ADVERTISING AND SALES PROMOTION

MODULE 1
Integrated Marketing Communication – Definition, Evolution, Concepts;
Marketing Communication Mix; Models of Marketing Communication; Ethical
and Social issues in marketing Communication

Integrated Marketing Communication

Integrated Marketing Communication (IMC) refers to the strategic

coordination of various marketing communication elements to convey a
clear, consistent, and compelling message to the target audience. It involves
integrating different communication channels, such as advertising, public
relations, direct marketing, sales promotion, and digital media, to achieve
marketing objectives.

Objectives:
 Awareness
 Brand loyalty
 Brand Image
 Market Expansion
 Persuasion

Advantages:
 Competitive Advantage
 Aids in buying process
 Building brand identity
 Message credibility
 Cost – effective
 Increased Profits
 Updating the Consumer
 Avoids deviation

Disadvantages:
 Restrict Creativity
 Time consuming
 Spoil corporate image
 Requires proper coordination

Definition
Integrated marketing communication is defined as “a marketing mix element
used to inform, persuade and remind people about an organisation and or its
products”

Evolution

Concepts

Marketing Communication Mix

The marketing communication mix refers to the specific mix of advertising,

sales promotion, public relations, personal selling.
These components work together to deliver a consistent message to
consumers.
Each component plays a unique role in conveying the company's message
to the target market, contributing to brand awareness, and ultimately
driving sales.
The components must be carefully integrated to ensure a seamless and
effective communication strategy that resonates with the audience.
ELEMENTS:
I. Advertising

o Visual impact: Advertising leverages visual and audio elements to create a

strong impact on the target audience, capturing attention and creating
lasting impressions.
o Brand awareness: Effective advertisements build brand awareness and
connect with consumers on an emotional level, fostering loyalty and trust.
o Message delivery: Advertisements are strategic tools used to deliver a
specific message about the product or service, influencing consumer
perceptions and behavior.

II. Public relations

o Media relations: Public relations professionals establish and maintain

positive relationships with the media to secure favorable coverage for the
company and its products.
o Crisis management: PR plays a critical role in managing and mitigating the
impact of negative events or crises, protecting the company's reputation.
o Community engagement: By engaging with local communities and
advocating for social causes, PR contributes to a positive brand image and
social responsibility.

III. Sales promotion

o Customer incentives: Sales promotions offer attractive incentives to
encourage customers to make immediate purchases, such as discounts,
coupons, and special deals.
o Short term impact: These activities are designed to produce immediate
increases in sales volume by creating a sense of urgency and excitement
among consumers.
o Brand viability: Effective sales promotions enhance brand visibility and can
differentiate the company's products in the marketplace, leading to
long-term benefits.

IV. Personal selling

o 1- on -1 interaction: Direct interactions between sales representatives and

potential customers allow for personalized product presentations and
relationship-building. - personal engagement.
o Customized approach: Personal selling enables the customization of
products or services to suit the specific needs of individual customers,
enhancing satisfaction. – Tailored solutions

V. Direct marketing

o Targeted communication: Direct marketing allows companies to tailor

messages to specific customer segments, increasing relevance and response
rates.
o Data driven strategies: Utilizing customer data, direct marketing enables
personalized and data-driven campaigns, improving conversion and
customer loyalty.
o Measurable result: Direct marketing activities can be easily tracked and
measured, providing valuable insights for refining future marketing efforts.

Marketing Communication Mix encompasses advertising, public relations, sales

promotion, personal selling, and direct marketing. Each element plays a crucial
role in crafting a comprehensive strategy to connect with the target audience,
build brand presence, and drive engagement. The synergy among these
components ensures a unified and impactful message. Successful integration
leads to effective communication, fostering lasting connections with consumers
and contributing to overall marketing success.

Models of Marketing Communication

Marketing communication models are developed based on various studies that

explain how communications work in marketing a product. They act as
important tools in understanding how communications work in real life
marketing situations and for developing a communication strategy. These are
the following models of marketing communication namely:

 AIDAS MODEL

This is one of the oldest and most popular models of marketing

communications. This hierarchical model was first proposed by St. Elmo Lewis
in 1900 for personal selling with stages: attract attention, maintain interest,
create desire and get the consumer to act. In 1911, Arthur Fredrick Sheldon
revised the model by changing the first step to 'favourable attention' and adding
a fifth step, 'permanent satisfaction'. The revised model was called AIDAS -
Favourable Attention, Interest, Desire, Action and Permanent Satisfaction.
The various stages in the buying process of the AIDAS model are:

 ATTENTION: To get the attention of the target customer.

 INTEREST: To create interest in the product by giving product information
(or special features) and how it can help satisfy the needs and wants of the
individual.
 OUTCOME: Whether the potential buyer develops a favourable or
unfavourable opinion about the product.
 DESIRE: Create a desire in the customer to possess the product. This is done
by emphasizing the benefits of the product and how it will satisfy the needs
and wants.
 ACTION: Demand action from the customer i.e., convince them to make
a purchase. A simple method to get action from the customer is to provide
a tollfree number or contact person for more information.
 SATISFACTION: The customer is satisfied after the purchase.
 EXAMPLE: Air Deccan used this model of marketing communication
successfully in its marketing campaign.

