slm-unit-12-mb0046

Marketing Management Unit 12

Sikkim Manipal University Page No. 233

Unit 12 Promotion Management: Managing

Non Personal Communication Channels

Structure:

12.1 Introduction

Learning Objectives

12.2 Integrated Marketing Communication

12.3 Communication Development Process

12.3.1 Preparing target customer profile

12.3.2 Identifying promotion objectives

12.3.3 Designing message

12.3.4 Selecting channels of communication

12.3.5 Selecting message source

12.3.6 Target customer feedback

12.4 Budget Allocation Decisions in Marketing Communications

12.5 Introduction to Advertising

12.5.1 Types of Advertisements

12.5.2 Decisions involved in developing advertisement programs

12.5.3 Characteristics of major media

12.6 Fundamentals of Sales Promotion

12.7 Basics of Public Relations (PR) and Publicity

12.8 Summary

12.9 Terminal Questions

12.10 Answers

12.11 Mini-case

12.1 Introduction

A good product with better distribution and affordable price will fail if its

attributes are not properly communicated to target customers. Marketer

should understand how shall company develop and channelize the

communication in an effective way. Communication is defined as "Any act

by which one person gives to or receives from other person any information

about that person's needs, desires, perceptions, knowledge, or affective

states. Communication may be intentional or unintentional, may involve

conventional or unconventional signals, may take linguistic or nonlinguistic



forms, and may occur through spoken or other modes." The definition

provides the general view of all types of communication. The definition can

be interpreted in marketing as “marketing communication is the process of

providing the information to the consumers about the marketing mix

(essentially the 4 P‟s) either through personal channels (direct selling, direct

marketing etc..) Or through non-personal channels (advertising, sales

promotion etc...)”. Both personal channels and non personal channels

constitutes the Marketing communication mix or promotion mix.

Promotion mix: This is an assortment of advertising, sales promotion, public

relation, Personal selling and direct marketing any organization must have

an ideal promotion mix to promote its products. Therefore, it is a very crucial

task for the marketer to properly list out the promotion mix strategies and its

benefits.

Advertising- Any paid form of non-personal presentation and promotion of

ideas, goods, or services by an identified sponsor. For example: Print ads,

radio and television ads, billboard, brochures and, signs, in-store displays,

posters, motion pictures and banner ads,

Personal selling- The type of promotion mix that involves sales people who

will help and persuade one or more prospects to purchase a good or service

or to act on any idea through the use of an oral presentation. For Examples:

Sales presentations, sales meetings, sales training and incentive programs

for intermediary salespeople.

Sales promotion- Incentives designed to stimulate the purchase or sale of

a product, usually in the short term and generally adopted in the stores or

point of purchase. For example: Coupons, sweepstakes, contests, product

samples, rebates, tie-ins, and self-liquidating premiums.

Public relations- This is the process of non-paid non-personal stimulation

of demand for a product, service, or business unit by planting significant

news about it or a favorable presentation of it in the media. For example:

Newspaper and magazine articles/reports, TVs and radio presentations,

charitable contributions, speeches, issue advertising, and seminars.

Direct Marketing: The communication tool used to interact with the

customers directly by using telephone, mail, online mediums and other

tools. For example, telemarketing, e-mails, voicemail marketing etc.

/wiki/Advertising

/wiki/Personal_selling

/wiki/Sales_promotion

/wiki/Public_relations



Publicity: this medium of communication may be used with or without the

organization knowing about it. When the company itself is involved in

publicizing a certain message or idea then publicity is organizational

oriented; if any other external party such as media is involved in

communicating any issue about the company then it gets publicity through

others. For example, film producers often use publicity stunts to promote

their films even before it is released.

Learning Objectives

After studying this unit, you will be able to

Explain the importance of integrated marketing communication.

Describe the stages involved in developing effective communication.

Analyze budget allocation decisions in marketing communication.

Understand the fundamentals of advertising and sales promotion.

Discuss the role of public relation (PR) in marketing communication.

12.2 Integrated Marketing Communications (IMC)

According to The American Marketing Association, Integrated Marketing

communication is “a planning process designed to assure that all brand

contacts received by a customer or prospect for a product, service, or

organization are relevant to that person and consistent over time.”

Objective of Integrated Marketing Communication:

To plan, develop, execute and evaluate coordinated communications with

organizations‟ stakeholders.

