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UNIT 8: PROMOTION DECISION

Prof. A. K. Jha, PhD.
Curriculum
 Concept and objectives of promotion
 Promotion mix and its components: advertising, publicity, sales promotion, personal selling,
and public relations
 Advertising: concept, features, types, and Media
 Web advertising in marketing communication
 Publicity: concept and forms of publicity
 Sales Promotion: concept and types
 Personal selling: concept, types and process of personal selling
 Public relations: concept and tools
 Selection of Promotion mix
 Integrated marketing communication: Meaning and significance.

Concept of Promotion
Marketing promotion includes a variety of communication activities to educate customers, increase
awareness, increase demand, build brand value and recognition and provide differentiation.
Promotion is the process of marketing communication involving information, persuasion, and
influence. Promotional efforts act as powerful tools of competition providing the cutting edge of its
entire marketing program.
1. According to Philip Kotler, “Promotion includes all the activities the company undertakes to
communicate and promote its products to the target market”.
2 . According to W. J. Stanton, “Promotion is the element in an organization’s marketing mix that
serves to inform, persuade and remind the market of the organization or its products”.
3. According to Mc. Carthy, “Promotion is concerned with any method that communicates to the
target market about the right product to be sold in the right place at the right price. Promotion
encompasses sales promotion ,advertising, and personal selling”.
4. According to Mc Carthy, “promotion refers to any type of marketing communication used to inform
or persuade target audiences of the relative merits of a product, service, brand or issue. The aim of
promotion is to increase awareness, create interest, generate sales or create brand loyalty. It is one of
the basic elements of the market mix, which includes the four P's: price, product, promotion, and
place”.
Hence, promotion is persuasive communication to inform potential customers about the
existence of products, to persuade and convince them that those products have emerged with want
satisfying capabilities. It offers the message, the communication of these benefits to consumers.
Hence, promotion message has two main purposes; persuasive communication and tool of
competition.

Importance/ Objectives of Promotion

The importance of promotion are as follows:
1. Sales of the goods in imperfect market. Promotion helps in the sales of the goods in imperfect
market. In the imperfect market conditions, the product cannot be sold easily only on the basis of
price differentiation. It is the promotional activity that provides information about the differences,
characteristics and the multi-use of the products of various competition in the market. The customer is
attracted to purchase the goods on the basis of such information successfully.
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2. Filling the gap between producers and consumers. Promotion helps in filling the gap between
producers and consumers. Due to the tough market condition, mass selling is quite impossible without
promotional activities. The distance between producers and consumers has so widened in present days
to get them touched with the product that promotional activities are necessary.
3. Facing intense competition. Promotion helps in facing intense competition in the market. When a
manufacturer increases his promotional spending and adopts an aggressive strategy in creating a brand
image, others are also forced to follow the suit. This leads to ‘promotional war. So, it is necessary to
face the competition in the market with the help of promotional activities.
4. Large scales selling. Promotion helps in the large selling of goods and services. Sales promotion
is the result of large-scale production. It can be achieved only by appropriate methods of large scale
selling. Large scale selling is possible with the help of promotional activity. Due to the large selling of
goods, there will be more chance of promotion of goods.
5. Higher standard of living. Promotion helps in the rising standard of the people. The promotional
activities increase the standard of living by providing the better goods at a lower rate due to large
scale production and selling. It helps to increase the standard of living in a good way. People can raise
their standard of living with the help of promotional activity. As the promotional activities increases,
the standard of living of people also increases. So, the promotional activity has a great role in the
increment of a standard of people so that they can live a good and happy life.
6. More employment. Promotion helps to create more employment opportunities. People can gain
employment opportunity with the help of promotional activities. With the help of promotional
activity, many workers get motivated towards the work. Promotional activity helps to increase more
employment opportunities to the people who are unemployed, as the promotional activities cannot be
performed without the help of an effective sales force and the specialists in various fields.
7. Increased trade pressure. Promotion helps to increase trade pressure in the market. The growth
of large scales retailer, such as supermarkets, chain stores, etc. has brought greater pressure on
manufacturers for support and allowance. Promotional activities help to decrease the trade pressure.
There is need for promotional activities to decrease the trade pressure.
8. Effective sales support. Promotion helps in the sales support of the product. Sales promotion
policies are under the supplement to the efforts and impersonal salesmanship. Good sales promotion
materials make the salesman’s effort more productive. Promotion helps in the sales of the product. It
provides good support in selling the different types of goods. Sales of different types of goods in the
market are very necessary to increase the market economy.
9. Increased speed of product acceptance. Promotion helps to increase the speed of the products
acceptance. Most of the sales promotion devices such as contests, premium coupons, etc. can be used
faster than other promotion methods such as advertising. The increase in rapid speed of product
acceptance has occurred with the help of promotional activities. As the promotional activities are
done, there will be direct effect in the increment of a speed of the product.

Tools or Components of Promotion

The promotion mix is the essence of what promoting is and how promoting is done effectively.
Advertising, sales promotion, personal selling, public relations, and direct marketing comprise the
promotion mix. These tools are used “to communicate customer value and build customer
relationships persuasively" (Kotler, 2010). Following are the components or tools of promotion mix:
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1. Advertising
Advertising is the major components of promotion of products. It is an impersonal mass
communication that the sponsor has paid for and in which the sponsor is clearly identified. The most
familiar forms of ads are found in the broadcast (TV and radio) and print (newspapers and magazines)
media. However, there are many alternatives, from direct mail to billboards and from the telephone
directory to a yellow page.
2. Personal Selling
Personal selling is the direct presentation of a product to a potential customer by a representative of
the organization for selling it. Personal selling takes place face to face or over the phone, and it may
be directed to a middleman or a final consumer. It plays the vital role in the promotion of products.
3. Sales Promotion
Sales promotion is demand stimulating activity designed to supplement advertising and facilitate
personal selling. It is paid for by the sponsor and frequently involves a temporary incentive to
encourage a purchase. Many sales promotions are directed at consumers. They are designed to
encourage the company’s sales force or other members of its distribution channel to sell its product
more aggressively. Sales promotion include activities such as contests, trade shows, in- store displays,
rebates, samples, premiums, discounts, and coupons.
4. Publicity
Publicity is a special form of public relations that involves news stories about an organization or its
products. It involves personal or impersonal message that reaches mass audiences through the media.
But there are several things to distinguish publicity from advertising: It is not paid for, the
organization that is the subject of publicity has no control over it, and it appears as news and therefore
has greater credibility than advertising.
5. Public relation
Public relation encompasses a wide variety of communication effort to contribute to generally
favorable attitudes and opinions toward an organization and its products. Unlike most advertising and
personal selling, it does not include a specific sales message. The targets of the public relation may be
customers, stockholders, a government agency, or a special- interest group. Public relations can take
many forms, including newsletters, annual reports, lobbying, and sponsorship of the charitable or
civic event.
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ADVERTISING
Concept of Advertising
Advertising is one of most important elements of promotion mix. The non-personal communication of
information and messages about goods or services made by the producers or sellers paying money to
any media is called advertisement.
Besides giving information about goods or services to customers, advertisement also educates
them. Producers or sellers may use different media such as TV, radio, newspapers, magazines, etc. in
order to make customers know about their goods or services and communicate their messages and
ideas. They also may use fair, post office, internet and so on to advertise.
In fact, advertisement is one of the most effective as well as easy means to increase sales.
This is the best means to disseminate information and messages to maximum people about products at
lowest cost. In this age, sales of goods or services cannot be imagined without advertisement.
1. According to Philip Kotler, “Advertising is any paid form of the non-personal presentation and
promotion of ideas, goods and services by an identified sponsor”.
2 . According to AMA, “Advertising is any paid form of the non-personal presentation of goods,
services or ideas for action, openly paid for by an identified sponsor.”
Thus, advertising is the communication of any activity through sponsored body.
Objectives of Advertising
The main objective of advertising is to sell goods or services. In order to achieve these major
objective other specific objectives are formulated and applied in personal advertising campaign. Such
specific objectives are designed or determined by entire marketing strategy. They are as follows:
1. To assist salespersons. The major objective of advertising is to give information about goods or
services to perspective customers. This supports personal selling. In fact, if advertisement already
reaches the customers, it becomes easy for sellers to sell the advertised goods or services. Sometimes,
advertisement reaches the people inaccessible to the sales-force and informs them about the products.
2. To inform about new product. The other objective of advertisement is to give information to the
general public about new products. While making plan for new products, it is aimed to make know the
customers or even businessmen about the utility, quality, features, benefits, price etc of the new
products.
3. To create new demand. The objective of advertisement is to attract perspective customers and
motivate them to buy the products. Through the means of advertisement customers can be motivated
to buy even the goods, which are not necessary for them.
4. To create and maintain image and goodwill. Advertisement can disseminate good impression,
goodwill and good image of the producer or seller in the general public. Already established goodwill
and good image help in bringing new product in market easily.
5. To reduce cost. The other objective of advertisement is to increase demand, sales and reduce
production and distribution cost through effective advertising.
6. To remind and reinforce customers. The objective of advertising is to remind customers of the
utility, price, benefits etc. of the already established brand of the products and also to encourage
customers to buy the products suggesting that their selection is right.

