and Instagram are rated as some of the
most popular social networking sites

15. • Promotion can be done by different media, namely print
media which includes
1. Newspaper and magazines,
2. Electronic media which includes radio and television,
3. Digital media which includes internet,
4. social networking and social media sites and lastly
outdoor media which includes banner ads,
5. OOH (out of home). Digital media is a modern way of
brands interacting with consumers as it releases news,
information and advertising from the technological limits
of print and broadcast infrastructures.
• Mass communication has lead to modern marketing
strategies to continue focusing on brand awareness, large
distributions and heavy promotions.

16. IMPORTANCE OF
PROMOTION

17. Importance of promotion
• Owners of small and medium-sized businesses need to be
keenly aware of the importance of promotional and
marketing strategies. Promotional and marketing
strategies help your organization utilize the skills of your
employees and stakeholders and can help you develop
creative approaches to sales and customer service.

18. • The Marketing Plan
• Promotional and marketing strategies are often first brainstormed and
written as part of an organization's marketing plan. If your small
business doesn't have a marketing plan, you should seriously consider
developing one.
• Most marketing plans include the current or expected strategies you
have for your products, the price points of those products, how you
intend to distribute the products, and your advertising and marketing
tools.
• A marketing plan is also important for developing a promotional
strategy as it helps your business identify its target markets and to set
measurable goals.
• It is vital to the success of the organization that you implement a
marketing plan that aims for growth and positive change in the bottom
line.

19. Understanding Your
Clients
• Promotional and marketing strategies can also assist your
business in understanding and connecting with clients and
customers. If your marketing plan is loosely structured, you
might not have much success at targeting products to the
"right" demographics
• If you operate an ice cream business in a neighborhood where
no other ice cream shops exist, it might be easier to attract
clients than in a town where there are other ice cream options.
• In this case, understanding that your clients want sprinkles and
waffle cones might help you sell more ice cream and keep your
customers coming back for more.
• .

21. • Developing Financial Goals
• Promotional and marketing strategies are also important for
guiding your business into the development of financial goals.
• Financial goals are two-fold:
• They are related to your sales targets and also to your expenses
budget.
• Sales targets are initially set as part of the marketing plan but
might change over time according to changing market
conditions, increases in product price, or increases or decreases
in consumer demand.
• Monitoring expenses is also part of financial goal
development. If your business tends to spend more than it
brings in, you'll have a serious problem maintaining long-term
business viability. However, if the business is able to closely
monitor its outflows, only spending what it absolutely needs to,
you'll be better equipped to increase the profit margins.

22. Strategic Planning
• Strategic planning is a concept that encompasses marketing,
promotion, sales, and financial goals and is essentially about
developing goals for your business.
• Having a strategic plan for your business means having plans
in place to deal with both expected and unexpected situations.
If you know that your mortgage will balloon by 5 percent next
year, a strategic plan will outline how you'll increase sales or
decrease expenses to meet this additional outflow.
• This means having a plan B for months when profits are down
or expenses are unusually high. Sales and promotional
strategies are important here because they allow you to ramp
up marketing and to increase the bottom line without
sacrificing efficiencies or service

23. TOOLS OF PROMOTION

24. Tools of promotion
ADVERTISING SELLING
SALES
PROMOTION
PUBLIC
RELATIONS

26. What is advertising?
• Advertising is a form of communication designed to
persuade potential customers to choose your product
or service over that of a competitor
• Successful advertising involves making your products
or services positively known by that section of the
public most likely to purchase them.
• It should be a planned, consistent activity that keeps
the name of your business and the benefits of your
products or services uppermost in the mind of the
consumer.

29. Why advertise?
• The objective of advertising is to increase your profit
by increasing your sales. Advertising aims to:
• Make your business and product name familiar to the
public
• Create goodwill and build a favourable image
• Educate and inform the public
• Offer specific products or services
• Attract customers to find out more about your
product or service

30. The rules of advertising
• There are four rules to consider when planning any advertising
activity – ie: before you prepare and book any form of
advertising.
• Aim - What is the primary purpose of the advertisement? Is it
to inform, sell, produce listings or improve the image of your
business?
• Target - Who is the target? From which sector of the public
are you trying to achieve a response? For example is it male,
female, adult, teenager, child, mother, father etc.
• Media – Bearing the aim and target in mind, which of the
media available to you is the most suitable – ie: TV, radio,
press or Internet?
• Competitors – What are your competitors doing? Which
media channel do they use? Are they successful? Can you
improve on their approach and beat them in competition?

