ADVERTISING

1. PERVASIVENESS:
Advertising permits the seller to repeat amessage many times. It also allows the
buyer to compare messages of variouscompetitors. Large scale advertising says
something positive about the seller size, power and success.
2. AMPLIFIED EXPRESSIVENESS:
Advertising providesopppournities for dramatizing the company and its products
through the artful printsound color.

A D V E R T I S I N G
C A N
B E U S E D
T O
B U I L D
U P
A L O N G
T E R M
I
M A G E
F O R
A P R O D U C T
PROMOTION
The promotion mix within the marketing mix includes advertising, sales
promotionand personal selling. Product promotion means making the product
popular amongthe consumers and raising its sales through suitable measures the
basic purpose isto widen the scope of marketing.sales promotion means the
promotional activities other than personal salesmanship,advertising and publicity
which stimulate consumer purchasing and dealer effectiveness through
displays, exhibitions, demonstrations, free samples,discounts, premium etc. it is
plus ingredient in marketing mix it act as bridge link in between advertising and
personal salesmanship. It acts as a supporting facility toadvertising and personal
selling.

F E A T U R E S O F S A L E S P R O M O T I O N
1. SALES PROMOTION ACTS AS A TOOL IN MARKETING TOLUBRICATE
MARKETING EFFORTS.2. IT IS NECESSARY IN PRESENT COMPETITIVE WORLD
ANDCONSUMER ORIENTED MARKETING3. IT SUPPORTS ADVERTISING
AND PERSONAL SELLING.4. IT AMIS STIMULATING CONSUMER PURCHASING
AT POINT OFSALE.5. IT PROVIDES MORE SALES AND PROFITS TO
PRODUCERS ANDDEALERS
NEED OF SALES PROMOTION

1. FOR UNLOADING ACCUMULATED INVENTORY.2. FOR INTRODUCING

NEW PRODUCTS.3. FOR OVERCOMING SEASONAL SLUMPS.4.
FOR SUPPORTING ADVERTISING CAMPAIGN.5. FOR GETTING NEW
ACCOUNTS.5. FOR SUPPORTING AND SUPPLEMENTING SALESMAN EFFORTS.
OBJECTIVES OF SALES PROMOTION
1. TO RAISE VOLUME OF SALES OF PRODUCT.2. TO RAISE BUYING RESPONSE
AND POTENTIAL CONSUMERS.
T H R E E M A R K E T I N G
R O M O T I O N
S T R A T E G Y
A] DEFINE YOUR VP
-up stands for value proposition and it iscritical to define what unique value you
can bring to your customer. The threeitems that you should not define as your up.1
low price-if your only differentiator is price, customer is in tough time. Price
is probably the worst way to attempt to differentiate your company. Making low pricing your
up is a mistake.2. Quality products-they are not differentiator, they are an
expectation.3. service-good service is an expectation, not vp.good service is not
simply aunique way you differentiate your business these days. Up need to focus
on aunique way you do business, it can be way your information is packaged,
aguarantee that no one else offers, or the way your product can transform
people.Once you defined your value proposition, you must ensure that this
message comesacross clearly to your customers and prospects. An easy way to
develop a businesstag line based on your up and uses this tag in all your
customers communications.
B} MATCH THE MESSAGE TO THECUSTOMERthe more you know and are able to define your various buyer personas, the more
you will be able to communicate tightly focused and powerful message that
is relevant to particular customer.
C} GIVE SOMETHING FOR NOTHINGthis meansto build trust by giving away something for nothing. Before you attempt
to sell.You must create trust they want information. When they surf the internet they
needinformation. The trust can be created over time by consistently showing
customer the knowledge, expertise and values

START OFLENOVO

Hope through Entrepreneurship tells not just the story of Lenovos corporatesocial
investments, but the companys own history. In 1984, 11 computer scientistsin Beijing,
China had a vision to create a company that would bring the advantagesof
information technology to the Chinese people. With approximately $25,000USD in
seed money and the determination to turn their research into successful products,
this team opened their business in a loaned space a small, one-story bungalow in
Beijing.Today, Lenovo is encouraging people around the world to make an impact.
AsLenovos technology helps bridge the physical gap among different parts of
theworld, the companys goal is to do the same through its social
investments.Given Lenovos history and the nature of its business, the company
focuses onhelping people around the world transform their lives and their
communities. To dothis, Lenovo supports organizations that encourage business
development andsocial entrepreneurship. Through microfinance institutions such
asOpportunityInternational, Lenovo is helping provide crucial loans to help
disadvantaged peoplein countries such as Africa, Asia, Latin America and Eastern
Europe.
H I S T O R Y
O F
L E N O V O

