UNIT 5

PROMOTION STRATEGY
PROMOTION MIX

■ PROMOTION MIX is one of the 4P’s of the marketing mix. It consists of public
relations, advertising, sales promotion, and personal selling. Promotional mix
describes a blend of promotional variables chosen by marketers to help a firm reach
its goals. There is a continuous challenge for the marketers to find the right mix of
the different elements within the promotional mix to allocate budgets in an optimum
manner to achieve best marketing results.
■ Promotion mix refers to the blend of several promotional tools used by the business
to develop, maintain and increase the demand for goods and services.
FACTORS INFLUENCING PROMOTION
MIX
1. TYPE OF PRODUCT
■ CONSUMER GOODS: Advertising is more useful because they are low-cost and
bought frequently.
■ INDUSTRIAL GOODS(like machines, raw materials): Personal selling works best, as
buyers need detailed information.
■ SEASONAL PRODUCTS: Heavy advertising and sales promotion during peak season.
2. NATURE OF MARKET
■ If the market is large and spread out, advertising and online promotions are needed.
■ If the market is small and concentrated, personal selling is effective.
3. STAGES IN PRODUCT LIFE CYCLE
■ INTRODUCTION STAGE: Heavy advertising + sales promotion to create awareness.
■ GROWTH STAGE: Advertising + brand loyalty campaigns.
■ MATURITY STAGE: Competitive advertising + discounts.
■ DECLINE STAGE: Minimal promotion or reminder ads.
4. COST AND AVAILABILITY OF BUDGET
■ A company with a large budget can use TV ads, celebrity endorsements,
sponsorships.
■ Small firms rely on cheaper methods like local posters, radio, or social media.
5. TYPES OF PURCHASE DECISION:
■ ROUTINE/LOW INVOLVEMENT PRODUCTS: Advertising is enough.
■ HIGH INVOLVEMENT/RISKY PURCHASES: Personal selling is necessary.
6. TARGET MARKET CHARACTERISTICS & CONSUMER READINESS:
■ Companies analyze who their customers are(age, lifestyle, income)
■ Some consumers are early adopters, while others wait.
7. CONSUMERS MEDIA PREFERENCES:
■ Different groups prefer different media.
8. REGULATIONS AND COMPETITORS:
■ Laws and rules affect promotions.
9. AVAILABILITY OF NEDIA:
■ Some promotional channels are limited or costly.
10. PUSH AND PULL STARTEGY:
■ PUSH STRATEGY: Manufacturer pushes the product through wholesalers and
retailers-focus on personal selling, trade promotions.
■ PULL STARTEGY: Manufacturer promotes directly to consumers – demand is created,
and retailers stock it.
NATURE AND IMPORTANCE OF PROMOTION
ADVERTISING
MEANING:
Advertising is that activity by which visual or oral messages are
addressed to the general public. Its purpose is to inform or influence
them in order to increase the sales of the advertiser. It is done with a
view to selling the goods or services, offered by the advertiser.
Definition:
American Marketing Association defines advertising as any paid
form of non personal presentation and promotion of ideas, goods, or
services by an identified sponsor”.
TYPES OF ADVERTISING
1. BRAND ADVERTISING: These advertisements are done to build brands and develop a
unique brand identity for the firm. This is the most popular form of advertising and uses all
possible media including TV.
Example: TV Ads for Pepsi, Coca-Cola, Nike, etc., where the focus is on making the brand
famous rather than selling a specific product immediately.
2. NATIONAL ADVERTISING: These advertisements are uniform across the nation and
are released through national media covering the entire country.
Example: National campaigns like Amul – The Taste of India ads shown across India.
Samsung launches ads on national TV channels across India for their smartphones.
3. LOCAL ADVERTISING:
These are carried out in local and vernacular media (like local language newspapers,
radio, etc.) to promote products in a specific region. Example: A local jewellery store
advertising in a city newspaper like "Times of Madurai". A restaurant advertising in a
regional radio station.
4. Retail Advertising:
These advertisements are made to promote retail outlets and dealer points.
Example: Reliance Trends advertising about a special sale at their retail shops. Big Bazaar
advertising about discounts in their stores.
5. Political Advertising:
These are done for political parties, politicians, and individual candidates during elections.
Example: Advertisements of BJP, Congress, or Aam Aadmi Party asking people to vote for
them during election season.
6. Social Advertising:
These advertisements are made for social causes like AIDS awareness, child labour, human trafficking, etc.
Example: Government ads about polio drops – “Do Boond Zindagi Ki”.
NGO campaigns against child labour or women trafficking.
7. Directory Advertising:
These are advertisements done in directories (like Yellow Pages) and are followed by people while
collecting a telephone number or more information about a firm.
Example: A plumber's service advertised in the local Yellow Pages.
Doctor clinics advertised in telephone directories.
8. Business-to-Business (B2B) Advertising
These kinds of advertisements are directed towards retailers, wholesalers, and distributors in business and
organizational markets.
Example: A wholesale supplier advertising new stock to retail shops.
■ Packaging material suppliers advertising to businesses like Amazon or Flipkart sellers.
9. Institutional Advertising:
Institutions like colleges, universities, missionary organizations, and large corporations
bring out these ads to create positive goodwill. To improve public image and help in
overall brand building.
10. In-Film Advertising:
These are advertisements inside films where brands are placed and actors use the products
during the movie.
11. Electronic Advertising:
These are forms of advertising that use electronic media like TV, radio, video, audio-
cassettes, etc.
12. Interactive Advertising:
These are typical internet-based advertisements, delivered to individual consumers who
have access to the World Wide Web.
OBJECTIVES
STEPS IN EFFECTIVE ADVERTISING
1. MISSION (OBJECTIVE
OF ADVERTISING)
■ Mission means what is the aim of advertisement.
■ Advertising objectives can be:
a) To inform: Inform people about a new product,
suggesting new users for a product, Informing the
market for a price change, Correcting false impressions,
Reducing buyers' fears, Building a company image
b) To persuade: Convince potential customers to buy.
Encourage existing customers to repeat purchase.
c) To remind: Remind customers to continue buying the
product. Very effective in the maturity stage of the
product life cycle.
2. MONEY (ADVERTISING
BUDGET)
■ Money refers to how much will be spent on advertising.
■ Budget allocation depends on :
a. Stages in product life cycle - new products need more
spending.
b. Market share – Smaller brands need to spend more to
compete.
c. Number of competitors in the market.
d. Frequency of advertisement
e. Availability of substitutes in the market.
3. MESSAGE ■ Message means what should be said and how it
should be said.

