{"id":292,"date":"2018-11-01T11:50:00","date_gmt":"2018-11-01T11:50:00","guid":{"rendered":"http:\/\/mgmtp14.epgpbooks.inflibnet.ac.in\/?post_type=chapter&#038;p=292"},"modified":"2018-11-01T12:33:04","modified_gmt":"2018-11-01T12:33:04","slug":"promotion-decision","status":"publish","type":"chapter","link":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp14\/chapter\/promotion-decision\/","title":{"rendered":"Promotion Decision"},"content":{"raw":"<div>\r\n\r\n<strong>\u00a0 \u00a0 1.\u00a0<\/strong><strong>Learning Outcome<\/strong>\r\n\r\nAfter completing this module, the students will be able to:\r\n<ul>\r\n \t<li>Describe the concept of promotion<\/li>\r\n \t<li>Explain various components of promotion mix.<\/li>\r\n \t<li>Distinguish push and pull strategy of promotion.<\/li>\r\n \t<li>Suggest how effective promotion strategy may be developed<\/li>\r\n<\/ul>\r\n<strong>\u00a0 \u00a0 2.\u00a0<\/strong><strong>Meaning of Promotion<\/strong>\r\n<p style=\"text-align: justify\"><strong>\u00a0<\/strong><\/p>\r\n<p style=\"text-align: justify\">Promotion is a process of marketing communication which attempts to inform, persuade and remind its target markets, through personal and impersonal means, about company and its brand. It acts as a powerful tool and creates a link between marketer (company) and consumer. Marketing communication is necessary as superb product, best package and fair price cannot ensure sale of product unless people are made aware of its existence. Promotion can stimulate demand, capture it from rivals and maintain it.<\/p>\r\n<strong>\u00a0<\/strong>\r\n\r\n<strong>3.\u00a0<\/strong><strong>Objectives of Promotion<\/strong>\r\n\r\n<strong>\u00a0<\/strong>\r\n<p style=\"text-align: justify\">Promotion is an important marketing strategy. Promotion aims at communicating marketing information to consumers and sellers. It persuades and convinces the buyer to influence his behaviour and prompt him to take the desired action. The key objectives of promotion can be summarized as to inform, persuade and remind:<\/p>\r\n<p style=\"text-align: justify\">(i)\u00a0<strong>To inform <\/strong>:\u00a0 Company makes use of promotional tools to inform target market about:<\/p>\r\n&nbsp;\r\n\r\n(a)\u00a0New product, brand, new pack size or new feature of product\r\n\r\n(b) Reduction in price, new offer like buy one get one or more quantity at same price\r\n\r\n(c)\u00a0Opening of new outlet in the region like Reliance, Big Bazar\r\n\r\n<span style=\"text-align: initial;font-size: 1em\">(d) Working of product though <\/span>demonstration\r\n\r\n<span style=\"text-align: initial;font-size: 1em\">(e) New packaging of the product<\/span>\r\n\r\n<span style=\"text-align: initial;font-size: 1em\">(f) New or multiple uses of the product<\/span>\r\n\r\n<span style=\"text-align: initial;font-size: 1em\">(g) Introduction of new technologies in the market<\/span>\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(h)\u00a0<\/span>Genuineness<span style=\"text-align: initial;font-size: 1em\"> of product or company when some wrong or negative perceptions have emerged as happened in case of Maggi Noodles<\/span><\/p>\r\n<span style=\"text-align: initial;font-size: 1em\">(i)\u00a0<\/span>Competitive<span style=\"text-align: initial;font-size: 1em\"> advantage of the product or service<\/span>\r\n\r\n<\/div>\r\n<div>\r\n\r\n\u00a0 \u00a0 (ii)\u00a0<strong>To persuade<\/strong>: Promotional strategies aim at influencing buyer\u2019s behaviour to take a desired action. It focuses on :\r\n\r\n&nbsp;\r\n\r\n(a) Insisting consumers to buy now as happens in case of limited stock offers\r\n\r\n(b) Initiating brand switching in the favour of company i.e. capturing customers of rival firms\r\n\r\n(c) Stimulating demand and creating brand preference\r\n\r\n(d) Insisting consumer to stay loyal to brand i.e. creating brand loyalty\r\n\r\n&nbsp;\r\n<p style=\"text-align: justify\">(iii)\u00a0<strong>To remind <\/strong>: There is stiff competition in consumer goods market and companies have to consistently remind the customer about brand, product and its competitive advantage. The companies aim to:<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\">(a) Remind occasion of use as Cadbury chocolates advertisement reminds customer about its use on Raksha Bandhan<\/p>\r\n<p style=\"text-align: justify\">(b) Remind brand to maintain brand recall<\/p>\r\n<p style=\"text-align: justify\">(c) Remind need to buy to fulfil near future demand. This is particularly true in case of seasonal goods like woollen clothes, water coolers.<\/p>\r\n&nbsp;\r\n\r\n<strong>4.\u00a0<\/strong><strong>Promotion Mix<\/strong>\r\n\r\n&nbsp;\r\n<p style=\"text-align: justify\">Promotion mix consists of a group of communication tools which marketing executives use to communicate with their target audience. The marketer tries to create a most favourable blend of all promotion elements to influence buyer\u2019s behaviour and his process of decision making. Sales can be promoted through an effective promotion mix.<\/p>\r\n<strong>\u00a0<\/strong>\r\n<p style=\"text-align: justify\">Advertising, sales promotion, personal selling, public relations are important elements of promotion mix. Different elements of promotion-mix are used by the companies depending on the marketing objectives and certain other factors.<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong>4.1<\/strong>\u00a0<strong>Advertising <\/strong>: Advertising is paid form of communication of goods, services or ideas by an identified sponsor which is directed at mass audience. The sponsor\/ advertiser (seller) pays for time or space used in media in which his advertisement appears. Magazines, newspapers, radio, television, posters, hoardings, direct mail are different media used by advertisers to influence and induce the viewers, readers or listeners to buy the advertised products.<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong>4.2<\/strong>\u00a0<strong>Sales Promotion<\/strong>: Sales promotion refers to short term special selling efforts to accelerate sales. It is a promotional activity which provides monetary and non-monetary incentives to spark an immediate reaction from target consumers (consumer sales promotion) and dealers or firm\u2019s salesperson (Trade promotions). Consumer Sales promotion pulls a product or service by stimulating demand and trade promotions push a product or service by arousing enthusiasm among channel members to sell more of a particular brand. Sales promotion influences\u00a0<span style=\"text-align: initial;font-size: 1em\">purchase <\/span>behaviour<span style=\"text-align: initial;font-size: 1em\"> and provides immediate incentive to buy. Sales promotion tools provide <\/span>marvellous<span style=\"text-align: initial;font-size: 1em\"> results when supported by advertising and personal selling.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">4.3<\/strong><span style=\"text-align: initial;font-size: 1em\">\u00a0<\/span><strong style=\"text-align: initial;font-size: 1em\">Personal Selling<\/strong><span style=\"text-align: initial;font-size: 1em\">: Personal selling refers to direct personal contact between a sales representative and one or more prospective customers to influence the customer in a purchase situation. It involves securing information about buyer\u2019s unsatisfied needs and wants by the salesman and supplying information about goods and services to the prospective buyer. Sales talk and product demonstrations play an important role in personal selling.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">4.4<\/strong><span style=\"text-align: initial;font-size: 1em\">\u00a0<\/span><strong style=\"text-align: initial;font-size: 1em\">Public relations and Publicity: <\/strong><span style=\"text-align: initial;font-size: 1em\">Public relations and publicity aim at protecting and promoting <\/span>company\u2019s<span style=\"text-align: initial;font-size: 1em\"> image through <\/span>number<span style=\"text-align: initial;font-size: 1em\"> of programmes and activities. Publicity and public relations increase <\/span>effectiveness<span style=\"text-align: initial;font-size: 1em\"> of promotion as consumers are now more interested in evaluating company brand or product on the basis of what is written about it in the media.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">4.4.1.\u00a0Publicity <\/strong>:<span style=\"text-align: initial;font-size: 1em\"> It is <\/span>non personal<span style=\"text-align: initial;font-size: 1em\"> communications through media such as interviews, press conference, photographs, corporate film, press release. Media space used for publicity is not bought by the sponsor. American Marketing Association has defined Publicity as \u201cnon-personal stimulation of demand for a product, service, or business unit by planting commercially significant news about it in a published medium or obtaining <\/span>favourable<span style=\"text-align: initial;font-size: 1em\"> presentation of it on radio, television, or stage that is not paid for by the sponsor\u201d1.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">4.4.2 Public Relations<\/strong><span style=\"text-align: initial;font-size: 1em\">: It includes certain activities like event sponsorship, <\/span>cause<span style=\"text-align: initial;font-size: 1em\"> related marketing programmes and consumer training programmes.<\/span><\/p>\r\n\r\n<ul>\r\n \t<li style=\"text-align: justify\"><em style=\"text-align: initial;font-size: 1em\">Event sponsorship<\/em><span style=\"text-align: initial;font-size: 1em\">: Companies usually sponsor those events which are sufficiently newsworthy to attain wide coverage. They can become part of well-known events like film award functions, cricket match or they can create an event exclusively for the company or brand like Bournvita Quiz contest. Those events create stronger ties with <\/span>brand<span style=\"text-align: initial;font-size: 1em\">.<\/span><\/li>\r\n \t<li style=\"text-align: justify\"><em style=\"text-align: initial;font-size: 1em\">Consumer education and training programmes <\/em>:<span style=\"text-align: initial;font-size: 1em\"> Companies organize seminars and training programme to educate customers and to create brand preference. For example, LG <\/span>run<span style=\"text-align: initial;font-size: 1em\"> Microwave cooking classes to educate <\/span>customer<span style=\"text-align: initial;font-size: 1em\"> about the use of <\/span>microwave<span style=\"text-align: initial;font-size: 1em\"> oven.<\/span><\/li>\r\n \t<li style=\"text-align: justify\"><em style=\"text-align: initial;font-size: 1em\">Social Cause related marketing<\/em><span style=\"text-align: initial;font-size: 1em\">: Under <\/span>corporate<span style=\"text-align: initial;font-size: 1em\"> social responsibility campaign, companies usually support social cause programmes and donate large funds for these programmes to create a <\/span>favourable<span style=\"text-align: initial;font-size: 1em\"> image in the mind of <\/span>target<span style=\"text-align: initial;font-size: 1em\"> audience.<\/span><\/li>\r\n<\/ul>\r\n<\/div>\r\n<div>\r\n<p style=\"text-align: justify\">\u00a0 \u00a0 Each element of promotion mix differs in its ability to influence buyer\u2019s behaviour. Hence, it is important to analyse the utility as well as limitation of each element before using it. Moreover, other factors like promotion objectives, funds, cost and nature of product should also be considered while selecting promotion tool to attain the desired results.