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PROMOTION MANAGEMENT
Prepared by Ms. Shery Asthana
Asst. Prof. (Greater Noida Institute of Management)
Content
● Introduction of Promotion Management
● Integrated Marketing Communication
● Communication Development process
● Budget Allocation decision in Marketing Communication
● Promotion Mix
● Advertising- Meaning, Objective
● Advertising Budget
● Fundamental of sales Promotion
● Public Relations
● Direct Marketing
● Rural Marketing
● Digital and Mobile Marketing
Marketing Communications
> Marketing communications are the means by which firms attempt to inform,
persuade, and remind consumers—directly or indirectly—about the products and
brands they sell. In a sense, marketing communications represent the voice of the
company and its brands; they are a means by which the firm can establish a dialogue
and build relationships with consumers.
> By strengthening customer loyalty, marketing communications can contribute to
customer equity.
>Marketing communications also work for consumers when they show how and why a
product is used, by whom, where, and when.
> Consumers can learn who makes the product and what the company and brand
stand for, and they can get an incentive for trial or use.
>Marketing communications allow companies to link their brands to other people,
places, events, brands, experiences, feelings, and things.
>They can contribute to brand equity—by establishing the brand in memory and
creating a brand image—as well as drive sales and even affect shareholder value.
MARKETING COMMUNICATIONS MIX The marketing communications
mix consists of eight major modes of communication:
1. Advertising—Any paid form of non personal presentation and promotion of ideas,
goods , or services by an identified sponsor via print media (newspapers and
magazines), broadcast media (radio and television), network media (telephone, cable,
satellite, wireless), electronic media (audiotape, videotape, videodisk, CD-ROM , Web
page), and display media (billboards, signs, posters).
2. Sales promotion—A variety of short-term incentives to encourage trial or purchase
of a product or service including consumer promotions (such as samples, coupons,
and premiums), trade promotions (such as advertising and display allowances), and
business and sales force promotions (contests for sales reps).
3. Events and experiences—Company-sponsored activities and programs designed to
create daily or special brand-related interactions with consumers, including sports,
arts, entertainment, and cause events as well as less formal activities.
4. Public relations and publicity—A variety of programs directed internally to
employees of the company or externally to consumers, other firms, the government,
and media to promote or protect a company’s image or its individual product
communications.
https://www.youtube.com/watch?v=NjBxoN4spKo ( MomBeAGirlAgain)
https://www.youtube.com/watch?v=8QDlv8kfwIM ( ShareTheLoad )
5. Direct marketing—Use of mail, telephone, fax, e-mail, or Internet to communicate
directly with or solicit response or dialogue from specific customers and prospects.
6. Interactive marketing—Online activities and programs designed to engage
customers or prospects and directly or indirectly raise awareness, improve image, or
elicit sales of products and services.
https://outgrow.co/blog/interactive-marketing-examples
7. Word-of-mouth marketing—People-to-people oral, written, or electronic
communications that relate to the merits or experiences of purchasing or using products
or services.
8. Personal selling—Face-to-face interaction with one or more prospective purchasers
for the purpose of making presentations, answering questions, and procuring orders.
Company communication goes beyond these. The product’s styling and price, the
shape and colour of the package, the salesperson’s manner and dress, the store
décor, the company’s stationery—all communicate something to buyers.
Every brand contact delivers an impression that can strengthen or weaken a
customer’s view of a company.
Marketing communication activities contribute to brand equity and drive sales in
many ways: by creating brand awareness, forging brand image in consumers’
memories, eliciting positive brand judgments or feelings, and strengthening consumer
loyalty.
Role of Marketing Communication
The Changing Marketing Communications Environment
Technology and other factors have profoundly changed the way consumers process
communications, and even whether they choose to process them at all. The rapid
diffusion of multipurpose smart phones, broadband and wireless Internet
connections, and ad-skipping digital video recorders (DVRs) have eroded the
effectiveness of the mass media.
In 1960, a company could reach 80 percent of U.S. women with one 30-second
commercial aired simultaneously on three TV networks: ABC, CBS, and NBC. Today,
the same ad would have to run on 100 channels or more to achieve this marketing
feat. Consumers not only have more choices of media, they can also decide whether
and how they want to receive commercial content.“Marketing Insight: Don’t Touch
That
Remote” describes developments in television advertising.
Marketing communications in almost every medium and form have been on the rise,
and some consumers feel they are increasingly invasive. Marketers must be creative
in using technology but not intrude in consumers’ lives. Consider what Motorola did
to solve that problem.
MotorolaAt Hong Kong International Airport, Motorola’s special promotion
enabled loved ones to “Say Goodbye” via photos and messages sent from their phones to
digital billboards in the departure area.
When they checked into the gate area, travellers saw photos of the friends and family who
had just dropped them off as part of a digital billboard in the image of
a giant Motorola mobile phone. The company also offered departing travellers special
instructions for using their phones to send a Motorola-branded good-bye video to friends
and families, featuring soccer star David Beckham and Asian pop star Jay Chou.
Marketing Communications, Brand Equity and Sales
In this new communication environment, although advertising is often a central
element of a marketing communications program, it is usually not the only one—or
even the most important one—for sales and building brand and customer equity. Like
many other firms, over a five-year period from 2004 to 2008, Kimberly-Clark cut the
percentage of its marketing budget spent on TV from 60 percent to a little over 40
percent as it invested more heavily in Internet and experiential marketing. Consider
Gap’s effort in launching a new line of jeans.
Gap By 2009, with sales slumping, Gap decided to celebrate the 40th anniversary of
the opening of its first Gap store by introducing the “Born to Fit” 1969 Premium Jeans line.
For its launch, Gap moved away from its typical media-intensive ad campaign, as
exemplified by its popular 1998 “Khakis Swing” holiday ads. The campaign featured newer
communications elements such as a Facebook page, video clips, a realistic online fashion
show on a virtual catwalk, and a StyleMixer iPhone app.
The app enabled users to mix and match clothes and
organize outfits, get feedback from Facebook friends,
and receive discounts when near a Gap store. Simultaneous
in-store acoustic shows across 700 locations and temporary
pop-up denim stores in major urban locations added to the
buzz.
KhakhiSwing https://www.youtube.com/watch?v=XJ735krOiPo
MARKETING COMMUNICATION EFFECTS The way brand associations
are formed does not matter. In other words, whether a consumer has an equally
strong, favourable , and unique brand association of Subaru with the concepts
“outdoors,” “active,” and “rugged” because of exposure to a TV ad that shows the car
driving over rugged terrain at different times of the year, or because Subaru sponsors
ski, kayak, and mountain bike events, the impact in terms of Subaru’s brand equity
should be identical.
(Subaru is the automobile manufacturing division of Japanese transportation conglomerate
Subaru Corporation, the twenty-second largest automaker by production worldwide in 2012.
Subaru cars are known for their use of a boxer engine layout in most vehicles above 1500 cc.)
https://www.youtube.com/watch?v=koLrsIDaKrc (ski with subaro commercial ad)
In building brand equity, marketers should be “media neutral” and evaluate all
communication options on effectiveness (how well does it work?) and efficiency (how
much does it cost?).
Personally financial Web site Mint challenged market leader Intuit—and was
eventually acquired by the company—on a marketing budget a fraction of what
companies typically spend. A well-read blog, a popular Facebook page, and other
social media—combined with extensive PR—helped attract the younger crowd the
Mint brand was after.
Philips also took another tack in launching a new product.
Philips Carousel When Dutch electronics leader Philips wanted to
demonstrate
the quality of the “world’s first cinema proportion” TV, it chose to create Carousel, an
interactive, long-form Internet film. In this Cannes Grand Prix award-winning effort,
online viewers could control the story of a botched robbery while seeing the benefits
of the new $3,999 home cinema TV. The film showed an epic “frozen moment”
cops and robbers shootout sequence that included clowns, explosions, a
decimated hospital, and lots of broken glass, bullet casings, and money.
By clicking hot spots in the video, viewers could toggle between the new
set’s 21:9 display proportion and a conventional flat screen’s 16:9, as
well as activate the set’s signature Ambilight backlighting. The success
of the campaign led Phillips to launch a “Parallel Lines” campaign with
five short films from famed director Ridley Scott’s shop, promoting its
whole range of home cinema TVs.
https://www.youtube.com/watch?v=4JJyXryevxY
Communication Process Models
(Response Hierarchy Model)
Stage AIDA Model Hierarchy of
Effects Model
Innovation
Adoption Model
Communication
Model
Cognitive
Stage
Attention Awareness
Knowledge
Awareness
Exposure
Reception
Cognitive Response
Affective
Stage
Interest
Desire
Liking
Preference
Interest
Evaluation
Attitude
Intention
Behaviour
Stage
Action
Purchase
Trial
Adoption
Behaviour
Marketing Communication
Development Process
There are certain steps that should be involved in the effective marketing
communication process. The marketing and promotional activities should focus on
these steps in order to attract a huge portion of long run customers. Following are
the steps that make communication process effective.
