MODULE – 4

PROMOTION DECISIONS
Q1. EXPLAIN ABOUT PROMOTION AND ITS TYPES IN MARKETING?

Meaning of Promotion

Promotion is a process of marketing communication which attempts to inform,

persuade and remind its target markets, through personal and impersonal means,
about company and its brand. It acts as a powerful tool and creates a link between
marketer (company) and consumer. Marketing communication is necessary as
superb product, best package and fair price cannot ensure sale of product unless
people are made aware of its existence.

Objectives of Promotion

Promotion is an important marketing strategy. Promotion aims at communicating

marketing information to consumers and sellers. It persuades and convinces the
buyer to influence his behavior and prompt him to take the desired action. The key
objectives of promotion can be summarized as to inform, persuade and remind:
(I) To inform: Company makes use of promotional tools to inform target market
about:
(a) New product, brand, new pack size or new feature of product
(b) Reduction in price, new offer like buy one get one or more quantity at same
price
(c) Opening of new outlet in the region like Reliance, Big Bazar
(d) Working of product though demonstration
(e) New packaging of the product
(f) New or multiple uses of the product
(g) Introduction of new technologies in the market
(h) Genuineness of product or company when some wrong or negative perceptions
have emerged as happened in case of Maggi Noodles
(I) Competitive advantage of the product or service
(ii) To persuade: Promotional strategies aim at influencing buyer’s behavior to
take a desired action. It focuses on:
(a) Insisting consumers to buy now as happens in case of limited stock offers
(b) Initiating brand switching in the favor of company i.e. capturing customers of
rival firms
(c) Stimulating demand and creating brand preference
 (d) Insisting consumer to stay loyal to brand i.e. creating brand loyalty
(iii) To remind: There is stiff competition in consumer goods market and
companies have to consistently remind the customer about brand, product and its
competitive advantage. The companies aim to:
(a) Remind occasion of use as Cadbury chocolates advertisement reminds
customer about its use on Raksha Bandhan
(b) Remind brand to maintain brand recall
(c) Remind need to buy to fulfil near future demand. This is particularly true in
case of seasonal goods like woolen clothes, water coolers.

4. Promotion Mix

Promotion mix consists of a group of communication tools which marketing

executives use to communicate with their target audience. The marketer tries to
create a most favorable blend of all promotion elements to influence buyer’s
behavior and his process of decision making. Sales can be promoted through an
effective promotion mix.

Advertising, sales promotion, personal selling, public relations are important

elements of promotion mix. Different elements of promotion-mix are used by the
companies depending on the marketing objectives and certain other factors.

Advertising: Advertising is paid form of communication of goods, services or ideas

by an identified sponsor which is directed at mass audience. The sponsor/ advertiser
(seller) pays for time or space used in media in which his advertisement appears.
Magazines, newspapers, radio, television, posters, hoardings, direct mail are
different media used by advertisers to influence and induce the viewers, readers or
listeners to buy the advertised products.

Sales Promotion: Sales promotion refers to short term special selling efforts to
accelerate sales. It is a promotional activity which provides monetary and non-
monetary incentives to spark an immediate reaction from target consumers
(consumer sales promotion) and dealers or firm’s salesperson (Trade promotions).
Consumer Sales promotion pulls a product or service by stimulating demand and
trade promotions push a product or service by arousing enthusiasm among channel
members to sell more of a particular brand. Sales promotion
influences purchase behavior and provides immediate incentive to buy. Sales
promotion tools provide marvelous results when supported by advertising and
personal selling.
 Personal Selling: Personal selling refers to direct personal contact between a sales
representative and one or more prospective customers to influence the customer in a
purchase situation. It involves securing information about buyer’s unsatisfied needs
and wants by the salesman and supplying information about goods and services to
the prospective buyer. Sales talk and product demonstrations play an important role
in personal selling.

Public relations and Publicity: Public relations and publicity aim at protecting and
promoting company’s image through number of programmes and activities.
Publicity and public relations increase effectiveness of promotion as consumers are
now more interested in evaluating company brand or product on the basis of what is
written about it in the media.