<\/p>\r\n&nbsp;\r\n\r\n<strong>5.\u00a0<\/strong><strong>Difference between Advertising and Sales Promotion<\/strong>\r\n\r\n<\/div>\r\n<p style=\"text-align: justify\"><img class=\"alignnone wp-image-297 size-full\" src=\"http:\/\/mgmtp14.epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/sites\/80\/2018\/11\/Untitled-16.png\" alt=\"\" width=\"820\" height=\"93\" \/><\/p>\r\n\r\n<div>\r\n\r\n<img class=\"alignnone wp-image-298 size-full\" src=\"http:\/\/mgmtp14.epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/sites\/80\/2018\/11\/Untitled-17.png\" alt=\"\" width=\"821\" height=\"428\" \/>\r\n\r\n<em>\u00a0Marketing Definitions : A Glossary of Marketing Terms<\/em>, compiled by the Committee on Definitions of the American Marketing association, R. S. Alexander, Chairman, 1960.\r\n\r\n&nbsp;\r\n\r\n<strong>6.\u00a0<\/strong><strong>Difference between Advertising and Personal Selling<\/strong>\r\n\r\n&nbsp;\r\n\r\n<img class=\"wp-image-299 size-full aligncenter\" src=\"http:\/\/mgmtp14.epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/sites\/80\/2018\/11\/Untitled-18.png\" alt=\"\" width=\"823\" height=\"291\" \/>\r\n\r\n&nbsp;\r\n\r\n<strong>7.\u00a0<\/strong><strong>Promotion as a tool of communication<\/strong>\r\n\r\n<strong>\u00a0<\/strong>\r\n<p style=\"text-align: justify\">Promotion is a tool of marketing communication. It presents messages to target market through various channels of communication. The messages are meant to create favourable response of target audience towards company\u2019s product or service. The company attempts to get feedback from consumers to know effectiveness of communication. Consumer\u2019s response, reaction and interpretation of message can be understood with the help of audience surveys, dealers, salesman or other consumer information channel. This feedback helps the company in improving and modifying its product or service. The marketing communication process comprises of:<strong>\u00a0<\/strong><\/p>\r\n(i)\u00a0 \u00a0Sender\r\n\r\n(ii)\u00a0 Encoding of message\r\n\r\n(iii) Message channel\r\n\r\n(iv) Decoding of message\r\n\r\n(v)\u00a0 Receiver\r\n\r\n(vi) Feedback\r\n\r\n&nbsp;\r\n<p style=\"text-align: justify\">Communication process starts from sender. Sender means the person who intends to convey his ideas and thoughts. In marketing, sender is the firm who tries to inform, persuade and remind the target market about firm, its product offerings and services.<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Ideas are encoded by the sender to create <\/span>message<span style=\"text-align: initial;font-size: 1em\">. In marketing, <\/span>message<span style=\"text-align: initial;font-size: 1em\"> can be encoded by marketer or advertising agency. Encoding means conversion of ideas into a message by using words, symbols, or sounds. <\/span>Marketer<span style=\"text-align: initial;font-size: 1em\"> should encode the message in a way that can <\/span>appeal<span style=\"text-align: initial;font-size: 1em\"> five senses. <\/span>Message<span style=\"text-align: initial;font-size: 1em\"> is transmitted through some channel such as T.V., Radio, store displays, phone, press, product demonstration and so on. <\/span>Marketer<span style=\"text-align: initial;font-size: 1em\"> must select the channel which is most suitable to the message. <\/span>Message<span style=\"text-align: initial;font-size: 1em\"> is always directed to someone. In marketing communication, it is meant for the target group to whom marketers want to influence. The receiver\/ customer is supposed to have received <\/span>message<span style=\"text-align: initial;font-size: 1em\"> when it enters his frame of reference. The channel distortions, also known as media noise, can interfere with the reception of <\/span>message<span style=\"text-align: initial;font-size: 1em\">. <\/span>Message<span style=\"text-align: initial;font-size: 1em\"> may get distorted due to light, climate, physical surrounding or competitive advertisement. There can be <\/span>ineffective<span style=\"text-align: initial;font-size: 1em\"> reception of message due to <\/span>customer\u2019s<span style=\"text-align: initial;font-size: 1em\"> state of mind or physical discomfort. The target market decodes the message as per its knowledge and understanding. Decoding is <\/span>interpretation<span style=\"text-align: initial;font-size: 1em\"> of the language, tone <\/span>and<span style=\"text-align: initial;font-size: 1em\"> symbols of the message. Interpretation of <\/span>message<span style=\"text-align: initial;font-size: 1em\"> is affected by age, gender, culture, attitude <\/span>and<span style=\"text-align: initial;font-size: 1em\"> belief of the consumer. Each consumer finds his own meaning to the message.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">It is important to take feedback to assess <\/span>effectiveness<span style=\"text-align: initial;font-size: 1em\"> of promotion as <\/span>communication<span style=\"text-align: initial;font-size: 1em\"> tool. Feedback indicates who are the receivers, how they have interpreted the message and what are the responses. The feedback of communication will be quick and direct in case of interpersonal communication. However, in <\/span>case<span style=\"text-align: initial;font-size: 1em\"> of impersonal communication, it will be indirect. In such cases, feedback can be obtained through audience surveys, consumer information channels or marketing research. The effectiveness of communication can be measured through <\/span>number<span style=\"text-align: initial;font-size: 1em\"> of people who saw the communication, recall of communication, brand awareness and purchase intention.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Promotion as a communication tool becomes effective when marketer understands consumer\u2019s frame of reference, encodes the message as per customer\u2019s attitudes and beliefs, uses <\/span>suitable<span style=\"text-align: initial;font-size: 1em\"> channel to convey <\/span>message<span style=\"text-align: initial;font-size: 1em\"> as well as to ensure <\/span>best<span style=\"text-align: initial;font-size: 1em\"> reception and secures feedback. Marketers must attune themselves to the responses and adjust their communication programmes.<\/span><\/p>\r\n\r\n<\/div>\r\n<div>\r\n\r\n<strong>\u00a0 \u00a0 8.\u00a0<\/strong><strong>Promotion as a tool to stimulate demand<\/strong>\r\n\r\n<strong>\u00a0<\/strong>\r\n<p style=\"text-align: justify\">Promotion tries to influence consumer\u2019s attitudes, beliefs, preferences and buying behaviour. The effectiveness of promotion lies in consumer\u2019s response to messages which may be represented by actual purchase or change in behaviour.<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\">Response Hierarchy Models developed by management thinkers or experts are used to study how consumers respond to messages. These models outline the different stages of consumer involvement and response to the messages.<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\">The models assume that consumers respond to marketing message in <em>Cognitive<\/em> (learn), <em>Affective <\/em>(Feel) and<em> Connative <\/em>(do) sequence. Attention or awareness is the first stage of response. Marketers through promotion try to draw the attention of consumers to messages. But it alone will not lead to action. Marketers through personal selling or sales promotion create opportunities for customers to get a feel of the product. It creates interest and stimulates their desire to acquire the products. Through different promotional tools customers are convinced of product\u2019s superiority over competitor\u2019s products which compel them to act.<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\">It must be remembered that these models do not explain how promotion affects all types of purchase situations. But still these models are popular and are used to measure effectiveness of promotional efforts. These are also useful to evaluate effectiveness of each component of\u00a0<span style=\"text-align: initial;font-size: 1em\">promotion-mix and media-mix in terms of their ability to create demand or influence buyers\u2019 <\/span>behaviour<span style=\"text-align: initial;font-size: 1em\">.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">9.\u00a0<\/strong><strong style=\"text-align: initial;font-size: 1em\">Factors affecting promotion mix<\/strong><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Promotion is <\/span>important<span style=\"text-align: initial;font-size: 1em\"> tool to create and maintain demand. <\/span>Favourable<span style=\"text-align: initial;font-size: 1em\"> corporate image can be developed through promotion. There are various promotion tools available. A company should use an appropriate tool by considering <\/span>following<span style=\"text-align: initial;font-size: 1em\"> factors:<\/span><\/p>\r\n\r\n<ul>\r\n \t<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Nature of Product: <\/strong><span style=\"text-align: initial;font-size: 1em\">Industrial products are customized to <\/span>buyer\u2019s<span style=\"text-align: initial;font-size: 1em\"> specification. Personal selling is best suited to sell these products. Advertising will not serve <\/span>purpose<span style=\"text-align: initial;font-size: 1em\"> in such cases. However, some companies dealing in industrial goods have used advertising to build or protect corporate image. Industrial goods can be promoted through sales engineer or journals. Consumer products can be categorized as <\/span>convenience<span style=\"text-align: initial;font-size: 1em\">, shopping or specialty products. Specialty products should be promoted through selective media like journals, personal selling. Convenience products are mass selling consumer goods that can be promoted through radio, newspaper or television. Even sales promotions can be initiated for such products.<\/span><\/li>\r\n \t<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Target Market : <\/strong><span style=\"text-align: initial;font-size: 1em\">Sex, age <\/span>and<span style=\"text-align: initial;font-size: 1em\"> background of <\/span>target<span style=\"text-align: initial;font-size: 1em\"> market will determine the use of <\/span>promotion<span style=\"text-align: initial;font-size: 1em\"> tool. Toys or cosmetics can be promoted through television. Press media is not suitable to sell products which are meant for children. A convenience product targeted at <\/span>rural<span style=\"text-align: initial;font-size: 1em\"> market would call for the use of customer education. In such markets, advertising supported by personal selling will help in boosting <\/span>the sales<span style=\"text-align: initial;font-size: 1em\">. It will serve as <\/span>communication<span style=\"text-align: initial;font-size: 1em\"> tool and also support the distribution channels. Niche market products are meant for <\/span>loyal<span style=\"text-align: initial;font-size: 1em\">, educated and concentrated group of customers. The promotion strategy <\/span>in this case<span style=\"text-align: initial;font-size: 1em\"> will focus on building long term relationship. Selective and informative advertising will work for such <\/span>product<span style=\"text-align: initial;font-size: 1em\">.