This Presentation describes the fourth P of Marketing. The presentation discuss Promotion Definition, Integrated Marketing Communication Process, Promotion Mix, Marketing Communication, Marketing Communication Process, Objectives of Promotion, Advertising, Sales Promotion, Public Relation and Direct Marketing

1. Promotion in Marketing
Prepared by
Jitendra Patel
Assistant Professor, Prestige
Institute of Management
and Research, Indore.

2. Module Description
1. Promotion Definition
2. Integrated Marketing Communication Process
3. Promotion Mix
4. Marketing Communication
4.1 Marketing Communication Process
5. Objectives of Promotion
6.Advertising
7. Sales Promotion
8. Public Relation
9. Direct Marketing
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Jitendra Patel, Assistant Professor, PIMR,
Indore

3. Promotion
• It is essential for organizations to promote
their brands well among the end-users not
only to outshine competitors but also survive
in the long run. Brand promotion increases
awareness of products and services and
eventually increases their sales, yielding high
profits and revenue for the organization.
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Jitendra Patel, Assistant Professor, PIMR,
Indore

4. Integrated Marketing Communication Process
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Jitendra Patel, Assistant Professor, PIMR,
Indore

5. Promotion Mix
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Jitendra Patel, Assistant Professor, PIMR,
Indore

6. Marketing Communication
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Jitendra Patel, Assistant Professor, PIMR,
Indore

7. Objectives of Promotion
• Build Awareness – New products and new companies are often unknown to a
market, which means initial promotional efforts must focus on establishing an
identity. In this situation the marketer must focus promotion to: 1) effectively
reach customers, and 2) tell the market who they are and what they have to offer.
• Create Interest – Moving a customer from awareness of a product to making a
purchase can present a significant challenge. As we saw with our discussion of
consumer and business buying behavior, customers must first recognize they have
a need before they actively start to consider a purchase. The focus on creating
messages that convince customers that a need exists has been the hallmark of
marketing for a long time with promotional appeals targeted at basic human
characteristics such as emotions, fears, sex, and humor.
• Provide Information – Some promotion is designed to assist customers in the
search stage of the purchasing process. In some cases, such as when a product is
so novel it creates a new category of product and has few competitors, the
information is simply intended to explain what the product is and may not
mention any competitors. In other situations, where the product competes in an
existing market, informational promotion may be used to help with a product
positioning strategy. As we discuss in the Targeting Markets tutorial, marketers
may use promotional means, including direct comparisons with competitor’s
products, in an effort to get customers to mentally distinguish the marketer’s
product from those of competitors.
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Jitendra Patel, Assistant Professor, PIMR,
Indore

8. Objectives of Promotion
• Stimulate Demand – The right promotion can drive customers to make a purchase.
In the case of products that a customer has not previously purchased or has not
purchased in a long time, the promotional efforts may be directed at getting the
customer to try the product. This is often seen on the Internet where software
companies allow for free demonstrations or even free downloadable trials of their
products. For products with an established customer-base, promotion can
encourage customers to increase their purchasing by providing a reason to
purchase products sooner or purchase in greater quantities than they normally do.
For example, a pre-holiday newspaper advertisement may remind customers to
stock up for the holiday by purchasing more than they typically purchase during
non-holiday periods.
• Reinforce the Brand – Once a purchase is made, a marketer can use promotion to
help build a strong relationship that can lead to the purchaser becoming a loyal
customer. For instance, many retail stores now ask for a customer’s email address
so that follow-up emails containing additional product information or even an
incentive to purchase other products from the retailer can be sent in order to
strengthen the customer-marketer relationship.
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Jitendra Patel, Assistant Professor, PIMR,
Indore

9. Advertising
Advertising
One definition of advertising is: "Advertising is
the non personal communication of
information usually paid for and usually
persuasive in nature about products, services
or ideas by identified sponsors through the
various media."
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Jitendra Patel, Assistant Professor, PIMR,
Indore

10. Sales Promotion
• Sales promotion is the process of persuading a
potential customer to buy the product. Sales
promotion is designed to be used as a short-
term tactic to boost sales – it is not really
designed to build long-term customer loyalty.
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Jitendra Patel, Assistant Professor, PIMR,
Indore