Publicity: It is non personal communications through media such as interviews,

press conference, photographs, corporate film, press release. Media space used for
publicity is not bought by the sponsor. American Marketing Association has defined
Publicity as “non-personal stimulation of demand for a product, service, or business
unit by planting commercially significant news about it in a published medium or
obtaining favorable presentation of it on radio, television, or stage that is not paid
for by the sponsor”1.

Public Relations: It includes certain activities like event sponsorship, cause related
marketing programmes and consumer training programmes.

 Event sponsorship: Companies usually sponsor those events which are sufficiently
newsworthy to attain wide coverage. They can become part of well-known events
like film award functions, cricket match or they can create an event exclusively for
the company or brand like Bournvita Quiz contest. Those events create stronger ties
with brand.
 Consumer education and training programmes: Companies organize seminars and
training programme to educate customers and to create brand preference. For
example, LG run Microwave cooking classes to educate customer about the use
of microwave oven.
 Social Cause related marketing: Under corporate social responsibility campaign,
companies usually support social cause programmes and donate large funds for these
programmes to create a favourable image in the mind of target audience.

Conclusion: Each element of promotion mix differs in its ability to influence

buyer’s behaviour. Hence, it is important to analyse the utility as well as limitation
of each element before using it. Moreover, other factors like promotion objectives,
funds, cost and nature of product should also be considered while selecting
promotion tool to attain the desired results.

Q2. WRITE ABOUT PROCESS OF MARKETING COMMUNICATION

Marketing communication refers to the process through which a company conveys
information about its products, services, or brand to its target audience to influence
purchasing behavior.

Core Elements of the Marketing Communication Process

1. Sender (Source)
The company or brand (e.g., a business launching a new product).
2. Encoding
Converting ideas into symbols — advertisements, slogans, visuals,
packaging.
3. Message
The actual information conveyed (product benefits, price offers, brand
values).
4. Channel (Medium)
TV, social media, print, email, sales promotion, personal selling.
5. Receiver (Target Audience)
Customers, prospects, distributors, or stakeholders.
6. Decoding
How the audience interprets the message.
 7. Feedback
Customer response — purchase, inquiry, reviews, engagement.
8. Noise
Distortion or distraction — competitor ads, misunderstanding, clutter.

STEP-BY-STEP PROCESS OF MARKETING COMMUNICATION

Identify Target Audience

↓
Set Communication Objectives
↓
Design the Message
↓
Select Communication Channels
↓
Set Budget
↓
Decide Promotion Mix
↓
Transmit Message
↓
Collect Feedback & Evaluate Results

Marketing Communication Process Applied - Case Study: Nike, Inc. – “Just Do It”
Campaign

Nike faced intense competition from brands like Adidas AG and Puma SE.
The company needed a strong marketing communication strategy to:
  Increase brand recall
 Connect emotionally with customers

Strengthen global positioning Marketing Communication Process Applied

Step 1: Identify Target Audience

 Young athletes
 Fitness enthusiasts
 Youth seeking motivation

Step 2: Set Communication Objectives

 Build emotional brand connection

 Encourage action and confidence
 Increase sales and market share

Step 3: Message Design (Encoding)

 Simple, powerful slogan: “Just Do It”

 Emotional storytelling
 Inspirational athlete endorsements

Step 4: Select Channels

 Television commercials
 Social media campaigns
 Print advertisements
 Sports sponsorships
 Influencer marketing

Step 5: Transmission of Message

Nike used famous athletes and storytelling ads to inspire people globally.

Step 6: Feedback

 Increased sales revenue

 High social media engagement
 Strong global brand recognition
 Diagrammatic Representation of the Case

Sender (Nike)
↓
Encoding (Motivational Message + Athlete Endorsements)
↓
Message ("Just Do It")
↓
Channels (TV, Social Media, Print, Sponsorship)
↓
Receiver (Global Youth & Athletes)
↓
Decoding (Motivation, Confidence, Action)
↓
Feedback (Sales Growth, Brand Loyalty)

Barriers (Noise) in This Case

 Competitive advertising clutter

 Cultural differences in global markets
 Misinterpretation of athlete controversies

Nike managed these by maintaining consistent brand messaging.