Types / Classification of Advertising Media

Major advertising medias include press media, direct advertising, outdoor media, audio visual media,
advertising specialties, and others.
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I. Press Media
Press media are also called print media. Print media are popular and widely used for commercial
advertising. A number of people can be addressed by print media. Attractive slogans, statements,
words, figures, pictures, drawings, comparative statements, charts, etc., can be used for advertising the
products in colorful and artful manner. Press media mainly involves newspapers, magazines, and
other publications:
1. Newspapers. Newspapers are a popular medium to contact or inform a large number of customers.
Newspapers may be morning or evening; may be in English, Hindi or in other regional languages;
may be daily or weekly; may be local, regional or national; or may be routine or special edition.
The company should consider circulation, language, geographical coverage, price, credibility,
costs of buying space, and quality of printing while selecting a suitable newspaper. Pictures, slogans,
figures, charts, etc., can be used. Company can used multi-colored advertisement, too.
2. Magazines. Magazine is another popular and wisely used advertising medium. It is similar to
newspapers with regard to many aspects. To consumers, magazines are treated as source of
information and entertainment. A large variety of magazines or periodicals are published weekly,
fortnightly, monthly, quarterly, half-yearly or annually.
Magazines are also published by religious and social organizations, schools, colleges,
university or educational associations, professional and commercial associations, governments,
companies, etc. Similarly, magazines are classified in forms of sex, age, profession, industry,
entertainment, and so forth. Based on customer characteristics, a proper magazine should be selected
for publishing advertising message.
3. Other print media. Print media also include telephone directories, books, notebooks, reports,
community and professional directories, bus or railway tickets and timetables, and special
publications on the special events by schools, colleges, universities, local bodies, cooperative
societies, companies, or governments.
Local manufacturers, professionals, dealers, retailers, etc., mostly prefer these media to
advertise their products. This set of media is relatively cheaper. Most of these print media are used by
many people and have long life compared to magazines and newspapers.
II. Direct or Mail Advertising
Direct advertising can be defined as “Any form of advertising in which the message is directed to
specific individuals directly by the advertiser”. This medium consists of written, printed, or processed
message delivered directly to the selected buyers. This set of media is used to appeal the target market
directly.
In practice, it is not suitable for a large number of customers. This type of advertisement is
mostly sent personally, or by post and courier services. In the age of information technology, fax, e-
mail, and cell phone SMS are also famous modes to send direct mail in a limited scale.
Most commonly used methods for direct advertising are:
1. Sales letters. The firm directly sends a written or printed letter to some or all customers. Such
letters contain message, product description, special offers, etc. Sales letters can be sent to customers
using different methods like courier services, paid persons, or postal services.
2. Fax. Catalogue, invitation, launching of new product or any message can be sent through fax
machine. However, company must know fax number of the receivers. Now, fax is used widely for
different purposes. Words, pictures, tables, charts, symbols, etc., can be sent through fax. It can be
used for limited customers, and is normally applied for industrial products.
3. E-mail. E-mail is relatively new and popular tool for sending message. It is sent to special
customers whose e-mail addresses are available or directly to all the account holders. For example,
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What-sap, Hotmail or MSN Messenger services, Gmail, Yahoo and many others provide free
messenger services. However, advertiser has to pay for advertising his products.
4. Cards. Cards are used to carry brief messages, acknowledge orders, remind customers, answer
enquiries, update mailing list or to make special offers. Cards may be plain or coloured; multifold or
single fold; or may be in forms of greetings or business letters.
5. Greetings. Very popular means to establish relation with customers. The company maintaining a
well-up-to-date customer database can send greeting cards on different events and occasions. Along
with greetings, a brief message, picture of product or slogan with commercial value can be sent to
customers and dealers.
6. Circulars and leaflets. Mostly, they are typed or printed on one or both sides. They may be in
coloured papers. Circulars and leaflets involve description or special features of products. Many
companies send circulars or leaflets on regular basis.
7. Catalogues, folders, booklets and brochures. They contain necessary information and are sent or
offered to customers. Booklets are widely used by companies selling two- wheelers, refrigerators,
television, or other technical products.
8. Calendars and diaries. Companies offer calendars or diaries, specially prepared as per their
requirements, free-of-costs to customers and dealers, containing their names, symbols, brand names,
slogans or pictures of the products. Diaries are more informative and expensive compared to
calendars.
9. Others. Following other means are also used for direct advertisement:
i. Data cards, samples, and gifts
ii. SMS – Short Mobile Message through cell phone
iii. House organs like story books, articles, cartoons, jokes, etc.
iv. Pamphlets, etc.
III. Outdoor or Mural Media
Nowadays, outdoor advertising media are widely used for almost all types of goods and services.
Outdoor media are excessively used by manufacturers and dealers, hotels, restaurants, academic
institutions, airways, banks, insurance, etc.
Cold drinks, cements, cigarettes, petroleum products, and cosmetics products widely use these
media for advertisement. They are also known as mural media. Those companies, which are not in
position to spend huge amount on television, radio, newspapers or magazines and opt for these
media.
Most common outdoor advertising media have been briefly discussed below:
1. Banners. They are used at popular places like cricket matches, tournaments, stage shows, fairs,
talent shows, and annual functions of school, colleges and universities, seminars and conferences, or
public meetings.
2. Special signboards. They are used at bus and railway satiations indicating route or platform
number, or indicating name of roads and directions in the city. Most cell phone service providers
including Vodafone, Idea Cellular, Airtel, etc., use this medium to popularize their name and brand.
3. Kiosk. Square or triangle shaped boxes with written words or picture on them are hanged on
electricity or telephone polls.
4. Billboards. Special boards are prepared to advertise the product. Dealers or retailers put such
boards nearby their shops, showrooms, shopping malls or on the upper sides of buildings.
5. Handbills. They are very common and too cheap. Advertisement is printed on a piece of paper of
small size. These leaflets are distributed hand to hand by a paid man, along with newspapers, or
otherwise.
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6. Station posters. Multi-colored printed posters with written message and pictures are stuck on
walls, benches, insides the canteens, and inside and outsides bus stations, railway stations, and
airports.
7. Sky writing. It is a novel and expensive vehicle to advertise the product. It is not very popular in
our country. It involves showing words, symbols, or picture through gas during the night using plane,
balloon, helicopter, or bursting.
8. Symbol of product. Giant size products, picture of products, or package of products are used for
advertising purpose. Cadbury, Balaji Wafers, Coca-Cola, Maruti Car, Hero Honda, Natraj Pencil, etc.,
use this medium.
9. Neon sign. Neon tube lights are used for advertising. Words are written by neon tubes and are
place on boards on buildings. Different coloured are used to make it attractive. This can be used only
during the night. Cinema, business firms, banks, tuitions classes, and other professionals use neon
signs to publish the advertising message.
10. Other outdoor media. Other common and popular outdoor advertising media include:
i. Posters and wall paintings
ii. Hoarding on the road
iii. Vehicle advertising
iv. Sandwich man
v. Trade fair
vi. Balloons, etc.
There may be more outdoor media than listed above. Each of these media has its merits, demerits, and
suitability. But, we will discuss merits and demerits jointly for ail the outdoor advertising media.
IV. Audio-Visual Media
The media that can be seen and/or hear are known as audio-visual advertising media. In contemporary
marketing environment, these media are the most popular means to send advertising message.
Marketers are using aggressively the audio-visual vehicles to prove superiority of their products over
the competitors.
These media, though expensive, are considered as the modern and prestigious among all the
advertising media. This set of media is excessively used for all types of goods and services. Audio-
visual media mainly include television, radio, short films, Internet, moving slides, film slides, etc.
1. Radio. Perhaps it is the cheapest (in terms of per listener cost) and most pervasive among all
media used for mass communication. It crosses the literacy barriers. Countrywide or on particular
regions, the direct message is conveyed to the (desired group of) listeners.
Radio is used not only for advertising national programmes by the Government for Family
Planning, vaccination, woman education, ecological conservation, erosion of superstitions, or any
other programmes of social and national interest, but is also used by many companies for commercial
advertising.
Insurance, banks, financial institutions, and manufacturers use radio to advertise their goods/
services. Advertisements are broadcasted before, after, or during specific (regional or national)
programmes.
Some companies broadcast their own programmes or events of the social interest and get their
products or activities advertised directly. Local radio (FM radio) is excessively used by local
marketers like tuition classes, private colleges, hotels and restaurants, dealers and distributors of
distributors consumer durables, and so forth.
2. Television (TV). It is the newest, fastest growing, and most popular advertising medium. Now,
television set is available at affordable price. Most of TV channels and local cable operators carry
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commercial advertisements. It appeals the people through the eye and the ear, i.e., it creates audio-
visual effect. Products can be demonstrated as well as explained.
Written words, description, and slogans can also be depicted with pictures, package, and
brand names and/or products. Now, film starts, cricketers, artists, and modeling personalities are
excessively used to advertise different types of products. Celebrity participates in it for advertising.
3. Internet. Internet is the latest medium to advertise products. Some companies put their
advertisements on their websites; some companies buy web page of the popular websites. Even,
sometimes, they place their advertising message directly on different websites.
Viewers just clicking on the name, address, picture, product, logo, brand, or slogan and can
get full detail of a product or a company. To develop their own websites on Internet is also very
common due to rapid practice of e-commerce or online transactions.
Most of the established companies, banks, insurance, and educational institutes have put their
information of Internet. In India, use of Internet for advertising purpose is on increase. More than 100
million Indian access the Internet regularly.
4. Moving slide. This is mostly used in urban areas. Here, moving slides are used to advertise
product. They are used for commercial or even for non-commercial purposes. Advertising message,
picture of product, or logo of company moves either alternate or in one direction on the screen kept on
private or public buildings.
Such slides are based on electricity or battery. However, use of electric circuit is very
common. Nowadays, computer-based slides are very effective. Normally, it is a visual device. Voice
is not associated. These slides are located in densely populated locality, corners, or near public places
where a maximum number of people passes through.
5. Film or cinema. Film advertisement mainly involves cinema slides and short films. A large
number of people can be exposed through this medium. Advertisements are shown at theatres or at
different places by projectors.
6. Short films. They are presented before films or during interval. Many companies use short films to
advertise its products through cinema houses. It is a similar to television medium. Main difference
between TV and short film is that film can expose only limited audience while TV is capable to
contact millions of people at time.
For example, popular advertisements are Vico cream, toothpaste and powder, Niramia
detergent cake and washing powder etc. Short films are shown along with non-commercial films
during various events or functions such as seminars and similar events.
7. Slides. The alternate way to advertise the product in the theatre consists of slides. This medium is
also used for both commercial as well non-commercial ads. Alike TV, it is a slide-cum-sound
medium.
Here, slides consisting name of producers, products, logo, etc., are shown in theatres and at
the place of special events. Advertisements are presented in theatre before and after film or during
interval.
V. Other Media
Apart from the media discussed in above part, there are various media frequently use for advertising
the products. Most widely used common advertising media are:
1. Window Display
2. Product Package
3. Counter Display
4. Special Display and Shows
5. Showrooms
6. Trade Fair and Exhibition, etc.
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Web Advertising in Marketing Communication (Online Advertising)

