Promotion

Unit 04
 Promotion : Meaning
• Promotion refer to the entire set of activities, which communicate the product, brand or service to the user. The
idea is to make people aware, attract and induce to buy the product, in preference over others.
Description: There are several types of promotions. Above the line promotions include advertising, press
releases, consumer promotions (schemes, discounts, contests), while below the line include trade discounts,
freebies, incentive trips, awards and so on. Sales promotion is a part of the overall promotion effort.
There are also:
1. Personal selling: one of the most effective ways of customer relationship. Such selling works best when a
good working relationship has been built up over a period of time.
This can also be expensive and time consuming, but is best for high value or premium products.
2. Sales promotions: this includes freebies, contests, discounts, free services, passes, tickets and so on, as
distinct from advertising, publicity and public relations.
3. Public relations: PR is the deliberate, planned and sustained effort to establish and maintain mutual
understanding between the company and the public.
The role of marketing communications in
marketing effort.
Marketing Communication – Meaning
• While ‘planning communication strategy’ the word communication holds the centre linking
both planning and strategy. Communication has enabled homo-sapiens to progress both by
transmitting knowledge and being a channel for addition of this knowledge. It encompasses
within itself the potential for generating change as well as development of behaviour and
response systems.

• What holds true for mankind applies equally to both organizations and marketing strategy.
Our study of ‘communication’, however, is often limited by the definition we give it.
Marketing communication, as we define it, remains always a subset of the company’s
communication, it does not result from formal planning but is something that is informally
achieved.
• Marketing Communication – Purpose
• Before we attempt an understanding of marketing communication, it is
essential to start with the purpose that it seeks to achieve.
• We know that the purpose of marketing effort is to increase value delivered to
the customer. This is to be done at the minimum cost to the customer.
• The following equation sums it up:
• Customer Delivered value = Total Customer Value – Total Customer Cost
 Marketing Communication – Top 5 Elements

• The five elements of the Marketing Communication mix are Advertising,

Direct marketing, and Personal selling, Public relations and Sales promotion.
These are discussed below.
• The Marketing Communication Process, Marketing Communication Strategy
and Marketing Communication Plan pages also provide additional thoughts
and tools for optimizing your marketing communication mix.
1. Advertising:
• This is the mass media method of marketing communication and provides exposure
to the largest, most geographically dispersed audience at the lowest cost per head.
That being said, advertising costs can add up quickly with mediums like television,
radio and even online advertising which can be prohibitively expensive for many
businesses.
• Other traditional forms of paid advertising include newspapers and magazines, the
Yellow Pages, billboards, signs and posters. As well, advertising on buses, benches,
gas pumps and even public restrooms is in vogue today.
• Basically, any medium which provides an opportunity to target “eyes and/or ears”
can be a venue for advertising and you can see examples of successful promotion in
the most unlikely places.
2. Direct Marketing:
• This marketing communication competency enables companies to reach out directly to consumers without
intermediary channels such as those required for advertising. This component of the marketing communication
process includes direct mail, catalogs, coupons and inserts, telemarketing, online marketing and television
infomercials.

• Done correctly, Direct Marketing is extremely effective in the long run and allows for a targeted marketing
approach to specific consumers to create valuable lasting relationships.

• Direct Marketing is the marketing communication method that enables companies to interact with a relatively
large number of customers and encourage a “call to action” or “most wanted response” which is usually a
purchase.