(AD COPY) ■ Includes: headline, slogan, logo, visuals, body text.

Process:
1. Message generation: Collect ideas from
customers, experts, competitors.
2. Message evaluation & selection: Select the most
effective, clear, and believable message.
3. Message execution: Present the message with
proper tone, style, words and format.
4. MEDIA ( CHANNEL OF COMMUNICATION)

■ MEDIA means the medium through which the message is delivered.

Options:
a) Print media – newspaper
b) Broadcast – TV, radio
c) Outdoor – Posters, Banners, Billboards
d) Digital – Social media, Youtube, websites
5. MEASUREMENT (EVALUATION OF
EFFECTIVENESS)
■ Measurement means evaluating how effective the ad has been.
Purpose:
a) Prevents wastage of money
b) Helps correct mistakes in future ads.
c) Measures impact on sales, customer recall, brand image, buying behaviour.
 ARGUMENTS FOR AND
AGAINST ADVERTISING
■ ADVANTAGES OF ADVERTISING

1. HELPS IN EXPANDING THE MARKET:

Advertising allows companies to reach new customers in different
areas.

2. REDUCTION IN COST:
Advertisement reduces selling costs by directly connecting producers
with consumers, saving middleman effort.

3. INCREASES SALES AND PROFITS

By convincing people to buy, advertising boosts sales and profits.

