PROMOTION

MODULE 5
TOPICS COVERED
• MEANING OF PROMOTION
• IMC
• PROMOTION MIX OR COMMUNICATION MIX
• AIDA MODEL AND L AND S MODEL
• DAGMAR APPROACH
• ESSENTIALS FOR MESSAGE
• NOISE, ATMOSPHERICS AND EVENT
MANAGEMENT
• Description of all Promotional Tools
PROMOTION
• Promotion is that marketing
communication activity that attempts to
inform and remind individuals and
persuade them to accept, resell,
recommend or use a product, service, idea
or institution.
• Promotional communication has the triple
purpose to perform. To inform, to
persuade and to remind.
Integrated Marketing
Communication (IMC)
• Integrated Marketing Communications (IMC),
according to The American Marketing Association
, is “ a concept of marketing communication’s
planning that recognises the added value of a
comprehensive plan that evaluates the strategic
roles of a variety of communication disciplines –
for example, general advertising, direct response,
sales promotion, public relations and publicity,
word of mouth , event management, direct
marketing- and combines these disciplines to
provide clarity, consistency and maximum
communications effect.”
• Integrated marketing communication can be
defined as a holistic approach to promote buying
and selling in the digital economy. This concept
includes many online and offline marketing
channels. Online marketing channels include any
e-marketing campaigns or programs, from pay-
per-click, affiliate, email, banner to latest web
related channels , blog, and Internet TV. Offline
marketing channels are traditional print
(newspaper, magazine), mail order, public
relations, industry analyst relations billboard,
radio, and television
• Integrated Marketing Communications is a simple concept.
It ensures that all forms of communications and messages
are carefully linked together.
• At its most basic level, Integrated Marketing
Communications, or IMC, as we'll call it, means integrating
all the promotional tools, so that they work together in
harmony.
• Promotion is one of the Ps in the marketing mix. Promotions
has its own mix of communications tools.
• All of these communications tools work better if they work
together in harmony rather than in isolation. Their sum is
greater than their parts - providing they speak consistently
with one voice all the time, every time.
• 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.
Reasons For The Growing
Importance of IMC
• From media advertising to multiple forms of communication
(including promotions, product placements, mailers...)
• From mass media to more specialized media, which are centered
around specific target audiences.
• From a manufacturer-dominated market to a retailer-dominated
market. The market control has transferred into the consumer's
hands.
• From general-focus advertising and marketing to data-based
marketing.
• From low agency accountability to greater agency accountability.
Agencies now play a larger role in advertising than ever before.
• From traditional compensation to performance-based
compensation. This encourages people to do better because they
are rewarded for the increase sales or benefits they cause to the
company.
• From limited Internet access to widespread Internet availability.
This means that people can not only have 24/7 access to what
they want, but that advertisers can also target potential buyers
just as much.
Disadvantages of IMC

• Some marketers resist IMC because

it requires changing accepted ways
of doing things, decrease emphasis
on advertising, puts an increased
focus on communications and
requires major changes within
advertising agencies.
 IMC PLANNING PROCESS
• Situation Analysis (Marketing Plan Review)
• SWOT Analysis (Analyze internal
capabilities and weaknesses in relation
with opportunities and threats)
• Analysis of Communication process
(establish goals, message, channels)
• Budget determination
• Develop IMC (using all tools)
• Implement IMC
• Monitor, measure and control IMC
Promotion Mix or
Communication Mix
The Marketing Communication Mix consists of
eight major tools:
• Advertising
• Personal Selling
• Sales Promotion
• Events and Experiences
• Public Relations and Publicity
• Direct Marketing
• Interactive Marketing
• Word of Mouth Marketing
MODEL- 1. AIDA
AIDA MODEL of Hierarchy of Consumer
Response or Four Stage Model
(developed in 1920’s)
2. Attention--- Cognitive Level
3. Interest--- Affective Level
4. Desire----- Affective Level
5. Action----- Connative Level
The model says attract attention, gain
interest, arouse desire and result in
action.
MODEL- 2. Levidge and
Steiner
Robert Levidge and Gary Steiner gave a
model variant of AIDA for marketing of
consumer durables, office and industrial
products or Six Stage Model of consumer
response
2. Knowledge– Cognitive Level
3. Awareness– Cognitive Level
4. Preference– Affective Level
5. Liking– Affective Level
6. Conviction– Connative Level
7. Purchase– Connative Level
DAGMAR
• DAGMAR was put forward by Russell H. Colley in
his book titled Defining Advertising Goals for
Measured Advertising Results in 1961 under the
sponsorship of Association of National
Advertisers. The term DAGMAR corresponds with
the abbreviation of the title .
• DAGMAR views advertising has to perform a
Communication task and not a Sales task,
therefore advertising goal should be
separate and specific, should be written, a
defined audience and a specific time period.
• In the DAGMAR approach, the communication
task is based on a specific model of the
communication process which is also referred to
as Hierarchy of Effects Model
Hierarchy of Effects Model
Controversies to DAGMAR

