Principles Of Marketing Unit 5 promotion Decision (1).pdf

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Principles Of Marketing
Unit 5: Promotion Decisions
(Part 1)
Concept of Promotion :
Promotion is the process of communication with the potential
buyers involving information, persuasion and influence. It
includes all types of personal or impersonal communication
with the customers and middlemen.
No business enterprise can sell its goods and services without
informing the people about the availability of products and
without creating in them the desire to buy the goods and
services.
Promotion planning refers to the formulation of objectives,
budgets and strategies of promotion and selection of
promotional techniques in the light of marketing conditions.

Objectives of Promotion :
(i) To Provide Information: The first aim of promotion is
to inform the prospective customers about the
availability, features, and uses of products so that
they need not search out for them.

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(ii) To Stimulate Demand: Promotional activities are
undertaken to create awareness and interest of
consumers in new products.
(iii) To Differentiate the Product: A businessman carries
on promotional activities in order to differentiate his
product from the competitive products. The objective
of promotion is not only to increase one time sale of a
products
(iv) To Highlight the Utility of the Product: Promotional
activities add value to a product by emphasizing its
special features.
(v) To Meet Competition and Stabilise Sales: Promotional
activities are undertaken to counter competition by
reassuring the customers about the quality and price
of the product or service.
(vi) To Build Image: Publicity, public relations, advertising,
and other promotional activities are often used to
build a favourable public image of the firm.

Promotion Mix :
The term ‘promotion mix’ is used to refer to the combination of
different kinds of promotional techniques used by a business
enterprise to create and maintain sales of its products.
A firm can utilize one or more of four basic tools of promotion,
viz.., personal selling, advertising, sales promotion, and
publicity. These are known as elements of promotion mix.

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Promotion Mix Tools :
(i) Personal Selling: Personal selling or a salesmanship is
the process of assisting and persuading a prospective
buyer to buy a product or service, in a face-to-face
situation. It involves direct and personal contact
between the prospective buyer and the seller or his
representative. Personal selling is the most, effective
tool of promotion.

(ii) Advertising: Advertising is any non-personal
presentation or promotion of goods, services, or ideas. It
involves transmission of a standard message to a large
number of people. The message which is transmitted is
known as advertisement.

(iii) Publicity: Publicity is a non-personal stimulation of
demand for a product, service, or a business unit by
planting commercially significant news about it in a
published medium or by obtaining favourable
presentation of it upon radio, television or stage that is
not paid for by the identified sponsor.

(iv) Sales Promotion: It includes all the activities, other
than personal selling, advertising, and publicity, that
stimulate consumer purchasing and dealer
effectiveness. Sales promotion activities are designed to
supplement and reinforce advertising and personal
selling.

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Promotion Decision :
A promotion decision refers to the process of choosing and
implementing various promotional strategies and tactics to
effectively communicate and market a product, service, or
brand to the target audience.
(i) Identification of the Target Audience
(ii) Determination of the Promotion Objectives
(iii) Development of Effective Message
(iv) Selection of the Communication Channel
(v) Establishment of Promotion Budget
(vi) Decision on the Promotion Mix
(vii) Measurement of Promotion’s Results
(viii) Organisation and Management of integrated Marketing
Communications
Communication Process :
 Sender: S/he begins the process as s/he feels the need or is
professionally required to communicate ideas, thoughts, or
messages.
 Encoding: The sender selects the codes or structure which
will be the ‘content’ or ‘form’ of the message. This selection
depends on the language or communication skills of the
sender and the comprehension level of the receiver.
 Message/Medium : Just as ‘water’ is the ‘message’ which is
carried through the ‘pipes’ which become the medium, the
message requires the medium.

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 Decoding: Decoding means interpretation of the message
by the receiver. It depends on the clarity of the encoding,
comprehension skills and noise free environment for oral
messages.
 Receiver: The receiver is the person who receives the
message. S/he should be attentive and ready to ‘receive’
the complete message
 Feedback: Receiver’s response to the message is the final
step in the communication cycle as it indicates if the
message received is the one intended by the sender.

Integrated Marketing Communication :
The process of synchronizing a brand’s messaging so that it is
consistent across all media that the brand utilises to reach its
target audience is known as Integrated Marketing
Communications (IMC).
“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.”
Importance of IMC :
 Building of Trust : The goal of integrated marketing
initiatives is to develop a relationship with the consumer.
By promoting their brands and enhancing their
reputations, businesses attempt to establish rapport.

