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O. NO.


The PGDM programme is well structured and integrated course business

studies. The main objective of practical training at PGDM level is to develop
skill in student by supplement to the theoretical study of business
management in general. Industrial training helps to gain real life knowledge
about the industrial environment and business practices. The PGDM
programme provides student with a fundamental knowledge of business and
organizational functions and activities, as well as an exposure to strategic
thinking of management.

In every professional course, training is an important factor. Professors give

us theoretical knowledge of various subjects in the college but we are
practically exposed of such subjects when we get the training in the
organization. It is only the training through which I come to know that what
an industry is and how it works. I can learn about various departmental
operations being performed in the industry, which would, in return, help me
in the future when I will enter the practical field.

Training is an integral part of PGDM and each and every student has to
undergo the training for 2 months in a company and then prepare a project
report on the same after the completion of training.
During this whole training I got a lot of experience and came to know about
the management practices in real that how it differs from those of theoretical
knowledge and the practically in the real life.

In todays globalize world, where cutthroat competition is prevailing in the

market, theoretical knowledge is not sufficient. Beside this one need to have
practical knowledge, which would help an individual in his/her carrier
activities and it is true that “Experience is best teacher”.


With immense pleasure, I would like to present this project report for Kaira
District Co-operative Milk Producers’ Union Ltd., Anand. It has been an
enriching experience for me to undergo my summer training at AMUL, which
would not have possible without the goodwill and support of the people
RESEARCH, INDORE I would like to express my sincere thanks too all those
who helped me during my practical training programme.

Words are insufficient to express my gratitude toward Mr. T.K ROY, the
depot Head of AMUL (Indore). I am very thankful to M r. Radheshyam, who
helped me at every step whenever needed.
At last but not least my grateful thanks are also extended to M r. Naresh
singh (Director’ CIMR INDORE) and my thanks to all my faculty members for
the proper guidance and assistance Extended by them.

However, I accept the sole responsibility for any possible error of omission
and would be extremely grateful to the readers of this project report if they
bring such mistakes to my notice.


I hereby declare that the project report entitled “ADOPTION OF A NEW

PRODUCTS” is the produce of my sincere effort. This Summer Internship
Project is being submitted by me alone, at CHAMELI DEVI INSTITUTE OF
MANAGEMENT & RESEARCH, INDORE for the partial fulfillment of the course
PGDM, and the report has not been submitted to any other educational
institutions for any other purpose.


This is to certify that the project work entitled “ADOPTION OF A NEW

FEDERATION LTD. For INDORE Branch is a piece of work done by Deepak
Arora , Chamelidevi Institute Of Management & Research, under my
guidance and supervision for the partial fulfillment of the course PGDM,
Chamelidevi Institute Of Management & Research , Indore.

To the best of my work knowledge and belief the thesis embodies the
work of the candidate himself and has been duly completed. Simultaneously,
the thesis fulfills the requirement of the rules and regulation related to the
summer internship of the institute and I am assured that the project is up-to
the standard both in respect to the contents and language for being referred
to the examiner.
Signature of the Faculty Guide:

Name of the faculty guide:

Prof. Amit Kumar

Dairy is a place where handling of milk and milk products is done and
technology refers to the application of scientific knowledge for practical
purposes. Dairy technology has been defined as that branch of dairy science,
which deals with the processing of milk and the manufacture of milk
products on an industrial scale.

The dairy sector in the India has shown remarkable development in the past
decade and India has now become one of the largest producers of milk and
value-added milk products in the world.

The dairy sector has developed through co-operatives in many parts of the
State. During 1997-98, the State had 60 milk processing plants with an
aggregate processing capacity of 5.8 million liters per day. In addition to
these processing plants, 123 Government and 33 co-operatives milk chilling
centers operate in the State.

Also India today is the lowest cost producer of per liter of milk in the world,
at 27 cents, compared with the U.S' 63 cents, and Japan’s $2.8 dollars. Also
to take advantage of this lowest cost of milk production and increasing
production in the country multinational companies are planning to expand
their activities here. Some of these milk producers have already obtained
quality standard certificates from the authorities. This will help them in
marketing their products in foreign countries in processed form.