<\/span><\/li>\r\n \t<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Stages in Product Life Cycle : <\/strong><span style=\"text-align: initial;font-size: 1em\">Promotional strategy will be influenced by product\u2019s stage in life cycle. During the introductory stage, there is <\/span>need<span style=\"text-align: initial;font-size: 1em\"> to create awareness and knowledge about <\/span>product<span style=\"text-align: initial;font-size: 1em\">. Promotion strategy should be such as to trigger a need and establish product utility. Product displays and publicity supported by advertising can be relied upon to promote such <\/span>product<span style=\"text-align: initial;font-size: 1em\">.<\/span><\/li>\r\n<\/ul>\r\n<\/div>\r\n<div>\r\n<p style=\"text-align: justify\">\u00a0 \u00a0 The purpose of promotion will be different when product reaches growth stage. As the product is known to the consumers, therefore, the focus will be to build brand preference through advertising. In this case, there will be shift from creating awareness to increasing customer base. Public relations and sales promotion can be used to support advertising.<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\">Product at maturity stage faces tough competition and declining sale. To retain customers for matured product, firms can focus on consumer sales promotion and trade promotion. Huge expenditure on advertising will prove a sheer waste at this stage.<\/p>\r\n&nbsp;\r\n\r\nAs product move to decline stage, only sales promotion techniques can be resorted to.\r\n<ul>\r\n \t<li style=\"text-align: justify\"><strong>Availability of Funds : <\/strong>The new entrants may lack funds to use advertising, personal selling, or sales promotion tools. They can go for publicity to create awareness among customers. If established firms do not face any financial crunch they can adopt any promotion tool.<\/li>\r\n \t<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Type of buying decisions<\/strong><span style=\"text-align: initial;font-size: 1em\">: <\/span>Promotional<span style=\"text-align: initial;font-size: 1em\"> tool is determined by the type of buying decisions. Complex decisions require assurance and conviction. Personal selling is best\u00a0<\/span>suited in such cases. Even company\u2019s<span style=\"text-align: initial;font-size: 1em\"> website can also play a significant role in providing information and assisting buyers in decision making.<\/span><\/li>\r\n<\/ul>\r\n<\/div>\r\n<div>\r\n<p style=\"text-align: justify\">\u00a0 \u00a0Simple routine nature buying decisions require reminder communication to maintain brand recall. Consumer sales promotions are used to keep customer interested in brand. Trade promotion can also be used to get good shelf space at retail outlet.<\/p>\r\n\r\n<ul>\r\n \t<li style=\"text-align: justify\"><strong>Push and Pull Strategy : <\/strong>Push strategy aims at assisting dealers in increasing sales whereas the purpose of pull strategy is to encourage customers or end users. A company that wants to use pull strategy should use advertising or sales promotion. But a company which is opting push strategy must go for personal selling. However, a company can use a combination of different promotion tools when push and pull strategy is followed by it.<\/li>\r\n<\/ul>\r\n<strong>\u00a0 \u00a0 10.\u00a0<\/strong><strong>Promotion strategy<\/strong>\r\n\r\n<strong>\u00a0<\/strong>\r\n<p style=\"text-align: justify\">Strategy lays down the broad principles and programmes by which company tries to secure an advantage over competitors. Promotion strategy chalks out the communication programme to be followed for achieving marketing objectives. Promotion strategy aims at stimulating demand, creating brand awareness and developing brand loyalty. A company can use a pull or push promotion strategy or it can use a combination of both.<\/p>\r\n<strong>\u00a0<\/strong>\r\n<p style=\"text-align: justify\">A <em>pull strategy<\/em> relies heavily on marketing communications to stimulate demand and \u2018pull\u2019 the customer into the retail store. Under pull strategy, all efforts of promotion are directed at the target market, i.e. consumers and then consumers demand the desired products from the retailer. The retailers in turn demand the products from the wholesalers who are compelled to stock those products by approaching the manufacturer. Thus, the request for the product starts from consumers and finally moves to the manufacturer.<\/p>\r\n<strong>\u00a0<\/strong>\r\n<p style=\"text-align: justify\">A <em>push strategy<\/em> relies heavily on the distribution channel to stimulate demand by \u2018pushing\u2019 the product. Under push strategy, manufacturer directs all promotional efforts primarily on the middlemen i.e., wholesalers and retailers. Product is pushed through the distribution channel. So flow of promotion and goods move from the producer to the wholesaler and from the wholesaler to the retailer and from the retailer to the consumer.<\/p>\r\n<strong>\u00a0<\/strong>\r\n<p style=\"text-align: justify\">Most consumer goods manufacturers generally use a push-pull (mix) strategy to sell their products. The proportion of pull and push may differ according to the requirements of market situation. Salesmen are used to push the product through the marketing channel, while advertising and sales promotion pull the customers and support personal selling to accelerate sales. Thus, all tools of promotion work together.<\/p>\r\n&nbsp;\r\n\r\n<strong>10.1<\/strong>\u00a0<strong>Guidelines for designing effective promotion strategy<\/strong>\r\n\r\n&nbsp;\r\n<p style=\"text-align: justify\">The strategy is competitive policy. It lays down the direction by which an organization tries to secure competitive edge, exhibit attractiveness to buyer and make efficient use of firm\u2019s resources. A promotion strategy should be intelligently formulated and must pass through various stages as summarized below:<\/p>\r\n\r\n<ul>\r\n \t<li style=\"text-align: justify\"><strong>Identify the target audience: <\/strong>The marketing executive should decide the target audience (in terms of usage and loyalty). Typical purchase behaviour of target audience should be assessed. Marketers may find loyal users, brand switchers, infrequent users of product or service. Different promotion strategy should be used for different categories of buyers.<\/li>\r\n \t<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Determine the objective <\/strong>:<span style=\"text-align: initial;font-size: 1em\"> It is essential to lay down the objective of <\/span>promotion<span style=\"text-align: initial;font-size: 1em\"> strategy. The purpose may be to create <\/span>need<span style=\"text-align: initial;font-size: 1em\">, build awareness, provide knowledge, develop liking,\u00a0<\/span>build customer preference, develop conviction (confidence) or secure purchase. The most effective strategy can achieve multiple objectives.<\/li>\r\n \t<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Design the promotion message<\/strong><span style=\"text-align: initial;font-size: 1em\">: It is important to decide what to say (message content), how to say(message expressed) and who should say to attain <\/span>a desired<span style=\"text-align: initial;font-size: 1em\"> response. The management usually wants to convey appeals, themes or ideas through message for brand positioning and establishing points of difference. Therefore, <\/span>message<span style=\"text-align: initial;font-size: 1em\"> may relate to features and performance of product or services or image of <\/span>brand<span style=\"text-align: initial;font-size: 1em\"> as popular or traditional. The target customer may expect the message to be providing ego, sensory or rational satisfaction. For example, the phrase utterly buttery delicious in <\/span>message<span style=\"text-align: initial;font-size: 1em\"> for Amul Butter provides sensory satisfaction. Therefore, <\/span>message<span style=\"text-align: initial;font-size: 1em\"> should be carefully framed to <\/span>appeal<span style=\"text-align: initial;font-size: 1em\"> the audience. It is equally important that message should be expressed properly which demands creativity. The message can be expressed as informational appeal describing product or service features and uses or it can be transformational appeal describing non-product related image or benefit. Message in such appeals may depict the kind of persons using that brand or kind of experience resulting from the use of that brand. These type messages influence emotions that will motivate purchase. Further, the decision regarding message source (i.e. who should say the message) is important. Big business houses usually hire celebrities for their brand endorsements as they know that these popular sources have higher attention and recall value. Credibility, likeability, expertise <\/span>and<span style=\"text-align: initial;font-size: 1em\"> trustworthiness of message source can influence target audience response Hence, it should be carefully decided. The promotion message should be relevant, useful and credible to stimulate a better response.<\/span><\/li>\r\n \t<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Selecting appropriate channel of promotion <\/strong>:<span style=\"text-align: initial;font-size: 1em\"> It is important to choose <\/span>appropriate<span style=\"text-align: initial;font-size: 1em\"> channel to convey message after considering certain factors. The prevailing tough competition has made it difficult to rely upon just one channel. The marketers now prefer to use promotion mix to retain and attract customers. These involve personal communication channels like salesmanship or personal selling which are highly individualistic in nature and also impersonal channels like T.V., Radio, sales promotion which are directed at more than one person.<\/span><\/li>\r\n \t<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Establishing the promotion budget : <\/strong><span style=\"text-align: initial;font-size: 1em\">The company must estimate the likely expenditure on promotional activities. Industries or companies vary considerably on their expenditures. It may be high for consumer goods whereas low for industrial goods. Different methods are available to determine <\/span>promotion<span style=\"text-align: initial;font-size: 1em\"> budget. The company should use an appropriate method.<\/span><\/li>\r\n<\/ul>\r\n<\/div>\r\n<div>\r\n<p style=\"text-align: justify\">\u00a0 \u00a0 Among other things, it is equally important to take feedback and measure the effectiveness of promotion strategy so as to make necessary changes in communication programme and product offerings or services. Effectiveness of promotion can be measured in terms of increase in demand, brand awareness, or purchase intention.<\/p>\r\n&nbsp;\r\n\r\n<strong>11.\u00a0<\/strong><strong>Determining promotion budget<\/strong>\r\n\r\n<strong>\u00a0<\/strong>\r\n<p style=\"text-align: justify\">Setting promotion budget is an important decision. It involves financial commitments and has effect on sales and company\u2019s image. There are lots of methods available to determine promotion budget. Some of them have been described as follows:<\/p>\r\n\r\n<ul>\r\n \t<li style=\"text-align: justify\"><strong>Affordable <\/strong>: In this method, a company sets promotion budget on the basis of funds available. This method completely overlooks the role of promotion in increasing sales. Moreover, due to different annual promotional budgets, long term planning becomes difficult.