MarketingManagement

Unit12

Unit12

PromotionManagement:ManagingNonPersonal CommunicationChannels

Structure 12.1. Introduction 12.2. Integratedmarketingcommunication 12.3. Communicationdevelopmentprocess 12.4. Budgetallocationdecisionsinmarketingcommunications 12.5. Introductiontoadvertising 12.6. Fundamentalsofsalespromotion 12.7. Basicsofpublicrelations 12.8. Summary Terminalquestions AnswerstoSAQsandTQs

12.1 Introduction A good product with better distribution and affordable price will fail if its attributes are not communicated to target customer. Marketer should understand how shall company develop and channelizethecommunicationineffectiveway.Thecommunicationisdefinedas"Anyactbywhich one persongives to or receivesfrom other person information about that person's needs, desires, perceptions,knowledge,oraffectivestates.Communicationmaybeintentionalorunintentional,may involveconventionalor unconventional signals,may take linguisticor nonlinguisticforms,and may occur through spoken or other modes." The definition provides the general view of all types of communication. The definition can be interpreted in the marketing as follows marketing communicationistheprocessofprovidingtheinformationtotheconsumersaboutthemarketingmix either through personal channels (direct selling, direct marketing etc..)Or through non personal channels (advertising, sales promotion etc...). Bothpersonal channels and non personal channels constitutestheMarketingcommunicationmixorpromotionmix.

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Promotionmix:Thisisanassortmentofadvertising,salespromotion,publicrelation,Personalselling anddirectmarketing. AdvertisingAnypaidformofnonpersonalpresentationandpromotionofideas,goods,orservices byanidentifiedsponsor.Forexample:Printads,radio,television,billboard,brochuresand,signs,in storedisplays,posters,motionpictures,andbannerads, Personal selling The type of promotion mix that helps and persuades one or more prospects to purchaseagoodorserviceortoactonanyideathroughtheuseofanoralpresentation.Examples: Sales presentations, sales meetings, sales training and incentive programs for intermediary salespeople. SalespromotionIncentivesdesignedtostimulatethepurchaseorsaleofaproduct,usuallyinthe shortterm.Examples:Coupons,sweepstakes,contests,productsamples,rebates,tieins,andself liquidatingpremiums. PublicrelationsThisistheprocessofnonpaidnonpersonalstimulationofdemandforaproduct, service,orbusinessunitbyplantingsignificantnewsaboutitorafavorablepresentationofitinthe media.Examples:Newspaperandmagazinearticles/reports,TVsandradiopresentations,charitable contributions,speeches,issueadvertising,andseminars. Direct Marketing: The communication tool used to interact with the customers directly by using telephone,onlinemediumsandothertools.

LearningObjectives Afterstudyingthisunit,youwillbeableto 1. Explaintheimportanceofintegratedmarketingcommunication. 2. Describethestagesinvolvedindevelopingeffectivecommunication. 3. Analyzebudgetallocationdecisionsinmarketingcommunication. 4. Understandthefundamentalsofadvertisingandsalespromotion. 5. Discusstheroleofpublicrelation(PR)inmarketingcommunication.

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12.2.IntegratedMarketingCommunications(IMC) According to The American Marketing Association, Integrated Marketing communication is a planningprocessdesignedtoassurethatallbrandcontactsreceivedbyacustomerorprospectfora product,service,ororganizationarerelevanttothatpersonandconsistentovertime. ObjectiveofIntegratedMarketingCommunication(IMC): To plan, develop, execute and evaluate coordinated communications with organizations stakeholders. ReasonsforthegrowthofIntegratedMarketingCommunication(IMC) 1. Thegrowthofinnovativepromotionaltoolsandneedtointegratethem. 2. Specializedmediavehiclesfornichetargetcustomers. 3. Growthofretailerdominatedmarketandpassingofcontrolfrommanufacturertothecustomer. 4. Growthofdatabasemarketing. 5. Widergeographicalcoveragethroughinternet. 6. Higheraccountabilityandperformancelinkedcompensationschemes.