31. Good advertising generally elicits
the following four responses:
Attention – It catches the eye or ear
and stands out amid the clutter of
competing advertisements.
Interest – It arouses interest and
delivers sufficient impact in the
message or offering.
Desire – It creates a desire to learn
more or crave ownership.
Action – It spurs an action which leads
to achievement of the ad’s original
objective – it prompts potential
customers to purchase or use your
product or service.

32. What is selling?
• .
Selling is a particularly
important element if
you are marketing
services because the
purchaser of a
professional service is
in fact buying the
capabilities of the
seller. So he or she
would be closely
evaluating the
behaviour and
characteristics of your
sales person, your
business, its
reputation, facilities
and appearance.

33. • Put simply, selling is the exchange of goods or services for an agreed sum of
money
• Depending on the circumstances, a sales transaction can include one, some or
all of the following stages.
• Prospecting and qualifying – identifying qualified prospects ie: those that are
likely to want or need your product or service and can afford to pay for it.
• Pre-approach – undertaking research about prospects to assist in the actual
selling process.
• Approach – making actual contact with the prospect in person, by phone or
in writing.
• Presentation and demonstration – presenting and demonstrating the features
and benefits of your product or service in order to convince the prospect that
their want or need can be satisfied.
• Handling objections – demonstrating the product or service value to
overcome real or perceived objections or misunderstandings that are
impeding the purchase decision.
• Closing – bringing the selling process to a successful conclusion by either
asking for the order or responding to a positive decision from the prospect.
• Follow-up – proactive or reactive contact with the purchaser to establish
their satisfaction level and to address any problems that may exist.

35. Sales promotion relates to short term incentives or activities that
encourage the purchase or sale of a product or service. Sales
promotions initiatives are often referred to as “below the line”
activities.

36. • What are the major sales promotion activities?
• Sales promotion activities can be targeted toward final buyers (consumer
promotions), business customers (business promotions), retailers and
wholesalers (trade promotions) and members of the sales force (sales force
promotions).
• Here are some typical sales promotion activities:
Consumer promotions
• Point of purchase display material
• In-store demonstrations, samplings and celebrity appearances
• Competitions, coupons, sweepstakes and games
• On-pack offers, multi-packs and bonuses
• Loyalty reward programs
Business promotions
• Seminars and workshops
• Conference presentations
• Trade show displays
• Telemarketing and direct mail campaigns
• Newsletters
• Event sponsorship
• Capability documents

37. • Trade promotions
• Reward incentives linked to purchases or sales
• Reseller staff incentives
• Competitions
• Corporate entertainment
• Bonus stock
• Sales Force Promotions
• Commissions
• Sales competitions with prizes or awards

39. What is public relations?
Public Relations is to do with reputation management -
informing people all about your business so that they
understand your brand, products and services and view
these key elements in a positive light.
Performed well, it can be one of the most successful ways
to grow a business.
In its most basic form, the aim of PR is to communicate
messages to a target audience.
It getting news or information about your business or
products published in magazines and newspapers in the
form of features, profiles, reviews, competitions and news
items. Publicity opportunities also exist within the realms
of television, radio and online media as well as at live
events.

40. PR can also assist with
the following areas
:
a) Communicating a Company's Identity and Reputation
b) Build and increase Brand/ Product Awareness
c) Promoting Changes in Direction or Consolidation
d) Creating a Competitive Advantage
e) Communicating differences from Competitors
f) Protecting Businesses in Times of Crisis
g) Creating a premium Value for Products/ Services
h) Opening up New Markets
i) Establishing Business Partnerships
j) Attracting Potential Employees
k) Gaining Attention of Customers, Suppliers & Distributors
l) Enhancing Access to Funding/ Investors

42. Benefits of PR
• PR is substantially cheaper than advertising and is widely
accepted as being more effective.
• Because PR is viewed as 'editorial' material (supplied by
journalists) it has greater credibility and more impact than
advertising. Predominantly, as the media space it inhabits is not
overtly bought, PR material is perceived as being 'true' in the
eyes of readers and viewers who place trust in the objective
nature of the press.
• PR can be a low cost way of getting your message across, it is a
vital weapon in your business' marketing armoury. Positive
publicity can help you to overcome problems and form a
mutually beneficial, long term relationship with the media, which
is essentially the golden path leading to your audience, customers
and clients.