The first controversy centered around

the theme: What should be the
objective of advertising-
communication as propounded by
DAGMAR or it should be sales?
Others are DAGMAR Approach is less
practicable, Inhibits creative ideas,
use of hierarchy of effects model.
Message Essentials

• 1. Message Considerations: The

marketer has to penetrate through
the target audience’s perceptual veil
because everything that is said is not
grasped and retained in consumer’s
mind. Selective attention, distortion
and retention occurs everytime a
person is exposed to message.
• 2. Message Content: In deciding the right
content , the marketer has to choose
words and appeal, a theme , idea or any
unique proposition that will make the
message stand out in the noise created by
the competition in media.
Therefore, Right Words play a key role.
Appeal: Fear, Humor, Rational,
Emotion, Ethical appeals can be used.
• 3. Message Structure: This refers to the
body of the message. There are conclusion
drawing messages, one or to sided
arguments etc.
• 4. Message Format: creative part of the
message and includes decisions like
headlines, colour, text, visuals and styling.
• 5. Source of the Message: An excellent
message communicated by a weak man
would create no tremors and thus source
should be strong.
Noise, Atmospherics and Event
Management
• Noise: If we open a magazine, newspaper or
switch on a television there are so many
advertisements and not every advertisement is
noticed. This is noise in the media.
• Atmospherics: Packaged environment that
creates the buyers perception of the firm and its
products. Johnson and Johnson ‘s claen building
depicts the products are tender, caring and
healthy.
• Event Management: special events organised to
communicate message and getting undivided
attention.
 1. ADVETISEMENT
According to Institute of Practitioners in Advertising (IPA): "The
means of providing the most persuasive possible selling
message to the right prospects at the lowest possible cost".
Kotler and Armstrong provide an alternative definition:
"Advertising is any paid form of non-personal presentation and
promotion of ideas, goods and services through mass media
such as newspapers, magazines, television or radio by an
identified sponsor".

There are five main stages in a well-managed advertising campaign:

• Stage 1: Set Advertising Objectives
An advertising objective is a specific communication task to be
achieved with a specific target audience during a specified period of
time. Advertising objectives fall into three main categories:
(a) To inform - e.g. tell customers about a new product
(b) To persuade - e.g. encourage customers to switch to a different brand
(c) To remind - e.g. remind buyers where to find a product
Stage 2: Setting Advertising Budget:
b. Affordable or Arbitrary Allocation
c. Competitive Parity Method
d. Percentage of Sales Method
e. Objective and Task Method
 Stage 3: Determine the key Advertising Messages and Copy Testing
and Development
Spending a lot on advertising does not guarantee success.
Research suggests that the clarity of the advertising message is
often more important than the amount spent. The advertising
message must be carefully targeted to impact the target customer
audience. A successful advertising message should have the
following characteristics:
(a) Meaningful
(b) Distinctive
(c) Believable
Message essentials like right words and right appeal, message
structure, formatting ,styling and source of the message are
important
This is the stage where creative part comes into being. Mostly
companies outsource it to the Advertising Agencies
•
• Advertising Agencies: Advertising agencies do the creative
work.
Leading Advertising Agencies:
• Ogilvy and Mather
• DDB Needham
• Mudra
• Foote, Cone and Belding
• Ted Bates
• McCann Erickson
• Leo Burnett
• Grey Advertising
• Walter Thompson Company
• 4 Approaches in Copy Development:
• 1. David Ogilvy: Founder of famous Ogilvy and
Mather (O AND M). In his famous book
Confessions of an Advertising man, he gave 11
principles in 1964. The important amongst those
were that:
• Do not create dull copies
• Avoid clowning
• Celebrities should endorse
• Be honest
• Do not Imitate etc.
He was the staunch believer of Research
• 2. William Bernbach: founder of Doyle Dane
Bernbach now known as DDB Needham agency,
he demphasises research because it leads to ‘me
too’ brands. He avoided heavy repititions in his
copy.
• 3. Leo Burnett: Founder of Leo Burnett agency
was of the opinion to use common man in
advertising as opposed to David Ogilvy.
• 4. Rooser Reeves: founder of Ted Bates agency,
he propounded USP (Unique Selling Proposition)
concept. USP should be unique that someone has
never claimed it.
• Stage 4: Decide which Advertising Media to Use
There are a variety of advertising media from which to chose.
A campaign may use one or more of the media alternatives.
The key factors in choosing the right media include:
(a) Reach - what proportion of the target customers will be
exposed to the advertising?
(b) Frequency - how many times will the target customer be
exposed to the advertising message?
(c) Media Impact - where, if the target customer sees the
message - will it have most impact?
 Media Mix means choosing from variety of vehicles like
magazines, newspaper, audio visual, direct mail, radio etc.
 Stage 5: Evaluating and Measuring Advertising
Effectiveness: The evaluation of an advertising campaign
should focus on two key areas:
(1) The Communication Effects - is the intended message
being communicated effectively and to the intended
audience?
(2) The Sales Effects - has the campaign generated the
intended sales growth. This second area is much more
difficult to measure.
Testing Methods:
1. Recognition Tests
2. Recall Tests: Aided or Unaided
3. Psychological and Attitude Measurement Tests
2. SALES PROMOTION
• “An activity designed to boost the sales of a product or service. It
may include an advertising campaign, increased PR activity, a
free-sample campaign, offering free gifts or trading stamps,
arranging demonstrations or exhibitions, setting up competitions
with attractive prizes, temporary price reductions, door-to-door
calling, telemarketing, personal letters on other methods”. More
than any other element of the promotional mix, sales promotion is
about “action”.
• It is about stimulating customers to buy a product. It is not
designed to be informative – a role which advertising is much
better suited to.
• Sales promotion is commonly referred to as “Below the Line”
promotion.
Sales promotion can be directed at:
The ultimate consumer (a “pull strategy” encouraging purchase
also referred as Consumer Sales Promotion)
The distribution channel (a “push strategy” also known as Trade
Sales Promotion encouraging the channels to stock the product).
This is usually known as “selling into the trade”
Methods of Sales Promotion
1. Price promotions: Price promotions are also
commonly known as” price discounting”
These offer either (1) a discount to the normal
selling price of a product, or (2) more of the
product at the normal price.
2. Coupons: Coupons are another, very versatile,
way of offering a discount.
- On a pack to encourage repeat purchase
- A cut-out coupon
• The key objective with a coupon promotion is to
maximise the redemption rate – this is the
proportion of customers actually using the
coupon.
3. Gift with purchase: It is also known as a
“premium promotion” in that the customer gets
something in addition to the main purchase.
4. Competitions and prizes
5. Fairs and Trade Shows
6. Demonstrations
7. Trade in allowances
8. Money Refunds
9. Point of sales display
10.Sampling
11. Low interest financing
3. PERSONAL SELLING
• Personal selling is oral communication with
potential buyers of a product with the intention of
making a sale. The personal selling may focus
initially on developing a relationship with the
potential buyer, but will always ultimately end
with an attempt to "close the sale“
• According to American Marketing Association:
Personal selling is the personal or impersonal
process of assisting or persuading a prospective
customer to buy a product or service and to act
favourable upon an idea that has commercial
significance to the seller.
Personal Selling Process