12.3. Communicationdevelopmentprocess

Preparingtargetcustomerprofile

Identifyingpromotionobjectives

Designingamessage

Selectingchannelsofcommunication

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Selectingthemessagesource

Targetcustomerfeedback

12.3.1Preparingtargetcustomerprofile:Effectivemarketingcommunicationstartswithidentifying thetargetcustomertowhomthecommunicationisdeveloped.Inthisstagecompanypreparestarget customerprofile.

Company:Exideindustries. Copy:Help,wheneverwhereveryourcarbatteryisintroublewewillbethere,justdialthebatmobile numberofyourcityandwewillberighttheirtobringyourcarbacktolife.Becausewelovecars. Targetcustomerprofile: Customercharacteristics Typeofcustomer Description Individual

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Income Mediaexposure

Uppermiddleclassandupperclass. Print ( English magazines, dailies and journals)

occupation Needoftheproduct

Salariedorbusinessclass. OEMofacar

12.3.2. Identifying promotion objectives: Target customer profile provides inputs about his/her readinesstopurchasetheproduct.Customermaybeinanyofthesixstagesofhierarchyofeffects. The six stages are awareness, knowledge, liking, preference, conviction and purchase. Every companylikestobringtheircustomertopurchasestagefromotherfivestages.Thereforeitcreate differentpromotionprogramatdifferentstage.Tomakeitclearer,Companyfirstcreatesawareness abouttheproduct,educatethemabouttheadvantages,inducethemtochoosethebrand,stimulates andmonitorthatcustomerpurchasestheproduct. a. Awareness: Marketer creates thenew range of products. Awareness level for theseproductsis very low. Intention of the advertisement is to create awareness about these new products. In the followingexampleofReebokplaydrytechnologygarments,itfocusestocreateawarenessamong thetargetaudience.Lookatthemessagecopyofprintadvertisement. Copy: Dravid does this simply by sporting his Reebok Play Dry apparel. These fabrics have been designed witha special moisture ventilation system that dries awayperspiration inaction.Working effectivelybypushingmoistureawayfromtheskintotheouterlayerofthefabricforevaporation.So ifyouwanttostaycoolallsummer,justdowhatthehottestplayersdo.WalkintothenearestReebok Store. b.Knowledge:Inthisstagetargetaudiencedonthavecompleteknowledgeoftheproduct.Marketer explainstheproductindetailanditsadvantagestothetargetcustomers.Followingadvertisementof ParryNeutraceuticalsexplainstheadvantagesofbetacarotenes.

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and vegetables. They're some of the biggest reasons whyfruits and veggiesare good for you. They help prevent the worst things that can happen to you cancer, heart disease, diabetes, arthritis, cataract and even ageing. The agerelated or 'degenerative'diseasesbeginwithrepeated damage to cells, which adds up over time. The biggest cause of damage to cells is a common process help called prevent

oxidation.Carotenoids

oxidation damage because they're some of nature's best antioxidants. But to get Company: ParryNeutraceuticals Copy: You know these are good for you, Naturalbetacaroteneandothercarotenoids like it, are the natural pigments found in orange, yellow, red and some green fruits enough natural beta carotene and other carotenoids, you need to eat 5 servings of fruits and 5 servings of vegetables every day. Or just one soft gel of Parry's Natural Beta Carotene. It is a mixture of natural carotenoids that comes from Dunaliella salina, one of nature's best sources of carotenoids

c.Liking:Promotionisusedtoconvertknowledgeableaudienceintolikeablecategory.Marketer uses celebrities to create interest in theproduct. For example, Reid and Taylor highlight their productqualityintheadvertisementbyusingAmitabhBachhanafilmactor. d.Preference:Creatingdifferentiationinthemarketplacesothatcustomeridentifiesitoverthe rival brands. Big bazaar advertisement with tag line is se sasta aur achcha kahin nahi or nobodysellscheaperandbetterisalluringthecustomerbytellingthemwhatdifferentiationthey canbring. e. Conviction: customer may have preference over the product but he/she still not able to decide.Inthissituation,marketerdevelopsthemessagesinsuchawaythatitprovidesplatform for him to decide. For example, Tata indigo, requests its customer to go for test drive and