• Identification of the Target audience
• Determination of the communication objectives
• Designing of Message
• Select Channels
• Establish budget
• Collecting Feedback or Measure Result
• Understand Your Target Audience
Before you can create a strategic communications plan, you need to understand
your target audience. Any marketing communications plan has to be formulated
for a specific group of target customers. Your IMC has to define the needs and
characteristics of this target audience.
Ex:- Social Media Campaign
Ex:- In Diaper Ads. Target Audience is Mother.
• Determination of the communication objectives
The communication objectives may also be different in some cases. For example,
when the product is in the introduction stages in a market, the emphasis of
communication could be on consumer education and creation of primary demand.
In a market where the product is at other stages of the life cycle, the
communication objectives would be different.
• Designing of Message
The decisions regarding the message content, message structure,
message format and message source are influenced by certain
environmental factors like cultural factors and legal factors. The
differences in the environmental factors among the countries may,
therefore, call for different messages so as to be appropriate for each
market.
Formulating the communication to achieve the desired response requires
answering three questions: What to say(message strategy), how to say it
(creative strategy), and who should say it (message source).
https://thunderbird.asu.edu/knowledge-network/its-peach-not-stork-
how-pg-turned-around-its-pampers-fail-
japan#:~:text=Japanese%2Dmade%20diapers%20were%20indisputably,dr
iving%20Pampers%20out%20of%20business.&text=Japan's%20complex%
20regulatory%20environment%20also,first%20to%20fail%20in%20Japan.
Message Strategy :- In selecting message strategy, management searches
for appeals, themes, or ideas that will tie in to the brand positioning and
help establish points of parity or points of difference.
Creative Strategy :- it is the way marketers translate their messages into a
specific communication. We can broadly classify them as either
informational or transformational appeals.
❑ Informational Appeals:- It elaborates attributes or benefits.
Problem Solving ads:- Long lasting pain relief
Product demonstration ads:- Thompson Water seal withstands intense
rain or snow)
product comparison ads
testimonial ads from unknown or celebrity endorsers.
❑ Transformational Appeals :- it elaborates on a non-product related
benefits or image. It might depict what kind of person uses a brand (VW
advertised to active, youthful people with its “Drivers Wanted” Campaign)
https://www.writework.com/essay/volkswagen-s-driver-s-wanted-ad-
campaign-case-study
or what kind of experience results from use (Pringles advertised “Once
You Pop, The fun Don’t stop”)
https://www.youtube.com/watch?v=dmpQTpY76yI
Transformational appeals often attempt to stir up emotions that will
motivate for purchase. Such as brush your teeth or stop smoking etc.
• Select the Communication Channels
Personal communication channels- channels through which two or more
people communicate directly with each other, including face to face, on
the phone, via mail or e-mail, or even through an internet
“chat”. Personal communication channels are effective because they
allow for personal addressing and feedback.
Non personal (Mass) Communication Channels -Media channels include
print media (newspaper, magazines, souvenirs, proceedings of
conferences), broadcast media (radio, television), display media
(billboards, signs, posters) and electronic media (audiotape, videotape,
videodisk, CD-ROM).
• Establish Budget
A marketing communication budget provides a formal process for
planning, tracking and measuring the impact of your expenditures on
marketing communications activities such as advertising, direct
marketing, online or events. The budget sets out the funding required to
meet your communications objectives and provides a method of
managing the expenditure over a budget year.
❑ Budget Objectives
The marketing communication budget is part of the wider marketing planning
process. Your marketing strategy establishes how you will achieve your
marketing objectives.
❑ Budget Time
The budget also sets out the timescales for expenditure over the year.
Although a budget should cover the forecast costs for all planned
activities over a year.
❑ Budget Efficiencies
Putting together a budget can highlight opportunities to reduce marketing
communications costs.
❑ Budget Tracking
Budgets enable you to track planned expenditure against actual costs. To
manage the budget effectively, make sure your suppliers invoice you
promptly and advise you of any possible cost increases.
❑ Budget Metrics
Use the budget to measure how well the program achieved communications
objectives.
• Collecting Feedback
This is the last step of the marketing communication process in which the
feedback from the target customers. This can help the marker to alter the
promotion program or other marketing activities. For this purpose the
buying behaviour of targeted customers is analyzed in the light of the new
product. Questions may also be asked to the customers to collect their
views about the positive and negative aspects of the new product.
Here are some article or case study for student reference related to
integrated communication mix.
http://panmore.com/nike-marketing-communications-mix
Budget Allocation Decision
• Many companies are spending a lot of money on sales promotion than on
media advertising. The budget allocation depends on number of factors
including• the campaign,• the market• competitive situation, and• the
brand’s stage in its life cycle.
• A budget is generally a list of all planned expenses and revenues. It is a
plan for saving and spending. In other terms, a budget is an organizational
plan stated in monetary terms.
• The purpose of budgeting is to:• Provide a forecast of revenues and
expenditures• Enable the actual financial operation of the business to be
measured against the forecast.
• Establishing the Budget The size of firms advertising and promotions
budget can vary from a few thousand dollars to more than a billion.
• When the companies like Ford, Procter & Gamble and General motors
spend over 2 billion dollars per year to promote their product, they expect
to accomplish their objective.
❑ Budgeting approaches
❖ Top down budgeting
• Top management sets the spending limit.
• Promotion budget set to stay with in spending limit
❖ Bottom- up budgeting
• Promotion objectives are set
• Activities needed to achieve objectives are planned
• Costs of promotion activities are budgeted
• Total promotion budget is approved by top management
Promotion Mix
• The term ‘promotional mix’ is used to refer to the combination of different
kinds of promotional tools used by a firm to advertise and sell its products.
• The main promotional tools or activities which make up promotion mix are
personal selling, advertising, publicity and sales promotion. These are also
known as elements of promotion mix.
• Philip Kotler opines, “A company’s total marketing communication mix
also called promotion mix consists of specific blends of advertising,
personal selling, sales promotion, public relations and direct marketing
tools that the company use to pursue its advertising and marketing
objectives.”
Promotion Mix – Scope of Promotion Mix in Different Areas
Promotion basically deals with outer world and therefore comprise of more
and more communication strategies and tools for attracting customers.
Scope of promotion mix can be stressed with the help of following key
points:
Advertising, Personal Selling, Sales Promotion, Public Relation and publicity
etc.
Difference Between IMC(Integrated Communication Mix) and
Promotion Mix
The key difference between IMC and promotional mix is that IMC refers to
conveying the brand message to create a positive and strong impression on
customers while promotional mix refers to the blend
of marketing elements to promote business. IMC and promotional mix are
very important concepts in marketing.
Advertising
The word advertising comes from the Latin word "advertere” meaning to turn
the minds of towards. Advertising is how a company encourages people to
buy their products, services or ideas. ... An advertisement (or "ad" for short)
is anything that draws good attention towards these things. It is usually
designed by an advertising agency for a sponsor or brand and made public by
various media.
5 Ms of Advertising
The Five Ms of Advertising
Developing and Managing an
Advertising Program
SETTING THE OBJECTIVES
1) Informative advertising :
The prime objective of the advertising is to inform the existing and potential
customers about the product.
2) Persuasive advertising:
It aims to create liking preference, conviction and purchase of a product or
service. Persuasion will create demand of the product.
3) Reminder advertising:
It aims to simulate repeat purchase of products and services.
This will remind the customers that the product may be needed in the near
future.
4) Reinforcement advertising:
It aims to convince current purchases that they made the right choice.
DECIDING ON THE ADVERTISING BUDGET.
After determining advertising objectives the company next sets its advertising budget for
each product.
Specific factors that should be considered when setting the advertising budget.
1) Stage in the product life cycle:
New products typically need large advertising Budgets to build awareness and to gain
consumer trial. Mature brands usually require lower budgets as the ratio to sales.
2) Market share and consumer base:
High market share brands usually needs more advertising spending as a person of sales than
do low market share brands. Building the market or taking share from competitor requires
larger advertising spending than does simply maintaining current share.
3) Competition
In a market with many competitors and high advertising spending, a brand must advertise
more heavily to be notices above the noise in the market.
4) Advertising frequency:
when many repetitions are needed to present the brand’s message to consumers, the
advertising budget must be larger.
5) Product substitutability:
A brand that closely resembles other brands in its product class requires heavy advertising
to set it apart. When the product differs greatly from competitors, advertising can be used
to point out the differences to consumers.
DEVELOPING THE ADVERTISING CAMPAIGN
In designing and evaluating an ad campaign, it is important to distinguish the
message strategy or positioning of an ad from its creative strategy.
1. Message generation and evaluation
A large advertising budget does not guarantee a successful advertising campaign.
No matter how big the budget, advertising can succeed only if commercials gain
attention and communicate well.
Today’s advertising messages must be better planned, more imaginative, more
entertaining and more rewarding to consumers to gain and hold attention.
Creative strategy will play an increasingly important role in advertising success.