4. BOON FOR A NEW PRODUCT:
Helps launch new products and inform customers.
5. SUPPORTS SALESMAN AND REDUCES BURDEN:
Ads make the customer aware before meeting a salesman.
6. AWARENESS TO CONSUMERS:
Ads inform about product use, price, and offers.
7. CREATES BRAND LOYALTY
Ads make customers stick to one brand.
8. CREATES EMPLOYMENT:
Ad industry employs models, designers, printers, photographers, etc.
9. FACILITATES BETTER STANDARD OF LIVING:
Ads encourage people to buy modern goods.
10. ENCOURAGES HEALTHY COMPETITION:
Companies compete to improve products due to advertising.
11. IMPROVES REPUTATION OF BUSINESS:
Frequent and quality advertising builds trust.
 Ads sometimes exaggerate or make false
1. MISLEADS PEOPLE: claims.

2. MAKES PRODUCT COSTLY: Ads costs are added to product prices.

Encourages harmful products or wrong

3. BAD IMPACT ON SOCIETY: values.

DISADVANTAGES 4. MORE EXPOSURE TO WOMEN: Some ads show women in vulgar or

OF ADVERTISING
inappropriate ways just to attract attention.

5. ENCOURAGEMENT TO MONOPOLY: Big companies with huge ad budgets

dominate, killing small businesses.

6. ADVERTISEMENTS POSSESS NO If the product is poor, ads can’t save it for

GUARANTEE: long.

Too much money is spent on ads instead of

7. WASTE OF RESOURCES: development.
 ADVERTISEMENT COPY
Ad copy is the written or spoken matter in an advertisement
expressed in words or sentences and figures designed to convey
the desired message to the target consumers. Copy is the soul of
an advertisement.
■ Components:
• Headline
• Sub headline
• Body text
• Illustration/ logo/ brand name
• Slogan or tagline
 A good advertisement copy has the
following attributes.
• IT IS BRIEF: short and to the point. Readers do not like
long ads.
ESSENTIALS • IT IS CLEAR: Easily understood, unambiguous, no
confusion. Should be self explaining.
OF • IT IS APT: Matches the needs and desires of
customers. Shows strong reason why the product is
EFFECTIVE useful.
• IT IS PERSONAL: Speaks directly to the customers.
COPY Uses “YOU” appeal.
• IT IS HONEST: Must be believable and not misleading.
Customers trust honest advertising.
• IT IS CONFORMING: Must follow laws, social values,
and ethics. Should not hurt sentiments or promote
harmful things illegally.
SALES PROMOTION

DEFINITION:
“Those marketing activities other than personal selling, advertising and publicity that
stimulate consumer purchasing and dealer effectiveness such as display, shows and
exhibitions, demonstrations and various non-recurrent selling effort in the ordinary
routine”. --- AMERICAN MARKETING ASSOCIATION
MEANING:
Sales promotion is a short term marketing techniques to stimulate demand, encourage
consumer purchasing, and support dealer effectiveness. It includes coupons, discounts,
samples, contests, gifts, exhibitions, trade allowance, etc.
OBJECTIVES
1. Increase in Sales Volume

■ The primary goal of sales promotion is to boost sales quickly.

■ Offers like discounts, price reductions, and special deals attract customers to buy immediately.
Example: “Buy 1 Get 1 Free” or “20% Discount for Limited Time” —
these encourage more purchases in a short period.

2. Help Launch a New Product

■ When a company introduces a new product, it may not be able to spend much on advertising.
■ Sales promotions such as free samples, trial packs, or introductory discounts help
attract customers to try the new product.
Example: When a new shampoo brand launches small ₹1 sachets to encourage trials.
3. Encourage Repeat Purchase:
• Promotions help keep existing customers loyal and encourage them to buy again.
• Example: “Buy two, get one free”, “25% extra at the same price”, or membership
rewards like silver, gold, platinum cards.
• This helps in maintaining customer relationships and consistent sales.

4. To Block Competitor’s Moves:

• When a competitor launches an aggressive promotion or new product, a company
can counter it with its own offers.
• This prevents customers from shifting to competing brands.
• Example: If Pepsi gives a discount, Coca-Cola might launch a similar scheme to retain
• customers.