The following is a brief history of Lenovo:- 2000: Legend shares peak at

HK$14.75 on March 6.- 2001: Dell takes the largest share of the worldwide PC
market for the first time.Legend sales reach a peak of HK$27.2 billion in the fiscal
year ended March 2001and decline to HK$23.2 billion in the most recent fiscal
year ended March 2004.- 2003: The Company changes brand name to Lenovo
from Legend to avoidinfringement of overseas brands. The company says it
is preparing for expansionoutside China, which has overtaken Japan to become
the world's second-largest PCmarket. The US remains the world's largest
PC market.- 2004: The Company changes its name to Lenovo Group. Time Warner Inc,
theworld's largest media company, on January 7 exits a US$50 million Internetventure in
China with Lenovo. China accounts for 99 percent of Lenovo's sales infiscal year
ended March 2004 and 98 percent in the previous 12-month period.Lenovo's firstquarter PC shipment growth in China lags rivals such as Dell,according to market
researcher IDC Corp. Lenovo has a 10.9 percent share of theAsian market
excluding Japan, compared with 7.3 percent for Dell. Lenovo's Asianshipments rise
19 percent, compared with 52 percent for Dell. Lenovo's sales of services and
hand-held electronics grow the fastest of all its products in the mostrecent two
fiscal years, each at an average rate that roughly quadruples. Computer sales rise at
an average rate of 9 percent in the same period.- December 3, 2004: IBM in

discussions with Lenovo about the sale of its PC business, the New York Times
reports.- December 7, 2004: Lenovo says it's in talks with a major international
companyabout a possible acquisition.- December 8, 2004: Lenovo's purchase of
IBM's personal computer businessformally announced in Beijing
yesterday. Acquisition expected to be completed inthe second quarter of 2005
.
OBJECTIVE OF LENOVO
Lenovo nose-diving into rural market
China's top PC maker, Lenovo Group Ltd, by introducing cheaper computers,
is plunging head-on into the country's rural market, where PC penetration is low
and purchasing power is weak.Analysts said the firm's low-price strategy will
help it strengthen its market share,which is shrinking. But they are divided about
the long-term profitability of thelow-priced PCs.Lenovo last week introduced a
new consumer PC series and an e-classroomsolution aimed at users in ordinary
households and the education sector intownships.The retail prices for the new PC
models will range from 2,999 Yuan (US$361), arecord low, to 5,999 Yuan (US$723).Lenovo
previously focused on PCs that cost more than 5,000 Yuan (US$602).

"The growth of the whole PC market is lackluster. But the township marketremains
largely untapped," said Yang Yeaning, chief executive officer of LenovoGroup Ltd.The
launch of the low-price PCs is part of Lenovo's strategic shift. He
expectsshipments of the new PC series will reach 800,000-1 million units within a
year.Beijing-based CCW Research said tapping the low-end market will
increaseLenovo's market share. And so it did."Lenovo is delivering a message that
itintends to cover all market segments, from high-end to low-end, "The lowpricestrategy puts pressure on some regional brands.Besides, operating systems are
not pre-installed in the DIY market."We have been put in an unfair position," said
Lu."If all vendors pre-installed legitimate operating systems and pay the VAT, our market share
would be much higher."GAO estimates gross profit margins for Lenovo's new series
PCs will be about 8 per cent.For fiscal year 2003, Lenovo's profit margins were
14.6 per cent, compared with14.8 per cent in the last fiscal year.Edward Yu, president of
research house Analysis International, predicted the profitmargins will be much lower."The
shipments of PCs priced at 2,999 Yuan are unlikely to reach 100,000 units.Otherwise, it will be
unprofitable," Yu said."The most likely scenario is quite a few of the PCs will be
available in themarketplace.The low-priced move is largely a promotion strategy."Since
Lenovo is not adopting a "direct-sales" strategy, the firm is unlikely to savethe
"channel cost," which usually accounts for nearly one-fifth of the price, Yuexplained.Lu

reaffirmed Lenovo will not follow Dell's "direct-sales" strategy.Lenovo's low-price

