Unit 4

Promotion

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. Promotion can stimulate
demand, capture it from rivals and maintain it.

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 behaviour and
prompt him to take the desired action.

The 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.
Ex: Zomato introducing “Pure Veg Mode” → app notifications + ads
explaining the new feature.
(b) Reduction in price, new offer like buy one get one or more
quantity at same price. Ex: Amazon Great Indian Festival showcasing
limited-time 70% off offers.
(c) Opening of new outlet in the region like Reliance, Big Bazar.
Ex: Starbucks India announcing new store launches via Instagram
stories and influencer collabs.
(d) Working of product though demonstration. Ex: Apple Store staff
showing live iPhone features.
 (e) New packaging of the product. Ex: Coca-Cola personalised
name bottles (“Share a Coke with Anjali”).
(f) New or multiple uses of the product. Ex: Dettol liquid promoted
for multiple uses – handwash, floor cleaner, and laundry disinfectant.
(g) Introduction of new technologies in the market. Ex: Ola Electric
scooters showing battery-swap and app connectivity features.
(h) Genuineness of product or company when some wrong or
negative perceptions have emerged as happened in case of Maggi
Noodles. Maggi relaunch campaign (2016) assuring safety after the
ban, featuring nostalgic ads.
(i) Competitive advantage of the product or service. Ex: Airtel 5G is
faster than Jio comparative ad campaigns.

(ii) To persuade: Promotional strategies aim at influencing buyer’s

behaviour to take a desired action. It focuses on :

(a) Insisting consumers to buy now as happens in case of limited

stock offers. Ex: Myntra End of Reason Sale with “only 24 hours left”
banners.
(b) Initiating brand switching in the favour of company i.e.
capturing customers of rival firms. Ex: Swiggy Instamart luring
Blinkit users with instant cashback coupons.
(c) Stimulating demand and creating brand preference. Ex: Colgate
Visible White persuading consumers to shift from regular toothpaste
by highlighting cosmetic benefits.
(d) Insisting consumer to stay loyal to brand i.e. creating brand
loyalty. Ex: CRED rewarding repeat credit card bill payments with
exclusive gifts → creating habitual 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. Coca-Cola
“Share a Coke with family” during summer holidays.
 (b) Remind brand to maintain brand recall. Ex: Amul topical ads on
billboards constantly reminding its relevance.
(c) Remind need to buy to fulfil near future demand. This is
particularly true in case of seasonal goods like woollen clothes, water
coolers. Ex: Vaseline lotion ads before winter → “Skin ko winter ke
liye tayyar karo.”

Concept

 Promotion is the marketing communication process by which

firms inform, persuade, and remind customers about products,
services, or ideas.
 Kotler defines promotion as the “means by which firms attempt
to inform, persuade, and remind customers directly or indirectly
about the products and brands they sell.”
 It is not limited to advertising; it involves a strategic mix of
tools collectively called the Promotional Mix.
 Promotion operates within Integrated Marketing
Communication (IMC) – ensuring a consistent, unified message
across multiple channels (advertising, PR, sales promotion, etc.).

Nature of Promotion

1. Communication-Oriented: It shares information on features,

benefits, and positioning. Example: LIC’s “Zindagi ke Saath
bhi, Zindagi ke Baad bhi” stresses trust and protection.
2. Persuasive and Competitive: Designed to create preferences and
loyalty amidst competition. Example: Surf Excel’s “Daag Ache
Hain” creates emotional differentiation versus Tide.
3. Continuous and Dynamic: Promotion must adapt to consumer
attention span and media clutter. Example: Amul’s weekly
topical hoardings remain ever-relevant.
4. Customer-Centric: Modern promotion emphasizes two-way
engagement and relationships. Example: Zomato’s quirky app
notifications keep consumers entertained and connected.
5. Multidimensional: Promotion isn’t just for customers; it also
targets dealers, distributors, employees, and other stakeholders.
 Example: HUL gives trade promotions to retailers, while Tata
Steel communicates sustainability to investors.

Importance and Purposes of Promotion

1) Communicating Information

a) Promotion is primarily about conveying information to

consumers about product features, benefits, prices, availability,
and offers.
b) It helps bridge the gap between producers and consumers.
c) Without communication, even the best product or the biggest
price reduction will go unnoticed.