<\/li>\r\n \t<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Percentages of sales Method <\/strong>:<span style=\"text-align: initial;font-size: 1em\"> Promotional expenditure may be determined on the basis of <\/span>relationship<span style=\"text-align: initial;font-size: 1em\"> between promotional expenses and sales revenue as indicated by <\/span>specified<span style=\"text-align: initial;font-size: 1em\"> percentage of sales either current or anticipated. This method encourages management to think in terms of <\/span>relationship<span style=\"text-align: initial;font-size: 1em\"> between promotion cost, selling price and profits. It is certain as <\/span>company<span style=\"text-align: initial;font-size: 1em\"> spends <\/span>same<span style=\"text-align: initial;font-size: 1em\"> percentage every year. But this method is less flexible as it does not allow to respond to <\/span>market<span style=\"text-align: initial;font-size: 1em\"> need. Moreover, planning of long term promotion programmes becomes difficult.<\/span><\/li>\r\n \t<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Competitive Parity Method <\/strong>:<span style=\"text-align: initial;font-size: 1em\"> This method envisages determination of promotion expenses in such a way that parity with competitor\u2019s promotion expenses can be maintained. For this purpose, relevant data can be collected from industry publications, inter-firm comparisons published by industrial association and research studies. This method is not scientific as objectives, <\/span>scale<span style=\"text-align: initial;font-size: 1em\"> of operation and resources vary significantly among companies.<\/span><\/li>\r\n \t<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Objective and task method <\/strong>:<span style=\"text-align: initial;font-size: 1em\"> In this method, promotion objectives are determined first and then tasks required to be performed to achieve those objectives are determined. Finally, <\/span>cost<span style=\"text-align: initial;font-size: 1em\"> of performing these tasks is estimated. This method is flexible and scientific. It treats promotion expenditure as <\/span>investment<span style=\"text-align: initial;font-size: 1em\"> which is necessary to achieve objectives. It forces managers to prepare <\/span>budget<span style=\"text-align: initial;font-size: 1em\"> for each promotion campaign.<\/span><\/li>\r\n<\/ul>\r\n<\/div>\r\n<div>\r\n\r\n<strong>\u00a0 \u00a0 12\u00a0<\/strong><strong>Summary<\/strong>\r\n\r\n<strong>\u00a0<\/strong>\r\n<p style=\"text-align: justify\">Promotion is a process of marketing communication which attempts to inform, persuade and remind its target markets, through personal and impersonal means, about company and its brand. It acts as a powerful tool and creates a link between marketer (company) and consumer. Company uses different tools of promotion which are described as promotion mix. Advertising, sales promotion, personal selling, public relations are important elements of promotion mix. Advertising is paid form of communication of goods, services or ideas by an identified sponsor which is directed at mass audience. Magazines, newspapers, radio, television, posters, hoardings, direct mail are different media used by advertisers to influence and induce the viewers, readers or listeners to buy the advertised products. Sales promotion refers to short term special selling efforts to accelerate sales. It is a promotional activity which provides monetary and non-monetary incentives to spark an immediate reaction from target consumers (consumer sales promotion) and dealers or firm\u2019s salesperson (Trade promotions). Personal selling refers to direct personal contact between a sales representative and one or more prospective customers to influence the customer in a purchase situation. Public relations and publicity aim at protecting and promoting company\u2019s image through number of programmes and activities. Thus, there are various promotion tools available. A company should use an appropriate tool by considering certain factors such as nature of product, target market, type of buying decisions and availability of funds.<\/p>\r\n<strong>\u00a0<\/strong>\r\n<p style=\"text-align: justify\">Promotion is a tool of marketing communication. The marketing communication process comprises of Sender, Encoding of message, Message channel, Decoding of message, Receiver and Feedback. Different models are developed by management practitioners which are used to study how consumers respond to messages. These models assume that consumers respond to marketing message in <em>Cognitive<\/em> (learn), <em>Affective<\/em> (Feel) and <em>Connative<\/em> (do) sequence.<\/p>\r\n<strong>\u00a0<\/strong>\r\n<p style=\"text-align: justify\">Promotion strategy chalks out the communication programme to be followed to achieve marketing objectives. Promotion strategy can be push strategy or pull strategy. Push strategy aims at assisting dealers in increasing sales whereas the purpose of pull strategy is to encourage customers or end users. A company can use a pull or push promotion strategy or it can use a\u00a0<span style=\"text-align: initial;font-size: 1em\">combination of both. A promotion strategy should be intelligently formulated and must pass through various stages namely, identifying the target audience<\/span><strong style=\"text-align: initial;font-size: 1em\">,<\/strong><span style=\"text-align: initial;font-size: 1em\"> determining the objectives, designing the promotion message, selecting <\/span>appropriate<span style=\"text-align: initial;font-size: 1em\"> channel of promotion and establishing the promotion budget. It is essential to take feedback and measure the effectiveness of <\/span>promotion<span style=\"text-align: initial;font-size: 1em\"> strategy so as to make necessary changes in communication programme and product offerings or services. <\/span>Effectiveness<span style=\"text-align: initial;font-size: 1em\"> of promotion can be measured in terms of increase in demand, brand awareness, or purchase intention.<\/span><\/p>\r\n\r\n<\/div>\r\n<strong>\u00a0 \u00a0 Learn More<\/strong>\r\n\r\n<strong>Few important sources to learn more about Promotion Decision :<\/strong>\r\n<ol>\r\n \t<li style=\"text-align: justify\">Burnett John. J.(1984). <em>Promotion Management: A Strategic Approach<\/em>, West Publishing Company.<\/li>\r\n \t<li style=\"text-align: justify\">Dalrymple and Parsons. <em>Marketing Management: Text and Cases<\/em>, 6th Edition, John Wiley &amp; Sons, Inc.<\/li>\r\n \t<li style=\"text-align: justify\">Cannon, Tom. <em>Basic Marketing: Principles and Practice<\/em>, 3rd Edition, A.I.T.B.S. Publishers, Delhi.<\/li>\r\n \t<li style=\"text-align: justify\">Bose,S. Biplab (2010) <em>Marketing Management<\/em>, Himalaya Publishing House, Mumbai.<\/li>\r\n \t<li style=\"text-align: justify\">Gandhi,C<span style=\"text-align: initial;font-size: 1em\"> J (1998). <\/span><em style=\"text-align: initial;font-size: 1em\">Marketing- A Managerial Introduction<\/em><span style=\"text-align: initial;font-size: 1em\">, Tata McGraw Hill, New Delhi<\/span><\/li>\r\n \t<li style=\"text-align: justify\">Kotler, Philip (2002). <em>Framework for Marketing Management<\/em>, Pearson Education (Singapore) Pte. Ltd., Indian Branch, Delhi.<\/li>\r\n \t<li style=\"text-align: justify\">Kotler, Philip; Keller, Kevin; Koshey, Abraham; and Jha Mithileshwar, (2009). <em style=\"text-align: initial;font-size: 1em\">Marketing<\/em> <em style=\"text-align: initial;font-size: 1em\">Management: South Asian Perspective<\/em><span style=\"text-align: initial;font-size: 1em\">. 13th Edition. Pearson Education, New Delhi.<\/span><\/li>\r\n \t<li style=\"text-align: justify\">Mohan, Manendra (1999). <em style=\"text-align: initial;font-size: 1em\">Advertising Management: Concepts and Cases<\/em><span style=\"text-align: initial;font-size: 1em\">, Tata McGraw-Hill Publishing Company Limited, New Delhi.<\/span><\/li>\r\n \t<li style=\"text-align: justify\">Sherlekar,A.S.(1996). <em style=\"text-align: initial;font-size: 1em\">Marketing Management<\/em><span style=\"text-align: initial;font-size: 1em\">, Himalaya Publishing House, Mumbai.<\/span><\/li>\r\n<\/ol>\r\n<ul>\r\n \t<li><a href=\"http:\/\/www.yourarticlelibrary.com\/marketing\/4-most-important-elements-of-promotion-mix-business-marketing\/8796\/\">http:\/\/www.yourarticlelibrary.com\/marketing\/4-most-important-elements-of-promotion-mix-<\/a><a href=\"http:\/\/www.yourarticlelibrary.com\/marketing\/4-most-important-elements-of-promotion-mix-business-marketing\/8796\/\">business-marketing\/8796\/<\/a><\/li>\r\n \t<li><a style=\"text-align: initial;font-size: 1em\" href=\"http:\/\/www.slideshare.net\/2cdude\/promotion-mix-3936058?next_slideshow=1\">http:\/\/www.slideshare.net\/2cdude\/promotion-mix-3936058?next_slideshow=1<\/a><\/li>\r\n \t<li><a style=\"text-align: initial;font-size: 1em\" href=\"http:\/\/www.knowthis.com\/types-of-promotion\/promotion-choice-marketing-issues\">http:\/\/www.knowthis.com\/types-of-promotion\/promotion-choice-marketing-issues<\/a><\/li>\r\n<\/ul>\r\n<strong>\u00a0 \u00a0 \u00a0Points to Ponder<\/strong>\r\n<ol>\r\n \t<li style=\"text-align: justify\"><strong>Promotion acts as a powerful tool and creates a link between marketer (company) and consumer.<\/strong><\/li>\r\n \t<li style=\"text-align: justify\"><strong>Company uses different tools of promotion which are described as promotion mix.<\/strong><\/li>\r\n \t<li style=\"text-align: justify\"><strong>Advertising, sales promotion, personal selling, public relations are important elements of promotion mix.<\/strong><\/li>\r\n \t<li style=\"text-align: justify\"><strong>A company should use an appropriate promotional tool by considering certain factors such as nature of product, target market, type of buying decisions and availability of funds.<\/strong><\/li>\r\n<\/ol>","rendered":"<div>\n<p><strong>\u00a0 \u00a0 1.\u00a0<\/strong><strong>Learning Outcome<\/strong><\/p>\n<p>After completing this module, the students will be able to:<\/p>\n<ul>\n<li>Describe the concept of promotion<\/li>\n<li>Explain various components of promotion mix.<\/li>\n<li>Distinguish push and pull strategy of promotion.<\/li>\n<li>Suggest how effective promotion strategy may be developed<\/li>\n<\/ul>\n<p><strong>\u00a0 \u00a0 2.\u00a0<\/strong><strong>Meaning of Promotion<\/strong><\/p>\n<p style=\"text-align: justify\"><strong>\u00a0<\/strong><\/p>\n<p style=\"text-align: justify\">Promotion is a process of marketing communication which attempts to inform, persuade and remind its target markets, through personal and impersonal means, about company and its brand. It acts as a powerful tool and creates a link between marketer (company) and consumer. Marketing communication is necessary as superb product, best package and fair price cannot ensure sale of product unless people are made aware of its existence. Promotion can stimulate demand, capture it from rivals and maintain it.<\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<p><strong>3.