 DAGMAR MODEL

‘Defining Advertising Goals for Measured Advertising Results’, abbreviated

to DAGMAR, was proposed by Russell H. Coney in 1961.Coney suggested
that achievement of a hierarchy-of-communications objectives leads to actual
purchase. He suggested that marketing goals and advertising goals were
different. Marketing goals are measured in terms of sales whereas
advertising goals are measured in terms of the customers' movement along
the hierarchy. The various stages in this model are as follows:
 AWARENESS: In this stage the customer becomes aware of the product.
 COMPREHENSION: The customer is aware of the product characteristics
and its uses. He is also familiar with the brand name and brand logo.
 CONVICTION: This stage refers to the emotional decision of preferring one
brand to another.
 ACTION: In this stage the purchase is made.
The DAGMAR model assumes a high-involvement "learn-feel-do" hierarchy.
As advertising and marketing goals are deemed distinct, advertising goals
can be defined specifically tracked and measured. The long-term effects of the
advertisement can also be studied. With the help of the DAGMAR model, the
effectiveness of the advertisement can be measured in terms of its ability to
move the customer along the hierarchy. The model enabled marketers to define
the target market or audience for the commercial. As the advertisement had to
be based on the objectives, creative people involved in the process of designing
tend to feel that their creativity was being stifled. The implementation of
DAGMAR is also very costly, as extensive research is required for setting
quantitative targets and measuring them.
Example: General Motors (GM) used the DAGMAR approach to identify
advertising goals.

 HEIGHTENED APPRECIATION MODEL

The heightened appreciation model helps the marketer to arrive at an

advertising strategy. The model suggests that an important attribute of the
product category should be identified and the advertisement should convey
the link between the brand and that particular attribute. The consumer should be
convinced about the importance of the attribute and the benefits derived from it.
Advertising campaigns based on the heightened appreciation model are said to
be successful if they result in increased usage and positive image of the brand.
Example: Decline of Colgate Market Share, Traditionally, in India, toothpaste
was advertised highlighting two attributes: strength of teeth and prevention of
decay of gums (advertising Strategy of Colgate). Hindustan Lever Limited
launched two brands of toothpaste- Close Up, Pepsodent. The Close-up
toothpaste with mouthwash was targeted at youth and focused on freshness. The
Pepsodent brand was targeted at kids and the attribute used in advertisements
was its ability to fight germs for long periods. These attributes of toothpaste,
though important, had never been highlighted or given importance till then,
After the launch of Close Up and Pepsodent, the market share of Colgate
decreased significantly.

 ADVERTISING EXPOSURE MODEL

We know that an ad message creates awareness, conveys information

about benefits, attributes or features, builds a brand image and personality, vests
the brand with certain feelings, links the brand with group norms and
peers/experts and induces purchase behavior. Exposure to an ad can initiate any
of these processes. These five effects create an attitude in us towards the brand,
which if favorable leads to purchasing action. In addition, certain ads just
remind us about the product or brand or lead an assault on those reasons which
prevent a consumer from buying or using the brand. It is a direct inducement to
action.

 MODEL OF JOYEE

Joyee model concentrates on three areas - advertising, purchasing behavior

and consumer attitudes. It is assumed that there is a continuous cycle of
events in the three areas and change in one of the areas affect the other areas.
Consumer attitudes refer to the positive or negative feeling of an individual
towards a product or service. The attitudes are developed by personal
experiences in the past or the experiences of others. The attitude is a
psychographic characteristic and depends on age, gender, social class, regional
and cultural too. It is assumed that if the attitude towards a product is favorable,
then the person is most likely to buy the product. New model for marketing
communication was suggested by T. Joyee in 1991. Advertisement is deemed
effective if it is capable of changing the viewer's attitude in the favour of
the product advertised. It is not only difficult to change consumer attitudes, but
is also time consuming. Market research can identify the drivers for change.
Commercial Focusing on the drivers can be conceptualized. It has to be kept in
mind here that there is a change that the customer may view an advertisement in
some other context.

 LEVIDGE AND STEINER MODEL

In 1961, Robert J. Lavidge and Gary A. Steiner proposed a new model for
marketing communications, which used hierarchy of effects but included
persuasion as an important factor in the model. This model considered the long-
term effects of advertising too. According to the Lavidge and Steiner Model, a
customer who is totally unaware of the product goes through the following six
steps before making a purchase:

 AWARENESS: In this step, the customer becomes aware of the existence of

the product.
 KNOWLEDGE: The customer comes to know about the features and uses of
the product.
 LIKING: The customer develops a favourable attitude towards the product.
 PREFERENCE: Here, the customer develops preference for the said brand
over other competitive products or substitutes.
 CONVICTION: This step involves a desire to buy the product. The customer
is convinced of a good purchase.
 PURCHASE: The customer makes the actual purchase.