Reasons for the growth of Integrated Marketing Communication

1. The growth of innovative promotional tools and need to integrate them.

2. Specialized media vehicles for niche target customers.

3. Growth of retailer dominated market and passing of control from

manufacturer to the customer.

4. Growth of database marketing.

5. Wider geographical coverage through internet.

6. Higher accountability and performance linked compensation schemes.

http://en.wikipedia.org/wiki/American_Marketing_Association

http://en.wiktionary.org/wiki/brand



12.3 Communication Development Process

12.3.1 Preparing target customer profile

Effective marketing communication starts with identifying the target

customer to whom the communication is developed. In this stage company

prepares target customer profile.



Company: Exide industries.

Copy: Help, whenever wherever your car battery is in trouble we will be

there, just dial the bat mobile number of your city and we will be right there r

to bring your car back to life. Because, we love cars.

Target customer profile:

Customer Characteristics Description

Type of customer Individual

Income Upper middle class and upper class.

Media exposure Print ( English magazines, dailies and journals)

Occupation Salaried or business class.

Need of the product OEM of a car

12.3.2 Identifying promotion objectives

Target customer profile provides inputs about his/her readiness to purchase

the product. Customer may be in any of the six stages of hierarchy of

effects. The six stages are awareness, knowledge, liking, preference,

conviction and purchase. Every company will like to bring their customers to

the purchase stage from other five stages. Therefore it creates different

promotion program at different stage. To make it clearer, Company first

creates awareness about the product, educate them about the advantages,

induce them to choose the brand, stimulates and monitors that customer

purchases the product.

a. Awareness: Marketer creates the new range of products. Awareness

level for these products is very low. Intention of the advertisement is to

create awareness about these new products. In the following example of

Reebok‟s play dry technology garments, it focuses to create awareness

among the target audience. Look at the message copy of print

advertisement.

Copy: Dravid does this simply by sporting his Reebok Play Dry apparel.

These fabrics have been designed with a special moisture ventilation

system that dries away perspiration in action. It works effectively by

pushing moisture away from the skin to the outer layer of the fabric for

evaporation. So if you want to stay cool all summer, just do what the

hottest players do. Walk into the nearest Reebok Store.



b. Knowledge: In this stage target audience don‟t have complete

knowledge of the product. Marketer explains the product in detail and its

advantages to the target customers. Following advertisement of Parry

Neutraceuticals explains the advantages of beta carotenes.

Company:

Parry Neutraceuticals

Copy: You know these are good for

you, Natural beta carotene and other

carotenoids like it, are the natural

pigments found in orange, yellow, red

and some green fruits and

vegetables. They're some of the

biggest reasons why fruits and

veggies are good for you. They help

prevent the worst things that can

happen to you - cancer, heart

disease, diabetes, arthritis, cataract

and even ageing. The age-related or 'degenerative' diseases begin with

repeated damage to cells, which adds up over time. The biggest cause

of damage to cells is a common process called oxidation. Carotenoids

help prevent oxidation damage because they're some of nature's best

anti-oxidants. But to get enough natural beta carotene and other

carotenoids, you need to eat 5 servings of fruits and 5 servings of

vegetables every day or just one soft gel of Parry's Natural Beta

Carotene. It is a mixture of natural carotenoids that comes from

Dunaliella salina, one of nature's best sources of carotenoids

c Liking: Promotion is used to convert knowledgeable audience into

likeable category. Marketer uses celebrities to create interest in the

product. For example, Reid and Taylor highlight their product quality in

the advertisement by using Amitabh Bachhan a film actor.

d Preference: Creating differentiation in the market place so that customer

identifies it over the rival brands. Big bazaar advertisement with tag line

„is se sasta aur achcha kahin nahi‟ or nobody sells cheaper and better is

alluring the customer by telling them what differentiation they can bring.



e. Conviction: customer may have preference over the product but he/she

still not able to decide. In this situation, marketer develops the messages

in such a way that it provides platform for him to decide. For example,

Tata indigo, requests its customer to go for test drive and experience the

truth. Customer may be convinced about indigo but not developed the

conviction. Look at the words used in the copy.