\u00a0<\/strong><strong>Objectives of Promotion<\/strong><\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<p style=\"text-align: justify\">Promotion is an important marketing strategy. Promotion aims at communicating marketing information to consumers and sellers. It persuades and convinces the buyer to influence his behaviour and prompt him to take the desired action. The key objectives of promotion can be summarized as to inform, persuade and remind:<\/p>\n<p style=\"text-align: justify\">(i)\u00a0<strong>To inform <\/strong>:\u00a0 Company makes use of promotional tools to inform target market about:<\/p>\n<p>&nbsp;<\/p>\n<p>(a)\u00a0New product, brand, new pack size or new feature of product<\/p>\n<p>(b) Reduction in price, new offer like buy one get one or more quantity at same price<\/p>\n<p>(c)\u00a0Opening of new outlet in the region like Reliance, Big Bazar<\/p>\n<p><span style=\"text-align: initial;font-size: 1em\">(d) Working of product though <\/span>demonstration<\/p>\n<p><span style=\"text-align: initial;font-size: 1em\">(e) New packaging of the product<\/span><\/p>\n<p><span style=\"text-align: initial;font-size: 1em\">(f) New or multiple uses of the product<\/span><\/p>\n<p><span style=\"text-align: initial;font-size: 1em\">(g) Introduction of new technologies in the market<\/span><\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(h)\u00a0<\/span>Genuineness<span style=\"text-align: initial;font-size: 1em\"> of product or company when some wrong or negative perceptions have emerged as happened in case of Maggi Noodles<\/span><\/p>\n<p><span style=\"text-align: initial;font-size: 1em\">(i)\u00a0<\/span>Competitive<span style=\"text-align: initial;font-size: 1em\"> advantage of the product or service<\/span><\/p>\n<\/div>\n<div>\n<p>\u00a0 \u00a0 (ii)\u00a0<strong>To persuade<\/strong>: Promotional strategies aim at influencing buyer\u2019s behaviour to take a desired action. It focuses on :<\/p>\n<p>&nbsp;<\/p>\n<p>(a) Insisting consumers to buy now as happens in case of limited stock offers<\/p>\n<p>(b) Initiating brand switching in the favour of company i.e. capturing customers of rival firms<\/p>\n<p>(c) Stimulating demand and creating brand preference<\/p>\n<p>(d) Insisting consumer to stay loyal to brand i.e. creating brand loyalty<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">(iii)\u00a0<strong>To remind <\/strong>: There is stiff competition in consumer goods market and companies have to consistently remind the customer about brand, product and its competitive advantage. The companies aim to:<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">(a) Remind occasion of use as Cadbury chocolates advertisement reminds customer about its use on Raksha Bandhan<\/p>\n<p style=\"text-align: justify\">(b) Remind brand to maintain brand recall<\/p>\n<p style=\"text-align: justify\">(c) Remind need to buy to fulfil near future demand. This is particularly true in case of seasonal goods like woollen clothes, water coolers.<\/p>\n<p>&nbsp;<\/p>\n<p><strong>4.\u00a0<\/strong><strong>Promotion Mix<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">Promotion mix consists of a group of communication tools which marketing executives use to communicate with their target audience. The marketer tries to create a most favourable blend of all promotion elements to influence buyer\u2019s behaviour and his process of decision making. Sales can be promoted through an effective promotion mix.<\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<p style=\"text-align: justify\">Advertising, sales promotion, personal selling, public relations are important elements of promotion mix. Different elements of promotion-mix are used by the companies depending on the marketing objectives and certain other factors.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong>4.1<\/strong>\u00a0<strong>Advertising <\/strong>: Advertising is paid form of communication of goods, services or ideas by an identified sponsor which is directed at mass audience. The sponsor\/ advertiser (seller) pays for time or space used in media in which his advertisement appears. Magazines, newspapers, radio, television, posters, hoardings, direct mail are different media used by advertisers to influence and induce the viewers, readers or listeners to buy the advertised products.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong>4.2<\/strong>\u00a0<strong>Sales Promotion<\/strong>: Sales promotion refers to short term special selling efforts to accelerate sales. It is a promotional activity which provides monetary and non-monetary incentives to spark an immediate reaction from target consumers (consumer sales promotion) and dealers or firm\u2019s salesperson (Trade promotions). Consumer Sales promotion pulls a product or service by stimulating demand and trade promotions push a product or service by arousing enthusiasm among channel members to sell more of a particular brand. Sales promotion influences\u00a0<span style=\"text-align: initial;font-size: 1em\">purchase <\/span>behaviour<span style=\"text-align: initial;font-size: 1em\"> and provides immediate incentive to buy. Sales promotion tools provide <\/span>marvellous<span style=\"text-align: initial;font-size: 1em\"> results when supported by advertising and personal selling.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">4.3<\/strong><span style=\"text-align: initial;font-size: 1em\">\u00a0<\/span><strong style=\"text-align: initial;font-size: 1em\">Personal Selling<\/strong><span style=\"text-align: initial;font-size: 1em\">: Personal selling refers to direct personal contact between a sales representative and one or more prospective customers to influence the customer in a purchase situation. It involves securing information about buyer\u2019s unsatisfied needs and wants by the salesman and supplying information about goods and services to the prospective buyer. Sales talk and product demonstrations play an important role in personal selling.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">4.4<\/strong><span style=\"text-align: initial;font-size: 1em\">\u00a0<\/span><strong style=\"text-align: initial;font-size: 1em\">Public relations and Publicity: <\/strong><span style=\"text-align: initial;font-size: 1em\">Public relations and publicity aim at protecting and promoting <\/span>company\u2019s<span style=\"text-align: initial;font-size: 1em\"> image through <\/span>number<span style=\"text-align: initial;font-size: 1em\"> of programmes and activities. Publicity and public relations increase <\/span>effectiveness<span style=\"text-align: initial;font-size: 1em\"> of promotion as consumers are now more interested in evaluating company brand or product on the basis of what is written about it in the media.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">4.4.1.\u00a0Publicity <\/strong>:<span style=\"text-align: initial;font-size: 1em\"> It is <\/span>non personal<span style=\"text-align: initial;font-size: 1em\"> communications through media such as interviews, press conference, photographs, corporate film, press release. Media space used for publicity is not bought by the sponsor. American Marketing Association has defined Publicity as \u201cnon-personal stimulation of demand for a product, service, or business unit by planting commercially significant news about it in a published medium or obtaining <\/span>favourable<span style=\"text-align: initial;font-size: 1em\"> presentation of it on radio, television, or stage that is not paid for by the sponsor\u201d1.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">4.4.2 Public Relations<\/strong><span style=\"text-align: initial;font-size: 1em\">: It includes certain activities like event sponsorship, <\/span>cause<span style=\"text-align: initial;font-size: 1em\"> related marketing programmes and consumer training programmes.<\/span><\/p>\n<ul>\n<li style=\"text-align: justify\"><em style=\"text-align: initial;font-size: 1em\">Event sponsorship<\/em><span style=\"text-align: initial;font-size: 1em\">: Companies usually sponsor those events which are sufficiently newsworthy to attain wide coverage. They can become part of well-known events like film award functions, cricket match or they can create an event exclusively for the company or brand like Bournvita Quiz contest. Those events create stronger ties with <\/span>brand<span style=\"text-align: initial;font-size: 1em\">.<\/span><\/li>\n<li style=\"text-align: justify\"><em style=\"text-align: initial;font-size: 1em\">Consumer education and training programmes <\/em>:<span style=\"text-align: initial;font-size: 1em\"> Companies organize seminars and training programme to educate customers and to create brand preference. For example, LG <\/span>run<span style=\"text-align: initial;font-size: 1em\"> Microwave cooking classes to educate <\/span>customer<span style=\"text-align: initial;font-size: 1em\"> about the use of <\/span>microwave<span style=\"text-align: initial;font-size: 1em\"> oven.<\/span><\/li>\n<li style=\"text-align: justify\"><em style=\"text-align: initial;font-size: 1em\">Social Cause related marketing<\/em><span style=\"text-align: initial;font-size: 1em\">: Under <\/span>corporate<span style=\"text-align: initial;font-size: 1em\"> social responsibility campaign, companies usually support social cause programmes and donate large funds for these programmes to create a <\/span>favourable<span style=\"text-align: initial;font-size: 1em\"> image in the mind of <\/span>target<span style=\"text-align: initial;font-size: 1em\"> audience.<\/span><\/li>\n<\/ul>\n<\/div>\n<div>\n<p style=\"text-align: justify\">\u00a0 \u00a0 Each element of promotion mix differs in its ability to influence buyer\u2019s behaviour. Hence, it is important to analyse the utility as well as limitation of each element before using it. Moreover, other factors like promotion objectives, funds, cost and nature of product should also be considered while selecting promotion tool to attain the desired results.<\/p>\n<p>&nbsp;<\/p>\n<p><strong>5.\u00a0<\/strong><strong>Difference between Advertising and Sales Promotion<\/strong><\/p>\n<\/div>\n<p style=\"text-align: justify\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-297 size-full\" src=\"http:\/\/mgmtp14.epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/sites\/80\/2018\/11\/Untitled-16.png\" alt=\"\" width=\"820\" height=\"93\" srcset=\"https:\/\/ebooks.inflibnet.ac.in\/mgmtp14\/wp-content\/uploads\/sites\/80\/2018\/11\/Untitled-16.png 820w, https:\/\/ebooks.inflibnet.ac.in\/mgmtp14\/wp-content\/uploads\/sites\/80\/2018\/11\/Untitled-16-300x34.png 300w, https:\/\/ebooks.inflibnet.ac.in\/mgmtp14\/wp-content\/uploads\/sites\/80\/2018\/11\/Untitled-16-768x87.png 768w, https:\/\/ebooks.inflibnet.ac.in\/mgmtp14\/wp-content\/uploads\/sites\/80\/2018\/11\/Untitled-16-65x7.png 65w, https:\/\/ebooks.inflibnet.ac.in\/mgmtp14\/wp-content\/uploads\/sites\/80\/2018\/11\/Untitled-16-225x26.png 225w, https:\/\/ebooks.inflibnet.ac.in\/mgmtp14\/wp-content\/uploads\/sites\/80\/2018\/11\/Untitled-16-350x40.png 350w\" sizes=\"auto, (max-width: 820px) 100vw, 820px\" \/><\/p>\n<div>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-298 size-full\" src=\"http:\/\/mgmtp14.epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/sites\/80\/2018\/11\/Untitled-17.png\" alt=\"\" width=\"821\" height=\"428\" srcset=\"https:\/\/ebooks.inflibnet.ac.in\/mgmtp14\/wp-content\/uploads\/sites\/80\/2018\/11\/Untitled-17.png 821w, https:\/\/ebooks.inflibnet.ac.in\/mgmtp14\/wp-content\/uploads\/sites\/80\/2018\/11\/Untitled-17-300x156.png 300w, https:\/\/ebooks.inflibnet.ac.in\/mgmtp14\/wp-content\/uploads\/sites\/80\/2018\/11\/Untitled-17-768x400.png 768w, https:\/\/ebooks.inflibnet.ac.in\/mgmtp14\/wp-content\/uploads\/sites\/80\/2018\/11\/Untitled-17-65x34.png 65w, https:\/\/ebooks.inflibnet.ac.in\/mgmtp14\/wp-content\/uploads\/sites\/80\/2018\/11\/Untitled-17-225x117.png 225w, https:\/\/ebooks.inflibnet.ac.in\/mgmtp14\/wp-content\/uploads\/sites\/80\/2018\/11\/Untitled-17-350x182.png 350w\" sizes=\"auto, (max-width: 821px) 100vw, 821px\" \/><\/p>\n<p><em>\u00a0Marketing Definitions : A Glossary of Marketing Terms<\/em>, compiled by the Committee on Definitions of the American Marketing association, R. S. Alexander, Chairman, 1960.