strategy is expected to spark a round of price-cutting in China'sPC industry.China's
No 2 PC maker, Founder Technology, "will not rule out the possibility of making a similar
move," said I Dongfeng, the company's managing president.Qi last week said he
agreed China's rural market promises much potential.
"I think a PC price tag from 2,000-3,000 Yuan (US$241-361) for the rural marketis
appropriate," he said.Another PC maker, Langchao, plans to launch a new PC
model that will cost about1,999 Yuan (US$241), some media have reported.A new round
of price-cutting is expected dent profit margins industry-wide. Profitshave been
dropping due to intense competition.Statistics, released by Analysis last week,
indicate PC sales in China in the year'ssecond quarter reached 17.53 billion Yuan
(US$2.11 billion), up 17.8 per cent year-on-year.Shipments in the quarter totaled 2.91
million units, down 0.4 per cent comparedwith previous quarter, but up 39 per cent yearon-year.Lenovo's market share dropped 5.6 per cent, year-on-year, during the
period,Analysis said.Barcelona FC's super soccer star Ronald de Assis Moriera
of Brazil, better knownas Ronaldinho has been named as the official representative
of china's PC giant,Lenovo, in its global promotion campaign. The two sides have
signed aconfidentiality agreement but Lenovo declined to talk about the
details, theexpenses in particular.According to Chen Shaopeng, senior vice-president
of Lenovo Group and president of Lenovo's greater China operation, partnering
with an internationalsport star is an important part of Lenovo's global marketing
strategy.Lenovo hopes Ronaldinho's personal charm and influence worldwide will
helpLenovo's global promotion campaign and gain popularity. During the oneyear promotion, Lenovo will be authorized to use Ronaldinho's personal images as
wellas all the brands of Barcelona FC."I believe that combination of the charm of
soccer and the sci-tech of computer will bring more color and pleasure to people's
life, noted Marc Ingle, vice presidentof Barcelona FC.The list of the commercial
value of soccer stars done byGermany-based BBDOConsulting months before
shows that Ronaldinho, with 32.6 million pounds topsthe rank.

S W O T
A n a l y s i s
Strengths:

Strong sale position in mainland (china) because of 90%sale fromit.

Market leader in china as Lenovo is learning more revenue fromthe mainland.


Low production cost.

Event sponsoring.

Good marketing and distribution strategy.

Strategic alliance with suppliers

Distribution channel

Opportunity
Pc sales are expected to growFast growing international marketSigning of
memorandum of understanding with USASpecialty shops providing one stop
platform for distribution
THREATS
Competition threats from local and international competitor Price war Maturing
marketInternational competitors forming alliance with local competitorsThreat of
price competition with clone PC makers
L E N O V O
B O O S T S
O N L I N E
S A L E S T H R O U G H
B A R G A I N P R O M O T I O N
China's leading PC producer LenovoGroup (0992.HK; LNVGY.PK), recentlyinitiated a
series of market promotion activities for low-price products in domesticonline
market.The PC giant earlier launched a product under the ThinkPad series for
the studentmarket at 7,999yuan and recently cut the price of a new PC product
under theThinkPad SL series to 3,000yuan from 5,000yuan.A market analyst says
that the price of IT product is on the decline due to costreduction of parts and
terminal. Besides, the low- price strategy could produce thelargest effect in the
summer holiday due to high price sensitivity in the period.The company has
begun to boost the promotion for online buyers, in particularlythe youth and
students, because the company could cut great cost to support itslow-price strategy.

With the extension of internet coverage, the booming online consumption

isunderpinned by reduced marginal cost due to more conveniences
and increasingtransparency of price for the components of IT products.The analyst
believes that the campaign would bring great troubles to the domesticPC producers
in the second and third camps, which might spark a new wave of merger and
acquisition in China.
L E N O V O E X P A N D S M O T O R S P O R T S P R E S
E N C E T O I N D Y C A R S E R I E S F O R I N D Y
5 0 0 W I T H C U R B / A L A B A M I A N / B E C K
T E A M
Lenovo Promotes Relationship with NBA by Highlighting the Finals on the
Car INDIANAPOLIS -- Lenovo, a leading computer company that creates the
best-engineered PCs in the world, today announced a sponsorship agreement with
theCURB/ Alabamian/Beck team for the crown jewel race within the Indy
Car Series -the Indianapolis 500.The announcement marks Lenovo's interest in
identifying how motor sports canhelp drive the company's goal for building brand
awareness on a global scale. Thiscoming weekend provides a significant
opportunity for worldwide brand exposure.

Lenovo is sponsoring teams at two of the racing world's most prestigious races
--the Indianapolis 500 and the Formula 1 race in Monte Carlo, Monaco.The
Lenovo Indy Car Series announcement comes during the most important timeof
year for the series - the Indianapolis 500 weekends, when all eyes are
onIndianapolis for what remains the world's largest single-day spectator
sportingevent. The Lenovo logo will be placed on the black No. 98
CURB/Alabamian/Beck Motor sports Dollar/Honda/Firestone car, driven by
Alex Barron,for this weekend's Indianapolis 500 race. In addition, the Lenovosponsored AT&TWilliams Formula One car - a partnership announced earlier this
year - races thisweekend at Monaco.In an innovative cross promotion, the Indy 500
sponsorship also showcasesLenovo's support for the NBA and The Finals, marking
the first time the league'smarquee event has been promoted during an auto race.
The front wings on the car will brand The Finals on ABC on June 7. Greg Odem
and Mike Conley Jr.,expected top selections in the NBA Draft in June and both
Indianapolis natives,will be on-site in Pit Row as guests of Lenovo and driver Alex
Barron."Indy Car racing is a data-intensive, computing-intensive endeavor, highly
focusedand invested in innovation and development, and highly dependent on
informationtechnology," said Tony George, Tony George, founder and CEO, Indy