43. Conventional Promotion
METHODS

44. Leaflets,
Brochures, carry
home menus
Carry Home
Bags from
Stores
Ads on T-shirts
and caps
Conventional Promotion
METHODS

45. • Relationship Promotion : Emphasis is placed on the whole
relationship between suppliers and customers. The aim is to
provide the best possible customer service and build customer
loyalty. E.g. ICICI new ad which says that they involve
relationships with the customer and not transactions alone
• Societal Promotion : Curtailment of any harmful activities to
society, in either product, production, or selling methods.
• Social Media Marketing : Marketing done through Facebook,
Twitter, LinkedIn etc..
Unconventional
Promotion

46. • Co-Branding : This involves promoting your product by branding it another
product.. Eg : Free Maggie Tomato ketchup with Maggie Noodles
• IMC or Integrated Marketing Communications : Integrating all the methods
of brand promotion to promote a particular product or service among
target customers. In integrated marketing communication, all aspects of
marketing communication work together for increased sales and maximum cost
effectiveness.
• Emotional Branding : Emotional branding is a term used within marketing
communication that refers to the practice of building brands that appeal directly
to a consumer's emotional state, needs and aspirations. Emotional branding is
successful when it triggers an emotional response in the consumer, that is, a
desire for the advertised brand
Unconventional methods
of Promotion

47. • DISADVANTAGES OF SALES PROMOTIONS
While sales promotion is a powerful and effective method to produce immediate short term
positive results, it is not a cure for a bad product or bad advertising. In fact, a promotion is
speed up the killing of a bad product.
• Increased price sensitivity
Frequently promoted brands in the product category, especially on the basis of price, make
consumers and traders more price sensitive not only for the promoted brands but for other
brands as well in the same product category.
Consumers wait for the promotion deals to be announced and then purchase the product. This is
true even for brands where brand loyalty exists. Customers wait and time their purchases to
coincide with promotional offers on their preferred brands.
• Quality image may become tarnished
If the promotions in a product category have been rare, or the product happens to be of high
involvement category, the promotions could have a negative effect about its quality image.
Consumers may start suspecting that perhaps the product has not been selling well, the quality
of the product is true compared to the price or the product is likely to be discontinued because it
has become outdated.

48. DRAWBACK

49. •
• Dealers forward buy and divert stocks
In case of deals for the trade, many dealers forward buy, in excess of their inventory
requirements. This is particularly happens if a product is low bulk, much in demand and
the inventory holding costs are favourably low. This is true both for wholesalers as well
as retailers.
Forward buying of excessive stocks on deals or quantity discounts can lead to diversion
of some of the stocks in non-deal areas. Forward buying of excessive stocks on deals or
quantity discounts can lead to diversion of some of the stocks in non- deal areas.
Wholesalers and retailers do not hesitate in selling these excess stocks in non- deal areas
on prices that are less than the list price, but keeping some reasonable margin for
themselves. This is likely to have a negative effect on price discrimination efforts of the
company as dealers and those areas would not be buying even the normal requirements
from the company.

50. • • Merchandising support from dealers is doubtful
One of the trade promotions tool is to offer promotional allowances to trade people to motivate
them to provide merchandising support and to pass on some benefit to consumers. This generally
is the condition attached with such promotional allowances. In many cases, the dealers do not
cooperate in providing the merchandising support nor do they pass on any benefit to consumers.
The retailer might not be willing to give support because he does not have the place, or the
product does not sell much in his shop, or may be he thinks the effort required is more than the
commission/benefit derived.
• Short-term orientation
Sales promotions are generally for a short duration. This gives a boost to sales for a short period.
This short-term orientation may sometimes have negative effects on long-term future of the
organization. Promotions mostly build short-term sales volume that is not maintained. Heavy use
of sales promotion, in certain product categories, may be responsible for causing brand quality
image dilution.
The argument given in favour is that companies should develop superior products or services
which are better than competitors and consumer should be convinced through appropriate and
focused advertising about the superiority of the product and its image.
This will result in lasting brand identities reflecting consumer values. Then there will be no need
to offer any extra benefits; only the lasting brand image will keep customers loyal to the brand.