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 Creating Consistency : Marketing professionals can
effectively communicate a consistent brand story and
messaging across a variety of communication channels to
raise awareness because of IMC and it is one of its key
advantages.
 Personalized marketing campaigns : Individualised emails
are used in personalised communications as a tool; they
also include loyalty programmes that offer discounts or
one-time promotions as rewards for their customers.
 Cost effective : IMC creates multi usable campaigns that
can be used in every type of media; therefore it is
considered as a cost effective tool.
 Return on investment : A company’s return on investment
can be increased more effectively by using unified
messages across many channels than by using a number of
inconsistent advertisements or commercials.

Publicity:
“Publicity is any promotional communication regarding an
organisation and/or its products where the message is not
paid for by the organisation benefiting from it.”
Publicity is a basic method of advertising that involves
spreading brand knowledge among the pub lic through media
coverage and other forms of communication. The main goal is
to raise brand awareness by disseminating information about
the brand through unpaid mass media channels.

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Advantages of Publicity:
 Advertisements are less real and believable in the eyes of
readers; publicity has high credibility. As it is generated
through third party sources
 Publicity involves low or no cost as compared to other tools
of promotion.
 Social media and internet have made it super easy for
brands to disperse information in the minimum possible
time. Therefore, if your brand is promoted by using
publicity as a tool, there are high chances that it will
capture a big market size and lead to good promotion of a
particular good/service.
 Publicity allows brands to reach a massive audience in a
minimum time. As the brand will become more publicly
known, more and more customers will attract towards it.

Direct marketing:
“direct marketing involves the use of mail, telephone, fax, e-
mail, or Internet to communicate directly with or solicit a direct
response from specific customers and prospects.”
In direct marketing, businesses connect with their target
customers directly in an effort to generate a response or a
transaction.

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Benefits of Direct marketing:
(a) Customers find direct marketing to be an extremely
handy and hassle-free method of shopping.
(b) It saves time and introduces buyers to a wider range
of goods.
(c) Direct marketing offers marketers the chance to
communicate with potential customers on a more personal
level.
(d) It can assist marketers in evaluating the effectiveness
of their efforts and selecting the most beneficial strategy.
(e) Direct marketers are able to maintain a connection
with each customer and receive regular feedbacks from
them.




Part 2 : Developments in
Marketing
Sustainable Marketing :
Promoting goods, services, and behaviours that are socially
responsible is known as sustainable marketing.

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Sustainability marketing encourages consumers to choose
sustainable products over throw away ones by portr aying a
brand as socially conscious and accountable.
Green marketing, also known as sustainable marketing, is a
strategy that incorporates waste management and energy
regeneration into marketing and promotional strategies.
Sustainable marketing draws atte ntion to a company’s efforts
to improve its social and environmental sustainability.

Issues in Sustainable Marketing :
1. Lack of Awareness : In this situation, marketers must
acknowledge their pioneering roles in sustainability.
Sustainable education should involve ongoing efforts
because it cannot be accomplished in one go.
2. Lack of Profitability: This is also possible, particularly when
companies jump headfirst into green efforts without doing
adequate testing. Marketers frequently have to handle the
consequences of these losses.
3. Reputational Damage : It is another important issue
generated in sustainability marketing practice. Companies
are required to make their customers stable for their
products buying but if consumers switch from one product
to another then the reputation of the company suffers.
4. Behavioural Change: Encouraging consumers to adopt more
sustainable behaviours can be difficult due to habits, cost
considerations and a perception that sustainable products
are less convenient.

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5. Green Washing : Many companies claim to be
environmentally friendly withou t substantiating their
claims, which misleads consumers and undermines the
credibility of genuine sustainability efforts.

Rural Marketing :
Rural marketing is the process of creating the product, price,
place, and promotion elements of the marketing mix fo r a good
or service. It entails interacting with the rural and urban
markets, meeting consumer expectations, and achieving
organizational goals.
The most crucial element of rural marketing is product
utilization, which also influences other factors like p rice,
promotion, brand recognition, and organization’s image. A
better understanding of how the product is used enables the
company to efficiently manage and arrange the marketing mix’s
components for overall success.
Characteristics of Rural Marketing :
 Greater Capacity for Purchases: Rural residents’ purchasing
power is increasing. Marketers are growing their activities
in rural India as a result of realising the potential of these
areas.
 Market Expansion: Over the years, the rural market has
shown consistent growth. The demand for branded,

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conventional, and consumer goods has all increased over
time.
 Development of Infrastructure: Rural marketing now plays
a bigger role in India thanks to the development of
infrastructural amenities like bridge construc tion,
transportation, communication, rural electricity, and
public service initiatives.
 Low Quality of Living: Rural customers suffer from a
variety of socioeconomic backwardness, and rural areas
have a low standard of living. In various regions of the
nation, this varies.
 A Traditional Outlook: Rural consumers value long-standing
traditions and practices. Change is not what they prefer.
The demand pattern of the rural population is gradually
shifting, and companies have a market for branded goods
too in the rural areas.

