2. Module Description
1. Promotion Definition
2. Integrated Marketing Communication Process
3. Promotion Mix
4. Marketing Communication
5. Objectives of Promotion
6. Advertising
7. Sales Promotion
8. Public Relation
9. Direct Marketing
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3. Promotion
• It is essential for organizations to promote their brands well among the end-
users not only to outshine competitors but also survive in the long run.
Brand promotion increases awareness of products and services and
eventually increases their sales, yielding high profits and revenue for the
organization.
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7. Objectives of Promotion
• Build Awareness – New products and new companies are often unknown to a market,
which means initial promotional efforts must focus on establishing an identity. In this
situation the marketer must focus promotion to: 1) effectively reach customers, and 2) tell
the market who they are and what they have to offer.
• Create Interest – Moving a customer from awareness of a product to making a purchase
can present a significant challenge. As we saw with our discussion of consumer and
business buying behavior, customers must first recognize they have a need before they
actively start to consider a purchase. The focus on creating messages that convince
customers that a need exists has been the hallmark of marketing for a long time with
promotional appeals targeted at basic human characteristics such as emotions, fears, sex,
and humor.
• Provide Information – Some promotion is designed to assist customers in the search stage
of the purchasing process. In some cases, such as when a product is so novel it creates a
new category of product and has few competitors, the information is simply intended to
explain what the product is and may not mention any competitors. In other situations,
where the product competes in an existing market, informational promotion may be used
to help with a product positioning strategy. As we discuss in the Targeting Markets tutorial,
marketers may use promotional means, including direct comparisons with competitor’s
products, in an effort to get customers to mentally distinguish the marketer’s product from
those of competitors.
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8. Objectives of Promotion
• Stimulate Demand – The right promotion can drive customers to make a purchase. In the
case of products that a customer has not previously purchased or has not purchased in a
long time, the promotional efforts may be directed at getting the customer to try the
product. This is often seen on the Internet where software companies allow for free
demonstrations or even free downloadable trials of their products. For products with an
established customer-base, promotion can encourage customers to increase their
purchasing by providing a reason to purchase products sooner or purchase in greater
quantities than they normally do. For example, a pre-holiday newspaper advertisement
may remind customers to stock up for the holiday by purchasing more than they typically
purchase during non-holiday periods.
• Reinforce the Brand – Once a purchase is made, a marketer can use promotion to help
build a strong relationship that can lead to the purchaser becoming a loyal customer. For
instance, many retail stores now ask for a customer’s email address so that follow-up
emails containing additional product information or even an incentive to purchase other
products from the retailer can be sent in order to strengthen the customer-marketer
relationship.
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Jitendra Patel, Assistant Professor, PIMR, Indore 9
9. Advertising
Advertising
One definition of advertising is: "Advertising is the non personal
communication of information usually paid for and usually persuasive in
nature about products, services or ideas by identified sponsors through the
various media."
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Jitendra Patel, Assistant Professor, PIMR, Indore 10
10. Sales Promotion
• Sales promotion is the process of persuading a potential customer to buy
the product. Sales promotion is designed to be used as a short-term tactic
to boost sales – it is not really designed to build long-term customer loyalty.
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11. Types of Sales Promotion
• Money off Coupons – customers receive coupons, or cut coupons
out of newspapers or a products packaging that enables them to
buy the product next time at a reduced price
• Competitions – buying the product will allow the customer to take
part in a chance to win a prize
• DiscountVouchers – a voucher (like a money off coupon)
• Free Gifts – a free product when buy another product
• Point of Sale Materials – e.g. posters, display stands – ways of
presenting the product in its best way or show the customer that
the product is there.
• Loyalty Cards – e.g. Nectar and Air Miles; where customers earn
points for buying certain goods or shopping at certain retailers –
that can later be exchanged for money, goods or other offers
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12. Sales Promotion
Advantages Disadvantages
•Effective at achieving a quick boost to
sales
•Encourages customers to trial a
product or switch brands
•Sales effect may only be short-term
•Customers may come to expect or
anticipate further promotions
•May damage brand image
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13. Public Relation
• Type of promotion that relies on public relations effect of a news story
carried usually free by mass media.
• The main objective of publicity is not sales promotion, but creation of an
image through editorial or 'independent source' commentary
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14. Public Relation
• Building awareness and a favorable image for a company or
client within stories and articles found in relevant media
outlets.
• Closely monitoring numerous media channels for public
comment about a company and its products.
• Managing crises that threaten company or product image.
• Building goodwill among an organization’s target market
through community, philanthropic and special programs and
events.
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15. MarketingVs Public Relation
Marketing Public Relation
Marketing promotes the transfer of goods and
services from the producer and provider to the
consumer.
Public relations helps an organization and its
publics adapt mutually to each other.