• The downside of Direct Marketing is that it is usually unsolicited and seen as a nuisance by the general public.
Telemarketing, e-mail spamming and junk mail are universally despised and so Direct Marketing tools should
be used with thought and caution. Visit the Direct Marketing Association website for guidance on legal and
ethical Direct Marketing.
3. Personal Selling:
• This is the most dreaded as well as the most expensive of all methods in the
marketing communication process. However, if you are a small business owner or
otherwise have the ability to personally sell and build relationships with customers, it
can be one of the most rewarding aspects of the marketing process, both personally
and professionally.
• Just as with traditional marketing, successful selling begins and ends with the
customer. The whole objective is to ascertain needs and create the best solution for
customers.
• Along the way you build relationships and continue to gather information about how
you can better serve customers which is your reason for being in business in the first
place.
4. Public Relations:
• This refers to how you handle your relationships and the flow of information with
your various “publics” or the people who have a stake in or are affected by your
business. This includes the general public, consumers, shareholders, employees,
partners, competitors and the government.
• Public relation becomes a more and more crucial element of the marketing
communication mix as a business or organization grows larger. That being said, it is
still a vital component of the marketing communication process to think about for
smaller businesses as well.
• Public relations tools include press and media releases, lobbying, charitable and
public events, advertorials, financial reports, promotional collateral, facility tours,
sponsorships, interviews and any other method for the promotion of a positive image
to people.
5. Sales Promotion:
• This is the last traditional component of the marketing communication mix
that is discussed here as part of the marketing communication process. Sales
promotion simply refers to purchase incentives that you provide your
customer with.
• These can assume a number of forms including offering free goods or
services, coupons and vouchers, gifts and prizes, discounts, samples, financial
incentives, charitable promotions and any other value add over and above your
standard product or services.
 Integrated Marketing Communications
• 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.
• This is enhanced when integration goes beyond just the basic communications tools. There
are other levels of integration such as Horizontal, Vertical, Internal, External and Data
integration. Here is how they help to strengthen Integrated Communications.
• Horizontal Integration occurs across the marketing mix and across business functions – for
example, production, finance, distribution and communications should work together and be
conscious that their decisions and actions send messages to customers.
• While different departments such as sales, direct mail and advertising can help each other
through Data Integration. This requires a marketing information system which collects and
shares relevant data across different departments.
• Vertical Integration means marketing and communications objectives must support the
higher level corporate objectives and corporate missions.
• Meanwhile Internal Integration requires internal marketing – keeping all staff informed
and motivated about any new developments from new advertisements, to new corporate
identities, new service standards, new strategic partners and so on.
• External Integration, on the other hand, requires external partners such as advertising and
PR agencies to work closely together to deliver a single seamless solution – a cohesive
message – an integrated message.
 Develop an Effective Communications
Plan
1. Set Clear Goals and Objectives
• A common pitfall for building a communications plan is jumping straight to the
tactics. Goals and objectives are the roadmap of a plan and help you clarify the
results you want to achieve with your tactics.
• More specifically, goals are long-term in nature and can be viewed as the final
destination on the roadmap. Generally, a plan will have up to three goals. Objectives
are specific, measurable outcomes or results that an organization plans to achieve in
a given period.
• To ensure you hit your goals, your objectives need to be specific, measurable,
achievable, relevant and time-bound, or SMART:
2. Identify and Prioritize your Target Audience(s)
Once your goals and objectives are established, the next step is identifying who you want to deliver your message to. As
you begin to identify who your audiences might be, it’s important to consider who they are, both in a demographic
sense and a behavioral sense. This is where the target audience comes into play.

Here are a few thought starters to help you pinpoint your target audience:

• What groups or individuals do you need to engage to help you reach your goals?

• Who would benefit most from your offerings?

• What actions do you want the audience to take?

• Who do you generally engage in your programs, projects, and initiatives?

• What challenges hold supporters back from contributing?

• What characteristics do your current supporters share?

• What characteristics does an ideal supporter embody?

• How are individuals finding your organization (e.g. social media, events, word of mouth)?

• While identifying your target audience(s) may reveal several groups, consider prioritizing three or four audiences.
3. Craft a Compelling Message
Each target audience has distinct motivators and barriers; therefore, a one-size-fits-all approach
to messaging often falls short. No matter who you’re writing for, though, keep messaging
clear, concise, personalized and jargon-free.
Compelling messages are comprised of four key elements that need to be tailored to each
audience:
• Key message: The core takeaway you want to deliver to your audience
• Secondary messages: Supporting messages that enhance the key message
• Proof points: Factual evidence that affirms what you say is true
• Calls to action: Actions you want your audience to take
4. Develop Integrated Strategies and Tactics
Now it’s time to bring the communications plan to life! This is accomplished through
integrated strategies and tactics. Strategies are a unique approach for pursuing one or
more communications goals, and tactics are the methods you employ to execute against
the strategy.
The PESO model is a great framework to reference when building out your
communications strategies and tactics:
• P: Paid media
– Promotional efforts that involve paying for placements on third-party channels via social media
ads, sponsored posts and native advertising

• E: Earned media
– Buzz generated by the public (e.g. the press or your audience) through methods such as PR and
word of mouth
• S: Shared media
– Content on social media channels designed to drive engagement between a brand and its
audience

• O: Owned media
– The channels you have complete ownership of such as your website, blog, events, etc.