Effective message strategy begins with identifying customer benefits that can be
used as advertising appeals. Advertising appeals should have three characteristics:
+Meaningful, Believable and Distinctive.
2. Creative Development and Execution
The impact of the message depends not only on what is said but also on how
it is said. Any message can be presented in different execution styles.
Message execution can be decisive. They can be following advertising
medium for execution:
Television Ads: It is generally acknowledged as the most powerful advertising
medium. Properly designed and executed TV ads can improve brand equity
and affect sales and profits.
Print Ads: It offer a stark contrast to broadcast media. In general there are
two main print media: Magazines and Newspaper.
Radio Ads: It is cheaper than television. Radio listening is expected to
increase significantly over the coming years. Radio Ads can be extremely
creative. Creative devices can tap into the listeners imagination to create
powerfully relevant and popular images.
Film Ads: India is the largest producer of films in the world. Many local firms
use this medium to advertise their products and services as this minimizes
the spillage and the wastage of advertisement money.
SOCIAL RESPONSIBILITY REVIEW:
Advertiser and their agencies must be sure advertising does not over step social and legal
norms. Public policy makers have developed a substantial body of laws and regulations to
govern advertising.
DECIDING ON MEDIA AND MEASURING EFFECTIVENESS:
After choosing the message, the advertiser’s next task is to chose media to carry it. Major
steps in media selection are as under:
1) Deciding on reach, frequency, and impact:
Reach is a measure of the percentage of people in the target market who are exposed to the
ad campaign during a given period of time.
Frequency is a measure of how many times the average percent in the target market is
exposed to the message.
The advertiser must also decide on the desired media impact-the qualitative value of a
message exposure through a given medium.
2) Choosing among major media types:
The major media types are newspapers, televisions, direct mail, radio, magazines, outdoor and
online. The media habits of the target consumers will affect media choice. Advertisers look for
media that reach target consumers effectively. Different types of messages may require
different media. Cost is another major factor in media choice. The media planner looks at the
total cost of using a medium. Media impact an cost must be reexamined regularly. As a result,
advertisers are increasingly turning to alternative media, ranging from cable television and
outdoor advertising to parking meters and shopping cards.
3) Selecting specific vehicles:
The media planner now must choose the best media vehicles and specific
media within each general media type, media planners must complete the
cost per thousand percents reached by a vehicle. The media planners must
also consider the cost of producing ads for different media. Whereas,
newspaper ads may cost very little to produce flashy television ads may cost
millions.
4) Deciding on media timing and allocation:
The advertiser must also decide how to schedule the advertising over the
course of a year. The firm can vary its advertising to follow the seasonal
pattern, or to be the same all year. Most firms do some seasonal advertising.
The advertiser has to chose the pattern of the ads. The idea is to advertise
heavily for a short period to build awareness that carries over to the next
advertising period.
EVALUATING ADVERTISING EFFECTIVENESS:
Good planning and control of advertising depend on measures of advertising
effectiveness. Most advertisers try to measure the communication effect of
an ad-that is, its potential effect on awareness, knowledge, or preferences.
Communication-Effect Research:
It seeks to determine whether an ad is communicating effectively. There are
three major methods of pre testing.
Consumer Feedback Method: Ask the consumers for their reactions to a
proposed ad.
Portfolio Test :It ask consumers to view or listen to a portfolio of
advertisements. Consumers are than asked to recall all the ads on their
contains, aided or unaided by the interviewer.
Laboratory Test: It use equipment to measure physiological reactions like
heartbeat, blood pressure, perspiration to an ad; or consumers may be ask to
turn a knob to indicate their moment to moment liking or interest while
viewing sequence material.
Sales Promotion
Sales Promotions are a marketing communication tool for stimulating revenue or
providing incentives or extra value to distributors, sales staff, or customers over a
short time period. Sales promotion activities include special offers, displays,
demonstrations, and other non-recurring selling efforts that aren’t part of the
ordinary routine. As an additional incentive to buy, these tools can be directed at
consumers, retailers and other distribution partners, or the manufacturer’s own
sales force.
Major Decisions in Sales Promotion
1. Establishing objectives: sales promotion objectives are derived from
broader promotion objectives which are derived from more basic marketing
objectives developed for the product. The specific objectives for sales
promotion vary with the target market. For consumers objectives include
encouraging purchase of larger size units building trial among nonusers and
attracting switchers away from competitor's brands.
2. Select the tools: there are three types of tools:
❖ Selecting consumer promotion tools: the promotion planner should take
into account the type of market sales promotion objectives competitive
conditions and each tools cost effectiveness.
❖ Selecting trade promotion tools: manufactures use a number of trade
promotion tools. Surprisingly a higher proportion of the pie is devoted to
trade promotion tools than to consumer promotion with media
advertising capturing the remaining 25.2 percent. Manufactures award
money to the trade for four reasons.
Selecting business and sales force promotion tools: Companies spend
billions of rupees on business and sales force promotion tools. These tools
are used to gather business leads impress and reward customers and
motivate the sales force to greater effort. Companies typically develop
budgets for each business promotion tool that remain fairly constant from
year to year.
3. Developing the program: in planning sales promotion programs marketers
are increasingly blending several media into a total campaign concept. In
deciding to use a particular incentive marketers have several factors to
consider such as : size, condition, duration, distribution vehicles, timing, sales
promotion budgets etc.
4.Implementing and controlling the program: marketing managers must
prepare implementation and control plans for each individual promotion.
Implementation planning must cover lead time and sell in time. Lead time is
the time necessary to prepare the program prior to launching it distributed
preparation of advertising and point of sale materials notification of field
sales personnel establishment of allocations for individual distributors
purchasing and printing of special premiums or packaging materials
production of advance inventories in preparation for release at a specific date
and finally the distribution to the retailer.
Sell in time begins with the promotional launch and ends when
approximately 99% of the deal merchandise is in the hands of consumers.
6. Evaluating results: Manufactures can use three methods to measure sales
promotion effectiveness sales data, consumer surveys and experiments.
PUBLIC RELATION
Public relation is an important element in the promotion mix. In the era of
globalization, the most of the multinational companies make concrete efforts
to manage and maintain its relationships with its customers. Most of the
multinational companies have its public relation department that makes all
effort to monitor the attitude and perceptions of customers.
An efficient and good public relation department use to adopt positive
programs for this purpose and always emphasize to eliminate negative
publicity arises due to questionable practices.
It is used to perform following functions:
(1) Press relations – To put information about organization in a very positive
way.
(2) Publicity of Product – It can be done by publicising the events to make
publicity of Products.
(3) Effective Communication – It is necessary to create and promote
understanding of the organisation. It can be obtained through internal and
external communication.
(4) To Promote Lobbying – It necessary to deal with legislators or government
as to encourage or discourage a particular legislation or regulation.
(5) Counseling – It is to advice the management about public issues, position
of the company and image during the good and bad times.
https://www.feedough.com/what-is-public-relations-pr-
functions-types-
examples/#:~:text=Public%20Relations%20Examples,-
PR%20stunts%20or&text=The%20outbreak%20of%20Ebol
a%20virus,the%20cause%20through%20its%20website.
Events & Experience (Sponsorship)
Event marketing is a strategy marketers use to promote their brand, product,
or service with an in-person or real-time engagement. These events can be
online or offline, and companies can participate as hosts, participants or
sponsors.
Objective of Events:-
• To identify with a particular target market or lifestyle
• To increase salience of company or product name
• To create or reinforce perceptions of key brand image associations
• To enhance corporate image
• To create experience and evoke feelings
• to express commitments to the community or on social issues
• To entertain key clients or reward key employees
• To permit merchandising or promotional opportunities
Major Sponsorship Decisions
• Choosing Event opportunities
• Designing Sponsorship Programs
• Measuring Sponsorship Activities
Online, Social Media and Mobile
Online Marketing
• Paid Media
The term paid media is exactly what it sounds like: you pay for your
marketing to show up in front of your audience.This can include everything
from search engine and display ads, to ads on social media, paid influencers
and even native advertising.
Paid media is a great way to get an immediate return on investment. It helps
you generate leads quickly, and it directs your audience back to your owned
media where you can nurture them and—eventually—make a sale. It’s also
relatively easy to measure the effectiveness of your paid media using
analytics.
• Owned Media
With owned media, you own everything: your website, your blog, and your
social media accounts. You are not paying for this content to show up in front
of your audience, but you have control over all of it.
Owned media is a smart investment in any marketing strategy because it has
staying power. You can start a website and blog on day one of a business and
maintain it all the way until the end.
Earned Media
The term earned media is cut and dry: you earn the marketing that shows up
in front of people.
This can be anything from a press release about your business to someone
talking about your products on social media.
The big benefit of earned media as part of your marketing strategy is it’s like
free advertising. Your business shows up in front of your audience at no cost
to you.
ONLINE MARKETING COMMUNICATION OPTION
Website:- A website (also written as web site) is a collection of web pages
and related content that is identified by a common domain name and
published on at least one web server. Notable examples are wikipedia.org,
google.com, and amazon.com. All publicly accessible websites collectively
constitute the World Wide Web.