Copy: Business class travel, now with power dressing, presenting the

stylish new Tata Indigo. Make a powerful style statement on the roads

with the new Tata Indigo. The fascia is accentuated by dual chamber

headlamps and more pronounced chrome-lined grille, while sill valance

covers, chrome insert door rub rails and dual tone ORVMs add a sporty

touch to the overall elegance of the car. The rear sports a chiseled body-

hugging bumper, new tail lamps and chrome surround registration plate

garnish. The interiors turn beige for the full range, and the new cockpit

topped off by the 3-spoke steering wheel carries forward the classic

modernity of the exteriors. The best-selling sedan just got better. Take a

test drive today. And discover power dressing on Wheels. Spoil yourself.



f. Purchase: Sometimes customers have strong desire to buy the product

but due to affordability or any other environmental factor, they are not

able to purchase. In this situation, marketer uses promotional schemes

particularly reduced price schemes to attract the customer. Company

also comes out with communication programs for repeat buyers and

loyal customers.

12.3.3 Designing a message

After deciding the communication objectives, Marketer turns to develop right

message which should create attention, interest, desire or action (AIDA) by

the customer. Before deciding what should be there in the message, we will

have to understand AIDA model in detail. The main objective of any

message is to meet the AIDA model although the message framed will be

subject to product type/category, ad budget and creativity skills of

individuals.

I. AIDA model:

Attention: The marketing communication should generate attention

towards the product. In this stage customer is having the need;

organization should provide solution from their communication. For

example, when advertisers use a popular film star or a celebrity to

promote a perfume brand or even a soap or a toothpaste, it will

immediately catch the audience‟s attention.

Interest: Once the customer provides enough attention towards the

communication, organization should stimulate it to create interest.

For example, if celebrities are used to endorse products, audience

must be curious enough to know what they are saying about that

particular product.

Desire: The interest created should be forced in the customer mind

so that he will develop desire towards the product. For example,

when people have seen the ad and show interest, next thing would

be to create a desire for that product. People should have the

willingness to buy the product and unless they don‟t desire it, they

will not be eager to buy the same.

Action: Strong desires should be turned into action. Hence company

should provide the advantages of purchasing of the product in their

communication messages. For example, it is very difficult for the

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Insurance companies to grab the attention of people towards

insurance products, create interest and desire as to make a person

buy the same. So, it‟s a challenge to the marketer to develop such a

message that immediately gets the attention and make a person to

go for it. For example, it is easy to catch people‟s attention towards

ice-creams so that they will have interest and desire to taste it and

eventually buy it.

II. Deciding the message content.

Message content must have any one of the following appeals

Emotional appeal: Positive emotional appeal or negative emotional

appeals are strong tools used to intensify the purchasing activity of

the customer. Positive emotions like love, pride, joy and humor are

used in the message. Following are the advertisement where such

attributes of positive emotions used.

www.makemytrip.com- Joy

BMW fastest saloon car in the

world- pride

Fevicol – humor

Wheel- love.

The negative emotions like fear guilt and shame are also used in the

advertisement to attract the customer.

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http://www.makemytrip.com-/



ICICI prudential- fear.

NIIT- if you are not studying at

NIIT you are missing something-

guilt

Rexona deodorant – shame.

Rational appeals highlight on the desired benefits about the products.

They highlight quality, economy value or performance of the product.

Dabur Amla – value appeal

( long Hair)

Lakme brilliance- Quality

products.

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Reliance India mobile-

performance( works even in flood

situations)

Reliance Infocom- Like the first

three, the mobile phone must

come to me as a necessity and

not as a luxury- economy

Moral appeal: These are concerned towards public health or

environment or social responsibility. For example, Shell lubricants show

its commitment towards environment in their advertisements.

III. Message format: In this section we will discuss how message should

look and stimulate the interest.

Constituents of message format:

Characteristics Suitable media.

1. Headline Print, Outdoor, Online

2. Copy Print, TV, outdoor, online

3. Illustration Print, TV, Outdoor, online

4. Color Print, TV, outdoor, online

5. Pictures Print, Outdoor, online

6. Message size Print, TV, Outdoor

7. Shape Print, Outdoor, Online

8. Words Print, TV, Product, Outdoor

9. Sounds Radio, TV, Online, Outdoor

10. Voice Radio, TV, Online

11. Body language TV, Online

12. Texture Product, Print, Online

13. Scent Product

14. Distinctive formats Print, Online, Outdoor

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Print advertisement Message format:

Colors used: Saffron, Yellow, Red, Watermark brown, Black, Brown.