Examples:

1. A refrigerator manufacturer offering an off-season discount

must inform customers about:
a. the percentage of discount,
b. the time period,
c. and the retail outlets where the offer applies.
Otherwise, the promotion fails.
2. Flipkart’s Big Billion Days campaign informs customers of sale
dates, product categories, and bank offers.
3. Jio Cinema informs viewers about exclusive streaming rights of
IPL to attract digital subscribers.
4. LIC advertisements explain new insurance schemes in detail —
premium, benefits, and claim processes.

Purpose: To ensure consumers are well-informed to make purchase

decisions.

2) Promotion as Persuasive Communication

a) Modern markets are highly competitive with multiple brands

offering similar products.
b) Consumers do not have the time or energy to compare all brands
physically; hence, they rely on promotional messages.
 c) Promotion persuades customers to prefer one brand over
another.

Examples:

1. Surf Excel’s “Daag Ache Hain” persuades parents that stains are
not bad if children learn values — thus adding emotional value.
2. Patanjali Ayurveda persuades customers by positioning products
as “natural” and “swadeshi,” differentiating itself from
multinational FMCGs.
3. Zomato and Swiggy run witty ads and notifications persuading
people to order food instead of cooking.
4. E-commerce brands like Amazon persuade buyers through
“lightning deals” and “limited time offers.”
5. Automobile companies (Hyundai, Tata Motors) persuade
customers by highlighting advanced safety features in their ads.

Purpose: To influence choice and tilt customer preference in favor of

the promoted brand.

3) Promotion as a Reminder

a) Even the most loyal customers need constant reminders in

today’s cluttered media environment.
b) Competitors are always trying to grab attention, so reminders
prevent brand-switching.
c) Reminder promotion sustains top-of-mind awareness.

Examples:

1. Colgate runs continuous ads despite market leadership, ensuring

customers don’t switch to Pepsodent or Close-Up.
2. Lux Soap, endorsed by Bollywood celebrities for decades,
continues to remind consumers of its heritage as the “beauty
soap of film stars.”
3. Coca-Cola and Pepsi advertise heavily during summers,
reminding people of refreshment and fun.
4. Nescafé’s reminder ads — “It all starts with Nescafé” — keep
the brand alive among young urban professionals.
 5. ICICI Bank runs reminder ads about its mobile banking app to
encourage digital transactions.

Purpose: To maintain loyalty and reinforce customer memory of the

brand.

4) Creating and Enhancing Brand Image

a) Promotion builds brand personality and emotional associations.

b) Beyond selling, it creates trust, credibility, and values.

Examples:

1. Tata Tea’s “Jaago Re” linked tea with social awakening.

2. Ariel’s “Share the Load” positioned the brand around gender
equality in households.
3. Titan watches promoted the idea of “gifting emotions” rather
than just timepieces.
4. Infosys uses PR and campaigns to build its global IT leadership
image.

Purpose: To create long-term brand equity and strong positioning.

5) Stimulating Demand and Sales

a) Promotion drives short-term sales and market expansion.

b) Offers, contests, and heavy campaigns often boost trial and
repeat purchase.

Examples:

1. Reliance Jio’s free data at launch created immediate demand

and transformed the telecom sector.
2. Domino’s “30 minutes or free” campaign encouraged immediate
ordering.
3. Big Bazaar’s festival sales stimulate demand in middle-class
families.
4. Ola and Uber offer discount codes during weekends to stimulate
short-term rides.
Purpose: To push immediate sales while increasing market share.

6) Supporting Sales Force and Channel Partners

a) Promotion isn’t only consumer-focused; it also motivates

dealers, retailers, and salespeople.
b) It helps in product push, stocking, and display.

Examples:

1. HUL provides retailer incentives for stocking and prominently

displaying Surf Excel or Dove.
2. Pharmaceutical companies offer trade promotions and training
for doctors and medical reps.
3. Maruti Suzuki gives dealers promotional kits and festive offers
to boost showroom footfall.

Purpose: To energize the distribution network and align it with

marketing objectives.

7) Differentiation in Competitive and Mature Markets

In markets where products are similar, promotion creates

differentiation and helps avoid commoditization.

Examples:

1. Cement brands like Ambuja Cement use humorous ads

(“Bhaiyaaa, ye deewar tootegi nahi”) to stand out in a parity
product category.
2. Tea brands (Tata Tea vs. Red Label) rely on social or emotional
narratives.
3. Telecom brands like Airtel differentiate via campaigns
highlighting strong networks (“Sab kuch try karo, phir sahi
chuno – Airtel”).

