Promotion

Newport institute communication & economics Karachi
PROMOTION
Ch # 15 Advertising, Sales Promotion & PR
Promotion – marketing
communication
• An element of marketing
mix
• Communication
techniques aimed at
informing, influencing, and
persuading to buy or use a
particular product.
Promotional mix
• Specific mix of advertising, personal
selling, sales promotion and public
relations that a company uses to pursue
its advertising & marketing objectives
• Main elements of the mix:
- Advertising
- Sales promotion
- Personal selling
- Personal relation/publicity
- Direct mail
- Sponsorship
• These elements should be integrated in a
logical, consistent and cohesive manner.
Composition of mix depends

upon…
• Stage in the life cycle: Advertising is very
important at the time of launch
• Nature of the product: Complex/Technical
• Competitor activities
• Marketing budget
• Marketing strategy
• Target market
The Promotional Mix

• Advertising • Public relations
• Press advertising • Sponsorship
• Radio advertising • Personal selling
• TV advertising • Sales promotion
• Outdoor advertising • Telemarketing
• Transit advertising • Internet marketing
• Press releases • Exhibitions & trade
fairs
Promotional campaign
• Promotional objectives: What do the firm
seeks to achieve?
• Promotional strategies: Ways to achieve the
objectives
• Target audience
• Message
• Budget
• Feedback, Monitoring and control
Promotional objectives
• To increase sales • To modify attitudes
• To attract new customers • To create an image
• To retain existing ones • To position a product
• To encourage customer • To improve position in the
loyalty market
• To create awareness • To pull the product
• To inform through channels
• To remind • To push the product
• through channels
To ensure
Above the line promotion (ATL)
• Advertising through independent media

• Advertising is defined as any paid form of
non-personal presentation promoting
ideas, concepts, goods or services by an
identified sponsor
• One way communication through various
media
Advertising
• STRENGTHS • WEAKNESSES
- Wide coverage - Expensive
- Awareness/Hype - Impersonal
- Control of msg - One way
- Can be used to build communication
brand loyalty - Lacks flexibility
Below the line advertising

• All forms of promotion other than advertising
– direct mails, exhibitions, sales promotions,
branding, merchandising, personal selling,
packaging, public relations
• Used for short term tactical reasons
• Promotional activity not involving media but
the use of methods over which the firm has
some control
Examples of BTL
• Personal selling
• Merchandising
• Direct mail
• Sales promotion
• Packaging
• Sponsorship
• Public relations
• Exhibitions/trade fairs
Personal Selling
• Promotion on a person to person basis
• Two way communication
• Carried out through telephone, at
meetings, at retail outlets & door to door
selling
• High priced, low volume and highly
technical products rely heavily on personal
selling
Personal Selling
• STRENGTHS • WEAKNESSES
• Great attention - High cost
• Msg is customized - Labor intensive
• Persuasive impact - Expensive
• Potential for - Can only reach a
development of limited no. of
relationship customers
• Adaptable
• Opportunity to close
sale call
Sales promotion
• Tactical point of sale material
or inducements designed to
stimulate purchases
• Short term incentives to
increase sales
• Some promotions are aimed at
consumers, some at
intermediaries and others at
the salesforce
• E.g.: coupons, leaflets,
demonstrations, samples, free
gifts, point of sale (POS)
displays etc.
Sales promotion
• Incentives provide a quick boost to sales

• Effects maybe short term only
• Excess use of some incentives may
adversely effect brand image
Consumer promotions
• Promotions aimed at
the consumers. E.g.
- Price reduction
- Coupons - Events
- Vouchers - Displays
- Competition
- Free gifts
Trade promotions
• Promotions aimed at
intermediaries. - Credit
• Purpose is to - Delayed invoicing
encourage - New product offers
distributors to stock - Competitions
the product
- Free services
- Loyalty bonuses
- Training
- Range bonuses
- Return facility
Sales force promotions

• Promotions aimed at - Vouchers
the sales force - Free Services
• Designed to motivate - Money equivalents
the sales force. E.g. - Free gifts
- Bonus - Competition
- Commission
- Coupon
Public relations
• Managing relations with an organization’s

various stakeholders
• The planned and sustained effort to
establish and maintain goodwill & mutual
understanding between an organization’s
various stakeholders
Publicity
• Release of a commercially
significant news about a
particular product or service
• Purpose is to obtain a
favorable presentation of
such news via a medium not
paid for by a sponsor
• Involves getting media
coverage of an event or
product launch / articles in
newspapers
Scope of PR
• Promotion through media publicity
• Enhances public awareness of the
company
• Projects company’s mission & philosophy
• Projection of the organization as a source
of opportunities
• Obtaining favorable comments on the
media
Sponsorship
• Payment for an event/person/organization
is given in return of some benefit
• A specialized form of advertising that can
create significant exposure for companies
• Common in the world of art and sports
Merchandising
• Attempts to influence customers at the
point of sale
- Display pop-up stands
- Shelf talkers, wobblers, danglers etc.
- Store layout
- Storage space
- Ambience
Packaging
• The outer wrapper or the
container is often an
indicator of the quality of
the product itself
• Packaging serves the
following purposes:
- Protection of the product
- Preservation of the product
- Provides information
- Promotes the product
- Convenience
Direct Marketing
• Contacting the customer
through offers directly
• Emails, letters, websites etc.
• Communication can be
personalized
• Short term effectiveness can
be easily measured
• Response rates are often low
• Poorly targeted direct
marketing causes customer
annoyance
Evaluation of promotional effort
• Two ways of evaluation:

- Was it effective? Did it achieve its objectives?
- Was it efficient? Were the objectives achieved at
lowest possible cost?
Promotional effectiveness & efficiency

Effective Ineffective
Efficient Objectives achieved Low promotional

at lowest costs budget
Effective & cost Objectives not
efficient achieved
Inefficient Objectives achieved Expensive
but at high cost promotion which
fails to achieve
objective

Promotion

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Newport institute communication & economics Karachi

Composition of mix depends

The Promotional Mix

Above the line promotion (ATL)

• Advertising through independent media

Below the line advertising

• Incentives provide a quick boost to sales

Sales force promotions

• Managing relations with an organization’s

Evaluation of promotional effort

• Two ways of evaluation:

Promotional effectiveness & efficiency

Efficient Objectives achieved Low promotional

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