Amity Business School

Promotion
Module V
Marketing Management
Sem 1
Sunetra Saha
 Purposes of Marketing Amity Business School

Communications
• not only informs, but is also used to differentiate
the seller’s products/services
• may also be effective in affecting the price
elasticity of demand (nonprice competition)
• the marketing communications strategy of a firm
must be coordinated and linked with concepts
such as target segments, positioning,
differentiation, and image
• requires a closely coordinated approach
 Marketing Amity Business School

Communications
• Communication by marketers that informs,
persuades, and reminds potential buyers
of a product in order to influence an
opinion or elicit a response.
MARKETING COMMUNICATIONS OBJECTIVES
Amity Business School

• Increase Market Penetration

• Develop Repeat Purchase Behavior
• Establish Customer Relationships
• Increase Rate of Consumption
• Encourage Product Trial
• Stimulate Impulse Buying
• Stimulate Demand
• Differentiate the Product
• Establish a Product Image
• Influence Sales Volume
• Establish, Modify, or Reinforce Attitudes
• Develop Sales Leads
• Stimulate Interest
• Establish Understanding
• Build Support & Acceptance
 ELEMENTS OF THE
Amity Business School
MARKETING COMMUNICATIONS MIX

1. Advertising

5. Direct Marketing
2. Public Relations

3. Sales
4. Personal Selling
Promotion

Integrated Marketing Communications (IMC)

is the strategic integration of multiple means of
communicating with target markets
Selection of the Promotional Mix Amity Business School

• PRODUCT CHARACTERISTICS
– Industrial good/technical good
• Need personal selling; customers want to receive
information, inspect and compare the products
– Consumer package goods/frequently purchase items
• Advertising and sales promotion to reach market
– Unit value
• Low cost must use mass media approaches, with high unit
cost personal selling is effective
– Customization
• Customized often requires personal selling
Selection of the Promotional Mix Amity Business School

• CUSTOMER CHARACTERISTCS
– Industrial versus consumer market
• Consumers are easier to reach (decision maker) through
media sources; industrial buyers typically have a more formal
buying process, requiring personal selling
– Number of customers
• For a small number of customers, personal selling can play a
much more important role
– Geographical dispersion
• Not only affects the type of promotional effort, but the media
choices
Advertising Amity Business School

Impersonal, one-way
mass communication
about a product or
organization that is
paid for by a marketer.
 Advertising Media Amity Business School

Traditional Electronic
Advertising Media Advertising Media

 Television  Internet
 Radio  Electronic mail
 Newspapers  Interactive video
 Magazines
 Books
 Direct mail
 Billboards
 Transit cards
Public Relations Amity Business School

The marketing function that

evaluates public attitudes,
identifies areas within the
organization that the public
may be interested in, and
executes a program of action
to earn public understanding
and acceptance.
 Public Relation Tools Amity Business School

Web Site
Public News
Service
Activities

Speeches
Corporate
Identity
Materials

Special
Audiovisual Events
Materials Written
Materials
Publicity Amity Business School

Public information about a

company, good, or service
appearing in the mass media
as a news item, which is free to
the company.
 Sales Promotion Amity Business School

Free samples

Contests

Premiums

Trade Shows

Popular Tools
Vacation Giveaways
for
Consumer Sales
Promotion Coupons
Personal Selling Amity Business School

Planned presentation to
one or more prospective
buyers for the purpose
of making a sale.
 Personal SellingAmity Business School

Traditional Relationship
Selling Selling
 When to use Amity Business School

Personal Selling
• Tight budget (straight commission)
• Concentrated Market
– Few buyers
– High value product
• Product must be customized
• Personal contact important
• Must demonstrate product
• Product involves trade-in/up
 Characteristics of Amity Business School

Advertising
Advertising

Communication Mode Indirect and non-personal

Communication Control Low
Feedback Amount Little
Feedback Speed Delayed
Message Flow Direction One-way
Message Content Control Yes
Sponsor Identification Yes
Reaching Large Audience Fast
Message Flexibility Same message to all audiences
 Characteristics of Amity Business School

Public Relations
Public Relations

Communication Mode Usually indirect, non-personal

Communication Control Moderate to low
Feedback Amount Little
Feedback Speed Delayed
Message Flow Direction One-way
Message Content Control No
Sponsor Identification No
Reaching Large Audience Usually fast
Message Flexibility Usually no direct control
 Characteristics of Amity Business School

Sales promotion
Sales Promotion

Communication Mode Usually indirect and non-personal

Communication Control Moderate to low
Feedback Amount Little to moderate
Feedback Speed Varies
Message Flow Direction Mostly one-way
Message Content Control Yes
Sponsor Identification Yes
Reaching Large Audience Fast
Message Flexibility Same message to varied target
 Characteristics of Amity Business School