Online advertising, also called online marketing or Internet advertising or web advertising is a form of
marketing and advertising which uses the Internet to deliver promotional marketing messages to
consumers. Consumers view online advertising as an unwanted distraction with few benefits and have
increasingly turned to ad blocking for a variety of reasons.
It includes email marketing, search engine marketing (SEM), social media marketing, many
types of display advertising (including web banner advertising), and mobile advertising. Like other
advertising media, online advertising frequently involves both a publisher, who integrates
advertisements into its online content, and an advertiser, who provides the advertisements to be
displayed on the publisher's content. Other potential participants include advertising agencies who
help generate and place the ad copy, an ad server which technologically delivers the ad and tracks
statistics, and advertising affiliates who do independent promotional work for the advertiser. It
includes the following advertisement:
i. Mobile advertising
Mobile advertising is ad copy delivered through wireless mobile devices such as smart phones, feature
phones, or tablet computers. Mobile advertising may take the form of static or rich media display ads,
SMS (Short Message Service) or MMS (Multimedia Messaging Service) ads, mobile search ads,
advertising within mobile websites, or ads within mobile applications or games (such as interstitial
ads, "advergaming," or application sponsorship). Industry groups such as the Mobile Marketing
Association have attempted to standardize mobile ad unit specifications, similar to the IAB's efforts
for general online advertising.
ii. Email advertising
Email advertising is ad copy comprising an entire email or a portion of an email message. Email
marketing may be unsolicited, in which case the sender may give the recipient an option to opt out of
future emails, or it may be sent with the recipient's prior consent.
iii. Online classified advertising
Online classified advertising is advertising posted online in a categorical listing of specific products or
services. Examples include online job boards, online real estate listings, automotive listings, online
yellow pages, and online auction-based listings.