• 1. Prospecting
• 2. Qualifying the Prospect
• 3. Approaching
• 4. Sales Presentation
• 5. Handling objections
• 6. Closing the Sales
• 7. Follow up
4. PUBLIC RELATIONS and
PUBLICITY
• Public Relations: Communication function that seeks to
build good relationships with an organisations publics
including consumers, stockholders, and legislators.
• Publicity: unpaid communication appearing in the mass
media about an organisation
• The advantages of publicity are low cost, and credibility
(particularly if the publicity is aired in between news stories
like on evening TV news casts). New technologies such as
weblogs, web cameras, web affiliates, and convergence
(phone-camera posting of pictures and videos to websites)
are changing the cost-structure. The disadvantages are lack
of control over how your releases will be used, and
frustration over the low percentage of releases that are
taken up by the media.
 But the publicist cannot wait around for the news to present opportunities.
They must also try to create their own news.
• Contest
• Art exhibitions
• Event sponsorship
• Arrange a speech or talk
• Make an analysis or prediction
• Conduct a poll or survey
• Issue a report
• Take a stand on a controversial subject
• Arrange for a testimonial
• Announce an appointment
• Invent then present an award
• Stage a debate
• Press kits
• Issue a commendation
• The following section lists numerous means by which you
can publicize events. Some of these ideas will be familiar
to you, while others will hopefully provide you with some
innovative and more creative ways of effectively
publicizing activities. 
Inexpensive Publicity Techniques 
• POSTERS: The essential purpose of a poster is the rapid
telling of a single message using a limited number of
elements. Posters are viewed more rapidly than are other
methods of advertisement; hence, their message must be
strong, simple, and brief.
• FLYERS: A smaller version of the poster is the flyer.
They are usually made on 8 ½” x 11 or 8 ½” x 14 paper.
An advantage is that they can be reproduced easily at
minimal cost. 
• TABLE Tents: Table tents should be made of a thick or
heavy grade of paper that shall stand firm. Table tents
can be placed in visible locations including the lounge,
lobby, dining hall, and on desk tops.
• CALENDAR: A large calendar of activities located in a
central location is a particularly effective technique.
• BALLOONS:You 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 door knobs, handed out
at the entrance of the building, or handed out in dining
hall lines. 
• BANNERS: A large extension of the poster, these can be
hung outside your residence hall or in your main lobby. A
bedsheet or old shower curtain will make a good size
banner.
• WORD OF Mouth: And of course, there is the time-honored
word-of-mouth perhaps the oldest, yet most effective way
to get the word out. Go door to door and personally inform
people of the activity; and remind them frequently, so that
they don’t forget.
5. Events and Experiences

• Sports
• Entertainment
• Festivals
• Arts
• Causes
• Company Museums
• Social campaigns
6. Direct Marketing

• Use of Direct channels to reach

consumers without taking help of
middlemen like:
• Direct Mail
• Telemarketing
• Catalog Marketing
• Websites
• Mobile devises
7. Word of Mouth Marketing
• Social networks have become an important force in both
B2C,B2B and C2C marketing.
• Buzz Marketing: generates excitement, creates publicity
and convey new brand related information.
• Viral Marketing: encourages consumer to pass along
company developed products, services or audios, video or
written information online. The information spreads like
Viral fever and is very quick.
• Blogs and Chat Rooms: regularly updated online journals or
diaries are also WOM technique.
• Shill Marketing or Stealth marketing: company paid people
talking good about the product in public places without
disclosing that they are paid.
8. Interactive Marketing
• The internet provides much greater interaction
and individualisation.
• Placing Ads and Promotion Online
• Voice mail
• Blogs
• Mailings
• Catalogs
• Fax mail
• Electronic shopping
• Websites