Purpose: To make products memorable and unique in consumers’

minds.
8) Socio-cultural Education and Value Creation

a) Promotion also helps create social awareness and cultural

identity.
b) It extends beyond selling to contribute to social change.

Examples:

1. Government campaigns like “Incredible India” promote tourism

and cultural heritage.
2. Swachh Bharat Abhiyan uses celebrities to encourage hygiene.
3. Whisper’s “Touch the Pickle” campaign broke taboos around
menstruation.

Purpose: To integrate marketing with societal and cultural

development.

Promotional 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 favourable blend of all promotion
elements to influence buyer’s behaviour and his process of decision
making. Sales can be promoted through an effective promotion mix.

Concept

1. The Promotional Mix is the blend of communication tools used

by firms to achieve promotional goals.
2. Promotion is all around us — from the ads on our phones to
posters on the streets. Every day, whether consciously or
subconsciously, we are exposed to different promotional tools.
3. According to Kotler, it includes:
a. Advertising
b. Sales Promotion
c. Personal Selling
d. Public Relations and Publicity
e. Direct and Digital Marketing
Elements of Promotional Mix

(a) Advertising

Meaning: Any paid form of non-personal communication

through mass media about a product, a service or an idea by an
identified sponsor is called advertising. It consists of paid
messages by identified sponsors through non-personal channels
(media). Advertising bears a signature in the form of a company
or brand name. It is Paid, non-personal presentation of products
by an identified sponsor via mass media.

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.

Nature: Reaches large audiences quickly, builds awareness, and

establishes brand image.

Forms of Exposure in Daily Life:

 Newspaper ads, TV commercials, radio jingles.

 Roadside hoardings, bus panels, cinema screen ads.
 Sponsored posts on Instagram, YouTube ads, Spotify audio ads.

Best for:

o Mass consumer goods (FMCG, telecom, fashion).

o Urban/semi-urban markets with high media exposure.

Advantages:

1. Wide reach in short time.

2. Builds strong brand recall and emotional connect.
3. Effective for awareness in launch and growth stages.
4. Creative storytelling possible (visual, sound, narrative).
 Disadvantages:

1. Very expensive (TV/print prime slots).

2. Impersonal – no customization.
3. Difficult to measure impact precisely.
4. High clutter; consumers may ignore ads (ad fatigue).

Examples:

a. Tanishq wedding ads emphasize emotions of family and

heritage.
b. Vivo & Oppo use IPL sponsorships to tap into cricket frenzy.
c. Patanjali promotes “swadeshi” positioning through nationalistic
messaging.
d. Netflix trailers on YouTube or Insta ads promoting new web
series.
e. CRED ads featuring quirky celebrities (Rahul Dravid as
“Indiranagar ka gunda”).
f. Zomato & Swiggy IPL sponsorships, reminding people to order
snacks during matches.

(b) Sales Promotion

Meaning: It is the means of communicating with the target

audience in a way that is not possible by using other elements of
the promotion mix. Sales promotion may be defined as "those
promotional activities other than personal selling, advertising
and publicity that are intended to stimulate buyer purchases or
dealer effectiveness in a specific time period. Thus, sales
promotion is any activity that offers an incentive for a limited
period to obtain a desired response from the target audience or
intermediaries (wholesalers and retailers). Special offers of gift,
coupon deals, discounts, demonstrations, trade shows, contests,
etc., are some examples of sales promotion. The purpose of
sales promotion programmes is to supplement the advertising
and personal selling messages offered by an organisation. This
is a Short-term incentives to boost trial or sales.
 Concept: 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 behaviour and provides immediate incentive
to buy. Sales promotion tools provide marvellous results when
supported by advertising and personal selling.

Nature: Creates urgency, stimulates trial and repeat purchases.

Forms of Exposure in Daily Life:

 “Buy 1 Get 1 Free” pizza deals.

 Festival discounts at malls, Flipkart/Amazon sales.
 Cashback offers on UPI apps like PhonePe or Paytm.

Best for:

o Price-sensitive middle-class markets.

o New product introduction & festival seasons.

Advantages:

1. Boosts short-term sales immediately.

2. Encourages product trial and switching.
3. Supports dealers and motivates sales channels.
4. Highly measurable in terms of sales volume.