Size: 3.5inch breadth* 4.2 inch length

Shape: Rectangle

Words: Straight out of the pack and into your mouth, that's the usual style of

eating Haldiram's Namkeen. But now, there's a whole new way of doing it! A

blend of our delicious namkeen with a dash of imagination, presented in a

list of yummy recipes, just for you. But where do you get these Recipe

Remixes? Just write to us at the address given below and we'll send you a

Recipe Remix booklet, absolutely free! What's more, you can also try these

recipes at most of the Haldiram's outlets. So, get your own booklet and start

whipping up your remixes in your kitchen itself or simply visit us at our

Headline

Sub

Headline

Body copy

Base line

Pictures



outlets. But wait, there's more! You can even create your own recipes and

send it to us. Who knows your recipe could win you a gift voucher of up to

Rs. 2500/-*. Not only that, your winning recipe could also feature in our next

Haldiram's Recipe Remix booklet. So, get those recipes started and let the

good times begin!

Activity 1:

Take any newspaper and mark those advertisements that you think has a

good message content, right kind of appeals and aspects that can grab

the reader‟s attention.

12.3.4 Selecting the channels of communications

The communicator may use company sales people, reference groups,

blogs, RSS, webinar, online communities and social networking sites to

promote their products. These media are called as personal

communication channels. The word of mouth campaigns, buzz

marketing and viral marketing are some examples of personal

communication channels.

Word of mouth communication: the personal communication between

customers and their reference groups about the product

Buzz marketing: The marketing technique in which organizations create

opinion leaders (people whose opinion are sought by others) and spread the

product information to others.

For example, Gmail - Google did no marketing, they spent no money. They

created scarcity by giving out Gmail accounts only to a handful of "power

users." Other users who aspired to be like these power users "lusted" for a

Gmail account and this manifested itself in their bidding for Gmail invites on

eBay. Demand was created by limited supply; the cachet of having a Gmail

account caused the word of mouth, rather than any marketing activities by

Google.

Viral marketing: The marketing technique of using social networks on the

internet to create the brand image.

Viral marketing is a phenomenon that facilitates and encourages people to

send messages to others voluntarily. Viral promotions may take the form of

video clips, interactive Flash games, images, or even text messages. For

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example, Cadbury's Dairy Milk 2007 Gorilla advert was heavily popularized

on YouTube and Face book.

The communicators are using mass media like print (Newspaper,

magazine, journals) Broadcast (radio, television) Outdoor (hoardings,

Bill board posters) and online (e-mail, communities, groups, websites) to

communicate their product attributes.

12.3.5 Selecting the message source

Messages communicated by the celebrities and proper sources have high

credibility among the target consumers. Many companies use well known

actors and actresses, cricket players, and even cartoon characters to

promote their advertisements. Colgate- Palmolive well known FMCG

company used Indian Dental Association‟s (IDA) recommendation to

promote their toothpaste. As we have seen earlier Rahul Dravid, Amitabh

Bachan and Karishma Kapoor are used as sources for Reebok, Reid and

Tayolr, and Dabur Amla respectively. Companies should be very careful

about the selection of the sources. If the product character does not match

with sources, then product will fail in the market. Recently Pepsi dropped its

sources Rahul Dravid and Sourav Ganguly and selected Rohit Sharma for

the promotion campaigns.

12.3.6 Target Customer Feedback

The communicator collects the feedback on the promotion campaign to

assess how many of target customers are able to see, hear or read the

message. This stage helps communicator to understand how many of target

customers actually able to recall the message? And among them how many

of them really purchased it. Some companies go further and ask the

customer to provide suggestion to improve the promotion campaign.