PUBLICITY
Concept of Publicity
Publicity is also a way of mass communication. It is not a paid form of mass communication that
involves getting favorable response of buyers by placing commercially significant news in mass
media. Publicity is not paid for by the organization. Publicity comes from reporters, columnists, and
journalists. It can be considered as a part of public relations.
Business firms hold press conference, photography, news broadcasting, publicity etc. and
distribute different advertising materials to pressmen. News presentation may create positive attitude
in customers. Publicity involves giving public speeches, giving interviews, conducting seminars,
offering charitable donations, inaugurating mega events by film actors, cricketers, politicians, or
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popular personalities, arranging stage show, etc., that attract mass media to publish the news about
them.
1. According to William J. Stanton, “Publicity is any promotional communication regarding an
organisation and/or its products where the message is not paid for by the organisation benefiting from
it”.
2. According to Philip Kotler, “Non-personal stimulation of demand for the product or service, or
business unit by placing commercially significant news about it in public medium or obtaining
favourable presentation of it upon radio, television, or stage that is not paid for by the sponsor”.
Forms/ Tools/ Types of Publicity
The following sections list numerous means by which one can publicize events. One of these ideas
will be familiar to you while others will hopefully provide with insight into innovative and more
creative ways of effectively publicizing programs:
1. Posters. The essential purpose of a poster is the rapid telling of a single simple message using a
limited number of elements. Posters are viewed more rapidly than other methods of advertisement.
Their message must be strong, simple, and brief.
2. Table tents. Table tents should be made of thick or heavy grade of paper that will stand firm. Table
tents can be placed in visible locations including lounges, lobby, dining hall, and on desk tops.
3. Invitations. A personal touch can be added to your publicity by distributing invitations for your
program. These can be placed in mailboxes or handed out or slipped under room doors.
4. Calendar. A large calendar of activities located on your bulletin board or distributed individually is
a particularly effective technique. Students will have at least one consistently identifiable source for
information and activities. The smaller calendars of activities can be copied and put into mailboxes
or slid under doors.
5. Balloons. One can write a message on the balloon or put the message on a piece of paper inside
the balloon. Balloons can be tied with string to student’s door knobs, handed out at the entrance of
the building or handed out in dining hall lines.
6. Tickets. One can purchase printed tickets or make your own. Free tickets, and invitations, can be
placed in mailboxes, handed out, or slipped under doors. A variation of the ticket concept is to
distribute coupons. The coupon might entitle the person to a prize or free refreshment item.
Coupons can be included on flyers or on printed schedules and this may prevent your advertisement
from falling victim to the trash can.
7. Banners. A large extension of the poster, these can be hung outside the hall or in the mailroom or
in a lobby. A bed sheet or old shower curtain will make a good size banner.
8. Internet. One can use networking groups or access other groups through their email list, many
communities now have Email lists for community events, individuals also have large lists and can
use them to do outreach with flyers, letters and other information.
9. Websites. Websites can be effective tools for the exchange of ideas, for marketing, for outreach.
They require regular upkeep. Links can be emailed, imbedded in the prose or offered in other
website listings.
10. Other publicity techniques:
Networking sites, Mass e-mails, Bumper Stickers, Door Hanger,
Footprints Logos Painted Windows Stickers
T-shirts Balloons Post Cards.
Characteristics of Publicity
Publicity is not a paid form of mass communication that involves getting favourable response of
buyers by placing commercially significant news in mass media. It involves obtaining favourable
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presentation upon radio, newspapers, television, or stage that is not paid for by the sponsor. Following
are the features of it:
2. Non-paid form. Publicity is not a paid form of communication. It is not directly paid by producer.
However, it involves various indirect costs. For example, a firm needs some amount for arranging
function, calling press conference, inviting outstanding personalities, decorating of stage, other related
costs, etc.
3. Various media. Mostly, publicity can be carried via newspapers, magazines, radio, or television.
For example, in case a product is launched by popular personality in a grand function, the mass media
like newspapers, television, radio, magazines, etc., will definitely publicize the event.
4. Objectives. Sales promotion is undertaken for a wide variety of purposes. They may include
promotion of new product, pollution control and special achievements of employees, publicizing new
policies, or increase in sales. It is primarily concerns with publishing or highlighting company’s
activities and products. It is targeted to build company’s image. In a long run, it can contribute to
increase sales.
5. Control of producer. Company has no control over publicity in terms of message, time,
frequency, information, and medium. It comes through mass media like radio, newspapers, television,
etc. It is given independently by the third party. It is presented as a news rather than propaganda.
6. Credibility/ social significance. Publicity has high degree of credibility or reliability as it comes
from mass media independently. It is given as news for social interest. It has more social significance
compared to other means of market promotion.
7. Part of public relations. Publicity is a part of broad public relations efforts and activities. Public
relations includes improving, establishing, and maintaining direct relations with all publics. Publicity
can help improve public relations.
8. Costs. Publicity can be done at much lower cost than advertising. Company needs to spend a little
amount to get the event or function publicized.
9. Effect. Publicity message is more likely to be read, viewed, heard, and reacted by audience. It has
a high degree of believability as it is given by the third party.
10. Repetition. Frequency or repetition of publicity in mass media depends upon its social
significance or the values for news. Mostly, it appears only once.

Objectives of Publicity
Publicity is aimed at a number of objectives. The most common objectives of publicity have been
discussed in brief as under:
1. Building corporate image. Through publicity, a company can build or improve its corporate
image. People trust more on what press reporters, columnists, or newsreaders say via mass media
independently than what the company says. Publicity highlights the company’s name and operations.
It popularizes the name of the company.
2. Economy. It is a cost saving medium. Here, a company is not required to pay for message
preparation, buying space and time, etc. The cost involved is much lower than other means of market
promotion. Financially poor companies may opt for publicity.
3. Assisting middlemen and salesmen. Publicity can help middlemen and salesmen in performing
the sales-related activities successfully. Information conveyed through publicity speaks a lot of things
on behalf of sellers. Publicity makes selling tasks much easier.
4. Information with high creditability. Sometimes, publicity is targeted to disseminate information
more reliably. Customers do not express doubts on what publicity appeals. Customers assign more
value to information supplied by mass media via publicity than by the advertisement.
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5. Removing misunderstanding or bad image. Company can defend the product that has
encountered public problems. In many cases, publicity is aimed at removing misunderstanding or bad
impression. Whatever a publicity conveys is more likely to be believed.
6. Building interest on product categories. Publicity attracts attention of buyers. Due to more
trusted news, people build interest in various products and activities.
7. Newsworthiness information. Publicity publicizes the fact in an interesting ways. Publicity is
eye-catching in nature. People do not skip the news presented by publicity that more likely happens in
case of advertising. For example, when a new product is launched by the distinguished personalities
like film star, eminent artist, or cricketer in a grand function, the product becomes popular within no
time.

SALES PROMOTION
Concept and Definition of Sales Promotion
The most important tool used in promotion is sales promotion. Most consumers relate ideas of
marketing to the use of sales promotion techniques. Sales promotion is the process of persuading a
potential customer to buy the product. Sales promotion is designed to be used as a short-term tactic to
boost sales – it is rarely suitable as a method of building long-term customer loyalty.
1. According to American Marketing Association, “Sales promotion in a specific sense includes
marketing activities other than personal selling, advertising and publicity that stimulate consumer
purchasing and dealer effectiveness, such as displays, shows and expositions, demonstrations and
various non-recurring selling efforts not in the ordinary situation.”
2. According to A.H.R. Delens, “Sales promotion means any steps that are taken for the purpose of
obtaining or increasing sales.”
3. According to Kitchen, Philip J., (1999), “Sales promotion can be defined as short-term incentives to
encourage purchase of a good or service”.
The above definitions reveal that sales promotion is a marketing device to stimulate demand
for a product in ordinary situation through short term incentives
Objectives of sales promotion
Sales promotion secures the following objectives:
1. Bridge between advertising and personal selling. Sales promotion consists of those activities
other than personal selling, advertising and publicity. It serves as a bridge between personal selling
and advertising.
2. Introduction of new products. Sales promotional devices help in introducing new products in the
market. They induce buyers to purchase a new product. Free samples are distributed or money or
merchandise allowance is offered to the dealers to stock and sell the new product.
3. Attracting new customers. Sales promotion aims at wooing new customers. Sales promotional
devices at consumer’s level include Coupons, product samples, giving demonstration about the
product, organizing contests, refund offers, offering free trials etc. These stimulate customers to make
purchase promptly on the spot.
4. Inducing present customers to buy. Sales promotion induces present customers to buy more of
the product. Sales promotion methods work faster than advertisement. It enables the consumer to
know more about the product, its ingredients and uses.
5. Increasing sales during off season. Some products are seasonal in nature. After the season is
over, they are not demanded any more. Sales promotion is used to retain customer’s interest in the
product during off-season. Short term incentives offered to the buyers stimulate sales.
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6. Encouraging business buyers. Wholesalers and retailers purchase goods for resale. Promotional
activities are undertaken to attract retailers and wholesalers to stock the products more. Display and
advertising allowances are granted to dealers to compensate them for the space given for the display
of manufactured products. Premiums are offered for purchasing above a particular level.
7. Improving the public image of the firm. Huge amounts are now being spent on determining
appeals for arresting the attention of the prospects towards the product. Consumer’s dissatisfaction
about a particular brand can be removed by aggressive sales promotion programmes. Sales
promotional devices make products popular among customers. Ultimately, they enhance the public
image of the firm.