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experience the truth. Customer may be convinced about indigo but not developed the conviction.Lookatthewordsusedinthecopy. Copy: Business class travel. Now with power dressing. Presenting the stylish new Tata Indigo. Make a powerful style statement on the roads with the new Tata Indigo. The fascia is accentuated by dual chamber headlamps and more pronounced chromelined grille, while sill valance covers, chrome insert door rub rails and dualtoneORVMsaddasportytouchtothe overalleleganceofthecar.Therearsports a chiseled bodyhugging bumper, new tail lamps and chrome surround registration plate garnish. The interiors turn beige for the full range, and the new cockpit topped off by the 3spoke steering wheel carries forward the classic modernity of the exteriors. The bestselling sedan just got better.Takeatestdrivetoday.Anddiscover powerdressingon.wheelsSpoilyourself.

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f. Purchase: Sometimes customers are having strong desire to buy the product but due to affordability or any other environmental character, they are not able to purchase. In this situation, marketer uses promotional schemes particularly reduced price schemes to attract the customer. Companyalsocomesoutwithcommunicationprogramsforrepeatpurchasersandloyalcustomers. 12.3.3.Designingamessage Afterdecidingthecommunicationobjectives,Marketerturnstodeveloprightmessagewhichshould createattention, interest,desireor action (AIDA) by the customer. Before deciding what should be theirinthemessage,wewillunderstandAIDAmodelindetail. I. AIDAmodel: Attention: The marketing communication should generate attention towards the product. In this stage customer is having the need organization should provide solutionfromtheircommunication. Interest: Once the customer provides enough attention towards the communication, organizationshouldstimulateittocreateinterest. Desire: The interest created should be forced in the customer mind so that he will developdesiretowardstheproduct. Action: Strong desires shouldbe turned into action. Hence company should provide theadvantagesofpurchasingoftheproductintheircommunicationmessages. II. Decidingthemessagecontent. Messagecontentmusthaveanyoneofthefollowingappeals Emotionalappeal:Positiveemotionalappealornegativeemotionalappealsarestrong toolsusedtointensifythepurchasingactivityofthecustomer.Positiveemotionslike love,pride,joyandhumorareusedinthemessage.Followingaretheadvertisement wheresuchattributesofpositiveemotionsused.

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www.makemytrip.com Joy

BMW fastest saloon car in the world pride

Fevicolhumor

Wheellove.

Thenegativeemotionslikefearguiltandshamearealsousedintheadvertisementto attractthecustomer.

ICICIprudentialfear.

NIIT if you are not studying at NIIT youaremissingsomethingguilt

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Rexonadeodorantshame. Rationalappealshighlightonthedesiredbenefitsabouttheproducts.Theyhighlight quality,economyvalueorperformanceoftheproduct.

DaburAmlavalueappeal(longHair)

LakmebrillianceQualityproducts.

Reliance India mobile performance( Reliance Infocom Like the first three,

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workseveninfloodsituations)

themobilephonemustcometomeas a necessity and not as a luxury economy

Moral appeal: These are concerned towards public health or environment or social responsibility. For example, Shell lubricants show its commitment towards environmentintheiradvertisements. III. Messageformat:Inthissectionwewilldiscusshowmessageshouldlookandstimulatethe interest. Constituentsofmessageformat: Characteristics 1. Headline 2. Copy 3. Illustration 4. Color 5. Pictures 6. Messagesize 7. Shape 8. Words 9. Sounds 10. Voice 11. Bodylanguage Suitablemedia. Print,Outdoor,Online Print,TV,outdoor,online Print,TV,Outdoor,online Print,TV,outdoor,online Print,Outdoor,online Print,TV,Outdoor Print,Outdoor,Online Print,TV,Product,Outdoor Radio,TV,Online,Outdoor Radio,TV,Online TV,Online