Results of Effective Marketing Communication

✔ Strong emotional branding

✔ Global market leadership
✔ Increased customer loyalty
✔ Long-term brand equity

This case shows that effective marketing communication:

 Aligns message with target audience psychology

 Uses integrated channels (IMC)
 Focuses on emotional appeal
 Measures feedback for improvement
Q3️. PROMOTION MIX ELEMENTS IN MARKETING
COMMUNICATION

The Promotional Mix is the combination of communication tools used by a

company to inform, persuade, and remind customers about its products or services.

It is a major component of the Marketing Mix (4Ps) and focuses on promotion

strategies.

The Elements of Promotion Mix includes:

1. Advertising – Paid non-personal communication

2. Personal Selling – Direct interaction with customers
3. Sales Promotion – Discounts, coupons, contests
4. Public Relations (PR) – Media relations, corporate image building
5. Direct Marketing – Email, SMS, catalogs
6. Digital Marketing – Social media, influencer marketing

This integrated approach is known as Integrated Marketing Communication

(IMC)
1. Advertising

 Paid, non-personal communication

 Mass media coverage
 Builds brand awareness and brand image
 Example: TV ads, newspaper ads, online ads

Advantages:

 Wide reach
 Brand building
 Controlled message

Disadvantages:

 Expensive
 No immediate feedback

2. Sales Promotion

 Short-term incentives
 Encourages immediate purchase

Examples:

 Discounts
 Coupons
  Buy One Get One (BOGO)
 Free samples

Objective:

✔ Increase short-term sales

✔ Clear inventory

3. Personal Selling

 Face-to-face communication
 Direct interaction with customer

Features:

✔ Immediate feedback
✔ Relationship building
✔ High persuasion power

Example: Insurance agent selling policy

4. Public Relations (PR)

 Builds positive company image

 Maintains goodwill

Examples:

 Press releases
 CSR activities
 Sponsorships

5. Direct Marketing

 Direct communication with specific target customers

Examples:

 Email marketing
 SMS marketing
 Telemarketing
  Catalog marketing

Advantages of Promotion Mix

✔ Increases brand recognition

✔ Enhances sales
✔ Builds customer relationship
✔ Creates competitive advantage

Example:

A company like Coca-Cola:

 Identifies youth as target audience

 Creates emotional advertising message
 Uses TV + Instagram + Sponsorship
 Measures feedback through sales growth & engagement

Similarly, Apple Inc.:

 Uses minimalistic message design

 Focuses on product launch events
 Relies on strong brand positioning

Promotion Mix is a strategic communication tool that integrates various

promotional elements to achieve marketing objectives efficiently. Effective
coordination of all elements ensures strong market positioning and sustainable
competitive advantage.

Q4. HOW TO DETERMINE THE ADVERTISING BUDGET?

Advertising Budget refers to the amount of money allocated for advertising

activities during a specific period.

Determining the right advertising budget is crucial for:

 Achieving communication objectives

 Maintaining competitive position
 Maximizing return on investment (ROI)
Objectives of Advertising Budget

✔ Increase brand awareness

✔ Support product launch
✔ Expand market share
✔ Counter competition
✔ Build brand loyalty

Methods of Determining Advertising Budget

1. Affordable Method (All You Can Afford Method)

 Company spends what it can afford after other expenses.

 Common in small businesses.

Advantages:

Simple
Low financial risk

Disadvantages:

Ignores marketing objectives

Unsystematic approach

2. Percentage of Sales Method

 Budget is fixed as a percentage of past or forecasted sales.

Formula:
Advertising Budget = % × Sales Revenue

Advantages:

Easy to calculate
Stable budgeting

Disadvantages:

Sales determine advertising (reverse logic)

Not suitable for new product launch
3. Competitive Parity Method

 Budget based on competitors’ spending.

 Also called “Share of Voice” method.