Types of Sales Promotion

Sales promotions can broadly be classified into three categories depending on the initiator and the
target of the promotion.
I. Consumer Sales Promotions
(premiums, gifts, prizes, competitions, etc.),
II. Trade Sales Promotions
(Special terms, point-of-sale materials, etc.),
III. Sales Force Promotion.
I. Consumer Sales Promotions (premiums, gifts, prizes, competitions etc.)
Sales promotion aimed at consumers is called ‘Consumer sales promotion‘. It aims to stimulate
consumers. The main consumer promotion tools include samples, coupons, demonstration, contests,
cash refund offer, premium, etc.
The tools for sales promotions are as follows:
1. Samples. Samples are one of the most important tools of sales promotion. Samples are defined as
offers to consumers of a small amount of a product for trial. Free samples are given to consumers to
generate their interest in the product. Samples help consumers verify the quality of the product. For
example sample for new sweets of Suvam Sweets Corner, biscuits of Hulas Co.,
Samples are delivered at the doors of consumers or sent by postal mail or given to customers
in the retail store itself. Sometimes, samples are attached to another product. For example, samples
given by Lux International.
2. Coupons. A coupon is a certificate that fetches buyers a saving when they purchase a specified
product. Coupons are generally issued along with the product. They entitle the holders either a
specified saving on a product or a cash refund, As, coupon for purchase of Dhoni soap, Bike coupon.
Coupons are designed to:
 introduce a new product
 sell products in large quantity and
 encourage frequent purchases.
3. Demonstration. Demonstration is required when products are complex and of a technical nature.
Customers are educated as to how to make proper use of the product. Demonstration of products
induces customers to buy and use in convenient way. Demonstrations are provided to the consumers
free of cost.
4. Contests. Contests are the promotion events that give consumers the chance to win something,
such as cash, trips or goods. Contests are conducted to attract new customers. The buyer purchases the
product and submits the evidence of purchase with entry form for contest. Entry forms are duly filled
by the buyers. A panel of judges selects the best and prizes are given to them, As- contest offered by
Honda company for car.
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5. Cash refund offer. Cash refund offers are rebates allowed from the price of the product. It is an
offer to refund a part of the purchase price in % or any other way of a product to the consumers who
send a proof of purchase to the manufacturer.
6. Premium. Premium refers to goods offered either free or at low cost as an incentive to buy a
product. A premium may be inside the package, outside it or received through mail. The reusable
package itself serves as a premium. As, Premium offered for consumer goods such as soap,
toothpaste, etc. Premium may be of several kinds- direct premium, reusable container free in mail
premium, a self liquidating premium, trading stamps, etc.
7. ‘Price off’ offer. Goods are sold at reduced prices during slump season. Reduction in prices
stimulates sale of goods, As for example reduction of price in Dashain season.
8. Buy back allowances. Allowances are granted to buyers on the basis of their previous purchases.
In other words, buy back allowances are given for new purchases, based on the quantity of goods
bought previously. As for example, Buddha airlines offer.
II. Dealer Sales Promotion
The other name for dealer promotion is trade promotion. Manufacturers use a number of techniques to
secure the co-operation of wholesalers, retailers or the middlemen. These activities, which increase
the interest and enthusiasm of dealers and distributors, are called dealer or distributor sales promotion.
They are the middlemen who are important persons for the fast movements of products. Hence this
must be offered with some incentive.
Following are the dealer sales promotion devices:
1. Buying allowance. It is an offer of money off or temporary reduction in price to dealers for
purchasing in stipulated period of time. It encourages the dealers to buy a quantity that they will no t
buy in ordinary time. This buying allowance gives the dealers immediate profit, and price redemption,
as A wet grinder producer will give one grinder free if one purchases five wet grinders at a time.
2. Merchandise allowance. An advertising allowance is given to the dealers for advertising the
features of the manufacturer’s product. A display allowance is given to them for arranging special
displays of the product. After verifying the promotional work of the dealer, the manufacturers will
give a certain amount of money for promotional activities. They hope that additional efforts will be
taken to increase the sales at retail level.
3. Price deals. Apart from the regular discount, special discounts are also allowed to the dealers for a
specified quantity of purchase. This special discount is over and above the regular discount. For
instance, a regular discount of Rs. 10 per case is allowed; and if the dealer purchases 100 cases at a
time, he will be given a discount of Rs. 12 per case, i.e., Rs. 200 extra for the purchase of 100 cases.
4. Push money or premium. Manufacturers may offer push money. It is a payment in cash or gifts
given to dealers or to their sales force to push the manufacturer’s product. To push his brand, the
manufacturer will offer free specialty items that carry company’s name, such as pens, pencils,
calendars, match boxes, memo pads and yard sticks etc. This is a device for aggressive selling.
5. Co-operative advertising. Dealers spend money in advertising manufacturer’s product with the
consent of the manufacturers. The dealer can claim an allowance by giving the proof of the
advertisement. This is an indirect advertising for the manufacturer. It will increase the sales of the
manufacturer’s product. But it is a burden on the manufacturer’s budget.
6. Dealer sales contests. This is an indirect way of boosting the sales. This type of contest is
conducted at the level of retailers and wholesalers. This is in the form of window display, store
display, sales (volume) etc. Prize is awarded to the outstanding achievements. This method is aimed at
stimulating and motivating distributors, dealers, sales-staff etc.
7. Dealer’s gift. Manufacturers give attractive and useful articles to dealers against their order. The
gift may be transistor, radio, television set, clock, watch, bike, car etc. Some manufacturers offer free
 15

holidays family tours to dealers who place more orders. LG Co., arranges for free holidays tours to
those who sell the maximum TV in a year.
8. Point-of-purchase. Point-of-purchase is also known as dealer-aids, dealer displays, and dealer
hopes etc. The competition among the retailers or traders has encouraged point-of-purchase
advertising, which is a significant method for sales promotion. For instance, floor displays, stands,
overhead signs, wall signs, posters etc., are examples of point-of-purchase materials. Again, it may be
exterior or interior items. Exterior items like banners, displays are utilized by firms like service
station. As for example, display of product in Dharan exhibition.
III. Sales Force Promotion
As dealer and consumer promotion, the sales force promotion also is a necessary one. The activities of
sales force must be induced. In the channel of distribution, the role of salesman is very important. The
idea of sales force promotion is to make the salesman’s effort more effective.
The tools for sales force promotions are:
1. Bonus to sales force. The manufacturer sets a target of sales for a year. If the sales force sell the
products above the targeted sales, bonus is offered to them. This is an encouragement incentive given
to the sales people to sell more products—to cross the quota or targeted sales.
2. Sales force contests. To increase the interest and efforts of sales by sales force over a specified
time, these contests are announced. The prizes are given to the salesman who secures the maximum
sales in sales contests. Thus it stimulates the salesmen to sell more products.
3. Salesmen meetings and conferences. The idea behind these is to educate, inspire and reward
salesmen. Encouragement is given to them during the discussion. New selling techniques are
described to them and discussed in the conference.