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12. Texture 13. Scent 14. Distinctiveformats

Product,Print,Online Product Print,Online,Outdoor

PrintadvertisementMessageformat: Pictures

Headline

SubHeadline

Bodycopy

Baseline

Colorsused:Saffron,Yellow,Red,Watermarkbrown,Black,Brown. Size:3.5inchbreadth*4.2inchlength

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Shape:Rectangle Words: Straight out of the pack and into your mouth, that's the usual style of eating Haldiram'sNamkeen.Butnow,there'sawholenewwayofdoingit!Ablendofourdelicious namkeenwithadashofimagination,presentedinalistofyummyrecipes,justforyou.But where do you get these Recipe Remixes? Justwrite to us at the addressgiven below and we'llsendyouaRecipeRemixbooklet,absolutelyfree!What'smore,youcanalsotrythese recipesatmostoftheHaldiram'soutlets.So,getyourownbookletandstartwhippingupyour remixesinyourkitchenitselforsimplyvisitusatouroutlets.Butwait,there'smore!Youcan evencreateyourownrecipesandsendittous.Whoknowsyourrecipecouldwinyouagift voucherofuptoRs.2500/*.Notonlythat,yourwinningrecipecouldalsofeatureinournext Haldiram'sRecipeRemixbooklet.So,getthoserecipesstartedandletthegoodtimesbegin!

12.3.4.Selectingthechannelsofcommunications v Thecommunicatormayusecompanysalespeople,referencegroups,blogs,RSS,webinar, online communitiesandsocial networking sites to promotetheir products. These mediaare calledaspersonalcommunicationchannels.Thewordofmouthcampaignsbuzzmarketing andviralmarketingaresomeexamplesofpersonalcommunicationchannels. Word of mouth communication: the personal communication between customers and their referencegroupsabouttheproduct Buzz marketing: The marketing technique in which organizations create opinion leaders (peoplewhoseopinionaresoughtbyothers)andspreadtheproductinformationtoothers. Forexample,GmailGoogledidnomarketing,theyspentnomoney.Theycreatedscarcity bygivingoutGmailaccountsonlytoahandfulof"powerusers."Otheruserswhoaspiredto be like these power users "lusted" for a Gmail account and this manifested itself in their bidding for Gmail invites on eBay. Demand was created by limited supply the cachet of having a Gmail account caused the word of mouth, rather than any marketing activities by Google.

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Viral marketing: The marketing technique ofusing socialnetworks on the internet to create thebrandimage. Viralmarketingisaphenomenonthatfacilitatesandencouragespeopletosendmessagesto othersvoluntarilyViralpromotionsmaytaketheformofvideoclips,interactiveFlashgames, images,oreventextmessages.Forexample,Cadbury'sDairyMilk2007Gorillaadvertwas heavilypopularizedonYouTubeandFacebook. v The communicators are using mass media like print (Newspaper, magazine, journals) Broadcast (radio, television) Outdoor (hoardings, Bill board posters) and online (email, communities,groups,websites)tocommunicatetheirproductattributes. 12.3.5.Selectingthemessagesource Messages communicated by the celebrities and proper sources have high credibility among the targetconsumers.Manycompaniesusewellknownactorsandactresses,cricketplayers,andeven cartooncharacterstopromotetheiradvertisements.ColgatePalmolivewellknownFMCGcompany used Indian Dental Associations (IDA) recommendation to promote their toothpaste. As we have seenearlierRahulDravid,AmitabhBachanandKarishmaKapoorareusedassourcesforReebok, Reyd and Tayolr, and Dabur Amla respectively. Companies should be very careful about the selectionofthesources.Iftheproductcharacterdoesnotmatchwithsources,thenproductwillfailin the market. Recently Pepsi dropped its sources Rahul Dravid and Sourav Ganguly and selected RohitSharmaforthepromotioncampaigns. 12.3.6.TargetCustomerFeedback Thecommunicatorcollectsthefeedbackonthepromotioncampaigntoassesshowmanyoftarget customerabletosee,hearorreadthemessage.Thisstagehelpscommunicatortounderstandhow manyoftargetcustomersactuallyabletorecallthemessage?Andamongthemhowmanyofthem really purchased it. Some companies go further and ask the customer to provide suggestion to improvethepromotioncampaign.