The urban market for milk products is expected to grow at an accelerated

pace of around 33% per annum to around Rs.43, 500 crores by year 2005.
This growth is going to come from the greater emphasis on the processed
foods sector and also by increase in the conversion of milk into milk
products. By 2005, the value of Indian dairy produce is expected to be Rs 10,
00, 000 million. Presently the market is valued at around Rs.7, 00, 000 mn
Milk Production from 1950 to 2020

1950 – 17 million tonnes

1996 – 70.8 million tonnes
1997 – 74.3 million tonnes
(Projected) 2020 – 240 million tonnes
Expected to reach- 220 to 250 mt – 2020
India contributes to world milk production rise from 12-15 % & it will increase
up to 30-35% (year 2020)
World's Major Milk Producers (Million MTs)

2002-03 2003-04 (Approx.)


India 81 84.5

Brazil 75 77

Russia 34 33

Germany 27 27

France 24 24

Pakistan 21 22

USA 71 71

UK 14 14

Ukraine 15 14

Poland 12 12

New Zealand 11 12

Netherlands 11 11

Italy 10 10

Australia 9 10
Research and Development in Dairy Industry:

The research and development need to the dairy industry to develop and
survives for long time with better status. The various institute and milk dairy
companies R&D results provide base for today’s industry growth and
development. The research and development of products of dairy, like yogurt
and cheese market research and company reports provides insights into
product and market trends, analysis opportunities, sales and marketing
strategies will help local milk

Unions to develop and spread world wide through obtaining this knowledge.
Specific on market share, segmentation, size and growth in the US and
global markets are also helps industry to expand its market worldwide even
small union also.

Development of Food Processing Industry:

The food processing industry sector in India is one of the largest in terms of
production, consumption, export and growth prospects. The government of
accorded it is a high priority, with a number of fiscal relieves and incentives,
to encourage commercialization and value addition to agriculture produce,
for minimizing harvest wastage, generating employment and export growth.

Food processing industry is providing backbone support to the milk

industry. The development food products by using milk can give good
market opportunities to produces milk.

Products and Industry Status:

Among the products manufactured by organized sector are Ghee,

Butter, Cheese, Ice-Creams, Milk powders, Melted milk food, Infant food,
condensed milk etc... Some milk products like Casein and Lactose are also
being manufactured lately. Therefore, there is good scope for manufacturing
these products locally.

Liberalization of the economy has led to a flood of new entrants, including

MNCs due to good prospects and abundant supply.

Investment Potential in Milk Products:

At the present rate of growth, India is expected to overtake the US in

milk production by the year 2010, when demand is expected to be over
125.69 ml.tn. Being largely imported, manufacture of casein and lactose has
good scope in the country.

Exports of milk products have been decentralized and export in 2005-

2010 is estimated at 71.875 cr.

Production of Milk in India:

The facts and figures here shown are calculated on the basis of percentage
increases pear year.

Production in
million MT

1993-94 61.2

1994-95 63.5

1995-96 65.0

1996-97 68.0

1997-98 71.0

1998-99 74.5

1999-00 78.0

2000-01 81.51

2001-02 85.17

2002-03 89.0

2003-04 93.0
2004-05 97.65

2005-06 102.45

2006-07 107.58

Major Indian and Overseas Players in the Food industry are:

• Hindustan Uni Lever • Perfetti India Ltd.

• MTR foods limited • Cadbury India Ltd.
• Godrej industries Limited • PepsiCo India Holdings
• Amul • Nestle India Pvt. Ltd.
• Dabur India Ltd. • Britannia Industries Ltd.
• ITC Limited • Parle Products Pvt. Ltd.
• Agro Tech Foods •

In the year1946 the first milk union was established. This union was started
with 250 liters of milk per day. In the year1955 AMUL was established. In the
year 1946 the union was known as KAIRA DISTRICT CO-OPERATIVE MILK
PRODUCERS’ UNION. This union selected the brand name AMUL in 1955.

