PROMOTION

Promotion: function of informing, persuading, and

influencing the consumers purchase decision. Promotion mix-blend of personal selling and non personal selling designed to achieve promotional objectives. Personal selling: interpersonal promotional process involving a sellers person-to-person presentation to a prospective buyer Non personal selling includes: Advertising, Product placement, Sales promotion, Direct marketing, Public relations

Components
Advertising Publicity Personal selling Public relation Sales promotion

Advertising
Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor.

 Public relations, often known as PR. This is any communication between business and the public! A public is any group that has an actual or potential interest in or impact on a companys ability to achieve its objectives. Not only must the company relate constructively to customers, suppliers, and dealers, but it must also relate to a large number of interested publics If you write a letter to apologizes to an unhappy customer, thats public relations. If your business sends staff to support a local litter pick, thats public relations. The company sponsors a major charitable or sporting event. A press release saying that a company has developed a way of recycling garbage from landfills to produce plastics. Bigger businesses use PR to do something called reputation management. This is where they attempt to influence how people think about their business. Any activity designed to create a favorable image toward a business, 4 its products or its policies. Firms communications and relationships with its various publics

Public relation

 Public Relations building good relations with the companys various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events. Not only must the company relate constructively to customers, suppliers, and dealers, but it must also relate to a large number of interested publics.

Five Functions of Public Relations :

1. Press relations: Presenting news and information about the organization in the most positive light. 2. Product publicity: Sponsoring efforts to publicize specific products. 3. Corporate communication: Promoting understanding of the organization through internal and external communications. 4. Lobbying: Dealing with legislators and government officials to promote or defeat legislation and regulation. 5. Counseling: Advertising management about public issues 5 and company positions and image during good times and crises. Case study- Adelaide Grand Prix

PUBLICITY
Typically, when people talk about doing some PR, what they actually mean is getting their business featured in the media. And thats what publicity is. Its an element of public relations, where your communication is done through the media. Publicity is often called free publicity because it should be just that - free. Its only free if an impartial journalist has written about your business, without receiving any payment for it. Stimulation of demand for good, service, place, idea, person, or organization by unpaid placement of commercially significant news or favorable media presentations
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PUBLICITY
A specific kind of public relations that involves placing positive and newsworthy information about a business, its products, or its policies in the mediaIt originated in the U.S. in the early 20th century with pioneers such as Edward L. Bernays and Ivy Ledbetter Lee. Government agencies in Britain and the U.S. soon began hiring publicists to engineer support for their policies and programs Publicity is about getting attention, and is a one-way relationship between the client and their target audience. Public Relations is a mutual relationship between clients and their stakeholders and target publics, which allows for the development of a long-term consumer relationship. Publicity is designed to keep you in the news and public relations is designed to keep you out. Celebrities often have a publicist whose job it is to keep them in the headlines; often for celebrities, any publicity is good 7 publicity.

Sales Promotion
An activity designed to boost the sales of a product or service. It may include an advertising campaign, increased PR activity, a free-sample campaign, offering free gifts or trading stamps, arranging demonstrations or exhibitions, setting up competitions with attractive prizes, temporary price reductions, door-to-door calling, telemarketing, personal letters on other methods Short-term incentives to encourage the purchase or sale of a product or service. It is about stimulating customers to buy a product. It is not designed to be informative a role which advertising is much better suited to.
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METHODS
Sales Promotion Methods. Most sales promotional methods can be classified as promotion techniques either for consumer sales or for trade sales. 1. A consumer sales promotion method attracts consumers to particular retail stores and motivates them to purchase certain new or established products. 2. A trade sales promotion method encourages wholesalers and retailers to stock and actively promote a manufacturers products.
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1. Rebates. a return of part of the purchase price of a product. 2. Coupons. 3. Samples. free product given to customers to encourage trial. - online coupons, direct mail, or in stores. - most expensive sales promotion technique. 4.Premiums. A premium is a gift that a producer offers the customer in return for using its product. 5. Frequent-User Incentives. programs developed to reward customers who engage in repeat (frequent) purchases. - Frequent-user incentives build customer loyalty.- An airlines frequent-flyer program is one example of a frequent-user incentive. 6.Point-of-Purchase Displays. promotional material placed within a retail store. - hold merchandise or inform customers of what the product offers and encourage them to buy it. Most POP displays are prepared and set up by manufacturers and wholesalers. 7.Trade Shows. industry wide exhibit at which many sellers display their products. - Some trade shows are organized exclusively for dealersto permit manufacturers and wholesalers to show their latest lines to retailers. - Others are promotions designed to stimulate consumer awareness and interest. 8.Buying Allowances. temporary price reduction to resellers for purchasing 10 specified quantities of a product.