51. PUSH and PULL

52. What is Push?
In push marketing, a company tries to push its products through the
distribution channel. It advertises to intermediaries, such as
wholesalers and retailers, who then try to generate demand from end
users. Sometimes, companies may push information and promotional
material directly to end users through email or fliers to generate
demand
a All private labels send mobile SMS for
any new offer and discount.
b Push marketing reaches potential
customers directly.
c
A company could create an email
database of potential customers and
send them product announcements and
promotions directly
Supermarkets often employ push promotional tactics by giving away samples of new products.

53. What is Pull?
In pull marketing, the company tries to draw in customers through
different kinds of advertising, such as TV ads, online banner ads and
social media. Some companies use both push and pull marketing to
generate demand.
a
A more creative pull marketing strategy might be to
advertise in social media literary forums and build online
communities around authors.
c
A company could create an email database of potential
customers and send them product announcements and
promotions directly
b
Grocery stores often advertise leader items in the weekend
fliers to attract customers hoping that they would then
buy some of the higher-priced items.
d Online banner ads, and radio and TV ads are other forms
of pull marketing.

54. Push Basics
Push marketing is so-named because suppliers effectively try to push their
products through the distribution channel by inducing their buyers to purchase
them for resale. Trade buyers generally want to buy at a low price, add a
markup and resell to their buyers to earn a profit. When a manufacturer offers
a wholesaler a sales promotion or a volume discount, it enables the
wholesaler to earn a higher profit margin if it can resell effectively to retailers.
Wholesalers can then offer similar inducements to retailers to give them profit
advantages.
Pull Basics
Pull marketing is so-named because marketers try to stimulate demand at the
end customer level by promoting the benefits or value of products to
consumers. This includes brand building advertising as well as consumer
sales promotions that given consumers a better price for the same benefits.
The premise is that if end customers demand products in the marketing place,
all businesses in the distribution channel benefit because of strong demand
and likely higher price points.

55. Push and pull marketing both rely on conveying benefits to customers.
Using Push and Pull
A company may use both push and pull
marketing to drive sales growth.
1. A major commercial insurance company,
uses push marketing to create awareness in
a new or existing product, and then targets
banner ads to pull in customers when they
search online for more information on the
product. 2.
2. A pizza restaurant may use newspaper ads
to pull in customers and fliers to push
information about its menus directly into
customer mailboxes.

56. What is pull
marketing?
Pull marketing is
where you develop
advertising and
promotional strategies
that are meant to
entice the prospect to
buy your product or
service. Some classic
examples are "half
off!" or "bring in this
coupon to save 25%"
or "buy one get one
free", etc.
With pull marketing,
you are trying to
create a sense of
increased, time
limited value so that
the customer will
come into your store
to buy.

58. Push marketing is where you develop advertising
and promotional strategies geared toward your
marketing and distribution channels to entice them
in promoting your product. As consumers, you
rarely see this type of marketing when it is directed
to the distributors. It might include wholesale
discounts, kickbacks, bonuses, and other types of
support. It's all designed to have the retailer
promote your product to the end users over a
different product.
When companies encourage happy customers to
spread the word to their friends and families, that's a
type of push marketing. Or, when companies make
ads that are controversial, cheeky, or downright
shocking, they create a little buzz - that's another
type of push marketing.

60. Advertising as Both Push and Pull
Retailers and manufacturers sometimes cooperate in joint advertising campaigns, utilizing both push
and pull strategies. A manufacturer may push a new product, for example, along with a retailer by both
agreeing to pay for TV and print ads promoting the new product as available at retailer X now,”
Advertising can be viewed as both a push and a pull retailer strategy. Ads attempt to pull the customer
into the store, ideally asking by name for the very products that appeared on TV or in newspaper ads.
But the technique also pushes a manufacturer's products directly to consumers. In addition, TV
commercials that create buzz --- annual Super Bowl ads are a good example --- often provide good
word-of-mouth push advertising while simultaneously creating a pull-advertising effect on recipients
of such second-hand renditions. Retailers utilizing a push-pull strategy must divide their efforts and
money between promotions and end-user advertising, according to "Marketing Help!"