The brand name Amul means “AMULYA”. This word derived form the Sanskrit
word “AMULYA” which means “PRICELESS”.

A quality control expert in Anand had suggested the brand name “AMUL”.
Amul products have been in use in millions of homes since1946. Amul Butter,
Amul Milk Powder, Amul Ghee, Amul spray, Amul Cheese, Amul Chocolates,
Amul Shrikhand, Amul Ice cream,Nutramul, Amul Milk and Amulya have
made Amul a leading food brand in India. (The total sale is Rs. 6 billion in
2005). Today Amul is a symbol of many things like of the high-quality
products sold at reasonable prices, of the genesis of a vast co-operative
network, of the triumph of indigenous technology, of the marketing savvy of
affirmers' organization. And have a proven model for dairy development
(Generally known as “ANAND PATTERN”)

In the early 40’s, the main sources of earning for the farmers of Kaira district
were farming and selling of milk. That time there was high demand for milk
in Bombay. The main supplier of the milk was Polson dairy limited, which was
a privately owned company and held monopoly over the supply of milk at
Bombay from the Kaira district. This system leads to exploitation of poor and
illiterates farmers by the private traders. The traders used to beside the
prices of milk and the farmers were forced to accept it without uttering a
single word.

However, when the exploitation became intolerable, the farmers were

frustrated. They collectively appealed to Sardar Vallabhbhai Patel, who was a
leading activist in the freedom movement. Sardar Patel advised the farmers
to sell the milk on their own by establishing a co-operative union, Instead of
supplying milk to private traders. Sardar Patel sent the farmers to Shri
Morarji Desai in order to gain his co-operation and help. Shri Desai held a
meeting at Samar kha village near Anand, on 4th January 1946. He advised
the farmers to form a society for collection of the milk.

These village societies would collect the milk themselves and would decide
the prices at which they can sell the milk. The district union was also form to
collect the milk from such village co-operative societies and to sell them. It
was also resolved that the Government should be asked to buy milk from the

However, the govt. did not seem to help farmers by any means. It gave the
negative response by turning down the demand for the milk. To respond to
this action of govt., the farmers of Kaira district went on a milk strike. For 15
whole days not a single drop of milk was sold to the traders. As a result the
Bombay milk scheme was severely affected. The milk commissioner of
Bombay then visited Anand to assess the situation. Having seemed the
condition, he decided to fulfill the farmers demand.
Thus their cooperative unions were forced at the village and district level to
collect and sell milk on a cooperative basis, without the intervention of
Government. Mr.Verghese Kurien showed main interest in establishing union
who was supported by Shri Tribhuvandas Patel who lead the farmers in
forming the Co- operative unions at the village level. The Kaira district milk
producers union was thus established in ANAND and was registered formally
on 14th December 1946. Since farmers sold all the milk in Anand through a
co-operative union, it was commonly resolved to sell the milk under the
brand name AMUL.

At initial stage only 250 liters of milk was collected everyday. But with the
growing awareness of the benefits of the cooperativeness, the collection of
milk increased. Today Amul collect 11 lakhs liters of milk everyday. Since
milk was a perishable commodity it becomes difficult to preserve milk flora
longer period .Besides when the milk was to be collected from the far places,
there was a fear of spoiling of milk. To overcome this problem the union
thought out to develop the chilling unit at various junctions, which would
collect the milk and could chill it, so as to preserve it for a longer period.
Thus, today Amul has more than 150 chilling centers in various villages. Milk
is collected from almost 1073 societies.