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12.4.Budgetallocationdecisionsinmarketingcommunications Mediavehicleselection,numberofinsertionsandmessagestructuredependonthebudgetallotted for the communication program. A popular channel may charge more for advertisement but organization gets better viewership. A newspaper having high circulation charges premium for the advertisement but all the organization may not have enough budgets to support such campaign. Hencemarketerwouldliketodecidewhatisthebudgetforthecommunicationprogram?Andhow shallitbeallottedoptimally?Therearefourdifferentmethodsonwhichamediaplannerdecidesthe allocationofadvertisementbudget. 12.4.1. Affordable method: The method is used by small companies who dont have enough communication budgets. In this method company allots the fixed amount for the communication program.Theadvantageofthismethodiscompanycanhavebettercontroloverthespendingonthe communication.Thedisadvantageisifsalesrequirehighercommunicationeffort,companyisnotin apositiontoallocatethebudget. 12.4.2.Percentageofsalesmethod.Inthismethodcompanyallotsthebudgetonthebasisoftotal salesforecasted.Thisisthesimplestmethod.Marketercanhavebettercontroloverthebudgetand alsohaveflexibilitytoallocatethebudget. 12.4.3.Competitionmethod:TheCompanysetsitspromotionbudgetonthebasisofcompetitors advertising effort. Here company closely monitors the developments of the competitors communication program and study the industry trends in communicationbudget prior to setting up communicationbudget. 12.4.4.Objectiveandtaskmethod:Theprocedureinvolvedinestimatingtheadvertisementbudget bythismethodareFirst,Objectivesaresetforthecommunicationprograms.Second,identifyingthe task to be performed to achieve the objective and third, estimating the cost of achieving these objectives. SelfAssessmentQuestions1 1. ExpansionofAIDAis 2. Thethreeappealsusedinthemessagecontentare,and.

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3. Thetechniqueofusingthesocialnetworkontheinternettocreatethebrandimageiscalledas 4. Percentage of sales method of advertisement budget decision is determined on the basis of affordabilityofthecompany a. True b.False 5. Thepromotionobjectiveusedwhencustomermayhavepreferenceovertheproductbuthe/she stillnotabletodecideis 12.5. IntroductiontoAdvertising Pleaserememberwealreadydiscusseddefinitionofadvertisementinthepromotionmixconceptsat the beginning of this unit. In this section we will discuss different types of advertisement and four importantdecisionsmanagementtakesindevelopingadvertisementprogram. 12.5.1.Typesofadvertisements Institutional advertising: The objectives of advertisements are to enhance the image of the companyratherthansellingtheproduct. Product advertising: The objective of this type of advertisement is to communicate about the productattributestothetargetcustomer.Productadvertisingisfurtherclassifiedintothreetypes. Theyare 1. Pioneeradvertising:Thismodeofadvertisementsisusedtocreateawarenessanddemand intheinitialstageoftheproductlifecycle. 2. Competitiveadvertisements:Thistypeofadvertisementisusedtohighlightthedifferentiation of organizations product. This method is usually used in the growth phase of product life cycle. 3. Comparative advertisements: This type of advertisements highlight on the comparing companys communication message with competitors product information. This method is usedwhenthecompetitionisveryhighorsalesaresluggish.