12.4 Budget Allocation Decisions in Marketing Communications

Media vehicle selection, number of insertions and message structure

depend on the budget allotted for the communication program. A popular

channel may charge more for advertisement but organization gets better

viewership. A newspaper having high circulation charges premium for the

advertisement but all the organization may not have enough budgets to

support such campaign. Hence marketer would like to decide what is the

budget for the communication program? And how shall it be allotted




optimally? There are four different methods on which a media planner

decides the allocation of advertisement budget.

a) Affordable method: This method is used by small companies who don‟t

have enough communication budgets. In this method company allots the

fixed amount for the communication program. The advantage of this method

is company can have better control over the spending on the

communication. The disadvantage is if sales require higher communication

effort, company is not in a position to allocate the budget.

b) Percentage of sales method. In this method company allots the budget

on the basis of total sales forecasted. This is the simplest method. Marketer

can have better control over the budget and also have flexibility to allocate

the budget.

c) Follow the Competitor method: The Company sets its promotion

budget on the basis of competitors advertising effort. Here company closely

monitors the developments of the competitors‟ communication program and

study the industry trends in communication budget prior to setting up

communication budget.

d) Objective and task method: The procedure involved in estimating the

advertisement budget by this method are First, Objectives are set for the

communication programs. Second, identifying the task to be performed to

achieve the objective and third, estimating the cost of achieving these

objectives.

Self Assessment Questions

1. Expansion of AIDA is _________________________________

2. The three appeals used in the message content are ________,

___________ and _____________.

3. The technique of using the social network on the internet to create the

brand image is called as ------------

4. Percentage of sales method of advertisement budget decision is

determined on the basis of affordability of the company

a. True b. False

5. The promotion objective used when customer may have preference over

the product but he/she still not able to decide is --------------

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12.5 Introduction to Advertising

Please remember we already discussed definition of advertisement in the

promotion mix concepts at the beginning of this unit. In this section we will

discuss different types of advertisement and four important decisions

management takes in developing advertisement program.

12.5.1 Types of advertisements

Institutional advertising: The objectives of advertisements are to

enhance the image of the company rather than selling the product. For

example, Wipro uses „Applying Thought‟ for all its businesses thus

promoting the company.

Product advertising: The objective of this type of advertisement is to

communicate about the product attributes to the target customer.

Product advertising is further classified into three types. They are

1. Pioneer advertising: This mode of advertisements is used to create

awareness and demand in the initial stage of the product life cycle.

For example, TATA Docomo advertised initially as to why a person

should pay for the unused minutes when talks may last for seconds.

2. Competitive advertisements: This type of advertisement is used to

highlight the differentiation of organization‟s product. This method is

usually used in the growth phase of product life cycle. For example,

Detergents like Ariel, Surf and Tide constantly differentiate their

product features from each other.

3. Comparative advertisements: This type of advertisements highlight

on the comparing company‟s communication message with

competitors product information. This method is used when the

competition is very high or sales are sluggish. For example, soft

drinks like Pepsi and Coca-cola at some point were involved in

comparative advertising.

12.5.2 Decisions involved in developing advertisement programs

Determining the advertisement objectives: Marketers should determine

the objectives of advertisements in the initial phase of the program. The

objectives of advertisements are

i. Provide the information about advertisements and create

awareness about the product.


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ii. Highlight the uniqueness of company‟s products over competitors.

iii. Reminding about the product and facilitating the thinking about the

product in order to make a purchase.

Determining the advertisement budget: We discussed four important

techniques used in setting up communication budget in the beginning of

this unit. In this section we will discuss the factors that influence the

advertisement budget decisions.

i. Stage of the product in the product life cycle: In the introduction

stage of product life cycle Company spends more money on

advertising to inform the consumers about the product and to

create awareness.

ii. The market share of the company: If the share of the company is

high, it tries to defend by heavy advertisement and if it is low and

market is attractive organizations promote company‟s product

heavily.

Developing advertisement strategy: Advertisement strategy depends on

two important factors. They are developing messages and choosing

proper media.

i. Message development:

Message should be developed only after preparing the

complete target profile.

Understand what interests target customer.

Message should answer the objectives of the program.

Message should be simple and can be understood by anybody.

Use more interactive communication tools.

ii. Selecting advertising media:

Assess how many target customers should view the

communication message.

Point out how many times a target customer will expose to the

advertisement.

Evaluate the impact of advertisement message on the target

audience.

List out the media habits of the target customers.

Find the suitable media for type of product organization have.


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Prepare cost sheet and choose optimum media.

Choose particular media vehicle (Zee channel, Times now,

Prajavani, Hindu etc…)

Decide how many times advertisement should be given in the

year and also decide the continuity of advertisement.

Allocate the media execution strategy on the basis of prime

time and non prime time or seasonal and non seasonal

decisions.