With the financial help from UNICEF, assistance from the govt. of New
Zealand under the Colombo plan, of Rs. 50 millions for factory to
manufacture milk powder and butter was planned. Dr. Rajendra Prasad, the
president of India laid the foundation on November 15, 1954. Shri Pandit
Jawaharlal Nehru, the prime minister of India declared it open at Amul dairy
on November 20, 1955.
The system succeeded mainly because it provides an assured market at
remunerative prices for producers' milk besides acting as a channel to
market the production enhancement package. What's more, it does not
disturb the agro-system of the farmers. It also enables the consumer an
access to high quality milk and milk products. Contrary to the traditional
system, when the profit of the business was cornered by the middlemen, the
system ensured that the profit goes to the participants for their socio-
economic upliftment and common good.

Looking back on the path traversed by Amul, the following features make it a
pattern and model for emulation elsewhere.

Amul has been able to:

• Produce an appropriate blend of the policy makers farmers board of

management and the professionals: each group appreciating its rotes and

• Bring at the command of the rural milk producers the best of the
technology and harness its fruit for betterment.

• Provide a support system to the milk producers without disturbing their

agro-economic systems,

• Plough back the profits, by prudent use of men, material and machines,
in the rural sector for the common good and betterment of the member

• Even though, growing with time and on scale, it has remained with the
smallest producer members. In that sense. Amul is an example par
excellence, of an intervention for rural change.

The Union looks after policy formulation, processing and marketing of milk,
provision of technical inputs to enhance milk yield of animals, the artificial
insemination service, veterinary care, better feeds and the like - all through
the village societies. Basically the union and cooperation of people brought
Amul into fame i.e. AMUL (ANAND MILK UNION LIMITED), a name which

GCMMF Overview:

GCMMF is the India’s largest food products marketing organization. It is a

state level apex body of milk co-operatives in Gujarat, which aims to provide
remunerative returns to the farmers and also serves the interest of
consumers by providing quality products, which are good value for money.


The vision of AMUL is as follows:

• To serve the interests of the milk producers

• To provide quality products that offer the best value to consumers for money spent.


Sales turnover of GCMMF

Year Rs. (in millions) US $ (in millions)
1995-96 13790 400
1996-97 15540 450
1997-98 18840 455
1998-99 22192 493
1999-00 22185 493
2000-01 22588 500
2001-02 23365 500
2002-03 27457 575
2003-04 28941 616
2004-05 29225 672
2005-06 37740 839



Besides India, AMUL has entered overseas markets such as Mauritius, UAE, USA, Bangladesh,
Australia, China, Singapore, Hong Kong and a few South African nations. Other potential
markets being considered include Sri Lanka.

Annual Revenues : $1.33 billion USD

Members : 13 district cooperative milk

producers` union

No of Employees : 2.7 million

No of village societies : 13,141

Total Milk handling capacity : 10.21 million liters per day

Annual Milk Collection : 2.69 billion liters

Daily Milk Collection : 7.4 million liters

Milk Drying Capacity : 626 Mts. Per day

Cattle feed Manufacturing Capacity : 3090 Mts. Per day


✔ AMUL has achieved the following landmarks.

✔ AMUL is the largest food brand in India.
✔ AMUL is the world`s largest pouched milk brand.
✔ AMUL is the world`s largest vegetarian cheese brand
✔ CRISIL has assigned its highest ratings of “AAA” to the various bank facilities of GCMMF


AMUL has the largest cold chain network in India (i.e. 18000
refrigerators) as compared to any other company. The chemical components
of milk are water, SNF and solids. Milk is very perishable product so it has to
be consumed within 24 hours. In order to avoid wastage AMUL converts the
milk in to SNF and milk solids by evaporating the water, which comprises up
to 60-70% of milk contents. This is possible only if the distribution channel
right from the producer to the consumer is well organized. It will be
surprising to know that AMUL makes even the ‘Sarpanch’ to eat pizza i.e. it
supplies pizzas even to rural market.

Last year, they are divided the retail market into 14 specific segments to
achieve further distribution efficiency. This year our focus was on inducting
distributors having expertise in servicing such Specific market segments.
This initiative is yielding results by way of ensuring wider availability of our
product range.