Rural Marketing Mix :
1. Product Mix: Product is a key factor in determining a
company’s success. In all material ways, the products must
be suited for rural consumers. The corporation must
produce goods in accordance with the current and
anticipated conditions of rural consumers. Size, shape,
colour, weight, and other product attributes, quality, brand
name, packaging, labelling, services, and other pertinent
aspects must match the demands, desires, and financial
capability of the target market.

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2. Price Mix: Particularly for rural areas, the price is the
distinctive component of the marketing mix. Due to their
higher price sensitivity, rural consumers tend to make
more impulsive purchases. Pricing plans and policies need
to be developed with attention and caution

3. Promotional Mix: Rural markets have a subtle but potent
power. To serve the needs of the rural population, several
adjustments are necessary. The distribution and promotion
tactics are of utmost significance.

4. Place Mix: The crucial distributional difficulties are present
in rural markets. The marketer needs to make the
distribution plans stronger. It is a huge effort to distribute
little and medium-sized packages over long distances and
on bad roads into remote areas of rural India while
convincing the rural retailers to believe in the mobility


Social Marketing :
Social marketing is the application of marketing strategies to
benefit the general population rather than the corporation in
terms of financial gain. Environmental issues, health, safety,
ethics, legislation, human rights, peace, and other causes that
benefit society as a whole are covered by social marketing.

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Advantages of Social Marketing :
1. It guarantees that economic planning is more important
and beneficial to society.
2. Societal marketing enhances the general level of life.
3. Financial resources are utilized effectively.
4. Social welfare and society at large should be given priority
in products and corporate policy.
5. Promote long-term growth and expansion.
6. Expands market share and sales. 8. It offers one a
competitive edge over rivals.
Issues in Social Marketing :
1. The ultimate goal of social marketing is to advance the
interests of the target market or society as a whole, not
the marketer. Due of this, it differs from commercial
marketing but resembles non-profit marketing.

2. Behaviour influence, or more specifically, bringing about a
change in behaviour, is the fundamental method of
generating increased welfare. Social marketers work in the
field of behaviour. The goal in social situations is to
influence behaviour, just as it is in private situations.

3. The main player in the social marketing process is the
target audience. Excellent social media marketing is
always completely focused on t he target audience. The
optimum term to employ is “customer,” even though

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“client” and “target audience member” can be used more
or less interchangeably with it.

Digital Marketing :
Online marketing is another name for digital marketing. This
includes not only email, social media, and web -based
advertising, but also text and multimedia messages as a
marketing channel. Digital marketing takes into account how
each tool or digital channel can convert prospects.

Tools of Digital Marketing :
1. Search Engine Optimisation: It is one of the most crucial
tools for generating leads that eventually turn into
customers. It is the natural process of attracting quality
free traffic from potential customers to your website
2. 2. Pay Per Click (PPC): Pay per click is also very important
type of digital marketing model which follows paid form for
advertisement to attract the target customers. The main
distinction between search engine optimization and pay
per click is that PPC is a paid form of digital promotion
while SEO is an unpaid method, both of which fall under the
umbrella of social media marketing.
3. Social Media Marketing: The most widely used social media
platforms are Facebook, Instagram, Twitter, Snapchat,
YouTube, and Pinterest. These platforms can be used very

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effectively to promote your brand, product, or service
because they encourage direct communication with the
user

4. Content Marketing: It is the form of digital promotion and
online marketing. Some of the forms of content marketing
are interviews, surveys, case studies, infographics, product
reviews, vlogs, press releases, and templates.


5. Affiliate Marketing: Currently, affiliate marketing is a
common form of promotional strategy in digital marketing,
where a marketer, blogger, or vlogger sells or provides
links to a seller’s products to their target audience.

6. Influencer Marketing: Influencer marketing helps a brand
to generate more leads and draw in new customers. It is a
tried-and-true tactic that is a part of the larger marketing
mix. In order for influencer marketing to be successful, you
must establish a connection between the takers of the
influencer’s content and yourself.
7. E-mail Marketing: A well-designed signing form helps to
build the trust and reliability factor for your brand.
Engaging and relevant c ontent also helps in email
marketing.

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