Search Ads:- Whenever you look for a product or service online, Google (or
any other search-engine provider) displays a results page consisting of both
organic and sponsored results. The ads can be displayed in many ways, but
search engines typically indicate which results are sponsored and which are
not.
Display Ads:- A display ad, also known as a banner ad, is a form of online paid
advertising that is typically a designed image or a photo and copy. ... Display
ads function differently than text ads because they aren't found in search
results.
The first display ad graced the internet on October 27, 1994, on HotWired,
and it looked like this:
Email:- Email marketing is the act of sending a commercial message, typically
to a group of people, using email. In its broadest sense, every email sent to a
potential or current customer could be considered email marketing. It
involves using email to send advertisements, request business, or solicit sales
or donations.
Social Media:- Social media marketing is the use of social media platforms to
connect with your audience to build your brand, increase sales, and drive
website traffic. This involves publishing great content on your social media
profiles, listening to and engaging your followers, analyzing your results, and
running social media advertisements.
The major social media platforms (at the moment) are Facebook, Instagram,
Twitter, LinkedIn, Pinterest, YouTube, and Snapchat.
• Online Communities and Forums:- The idea of an online community
forum has garnered a fair amount of attention over the past few years,
especially since providing top-notch customer experience (CX) has
become a priority for many organizations. In fact, increasing customer
engagement through improved CX is one of the top business priorities of
2019, and an online community is one of the most effective ways to do
this.
• Blogs:- it regularly updated online journals or diaries, have become an
important outlet for word of mouth. One obvious appeal of blogs is that
they briing together people with common interest.
• Social Networks:- It become an important force in both business to
consumer and business to business marketing. Major once include
Facebook, one of the worlds biggest Linkedin which focus on career
minded professionals and Twitter also.
Direct Marketing
Direct marketing is a promotional method that involves presenting
information about your company, product, or service to your target customer
without the use of an advertising middleman. It is a targeted form of
marketing that presents information of potential interest to a consumer that
has been determined to be a likely buyer.
Top 10 best selling companies in Direct marketing:-
https://www.topdirectsellingbusiness.com/top-10-direct-selling-company-in-india/
Forms of Direct Marketing
Brochures, Catalogs, Fliers, Newsletters, Postcards, Coupons, Emails,
Targeted online display ads, Phone calls, Text messages.
DataBase Marketing
Database marketing is the art and science of aggregating and mining
consumer data based on their demographic, psychographic and behavioral
traits. Its purpose is to help organizations reach their target audiences more
efficiently while optimizing the ROI of their marketing investments.
A great example of a brand that has mastered database marketing is Amazon.
While some could argue that Amazon does not engage in heavy content
marketing (for even its B2B products), it’s apparent that Amazon leverages
and mines customer data very effectively. Amazon closely tracks what
customers have viewed, purchased or placed on wish lists, and then cross
references this data with what other users have purchased to “cross-sell” and
“up-sell” its shoppers (e.g. “You might like this too”). Database marketers
often refer to this strategic algorithm as a “recommendations engine”.
Personal Selling
Relationship marketing is a fact of customer relationship management (CRM)
that focuses on customer loyalty and long-term customer engagement rather
than shorter-term goals like customer acquisition and individual sales. The
goal of relationship marketing (or customer relationship marketing) is to
create strong, even emotional, customer connections to a brand that can
lead to ongoing business, free word-of-mouth promotion and information
from customers that can generate leads.
Personal Selling Process:
The process of personal selling includes prospecting and evaluating,
preparing, approach and presentation, overcoming objections, closing the
sale and a follow up service.
1. Prospecting and evaluating:
The effort to develop a list of potential customers is known as prospecting.
Sales people can find potential buyers, names in company records, customer
information requests from advertisements, telephone and trade association
directories, current and previous customers, friends, and newspapers.
Prospective buyers predetermined, by evaluating (1) their potential interest
in the sales person’s products and (2) their purchase power.
2. Preparing:
Before approaching the potential buyer, the salesperson should know as much as
possible about the person or company.
3. Approach and presentation:
During the approach, which constitutes the actual beginning of the communication
process, the sales person explains to the potential customer the reason for the sales,
possibly mentions how the potential buyer’s name was obtained, and gives a
preliminary explanation of what he or she is offering. The sales presentation is a
detailed effort to bring the buyer’s needs together with the product or service the
sales person represents.
4. Overcoming objections:
The primary value of personal selling lies in the sales person’s ability to receive and
deal with potential customers’ objections to purchasing the product. In a sales
presentation many objections can be dealt with immediately. These may take more
time, but still may be overcome.
5. Closing the sale:
Many sales people lose sales simply because they never asked the buyer to buy. At
several times in a presentation the sales person may to gauge how near the buyer is
to closing.
6. Follow up:
To maintain customer satisfaction, the sales person should follow up after a sale to be
certain that the product is delivered properly and the customer is satisfied with the
result.
Rural Marketing
Rural marketing is a compilation of the developed product, reasonable price,
appropriate placing and right awareness. The marketing rule sales that, the
right product, at the right price, at the right place, at the right time, through
the right medium should reach the right customer.
An organization follows rural marketing for the following reasons:
a. Rural Population – Consists of more than 720 million people and forms a
huge market for organizations.
b. Rural Economy – Contributes significantly in the country’s GDP. Rural India
has a large number of households who are aware about the branded
products and willing to buy them.
c. Relation between Rural and Urban Economy – Refers to economic
connectivity between rural and urban areas.
https://studiousguy.com/examples-of-rural-marketing/
The 4A's are Affordability, Availability,Awareness, and Acceptability.
1. Affordability: The designing of the product should match the needs of the
customer. The Customer should not think that they cannot buy it, that means
it should be in their buying capacity. The income earned in rural markets is
from different ways , so by keeping this in mind most of the companies
should design the product in such a way that it reaches the customer.
2. Availability: The greatest problem in the rural market is to reach the
customer or retailer. Its the logistics way to make the product available there
. Once it reaches the retailers shelf then there will not be any problem. This is
because there will be lesser number of brands available at market and the
Influence or image/ Relationship of the retailer makes the difference. The
companies should work out to reach the customer in time. Most of the
products are promoted well but by the time it reaches the customer it gets
late. So reaching the market should be considered.
3. Awareness: The Awareness program should be in such a manner that it
should reach the customers mindset. The main way of reaching the customer
is through the commercials on media like TV, Radio and Outdoor . The
awareness programs should be conducted at the area ( Junction) where the
village heads meet or in other way the meeting place at the villages. The
awareness program should be in such a way that it should contain some
message to the audience, there should be some concern for them and their
place. The promotional activities should be good in the local language.
Apart from this there are some things which the company should think of,
such as Colour of the product, Packaging , logo and slogan so on. This should
be in such a way that by looking at the product only the customer should feel
that they can go for that , and they should be in such a position to
differentiate the product form the copy cat one.
4. Acceptability: The most important theme of Marketing Mix is
Acceptability. The customer should think that they can buy the product by
putting an extra money on that. They should feel that the product is designed
as per their needs and it should deliver a great solution to the customer. They
should think that the product gives some value to them , and it should serve
the purpose what they are planning to buy for. The customer should feel the
comfort with the product and there should not be any hesitation to go for it.
Ways of Rural Marketing
The rural marketing involves two primary elements; one is rural and
second is urban. The exchange of goods between these two markets can
be understood in the following ways:Ways of Rural Marketing
Urban to Rural: The products
manufactured in cities such as the
FMCG products, fertilizers, consumer
durables, etc. are made available in the
remote areas. This is termed as urban
to rural marketing.
Rural to Urban: The goods manufactured or
grown in rural areas or villages, including crops and other agricultural
products, handicraft items, pottery products, etc. are sold to the
consumers of urban areas. It is known as rural to urban marketing.
Rural to Rural: When a rural manufacturer sells products like cattle,
pottery, carts, etc. to other villages, it is called as rural to rural marketing.
Features of a Rural Market
1. Low Standard of Living: The village lifestyle is quite conservative and
straightforward. People here spend more on necessities instead of luxury
goods, making it very different from that of city life.
2. Large and Scattered Market: A significant percentage of the population
resides in villages. There are numerous villages located throughout the
country, with a small group of people living in each of them. Thus, the
rural market is spread over a vast area.
3. Traditional Outlook: The village population tend to stick to their
traditions and are resistant to change due to low literacy level. However,
the rural youth is initiating development though at a slower pace.
4. Agriculture is Major Source of Income: The village population is highly
dependant upon the agricultural income for their living. In the case of
crop failure, the rural people have low disposable income.
5. Development of Infrastructure: The rural areas lack proper infrastructure
facilities such as appropriate transportation, cemented roads,
communication network, banks, warehouses, etc.
6. Diverse Socio-Economic Background: Since the fertility of the land is
uncertain and covers a large geographical rural area, there is a social-
economic diversity in the people of these areas.