<\/p>\n<p>&nbsp;<\/p>\n<p><strong>6.\u00a0<\/strong><strong>Difference between Advertising and Personal Selling<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-299 size-full aligncenter\" src=\"http:\/\/mgmtp14.epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/sites\/80\/2018\/11\/Untitled-18.png\" alt=\"\" width=\"823\" height=\"291\" srcset=\"https:\/\/ebooks.inflibnet.ac.in\/mgmtp14\/wp-content\/uploads\/sites\/80\/2018\/11\/Untitled-18.png 823w, https:\/\/ebooks.inflibnet.ac.in\/mgmtp14\/wp-content\/uploads\/sites\/80\/2018\/11\/Untitled-18-300x106.png 300w, https:\/\/ebooks.inflibnet.ac.in\/mgmtp14\/wp-content\/uploads\/sites\/80\/2018\/11\/Untitled-18-768x272.png 768w, https:\/\/ebooks.inflibnet.ac.in\/mgmtp14\/wp-content\/uploads\/sites\/80\/2018\/11\/Untitled-18-65x23.png 65w, https:\/\/ebooks.inflibnet.ac.in\/mgmtp14\/wp-content\/uploads\/sites\/80\/2018\/11\/Untitled-18-225x80.png 225w, https:\/\/ebooks.inflibnet.ac.in\/mgmtp14\/wp-content\/uploads\/sites\/80\/2018\/11\/Untitled-18-350x124.png 350w\" sizes=\"auto, (max-width: 823px) 100vw, 823px\" \/><\/p>\n<p>&nbsp;<\/p>\n<p><strong>7.\u00a0<\/strong><strong>Promotion as a tool of communication<\/strong><\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<p style=\"text-align: justify\">Promotion is a tool of marketing communication. It presents messages to target market through various channels of communication. The messages are meant to create favourable response of target audience towards company\u2019s product or service. The company attempts to get feedback from consumers to know effectiveness of communication. Consumer\u2019s response, reaction and interpretation of message can be understood with the help of audience surveys, dealers, salesman or other consumer information channel. This feedback helps the company in improving and modifying its product or service. The marketing communication process comprises of:<strong>\u00a0<\/strong><\/p>\n<p>(i)\u00a0 \u00a0Sender<\/p>\n<p>(ii)\u00a0 Encoding of message<\/p>\n<p>(iii) Message channel<\/p>\n<p>(iv) Decoding of message<\/p>\n<p>(v)\u00a0 Receiver<\/p>\n<p>(vi) Feedback<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">Communication process starts from sender. Sender means the person who intends to convey his ideas and thoughts. In marketing, sender is the firm who tries to inform, persuade and remind the target market about firm, its product offerings and services.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Ideas are encoded by the sender to create <\/span>message<span style=\"text-align: initial;font-size: 1em\">. In marketing, <\/span>message<span style=\"text-align: initial;font-size: 1em\"> can be encoded by marketer or advertising agency. Encoding means conversion of ideas into a message by using words, symbols, or sounds. <\/span>Marketer<span style=\"text-align: initial;font-size: 1em\"> should encode the message in a way that can <\/span>appeal<span style=\"text-align: initial;font-size: 1em\"> five senses. <\/span>Message<span style=\"text-align: initial;font-size: 1em\"> is transmitted through some channel such as T.V., Radio, store displays, phone, press, product demonstration and so on. <\/span>Marketer<span style=\"text-align: initial;font-size: 1em\"> must select the channel which is most suitable to the message. <\/span>Message<span style=\"text-align: initial;font-size: 1em\"> is always directed to someone. In marketing communication, it is meant for the target group to whom marketers want to influence. The receiver\/ customer is supposed to have received <\/span>message<span style=\"text-align: initial;font-size: 1em\"> when it enters his frame of reference. The channel distortions, also known as media noise, can interfere with the reception of <\/span>message<span style=\"text-align: initial;font-size: 1em\">. <\/span>Message<span style=\"text-align: initial;font-size: 1em\"> may get distorted due to light, climate, physical surrounding or competitive advertisement. There can be <\/span>ineffective<span style=\"text-align: initial;font-size: 1em\"> reception of message due to <\/span>customer\u2019s<span style=\"text-align: initial;font-size: 1em\"> state of mind or physical discomfort. The target market decodes the message as per its knowledge and understanding. Decoding is <\/span>interpretation<span style=\"text-align: initial;font-size: 1em\"> of the language, tone <\/span>and<span style=\"text-align: initial;font-size: 1em\"> symbols of the message. Interpretation of <\/span>message<span style=\"text-align: initial;font-size: 1em\"> is affected by age, gender, culture, attitude <\/span>and<span style=\"text-align: initial;font-size: 1em\"> belief of the consumer. Each consumer finds his own meaning to the message.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">It is important to take feedback to assess <\/span>effectiveness<span style=\"text-align: initial;font-size: 1em\"> of promotion as <\/span>communication<span style=\"text-align: initial;font-size: 1em\"> tool. Feedback indicates who are the receivers, how they have interpreted the message and what are the responses. The feedback of communication will be quick and direct in case of interpersonal communication. However, in <\/span>case<span style=\"text-align: initial;font-size: 1em\"> of impersonal communication, it will be indirect. In such cases, feedback can be obtained through audience surveys, consumer information channels or marketing research. The effectiveness of communication can be measured through <\/span>number<span style=\"text-align: initial;font-size: 1em\"> of people who saw the communication, recall of communication, brand awareness and purchase intention.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Promotion as a communication tool becomes effective when marketer understands consumer\u2019s frame of reference, encodes the message as per customer\u2019s attitudes and beliefs, uses <\/span>suitable<span style=\"text-align: initial;font-size: 1em\"> channel to convey <\/span>message<span style=\"text-align: initial;font-size: 1em\"> as well as to ensure <\/span>best<span style=\"text-align: initial;font-size: 1em\"> reception and secures feedback. Marketers must attune themselves to the responses and adjust their communication programmes.<\/span><\/p>\n<\/div>\n<div>\n<p><strong>\u00a0 \u00a0 8.\u00a0<\/strong><strong>Promotion as a tool to stimulate demand<\/strong><\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<p style=\"text-align: justify\">Promotion tries to influence consumer\u2019s attitudes, beliefs, preferences and buying behaviour. The effectiveness of promotion lies in consumer\u2019s response to messages which may be represented by actual purchase or change in behaviour.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">Response Hierarchy Models developed by management thinkers or experts are used to study how consumers respond to messages. These models outline the different stages of consumer involvement and response to the messages.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">The models assume that consumers respond to marketing message in <em>Cognitive<\/em> (learn), <em>Affective <\/em>(Feel) and<em> Connative <\/em>(do) sequence. Attention or awareness is the first stage of response. Marketers through promotion try to draw the attention of consumers to messages. But it alone will not lead to action. Marketers through personal selling or sales promotion create opportunities for customers to get a feel of the product. It creates interest and stimulates their desire to acquire the products. Through different promotional tools customers are convinced of product\u2019s superiority over competitor\u2019s products which compel them to act.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">It must be remembered that these models do not explain how promotion affects all types of purchase situations. But still these models are popular and are used to measure effectiveness of promotional efforts. These are also useful to evaluate effectiveness of each component of\u00a0<span style=\"text-align: initial;font-size: 1em\">promotion-mix and media-mix in terms of their ability to create demand or influence buyers\u2019 <\/span>behaviour<span style=\"text-align: initial;font-size: 1em\">.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">9.\u00a0<\/strong><strong style=\"text-align: initial;font-size: 1em\">Factors affecting promotion mix<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Promotion is <\/span>important<span style=\"text-align: initial;font-size: 1em\"> tool to create and maintain demand. <\/span>Favourable<span style=\"text-align: initial;font-size: 1em\"> corporate image can be developed through promotion. There are various promotion tools available. A company should use an appropriate tool by considering <\/span>following<span style=\"text-align: initial;font-size: 1em\"> factors:<\/span><\/p>\n<ul>\n<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Nature of Product: <\/strong><span style=\"text-align: initial;font-size: 1em\">Industrial products are customized to <\/span>buyer\u2019s<span style=\"text-align: initial;font-size: 1em\"> specification. Personal selling is best suited to sell these products. Advertising will not serve <\/span>purpose<span style=\"text-align: initial;font-size: 1em\"> in such cases. However, some companies dealing in industrial goods have used advertising to build or protect corporate image. Industrial goods can be promoted through sales engineer or journals. Consumer products can be categorized as <\/span>convenience<span style=\"text-align: initial;font-size: 1em\">, shopping or specialty products. Specialty products should be promoted through selective media like journals, personal selling. Convenience products are mass selling consumer goods that can be promoted through radio, newspaper or television. Even sales promotions can be initiated for such products.<\/span><\/li>\n<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Target Market : <\/strong><span style=\"text-align: initial;font-size: 1em\">Sex, age <\/span>and<span style=\"text-align: initial;font-size: 1em\"> background of <\/span>target<span style=\"text-align: initial;font-size: 1em\"> market will determine the use of <\/span>promotion<span style=\"text-align: initial;font-size: 1em\"> tool. Toys or cosmetics can be promoted through television. Press media is not suitable to sell products which are meant for children. A convenience product targeted at <\/span>rural<span style=\"text-align: initial;font-size: 1em\"> market would call for the use of customer education. In such markets, advertising supported by personal selling will help in boosting <\/span>the sales<span style=\"text-align: initial;font-size: 1em\">. It will serve as <\/span>communication<span style=\"text-align: initial;font-size: 1em\"> tool and also support the distribution channels. Niche market products are meant for <\/span>loyal<span style=\"text-align: initial;font-size: 1em\">, educated and concentrated group of customers. The promotion strategy <\/span>in this case<span style=\"text-align: initial;font-size: 1em\"> will focus on building long term relationship. Selective and informative advertising will work for such <\/span>product<span style=\"text-align: initial;font-size: 1em\">.