Evaluating advertisements: Communication department is interested in

identifying whether the message given is effectively reaching the

consumer and inducing them to purchase the product. Therefore they

critically evaluate the advertisements through various methods. Some of

the important methods through which advertisements evaluated are

recognition method (showing the advertisement and asking whether thy

have seen it before), aided recall (asking people to tell the brand they

remember) and unaided recall (asking people if they can remember

seeing any ads within an identified product category).

12.5.3 Characteristics of major media

I. Broad cast media

Radio

1. Provides up to date information

2. Reaches the local audience effectively

3. After FM revolution this is one of the fastest growing media.

Television

1. Expensive medium

2. Products can be well explained and demonstrated.

3. It provides wide geographic coverage

4. Image creation is difficult in this medium because of spontaneity.

5. Wide number of media vehicle creates the problem for media

planners.

II. Print media

Newspapers

1. Continue to dominate local markets

2. Retail and classified advertisement are key


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3. Important advantages include flexibility and community prestige

4. Newspapers offer powerful merchandising services like

promotional and research support

Magazines

1. Divided into two broad categories of consumer magazines and

business magazines

2. These categories are also subdivided into monthly publications

and weekly publications

3. Specialty advertisements can be promoted through this media.

III. Outdoor Advertising

1. Includes billboards, painted bulletins or displays, and electric

boards

2. The oldest and simplest media business

3. Effective in the high traffic areas.

4. Environmentalists oppose this type of advertisement.

IV. Online advertising

1. Contains characteristics of both print and broadcast media

2. Enhances two-way communication and encourages audience

participation

3. Example of this media is e- mail.

V. Other Advertising Media

1. Transit advertisement: advertisements placed on the buses and

moving vehicles.

2. Movie advertising: Inserting the advertisement inside the movie

3. In flight commercials: advertisements placed in the airplanes.

4. Using yellow pages and pamphlets to advertise the product.

Activity 2:

Take any product and observe how it is advertised on different media.

Compare the message advertised and where it is more successful.

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12.6 Fundamentals of Sales Promotion

Sales promotions are short term programs that encourage consumers

purchase or sale of a product or service immediately.

According to the Institute of Sales Promotion,

"Sales Promotion comprises that range of techniques used to attain sales or

marketing objectives in a cost effective manner by adding value to a product

or service either to intermediaries or end users, normally but not exclusively

within a defined time period."

Sales promotions are short term incentives and best suits for generating

instant sales. Organizations that are into the retailing and managing it

independently are using these to the maximum. According to AdEX India a

TAM India subsidiary, sales promotion accounted for 18% of total print

advertisement.

Sales promotion methods according to Indian market:

Sales promotion uses three different types of tools. They are consumer

promotion tools, Trade promotion tools and business promotion tools.

Consumer promotion tools: These promotion tools are directly targeted to

customer. These tools stimulate an interest among target customer to

purchase the products quickly. Some of the consumer promotion tools used

in the Indian market is listed below.

(Source: AdEX- a TAM media company)

1. Price promotion: Organization offers price reduction on the product. For

example, Rs 5 off on the purchase of Revive 200g.

2. Contest promotion: organization requests the customer to purchase the

product to participate in the contest and win the prizes. For example,

Britannia‟s „Britannia khao, world cup jao‟

3. Multiple promotions: Promotions offer includes more than one

promotional offer. For example, Rs 30 off and a multipurpose jar free on

the purchase of 1 liter pack of Halo shampoo.

4. Add on promotion: Promotion offers a free or an add on product (same

or different) on the product. For example, an 8 ml Sunsilk shampoo

sachet is free with 75g Pears.

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5. Exchange promotion: Price of a product is reduced in an exchange of an

old product. For example, bring your old color television and take home

a Philips LCD TV for Rs 15,000.

6. Combination promotion: two or more products are offered together at a

discount price or some incentive is given on a combination pack. For

example, save Rs 10 on the combined purchase of Colgate toothpaste

and tooth brush.

7. Volume promotion: allows additional quantity of product free on its

purchase. For example, get 50g extra on purchase of 100g Tide.

Top 10 companies on usage of sale promotions (2007).