Personal Selling
This type of promotion requires contact with potential buyers Personal selling is paid personal communication that attempts to inform customers and persuade them to purchase products or services. * process that allows marketers the greatest freedom to adjust a message to satisfy customers information needs. * allows the marketer or seller to communicate directly with the prospect or customer and listen to his or her concerns, answer specific questions, provide additional information, inform,
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How personal selling facilitates marketers

The greatest freedom to adjust a message to satisfy customers informational needs, dynamic. Most precision, enabling marketers to focus on most promising leads. vs. advertising, publicity and sales promotion Give more information Two way flow of information, interactivity. Discover the strengths and weaknesses of new products and pass this information on to the marketing department. Highest cost. Businesses spend more on personal selling than on any other form of promotional mix. Goals range from finding prospects convincing prospects ,to buy keeping customers satisfied, help them pass the word along.

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Integrated Marketing Communications

A concept of marketing communications planning that recognizes the added value of a comprehensive plan that evaluates the strategic roles of a variety of communication disciplines. In other words, the message and approaches of general advertising, direct response, sales promotion, public relations, and personal selling efforts are combined to provide clarity, consistency, and maximum communications impact. Integrated Marketing Communications
Coordination of promotion and other marketing efforts for maximum informational and persuasive effect Major goal is to send a consistent message to customers
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 IMC, thus, calls for a "big picture" approach to planning marketing and promotion programs and coordinating the various communication functions. It requires firms to develop a total marketing communications strategy that recognizes what the sum total of a firm's marketing activities, not just advertising, communicate to its customers. In a global economy with international markets and instantaneous communications, no aspect of marketing can be studied in a vacuum or in isolation if one expects to be accurate and relevant.

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Reasons for acceptance of integrated communications

Decreased use of mass media advertising Database marketing provides more precise targeting of customers More broadly diversified suppliers of advertising Increased management demands for returns on investments in marketing efforts

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TOOLS
Direct or Database Marketing.
This involves not just direct mail but also telemarketing & direct response advertising on T.V and radio and other media, in which ad aims to generate an action response (e.g. Call center number). Direct marketing has two advantages over mass advertising The ability to target specific individual consumers with an offer that is tailored to that consumer. The ability to directly measure response. The goal of direct marketing may not be to generate awareness or change preference but it generates some action. It could be to get an order or request for some information, a visit to a dealer or a store and so on.

Direct marketing encompasses :

Targeting Customization ability Measurability This has become a major tool since many advertisers are combining direct marketing efforts with their regular advertising efforts. Primarily to retain loyalty of existing customers, to cross sell new products and services to these existing customers, and to increase the amount or frequency of usage.
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Sales Promotion
Sales promotions are different from advertising, in that they do not involve the use of mass media. Many sales promotions are designed to encourage the immediate sale of goods, while others have longer-run goals of keeping customers loyal to the store, aiding salespeople, or attracting customers into the store. The term promotion is used to refer to all communication efforts made on an impersonal basis, including sales promotions, publicity, and advertising.
Consumer promotion (coupons, samplings, premiums, sweepstakes,

They are of two types:

low-cost financing deals and rebates) Trade promotions (allowances for featuring the product in retail advertising, display and merchandising allowances and the like) These are used to get the consumer to try or to repurchase the brand and to get the retail trade to carry and to push the brand. Retails in turn use promotions to clear their inventory of slow moving, out of season, shelf-unstable products (such as fresh produce). Price cuts, displays, frequent shopper programs and so on are few of the sales promotions done by the retailers. There are 3 ways in which it plays a role: It is a key element in inducing trial or repurchase in many communication programs in which advertising creates awareness and favorable attitudes but fails to spur action. The action comes about due to the limited duration of the program so the consumer 17 must act quickly. The consumer may perceive this as a value for