When developing tactics, it’s important to remember the 80/20 rule, which
entails allocating 20% of social media content for direct asks (e.g. donations,
event registration, etc.) and dedicating 80% for building community through
engaging content.
5. Build a Better Budget
• After crafting integrated strategies and tactics, the next critical step is to build a feasible budget.
Budgeting gives you visibility into the costs associated with implementing your communications
plan. In addition, establishing a budget is essential for containing costs and identifying opportunities
for efficiencies. Lastly, budgets are a fundamental resource for assessing your plan’s return on
investment.
• To build a budget, you’ll need to consider the following:
• Does your organization have an existing budget allocated for communications activities?
• How much will each line item in the tactical portion of your plan cost?
• If applicable, what were the projected vs. actual costs for previous campaign implementations?
• Your budget should serve as a guardrail to help keep your plan on time and track, so don’t be afraid
to tweak your tactics to ensure budget alignment.
6. Create an Actionable Timeline
• The final step in any plan development is mapping activities against a timeline.
Timelines are essential for helping you stay the course when transitioning from the
planning phase to implementation. Create a monthly or quarterly timeline, taking
into consideration major events and holidays you want to leverage (e.g. fundraising
campaign launch, company anniversary, Giving Tuesday, New Year’s Day, etc.).
• Developing a smart communications plan before launching a campaign, program or
service is integral to setting expectations and ensuring success. With these six steps,
you’re all set to get started on planning. Don’t forget to make the plan your own by
tailoring the steps to best achieve your goals!
 Push-Pull strategies

Promotional strategies to get your product or service to market can be roughly divided into two separate camps.
1. PUSH STRATEGY
A push promotional strategy involves taking the product directly to the customer via whatever means, ensuring the customer is aware
of your brand at the point of purchase.
"Taking the product to the customer"

EXAMPLES OF PUSH TACTICS

• Trade show promotions to encourage retailer demand

• Direct selling to customers in showrooms or face to face

• Negotiation with retailers to stock your product

• Efficient supply chain allowing retailers an efficient supply

• Packaging design to encourage purchase

• Point of sale displays

2. PULL STRATEGY
A pull strategy involves motivating customers to seek out your brand in an active
process.
"Getting the customer to come to you"
EXAMPLES OF PULL TACTICS

• Advertising and mass media promotion

• Word of mouth referrals
• Customer relationship management
• Sales promotions and discounts
PUSH STRATEGY:

The term 'push strategy' describes the work a manufacturer of a product needs to perform to get the product to the
customer.

• This may involve setting up distribution channels and persuading middle men and retailers to stock your
product.

• The push technique can work particularly well for lower value items such as fast moving consumer goods
(FMCGs), when customers are standing at the shelf ready to drop an item into their baskets and are ready to
make their decision on the spot.

• This term now broadly encompasses most direct promotional techniques such as encouraging retailers to stock
your product, designing point of sale materials or even selling face to face.

• New businesses often adopt a push strategy for their products in order to generate exposure and a retail channel.
Once your brand has been established, this can be integrated with a pull strategy.
PULL STRATEGY :
‘
• Pull strategy' refers to the customer actively seeking out your product and retailers placing orders for stock due
to direct consumer demand.

• A pull strategy requires a highly visible brand which can be developed through mass media advertising or
similar tactics. If customers want a product, the retailers will stock it - supply and demand in its purest form, and
this is the basis of a pull strategy. Create the demand, and the supply channels will almost look after
themselves.

• A successful strategy will usually have elements of both the push and pull promotional methods. If you are
starting a new business and intend to sell a product through retailers, you'll almost certainly need to persuade
outlets to purchase and stock your product.

• You'll also need to raise brand awareness and start building valuable word of mouth referrals. If you have
designed a product around the customer and have considered all elements of the marketing mix, both of these
aspects should be achievable.