PERSONAL SELLING
Meaning and Definition of Personal Selling
Personal selling is one part of a company’s promotion mix, along with advertising, sales promotion,
and public relations. Personal selling is the process of communicating with a potential buyer (or
buyers) face-to-face with the purpose of selling a product or service. This is very old and popular
technique. In fact, most of history’s successful entrepreneurs have been skilled salespeople, able to
represent and promote their companies and products in the marketplace.
Personal selling can be defined as an oral presentation in conversation with one or more
prospective customers for making sales. In personal selling, a salesman can pinpoint the prospect and
actual demonstration of the product can be made through two –way communication. Personal selling
has a permanent place in promotion and distribution. Personal selling searches for customers offers
for sale, create confidences and execute sales through different activities.
1. According to W. J. Stanton, “Personal selling consists of individual, personal communication, in
contrast to the mass impersonal communication of advertising, sales promotion, and other
promotional tools”.
2. According to Philip Kotler, “Personal selling is a broader concept and involves oral presentation in
a conversation with one or more prospective purchasers for the purpose of making sales”.

Process of personal selling

There are many steps involved in the process of personal selling: prospecting, pre-approach,
approach, sales presentation, handling objectives, and follow up.
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1. Pre-sale preparation. Pre-sale preparation is the most important and the most neglected step in
personal selling process. In this step you select right person for marketing and selling your product,
you give him proper training and motivate him to achieve target successfully. Salespersons must be
fully familiar and aware with the products which he is going to sell. It is the responsibility of
company, organization, firm etc. to tell new salesman about his company history, products, earlier
projects, success and also, he must know about his competitor, his Products, services and challenges
from his competitors so that he can handle all this successfully
2. Prospecting. The second step of the personal selling process is called ‘prospecting’. Prospecting
refers to locating potential customers. There are many sources from which potential customers can
be found: observation, social contacts, trade shows, commercially-available databases,
commercially-available mail list and cold calling.
3. Pre-approach. The next step in the personal selling process is called the ‘pre-approach’. The pre-
approach involves preparation for the sales presentation. This preparation involves research about
the potential customers, such as market research. Research is useful in planning the right sales
presentation. During the pre-approach the salesperson may also plan and practice their sales
presentation.
For example, if your company is selling software for school then try to approach principal or
manager of the school and explain them about your product and how it will help their school if they
are convinced, they will buy your product because they have purchasing power.
4. The approach. The next step in the personal selling process is called the ‘approach’. The approach
refers to the initial contact between the salesperson and the prospective customer. During this stage
the sales person takes a few minutes for “small talk” and get to know the potential customer. The
goal of the approach is to determine the specific needs and wants of the individual customer, as well
as allowing the potential customer to relax and open up.
5. Sales presentation. The next step in the personal selling process is called the ‘sales presentation’.
The sales presentation involves the salesperson presenting the product or service, describing its
qualities and possibly demonstrating features of the product. Ideally the sales presentation will be
individualized to match the needs and desires of the potential customer.
6. Handling objectives. In some cases, after receiving the sales presentation, the potential customer
will have some questions or concerns. In order to secure a sale, the salesperson must address these
questions or concerns; this step is referred to as ‘handling objectives.’
7. Closing the sale. The next step in the personal selling process is referred to as ‘closing the sale’.
‘Closing the sale’ refers to finalizing the sale and persuading the potential customer to make the
purchase. During the ‘closing the sale’ step, prices and payment options may be negotiated.
8. Follow up. The final step in the personal selling process is referred to as the ‘follow up.’ The
follow up involves the salesperson contacting the customer after the sale to ensure that the customer
is satisfied. If the customer has any existing issues with the product, the salesperson will address
them. A successful follow up stage of personal selling can be very effective in ensuring repeat sales,
evaluating the effectiveness of the salesperson, and obtaining additional referrals from the satisfied
customer.
Importance of Personal Selling
Personal selling is an important element of promotion mix and an effective promotional tool. The
importance of personal selling can be shown briefly below:
1 Flexible message. Personal selling is important as a flexible message. It involves individual and
personal communication as compared to the mass and impersonal communication of advertising and
sales promotion. Therefore, personal selling is most flexible in operation. Trader can observe the
 17

customer’s reaction to a particular sales approach and thus makes necessary adjustments right on the
spot. Face- to –face contacts with customers is the most effective means of communication.
2. Minimum wastage. Personal selling helps in minimum wastage of the goods. In personal selling,
a salesman can select the target market and concentrate on the customers. He need not communicate
with the people. Therefore, personal selling involves minimum wastage of effort.
2. Effective sales. Personal selling helps in the effective sales of products. Personal selling in most
cases leads to an actual sale. A salesman can find potential buyers, demonstrate the product,
explain its operation, and convince customers to buy it or install it at the customer’s place and
provide after sale service. Therefore, personal selling does the entire job of selling. It is a
complete promotional technique of keeping customers satisfied.
3. Immediate feedback. Personal selling helps in the immediate feedback of the products in the
market. It involves a two-way flow of communication between the buyer and the seller. It is a
useful method of understanding the needs and behavior of customers. It provides knowledge
about the tastes, habits, and attitudes of the customers.
4. Complements to advertising. Personal selling also acts as a complement to advertising. In most
situations, there is a need for explaining the quality uses and price of the product. Advertising
attracts customers but their doubts and questions about the product are answered by salesmen. In
this way, personal selling supports advertising. Salesmen educate the consumers about new
products and about new uses of existing products.
5. Educates consumers. Personal selling helps to educate the consumers about the products.
Salesmanship is not simply a tool of convincing people to buy certain products. It assists
customers in satisfying their wants. A salesman provides information, education, and guidance to
customers. He handles their complaints and assists them in getting value for their money. It is
important to educate the consumers about the product.
6. Employment opportunity. Personal selling also creates employment opportunity to the people.
It helps to increase aggregate sales and production in the country thereby increasing employment
opportunities. They help to maintain equilibrium between demand and supply.

Types of Salespersons
In business and industry, the following types of salespersons are widely used:
1. Manufacturers salesman. A manufacturer’s salesman is that type of salesman whose job is to sell
products either directly to the consumers or to the wholesale or retailers. He may be a “pioneer
salesman”, merchandising salesman or a ‘dealer servicing salesman’. A manufacturers salesman is
engaged in creating and cultivating outlets for a new product.
2. Pioneer or missionary salesman. Pioneer salesman is also known as a creative salesman. They are
employed by manufacturers and do the work of missionary nature. They create demand for the
products. They usually develop goodwill. They call on distributors, wholesalers, retailers, professional
customers, in order to promote the products.
3. Merchandising salesman. Merchandising salesman is the salesman who gives suggestions on
display, store- layout, service layout, service facility, etc. They arrange wide publicity and conduct
demonstration for dealer salesmen by working along with them. They are largely involved in drugs,
medicines, grocery, etc.
4. Dealer servicing salesmen. Dealer salesman is that salesman who calls on retailers in their territory
and visits them often. They bring samples of new products, take orders and organize window display.
5. Wholesaler’s salesmen. The wholesaler’s salesman is the salesman who calls on retail dealers at
regular intervals to book their orders. He informs the retailers about the various products offered by
 18

the wholesaler, helps them in the selection of articles and advises the retailers in involving effective
selling techniques. The wholesaler’s salesman may be the outdoor or indoor salesman.
6. Sales engineer. Sales engineer are that salesman who deals in high-value goods like computers,
automobiles, refrigerators, washing machines, and television set. They are known as specialty
salesman. They help in the installation of the products like computer or plant and machinery at the
customer's place.
7. Service salesmen. Service salesmen are appointed by the institutions providing intangible/ individual
services like banking and insurance companies. These salesmen can meet the public to convince them
about the need of saving for better future. Their job requires greater persuasion as compared to the job
of salesmen dealing in tangible products.