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12.5.2.Decisionsinvolvedindevelopingadvertisementprograms Determining the advertisement objectives: Marketing management should determine the objectives of advertisements in the initial phase of the program. The objectives of advertisementsare i. Providetheinformationaboutadvertisementsandcreateawarenessabouttheproduct. ii. Highlighttheuniquenessofcompanysproductsovercompetitors. iii. Remindingabouttheproductandfacilitatingthethinkingabouttheproduct. Determining the advertisement budget: We discussed four important techniques used in settingupcommunicationbudgetinthebeginningofthisunit.Inthissectionwewilldiscuss thefactorsthatinfluencetheadvertisementbudgetdecisions. i. The product stage in the product life cycle: In the introduction stage of product life cycleCompanyspendsmoremoneyonconsumertoinformabouttheproductandto createtheawareness. ii. The market share of the company: If the share of the company is high, it tries to defendbyheavyadvertisementandifitislowandmarketisattractiveorganizations promotecompanysproductheavily. Developing advertisement strategy: Advertisement strategy depends on two important factors.Theyaredevelopingmessagesandchoosingpropermedia. i. Messagedevelopment: Messageshouldbedevelopedonlyafterpreparingthecompletetargetprofile. Understandwhatintereststargetcustomer. Messageshouldanswertheobjectivesoftheprogram. Messageshouldbesimpleandcanbeunderstoodbyanybody. Usemoreinteractivecommunicationtools.

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ii.

Selectingadvertisingmedia: Assesshowmanytargetcustomersshouldviewthecommunicationmessage. Pointouthowmanytimesatargetcustomerwillexposetotheadvertisement. Evaluatetheimpactofadvertisementmessageonthetargetaudience. Listoutthemediahabitsofthetargetcustomers. Findthesuitablemediafortypeofproductorganizationhave. Preparecostsheetandchooseoptimummedia. Choose particular media vehicle (Zee channel, Times now, Prajavani, Hindu etc) Decide how many timesadvertisement should be given in the year and also decidethecontinuityofadvertisement. Allocate the media execution strategy on the basis of prime time and non primetimeorseasonalandnonseasonaldecisions.

Evaluating advertising: Communication department is interested in identifying whether the message given is effectively reaching the consumer and inducing them to purchase the product.Thereforetheycriticallyevaluatetheadvertisementsthroughvariousmethods.Some of the important methods through which advertisements evaluated are recognition method (showingtheadvertisementandaskingwhetherthyhaveseenitbefore),aidedrecall(asking people to tell the brand they remember) and unaided recall (asking people if they can rememberseeinganyadswithinanidentifiedproductcategory). 12.5.3.Characteristicsofmajormedia I. Radio 1. Providesuptodateinformation
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2. Reachesthelocalaudienceeffectively 3. AfterFMrevolutionthisisoneofthefastestgrowingmedia. Television 1. Expensivemedium 2. Productscanbewellexplainedanddemonstrated. 3. Itprovideswidegeographiccoverage 4. Imagecreationisdifficultinthismediumbecauseofspontaneity. 5. Widenumberofmediavehiclecreatestheproblemformediaplanners. II. Printmedia Newspapers 1. Continuetodominatelocalmarkets 2. Retailandclassifiedadvertisementarekey 3. Importantadvantagesincludeflexibilityandcommunityprestige 4. Newspapers offer powerful merchandising services like promotional and research support Magazines 1. Dividedintotwobroadcategoriesofconsumermagazinesandbusinessmagazines 2. These categories are also subdivided into monthly publications and weekly publications 3. Specialtyadvertisementscanbepromotedthroughthismedia. III. OutdoorAdvertising