5. Trade Promotions to Improve Relationship with Dealers:

Sales promotions are not only for customers but also for dealers and retailers.
Companies offer bonuses, gifts, or contests to dealers who sell more products.
This improves cooperation and strengthens the relationship between the company and dealers.
STEPS IN SALES PROMOTION
1. Setting Objectives
The first step is to define what the company wants to achieve through sales promotion.
Examples:
Increase short-term sales, Clear old stock, Introduce a new product,
Attract new customers or reward existing ones

2. Selecting the Target Audience

Identify who will be the focus of the promotion — customers, dealers, or salespersons.
Examples:
Free samples for customers, Discounts for wholesalers or retailers, Bonus for salesmen

3. Deciding the Promotion Tools

Choose the right sales promotion techniques suitable for the target audience.
Examples:
For consumers: Coupons, discounts, contests, free samples
For dealers: Trade allowance, bonus, gifts
For salesmen: Performance-based incentives
4. Budgeting
■ Decide how much money to spend on the promotion.
■ The budget should cover:
Cost of materials (samples, gifts)
Advertising and distribution cost
Monitoring and evaluation expenses

5. Planning the Programme

■ Design the actual promotion plan — decide on the duration, message, medium, and
timing.
Example: A “Buy 1 Get 1 Free” offer during Diwali season for 15 days.

6. Implementation
■ Put the plan into action effectively.
Ensure the materials reach the market on time and the sales staff are informed and motivated.

7. Evaluation
■ After the promotion ends, measure its success.
Examples:
Compare sales before and after promotion
Customer feedback
Dealer satisfaction
SALES PROMOTION
TOOLS
Sales promotion tools are short-term incentives used to boost
sales by encouraging dealers,
salespeople, or consumers to buy or sell products.

There are three main types of promotions:

1. Dealer Promotions
2. Consumer Promotions
3. Sales Force Promotions
A. DEALER PROMOTIONS
Dealers are the link between the manufacturer and consumers (includes wholesalers, retailers, and
distributors).
Manufacturers give incentives to dealers so that they stock, promote, and sell more of their products.
1. Dealer Loaders
These are premiums or gifts given to dealers based on the quantity of purchases they make.
It motivates them to buy more stock and push sales.
Example:
Hindustan Unilever gives a free refrigerator to dealers who purchase a large quantity of soaps/shampoos.
A company might offer a free display stand to dealers ordering products above a certain limit.
Reasons for Dealer Loading:
■ To avoid shortage of products in stores
■ To increase communication and link with dealers
■ To counteract competition
■ To increase sales in specific areas

Types of Dealer Loader Schemes:

1. Merchandise Deals – Extra goods offered to dealers
Example: Buy 3 cartons, get 1 free (Tata, HUL, Godrej)
2. Price Deals – Special discounts given on bulk purchase
Example: Regular discount ₹5 per case → increased to ₹6 for large purchase
3. Gift Novelties – Attractive gifts for dealers
Example: Radio sets, clocks, lamps, steel utensils given to dealers
2. Dealer Coupons
Coupons are given to dealers as an incentive for stocking and promoting a product.
Dealers can exchange coupons for merchandise or discounts later.
Example:
A company gives 10 coupons for every 100 products sold.
Dealers can exchange coupons for rewards like wall clocks, gift items, etc.

3. Point of Purchase Promotion

This includes promotional activities done at the shop level to attract buyers.
Two Techniques:
1. Dealer Stock Display Contests – Dealers compete for the best product display.
Example: Best decorated or most attractive store display wins a prize.
2. Dealer Sales Contests – Rewards to dealers who sell the most.
Example: Top 3 retailers selling the most soft drinks win a trip or cash prize.
B. CONSUMER PROMOTIONS
These are incentives given directly to consumers to encourage immediate purchases.
There are two main types:
1. Direct Consumer Offers. 2. Conditional Consumer Offers

I. Direct Consumer Offers

These are offers given right at the time of purchase.
Main Types:
1. Off-the-Pack Premiums: Premium (gift) given separately or along with the pack.
Example: Free eraser with Apsara pencils, bucket with detergent powder.
2. Banded Premium Offers: Two products sold together at a lower combined price.
Example: Buy toothpaste and get a toothbrush banded together.
3. In-Pack Offers: Gift item placed inside the product pack.
Example: Toy inside a chocolate box, spoon inside a tin of baby food.
4. Container Premium Offers: When the container itself is reusable or attractive.
Example: Coffee jars, biscuit tins, or Surf detergent boxes reused at home.
5. Price Deals: Temporary price reductions to attract customers.
Example: ₹10 off on Dove shampoo for a limited period.
6. Quantity Deals: Extra quantity given at the same price.
Example: Buy 500g pack, get 50g extra free.
II. Conditional Consumer Offers
Consumers get a gift or discount only after completing certain actions.