EXAMPLE: Hyundai Motors Limited used the model successfully while

launching its small car, Santro, in India.
Ethical and Social issues in marketing Communication

Ethical & social consideration in Marketing communication helps to fosters a

positive brand image and contributes to a responsible and sustainable business
environment.
o Importance of Responsible Marketing Practices:

 Trust building
 Long term customer relationship
 Brand Credibility
 Positive Reputation
 Legal Compliance
 Risk Mitigation
 Sustainable Business Practices
o Transparency and honesty: Dove’s “Real Beauty” campaign promotes
realistic and diverse portrayals of women, challenging traditional beauty
standards. Tesla, led by Elon Musk, openly communicates about its mission
to accelerate the world’s transition to sustainable energy.
o Diversity and inclusion: Coca-Cola’s personalized bottles feature a wide
array of names from different cultures and backgrounds. Google’s annual
“Year in Search” videos reflect the most searched topics globally.
o Truth in advertising: Google communicates its privacy principles and data
protection practices. The company provides transparency about how user
data is handled and emphasizes user control over privacy settings. Toyota’s
long-standing campaign focuses on the joy and reliability of their vehicles
without resorting to exaggerated claims
o Social responsibility: Nike’s “Dream Crazy” campaign features Colin
Kaepernick and promotes social justice and the pursuit of dreams. Starbucks
is committed to ethically sourcing its coffee beans and supporting coffee
farmers through fair trade practices.
o Customer wellbeing: Amazon allows customers to leave reviews and
ratings for products, creating a transparent feedback system. By providing a
platform for customer reviews, Amazon empowers shoppers to make
informed decisions and promotes a sense of trust in the purchasing process
o Cultural sensitivity: McDonald’s adapts its menu to local tastes, offering
region-specific items. In India, McDonald’s introduced the Mc Aloo Tikki
burger, catering to the vegetarian preferences of the local population.
Companies that prioritize transparency, inclusivity, environmental
responsibility, and social impact not only contribute to a more ethical business
landscape but also foster trust, loyalty, and a lasting positive impact on society.
MODULE 2
Marketing Communication Planning; Advertising Planning and Objectives;
Brand Equity; Advertising Budgeting; Media Planning and Strategy; Media
Research.

Marketing Communication Planning

 Situation Analysis: Assessing the current market conditions,

competitive landscape, and identifying opportunities and challenges.
 Target Audience Identification: Defining and understanding the
specific audience segments that the communication efforts will target.
 Setting Communication Objectives: Establishing clear and measurable
goals for the marketing communication campaign.
 Message Development: Crafting compelling and consistent messages
that align with the brand and resonate with the target audience.
 Channel Selection: Choosing appropriate communication channels
based on the target audience and campaign objectives.
 Budgeting: Allocating financial resources to support the planned
communication activities.
 Implementation: Executing the communication plan by launching
campaigns, advertisements, and other promotional activities.
 Monitoring and Evaluation: Regularly assessing the performance of
communication efforts and making adjustments as needed.

Advertising Planning and Objectives

 Brand Awareness: Increasing recognition and recall of the brand among

the target audience.
 Brand Positioning: Establishing a distinctive and favourable position for
the brand in the minds of consumers.
 Sales Promotion: Generating short-term sales through promotional
activities.
 Customer Engagement: Fostering interaction and engagement with
customers through advertising.
 Educational Objectives: Informing consumers about product features,
benefits, and usage.
 Behavioural Objectives: Encouraging specific actions from the target
audience, such as making a purchase or signing up for a service.
 Image Building: Shaping and enhancing the overall image and perception
of the brand.

Brand Equity
Brand Equity is a set of characteristics that are unique to a brand. In
essence, brand equity is the perception that a good or service with a given
brand name is different and better. Brand Equity is the critical aspect of
modern business strategy, representing the perceived value and strength of a
brand in the minds of consumers. It encompasses various elements such as:
 Brand awareness
 Perceived quality
 Brand association
 Brand loyalty

Building brand equity, however, requires the company to achieve more than
brand recognition. Recognition is only the first phase of marketing program.
Building brand equity includes the following steps:
 Research and analyze what it would take to make the brand distinctive.
 Engage in continuous innovation.
 Move fast.
 Minimize reliance on any one customer.
 Integrate new and old media.
 Focus on domination.

Importance of Brand Equity

 Competitive advantage
 Consumer trust and loyalty
 Price premium and market share
 Extension opportunities

4 components on brand equity:

1. Brand awareness: Brand awareness is the extent to which people are
familiar with the distinctive qualities or image of your particular
brand of services. Enhancing this is critical to gaining valued traffic.

2. Perceived quality: This is the customer’s opinions of our services and

our ability to fulfill expectations. It may have little or nothing to do
with the actual excellence of the service but rather, can be based on
image and the influence of engagement. Customers however, judge
quality as a total brand experience. Elevating this perceived value will
enhance the perceived experience and thus, increase sales.

3. Brand association: Brand association is a mental connection a

customer makes between your brand and a concept, image, emotion,
experience, person, interest, or activity. Brand association is one word,
 image, or concept that comes to mind quickly and they’re important for
every company to cultivate.

4. Brand loyalty: Brand loyalty is a result of brand awareness, brand

attribution, perceived quality, and previous experiences. Brand
loyalty is also affected by a person’s preferences. Loyal customers will
purchase services from preferred brands, regardless of convenience or
price. This is how we increase margins on the products and services we
provide.

Advertising Budgeting

The advertising budget influences the level of advertising activity used by the
firm. Budgeting for advertising is yet another area where a lot of subjectivity
prevails regarding what is the right amount to be spent on the advertising
activity.