Personal Selling
Personal Selling

Communication Mode Direct and face-to-face

Communication Control High
Feedback Amount Much
Feedback Speed Immediate
Message Flow Direction Two-way
Message Content Control Yes
Sponsor Identification Yes
Reaching Large Audience Slow
Message Flexibility Tailored to prospect
 Goals and Tasks Amity Business School

of Promotion
Informing Reminding

Target
Audience

Persuading
 Product Life Cycle Amity Business School

Intro Growth Maturity Decline

Stage Stage Stage Stage
Dollars

Product
Category
Sales
0

Time
 Goals and Tasks Amity Business School

of Promotion
Informing Reminding

PLC Stages: PLC Stages:

Introduction Maturity
Early Growth Target
Audience

PLC Stages:
Growth
Maturity Persuading
 Goals and Tasks Amity Business School

of Promotion

Informative Objectives
 Increase awareness

 Explain how product works

 Suggest new uses

 Build company image

 Goals and Tasks Amity Business School

of Promotion

Persuasion Objectives
 Encourage brand switching

 Change customers’ perception of

product attributes

 Influence buying decision

 Persuade customers to call

 Goals and Tasks Amity Business School

of Promotion

Reminder Objectives
 Remind customers that product
may be needed

 Remind customers where to buy product

 Maintain customer awareness

 Factors Affecting the Amity Business School

Choice of Promotional Mix

Nature of the Product

Stage in PLC

Target Market Factors

Type of Buying Decision

Promotion Funds

Push or Pull Strategy

 Product Life Cycle and the Amity Business School

Promotional Mix
Maturity
Sales ($)

Decline
Introduction Growth

Time
-Light -Heavy Ads -Advertising -Reminder -Ads & PR
Advertising and PR for Ads Decrease
-PR for brand -Limited
-Pre- Awareness Loyalty -Sales Sales
Introduction Promotion Promotion
Publicity -Sales -Personal -Personal
Promotion Selling for -Personal Selling for
for Trial Distribution Selling Distribution
 Target Market Amity Business School

Characteristics
FOR:
• Widely scattered
market
• Informed buyers
• Repeat buyers
Advertising

Sales Promotion

Less Personal Selling

 Type of Buying Decision Amity Business School

Advertising
Routine
Sales Promotion
Type of
Buying Decision Advertising
Affects Not Routine
Promotional or Complex Public Relations
Mix Choice

Complex Personal Selling

 Integrated Marketing Amity Business School
Communications
• A strategic business process used to plan, develop,
execute, evaluate coordinated communication within an
organizations publics, requiring:
– Awareness of audience’s media habits and
preferences
– Understanding of audience’s knowledge and beliefs
about the product
– Use of coordinated media blend linked to a specific
objective
– Key is a single, coordinated message and image
thrust
 Basic Communication Elements Amity Business School

• A message
• A source of the message
• A communication channel
• A receiver

Communication process components:

• Encoding • Response
• Decoding • Feedback
• Noise
 The Communications Amity Business School

Process
• communications requires a channel, with a sender and
a receiver, to handle the message
• a message is first encoded by the sender
• the communications channel is then used to deliver
the message to the sender
• the sender decodes the message, based on his or her
frame of reference and experience
• may be a need for a response and feedback
• the process can be interrupted by noise
 MESSAGE
The Process CHANNEL Amity Business School
Select the media
ENCODING THE or other vehicle DECODING
MESSAGE to carry the message THE MESSAGE
Create an ad, Receiver compares
display, or sales message to
presentation frame of reference
NOISE
Competing ads, MESSAGE
MESSAGE AS
INTENDED
other AS RECEIVED
distractions Knowledge, beliefs,
A promotional idea in
or feelings of
marketer’s mind
receiver changed
FEEDBACK RESPONSE
Impact measured Ranges from simple
using research, sales, awareness to
or another measure purchase
 Inside the Communications Amity Business School

Process
• The act of encoding allows that messages can take
many forms.
• The methods of transmitting a message are limited
only by the imagination and creativity of the sender.
• How the message is decoded depends on its form
and the capability and interest of the recipient.
• Without measurable objectives, the effectiveness of
a message cannot be evaluated.
 Considerations in Designing Amity Business School

Marketing Communications Mix

• Target market
– Readiness to buy, knowledge, liking,
preference, conviction (belief)
– Purchase
– Geographic scope
– Type — consumer or middleman
– Concentration
 More Considerations Amity Business School

• Nature of the product

– Unit value
– Degree of customization
– Presale and postsale service
• Stage of the product life cycle
• Amount of money available for promotion
 Push and Pull Amity Business School

Strategies
PUSH STRATEGY (Office Depot and Office Max)

Manufacturer Wholesaler Retailer Consumer

promotes to promotes to promotes to buys from
wholesaler retailer consumer retailer

Orders to manufacturer
PULL STRATEGY (Coke and Pepsi)
Consumer Retailer Wholesaler
Manufacturer
demands demands demands
promotes to
product product product from
consumer
from retailer from wholesaler manufacturer

Orders to manufacturer
 Direct Marketing Amity Business School

• Techniques used to get consumers to

make a purchase from their home, office
or other nonretail setting
– Direct mail, catalogs, mail order,
telemarketing, electronic retailing
 TECHNIQUES OF DIRECT MARKETING
Amity Business School

Electronic Direct Mail

Media

Telemarketing Direct Selling

Print Broadcast
Media Media