1. Maruti Suzuki limited

2. Reliance communications limited

3. Nokia Corporation.

4. LG electronics India ltd.

5. Pantaloons India limited.

6. HP India limited

7. Tata Sky limited

8. Planning consultant India limited.

9. Samsung India electronics limited.

10. Hero Honda motors limited.

Trade promotion tools: These promotions are targeted to retailers and

wholesalers. The objective of this type of promotion is to get the self

space, motivate to sell the products and promote brands in the local

media. There are various types of Trade promotion tools are used in the

market but we are limiting our discussion to two major types. They are

discounts and allowances.

1. Discounts: manufacturer offers straight reduction in the list price on

every purchase that channel member does in the particular period.

2. Allowances: This is the promotion value provided by the

manufacturer to the channel member to advertise the product in the

local media or display the product in the store.

Business Promotion tools: the promotion tools used to lead

generation, reward customer and motivate salespeople for business

customers. An organization uses conventions and trade shows. For

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example, Machine tool industry organizes Amtex exhibition in different

places of the country. Organization also conducts sales contest to its

sales executives to motivate them to sell more.

12.7 Basics of Public Relations and Publicity

Public relations (PR) involves with the management of internal and

external communication of an organization to create and maintain a positive

image. Public relations involve popularizing successes, downplaying

failures, announcing changes, and many other activities such as investor

relations, communication during crises, participating in societal causes etc.

Methods of PR:

Lobby groups: these are established to influence government policy,

corporate policy, or public opinion. These groups claim to represent a

particular interest.

News conferences and grand openings to attract media and customers.

Using written and audio visual material to reach the publics.

Social responsibilities of the organization have shown through public

service activities.

Preparing interactive website, communities and blogs on the internet.

Even the front office desk or the receptionist counter at the entrance or

the enquiry desk is designed with the main objective of establishing PR.

Advantages of PR:

It helps in building and maintaining relations with local community. For

example, coca cola India‟s initiatives of transforming villages‟ campaign

helped it to get better image among the rural consumers.

It helps in keeping better relations with the investors.

A good image with social groups creates word of mouth advertising.

It helps in reducing the conflicts and misconception about company or its

products.

It helps in publicizing the products.

Role of PR in marketing communications: Public relation messages are

created by the company staff and circulated in the media without any cost. If

the message is powerful, it reaches different media. Whenever the company


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faces the issues, it looks towards the public relations rather than

advertisements. For example, Cadbury‟s chocolate worm controversy or

Cola pesticide issue in which PR becomes more applicable than using other

forms of advertisements. The firms public relations should be blended

smoothly with the other promotion activities within the company have overall

integrated marketing communications effort.

Publicity:

Publicity can be said as a simple act of making a suggestion to the

concerned parties – TV or radio channel, news reporter or journalist, film

makers, etc. that leads to the inclusion of a company/products in an already

existing story or a newly developed one. Publicity may also include any such

information that attracts attention to a company, its products, its people or

any event, usually generated by a third party such as media. Publicity

maybe a part of PR or it may be independent of it in certain situations.

Good Publicity and Bad Publicity:

Publicity may have positive or negative impacts. For example, it became a

negative publicity for Coca-Cola when people in India, started to throw or

break the bottles on the roads because of the belief that it contained

pesticides or toxic substances. News channels covered the same giving

negative publicity to the company and the products.

Ways in which organizations can use publicity as a communication tool are

as follows:

Organizing events, contests, exhibitions, public displays, tours, etc.

Sponsoring awards, scholarships or giving charity for any noble cause.

Issuing reports, conducting survey or polls, taking stand on any

debatable or environmental issues, etc.

Any other way that is appropriate like for example displaying the

products in a movie and asking the lead actors to use the products in

that movie.

Ways in which organizations can avoid or minimize the effects of bad

publicity:

Providing people with the accurate information and giving clarifications if

needed either through press release, media interviews, websites, public

messages, advertising etc.





Company‟s top management or spokesperson can give a public

statement or comment in the various media.

Improvising Public Relations and designing good publicity message to

erase the effects of bad publicity.

Continuing to provide quality products and services to the consumers.

Involving in community work or environmental protection campaigns or

any such activity for a good cause.

Self Assessment Questions

6. _________ Advertisements are used to create awareness.

7. _________ and _________ are factors that determine the

advertisement budget.