Rules:
• Incremental promotional expenditure yields, incremental sales to a
certain extent
• A minimum level of promotion activity must be exceeded for promotion
to have a meaningful effect. Often such a minimum level of promotion is
set by the competitor or more appropriately by an average of the industry;
• Promotion activities when well-integrated with other elements of the
marketing mix produce greater than the planned results.
• Competitive Landscape: Analyse competitors’ strategies to determine a
competitive budget.
• Cost of Advertising: Evaluate costs associated with creative
development, media buying, and other campaign elements.
• ROI Expectations: Set realistic expectations for return on investment to
measure campaign success.
• Seasonal Variations: Adjust budgets based on peak seasons or industry
trends.
• Testing and Optimization: Allocate funds for testing different approaches
and optimizing campaigns based on performance.

METHODS OF COST-BENEFITS ANALYSIS

 Percent-of-Sales: This method views promotion budget determination by

linking the appropriation to a fixed percentage of sales of the company
products. Such sales may relate to the previous year, an average of sales
of the previous few years, projected sale of the next year or years or an
 average of the previous few years sales, as well as the projected sales of
the next few years.
 Fixed-sum per unit: This method views promotion budget
determination by linking the appropriation to a fixed percentage of sales
of the company products. Such sales may relate to the previous year, an
average of sales of the previous few years, projected sale of the next year
or years or an average of the previous few years sales, as well as the
projected sales of the next few years.
 Affordable funds: Continuing to think on the plane that promotion
expenditure is one of those business costs which are desirable or
avoidable as per the convenience of the top management, the funds for
promotion are appropriated on discretionary basis under this method. No
wonder then, that companies adopting this method find their promotion
appropriations fluctuating from year to year depending on the top
management’s thinking for the year.
 Competitive parity: Incorporating a measure of competitiveness in
planning, this method guides the budget determination in terms of
relativity to what the competitors are likely to allocate. Being a slightly
more market-oriented method than the ones ‘ discussed so far, when
based on the representative average of the industry promotion
expenditure, it becomes a good norm to moderate the promotion
expenditure of a company.
 Objective and task method: This is one of the most scientific methods
of budget determination. It approaches the budget exercise by first setting
the specific objectives to be achieved. It then identifies the tasks involved
in achieving the said objectives followed by ascertaining the costs
involved in the performance of each task required. The result of the
exercise is an estimation of the amount required for accomplishing the set
promotion goals. Typical objectives might be to increase awareness say
by 15% or increase message/theme recall say by 25%.
 The practice: In practice most companies make use of more than one
method for determining the promotion budget. The research into the
practices of the companies in India in this regard revealed the above
finding. Among the individual methods used “affordable funds” method
emerged as the most popular. There were, however, quite a few
companies which had started using the approach of `objective and task’
in setting their promotion budget either exclusively or in combination
with other methods. Most of such companies were dealing in consumer
goods.

In conclusion, effective advertising budgeting is a strategic process that

involves a thorough understanding of campaign objectives, target audience, and
the dynamics of chosen media channels. By considering factors such as
competitive landscape, cost of advertising, and expected return on investment,
businesses can allocate resources wisely and optimize their promotional efforts.
It’s crucial to strike a balance between investing sufficiently to achieve
campaign goals and ensuring cost-effectiveness.

Media Planning and Strategy

Media Planning Department

This department works on planning and buying the media. As if ad would not
be placed on the most appropriate medium or combination of medium them all
efforts and cost on it would be wastage. Each medium, which they are hundreds
are now, has its own unique method of accepting advertising such as different
cost structures. Media planning department on behalf of their clients looks for
the best media for advertising. They buy space form media and place their
client advertising there. Internal services department Internal services
department mean department in advertising agency that make relations between
the internal employees for effective control over all advertising completion
process. This is divided further in three sub-departments.
Traffic Department
The traffic department regulates the flow of work in the agency. It increase
agency efficiency and profitability through the reduction of false job start,
inappropriate job initiations, incomplete information sharing, over and under
cost estimation and answering the phone calls.
Finance Department
They are responsible for handing all the matters related to finance. They take
care of all the bills for example electricity, phones, house rent, building fares,
internet charges, transport allowance etc. they are responsible for getting money
form advertisers as well. Employees‘ salaries and daily payments also come
under this department.
Human Resource department
This department looks after the man power in the agency. They know where to
appoint new person, whom to shift from one to another department. Where new
training needed. When to conduct seminars to enhance different skills of
workers.
Client Services Department
Usually this separated department is seen in very larger ad agencies.Client
services department helps their clients for the promotion of their business but
other than making ads. They can prepare PR (Public Relations) campaign for
their clients, can arrange exhibition for then and even can do some research on
their demand. They also help their client on designing the wrappers or other
packaging material.

Media Research
Media research in advertising and sales promotion focuses on assessing the
effectiveness of various communication channels. This involves analyzing
audience demographics, media consumption patterns, and the impact of
different channels on message recall and recognition.
Key aspects of Media Research are:
 Audience Analysis: Understand the demographics, interests, and behaviors
of your target audience to tailor advertising messages effectively.
 Media Consumption Patterns: Investigate where your target audience
spends their time-consuming media – whether it's online, on social media,
TV, radio, etc.
 Effectiveness of Channels: Evaluate the performance of different
advertising channels. This includes traditional media like TV and print, as
well as digital platforms such as social media and online advertising.
 Return on Investment (ROI): Measure the impact of advertising
campaigns on sales and overall brand perception to determine the ROI.
 Message Recall and Recognition: Assess how well your target audience
remembers and recognizes your advertising messages. This is crucial for the
success of any promotional effort.
 Competitor Analysis: Understand how competitors are utilizing media for
advertising and sales promotion to identify opportunities and gaps in the
market.
 Consumer Feedback: Gather feedback directly from consumers to
understand their perceptions, preferences, and any improvements needed in
your advertising strategies.
Conclusion
Media research in advertising and sales promotion is a dynamic and essential
process. By blending quantitative data with qualitative insights, businesses can
continually refine their media strategies, ensuring that they not only reach their
target audience but also resonate with them, ultimately driving successful
advertising and sales promotion campaigns.
MODULE 3
Creative Strategy; Advertising appeals; Creative tactics and format; Creation
process – Television and print advertisements; Advertising research.