Advantages:

Prevents advertising wars

Maintains competitive balance

Disadvantages:

Assumes competitors are correct

Ignores company objectives

4. Objective and Task Method (Most Scientific Method)

Steps:

1. Define advertising objectives

2. Identify tasks needed
3. Estimate cost of tasks
4. Total cost = Advertising budget

Advantages:

Logical and goal-oriented

Most recommended for MBA exams

Disadvantages:

Time-consuming

Requires market research

Factors Affecting Advertising Budget

1. Stage of Product Life Cycle

2. Market Share and Competition intensity
3. Frequency of advertising, Target Market size and Company financial
position.
Q5. WRITE ABOUT COPY DESIGNING AND TESTING?

Introduction

Advertising is a major tool of marketing communication. The effectiveness of an

advertisement largely depends on how well the message is designed and tested.
Copy designing focuses on creating persuasive advertising content, while copy
testing evaluates its effectiveness before and after release.

Copy Designing

Meaning

Copy designing refers to the process of creating the written and visual content
(advertisement copy) in a clear, attractive, and persuasive manner to influence
customers.

It aims to follow the AIDA Model:

 Attention
 Interest
 Desire
 Action

Elements of Advertising Copy

 Headline – Grabs attention

 Sub-headline – Supports headline
 Body Copy – Explains product features & benefits
 Slogan/Tagline – Memorable brand phrase
 Illustrations/Visuals – Enhance appeal
 Call to Action (CTA) – Encourages response

Principles of Good Copy Design

✔ Clarity and simplicity

✔ Persuasiveness
✔ Credibility
✔ Emotional appeal
✔ Consistency with brand image
2️. Copy Testing

Meaning

Copy testing is the process of evaluating the effectiveness of an advertisement

copy in achieving communication objectives.

It helps in minimizing risk and improving advertisement performance.

Types of Copy Testing

A. Pre-Testing (Before Advertisement Release)

 Concept testing
 Consumer jury method
 Focus group discussion
 Readability tests
 A/B testing (digital ads)

B. Post-Testing (After Advertisement Release)

 Recall test
 Recognition test
 Sales analysis
 Attitude measurement
 Inquiry test

Importance of Copy Designing and Testing

✔ Ensures effective communication

✔ Reduces advertising cost wastage
✔ Improves return on investment (ROI)
✔ Enhances brand image
✔ Increases customer response

Conclusion

Copy designing creates persuasive advertising content aligned with marketing

objectives, while copy testing ensures that the advertisement communicates
effectively to the target audience. Together, they play a vital role in successful
advertising strategy and marketing communication.

Q6. EXPLAIN ABOUT MEDIA SELECTION?

Media Selection refers to the process of choosing the most appropriate advertising
media to deliver the marketing message to the target audience effectively and
economically.

It is a crucial part of Media Planning in marketing communication

Objectives of Media Selection

✔ Reach the target audience

✔ Achieve desired frequency
✔ Maximize advertising impact
✔ Optimize budget utilization
✔ Ensure effective message delivery

Types of Advertising Media

Traditional Media

1. Television – Wide reach, strong audio-visual impact

2. Radio – Cost-effective, local targeting
3. Newspapers – Mass coverage, daily reach
4. Magazines – Specific audience targeting
5. Outdoor Media – Hoardings, billboards

Digital Media

1. Social media platforms

2. Search engine marketing
3. Email marketing

Direct Media

 SMS marketing
 Telemarketing
 Direct mail
Factors Affecting Media Selection

1. Target Audience Characteristics

o Age, income, lifestyle, location
2. Nature of Product
o Consumer goods vs Industrial goods
3. Advertising Budget
4. Type of Message
o Informative or persuasive
5. Competitor Strategy
6. Coverage & Reach
7. Media Availability

Media selection is a strategic decision that ensures the right message reaches the
right audience at the right time through the right medium. Effective media planning
enhances advertising effectiveness and supports overall marketing objectives.

Q7. EXPLAIN ABOUT ADVERTISING EFFECTIVENESS?

Meaning of Advertising Effectiveness

Advertising Effectiveness refers to the extent to which an advertisement achieves

its communication and sales objectives.