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1. Includesbillboards,paintedbulletinsordisplays,andelectricboards 2. Theoldestandsimplestmediabusiness 3. Effectiveinthehightrafficareas. 4. Environmentalistsopposethistypeofadvertisement. IV. Onlineadvertising 1. Containscharacteristicsofbothprintandbroadcastmedia 2. Enhancestwowaycommunicationandencouragesaudienceparticipation 3. Exampleofthismediaisemail. V. OtherAdvertisingMedia 1. Transitadvertisement:advertisementsplacedonthebusesandmovingvehicles. 2. Movieadvertising:Insertingtheadvertisementinsidethemovie 3. Inflightcommercials:advertisementsplacedintheairplanes. 4. Usingyellowpagesandpamphletstoadvertisetheproduct. 12.6.Fundamentalsofsalespromotion Salespromotionsareshorttermprogramsthatencourageconsumerspurchaseorsaleofa productorserviceimmediately. AccordingtotheInstituteofSalesPromotion, "SalesPromotioncomprisesthatrangeoftechniquesusedtoattainsalesormarketingobjectivesin acosteffectivemannerbyaddingvaluetoaproductorserviceeithertointermediariesorendusers, normallybutnotexclusivelywithinadefinedtimeperiod." Salespromotionsareshorttermincentivesandbestsuitsforgeneratinginstantsales.Organizations thatareintotheretailingandmanagingitindependentlyareusingthesetothemaximum.According
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to AdEX India a TAM India subsidiary, sales promotion accounted for 18% of total print advertisement. SalespromotionmethodsaccordingtoIndianmarket: Sales promotion uses three different types of tools. They are consumer promotion tools, Trade promotiontoolsandbusinesspromotiontools. Consumerpromotion tools:Thesepromotiontoolsaredirectlytargetedtocustomer.Thesetools stimulateaninterestamongtargetcustomertopurchasetheproductsquickly.Someoftheconsumer promotiontoolsusedintheIndianmarketislistedbelow. (Source:AdEXaTAMmediacompany) 1. Pricepromotion:Organizationofferspricereductionontheproduct.Forexample,Rs5offon thepurchaseofRevive200g. 2. Contestpromotion:organizationrequeststhecustomertopurchasetheproducttoparticipate inthecontestandwintheprizes.Forexample,BritanniasBritanniakhao,worldcupjao 3. Multiplepromotions:Promotionsofferincludesmorethanonepromotionaloffer.Forexample, Rs30offandamultipurposejarfreeonthepurchaseof1literpackofHaloshampoo. 4. Addonpromotion: Promotion offersafree or an addonproduct (sameor different) on the product.Forexample,an8mlSunsilkshampoosachetisfreewith75gPears. 5. Exchange promotion: Price of a product is reduced in an exchange of an old product. For example,bringyouroldcolortelevisionandtakehomeaPhilipsLCDTVforRs15,000. 6. Combination promotion: two or more products are offered together at a discount price or someincentiveisgivenonacombinationpack.Forexample,saveRs10onthecombined purchaseofColgatetoothpasteandtoothbrush. 7. Volume promotion: allows additional quantity of product free on its purchase. For example, get50gextraonpurchaseof100gTide. Top10companiesonusageofsalepromotions(2007).

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1. MarutiSuzukilimited 2. Reliancecommunicationslimited 3. NokiaCorporation. 4. LGelectronicsIndialtd. 5. PantaloonsIndialimited. 6. HPIndialimited 7. TataSkylimited 8. PlanningconsultantIndialimited. 9. SamsungIndiaelectronicslimited. 10. HeroHondamotorslimited. Trade promotion tools: These promotions are targeted to retailers and wholesalers. The objective of this type of promotion is to get the self space, motivate to sell the products and promotebrandsinthelocalmedia.TherearevarioustypesofTradepromotiontoolsareusedin the market but we are limiting our discussion to two major types. They are discounts and allowances. 1. Discounts: manufacturer offers straight reduction in the list price on every purchase that channelmemberdoesintheparticularperiod. 2. Allowances:Thisisthepromotionvalueprovidedbythemanufacturertothechannelmember toadvertisetheproductinthelocalmediaordisplaytheproductinthestore. BusinessPromotiontools:thepromotiontoolsusedtoleadgeneration,rewardcustomerand motivate salespeople for business customers. An organization uses conventions and trade shows.Forexample,MachinetoolindustryorganizesAmtexexhibitionindifferentplacesofthe country.Organizationalsoconductssalescontesttoitssalesexecutivestomotivatethemtosell more.