Creative Strategy
Advertising appeals
Creative tactics and format
Creation process
Television and print advertisements
Advertising research
MODULE 4
Advertising Agency – Function, organizational Set-up; Types of advertising
agencies; Compensation of advertising agencies; Selection of an advertising
agency.

Advertising Agency
Function
organizational Set-up
Types of advertising agencies
Compensation of advertising agencies
Selection of an advertising agency.
MODULE 5
Sales Promotion: Definition, Scope-Sales promotion mix – Developing Sales
promotion Campaign – implementation of sales promotion campaign – Sales
promotion Budget and Sales promotion evaluation.

Sales Promotion
Sales promotion consist of all promotional activities that help in enhancing
sales through non repetitive and one-time communication, where the
product is promoted using short-term attractive initiatives to stimulate its
demand and increase its sales. Sales promotion signifies all those activities
that supplement, co-ordinate and make the efforts of personal selling and
advertising more effective
 Helps to promote immediate sales.
 Short term result
 Can be due to competitive pressure
 Buyer’s expectation
 Low quality of retail selling.
 Irregular and non-recurring activity
 An element of promotion-mix
 Temporary inducement
 Offer many inducements to act by providing extra worth over and above the
actual product.
 It aims at stimulating market demand and consumer purchasing.
 It can be at three levels: consumer promotion, sales promotion, salesforce
promotion.
 From the marketer’s perspective, sales promotion serves three essential roles
it informs, persuades and reminds prospective and current customers and
other selected audiences about a company and its products.
 This strategy is usually brought to use in the following cases:
֍ To introduce new products
֍ Sell out existing inventories,
֍ Attract more customers
֍ To induce present customers to buy more.
֍ To help firm remain competitive
֍ To increase sales in off season
֍ To increase the inventories of business buyers.
֍ To lift sales temporarily.
֍ Spread information about the brand to new customers or new market
֍ Stabilize sales volume and fulfil short-term sales goals
 ֍ Stimulate demand for a short term by making the product look like a
great deal.

Advantages of Sales Promotion:

o It facilitates easy introduction of new products and brands in the market.
o At the recessionary phase of an economy customers become more
prices sensitive. Marketers can sort out this problem with the help of
promotional tools like offering gift or discount coupons, gifts,
contests, sweepstakes, etc., to the customers.
o It has the potential to change consumer behaviours to a large extent.
o A company seeks to obtain greater co-operation from its retailers. It
helps in earning the goodwill of dealers and distributors.
o It can be used effectively with other promotional tools.
o It can be regarded as an excellent approach to boost sales in a short period.
Disadvantages of Sales Promotion:
o Brand image and profit can be hurt by over use of price related sales
promotion tools.
o The second criticism is that such discounts are not real, since the

prices of the products are already inflated.

o There is a feeling that such seasonal sales promotional activities are

mainly intended to sell sub-standard product.

o May have only short-term impact.
o These activities have a short time span, so the results realised are also

short-lived. As soon as these activities offering of various

concessions, free gifts, etc., are withdrawn, the demand also goes
down rapidly.
o Effective sales promotions are easily copied by competitors.

Definition
Any activity that offers incentive for a limited period to induce a desired
response from those who are targeted. - Schoell and Guiltinan
Scope
Consumer oriented promotion
o Samples (effective, expensive)
o Coupons
o Cash refund offer and rebate
o Price packs
o Premium or gifts
o Prizes
o Patronage awards
o Free trials
o Product warranties
o Tie – in promotion
o point- of- purchase
o product demonstration

Trade oriented promotion

o Price- off
o Allowance
o Free goods
o Push money
o Speciality advertising

Sales force promotion

o Bonus
o Sales force contests
o Salesforce
o Sales training manuals
o Sales meeting
o Packets with promotional material
o Sales conference

Sales promotion mix

o Advertising
o Publicity
o Personal selling
o Direct marketing
o Sales promotion
 o Public relation

Developing Sales promotion Campaign

Sales promotion campaign are organised to stimulate quicker or greater
purchase of particular products or services by consumers. It aims at three
important goals:
 The promotional message reaches the targeted audients
 The message is understood by the audience.
 The message stimulates the recipients to take action.

Steps in it:
 Assessment of marketing opportunities
 Defining the promotion objectives
 Deciding the promotion mix.
 Formulating the sales promotion strategies
 Designing sales promotion schemes
 Developing the promotion budget
 Execution of the campaign
 Evaluation of the campaign effectiveness.