Qualities of a Good Salesperson

1. Personality. A salesman should have a good personality. The personality includes a way of
speaking, voice, posture, habits, etc. A pleasing and charming personality always creates a good
impression on the prospects. A salesman should possess good health because it is the key to his
efficiency. His tone of speaking should be natural so as to create receptivity among the listeners.
2. Mental qualities. An effective salesman must possess certain mental qualities like imagination,
foresightedness, presence of mind, strong memory power, and initiative. A good salesman must have
the power of imagination so that he can enter into the shoes of the potential customer to know what he
wants and how he wants to be treated. These mental qualities will help a salesman in winning
permanent and regular customers.
3. Sociability. A salesman should be social and have the ability to mix with people. He should be able
to interact with all types of people. He should be honest, sincere, dependable and cooperative. He
should have the patience to listen to the customers and remove their objections. He should be polite
and humble in talking to the customer. He should have the quality of adjusting the customers of
different nature. He should not be shy among the people.
4. Vocational skills. A salesman should have the good vocational skill to deal with the customers.
Salesmanship is a highly skilled vocation. It requires certain training and a specific bent of mind. He
should have ambitions and enthusiasm to become a good salesman. A good salesman should know the
features, benefits and other particulars of the product which is to be sold.
 19

5. Communication ability. A salesman should have a good communication ability. He should

communicate with the people in a good manner. Communication skill is an asset for the salesman. He
should be able to speak freely, clearly and in a well-pitched voice.
6. Patience. A salesman should have the ability of patience. He should not get provoked even under
worst circumstances. He should have sufficient patience to listen to customers and clear their doubts.
7. Determination. The salesperson must have a sense of determination to secure the customer. He
should not lose confidence and give up the customer so easily. It is important for him to determine
and convince the customers about the products.
8. Dependability. Dependability is the must needed for a salesman. The salesman can win permanent
customers if he is honest, sincere and dependable. He should be able to win the confidence of the
customers if he is to succeed in his vocation. So, dependability is must needed for a salesman to
develop his sales career.

Types of Personal Selling

1. Retail selling. Retail selling the product the consumers through retail store or door to door visit .in
door sales persons work at the store and they deal with the customers visiting the stores and outdoor
sales personal visit the potential customers in their homes or offices and persuade them to buy the
product.
2. Trade selling. It involves selling the product to the retailers and wholesalers trade sales personal
made regular contact to the wholesaler and retailers and received bulk order from them, trade sales
personal work either for wholesaler or manufactures.
3. Missionary selling. In missionary selling missionary sales personal create demand for the product
they do not directly sales the product. They visit retail stores and encourage them to place orders
from the dealers and wholesalers they work for manufactures.
4. Industrial selling. It involves selling the capital item like equipment, machineries to the industrial
users industrial sales personal are usually very well educated experience and train people they
provides technical information and assistances.

PUBLIC RELATION
Concept of Public Relation
Public relations are the management functions that identifies, establishes and maintains mutually
beneficial relationships between an organization and the various publics on whom its success or
failure depend.
Companies cannot survive in isolation they need to have a constant interaction with
customers, employees and different stakeholders. This servicing of relation is done by the public
relation office. The major function of the public relation office is to handle press releases, support
product publicity, create and maintain the corporate image, handle matters with lawmakers, guide
management with respect to public issues.
1 According to W. J. Stanton, “Public Relation is a management tool designed to favorably influence
attitudes towards an organization, its products, and its policies.”
2 According to British Council of the Institute of Public Relations, “PR is the deliberate,
planned and sustained effort to establish and maintain mutual understanding between and
organization and its publics.”
Companies are looking at ways to converge with functions of marketing and public relation in
marketing public relation. The direct responsibility of Marketing Public Relation (MPR) is to support
corporate and product branding activities.
 20

MPR is an efficient tool in building awareness by generating stories in media. Once the story
is in circulation MPR can establish credibility and create a sense of enigma among sales people as
well as dealers to boost enthusiasm. MPR is much more cost effective tool than other promotional
activities.
Tools of Public relations
In order to build a relationship with the target audience and maintain it on a high level, PR specialists
use a variety of tools and techniques. Some of the most common ones include:
1) Attendance at public events. In order to attract public attention and keep it engaged with a
particular organisation or an individual, PR specialists take an advantage of every public event
and the opportunity to speak publicly. This enables them to directly reach the public attending the
event and indirectly, a much larger audience.
2) Events/ Functions. Public relations experts organize special events, gatherings, parties, to target
their customers and promote their organization and its products among them. People from media
are also invited for coverage.
3) Press releases. Information that is communicated as a part of the regular TV or/and radio
programme, newspapers, magazines and other types of mainstream media achieves a much bigger
impact than advertisements. This is due to the fact that most people consider such information
more trustworthy and meaningful than paid adds. Press release is therefore one of the oldest and
most effective PR tools.
4) Newsletters. Sending newsletters – relevant information about the organisation or/and its
products/services - directly to the target audience is also a common method to create and maintain
a strong relationship with the public. Newsletters offering promotional products are also a
common marketing strategy but PR specialists use it to share news and general information that
may be of interest to the target audience rather than merely promoting products/services.
5) Blogging. To reach the online audience, PR specialists use the digital forms of press releases and
newsletters but they also use a variety of other tools such as blogging and recently, micro
blogging. It allows them to create and maintain a relationship with the target audience as well as
establish a two-way communication.
6) Social media marketing. Like its name suggests, it is used primarily by the marketing industry.
Social media networks, however, are also utilised by a growing number of PR specialists to
establish a direct communication with the public, consumers, investors and other target groups.
7) Charity/ Corporate social responsibility. Public relations experts engage in various social and
charitable activities to publicize their organization and its products. Organizations distribute
products among target audiences to create a goodwill of their organization.
8) Employee interactions on a regular basis. It is really essential for employers to stay in constant
touch with employees and keep them abreast with the latest developments and happenings within
the organization. Management or public relations experts should circulate latest events, new
product launches among employees through emails, circulars, notices or simply communicating
with them.

Selection of Promotion mix/ Factors Influencing Promotion Mix

Main factors influencing promotion mix has been briefly discussed as under:
1. Type of product. Type of product plays an important role in deciding on promotion mix. Product
can be categorized in terms of branded products, non-branded products, necessity products, luxury
products, new products, etc. All these types of products need different promotional tools. For
example, advertising is suitable for the branded and popular products. Personal selling may be fit for
 21

non-branded products. Advertising, personal selling, sales promotion and publicity – all four tools –
are used for a newly launched product to get a rapid consumer acceptance.
2. Use of product. Product may be industrial product, consumable and necessity product, or may be
luxurious product that affects selection of promotion tools and media. For example, advertising and
sales promotion techniques are widely used for consumer goods while personal selling is used for
industrial goods.
3. Complexity of product. Product complexity affects selection of promotional tools. Personal
selling is more effective for complex, technical, risky, and newly developed products as they need
personal explanation and observation. On the other end, advertising is more suitable for simple and
easy-handled products.
4. Purchase Quantity and Frequency. Company should also consider purchase frequency and
purchase quantity while deciding on promotion mix. Generally, for frequently purchase product,
advertising is used, and for infrequently purchase product, personal selling and sales promotion are
preferred. Personal selling and advertising are used for heavy users and light users respectively.
5. Fund available for market promotion. Financial capacity of company is a vital factor affecting
promotion mix. Advertising through television, radio, newspapers and magazines is too costly to bear
by financially poor companies while personal selling and sales promotion are comparatively cheaper
tools. Even, the company may opt for publicity by highlighting certain commercially significant
events.
6. Type of market. Type of market or consumer characteristics determines the form of promotion
mix. Education, location, income, personality characteristics, knowledge, bargaining capacity,
profession, age, sex, etc., are the important factors that affect company’s promotion strategy.
7. Size of market. Naturally, in case of a limited market, personal selling is more effective. When
market is wide with a large number of buyers, advertising is preferable. Place is also an important
issue. Type of message, language of message, type of sales promotion tools, etc., depend on
geographical areas.
8. Stage of Product Life Cycle. Product passes through four stages of its life cycle. Each stage poses
different threats and opportunities. Each stage needs separate marketing strategies. Each of the
promotional tools has got different degree of suitability with stages of product life cycle.
It can be concluded that, in normal situations:
1. Advertising, personal selling, and, even, sales promotion are used during the introduction stage.
However, advertising is given more priority,
2. More intensive advertising and sales promotional techniques are used during the second stage,
3. More rigorous advertising along with personal selling are followed in the third stage, and
4. Company prefers to curb the expenses in forth stage, and promotional efforts are reduced.
9. Level of competition. Promotional efforts are designed according to type and intensity of
competition. All promotional tools are aimed at protecting company’s interest against competition.
Level of promotional efforts and selection of promotional tools depend on level of competition.
10. Promotional objectives. It is the prime factor affecting promotional mix. Different objectives
can be achieved by using different tools of promotional mix. If company’s objective is to inform a
large number of buyers, advertising is advisable. If company wants to convince limited consumers, it
may go for personal selling. Even, when company wants to influence buyers during specific season or
occasion, the sales promotion can be used. Some companies use publicity to create or improve brand
image and goodwill in the market.
11. Other factors. Over and above these factors, there are certain minor factors that affect promotion
mix. These factors may include:
i. Price of Product,
ii. Type of Marketing Channel,
 22