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12.7BasicsofPublicRelations Public relations (PR) are the management of internal and external communication of an organization to create and maintain a positive image. Public relations involve popularizing successes,downplayingfailures,announcingchanges,andmanyotheractivities. Methodsofpublicrelations: Lobby groups: these are established to influence government policy, corporate policy, or publicopinion.Thesegroupsclaimtorepresentaparticularinterest. Newsconferencesandgrandopeningstoattractmediaandcustomers. Usingwrittenandaudiovisualmaterialtoreachthepublics. Socialresponsibilitiesoftheorganizationhaveshownthroughpublicserviceactivities. Preparinginteractivewebsite,communitiesandblogsontheinternet. Advantagesofpublicrelations: Ithelpsinbuildingandmaintainingrelationswithlocalcommunity.Forexample,cocacola Indiasinitiativesoftransformingvillagescampaignhelpedittogetbetterimageamong theruralconsumers. Ithelpsinkeepingbetterrelationswiththeinvestors. Agoodimagewithsocialgroupscreateswordofmouthadvertising. Ithelpsinreducingtheconflictsandmisconceptionaboutcompanyorproduct Ithelpsinpublicizingtheproducts. Role of public relations in communications: Public relation messages are created by the company staff and circulated in the media without any cost. If the message is powerful, it reaches differentmedia.Wheneverthecompanyfacestheissues,itlookedtowardsthepublicrelationsrather thanadvertisements. Forexample, Cadbury chocolate warm issue or colapesticide issue in which the public relations is used more than the advertisements. The firms public relations should be
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blended smoothly with the other promotion activities within the company have overall integrated marketingcommunicationseffort. SelfAssessmentQuestions2 1) advertisementsareusedtocreateawareness. 2) andarefactorsdeterminetheadvertisementbudget. 3) Televisionisatypeof a. Broadcastmedia. b. Printmedia. c. Outdoormedia. d. Onlinemedia 4) A sales promotion technique in which marketer offers two or more products together at a discountpriceorsomeincentiveisgivenonacombinationpackiscalledas 5) Lobbyingisthemethodof a. Salespromotion b. Publicrelations c. Advertising d. Alltheabove 12.8.Summary i. Promotionmixisanassortmentofadvertising,salespromotion,publicrelation,Personalselling anddirectmarketing. ii. Someofthepromotionobjectivesareawareness,knowledge,liking,preference,convictionand purchase. iii. Buzzmarketing:Themarketingtechniqueinwhichorganizationscreateopinionleaders(people whoseopinionaresoughtbyothers)andspreadtheproductinformationtoothers. iv. Advertisement allocation can be done on the basis of affordable method, percent of sales method,competitionandobjectiveandtaskmethod. v. Advertisementsareclassifiedasinstitutionaladvertisingandproductadvertising.

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vi.

Media planner have Broadcast media, print media, outdoor media, online media and other Mediastoallocatethebudget.

vii. viii. ix.

Tradepromotionsareprovidedtochannelmembers. Conferenceandexhibitionsareexamplesofbusinesspromotiontools. Lobbyingandpressconferencearetoolsofpublicrelations.

TerminalQuestions: 1. Whatdoyoumeanbypromotionmix? 2. Explainthereasonsforgrowthofintegratedmarketingcommunications. 3. Explainthecommunicationdevelopmentprocesswithexamples. 4. Whatdoyoumeanbyconsumersalepromotion?Explaintheconsumersales promotiontechniquesusedintheIndianmarket. 5. Writeanoteonpublicrelations.

AnswerstoSelfAssessmentQuestions SelfAssessmentQuestions1 1) 2) 3) 4) 5) Attention,interest,desireandaction. Emotional,rationalandmoral Viralmarketing False Conviction

SelfAssessmentQuestions2: 1) 2) 3) 4) 5) Pioneer. Productstageintheproductlifecycleandmarketshare. Broadcastmedia. Combinationpromotions. Publicrelations.

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AnswertoTerminalQuestions 1) 2) 3) 4) 5) Refer12.1 Refer12.2 Refer12.3 Refer12.6 Refer12.7

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