11. Types of Sales Promotion
• Money off Coupons – customers receive coupons, or cut coupons
out of newspapers or a products packaging that enables them to
buy the product next time at a reduced price
• Competitions – buying the product will allow the customer to take
part in a chance to win a prize
• Discount Vouchers – a voucher (like a money off coupon)
• Free Gifts – a free product when buy another product
• Point of Sale Materials – e.g. posters, display stands – ways of
presenting the product in its best way or show the customer that
the product is there.
• Loyalty Cards – e.g. Nectar and Air Miles; where customers earn
points for buying certain goods or shopping at certain retailers –
that can later be exchanged for money, goods or other offers
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Jitendra Patel, Assistant Professor, PIMR,
Indore

12. Sales Promotion
Advantages Disadvantages
•Effective at achieving a quick boost to
sales
•Encourages customers to trial a
product or switch brands
•Sales effect may only be short-term
•Customers may come to expect or
anticipate further promotions
•May damage brand image
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Jitendra Patel, Assistant Professor, PIMR,
Indore

13. Public Relation
• Type of promotion that relies on public
relations effect of a news story carried usually
free by mass media.
• The main objective of publicity is not sales
promotion, but creation of an image through
editorial or 'independent source' commentary
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Jitendra Patel, Assistant Professor, PIMR,
Indore

14. Public Relation
• Building awareness and a favorable image for a
company or client within stories and articles found
in relevant media outlets.
• Closely monitoring numerous media channels for
public comment about a company and its
products.
• Managing crises that threaten company or product
image.
• Building goodwill among an organization’s target
market through community, philanthropic and
special programs and events.
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Jitendra Patel, Assistant Professor, PIMR,
Indore

15. Marketing Vs Public Relation
Marketing Public Relation
Marketing promotes the transfer of goods
and services from the producer and
provider to the consumer.
Public relations helps an organization and its
publics adapt mutually to each other.
Marketing's immediate goal is sales. Public relations' immediate goal is mutual
understanding or positioning of the
organization with its publics
Marketing's implicit goal is profit. Public relations' implicit goal is positive
perceptions and predispositions.
Marketing's measure of success is the
number of sales and/or the revenue it
generates.
Public relations' measure of success is
expressed public opinion or other evidence
of public support
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Jitendra Patel, Assistant Professor, PIMR,
Indore

16. Direct Marketing
• Direct marketing is just what it sounds like - directly
reaching a market (customers and potential customers)
on a personal (phone calls, private mailings) basis, or
mass-media basis (infomercials, magazine ads, etc.).
• Direct marketing is often distinguished by aggressive
tactics that attempt to reach new customers usually by
means of unsolicited direct communications. But it can
also reach out to existing or past customers. A key
factor in direct marketing is a "call to action." That is,
direct marketing campaigns should offer an incentive
or enticing message to get consumers to respond (act).
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Jitendra Patel, Assistant Professor, PIMR,
Indore

17. Types of Direct Marketing
• Telemarketing: Direct marketing that involves
calling people at home or work to ask for
donations, an opinion, or for sales purposes.
• Email Direct Marketing: This form of direct
marketing targets consumers through their Email
accounts. Email addresses can be harvested from
websites, forums, or purchased. Some companies
require you to receive announcements to use
their websites.
• Direct Mail Marketing: Advertising material sent
directly to home and business addresses.
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Jitendra Patel, Assistant Professor, PIMR,
Indore

18. References
1. Aakar, D. A. (2012), “Strategic Market Management” 9th
Edition, New Delhi, India, Wiley India.
2. D. Chandra Bose (2010.) “Modern Marketing Principles
and Practices” PHI Learning, 1st Edition.
3. O. C. Ferrell and Michael Hartline (2012 ). “Marketing
Strategy, Text and Cases” , South Western Cengage
Learning, sixth edition.
4. Philip Kotler, Kelvin Lane, Keller, Abraham Koshi,
Mitihlesh Jha.(2011), Principles of Marketing
Management, South Asian Perspective, Pearson
Education, 14th Edition.
5. S. M. Jha. (2011), “Services Marketing”, Himalaya
Publishing House, 7th Edition, New Delhi.
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Jitendra Patel, Assistant Professor, PIMR,
Indore

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Jitendra Patel, Assistant Professor, PIMR,
Indore