7. Seasonal Demand: The seasons and stages of agriculture, influence the
demand for goods and services in rural markets. Hence they have two major
seasons, namely kharif and ragi.
8. Prevalence of Spurious Brands: In rural areas, people are more price-
conscious and illiterate. Due to this, several fake brands penetrate these
markets with cheap products that look similar to the original ones.
Low Literacy Level: The percentage of illiteracy is quite high in remote areas.
Thus, disconnecting them with the print media and therefore, the marketers
use another medium such as radio, roadshows and nukkad dramas for rural
marketing.

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Promotion Management

  • 1. PROMOTION MANAGEMENT Prepared by Ms. Shery Asthana Asst. Prof. (Greater Noida Institute of Management)
  • 2. Content ● Introduction of Promotion Management ● Integrated Marketing Communication ● Communication Development process ● Budget Allocation decision in Marketing Communication ● Promotion Mix ● Advertising- Meaning, Objective ● Advertising Budget ● Fundamental of sales Promotion ● Public Relations ● Direct Marketing ● Rural Marketing ● Digital and Mobile Marketing
  • 3. Marketing Communications > Marketing communications are the means by which firms attempt to inform, persuade, and remind consumers—directly or indirectly—about the products and brands they sell. In a sense, marketing communications represent the voice of the company and its brands; they are a means by which the firm can establish a dialogue and build relationships with consumers. > By strengthening customer loyalty, marketing communications can contribute to customer equity. >Marketing communications also work for consumers when they show how and why a product is used, by whom, where, and when. > Consumers can learn who makes the product and what the company and brand stand for, and they can get an incentive for trial or use. >Marketing communications allow companies to link their brands to other people, places, events, brands, experiences, feelings, and things. >They can contribute to brand equity—by establishing the brand in memory and creating a brand image—as well as drive sales and even affect shareholder value.
  • 4. MARKETING COMMUNICATIONS MIX The marketing communications mix consists of eight major modes of communication: 1. Advertising—Any paid form of non personal presentation and promotion of ideas, goods , or services by an identified sponsor via print media (newspapers and magazines), broadcast media (radio and television), network media (telephone, cable, satellite, wireless), electronic media (audiotape, videotape, videodisk, CD-ROM , Web page), and display media (billboards, signs, posters). 2. Sales promotion—A variety of short-term incentives to encourage trial or purchase of a product or service including consumer promotions (such as samples, coupons, and premiums), trade promotions (such as advertising and display allowances), and business and sales force promotions (contests for sales reps). 3. Events and experiences—Company-sponsored activities and programs designed to create daily or special brand-related interactions with consumers, including sports, arts, entertainment, and cause events as well as less formal activities. 4. Public relations and publicity—A variety of programs directed internally to employees of the company or externally to consumers, other firms, the government, and media to promote or protect a company’s image or its individual product communications. https://www.youtube.com/watch?v=NjBxoN4spKo ( MomBeAGirlAgain) https://www.youtube.com/watch?v=8QDlv8kfwIM ( ShareTheLoad )
  • 5. 5. Direct marketing—Use of mail, telephone, fax, e-mail, or Internet to communicate directly with or solicit response or dialogue from specific customers and prospects. 6. Interactive marketing—Online activities and programs designed to engage customers or prospects and directly or indirectly raise awareness, improve image, or elicit sales of products and services. https://outgrow.co/blog/interactive-marketing-examples 7. Word-of-mouth marketing—People-to-people oral, written, or electronic communications that relate to the merits or experiences of purchasing or using products or services. 8. Personal selling—Face-to-face interaction with one or more prospective purchasers for the purpose of making presentations, answering questions, and procuring orders. Company communication goes beyond these. The product’s styling and price, the shape and colour of the package, the salesperson’s manner and dress, the store décor, the company’s stationery—all communicate something to buyers. Every brand contact delivers an impression that can strengthen or weaken a customer’s view of a company. Marketing communication activities contribute to brand equity and drive sales in many ways: by creating brand awareness, forging brand image in consumers’ memories, eliciting positive brand judgments or feelings, and strengthening consumer loyalty.
  • 6. Role of Marketing Communication The Changing Marketing Communications Environment Technology and other factors have profoundly changed the way consumers process communications, and even whether they choose to process them at all. The rapid diffusion of multipurpose smart phones, broadband and wireless Internet connections, and ad-skipping digital video recorders (DVRs) have eroded the effectiveness of the mass media. In 1960, a company could reach 80 percent of U.S. women with one 30-second commercial aired simultaneously on three TV networks: ABC, CBS, and NBC. Today, the same ad would have to run on 100 channels or more to achieve this marketing feat. Consumers not only have more choices of media, they can also decide whether and how they want to receive commercial content.“Marketing Insight: Don’t Touch That Remote” describes developments in television advertising. Marketing communications in almost every medium and form have been on the rise, and some consumers feel they are increasingly invasive. Marketers must be creative in using technology but not intrude in consumers’ lives. Consider what Motorola did to solve that problem.
  • 7. MotorolaAt Hong Kong International Airport, Motorola’s special promotion enabled loved ones to “Say Goodbye” via photos and messages sent from their phones to digital billboards in the departure area. When they checked into the gate area, travellers saw photos of the friends and family who had just dropped them off as part of a digital billboard in the image of a giant Motorola mobile phone. The company also offered departing travellers special instructions for using their phones to send a Motorola-branded good-bye video to friends and families, featuring soccer star David Beckham and Asian pop star Jay Chou.
  • 8. Marketing Communications, Brand Equity and Sales In this new communication environment, although advertising is often a central element of a marketing communications program, it is usually not the only one—or even the most important one—for sales and building brand and customer equity. Like many other firms, over a five-year period from 2004 to 2008, Kimberly-Clark cut the percentage of its marketing budget spent on TV from 60 percent to a little over 40 percent as it invested more heavily in Internet and experiential marketing. Consider Gap’s effort in launching a new line of jeans. Gap By 2009, with sales slumping, Gap decided to celebrate the 40th anniversary of the opening of its first Gap store by introducing the “Born to Fit” 1969 Premium Jeans line. For its launch, Gap moved away from its typical media-intensive ad campaign, as exemplified by its popular 1998 “Khakis Swing” holiday ads. The campaign featured newer communications elements such as a Facebook page, video clips, a realistic online fashion show on a virtual catwalk, and a StyleMixer iPhone app. The app enabled users to mix and match clothes and organize outfits, get feedback from Facebook friends, and receive discounts when near a Gap store. Simultaneous in-store acoustic shows across 700 locations and temporary pop-up denim stores in major urban locations added to the buzz. KhakhiSwing https://www.youtube.com/watch?v=XJ735krOiPo
  • 9. MARKETING COMMUNICATION EFFECTS The way brand associations are formed does not matter. In other words, whether a consumer has an equally strong, favourable , and unique brand association of Subaru with the concepts “outdoors,” “active,” and “rugged” because of exposure to a TV ad that shows the car driving over rugged terrain at different times of the year, or because Subaru sponsors ski, kayak, and mountain bike events, the impact in terms of Subaru’s brand equity should be identical. (Subaru is the automobile manufacturing division of Japanese transportation conglomerate Subaru Corporation, the twenty-second largest automaker by production worldwide in 2012. Subaru cars are known for their use of a boxer engine layout in most vehicles above 1500 cc.) https://www.youtube.com/watch?v=koLrsIDaKrc (ski with subaro commercial ad) In building brand equity, marketers should be “media neutral” and evaluate all communication options on effectiveness (how well does it work?) and efficiency (how much does it cost?). Personally financial Web site Mint challenged market leader Intuit—and was eventually acquired by the company—on a marketing budget a fraction of what companies typically spend. A well-read blog, a popular Facebook page, and other social media—combined with extensive PR—helped attract the younger crowd the Mint brand was after.
  • 10. Philips also took another tack in launching a new product. Philips Carousel When Dutch electronics leader Philips wanted to demonstrate the quality of the “world’s first cinema proportion” TV, it chose to create Carousel, an interactive, long-form Internet film. In this Cannes Grand Prix award-winning effort, online viewers could control the story of a botched robbery while seeing the benefits of the new $3,999 home cinema TV. The film showed an epic “frozen moment” cops and robbers shootout sequence that included clowns, explosions, a decimated hospital, and lots of broken glass, bullet casings, and money. By clicking hot spots in the video, viewers could toggle between the new set’s 21:9 display proportion and a conventional flat screen’s 16:9, as well as activate the set’s signature Ambilight backlighting. The success of the campaign led Phillips to launch a “Parallel Lines” campaign with five short films from famed director Ridley Scott’s shop, promoting its whole range of home cinema TVs. https://www.youtube.com/watch?v=4JJyXryevxY
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  • 12. Communication Process Models (Response Hierarchy Model) Stage AIDA Model Hierarchy of Effects Model Innovation Adoption Model Communication Model Cognitive Stage Attention Awareness Knowledge Awareness Exposure Reception Cognitive Response Affective Stage Interest Desire Liking Preference Interest Evaluation Attitude Intention Behaviour Stage Action Purchase Trial Adoption Behaviour
  • 13. Marketing Communication Development Process There are certain steps that should be involved in the effective marketing communication process. The marketing and promotional activities should focus on these steps in order to attract a huge portion of long run customers. Following are the steps that make communication process effective. • Identification of the Target audience • Determination of the communication objectives • Designing of Message • Select Channels • Establish budget • Collecting Feedback or Measure Result
  • 14. • Understand Your Target Audience Before you can create a strategic communications plan, you need to understand your target audience. Any marketing communications plan has to be formulated for a specific group of target customers. Your IMC has to define the needs and characteristics of this target audience. Ex:- Social Media Campaign Ex:- In Diaper Ads. Target Audience is Mother. • Determination of the communication objectives The communication objectives may also be different in some cases. For example, when the product is in the introduction stages in a market, the emphasis of communication could be on consumer education and creation of primary demand. In a market where the product is at other stages of the life cycle, the communication objectives would be different.