8. Television is a type of

a. Broadcast media.

b. Print media.

c. Out door media.

d. Online media

9. A sales promotion technique in which marketer offers two or more

products together at a discount price or some incentive is given on a

combination pack is called as ______________

10. Lobbying is the method of

a. Sales promotion

b. Public relations

c. Advertising

d. All the above

12.8 Summary

Promotion mix is comprises of a combination of various marketing

communications techniques which includes of Advertising, Sales

Promotion, Public Relation, Publicity, Personal Selling and Direct

Marketing.

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AIDA model discusses creating attention, interest, desire in the

consumers and making them ready for action which is nothing but

buying the product. .

Buzz marketing refers to the marketing technique in which organizations

create opinion leaders (people whose opinion are sought by others) and

spread the product information to others.

Advertisement allocation (ad budget) can be done on the basis of

affordable method, objective and task method, percentage of sales

method, competition method.

Advertisements are classified as institutional advertising and product

advertising.

Media planners have broadcast media, print media, outdoor media,

online media and other types of Medias to allocate the budget.

Trade promotions are provided to channel members where as

Conference and exhibitions are examples of business promotion tools.

Lobbying and press conferences are tools of Public Relations.

List of Key terms

Promotion mix

Advertising

Sales promotion

Public Relations

Publicity

Media

Ad appeals

Message

Ad copy

Target audience or customers

12.9 Terminal Questions

1. What do you mean by promotion mix?

2. Explain the reasons for growth of integrated marketing communications.

3. Explain the communication development process with examples.

4. What do you mean by consumer sale promotion? Explain the consumer

sales promotion techniques used in the Indian market.

5. Write a note on public relations.



12.10 Answers

Answers to Self Assessment Questions:

1. Attention, Interest, Desire and Action.

2. Emotional, rational and moral

3. Viral marketing

4. False

5. Conviction

6. Pioneer.

7. Product stage in the PLC and market share.

8. Broadcast media.

9. Combination promotions.

10. Public relations.

Answer to Terminal Questions:

1. Refer 12.1

2. Refer 12.2

3. Refer 12.3

4. Refer 12.6

5. Refer 12.7

12.11 Mini-Case

Sales impact of Goodwill

Goodwill Electricals is a manufacturer of home appliances. It is a company

that distributes its products in its own showrooms located in metros and

cities. In March this year, they introduced an electric shaver priced at almost

15% lower than the competitors. This shaver according to the manufacturer

is superior to competitive products in quality and user-friendly.

Goodwill was keen to launch their shaver in the national market.

Accordingly, they gave advertisements in print media (in English

newspapers and magazines). The advertisement is as below:

Headline: You can shave electrically

Body: Picture of shaver with brand name „Smooth‟ and word with across the

picture.



Closing: Brand name „Smooth‟ written in bold and address of company in

right hand corner.

Till June end Goodwill had spent Rs.25 lakhs in advertisements as against

sales of only Rs.30,000.

Mr. Rajan the proprietor was worried and depressed. On July 3rd, Rajan

decided to abandon the whole project of shavers. However, before doing so,

he contacted Brilliant Ad Agency and made a contract with them to have a

last shot at establishing the product.

After a careful analysis of the situation and market position, by the end of

July, the agency presented the following advertisement:

Headline: Now you can shave in the Luxury of your Bed.

Body: Picture showing a double-bed with a lady sleeping peacefully on one

side of the bed. On the other side, a man is shown holding a cup of tea in

his left hand and shaving his cheek with his right hand. He is shown to be

absolutely relaxed and reclining on the pillows and the whole setting is of a

middle class bed-room

Closing: Below the picture, brand name „Smooth‟ is mentioned and below

this in brackets (*) (August 1st onwards shave in Luxury; contact nos.) (No.

of distributor) Then on right hand corner-Quality symbol of Goodwill.

Within August 5th and after just 6 ad insertions, Goodwill recorded sales on

an all India basis of about Rs. 12 lakhs and pending orders of about Rs. 3

lakhs.

(*) Action date was changed on each advertisement.

(Source: Modified case based on original case study of „Fast Track Electricals-

Cases and Simulations in Marketing Management edited by Prof. M.K. Rampal and

Dr. S.L. Gupta)

One of the new recruits in the Ad agency was very impressed with this move

and compared the appeals of the 2 print ads. If he did this comparison and

found out the right associations, then he would be able to know how the

desired impact on sales was achieved. The new recruit is also interested to

know how other media types could be utilized to promote this product.

Assume you are the new recruit and make the assessment.

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