The role of distributors in our business process has never been more diverse
or more important, as it is today. As a matter of fact, we consider our
Distributor to be the real “Marketing Manager” of our organization. To
enhance business performance of our Distributors, a workshop on Marketing
and Sales Management was designed in collaboration with a premier
business school. The objective of the entire initiative was to upgrade the
knowledge of our Distributors in terms of contemporary Business
Management Practices, so that they can perform well not only as our
business partner but also as Marketing Managers. During the year, 659
Distributors have undergone this programme in 39 locations. Cold Storage is
an extremely essential component in the Federation’s distribution process.

Unfortunately, availability of efficient cold storage facilities is grossly

inadequate in our country. To cope up with the increasing need of suitable
cold stores closer to our markets, we have continued our endeavour of
creating the Federation’s own cold stores this year in various locations
across the country. We now own 24 state of the art cold rooms of different


Chitale Dairy bears the quality tag of the Chitale Group.The company
manufactures and markets highly functional products. These cutting edge
products are manufactured using state-of-the-art technology and find
applications in day-to-day transactions. Chitale dairy annual turn over of over
Rs. 500 crores.


Katraj was incorporated in 1960 with an intension of providing an organized

facility of milk collection for the village level farmers situated in Pune district.
Katraj Dairy started with milk collection of about 0.30 lakh (30.000) litres in
the first year of operation and today, has steadily grown to over 3.25 lakh
(0.32million) litres per day and has a financial turnover of over Rs.150 crores
(Rs.1500 million / US$ 33 million) against Amul’s annual turnover of over Rs.
52554 million / US$ 1325 million.


The Kolhapur District Co-operative Milk producers Union Ltd., Kolhapur was
established on 16th March 1963 under the Co-operative Act. It made a
moderate beginning by collecting 700 liters of Milk per day from 22 societies.
Most success stories have a humble begining & so have been with Kolhapur
Zilla Sahakari Dudh Utpadak Sangh Ltd.

On 16th March 1963 a spark stormed a fire to help the White Revolution
revolt heavily, when on this day came into being the “Kolhapur Zilla Sahakari
Dudh Utpadak Sangh Ltd” with the introduction of its popular brand of Gokul
Milk & its wide range of Dairy products in to the market. Gokul milk has 6,
05,000 litres average sales per day.


Organization Structure is divided into two parts:

• External Organization Structure

• Internal Organization Structure

• External Organization Structure

External Organization Structure is the organization structure that affects
the organization from the out side.

State Level Marketing Federation

District Milk Product Union Ltd.

Village Milk Product Union Ltd.


As we know, GCMMF is unit of Gujarat Milk Marketing Federation, which

is a co-operative organization. The villagers of more than 10000
villages of Gujarat are the bases of this structure. They all make village
milk producers union, district level milk producers union and then a
state level marketing federation is established. The structure is line
relationship, which provides easy way to operation. It also provides
better communication between two stages.
Internal Organization Structure:

The following is internal organization chart of Amul:

Organization Structure Chart


Managing Director

General Manager

Asst. General Manager

Finance Production Marketing Sales & Purchase


Dept. Dept. Dept. Dept.

A systematic & well-defined organizational structure plays a vital role &
provides accurate information to the top-level management. An organization
structure defines a clear-cut line of authorities & responsibilities among the
employees of GCMMF. The Organization structure of Amul is well-arranged
structure. At a glance a person can completely come to know about the
organization structure.

• Amul is leaded by the director under him five branches viz. Factory,
Marketing, Accounts, Purchase, Human Resources Department.
• Factory department has a separate general manager under him there are
six braches viz. Production, Stores, Distribution, Cold Storage, Quality,
and Deep-freezing. This department takes care of the factory work.
• Marketing department has regional senior marketing manager and under
him there is a regional manager. This department takes care of the
marketing aspects of Amul.
• Accounts department takes care regarding accounts i.e. day-to-day
work. Under the accountant there is one clerk.