Disadvantages:

1. Temporary sales spike; not long-term loyalty.

2. Overuse may dilute brand value.
3. Can create price wars and lower margins.
4. Customers may wait only for discounts.
 Examples:

a. Big Bazaar’s “Sabse Saste Din.”

b. Coca-Cola’s summer combo packs.
c. Reliance Digital’s exchange schemes during Diwali.
a. Myntra’s End of Reason Sale offering flat discounts on branded
clothing.
b. Domino’s 2 for ₹99 offers pushed through push notifications.
c. Spotify Premium student discounts to drive subscriptions.

(c) Personal Selling

Meaning: Personal selling is a person-to-person dialogue

between buyer and seller, where the purpose of this face-to-face
contact is to persuade the buyer to accept a point of view or to
convince the buyer to take a specific course of action. In other
words personal selling is a person-to-person process by which
the seller learns about the prospective buyer's wants and seeks to
satisfy them by making a sale. A salesperson should be properly
trained to develop and deliver a message to a prospective buyer.
Personal selling often involves a lot of travelling by salespeople
and stay outside the normal place of residence. Therefore,
personal selling is very expensive. But the high cost of personal
selling is offset by flexibility. The salesperson can modify and
adapt his presentation to meet ‘the specific needs of the prospect
(customer). The salesperson can handle the customer's
objections as they rise. In personal selling direct and almost
immediate feedback can be obtained fiom customers. Thus, we
can sum it by saying personal selling is the face-to-face
interaction between sales force and buyers to persuade, explain,
and build relationships.

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.

Nature: Two-way interaction; allows customization and

relationship-building.

Forms of Exposure in Daily Life:

 Sales executives in malls demonstrating a gadget.

 Bank relationship managers explaining credit cards or loans.
 Influencers doing Instagram Live product demos (new form of
“personal selling” for Gen Z).

Best for:

o B2B and industrial products.

o High-value consumer goods (cars, real estate, financial
products).
o Rural markets where personal trust matters.

Advantages:

1. Builds trust and personal connection.

2. Customizes messages for different customers.
3. Useful for complex, high-value products.
4. Provides direct feedback for improvement.

Disadvantages:

1. Very expensive (training, travel, commissions).

2. Time-consuming; limited reach.
3. Risk of salesperson bias/misrepresentation.
4. Not suitable for low-margin products.

Examples:

a. HDFC Bank’s wealth managers for loans and insurance.

b. Amway’s direct sellers explaining products.
c. Maruti Nexa executives guiding premium car buyers.
d. Apple Store staff explaining features of the latest iPhone.
 e. Byju’s counselors calling parents and students for course
enrollments.
f. Nykaa beauty advisors at malls giving free product samples
and tips.

(d) Public Relations (PR) & Publicity

Meaning: Non-personal stimulation of demand for a product,

service or business unit by generating commercially significant
news about it in published media or obtaining favourable
presentation of it on radio, television or stage. Unlike
advertising, this form of promotion is not paid for by the
sponsor. Thus, publicity is news carried in the mass media about
an organisation, its products, policies, personnel or actions. It
can originate with the media or the marketer, and is published or
broadcast at no charge for media space and time, to the
organisation. Publicity is similar to advertising except that it
involves an unpaid and unsigned message, even though it may
use the same mass media as advertising. When information
about a product or company is considered newsworthy, mass
media tend to communicate the information at free of cost. Thus
the organisation being publicised neither pays nor signs the
message. Publicity can either be positive (favourable) or
negative (unfavourable). Since the message is in the hands of
media and not controlled by the organisation (or firm), publicity
can be unfavourable. Newspaper (press) reports some years ago
about a major fire in a five star deluxe hotel in Delhi, gave the
hotel a great deal of adverse publicity on account of its faulty
fire escape systems. The hotel suffered a tremendous loss of
business. On the other hand, when Air India sponsors the
Himalayan Car Rally and organises it well, it is likely to receive
favourable coverage by mass media since the event is
newsworthy. Marketers spend a lot of time and effort in getting
news items and articles placed in newspapers and broadcasts so
that a favourable image of the company is created.
 Publicity in simple words is the process of building favorable
relations with stakeholders through credibility-driven
communication.

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 favourable 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.

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.

Nature: More credible than advertising because it is not directly paid

for. Helps in image building and crisis management.

Forms of Exposure in Daily Life:

 News articles about corporate CSR initiatives.