It measures whether the advertisement:

 Reaches the target audience

 Creates awareness
 Influences attitude
 Generates sales
Objectives of Measuring Advertising Effectiveness

✔ Evaluate performance of advertisement

✔ Improve future advertising decisions
✔ Ensure better return on investment (ROI)
✔ Compare alternative advertising campaigns
✔ Control advertising expenditure

Levels of Advertising Effectiveness

1. Communication Effect

 Awareness
 Knowledge
 Attitude change
 Brand recall

2. Sales Effect

 Increase in sales volume

 Market share growth
 Profit improvement

4️. Models Used to Measure Advertising Effectiveness

1. AIDA Model

 Attention
 Interest
 Desire
 Action

2. DAGMAR Model (Defining Advertising Goals for Measured Advertising

Results)

 Awareness
 Comprehension
 Conviction
 Action

DAGMAR emphasizes setting clear, measurable communication objectives.

Methods of Measuring Advertising Effectiveness
A. Pre-Testing (Before Launch)

 Concept testing
 Consumer jury
 Focus group discussion
 Readability tests

B. Post-Testing (After Launch)

 Recall test
 Recognition test
 Sales analysis
 Attitude survey
 Inquiry test

Quantitative Techniques

✔ Sales comparison (Before & After advertising)

✔ Market share analysis
✔ Return on Advertising Spend (ROAS)
✔ Cost per thousand (CPM)
✔ Click-through rate (CTR) (for digital ads)

Factors Affecting Advertising Effectiveness

1. Message clarity
2. Media selection
3. Frequency of exposure
4. Target audience suitability
5. Competition intensity
6. Economic conditions

Importance of Advertising Effectiveness

✔ Avoids wastage of advertising budget

✔ Helps improve creative strategy
✔ Strengthens brand positioning
✔ Ensures long-term marketing success
Advertising effectiveness is a critical tool for evaluating whether advertising
efforts achieve communication and sales objectives. Through systematic
measurement methods like pre-testing, post-testing, and sales analysis,
organizations can optimize advertising performance and maximize ROI.

Q8. EXPLAIN ABOUT SALES PROMOTION TOOLS?

Meaning of Sales Promotion

Sales Promotion refers to short-term incentives offered to encourage the purchase

or sale of a product or service.

It is one of the key elements of the Promotion Mix and focuses on boosting
immediate sales.

Objectives of Sales Promotion

✔ Increase short-term sales

✔ Attract new customers
✔ Encourage product trial
✔ Clear excess inventory
✔ Support advertising and personal selling

Types of Sales Promotion

Sales promotion tools are broadly classified into:

1. Consumer Promotion Tools

2. Trade Promotion Tools
3. Sales Force Promotion Tools

Consumer Sales Promotion Tools

These are directed at final customers.

Common Tools:

1. Coupons – Offer price reduction

2. Discounts/Rebates – Temporary price reduction
3. Free Samples – Encourage trial
 4. Buy One Get One (BOGO)
5. Premiums (Free Gifts)
6. Contests & Sweepstakes
7. Loyalty Programs
8. Cashback Offers
9. Point-of-Purchase (POP) Displays

Advantages:

✔ Immediate sales boost

✔ Attract price-sensitive customers
✔ Increase brand trial

Trade Sales Promotion Tools

These target intermediaries (wholesalers, retailers).

Common Tools:
 1. Trade Discounts
2. Buying Allowances
3. Dealer Incentives
4. Display Allowances
5. Trade Shows & Exhibitions
6. Push Money (Incentives to dealers’ sales staff)

Objectives:

✔ Encourage stocking
✔ Increase shelf space
✔ Improve dealer support

Sales Force Promotion Tools

Directed at company’s sales staff.

1. Sales contests
2. Bonuses
3. Incentive trips
4. Performance awards

Purpose: Motivate sales representatives to increase performance.

Techniques of Sales Promotion

✔ Price-off strategy
✔ Quantity discount
✔ Bundling
✔ Seasonal offers
✔ Limited-time offers
✔ Exchange offers
✔ Flash sales (Digital marketing)

Advantages of Sales Promotion

✔ Quick results
✔ Increases cash flow
✔ Supports product launch
✔ Encourages brand switching

Limitations of Sales Promotion

 Short-term impact
 May reduce brand image if overused
 Can create price sensitivity

Sales promotion tools and techniques play a vital role in stimulating immediate
demand and supporting overall marketing strategy. However, they must be
carefully planned to avoid long-term brand dilution.