Purchase department takes care regarding the purchase of raw

materials and many other things.
ANAND, which engaged
in the manufacturing of
milk, butter, ghee, milk
powder, flavored milk and

MOGAR, which engaged
in manufacturing
chocolate, nutramul,Amul
Ganthia and Amul lite.
KHATRAJ, which engaged in
producing cheese.

Third plant is at Kanjari,

which produces cattelfeed.
Today, twelve dairies are producing different products under the brand
name Amul. Today Amul dairy is no. 1 dairy in Asia and no. 2 in the world,
which is matter of proud for Gujarat and whole India.

Marketing research plays an important role in the process of
marketing. Starting with market component of the total marketing talks. It helps
the firm to acquire a better understanding of the consumers, the competition
and the marketing environment.


“Marketing research is a systematic gathering, recording and analysis

marketing problem to facilitate decision making.”

- Coundiff & Still.

“Marketing research is a systematic problem analysis, model building and

fact finding for the purpose of important decision making and control in the
marketing of goods and services.

– Phillip Kotler.


Defining the Marketing Problem to be tackled and identifying the market
research problem involved in the task.

(1) Define the problem and its objectives.

(2) Identify the problem.
(3) Determine the information needed.
(4) Determine the sources of information.
(5) Decide research methods.
(6) Tabulate, Analyze and interpret the data.
(7) Prepare research report.
(8) Follow-up the study.

(1) Define the problem and its objectives :- This includes an

effective job in planning and designing a research project that will
provide the needed information. It also includes the establishment
of a general framework of major marketing elements such as the
industry elements, competitive elements, marketing elements and
company elements.

(2) Identify the problem :- Identifying the problem involves getting

acquainted with the company, its business, its products and market
environment, advertising by means of library consultation and
extensive interviewing of company’s officials.

(3) Determining the specific Information needed :- In general the

producer, the manufacturer, the wholesaler and the retailer try to
find out four things namely :-
(1) What to sell
(2) When to sell
(3) Where to sell
(4) How to sell

(4) Determine the sources of information :-

(a) Primary Data: - Primary datas are those which are gathered specially
for the project at hand, directly – e.g. through questionnaires & interviews.
Primary data sources include company salesman, middleman, consumers,
buyers, trade association’s executives & other businessman & even
(b) Secondary Data: - These are generally published sources, which have
been collected originally for some other purpose. Source are internal
company records, government publication, reports & publication, reports &
journals, trade, professional and business associations publications &

(5) Decide Research methods for collecting data :- If it is

found that the secondary data cannot be of much use, collection of Primary
data become necessary. Three widely used methods of gathering primary
data are

A) Survey

B) Observation

C) Experimentation

A) Survey Method :- In this method, information gathered directly from

individual respondents, either through personal interviews or through mail
questionnaires or telephone interviews.

B) Observation Method :- The research data are gathered through

observing and recording their actions in a marketing situation. This
technique is highly accurate. It is rather an expensive technique.

C) Experimental Method :- This method involves carrying out a small

scale trial solution to a problem, while at the same time, attempting to
control all factors relevant to the problem. The main assumption here is that
the test conditions are essentially the same as those that will be
encountered later when conclusions derived from the experiment are applied
to a broader marketing area.

D) The Panel Research :- In this technique the same group of respondents

is contacted for more then one occasion; and the information obtained to
find out if there has been any in their taste demand or they want any special
quality, color, size, packing in the product.

a) Preparation of questionnaire
b) Presetting of questionnaire
c) Planning of the sample
(6) Tabulate, Analysis and Interpret the Data :-
The report must give/contain the following information:-
a) The title of research

b) The name of the organization for which it has been


c) The objectives of research.

d) The methodology used.
e) Organization and the planning of the report
f) A table of contents along with charts and diagrams used in the
g) The main report containing the findings
h) Conclusion arrived at end recommendations suggested
i) Appendices (containing questionnaire / forms used sample
design, instructions.)

(7) Follow-up the study: - The researchers, in the last stage, should
follow up this study to find if his recommendation are being implemented
and if not, why?