 Celebrity endorsements covered in the media.
 Viral stories on social media that improve brand reputation.

Best for:

o Corporate image building.

o Crisis management.
o Trust-dependent industries (IT, banking, healthcare).

Advantages:

1. Builds high credibility and trust.

2. Cost-effective compared to advertising.
3. Strengthens corporate reputation and goodwill.
4. Effective for crisis management.

Disadvantages:

1. Lack of control (media decides coverage).

2. Negative publicity can harm reputation.
3. Impact is harder to measure directly.
4. Slow process compared to sales promotions.
 Examples:

a. Infosys highlighting CSR in education.

b. Tata Steel sponsoring marathons.
c. Cadbury’s Amitabh Bachchan campaign post
“worms” crisis.
d. Tata’s CSR campaigns on sustainability and
education.
e. Cadbury’s Diwali campaign supporting local stores
(with Shah Rukh Khan AI ad) — covered widely in
media as a goodwill initiative.
f. Zomato’s apology campaigns (like clarifying
delivery controversies) build trust.

(e) Direct and Digital Marketing

Meaning: Kotler defines direct and digital marketing as “direct

connections with carefully targeted individual consumers to both
obtain an immediate response and cultivate lasting customer
relationships.” It is a two-way, interactive form of communication,
unlike traditional mass advertising. It is the targeted, direct
connections with consumers for immediate response and relationship
building.

Nature & Characteristics

1. Personalized → Tailored to individual needs, preferences, or

past behaviors (e.g., Amazon showing you “recommended for
you” items).
2. Interactive → Allows instant feedback (click, share, like, reply).
3. Measurable → Every click, view, open, or transaction can be
tracked.
4. Cost-effective → Compared to TV or print ads, digital channels
allow startups to reach millions at lower budgets.
5. Always-on → Consumers are connected 24/7, making digital
marketing a continuous engagement tool.
6. Two-way relationship → Customers can respond directly
(comment, message, rate, review).
Forms of Exposure in Daily Life

i. WhatsApp/Telegram Marketing:
a. Banks and fintech apps send transactional and promotional
alerts.
b. D2C brands send festival offers directly via WhatsApp
messages.
ii. Push Notifications:
a. Food delivery apps (Swiggy/Zomato) send witty one-liners
to prompt ordering.
b. Myntra alerts users about cart items going “out of stock
soon.”
iii. Email Marketing:
a. Nykaa sends personalized beauty recommendations.
b. Spotify and Netflix update users about new launches.
iv. Influencer Collaborations: Instagram reels, YouTube shorts, and
vlogs from micro-influencers. E.g., Mamaearth, Boat, and Sugar
Cosmetics use student-aged influencers relatable to Gen Z.
v. App-based Personalization:
a. Amazon recommending products “based on your
browsing.”
b. Netflix curating a personalized homepage of shows
“Because you watched…”
vi. Gamification:
a. Paytm cashback scratch cards.
b. Swiggy’s “Spin the Wheel” offers during festivals.

Best for:

o Start-ups and SMEs with limited budgets.

o Urban millennials and Gen Z with digital access.
o Personalized marketing niches (edtech, fashion).

Advantages:

1. Highly personalized and interactive.

2. Lower cost compared to traditional media.
3. Real-time measurable results (clicks, conversions).
4. Builds long-term engagement and loyalty.
 Disadvantages:

1. Risk of digital fatigue (too many notifications/emails).

2. Privacy/data security concerns.
3. Excludes rural/non-digital consumers.
4. Requires constant content creation and updates.

Examples

1. Swiggy/Zomato: Push notifications like “Bored? Fries won’t

judge you.” create humor and urgency.
2. Spotify Wrapped: Year-end listening recap encourages social
media sharing — turning data into promotion.
3. Mamaearth: Leverages relatable Instagram reels with campus-
friendly influencers instead of expensive celebrities.
4. Nykaa: Birthday discount emails and festival sale countdowns
build exclusivity.
5. Cred: Uses quirky digital campaigns (“Not everyone gets it”)
that appeal to aspirational Gen Z.
6. Dream11: IPL-linked fantasy cricket notifications with contests
for instant participation.
7. Meesho: Low-cost influencer collabs target small-town Gen Z
entrepreneurs who want to resell products.