iii. Degree of Product Differentiation,

iv. Desire for Market Penetration, etc.

INTEGRATED MARKETING COMMUNICATION (IMC)

Concept of Integrated Marketing Communication (IMC)

It is essential for organizations to promote their brands well among the end-users not only to outshine
competitors but also survive in the long run. Brand promotion increases awareness of products and
services and eventually increases their sales, yielding high profits and revenue for the organization. In
this concern, Integrated Marketing Communications (IMC) blends various promotional tools and
communications/ marketing/ advertising services and techniques to maximize profit.
Integrated marketing communication refers to integrating all the methods of brand promotion
to promote a particular product or service among target customers. In integrated marketing
communication, all aspects of marketing communication work together for increased sales and
maximum cost effectiveness.
1. According to Duncan, “ IMC is the process for planning , executing and monitoring the brand
message that create customer relationships”.
2. According to Clow & Baack, 2007, P.8, “IMC is the coordination and integration of all marketing
communication tools, avenues and sources within the company into a seamless program that
maximizes the impact on consumers and other end users at a minimal cost”.
3. According to American Marketing Association, “A planning process designed to assure that all brand
contacts received by a customer or prospect for a product, service, or organization are relevant to that
person and consistent over time”.
Thus, it involves coordinating the various promotional elements and other marketing
activities that communicate with the firm’s customers. The basic tools used to accomplish an
organisation’s communication objectives are referred to as the promotional mix. The promotional mix
has traditionally involves:
Advertising Sales Promotion
Public Relations Personal Selling

Components of Integrated Marketing Communication

1. Foundation
As the name suggests, foundation stage involves detailed analysis of both the product as well as
target market. It is essential for marketers to understand the brand, its offerings and end-users.
You need to know the needs, attitudes and expectations of the target customers. Keep a close
watch on competitor’s activities.
2. Corporate Culture
The features of products and services ought to be in line with the work culture of the organization.
Every organization has a vision and it’s important for the marketers to keep in mind the same
before designing products and services. Let us understand it with the help of an example.
Organization A‘s vision is to promote green and clean world. Naturally, its products need to
be eco friendly and biodegradable, in lines with the vision of the organization.
3. Brand Focus
Brand Focus represents the corporate identity of the brand.
4. Consumer Experience
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Marketers need to focus on consumer experience which refers to what the customers feel about
the product. A consumer is likely to pick up a product which has good packaging and looks
attractive. Products need to meet and exceed customer expectations.
5. Communication Tools
Communication tools include various modes of promoting a particular brand such as advertising,
direct selling, promoting through social media such as facebook, twitter, orkut and so on.
6. Promotional Tools
Brands are promoted through various promotional tools such as trade promotions, personal selling
and so on. Organizations need to strengthen their relationship with customers and external clients.
7. Integration Tools
Organizations need to keep a regular track on customer feedbacks and reviews. You need to have
specific software like customer relationship management (CRM) which helps in measuring the
effectiveness of various integrated marketing communications tools.
Significance of Integrated Marketing Communication
Integrated marketing communications is an approach to planning communications that gives your
small business the potential to get better results from your campaigns and reduce marketing costs. By
integrating tools such as advertising, direct mail, social media, telemarketing and sales promotion, you
provide clarity, consistency and maximum communications impact. IMC is not a new concept, but it’s
more important than ever, as there are now more marketing channels than ever before. Back in the
50’s, marketing campaigns relied heavily on print, radio, and television.
IMC provides greater:
 Brand differentiation.
 Accountability within a firm.
 Trust among consumers.
 Levels of effectiveness in cutting through message clutter than single strategies.
Following are the roles and importance of IMC:
1. Results
In the traditional approach to marketing communications, businesses and their agencies plan separate
campaigns for advertising, press relations, direct marketing and sales promotions. Integrated
campaigns use the same communication tools to reinforce each other and improve marketing
effectiveness. In an integrated campaign, you can use advertising to raise awareness of a product and
generate leads for the sales force. By communicating the same information in press releases and
feature articles, you reinforce the messages in the advertising. You can then use direct mail or email to
follow up inquiries from the advertising or press campaigns and provide prospects with more
information. To help convert those prospects to customers, you can use telemarketing to sell directly
or make appointments for the sales team.
2. Creative Consistency
In an integrated campaign, the different tools feature the same creative treatment. By repeating the
headlines, key phrases and images in each communication, you ensure that prospects and customers
receive consistent messages each time they see one of the elements of the campaign. Creative
consistency helps reinforce the basic campaign themes by increasing the number of times prospects
see or hear the same message.
3. Cost Savings
Creative consistency in your integrated campaigns can also save you money. By using the same
images and adapting the same copy for different media, you reduce copy-writing, design and
photography costs. If you work with external communications suppliers, you may be able to reduce
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agency fees by working with a single firm that offers integrated communications services, rather than
separate specialist agencies.
4. Customer Preference
An integrated campaign helps you provide customers with information in the format they prefer.
Consumers and business customers can specify if they want to receive product information via email,
direct mail, text message or telephone. Integration ensures they receive the same information in all
communications. You can also meet the needs of customers who search the Internet for product
information by integrating your website design and content with other communications.
5. Direct Marketing
The communication establishes through a direct channel without using any intermediaries is referred
to as direct marketing. Direct marketing can be used to deliver message or service. Direct marketing
has shown tremendous growth in recent years. The internet has played major part in this growth story.
Direct marketing saves time, makes an experience personal and pleasant. Direct marketing reduces
cost for companies. Face to face selling, direct mail, catalog marketing, telemarketing, TV and kiosks
are media for direct marketing.
Advertisement, Promotional activity, Public relation and direct marketing play an essential role in
helping companies reaches their marketing goals.

Questions
1. Define promotion.
2. Discuss objectives of promotion.
3. What do you mean by Promotion Mix? Discuss its various components.
4. What do you mean Advertising?
5. State the features of Advertising.
6. Mention the types of Advertising.
7. What is media? Discuss the types of Media.
8. Give the concept of Web advertising in marketing communication
9. What is publicity?
10. Write about the objectives of publicity.
11. Describe the forms of publicity.
12. What is Sales Promotion? What is its different type? Discuss.
13. What is the concept of Personal selling? Explain the types of Personal selling
14. State the processes of personal selling.
15. Explain the types of personal selling.
16. What do you mean by Public relations?
17. Describe the tools of public relations.
18. Discuss the factors for Selecting Promotion mix.
19. What do you understand by Integrated marketing communication?
20. Explain significance of Integrated marketing communication.
21. Discuss the Components of Integrated Marketing Communication.
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