Promotion is one out of four basic instruments of

marketing that has the purpose to inform about other
instruments of marketing mix and to contribute to sales
increase on the long term. The promotion is always
serving to specific goal. These goals can be public
informing, demand increasing, product differentiation,
and product value increasing or sales stabilizing.
Usually the promotion is targeting more than one goal.

Promotion is the process of communication between the company that sells

the product and the potential customer, with the purpose of influencing the
attitudes and behavior. There are specific promotional tool that are
supporting chosen promotional goal. The promotion mix represents a
combination of different promotional tools. The basic elements of
promotional mix are Advertising, Public Relationship, Personal Sales and
Sales Promotion.
• Advertising is communication with current and potential customers
and consumers, done through paid mass media. The channels of
communication can be TV, radio, Internet, billboards, etc.

• Public Relationship (PR) is communication toward public, but is

turned more to reputation and image of the company, than to its
products. The PR activity can be a press conference, TV interview with
company representative, press article about donation of the company
to charity or about latest environmental project.

• Personal Sales is a way of promotion activity where sales

representative is directly contacting the customer. This person-to-
person contact has the goal of direct promotion of the product and
conclusion of sales.

• Sales Promotion represents a set of different promotional activities

that has the goal of animating customers for purchasing. This can be
value offer (discount), quantity offer (2+1), prize drawings,
merchandising, direct contact by animators in retail outlet, etc.

The approach to promotion can be different. The push strategy is

transferring the supply pressure downstream through sales channels.
Setting the Promotion Mix

When deciding how to properly utilize the marketing communications mix to

meet your marketing objectives, it is important to consider the relative
strengths and weaknesses of each component of the mix. Further, you must
always define your total budget first (generally defined in the Marketing
and/or Business Plan) and then decide upon the best way to leverage the
different elements of the mix to maximize the return on your investment.
You will balance the various parts of the mix to not only create an
integrated approach to your marketing communications but you must also
devote enough resources for each component to be successful.
Here are some things to keep in mind:

Reaches large, geographically dispersed audiences,

often with high frequency; Low cost per exposure, though overall costs are
high; Consumers perceive advertised goods as more legitimate; Dramatizes
company/brand; Builds brand image; may stimulate short-term sales;
Impersonal, one-way communication; Expensive

Most effective tool for building buyers’ preferences,

convictions, and actions; Personal interaction allows for feedback and
adjustments; Relationship-oriented; Buyers are more attentive; Sales force
represents a long-term commitment; Most expensive of the promotional

May be targeted at the trade or ultimate consumer;

Makes use of a variety of formats: premiums, coupons, contests, etc.;
Attracts attention, offers strong purchase incentives, dramatizes offers,
boosts sagging sales; Stimulates quick response; Short-lived; Not effective
at building long-term brand preferences.
Highly credible; Very believable; Many forms: news
stories, news features, events and sponsorships, etc.; Reaches many
prospects missed via other forms of promotion; Dramatizes company or
product; Often the most under used element in the promotional
mix; Relatively inexpensive (certainly not 'free' as many people think--there
are costs involved)

Many forms: Telephone marketing, direct mail, online

marketing, etc.; Four distinctive characteristics: Nonpublic, Immediate,
Customized, Interactive; Well-suited to highly-targeted marketing efforts.
When deciding upon your unique marketing communications mix, you
should also consider the Product Life Cycle. Here are some general
guideline as to how and when to emphasize different parts of the mix
according to the stages of a typical product life cycle:
Product Life Cycle

Pre-Introduction: Light advertising, pre-introduction publicity

Introduction: Heavy use of advertising, public relations for awareness,
sales promotion for trial
Growth: Advertising, public relations, branding and brand marketing,
personal selling for distribution
Maturity: Advertising decreases, sales promotion, personal selling,
reminder & persuasion
Decline: Advertising and public relations decrease, limited sales promotion,
personal selling for distribution
Next let's briefly walk through each of the various parts of the marketing
communications mix.