Comparison of Promotional Mix Elements

Forms
Meanin Nature of
Best
g // Exposur Exam
Basis Suited Pros Cons
Definiti Feature e in ples
For
on s Daily
Life
Paid, One- FMCG, TV/radio • Wide • Very Tanish
non- way, lifestyle ads, reach expensiv q
Adve
personal mass , hoarding quickly e • weddi
rtisin
commun reach; telecom, s, cinema • Imperson ng
g
ication brand- entertai ads, Builds al, no ads;
by an building nment; Instagra strong customiz Vivo/
 Forms
Meanin Nature of
Best
g // Exposur Exam
Basis Suited Pros Cons
Definiti Feature e in ples
For
on s Daily
Life
identifie ; urban/se m brand ation • Oppo
d imperso mi- sponsore image Ad IPL
sponsor nal. urban d posts, • clutter & spons
via mass with YouTube Creativ fatigue • orship
media high pre-roll e Hard to ;
(Kotler). media ads. storytel measure Patanj
penetrat ling impact ali
ion. possibl directly. “swad
e • eshi”
Effecti ads;
ve for Netfli
launch x
& trailer
growth s on
. Insta;
CRED
Rahul
Dravi
d
“Indir
anagar
ka
gunda
”;
Zomat
o IPL
tie-
ups.
Sales Short- Creates Price- Flipkart/ • • Big
Prom term urgency sensitiv Amazon Boosts Tempora Bazaa
otion incentiv ; e festive short- ry effect r
 Forms
Meanin Nature of
Best
g // Exposur Exam
Basis Suited Pros Cons
Definiti Feature e in ples
For
on s Daily
Life
es to stimulat middle- sales; term • Sabse
encoura es class; Myntra’s sales • Overuse Saste
ge trial immedi seasonal End of Encour dilutes Din;
or sales ate /festival Reason ages brand • Domi
(coupon purchas sales; Sale; trial/sw Creates no’s
s, e; new cashback itching price “2 for
discount support product on • wars • ₹99”;
s, s launche Paytm/P Motiva Custome Coca-
contests, advertis s. honePe. tes rs may Cola
gifts). ing & dealers wait only summ
persona • Easy for er
l to offers. combo
selling. measur s;
e (sales Relian
volume ce
s). Digita
l
Diwali
excha
nges;
Spotif
y
Premi
um
studen
t
discou
nts.
Perso Face-to- Two- B2B Sales • • Very HDFC
nal face way, (industri reps at Builds costly wealth
Sellin interacti interacti al, IT); showroo trust & (training, manag
 Forms
Meanin Nature of
Best
g // Exposur Exam
Basis Suited Pros Cons
Definiti Feature e in ples
For
on s Daily
Life
g on ve, high- ms/malls relatio travel) • ers;
between customi value ; bank nships Limited Maruti
salespers zable; consum manager • reach • Nexa
on & expensi er goods s Person Time- sales
custome ve but (cars, pitching alized intensive execut
r to flexible; real loans; approa • Risk of ives;
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 Factors Affecting Promotional Mix

1. Nature of Product and Market

a) Consumer Goods (FMCG): Require mass communication to

build brand recall and drive frequent purchases. Tools:
Advertising + Sales Promotion.

Example: HUL soaps, shampoos, detergents → TV

commercials + “Buy 1 Get 1 Free” promos. Maggi ads on
YouTube + Flipkart combo packs during exams.

b) Durable Goods: Need more explanation & demonstration.

Tools: Advertising + Personal Selling. Example: Samsung or
LG electronics → showroom demos + festive ad campaigns.
c) Industrial Goods (B2B): Involve technical details,
customization, and high value. Tools: Personal Selling + PR.
Example: Larsen & Toubro (L&T) machinery sold through
detailed presentations and client meetings.
d) Services: Intangible, rely on trust. Tools: PR + Digital
Marketing + Personal Selling. Example: HDFC Bank →
Relationship managers + digital ads on financial security.

2. Stage of Product Life Cycle (PLC)

 Introduction Stage: Focus on awareness and trial.

o Tools: Heavy advertising + PR.
o Example: Ola Electric scooters launch → social media
buzz, influencer marketing, PR articles.
 Growth Stage: Build preference & expand reach.
o Tools: Balanced mix of advertising, digital, personal
selling.
o Example: Swiggy/Zomato during expansion phase →
celebrity ads + app push notifications + referral schemes.
 Maturity Stage: Defend market share, retain customers.
o Tools: Reminder ads + sales promotions.
o Example: Pepsi/Coca-Cola → “Summer combos,” IPL
sponsorships, constant TV ads.
 Decline Stage: Reduce spend, focus on liquidation.
 o Tools: Minimal promotion, discounting, clearance sales.
o Example: Micromax mobiles offering steep discounts to
clear stock.