Implementation of sales promotion campaign

Sales promotion Budget

One of the most difficult marketing decisions facing companies is how much to
spend on promotion. It is not surprising that industries and companies vary
considerably in how much they spend on promotion. It is important to
determine sales promotion budgets before resorting to sales promotion
activities. The resources and sales potentials are estimated before the
formulation of budgets. Sales promotion budgets should be adequate so that
they achieve the promotion objective.
Affordable method: Many companies set the promotion budget at what they
think the company afford. This method of setting budgets completely ignores
the role of promotion as an investment and the immediate impact of promotion
on sales volume. It leads to an uncertain annual promotion budget, which makes
long range market planning difficult.
Percentage of sales method: Many companies set their promotion expenditures
at a specified percentage of sales or of the sales price. Automobile companies
typically budget a fixed percentage for promotion based on the planned can
price. A number of advantages are claimed for this method.
Percentage-of-sales method means that promotion expenditures are likely to
vary with what the company can afford – which satisfies the financial managers,
who feel that expenses should bear a close relation to the movement of
corporate sales over the business cycle.
This method encourages management to think in terms of the relationship
between promotion cost, selling price and profit per unit.
The major drawback of this method is that it does not provide a logical basis for
choosing the specific percentage except what has been done in the past or what
competitors are doing. It also does not encourage building up the promotion
budget by determining what each product and territory deserves.
Competitive – Parity Method: Some companies set their promotion budget to
achieve share-of-wise parity with their competitors. Two arguments are
advanced for this method. One is that the competitors‟ expenditures represent
the collective wisdom of the industry. The other is that maintaining a
competitive parity helps prevent promotion wars. There are no grounds for
believing that the competition knows better than the company itself what it
should be spending on promotion. Company reputations, resources,
opportunities, and objectives differ so much that their promotion budgets are
hardly a guide. Furthermore, there is no evidence that budgets based on
competitive parity discourage promotional wars from breaking out.
Objective-and-Task-Method: The objective-and-task method calls upon
marketers to develop their promotion budgets by defining their specific
objectives, determining the tasks that must be performed to achieve these
objectives and estimating the costs of performing these tasks. This method has
the advantage of requiring management to spell out its assumptions about the
relationship between rupees spent, exposure levels, trial rates and regular usage.
Promotional Mix: Companies face the task of distributing the total promotion
budget over the four promotion tools of advertising, sales promotion, publicity
and sales force. Within the same industry, companies can differ considerably in
how they allocate their promotional budget. Companies are always searching
for ways to gain efficiency by substituting one promotional tool for another as
its economics become more favourable. Many companies have replaced some
field sales activity with ads, direct mail and telemarketing. Other companies
have increased their sales promotion expenditures in relation to advertising, to
gain quicker sales. The trial-and-error method, past performance and corporate
policies may influence the appropriate promotional mix. Many firms have
increased their sales with the application of appropriate combinations of the
promotion media, sales promotion and personal selling are supported with
publicity. The promotion mix is a variable in the marketing strategy. It should
be clearly decided how fare a particular element should be used in combination
with other promotional methods.
Strategic Approach: The kind of promotional mix employed determines the
promotional strategy. Generally speaking, a particular combination, type or
amount of sales promotion, personal selling, publicity and advertising are
brought into the promotional mix, which
becomes the promotional strategy in the course of implementation. The
marketing strategy as much guides the determination of the promotional
strategy, which may be divided into sale promotion strategy, personal selling
strategy, publicity strategy and advertising strategy. The strategies, sustaining
promotional strategy, developmental promotional strategy or promotional
appropriation.
Push and Pull Strategies: The push and pull promotional strategies may be
used to enhance sales. The push strategy concentrates on middlemen or
retailers who push the sale of the product to the final consumers. This strategy
covers cooperative advertising, attractive terms of sale, coupons and discount
facilities.
The pull strategy is directed toward the final buyers. It persuades the buyers to
go to the sellers to buy. Sales promotion, particularly customer promotion, is an
important form of the pull strategy. Customer promotion, may call for the offer
of samples, money-refund offers, prices-off, premiums and so on.
The push strategy asks the sellers or retailers to attract the layers. Trade
promotion is thus the main form of the push strategy. Trade promotions refers
to buying allowances, free goods, co-operative advertising, push money, sales
contests and so on. The marketing manager has to adopt both these strategies to
promote sales.

Sales promotion evaluation

MODULE 6
Effect of sales promotion on brand equity – Trends is sales promotions – Future
of sales promotions – Future of Marketing Communication

Effect of sales promotion on brand equity

Sales promotions can have both positive and negative effects on brand equity,
depending on how they are executed and the overall marketing strategy. Brand
equity refers to the value and perception that consumers associate with a brand.
Here are some ways in which sales promotions can impact brand equity:

### Positive Effects:

1. Increased Brand Awareness:

- Well-executed sales promotions can lead to increased visibility and
awareness of the brand, especially if the promotions are widely communicated.
This heightened awareness can contribute positively to brand equity.

2. Trial and Adoption:

- Promotions can encourage consumers to try a product or service, leading to
increased adoption. Positive experiences during promotions may contribute to
long-term brand loyalty and positive associations.

3. Perceived Value Enhancement:

- Value-added promotions, such as discounts, bundles, or additional benefits,
can enhance the perceived value of the brand. Consumers may perceive the
brand as offering more value for their money, positively influencing brand
equity.

4. Customer Loyalty:
- Loyalty programs and promotions that reward repeat purchases can foster
customer loyalty. The emotional connection formed through loyalty can
contribute to a positive brand image and higher brand equity.