 In many retail outlet the companies are able to make out through scanners as to which brands are moving fast off the retail shelves and also try to understand as to which shelf does not receive much sales so that they could reduce the hiring or the display of merchandise from the shelf. This is done in order to be cost effective. In order to keep the brand equity of the brand intact especially for high involvement products and feeling products, the advertising and sales promotion efforts must complement each other

Retail Advertising
The retails in order that the consumer can see the product and buy it are those that provide the consumer with lots of information. So listing the size, color and prices of various shirts in a store make a buyer more action inductive. Appropriate behavioral aspects are used in case of durables and automobiles. The advertisement used here must create a strong sense of desire, curiosity and urgency to get the reader or viewer to make the store visit.

Cooperative Advertising
Here a manufacturer offers retailers an advertising program for the later to run. The program may include suggested advertising format, materials to be used to create actual advertisements, and money to pay a portion of the cost. Certain merchandise quantity is also suggested for the retailer to stock and perhaps display. There are 3 types of co-op advertising: 1. Vertical: When the upstream manufacturer or service provider pays for a 18 downstream retailers ad. 2. Horizontal: When local dealers in a geographic area pool money for

3.Ingredient producer co-op: When the producer of an ingredient pays part of an ad run by the user product. The intention of this is to stimulate short-term sales. The advertising is specific to the product, the place as to which it can be purchased and the price. To maintain the brand image and to reinforce the companys leverage with the retailers are important long-term considerations. The need should also be to expand the distribution coverage by allowing allowances to the retailers. Reminder, point-of-Purchase and Specialist Advertising Reminder ads serve to stimulate immediate purchase and/or use to counter the inroads of competitors. It is basically reminding the consumer about its existence. Shelf talkers or point of purchase materials placed in stores at or near the place where the brand is on display. You might have seen sachets of shampoos hanging right in front of the shop and they hit you on the face that could be taken as point of purchase material. Here the product itself acts as the material. Top of the mind awareness is the basis of the reminder and point of purchase material. Specialist advertising is useful in circumstances when certain free products like diaries, pens and calendars bearing the name of the manufacturer are given to the consumers for greater brand awareness. Pepsi and Coca Cola often paint the entire shop with their logo, this is to remind the consumer of their existence in that area.
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 Personal selling Personal selling involves individual, face-to-face communication, in contrast to the impersonal mass communication involved in advertising. Effective personal selling is quite often, the most important and effective element in retail communication. Publicity Two factors distinguish publicity from advertising cost and control. When a newspaper, magazine, TV or radio features a retailers store, personnel, product or events and the retailer does not have to pay for it, the retailer receives publicity. The retailer cannot, however, control the time, direction, or content of the message.
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 Word-of-mouth
Retailers cannot directly control what customers say to friends about their stores, services and products. However, they should be aware of this channel of information because potential customers often rely on what customers of a store say about it. Unfair treatment of one customer can create an everwidening web, as more people are told about that customers experience. Fortunately, fair treatment and real value are also discussed among customers, although positive aspects may not have as much influence as negative ones do. The point is, customers are going to talk about how they are treated in a store. Proper product packaging protects the product as well as provides a message that facilitates its sale. Unfortunately, in most cases, retailers purchase products already packaged and, therefore, have little control over the communication on the package. However, the retailer should always consider the image and message projected by packaging as a part of the total communication mix. The retailer does package many goods with paper and plastic bags, boxes, and wrapping paper. Such packaging, carefully designed, can prove to be an effective yet inexpensive element within the complete communication programme

Packaging

Merchandising and In Store Advertising

Of late it has made a lot of inroads in outlets. With Bennetons with their color scheme in various shelves, Raymonds with their window display play a major role in attracting the consumer base. This is so because most decisions about brands are made when you enter a particular shop. So the use of displays, signs, and positioning of the particular brand in the store is an important decision making exercise.
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