3. Type of Buying Decision

a) Routine, Low-Involvement Purchases: Need repetition and

reminders.

Tools: Advertising + Sales Promotion.

Example: Parle-G biscuits → nostalgic TV/radio ads + price offers.
Daily online grocery app (Blinkit/Zepto) discounts on chips and
soft drinks.

b) Complex, High-Involvement Purchases: Require information,

persuasion, and trust.

Tools: Personal Selling + PR.

Example: Real estate apartments promoted via property fairs, site
visits, and media coverage.
Insurance policies explained by advisors with PR campaigns
around trust (LIC’s “Zindagi ke Saath bhi…”).

4. Target Market Characteristics

a) Urban, Literate Customers: More responsive to digital ads,

social media, influencer marketing, print, and OTT ads.
Example: Nykaa, Boat, Mamaearth → Insta Reels + YouTube
influencers.
b) Rural, Semi-literate Customers: Prefer personal interaction,
folk media, and radio.

Example: HUL’s Project Shakti empowering rural women as direct

sellers.
Tractor brands advertising during Krishi Melas.
Local fairs (Durga Puja pandals, Ganesh Utsav) where FMCG
firms sponsor stalls.
5. Push vs Pull Strategy

a) Push Strategy: Firm “pushes” products via intermediaries

(wholesalers, retailers, doctors).

A push strategy relies heavily on the distribution channel to

stimulate demand by ‘pushing’ the product. Under push
strategy, manufacturer directs all promotional efforts primarily
on the middlemen i.e., wholesalers and retailers. Product is
pushed through the distribution channel. So flow of promotion
and goods move from the producer to the wholesaler and from
the wholesaler to the retailer and from the retailer to the
consumer.

Tools: Trade promotions, dealer incentives, personal selling.

Example: Pharma firms incentivizing doctors/chemists to
prescribe specific drugs.

b) Pull Strategy: Creates consumer demand so that retailers must

stock the product.

A pull strategy relies heavily on marketing communications to

stimulate demand and ‘pull’ the customer into the retail store.
Under pull strategy, all efforts of promotion are directed at the
target market, i.e. consumers and then consumers demand the
desired products from the retailer. The retailers in turn demand
the products from the wholesalers who are compelled to stock
those products by approaching the manufacturer. Thus, the
request for the product starts from consumers and finally moves
to the manufacturer.

Tools: Heavy advertising, digital campaigns, influencer

marketing.
Example: Cadbury Silk’s “Say it with Silk” campaign →
demand created directly among youth.
Sneaker launches (Nike Air Jordans) promoted on Insta →
consumers rush to stores, pulling demand.
c) Most consumer goods manufacturers generally use a push-pull
(mix) strategy to sell their products. The proportion of pull and push
may differ according to the requirements of market situation.
Salesmen are used to push the product through the marketing channel,
while advertising and sales promotion pull the customers and support
personal selling to accelerate sales. Thus, all tools of promotion work
together.

6. Budgetary Considerations

 Start-ups / SMEs: Limited budgets → rely on low-cost, high-

engagement promotions.

Tools: Digital marketing, influencer collabs, social media

campaigns.
Example: Mamaearth building its brand via YouTube beauty
bloggers.
Local cafés promoting via Instagram stories instead of
hoardings.

 Large Corporates: Large budgets → adopt full Integrated

Marketing Communications (IMC).

Tools: Combination of advertising, PR, sponsorships, digital,

personal selling.
Example: Tata Motors Harrier launch → TV + print + auto
expos + influencer reviews on YouTube.