61. Difference Between Promotional Push Strategies & Promotional Pull Strategies?
Push versus pull are two prominent marketing strategies used by companies to
market their products.
Pull marketing means marketing to end customers to create
demand, while push marketing means enticing trade buyers to
purchase and carry your product by offering promotions and price
inducements that give them better profit potential.

62. Distribution Process
To understand the implications of push and pull
marketing you need familiarity with the distribution or
trade channel. This is the systematic process products
typically go through as they flow from initial product and
development at the manufacturing level to final purchase
at the consumer level. Along the way, distributors
traditionally buy products from manufacturers and resell
them to retailers. Retailers then hold products in
inventory and offer them for sale to the end customer.

63. 1. A pull strategy has the communication
directed at the end users — primarily
consumers.
2. a pull strategy directs promotion at the
end consumer
3. most consumer products would rely
more heavily on a pull strategy where
promotion is directed at the consumer to
stimulate demand
1. A push strategy is directing the
communication primarily at the
middlemen that are the next link forward
in the producer’s distribution channel.
2. a push strategy directs communication
efforts at channel members
3. many products, such as business
products, are promoted with a push
strategy, involving personal selling and
use of trade promotions
PUSH STRATEGY
PULL STRATEGY

64. Push and Pull Manufacturing
Push type" means make to Stock in which the production is not based
on actual demand. "Pull type" means make to Order in which the
production is based on actual demand. In supply chain management,
it is important to carry out processes halfway between push type and
pull type or by a combination of push type and pull type.
Push manufacturing
Pull manufacturing

65. Pull type production or Make to order
MTO (Make to Order) is a manufacturing process in
which manufacturing starts only after a customer's order
is received. Forms of MTO vary, for example, an
assembly process starts when demand actually occurs or
manufacturing starts with development planning.
Manufacturing after receiving customer's orders means to
start a pull-type supply chain operation because
manufacturing is performed when demand is confirmed, i.e.
being pulled by demand. The opposite business model is to
manufacture products for stock MTS (Make to Stock), which
is push-type production. There are also BTO (Build to Order)
and ATO (Assemble To Order) in which assembly starts
according to demand.
Assembling after receiving a customer's orders is "ATO
(Assemble To Order)" and starting with development
designing is "ETO (Engineer To Order)". Construction by
general contractors and plant construction by engineering
companies are categorized as ETO.

66. From the viewpoint of supply chain management,
it has been proven that those who can satisfy due dates promised with customers and can shorten
lead times will have an competitive advantage. Even if the production quantity increases, if push-
type products that are manufactured by MTS can be manufactured by pull-type production such
as MTO and ATO models using SCM software or information technology, then there will be
greater business opportunities.
ATO (Assemble to Order) of computers by Dell Inc. and production of sports bicycle by National
Bicycle Industrial Co., Ltd. are examples of creating a new business model by matching the
diversification of products with ATO, BTO, ETO, and with new-style marketing.
National Bicycle Industrial Co., Ltd. says
"We can deliver a custom-made bicycle to you within two weeks."
Solectron Corporation says
"We can assemble the computer you requested and deliver it within a week."
These are examples of business models in which new supply chain models are created as
marketing models.
Pull type production or Make to order
Pull-type production, such as MTO, BTO, ATO, and ETO, is a business model of the assembly
industry in which the quantity to produce per product specification is one or only a few.
For example, construction, plant construction, aircraft, vessels, bridges, and so on.

67. Make to Stock: In MTS (Make to Stock); products are manufactured
based on demand forecasts. Since accuracy of the forecasts will prevent
excess inventory and opportunity loss due to stock out, the issue here is
how to forecast demands accurately.
MTS (Make to Stock) literally means to manufacture products for stock
based on demand forecasts, which can be regarded as push-type
production. MTS has been required to prevent opportunity loss due to
stockout and minimize excess inventory using accurate forecasts. In the
industrialized society of mass production and mass marketing, this
forecast mass production urged standardization and efficient business
management such as cost reduction.

68. Push versus pull promotion strategy
Producer
Retailer &
wholesalers Consumers
Producer Retailer &
wholesalers
Consumers
Producer
marketing
activities
Reseller
marketing
activities
DemandDemand
Producer marketing activities
Push strategy
Pull strategy

69. PLAY FOR COMPANY
PRODUCT PROMOTION