<\/span><\/li>\n<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Stages in Product Life Cycle : <\/strong><span style=\"text-align: initial;font-size: 1em\">Promotional strategy will be influenced by product\u2019s stage in life cycle. During the introductory stage, there is <\/span>need<span style=\"text-align: initial;font-size: 1em\"> to create awareness and knowledge about <\/span>product<span style=\"text-align: initial;font-size: 1em\">. Promotion strategy should be such as to trigger a need and establish product utility. Product displays and publicity supported by advertising can be relied upon to promote such <\/span>product<span style=\"text-align: initial;font-size: 1em\">.<\/span><\/li>\n<\/ul>\n<\/div>\n<div>\n<p style=\"text-align: justify\">\u00a0 \u00a0 The purpose of promotion will be different when product reaches growth stage. As the product is known to the consumers, therefore, the focus will be to build brand preference through advertising. In this case, there will be shift from creating awareness to increasing customer base. Public relations and sales promotion can be used to support advertising.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">Product at maturity stage faces tough competition and declining sale. To retain customers for matured product, firms can focus on consumer sales promotion and trade promotion. Huge expenditure on advertising will prove a sheer waste at this stage.<\/p>\n<p>&nbsp;<\/p>\n<p>As product move to decline stage, only sales promotion techniques can be resorted to.<\/p>\n<ul>\n<li style=\"text-align: justify\"><strong>Availability of Funds : <\/strong>The new entrants may lack funds to use advertising, personal selling, or sales promotion tools. They can go for publicity to create awareness among customers. If established firms do not face any financial crunch they can adopt any promotion tool.<\/li>\n<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Type of buying decisions<\/strong><span style=\"text-align: initial;font-size: 1em\">: <\/span>Promotional<span style=\"text-align: initial;font-size: 1em\"> tool is determined by the type of buying decisions. Complex decisions require assurance and conviction. Personal selling is best\u00a0<\/span>suited in such cases. Even company\u2019s<span style=\"text-align: initial;font-size: 1em\"> website can also play a significant role in providing information and assisting buyers in decision making.<\/span><\/li>\n<\/ul>\n<\/div>\n<div>\n<p style=\"text-align: justify\">\u00a0 \u00a0Simple routine nature buying decisions require reminder communication to maintain brand recall. Consumer sales promotions are used to keep customer interested in brand. Trade promotion can also be used to get good shelf space at retail outlet.<\/p>\n<ul>\n<li style=\"text-align: justify\"><strong>Push and Pull Strategy : <\/strong>Push strategy aims at assisting dealers in increasing sales whereas the purpose of pull strategy is to encourage customers or end users. A company that wants to use pull strategy should use advertising or sales promotion. But a company which is opting push strategy must go for personal selling. However, a company can use a combination of different promotion tools when push and pull strategy is followed by it.<\/li>\n<\/ul>\n<p><strong>\u00a0 \u00a0 10.\u00a0<\/strong><strong>Promotion strategy<\/strong><\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<p style=\"text-align: justify\">Strategy lays down the broad principles and programmes by which company tries to secure an advantage over competitors. Promotion strategy chalks out the communication programme to be followed for achieving marketing objectives. Promotion strategy aims at stimulating demand, creating brand awareness and developing brand loyalty. A company can use a pull or push promotion strategy or it can use a combination of both.<\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<p style=\"text-align: justify\">A <em>pull strategy<\/em> relies heavily on marketing communications to stimulate demand and \u2018pull\u2019 the customer into the retail store. Under pull strategy, all efforts of promotion are directed at the target market, i.e. consumers and then consumers demand the desired products from the retailer. The retailers in turn demand the products from the wholesalers who are compelled to stock those products by approaching the manufacturer. Thus, the request for the product starts from consumers and finally moves to the manufacturer.<\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<p style=\"text-align: justify\">A <em>push strategy<\/em> relies heavily on the distribution channel to stimulate demand by \u2018pushing\u2019 the product. Under push strategy, manufacturer directs all promotional efforts primarily on the middlemen i.e., wholesalers and retailers. Product is pushed through the distribution channel. So flow of promotion and goods move from the producer to the wholesaler and from the wholesaler to the retailer and from the retailer to the consumer.<\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<p style=\"text-align: justify\">Most consumer goods manufacturers generally use a push-pull (mix) strategy to sell their products. The proportion of pull and push may differ according to the requirements of market situation. Salesmen are used to push the product through the marketing channel, while advertising and sales promotion pull the customers and support personal selling to accelerate sales. Thus, all tools of promotion work together.<\/p>\n<p>&nbsp;<\/p>\n<p><strong>10.1<\/strong>\u00a0<strong>Guidelines for designing effective promotion strategy<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">The strategy is competitive policy. It lays down the direction by which an organization tries to secure competitive edge, exhibit attractiveness to buyer and make efficient use of firm\u2019s resources. A promotion strategy should be intelligently formulated and must pass through various stages as summarized below:<\/p>\n<ul>\n<li style=\"text-align: justify\"><strong>Identify the target audience: <\/strong>The marketing executive should decide the target audience (in terms of usage and loyalty). Typical purchase behaviour of target audience should be assessed. Marketers may find loyal users, brand switchers, infrequent users of product or service. Different promotion strategy should be used for different categories of buyers.<\/li>\n<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Determine the objective <\/strong>:<span style=\"text-align: initial;font-size: 1em\"> It is essential to lay down the objective of <\/span>promotion<span style=\"text-align: initial;font-size: 1em\"> strategy. The purpose may be to create <\/span>need<span style=\"text-align: initial;font-size: 1em\">, build awareness, provide knowledge, develop liking,\u00a0<\/span>build customer preference, develop conviction (confidence) or secure purchase. The most effective strategy can achieve multiple objectives.<\/li>\n<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Design the promotion message<\/strong><span style=\"text-align: initial;font-size: 1em\">: It is important to decide what to say (message content), how to say(message expressed) and who should say to attain <\/span>a desired<span style=\"text-align: initial;font-size: 1em\"> response. The management usually wants to convey appeals, themes or ideas through message for brand positioning and establishing points of difference. Therefore, <\/span>message<span style=\"text-align: initial;font-size: 1em\"> may relate to features and performance of product or services or image of <\/span>brand<span style=\"text-align: initial;font-size: 1em\"> as popular or traditional. The target customer may expect the message to be providing ego, sensory or rational satisfaction. For example, the phrase utterly buttery delicious in <\/span>message<span style=\"text-align: initial;font-size: 1em\"> for Amul Butter provides sensory satisfaction. Therefore, <\/span>message<span style=\"text-align: initial;font-size: 1em\"> should be carefully framed to <\/span>appeal<span style=\"text-align: initial;font-size: 1em\"> the audience. It is equally important that message should be expressed properly which demands creativity. The message can be expressed as informational appeal describing product or service features and uses or it can be transformational appeal describing non-product related image or benefit. Message in such appeals may depict the kind of persons using that brand or kind of experience resulting from the use of that brand. These type messages influence emotions that will motivate purchase. Further, the decision regarding message source (i.e. who should say the message) is important. Big business houses usually hire celebrities for their brand endorsements as they know that these popular sources have higher attention and recall value. Credibility, likeability, expertise <\/span>and<span style=\"text-align: initial;font-size: 1em\"> trustworthiness of message source can influence target audience response Hence, it should be carefully decided. The promotion message should be relevant, useful and credible to stimulate a better response.<\/span><\/li>\n<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Selecting appropriate channel of promotion <\/strong>:<span style=\"text-align: initial;font-size: 1em\"> It is important to choose <\/span>appropriate<span style=\"text-align: initial;font-size: 1em\"> channel to convey message after considering certain factors. The prevailing tough competition has made it difficult to rely upon just one channel. The marketers now prefer to use promotion mix to retain and attract customers. These involve personal communication channels like salesmanship or personal selling which are highly individualistic in nature and also impersonal channels like T.V., Radio, sales promotion which are directed at more than one person.<\/span><\/li>\n<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Establishing the promotion budget : <\/strong><span style=\"text-align: initial;font-size: 1em\">The company must estimate the likely expenditure on promotional activities. Industries or companies vary considerably on their expenditures. It may be high for consumer goods whereas low for industrial goods. Different methods are available to determine <\/span>promotion<span style=\"text-align: initial;font-size: 1em\"> budget. The company should use an appropriate method.<\/span><\/li>\n<\/ul>\n<\/div>\n<div>\n<p style=\"text-align: justify\">\u00a0 \u00a0 Among other things, it is equally important to take feedback and measure the effectiveness of promotion strategy so as to make necessary changes in communication programme and product offerings or services. Effectiveness of promotion can be measured in terms of increase in demand, brand awareness, or purchase intention.<\/p>\n<p>&nbsp;<\/p>\n<p><strong>11.\u00a0<\/strong><strong>Determining promotion budget<\/strong><\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<p style=\"text-align: justify\">Setting promotion budget is an important decision. It involves financial commitments and has effect on sales and company\u2019s image. There are lots of methods available to determine promotion budget. Some of them have been described as follows:<\/p>\n<ul>\n<li style=\"text-align: justify\"><strong>Affordable <\/strong>: In this method, a company sets promotion budget on the basis of funds available. This method completely overlooks the role of promotion in increasing sales. Moreover, due to different annual promotional budgets, long term planning becomes difficult.