7. Competitive Intensity
 Highly Competitive Markets: Require aggressive, multi-
channel promotion to stay relevant.
o Example: Telecom (Jio vs Airtel vs VI) → price
promotions + celebrity ads + free data packs.
o Example: Food delivery (Swiggy vs Zomato) → IPL
sponsorships, app discounts, witty push notifications.
 Less Competitive Markets: Limited promotion suffices.
Example: Niche Ayurvedic brands rely on PR and word-of-
mouth.
 Guidelines for designing effective promotion strategy

The strategy is competitive policy. It lays down the direction by

which an organization tries to secure competitive edge, exhibit
attractiveness to buyer and make efficient use of firm’s resources. A
promotion strategy should be intelligently formulated and must pass
through various stages as summarized below:

 Identify the target audience: The marketing executive should decide

the target audience (in terms of usage and loyalty). Typical purchase
behaviour of target audience should be assessed. Marketers may find
loyal users, brand switchers, infrequent users of product or service.
Different promotion strategy should be used for different categories of
buyers.
 Determine the objective : It is essential to lay down the objective
of promotion strategy. The purpose may be to create need, build
awareness, provide knowledge, develop liking, build customer
preference, develop conviction (confidence) or secure purchase. The
most effective strategy can achieve multiple objectives.
 Design the promotion message: It is important to decide what to say
(message content), how to say(message expressed) and who should
say to attain a desired response. The management usually wants to
convey appeals, themes or ideas through message for brand
positioning and establishing points of difference.
Therefore, message may relate to features and performance of product
or services or image of brand as popular or traditional. The target
customer may expect the message to be providing ego, sensory or
rational satisfaction. For example, the phrase utterly buttery delicious
in message for Amul Butter provides sensory satisfaction.
Therefore, message should be carefully framed to appeal the
audience. It is equally important that message should be expressed
properly which demands creativity. The message can be expressed as
informational appeal describing product or service features and uses
or it can be transformational appeal describing non-product related
image or benefit. Message in such appeals may depict the kind of
persons using that brand or kind of experience resulting from the use
of that brand. These type messages influence emotions that will
motivate purchase. Further, the decision regarding message source
 (i.e. who should say the message) is important. Big business houses
usually hire celebrities for their brand endorsements as they know that
these popular sources have higher attention and recall value.
Credibility, likeability, expertise and trustworthiness of message
source can influence target audience response Hence, it should be
carefully decided. The promotion message should be relevant, useful
and credible to stimulate a better response.
 Selecting appropriate channel of promotion : It is important to
choose appropriate channel to convey message after considering
certain factors. The prevailing tough competition has made it difficult
to rely upon just one channel. The marketers now prefer to use
promotion mix to retain and attract customers. These involve personal
communication channels like salesmanship or personal selling which
are highly individualistic in nature and also impersonal channels like
T.V., Radio, sales promotion which are directed at more than one
person.
 Establishing the promotion budget : The company must estimate
the likely expenditure on promotional activities. Industries or
companies vary considerably on their expenditures. It may be high for
consumer goods whereas low for industrial goods. Different methods
are available to determine promotion budget. The company should
use an appropriate method.

Among other things, it is equally important to take feedback and

measure the effectiveness of promotion strategy so as to make
necessary changes in communication programme and product
offerings or services. Effectiveness of promotion can be measured in
terms of increase in demand, brand awareness, or purchase intention.

Determining promotion budget

Setting promotion budget is an important decision. It involves

financial commitments and has effect on sales and company’s image.
There are lots of methods available to determine promotion budget.
Some of them have been described as follows:

 Affordable : In this method, a company sets promotion budget on the

basis of funds available. This method completely overlooks the role of
 promotion in increasing sales. Moreover, due to different annual
promotional budgets, long term planning becomes difficult.
 Percentages of sales Method : Promotional expenditure may be
determined on the basis of relationship between promotional expenses
and sales revenue as indicated by specified percentage of sales either
current or anticipated. This method encourages management to think
in terms of relationship between promotion cost, selling price and
profits. It is certain as company spends same percentage every year.
But this method is less flexible as it does not allow to respond
to market need. Moreover, planning of long term promotion
programmes becomes difficult.
 Competitive Parity Method : This method envisages determination
of promotion expenses in such a way that parity with competitor’s
promotion expenses can be maintained. For this purpose, relevant data
can be collected from industry publications, inter-firm comparisons
published by industrial association and research studies. This method
is not scientific as objectives, scale of operation and resources vary
significantly among companies.
 Objective and task method : In this method, promotion objectives
are determined first and then tasks required to be performed to
achieve those objectives are determined. Finally, cost of performing
these tasks is estimated. This method is flexible and scientific. It treats
promotion expenditure as investment which is necessary to achieve
objectives. It forces managers to prepare budget for each promotion
campaign.