5. Positive Brand Image:

- Well-designed promotions that align with the brand's image and values can
strengthen positive associations. For example, promotions tied to social or
environmental causes may enhance the brand's reputation and equity.

6. Competitive Advantage:
 - Effective sales promotions can provide a competitive edge by attracting
customers away from competitors. If the promotions are perceived as superior
or more appealing, it can positively impact brand equity.

### Negative Effects:

1. Risk of Brand Dilution:

- Excessive or poorly executed promotions may dilute the brand's perceived
value. If customers become accustomed to constant discounts, it might
undermine the premium image of the brand.

2. Perceived Quality Concerns:

- Deep discounts or frequent promotions might lead consumers to question the
quality of the product. If customers associate the brand primarily with low
prices, it may impact the perception of quality.

3. Short-Term Focus:
- If promotions are primarily focused on short-term gains without considering
long-term brand building, it can result in a temporary boost in sales but may not
contribute to sustained brand equity.

4. Consumer Expectations:
- Continuous promotions may set a precedent, and consumers might come to
expect discounts regularly. This can create challenges when trying to sell
products at regular prices, impacting the perceived value.

5. Brand Erosion in Premium Segments:

- Frequent promotions may erode the brand's premium image, especially if the
brand is positioned in a higher price segment. This can affect its appeal to
consumers seeking exclusivity.

### Balancing Act:

Achieving the right balance between promotional activities and long-term brand
building is crucial. A well-integrated approach that considers the overall brand
strategy, communicates a consistent brand message, and aligns promotions with
the brand's values can help ensure that sales promotions have a positive impact
on brand equity. It's essential to view promotions as part of a broader marketing
strategy aimed at building a strong and enduring brand.

Trends is sales promotions

1. Digital and Social Media Integration:

 - Explanation: Brands are increasingly leveraging digital platforms and social
media for promotions, creating interactive campaigns to engage a broader
audience.
- Example: Running a Twitter hashtag campaign where users share their
experiences with a product, and the brand randomly selects winners for
discounts or freebies.

2. Personalized Promotions:
- Explanation: Tailoring promotions to individual customer preferences and
behaviors, enhancing the relevance and effectiveness of the offer.
- Example: Sending an email with a unique discount code based on a
customer's past purchases or browsing history.

3. Limited-Time Offers:
- Explanation: Creating a sense of urgency by providing time-sensitive
promotions, encouraging customers to make immediate purchase decisions.
- Example: Hosting a 24-hour flash sale with significant discounts on selected
items, motivating customers to act quickly.

4. Loyalty Programs:
- Explanation: Rewarding customers for repeat business, fostering loyalty and
incentivizing them to continue purchasing from the brand.
- Example: A coffee shop offering a free drink for every ten purchased,
encouraging customers to return regularly.

5. Influencer Collaborations:
- Explanation: Partnering with influencers to promote products or services,
leveraging the influencers' reach and credibility to increase brand awareness.
- Example: A fashion brand collaborating with a popular Instagram fashion
influencer for a limited-time discount code promotion.

6. Gamification:
- Explanation: Introducing game-like elements into promotions to make the
experience more enjoyable and engaging for customers.
- Example: A mobile app that lets users spin a virtual wheel to win discounts
or unlock exclusive content after making a purchase.

7. Omni-Channel Promotions:
- Explanation: Creating a seamless experience across various channels,
allowing customers to engage with promotions both online and offline.
- Example: A retail brand offering in-store promotions that can be redeemed
online or vice versa, encouraging customers to interact with the brand in
multiple ways.
8. Cause-Related Marketing:
- Explanation: Aligning promotions with social or environmental causes to
create a positive brand image and resonate with socially conscious consumers.
- Example: A skincare brand donating a percentage of sales during a specific
period to support a charity focused on environmental conservation.

9. Subscription Box Promotions:

- Explanation: Offering exclusive promotions or perks to customers who
subscribe to a brand's products or services on a recurring basis.
- Example: A beauty subscription box providing extra samples or discounts
for subscribers who commit to a year-long subscription.

10. Augmented Reality (AR) Promotions:

- Explanation: Integrating augmented reality technology to enhance the
promotional experience, providing interactive and immersive content.
- Example: A furniture store's mobile app allowing customers to use AR to
visualize how a piece of furniture would look in their homes before making a
purchase.

Future of sales promotions

The future of sales promotion is likely to be shaped by ongoing technological

advancements, changing consumer behaviors, and a focus on sustainability.
Here are some potential trends and factors that could define the future of sales
promotion:

1. AI and Machine Learning Integration:

- Increased use of artificial intelligence (AI) and machine learning (ML) in
sales promotion strategies to analyze vast amounts of customer data, predict
buying patterns, and personalize promotions at an individual level.

2. Blockchain for Transparency:

- Adoption of blockchain technology to enhance transparency in promotions,
particularly in loyalty programs and traceability of products. This can help build
trust among consumers and reduce fraud.

3. Voice Commerce and Smart Devices:

- The rise of voice-activated devices and smart speakers could lead to voice
commerce becoming a significant channel for sales promotions. Brands may
need to adapt their strategies to be accessible through these platforms.

4. Augmented Reality (AR) and Virtual Reality (VR) Enhancements:

 - Further integration of AR and VR technologies to create immersive and
interactive promotional experiences. Customers may virtually try products
before making a purchase, enhancing the online shopping experience.