<\/li>\n<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Percentages of sales Method <\/strong>:<span style=\"text-align: initial;font-size: 1em\"> Promotional expenditure may be determined on the basis of <\/span>relationship<span style=\"text-align: initial;font-size: 1em\"> between promotional expenses and sales revenue as indicated by <\/span>specified<span style=\"text-align: initial;font-size: 1em\"> percentage of sales either current or anticipated. This method encourages management to think in terms of <\/span>relationship<span style=\"text-align: initial;font-size: 1em\"> between promotion cost, selling price and profits. It is certain as <\/span>company<span style=\"text-align: initial;font-size: 1em\"> spends <\/span>same<span style=\"text-align: initial;font-size: 1em\"> percentage every year. But this method is less flexible as it does not allow to respond to <\/span>market<span style=\"text-align: initial;font-size: 1em\"> need. Moreover, planning of long term promotion programmes becomes difficult.<\/span><\/li>\n<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Competitive Parity Method <\/strong>:<span style=\"text-align: initial;font-size: 1em\"> This method envisages determination of promotion expenses in such a way that parity with competitor\u2019s promotion expenses can be maintained. For this purpose, relevant data can be collected from industry publications, inter-firm comparisons published by industrial association and research studies. This method is not scientific as objectives, <\/span>scale<span style=\"text-align: initial;font-size: 1em\"> of operation and resources vary significantly among companies.<\/span><\/li>\n<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Objective and task method <\/strong>:<span style=\"text-align: initial;font-size: 1em\"> In this method, promotion objectives are determined first and then tasks required to be performed to achieve those objectives are determined. Finally, <\/span>cost<span style=\"text-align: initial;font-size: 1em\"> of performing these tasks is estimated. This method is flexible and scientific. It treats promotion expenditure as <\/span>investment<span style=\"text-align: initial;font-size: 1em\"> which is necessary to achieve objectives. It forces managers to prepare <\/span>budget<span style=\"text-align: initial;font-size: 1em\"> for each promotion campaign.<\/span><\/li>\n<\/ul>\n<\/div>\n<div>\n<p><strong>\u00a0 \u00a0 12\u00a0<\/strong><strong>Summary<\/strong><\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<p style=\"text-align: justify\">Promotion is a process of marketing communication which attempts to inform, persuade and remind its target markets, through personal and impersonal means, about company and its brand. It acts as a powerful tool and creates a link between marketer (company) and consumer. Company uses different tools of promotion which are described as promotion mix. Advertising, sales promotion, personal selling, public relations are important elements of promotion mix. Advertising is paid form of communication of goods, services or ideas by an identified sponsor which is directed at mass audience. Magazines, newspapers, radio, television, posters, hoardings, direct mail are different media used by advertisers to influence and induce the viewers, readers or listeners to buy the advertised products. Sales promotion refers to short term special selling efforts to accelerate sales. It is a promotional activity which provides monetary and non-monetary incentives to spark an immediate reaction from target consumers (consumer sales promotion) and dealers or firm\u2019s salesperson (Trade promotions). Personal selling refers to direct personal contact between a sales representative and one or more prospective customers to influence the customer in a purchase situation. Public relations and publicity aim at protecting and promoting company\u2019s image through number of programmes and activities. Thus, there are various promotion tools available. A company should use an appropriate tool by considering certain factors such as nature of product, target market, type of buying decisions and availability of funds.<\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<p style=\"text-align: justify\">Promotion is a tool of marketing communication. The marketing communication process comprises of Sender, Encoding of message, Message channel, Decoding of message, Receiver and Feedback. Different models are developed by management practitioners which are used to study how consumers respond to messages. These models assume that consumers respond to marketing message in <em>Cognitive<\/em> (learn), <em>Affective<\/em> (Feel) and <em>Connative<\/em> (do) sequence.<\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<p style=\"text-align: justify\">Promotion strategy chalks out the communication programme to be followed to achieve marketing objectives. Promotion strategy can be push strategy or pull strategy. Push strategy aims at assisting dealers in increasing sales whereas the purpose of pull strategy is to encourage customers or end users. A company can use a pull or push promotion strategy or it can use a\u00a0<span style=\"text-align: initial;font-size: 1em\">combination of both. A promotion strategy should be intelligently formulated and must pass through various stages namely, identifying the target audience<\/span><strong style=\"text-align: initial;font-size: 1em\">,<\/strong><span style=\"text-align: initial;font-size: 1em\"> determining the objectives, designing the promotion message, selecting <\/span>appropriate<span style=\"text-align: initial;font-size: 1em\"> channel of promotion and establishing the promotion budget. It is essential to take feedback and measure the effectiveness of <\/span>promotion<span style=\"text-align: initial;font-size: 1em\"> strategy so as to make necessary changes in communication programme and product offerings or services. <\/span>Effectiveness<span style=\"text-align: initial;font-size: 1em\"> of promotion can be measured in terms of increase in demand, brand awareness, or purchase intention.<\/span><\/p>\n<\/div>\n<p><strong>\u00a0 \u00a0 Learn More<\/strong><\/p>\n<p><strong>Few important sources to learn more about Promotion Decision :<\/strong><\/p>\n<ol>\n<li style=\"text-align: justify\">Burnett John. J.(1984). <em>Promotion Management: A Strategic Approach<\/em>, West Publishing Company.<\/li>\n<li style=\"text-align: justify\">Dalrymple and Parsons. <em>Marketing Management: Text and Cases<\/em>, 6th Edition, John Wiley &amp; Sons, Inc.<\/li>\n<li style=\"text-align: justify\">Cannon, Tom. <em>Basic Marketing: Principles and Practice<\/em>, 3rd Edition, A.I.T.B.S. Publishers, Delhi.<\/li>\n<li style=\"text-align: justify\">Bose,S. Biplab (2010) <em>Marketing Management<\/em>, Himalaya Publishing House, Mumbai.<\/li>\n<li style=\"text-align: justify\">Gandhi,C<span style=\"text-align: initial;font-size: 1em\"> J (1998). <\/span><em style=\"text-align: initial;font-size: 1em\">Marketing- A Managerial Introduction<\/em><span style=\"text-align: initial;font-size: 1em\">, Tata McGraw Hill, New Delhi<\/span><\/li>\n<li style=\"text-align: justify\">Kotler, Philip (2002). <em>Framework for Marketing Management<\/em>, Pearson Education (Singapore) Pte. Ltd., Indian Branch, Delhi.<\/li>\n<li style=\"text-align: justify\">Kotler, Philip; Keller, Kevin; Koshey, Abraham; and Jha Mithileshwar, (2009). <em style=\"text-align: initial;font-size: 1em\">Marketing<\/em> <em style=\"text-align: initial;font-size: 1em\">Management: South Asian Perspective<\/em><span style=\"text-align: initial;font-size: 1em\">. 13th Edition. Pearson Education, New Delhi.<\/span><\/li>\n<li style=\"text-align: justify\">Mohan, Manendra (1999). <em style=\"text-align: initial;font-size: 1em\">Advertising Management: Concepts and Cases<\/em><span style=\"text-align: initial;font-size: 1em\">, Tata McGraw-Hill Publishing Company Limited, New Delhi.<\/span><\/li>\n<li style=\"text-align: justify\">Sherlekar,A.S.(1996). <em style=\"text-align: initial;font-size: 1em\">Marketing Management<\/em><span style=\"text-align: initial;font-size: 1em\">, Himalaya Publishing House, Mumbai.<\/span><\/li>\n<\/ol>\n<ul>\n<li><a href=\"http:\/\/www.yourarticlelibrary.com\/marketing\/4-most-important-elements-of-promotion-mix-business-marketing\/8796\/\">http:\/\/www.yourarticlelibrary.com\/marketing\/4-most-important-elements-of-promotion-mix-<\/a><a href=\"http:\/\/www.yourarticlelibrary.com\/marketing\/4-most-important-elements-of-promotion-mix-business-marketing\/8796\/\">business-marketing\/8796\/<\/a><\/li>\n<li><a style=\"text-align: initial;font-size: 1em\" href=\"http:\/\/www.slideshare.net\/2cdude\/promotion-mix-3936058?next_slideshow=1\">http:\/\/www.slideshare.net\/2cdude\/promotion-mix-3936058?next_slideshow=1<\/a><\/li>\n<li><a style=\"text-align: initial;font-size: 1em\" href=\"http:\/\/www.knowthis.com\/types-of-promotion\/promotion-choice-marketing-issues\">http:\/\/www.knowthis.com\/types-of-promotion\/promotion-choice-marketing-issues<\/a><\/li>\n<\/ul>\n<p><strong>\u00a0 \u00a0 \u00a0Points to Ponder<\/strong><\/p>\n<ol>\n<li style=\"text-align: justify\"><strong>Promotion acts as a powerful tool and creates a link between marketer (company) and consumer.<\/strong><\/li>\n<li style=\"text-align: justify\"><strong>Company uses different tools of promotion which are described as promotion mix.<\/strong><\/li>\n<li style=\"text-align: justify\"><strong>Advertising, sales promotion, personal selling, public relations are important elements of promotion mix.<\/strong><\/li>\n<li style=\"text-align: justify\"><strong>A company should use an appropriate promotional tool by considering certain factors such as nature of product, target market, type of buying decisions and availability of funds.<\/strong><\/li>\n<\/ol>\n","protected":false},"author":3,"menu_order":39,"template":"","meta":{"_acf_changed":false,"pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":["dr-rajwant-kaur"],"pb_section_license":""},"chapter-type":[],"contributor":[60],"license":[],"class_list":["post-292","chapter","type-chapter","status-publish","hentry","contributor-dr-rajwant-kaur"],"part":3,"_links":{"self":[{"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp14\/wp-json\/pressbooks\/v2\/chapters\/292","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp14\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp14\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp14\/wp-json\/wp\/v2\/users\/3"}],"version-history":[{"count":5,"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp14\/wp-json\/pressbooks\/v2\/chapters\/292\/revisions"}],"predecessor-version":[{"id":300,"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp14\/wp-json\/pressbooks\/v2\/chapters\/292\/revisions\/300"}],"part":[{"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp14\/wp-json\/pressbooks\/v2\/parts\/3"}],"metadata":[{"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp14\/wp-json\/pressbooks\/v2\/chapters\/292\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp14\/wp-json\/wp\/v2\/media?parent=292"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp14\/wp-json\/pressbooks\/v2\/chapter-type?post=292"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp14\/wp-json\/wp\/v2\/contributor?post=292"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp14\/wp-json\/wp\/v2\/license?post=292"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}