Types:

1. Coupon Premium Plan

Consumers collect coupons from packs and exchange for gifts.
Example: Collect 10 bottle caps and get a free glass.
2. Self-Liquidating Offers (SLO)
Consumers buy a product at a reduced price after collecting proof of purchase.
Example: Send 5 wrappers and ₹15 to get a branded lunch box.
3. Referral Premium Plans
Consumers refer friends/family to buy the product and get rewards.
Example: Refer a friend and win a diary or free gift.
4. Consumer Contests
Competitions for consumers to participate in and win prizes.
Example: “Suggest a new tagline for Pepsi” contest or “Scratch & Win” offers.
C. SALES-FORCE PROMOTIONS

These are incentives given to the salesmen of the company to motivate them.

Types:

1. Bonus to Sales Force

Extra payment to salespeople who exceed their sales targets.
Example: If a salesman achieves 120% of target, he gets ₹5,000 bonus.

2. Sales Contests
Competitions among salesmen for best performance.
Example: Top salesperson of the month wins a holiday package.

3. Sales Meetings, Conventions, and Conferences

Organised to educate, motivate, and reward sales teams.
Example: Annual sales meet in Goa to train and inspire sales staff.
DIRECT SELLING (PERSONAL SELLING)
STEPS IN PERSONAL SELLING
(PROCESS OF PERSONAL SELLING)

PROSPECTING PRE-APPROACH APPROACH PRESENTATION OVERCOMING CLOSING THE

AND OBJECTIONS SALES
DEMONSTRATION
PRE APPROACH

■ This step involves collecting detailed information about the prospective customer
before meeting him.
■ The salesman gathers facts about the prospect’s needs, preferences, financial
position, habits, and buying capacity.
■ It helps in planning the sales talk effectively and avoiding mistakes during the
meeting.
■ Proper pre-approach builds confidence in the salesman and increases the chances
of success.
APPROACH

■ Approach means meeting the prospect personally and making a face to face
contact.
■ It is the stage where the salesman tries to create a good first impression.
■ A successful approach helps to gain the confidence and attention of the prospect.
■ The salesman must show courtesy, courage, and confidence to make the meeting
effective.
Presentation and demonstartion

■ In this step, the salesman presents and demonstrates the product to the customer.
■ He explains the features, quality, utility, and performance of the product.
■ Effective presentation creates interest and convinces the prospect about the
products value.
■ Demonstration provides proof and helps in reducing doubts or hesitation in the
customer’s mind.
Overcoming objections

■ Prospects often raise objections or doubts regarding the product or price.

■ The salesman should listen carefully to these objections and understand their
reasons.
■ He should give clear explanations, proofs, or demonstrations to remove doubts.
■ Successful handling of objections helps to build trust and confidence in the
customer.
Closing the sale

■ This is the final and most important step in the selling process.
■ Closing means obtaining the prospect’s agreement to buy or placing an order.
■ The salesman must persuade the prospect to act immediately and not postpone the
decision.
■ It converts the customer’s desire into an actual purchase and completes the sale.
PUBLIC RELATION (PUBLICITY)
3 S MODEL OF CONTENT MARKETING

■ The 3S Model of content marketing refers to making content Searchable, Shareable,

and Snackable to ensure it's found by the target audience and gains traction
online. A truly successful piece of content needs to be easily discoverable through
search engines, designed for easy sharing on social platforms, and brief enough for
quick consumption, or "snacking," on various devices
•Searchable:
Content is created with an awareness of how audiences search for information online.
This involves using relevant keywords and providing clear, high-quality information that
ranks well in search engines.
•Shareable:
The content is designed to be easily and effectively shared across social media platforms,
email, and other channels.
This encourages audience engagement and expands reach.
•Snackable:
Content is broken down into small, digestible pieces that are easy for users to consume quickly.
This can include short videos, infographics, concise blog posts, or quick tips that provide
value without requiring a long commitment of time