RacingLeague, the sanctioning body for the Indy Car Series. "We welcome Lenovo
to thiscommunity and are excited to be working with the best in the business for
PCtechnology."The Indy Car Series has long been recognized for its technical
leadership, andrecently reinforced its leadership track record by being the first in
the automobileracing world to use 100 percent fuel-grade ethanol in Indy cars.
That leadershipmakes the Indy Car Series an excellent partner for Lenovo, where
engineering andinnovation are top priorities.Effective deployment of information
technology is a key part of the CURB/Alabamian/Beck Motor sports strategic
allocation process, and these decisions helpdetermine the team's success at the
track. A Lenovo notebook PC will form anintegral part of starting the Indy Car
before each race, practice and test session.Lenovo PCs will support engineers
in car research, test, development andmanufacturing. They will support the
drivers in their analysis and will support themanagement team in marketing,
logistics, travel and race planning as well as
networking, inventory, relationships with clients, sponsors and suppliers,
humanresources, finance and strategy.CURB/Agaganian/Beck Motor sports are a team
in the Indy Racing League owned by Greg Beck, Cary Alabamian, and Mike Curb.
The team's car is a black No. 98Dollar/Honda/Firestone car. The team participated as Team
Leader Motor sportswhen two Indy Car Teams joined forces to field cars for the 2006
Indianapolis 500.The first team was Beck Motor sports owned by Greg
Beck which was founded in1995. The second team R. Kent Baker Racing owned
by Kent Baker which wasfounded in 1988. Both Baker and Beck had many years
experience working withtheir own and various other Indy Car teams. They were
joined by Cary Alabamianand Mike Curb of Curb Alabamian Motor sports.
About the Indy Car Series:
The Indy Car Series is the premier open-wheel series in the U.S., competing on
achallenging combination of super speedways, short ovals, scenic road courses
andtemporary street circuits. In 2007 the Indy Car Series will conduct 16 events in
theU.S. and one in Japan, all available worldwide through a comprehensive, longtermagreement with ABC Sports/ ESPN. A leader in motor sports technology, the IndyCar
Series is the first racing series to power its Honda engines on 100 percent fuelgrade ethanol. The Indy Car Series continues to the be the fastest and
mostcompetitive racing series, attracting a diverse lineup of drivers including
MarcoAmoretti, Sam Cornish Jr., and Dania Patrick.
OLYMPIC GAME
Lenovo, worldwide partner of the Olympic Torch Relay and the
exclusivecomputing equipment supplier for the Beijing 2008 Olympic Games,
is offeringlimited-edition notebook PCs inspired by the Lenovo-designed Olympic
torchleading into the Beijing 2008 Olympic Games.

Bid on this limited-edition Lenovo 3000 V200 notebook PC signed by GailEmmys of the
U.K. Badminton team, the last one of only three availableexclusively through this auction.
With the Beijing 2008 Olympic Games justone week away, here's your last chance to win
this commemorative notebook PC!

About the limited-edition Lenovo 3000 V200 notebook PC

Like the Cloud of Promise on which the design is based, the notebook
cover features striking swirls of silver against a pure red base color. Gails
signature is prominently displayed on the cover of the notebook (signed with a
black SharpieFine Point Permanent marker).Due to export restrictions and
policies, this product is only available for shipmentwithin the U.K. or to the U.S.A.
Bids will only be accepted from bidders withshipping addresses in the U.K. or
U.S.A.Specs:Lenovo 3000 V Series notebooks are built to provide worry-free
computing in astylish, media-friendly and powerful ultra portable
widescreen.Processor Intel Core 2 Duo T5250 (1.50GHz, 2MBL2,
667MHzFSB)Operating systemWindows Vista BusinessDisplay type12.1 inches
WXGA Vibrant View TFT with integrated camera (1280x800)(Premium Silver)System
graphicsIntel Graphics Media Accelerator X3100Total memory1GB PC25300DDR2 SDRAMHard drive160GB, 5400rpm Serial ATA

Optical device8X Max DVD Recordable (Dual Layer) PATA Fixed Media Bay
driveWireless cardsBluetooth Version 2.0 + EDR,Intel PRO/Wireless 3945ABGBattery6
Cell Lithium-Ion Battery