5. Sustainability-Centric Promotions:
- Continued emphasis on sustainability, with brands incorporating eco-
friendly practices into their promotions. Consumers are likely to respond
positively to promotions that align with their values, encouraging
environmentally conscious choices.

6. Hyper-Personalization and Predictive Analytics:

- Advancements in hyper-personalization using predictive analytics, allowing
businesses to anticipate customer needs and preferences in real-time. This could
lead to more precise and effective promotional strategies.

7. Subscription-Based Promotions:
- Expansion of subscription-based models for promotions, providing
customers with ongoing benefits and exclusive access to new products or
services. This can contribute to long-term customer loyalty.

8. 5G Technology Impact:
- The widespread adoption of 5G technology may facilitate faster and more
seamless mobile experiences, opening up new possibilities for mobile-centric
sales promotions, augmented reality applications, and real-time interactions.

9. Contactless Experiences:
- Continued focus on contactless experiences, especially in the aftermath of
global events like the COVID-19 pandemic. Brands may optimize promotions
for online and mobile platforms, ensuring a seamless and safe customer
experience.

10. Integration of Social Commerce:

- Social media platforms evolving into full-fledged commerce channels, with
brands integrating sales promotions directly into social media experiences.
Social commerce could become a key driver of impulse purchases.

11. Data Privacy Concerns and Consent-Based Marketing:

- Heightened awareness of data privacy may lead to more stringent
regulations. Brands may need to focus on transparent and consent-based
marketing, ensuring that customers are comfortable with the use of their data for
personalized promotions.

12. Dynamic Pricing Strategies:

 - Further refinement of dynamic pricing strategies, incorporating real-time
market conditions, competitor pricing, and customer behavior to optimize
pricing for maximum effectiveness.

As the business landscape evolves, sales promotion strategies will likely adapt
to meet the changing needs and expectations of consumers. Staying agile,
embracing technology, and aligning promotions with societal values will be key
factors in shaping the future of sales promotion.

Future of Marketing Communication

The future of marketing communication is expected to be influenced by

technological advancements, shifting consumer behaviors, and an increased
emphasis on personalization and authenticity. Here are some potential trends
that could shape the future of marketing communication:

1. Artificial Intelligence (AI) and Automation:

- Increased use of AI and automation in marketing communication to analyze
data, personalize content, and automate routine tasks. Chatbots and virtual
assistants may become more sophisticated in delivering personalized and real-
time customer interactions.

2. Hyper-Personalization:
- A move towards even greater levels of personalization, where marketing
messages are tailored to individual preferences, behaviors, and demographics.
This could involve the use of advanced analytics and machine learning
algorithms to deliver highly targeted content.

3. Interactive Content:
- Growth in interactive content formats such as quizzes, polls, augmented
reality (AR), and virtual reality (VR) experiences to engage audiences more
actively. Interactive content encourages participation and can enhance user
experience.

4. Voice Search and Smart Speakers:

 - Optimization of marketing communication for voice search as the use of
smart speakers and voice-activated devices continues to rise. Brands may need
to adapt their content to be discoverable through voice searches.

5. Video Dominance:
- Continued dominance of video content, with short-form videos, live
streaming, and immersive video experiences gaining popularity. Video is likely
to remain a powerful medium for storytelling and brand communication.

6. Influencer Marketing Evolution:

- Evolution of influencer marketing with a focus on authenticity and long-
term relationships. Micro-influencers and nano-influencers may play a more
significant role in reaching niche audiences.

7. Augmented Reality (AR) and Virtual Reality (VR) Integration:

- Greater integration of AR and VR technologies in marketing communication
to provide immersive brand experiences. Virtual showrooms, product try-ons,
and interactive experiences may become more common.

8. Blockchain for Transparency:

- Adoption of blockchain technology to enhance transparency in marketing
communication, particularly in areas such as supply chain transparency,
authentication of products, and securing customer data.

9. Messaging Apps and Conversational Marketing:

- A rise in the use of messaging apps for one-on-one customer
communication. Conversational marketing through chatbots and personalized
messaging can provide immediate and personalized interactions.

10. Ethical and Sustainable Brand Communication:

 - Growing consumer awareness and demand for ethical and sustainable
practices may lead to increased emphasis on transparent and socially
responsible brand communication.

11. Data Privacy and Consent-Driven Marketing:

- Heightened focus on data privacy, with marketers placing a stronger
emphasis on obtaining and respecting user consent. Transparent communication
regarding data usage and privacy policies will be crucial.

12. 5G Technology Impact:

- The widespread adoption of 5G technology may enable faster and more
seamless digital experiences, leading to innovations in real-time content
delivery, augmented reality applications, and improved mobile experiences.

13. Ephemeral Content and FOMO Marketing:

- The continued popularity of ephemeral content (content that is available for
a short duration) on platforms like Instagram and Snapchat. Brands may
leverage FOMO (Fear of Missing Out) marketing to create urgency and
engagement.

14. Community Building and User-Generated Content:

- Increased emphasis on building communities around brands, with user-
generated content playing a central role. Brands may actively involve their
audience in content creation and brand storytelling.

As marketing communication continues to evolve, staying adaptable to

emerging technologies and consumer preferences will be crucial for brands
looking to effectively connect with their target audiences. The key lies in
understanding the dynamic landscape and leveraging innovative approaches to
capture attention in an increasingly competitive and fast-paced environment.