  • 15. • Designing of Message The decisions regarding the message content, message structure, message format and message source are influenced by certain environmental factors like cultural factors and legal factors. The differences in the environmental factors among the countries may, therefore, call for different messages so as to be appropriate for each market. Formulating the communication to achieve the desired response requires answering three questions: What to say(message strategy), how to say it (creative strategy), and who should say it (message source). https://thunderbird.asu.edu/knowledge-network/its-peach-not-stork- how-pg-turned-around-its-pampers-fail- japan#:~:text=Japanese%2Dmade%20diapers%20were%20indisputably,dr iving%20Pampers%20out%20of%20business.&text=Japan's%20complex% 20regulatory%20environment%20also,first%20to%20fail%20in%20Japan. Message Strategy :- In selecting message strategy, management searches for appeals, themes, or ideas that will tie in to the brand positioning and help establish points of parity or points of difference.
  • 16. Creative Strategy :- it is the way marketers translate their messages into a specific communication. We can broadly classify them as either informational or transformational appeals. ❑ Informational Appeals:- It elaborates attributes or benefits. Problem Solving ads:- Long lasting pain relief Product demonstration ads:- Thompson Water seal withstands intense rain or snow) product comparison ads testimonial ads from unknown or celebrity endorsers. ❑ Transformational Appeals :- it elaborates on a non-product related benefits or image. It might depict what kind of person uses a brand (VW advertised to active, youthful people with its “Drivers Wanted” Campaign) https://www.writework.com/essay/volkswagen-s-driver-s-wanted-ad- campaign-case-study or what kind of experience results from use (Pringles advertised “Once You Pop, The fun Don’t stop”) https://www.youtube.com/watch?v=dmpQTpY76yI Transformational appeals often attempt to stir up emotions that will motivate for purchase. Such as brush your teeth or stop smoking etc.
  • 17. • Select the Communication Channels Personal communication channels- channels through which two or more people communicate directly with each other, including face to face, on the phone, via mail or e-mail, or even through an internet “chat”. Personal communication channels are effective because they allow for personal addressing and feedback. Non personal (Mass) Communication Channels -Media channels include print media (newspaper, magazines, souvenirs, proceedings of conferences), broadcast media (radio, television), display media (billboards, signs, posters) and electronic media (audiotape, videotape, videodisk, CD-ROM). • Establish Budget A marketing communication budget provides a formal process for planning, tracking and measuring the impact of your expenditures on marketing communications activities such as advertising, direct marketing, online or events. The budget sets out the funding required to meet your communications objectives and provides a method of managing the expenditure over a budget year.
  • 18. ❑ Budget Objectives The marketing communication budget is part of the wider marketing planning process. Your marketing strategy establishes how you will achieve your marketing objectives. ❑ Budget Time The budget also sets out the timescales for expenditure over the year. Although a budget should cover the forecast costs for all planned activities over a year. ❑ Budget Efficiencies Putting together a budget can highlight opportunities to reduce marketing communications costs. ❑ Budget Tracking Budgets enable you to track planned expenditure against actual costs. To manage the budget effectively, make sure your suppliers invoice you promptly and advise you of any possible cost increases. ❑ Budget Metrics Use the budget to measure how well the program achieved communications objectives.
  • 19. • Collecting Feedback This is the last step of the marketing communication process in which the feedback from the target customers. This can help the marker to alter the promotion program or other marketing activities. For this purpose the buying behaviour of targeted customers is analyzed in the light of the new product. Questions may also be asked to the customers to collect their views about the positive and negative aspects of the new product. Here are some article or case study for student reference related to integrated communication mix. http://panmore.com/nike-marketing-communications-mix
  • 20. Budget Allocation Decision • Many companies are spending a lot of money on sales promotion than on media advertising. The budget allocation depends on number of factors including• the campaign,• the market• competitive situation, and• the brand’s stage in its life cycle. • A budget is generally a list of all planned expenses and revenues. It is a plan for saving and spending. In other terms, a budget is an organizational plan stated in monetary terms. • The purpose of budgeting is to:• Provide a forecast of revenues and expenditures• Enable the actual financial operation of the business to be measured against the forecast. • Establishing the Budget The size of firms advertising and promotions budget can vary from a few thousand dollars to more than a billion. • When the companies like Ford, Procter & Gamble and General motors spend over 2 billion dollars per year to promote their product, they expect to accomplish their objective.
  • 21. ❑ Budgeting approaches ❖ Top down budgeting • Top management sets the spending limit. • Promotion budget set to stay with in spending limit ❖ Bottom- up budgeting • Promotion objectives are set • Activities needed to achieve objectives are planned • Costs of promotion activities are budgeted • Total promotion budget is approved by top management
  • 22. Promotion Mix • The term ‘promotional mix’ is used to refer to the combination of different kinds of promotional tools used by a firm to advertise and sell its products. • The main promotional tools or activities which make up promotion mix are personal selling, advertising, publicity and sales promotion. These are also known as elements of promotion mix. • Philip Kotler opines, “A company’s total marketing communication mix also called promotion mix consists of specific blends of advertising, personal selling, sales promotion, public relations and direct marketing tools that the company use to pursue its advertising and marketing objectives.” Promotion Mix – Scope of Promotion Mix in Different Areas Promotion basically deals with outer world and therefore comprise of more and more communication strategies and tools for attracting customers. Scope of promotion mix can be stressed with the help of following key points: Advertising, Personal Selling, Sales Promotion, Public Relation and publicity etc.
  • 23. Difference Between IMC(Integrated Communication Mix) and Promotion Mix The key difference between IMC and promotional mix is that IMC refers to conveying the brand message to create a positive and strong impression on customers while promotional mix refers to the blend of marketing elements to promote business. IMC and promotional mix are very important concepts in marketing.
  • 24. Advertising The word advertising comes from the Latin word "advertere” meaning to turn the minds of towards. Advertising is how a company encourages people to buy their products, services or ideas. ... An advertisement (or "ad" for short) is anything that draws good attention towards these things. It is usually designed by an advertising agency for a sponsor or brand and made public by various media. 5 Ms of Advertising The Five Ms of Advertising
  • 25. Developing and Managing an Advertising Program SETTING THE OBJECTIVES 1) Informative advertising : The prime objective of the advertising is to inform the existing and potential customers about the product. 2) Persuasive advertising: It aims to create liking preference, conviction and purchase of a product or service. Persuasion will create demand of the product. 3) Reminder advertising: It aims to simulate repeat purchase of products and services. This will remind the customers that the product may be needed in the near future. 4) Reinforcement advertising: It aims to convince current purchases that they made the right choice.
  • 26. DECIDING ON THE ADVERTISING BUDGET. After determining advertising objectives the company next sets its advertising budget for each product. Specific factors that should be considered when setting the advertising budget. 1) Stage in the product life cycle: New products typically need large advertising Budgets to build awareness and to gain consumer trial. Mature brands usually require lower budgets as the ratio to sales. 2) Market share and consumer base: High market share brands usually needs more advertising spending as a person of sales than do low market share brands. Building the market or taking share from competitor requires larger advertising spending than does simply maintaining current share. 3) Competition In a market with many competitors and high advertising spending, a brand must advertise more heavily to be notices above the noise in the market. 4) Advertising frequency: when many repetitions are needed to present the brand’s message to consumers, the advertising budget must be larger. 5) Product substitutability: A brand that closely resembles other brands in its product class requires heavy advertising to set it apart. When the product differs greatly from competitors, advertising can be used to point out the differences to consumers.
  • 27. DEVELOPING THE ADVERTISING CAMPAIGN In designing and evaluating an ad campaign, it is important to distinguish the message strategy or positioning of an ad from its creative strategy. 1. Message generation and evaluation A large advertising budget does not guarantee a successful advertising campaign. No matter how big the budget, advertising can succeed only if commercials gain attention and communicate well. Today’s advertising messages must be better planned, more imaginative, more entertaining and more rewarding to consumers to gain and hold attention. Creative strategy will play an increasingly important role in advertising success. Effective message strategy begins with identifying customer benefits that can be used as advertising appeals. Advertising appeals should have three characteristics: +Meaningful, Believable and Distinctive.