Marketing's immediate goal is sales. Public relations' immediate goal is mutual
understanding or positioning of the organization
with its publics
Marketing's implicit goal is profit. Public relations' implicit goal is positive
perceptions and predispositions.
Marketing's measure of success is the number of
sales and/or the revenue it generates.
Public relations' measure of success is expressed
public opinion or other evidence of public support
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16. Direct Marketing
• Direct marketing is just what it sounds like - directly reaching a market (customers
and potential customers) on a personal (phone calls, private mailings) basis, or
mass-media basis (infomercials, magazine ads, etc.).
• Direct marketing is often distinguished by aggressive tactics that attempt to reach
new customers usually by means of unsolicited direct communications. But it can
also reach out to existing or past customers. A key factor in direct marketing is a
"call to action." That is, direct marketing campaigns should offer an incentive or
enticing message to get consumers to respond (act).
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17. Types of Direct Marketing
• Telemarketing: Direct marketing that involves calling people at home or work to
ask for donations, an opinion, or for sales purposes.
• Email Direct Marketing: This form of direct marketing targets consumers through
their Email accounts. Email addresses can be harvested from websites, forums, or
purchased. Some companies require you to receive announcements to use their
websites.
• Direct Mail Marketing: Advertising material sent directly to home and business
addresses.
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18. References
1. Aakar, D. A. (2012), “Strategic Market Management” 9th Edition, New Delhi, India, Wiley
India.
2. D. Chandra Bose (2010.) “Modern Marketing Principles and Practices” PHI Learning, 1st
Edition.
3. O. C. Ferrell and Michael Hartline (2012 ). “Marketing Strategy, Text and Cases” , South
Western Cengage Learning, sixth edition.
4. Philip Kotler, Kelvin Lane, Keller, Abraham Koshi, Mitihlesh Jha.(2011), Principles of
Marketing Management, South Asian Perspective, Pearson Education, 14th Edition.
5. S. M. Jha. (2011), “Services Marketing”, Himalaya Publishing House, 7th Edition, New
Delhi.
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21. Marketing Strategy
•Marketing strategy is the link between corporate goals
and operational tactics
•There are two primary considerations in marketing
strategy—
• Where are we?
• Where do we want to go?
22. Portfolio AssessmentTool
•Boston Consulting Group matrix
• Brands or products are classified according to whether each
has a strong or weak market share and slow or growing
market
• Dog: low share, low growth
• Star: high share, high growth
• Cash cow: high share, low growth
• Question mark: low share, high growth
23. BCG Matrix
The Boston Consulting Group (BCG) growth-share matrix is a planning tool that uses
graphical representations of a company’s products and services in an effort to help the
company decide what it should keep, sell, or invest more in.
24. Corporate Identity
•What is the company’s typical philosophy toward the
marketplace
• Offensive
• Defensive
• Leader
• Follower
25. Corporate Identity
•Leader has several meanings…
• Largest market share
• 1st to market
• First to market may or may not be beneficial because adoption can
be slow
• Quick to innovate and improve, etc.
• Quick followers can learn from leader’s mistakes
26. Corporate Identity
• A company may be a leader for some of its brands/products and
not others
• A company may be offensive and defensive to vary its portfolio
• A company’s products’ life cycles may influence its identity
27. Marketing Metrics
• Profitability
• Sales
• Share
• Average prices
• Levels of awareness
• Penetration in trial
• Customer satisfaction
• Employee satisfaction, etc.
29. Goals
•Let’s make more money
•Let’s delight our customers
•Let’s redefine our position
•Goals about broader concerns
30. Let’s Make More Money
• State sales objectives in terms of
• Currency
• Market share
• Units
• Change from last year or quarter
• Region
• Investments made toward current sales
• ROI, ROE, ROM (marketing), ROQ (quality)
• Growth
33. Let’s Redefine Our Position
•Promotion
•Spend ad dollars more wisely
•Determine most appropriate media
•Determine most appropriate frequency
•Determine most appropriate message, etc.
34. Let’s Redefine Our Position
•Channels (Place)
• Determine appropriate channels
• Determine multichannels
• Determine lower cost channel interactions
• Determine whether to outsource functions to channel
partners, etc.
•Price
• Determine high price or low price
35. Goals about Broader Concerns
• Goals that go beyond marketing
• Human resource, finance, production, etc.
• Societal concerns
• Charitable or community contributions
• Boosting stability of local employment
• Demonstrating leadership in environmentally friendly business practices,
etc.
36. Goals
• Goals can be complex, numerous, interconnected and
overwhelming
• Focus on most important goals first
• Consider the time frame and the financial support need to
achieve the goals
37. Basic Strategies
• Do nothing
• Let the brand sink or swim on its own
• Do nothing differently
• Maintain business as usual
• Take action
• Do something different
• Marketers have control over STP and 4Ps