  • 28. 2. Creative Development and Execution The impact of the message depends not only on what is said but also on how it is said. Any message can be presented in different execution styles. Message execution can be decisive. They can be following advertising medium for execution: Television Ads: It is generally acknowledged as the most powerful advertising medium. Properly designed and executed TV ads can improve brand equity and affect sales and profits. Print Ads: It offer a stark contrast to broadcast media. In general there are two main print media: Magazines and Newspaper. Radio Ads: It is cheaper than television. Radio listening is expected to increase significantly over the coming years. Radio Ads can be extremely creative. Creative devices can tap into the listeners imagination to create powerfully relevant and popular images. Film Ads: India is the largest producer of films in the world. Many local firms use this medium to advertise their products and services as this minimizes the spillage and the wastage of advertisement money.
  • 29. SOCIAL RESPONSIBILITY REVIEW: Advertiser and their agencies must be sure advertising does not over step social and legal norms. Public policy makers have developed a substantial body of laws and regulations to govern advertising. DECIDING ON MEDIA AND MEASURING EFFECTIVENESS: After choosing the message, the advertiser’s next task is to chose media to carry it. Major steps in media selection are as under: 1) Deciding on reach, frequency, and impact: Reach is a measure of the percentage of people in the target market who are exposed to the ad campaign during a given period of time. Frequency is a measure of how many times the average percent in the target market is exposed to the message. The advertiser must also decide on the desired media impact-the qualitative value of a message exposure through a given medium. 2) Choosing among major media types: The major media types are newspapers, televisions, direct mail, radio, magazines, outdoor and online. The media habits of the target consumers will affect media choice. Advertisers look for media that reach target consumers effectively. Different types of messages may require different media. Cost is another major factor in media choice. The media planner looks at the total cost of using a medium. Media impact an cost must be reexamined regularly. As a result, advertisers are increasingly turning to alternative media, ranging from cable television and outdoor advertising to parking meters and shopping cards.
  • 30. 3) Selecting specific vehicles: The media planner now must choose the best media vehicles and specific media within each general media type, media planners must complete the cost per thousand percents reached by a vehicle. The media planners must also consider the cost of producing ads for different media. Whereas, newspaper ads may cost very little to produce flashy television ads may cost millions. 4) Deciding on media timing and allocation: The advertiser must also decide how to schedule the advertising over the course of a year. The firm can vary its advertising to follow the seasonal pattern, or to be the same all year. Most firms do some seasonal advertising. The advertiser has to chose the pattern of the ads. The idea is to advertise heavily for a short period to build awareness that carries over to the next advertising period.
  • 31. EVALUATING ADVERTISING EFFECTIVENESS: Good planning and control of advertising depend on measures of advertising effectiveness. Most advertisers try to measure the communication effect of an ad-that is, its potential effect on awareness, knowledge, or preferences. Communication-Effect Research: It seeks to determine whether an ad is communicating effectively. There are three major methods of pre testing. Consumer Feedback Method: Ask the consumers for their reactions to a proposed ad. Portfolio Test :It ask consumers to view or listen to a portfolio of advertisements. Consumers are than asked to recall all the ads on their contains, aided or unaided by the interviewer. Laboratory Test: It use equipment to measure physiological reactions like heartbeat, blood pressure, perspiration to an ad; or consumers may be ask to turn a knob to indicate their moment to moment liking or interest while viewing sequence material.
  • 32. Sales Promotion Sales Promotions are a marketing communication tool for stimulating revenue or providing incentives or extra value to distributors, sales staff, or customers over a short time period. Sales promotion activities include special offers, displays, demonstrations, and other non-recurring selling efforts that aren’t part of the ordinary routine. As an additional incentive to buy, these tools can be directed at consumers, retailers and other distribution partners, or the manufacturer’s own sales force.
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  • 34. Major Decisions in Sales Promotion 1. Establishing objectives: sales promotion objectives are derived from broader promotion objectives which are derived from more basic marketing objectives developed for the product. The specific objectives for sales promotion vary with the target market. For consumers objectives include encouraging purchase of larger size units building trial among nonusers and attracting switchers away from competitor's brands. 2. Select the tools: there are three types of tools: ❖ Selecting consumer promotion tools: the promotion planner should take into account the type of market sales promotion objectives competitive conditions and each tools cost effectiveness. ❖ Selecting trade promotion tools: manufactures use a number of trade promotion tools. Surprisingly a higher proportion of the pie is devoted to trade promotion tools than to consumer promotion with media advertising capturing the remaining 25.2 percent. Manufactures award money to the trade for four reasons.
  • 35. Selecting business and sales force promotion tools: Companies spend billions of rupees on business and sales force promotion tools. These tools are used to gather business leads impress and reward customers and motivate the sales force to greater effort. Companies typically develop budgets for each business promotion tool that remain fairly constant from year to year.
  • 36. 3. Developing the program: in planning sales promotion programs marketers are increasingly blending several media into a total campaign concept. In deciding to use a particular incentive marketers have several factors to consider such as : size, condition, duration, distribution vehicles, timing, sales promotion budgets etc. 4.Implementing and controlling the program: marketing managers must prepare implementation and control plans for each individual promotion. Implementation planning must cover lead time and sell in time. Lead time is the time necessary to prepare the program prior to launching it distributed preparation of advertising and point of sale materials notification of field sales personnel establishment of allocations for individual distributors purchasing and printing of special premiums or packaging materials production of advance inventories in preparation for release at a specific date and finally the distribution to the retailer.
  • 37. Sell in time begins with the promotional launch and ends when approximately 99% of the deal merchandise is in the hands of consumers. 6. Evaluating results: Manufactures can use three methods to measure sales promotion effectiveness sales data, consumer surveys and experiments. PUBLIC RELATION Public relation is an important element in the promotion mix. In the era of globalization, the most of the multinational companies make concrete efforts to manage and maintain its relationships with its customers. Most of the multinational companies have its public relation department that makes all effort to monitor the attitude and perceptions of customers. An efficient and good public relation department use to adopt positive programs for this purpose and always emphasize to eliminate negative publicity arises due to questionable practices.
  • 38. It is used to perform following functions: (1) Press relations – To put information about organization in a very positive way. (2) Publicity of Product – It can be done by publicising the events to make publicity of Products. (3) Effective Communication – It is necessary to create and promote understanding of the organisation. It can be obtained through internal and external communication. (4) To Promote Lobbying – It necessary to deal with legislators or government as to encourage or discourage a particular legislation or regulation. (5) Counseling – It is to advice the management about public issues, position of the company and image during the good and bad times. https://www.feedough.com/what-is-public-relations-pr- functions-types- examples/#:~:text=Public%20Relations%20Examples,- PR%20stunts%20or&text=The%20outbreak%20of%20Ebol a%20virus,the%20cause%20through%20its%20website.
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  • 40. Events & Experience (Sponsorship) Event marketing is a strategy marketers use to promote their brand, product, or service with an in-person or real-time engagement. These events can be online or offline, and companies can participate as hosts, participants or sponsors. Objective of Events:- • To identify with a particular target market or lifestyle • To increase salience of company or product name • To create or reinforce perceptions of key brand image associations • To enhance corporate image • To create experience and evoke feelings • to express commitments to the community or on social issues • To entertain key clients or reward key employees • To permit merchandising or promotional opportunities Major Sponsorship Decisions • Choosing Event opportunities • Designing Sponsorship Programs • Measuring Sponsorship Activities
  • 41. Online, Social Media and Mobile Online Marketing • Paid Media The term paid media is exactly what it sounds like: you pay for your marketing to show up in front of your audience.This can include everything from search engine and display ads, to ads on social media, paid influencers and even native advertising. Paid media is a great way to get an immediate return on investment. It helps you generate leads quickly, and it directs your audience back to your owned media where you can nurture them and—eventually—make a sale. It’s also relatively easy to measure the effectiveness of your paid media using analytics. • Owned Media With owned media, you own everything: your website, your blog, and your social media accounts. You are not paying for this content to show up in front of your audience, but you have control over all of it. Owned media is a smart investment in any marketing strategy because it has staying power. You can start a website and blog on day one of a business and maintain it all the way until the end.
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  • 43. Earned Media The term earned media is cut and dry: you earn the marketing that shows up in front of people. This can be anything from a press release about your business to someone talking about your products on social media. The big benefit of earned media as part of your marketing strategy is it’s like free advertising. Your business shows up in front of your audience at no cost to you. ONLINE MARKETING COMMUNICATION OPTION Website:- A website (also written as web site) is a collection of web pages and related content that is identified by a common domain name and published on at least one web server. Notable examples are wikipedia.org, google.com, and amazon.com. All publicly accessible websites collectively constitute the World Wide Web. Search Ads:- Whenever you look for a product or service online, Google (or any other search-engine provider) displays a results page consisting of both organic and sponsored results. The ads can be displayed in many ways, but search engines typically indicate which results are sponsored and which are not.
  • 44. Display Ads:- A display ad, also known as a banner ad, is a form of online paid advertising that is typically a designed image or a photo and copy. ... Display ads function differently than text ads because they aren't found in search results. The first display ad graced the internet on October 27, 1994, on HotWired, and it looked like this: Email:- Email marketing is the act of sending a commercial message, typically to a group of people, using email. In its broadest sense, every email sent to a potential or current customer could be considered email marketing. It involves using email to send advertisements, request business, or solicit sales or donations.
  • 45. Social Media:- Social media marketing is the use of social media platforms to connect with your audience to build your brand, increase sales, and drive website traffic. This involves publishing great content on your social media profiles, listening to and engaging your followers, analyzing your results, and running social media advertisements. The major social media platforms (at the moment) are Facebook, Instagram, Twitter, LinkedIn, Pinterest, YouTube, and Snapchat. • Online Communities and Forums:- The idea of an online community forum has garnered a fair amount of attention over the past few years, especially since providing top-notch customer experience (CX) has become a priority for many organizations. In fact, increasing customer engagement through improved CX is one of the top business priorities of 2019, and an online community is one of the most effective ways to do this. • Blogs:- it regularly updated online journals or diaries, have become an important outlet for word of mouth. One obvious appeal of blogs is that they briing together people with common interest. • Social Networks:- It become an important force in both business to consumer and business to business marketing. Major once include Facebook, one of the worlds biggest Linkedin which focus on career minded professionals and Twitter also.
  • 46. Direct Marketing Direct marketing is a promotional method that involves presenting information about your company, product, or service to your target customer without the use of an advertising middleman. It is a targeted form of marketing that presents information of potential interest to a consumer that has been determined to be a likely buyer. Top 10 best selling companies in Direct marketing:- https://www.topdirectsellingbusiness.com/top-10-direct-selling-company-in-india/ Forms of Direct Marketing Brochures, Catalogs, Fliers, Newsletters, Postcards, Coupons, Emails, Targeted online display ads, Phone calls, Text messages.
  • 47. DataBase Marketing Database marketing is the art and science of aggregating and mining consumer data based on their demographic, psychographic and behavioral traits. Its purpose is to help organizations reach their target audiences more efficiently while optimizing the ROI of their marketing investments. A great example of a brand that has mastered database marketing is Amazon. While some could argue that Amazon does not engage in heavy content marketing (for even its B2B products), it’s apparent that Amazon leverages and mines customer data very effectively. Amazon closely tracks what customers have viewed, purchased or placed on wish lists, and then cross references this data with what other users have purchased to “cross-sell” and “up-sell” its shoppers (e.g. “You might like this too”). Database marketers often refer to this strategic algorithm as a “recommendations engine”.
  • 48. Personal Selling Relationship marketing is a fact of customer relationship management (CRM) that focuses on customer loyalty and long-term customer engagement rather than shorter-term goals like customer acquisition and individual sales. The goal of relationship marketing (or customer relationship marketing) is to create strong, even emotional, customer connections to a brand that can lead to ongoing business, free word-of-mouth promotion and information from customers that can generate leads. Personal Selling Process: The process of personal selling includes prospecting and evaluating, preparing, approach and presentation, overcoming objections, closing the sale and a follow up service. 1. Prospecting and evaluating: The effort to develop a list of potential customers is known as prospecting. Sales people can find potential buyers, names in company records, customer information requests from advertisements, telephone and trade association directories, current and previous customers, friends, and newspapers. Prospective buyers predetermined, by evaluating (1) their potential interest in the sales person’s products and (2) their purchase power.
  • 49. 2. Preparing: Before approaching the potential buyer, the salesperson should know as much as possible about the person or company. 3. Approach and presentation: During the approach, which constitutes the actual beginning of the communication process, the sales person explains to the potential customer the reason for the sales, possibly mentions how the potential buyer’s name was obtained, and gives a preliminary explanation of what he or she is offering. The sales presentation is a detailed effort to bring the buyer’s needs together with the product or service the sales person represents. 4. Overcoming objections: The primary value of personal selling lies in the sales person’s ability to receive and deal with potential customers’ objections to purchasing the product. In a sales presentation many objections can be dealt with immediately. These may take more time, but still may be overcome. 5. Closing the sale: Many sales people lose sales simply because they never asked the buyer to buy. At several times in a presentation the sales person may to gauge how near the buyer is to closing. 6. Follow up: To maintain customer satisfaction, the sales person should follow up after a sale to be certain that the product is delivered properly and the customer is satisfied with the result.
  • 50. Rural Marketing Rural marketing is a compilation of the developed product, reasonable price, appropriate placing and right awareness. The marketing rule sales that, the right product, at the right price, at the right place, at the right time, through the right medium should reach the right customer. An organization follows rural marketing for the following reasons: a. Rural Population – Consists of more than 720 million people and forms a huge market for organizations. b. Rural Economy – Contributes significantly in the country’s GDP. Rural India has a large number of households who are aware about the branded products and willing to buy them. c. Relation between Rural and Urban Economy – Refers to economic connectivity between rural and urban areas. https://studiousguy.com/examples-of-rural-marketing/
  • 51. The 4A's are Affordability, Availability,Awareness, and Acceptability. 1. Affordability: The designing of the product should match the needs of the customer. The Customer should not think that they cannot buy it, that means it should be in their buying capacity. The income earned in rural markets is from different ways , so by keeping this in mind most of the companies should design the product in such a way that it reaches the customer. 2. Availability: The greatest problem in the rural market is to reach the customer or retailer. Its the logistics way to make the product available there . Once it reaches the retailers shelf then there will not be any problem. This is because there will be lesser number of brands available at market and the Influence or image/ Relationship of the retailer makes the difference. The companies should work out to reach the customer in time. Most of the products are promoted well but by the time it reaches the customer it gets late. So reaching the market should be considered.
  • 52. 3. Awareness: The Awareness program should be in such a manner that it should reach the customers mindset. The main way of reaching the customer is through the commercials on media like TV, Radio and Outdoor . The awareness programs should be conducted at the area ( Junction) where the village heads meet or in other way the meeting place at the villages. The awareness program should be in such a way that it should contain some message to the audience, there should be some concern for them and their place. The promotional activities should be good in the local language. Apart from this there are some things which the company should think of, such as Colour of the product, Packaging , logo and slogan so on. This should be in such a way that by looking at the product only the customer should feel that they can go for that , and they should be in such a position to differentiate the product form the copy cat one. 4. Acceptability: The most important theme of Marketing Mix is Acceptability. The customer should think that they can buy the product by putting an extra money on that. They should feel that the product is designed as per their needs and it should deliver a great solution to the customer. They should think that the product gives some value to them , and it should serve the purpose what they are planning to buy for. The customer should feel the comfort with the product and there should not be any hesitation to go for it.
  • 53. Ways of Rural Marketing The rural marketing involves two primary elements; one is rural and second is urban. The exchange of goods between these two markets can be understood in the following ways:Ways of Rural Marketing Urban to Rural: The products manufactured in cities such as the FMCG products, fertilizers, consumer durables, etc. are made available in the remote areas. This is termed as urban to rural marketing. Rural to Urban: The goods manufactured or grown in rural areas or villages, including crops and other agricultural products, handicraft items, pottery products, etc. are sold to the consumers of urban areas. It is known as rural to urban marketing. Rural to Rural: When a rural manufacturer sells products like cattle, pottery, carts, etc. to other villages, it is called as rural to rural marketing.
  • 54. Features of a Rural Market 1. Low Standard of Living: The village lifestyle is quite conservative and straightforward. People here spend more on necessities instead of luxury goods, making it very different from that of city life. 2. Large and Scattered Market: A significant percentage of the population resides in villages. There are numerous villages located throughout the country, with a small group of people living in each of them. Thus, the rural market is spread over a vast area. 3. Traditional Outlook: The village population tend to stick to their traditions and are resistant to change due to low literacy level. However, the rural youth is initiating development though at a slower pace. 4. Agriculture is Major Source of Income: The village population is highly dependant upon the agricultural income for their living. In the case of crop failure, the rural people have low disposable income. 5. Development of Infrastructure: The rural areas lack proper infrastructure facilities such as appropriate transportation, cemented roads, communication network, banks, warehouses, etc.
  • 55. 6. Diverse Socio-Economic Background: Since the fertility of the land is uncertain and covers a large geographical rural area, there is a social- economic diversity in the people of these areas. 7. Seasonal Demand: The seasons and stages of agriculture, influence the demand for goods and services in rural markets. Hence they have two major seasons, namely kharif and ragi. 8. Prevalence of Spurious Brands: In rural areas, people are more price- conscious and illiterate. Due to this, several fake brands penetrate these markets with cheap products that look similar to the original ones. Low Literacy Level: The percentage of illiteracy is quite high in remote areas. Thus, disconnecting them with the print media and therefore, the marketers use another medium such as radio, roadshows and nukkad dramas for rural marketing.