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By Sakshi Gupta
2nd Year Bachelor of Business Administration
Dezyne E’cole College
THE ROLE OF PROMOTION
IN THE MARKETING MIX
Project report on
The Role of Promotion in Marketing Mix
Submitted to
Dezyne E’cole College
Towards
The Partial Fulfillment
Of 2nd
Year Bachelor of Business Administration
By
Sakshi Gupta
Dezyne E’cole College
www.Dezyneecole.com
ACKNOWLEDGEMENT
I am Sakshi Gupta student of department bachelor of business administration of Dezyne E‘cole College would like to
express my gratitude to each and every person who has contributed in stimulating suggestions and encouragement which
is really helped me to coordinate my project.
I also thank Dezyne E’cole College who provided insight and expertise that greatly assisted the project. Also, a special
thanks to my teachers, parents and colleagues who have supported me at every step. Not to forget the almighty who
blessed me with good health because of which I worked more efficiently and better.
SYNOPSIS
This Project is based on “The Role of Promotion in the Marketing Mix”. It is the study of the specific combination of the
Promotional Methods such as advertising, direct marketing, personal selling, sales promotion,, publicity etc. used for one
product or a family of products. Promotion plays an important role with the Marketing Mix. Promotion must support the
other elements of the Marketing Mix, without this support the five remaining elements of the Marketing Mix would not
be fully optimized.
Overall the role of Promotion within Marketing Mix is to support the firm in promoting their product or services.
Consumers need to be aware of key aspects of the product, price where to purchase or the ease of purchase amongst
other elements of the Marketing Mix. Promotion should convey the message for the rest of the Marketing Mix.
CONTENT
• Introduction
• Chapter1: Overview of Marketing Mix
• Chapter2: Promotion Mix
• Chapter3: Elements of Promotion Mix
• Chapter4: Factors Affecting Promotion Mix
• Chapter5: Case Study
• Conclusion
• Bibliography
INTRODUCTION
The Promotional Mix is the coordination of marketing activities which publicity, sales promotion, advertising, direct marketing and
personal selling. It is a coordination of activities of activities that you will perform to directly interact with your customers. For example giving
sales presentations help you to interact with the customers to answer their questions and demonstrate your product.
Promotional Mix’s Focus
The promotional mix’s goal is to inform, persuade and remind your customer about your product or service. The
promotional mix uses adverting, which is a paid form of non-personal presentation. Personal selling is used either by
phone or face to face to the prospect, for example, to address your customers’ concerns and answer their questions
directly. Public relations are firms communicating with their customers, employees and stockholders. It is important that a
business have a solid reputation with customers. For example, one way firms communicate by sending out newsletter or
press releases. Sales promotion includes inducements with the purpose of encouraging customers to buy, such as cents
off coupons. Merchandising is used in the store to stimulate sales. Example includes displays, signs and posters.
The “promotional mix” includes the following tools:-
• Advertising
• Public relations
• Sales promotion
• Direct marketing
• Personal selling
CHAPTER-1
OVERVIEW OF MARKETING MIX
Marketing is the process of getting your business noticed by the people who need or want your products or services. Many small businesses
come up with the fabulous business ideas but then fail to market successfully. You need to get out there and spread the word about your
products or services to the right people to build your customer base. Advertising and selling are the part of the process but there is much more
involved.
The Six ‘Ps’ of Marketing
There are generally six key aspects that you need to focus on when marketing your product and services these aspects arev sometimes
referred to as the six Ps
• Product
• Price
• Promotion
• People
• Place
• Processes
Product
Product refers to the goods or services you are offering. You might consider range of factors such as packaging, labeling, branding the quality
when developing your product. A product can be divided into three parts. The core product, the augmented product and the tertiary product.
These product decisions will in turn affect the other variable of the mix. A product is a bundle of need satisfying features that is exchanged,
generally for a monetary price. It encompasses both the tangible aspects, such as the packaging, quality and brand as well as the intangible
attributes.
Price
Setting a suitable price for your products or services will help you to be profitable and stay competitive. Start by including all the cost
associated with producing and delivering your products and services, then research your target market to determine how much they would be
willing to pay. If there is a gap you have more work to do- perhaps reducing your cost or focusing on a different market.
Promotion
Promotion refers to the methods you will use to advertise and sell your products and services. Promotion methods may include:
• Website
• Social media
• Blogging
• E-News letter
• Networking
• Broachers and flyers
• TV, Radio and print advertising
• Word of Mouth
• Loyalty and Reward Programs
• Mail outs and letter drops
Place
This aspect of marketing refers to however customer will be able to purchase your product or services, distribution channels may include
• Retailing Direct to the public through a store and outlet
• Selling goods via wholesalers
• Retailing outline
• Using distributors, consultants, or agents to sell your products
When deciding which channel to use, consider your target market and the logistics involved in getting your products and services to them.
People
You will most likely have to engage with suppliers, distributors, wholesalers, stakeholders and employees to get your product or services
market. These groups all form part of your team. You need to ensure they understand the important of providing quality product and
customer services.
Processes
The right customer service and business processes are essential to support your marketing goals. They may include procedures for ordering
new stock, ensuring products and services are delivered in a timely manner, providing opportunities for customers to give feedback and
regularly reviewing sales and financial reports. Some see processes as a means to achieve an outcome, for example – to achieve a 30% market
share, a company implements a marketing planning process.
MARKETING MIX AND PROMOTION MIX
Marketing
mix
Product Price Place
Promotion
Mix
Advertising
Personal
Selling
Sales
Promotion
Publicity
Direct
Marketing
CHAPTER- 2
PROMOTIONAL MIX
The promotional mix is a term used to describe the set of tools that a business can use to communicate effectively the benefits of its products
or services to its customers.
If customers don’t know what products and services you provide then your business will not survive in today’s competitive marketplace.
Effective communication with your customer is vital to ensure that your business generates sales and profits. By taking the time to develop
and implement a promotional mix, you will
stimulate your target audience to buy your
products and services- and manage this within a
budget you can afford.
A successful promotional mix uses a balance of its
five tools in a planned and structured way- a
single tool rarely works well in isolation. The
challenge is to select the right mix of promotional
activities to suit your particular business at a
particular time- and to use it correctly to achieve
a result. The combination of tools you use will
depend on the target audience, the message you
wish to communicate and the budget you make available.
Here is a 10 Steps checklist for developing and managing your promotional mix.
1. Decide how the products and services you provide can be “packaged” together. The image of your business is formed by the way you
promote the elements of the marketing mix- your products, price and the places through which you sell.
2. Develop the profile of your target audience for the message you will communicate. Who is target audience? This is goes beyond a simple
customer list.
3. Decide on the message to use. Are you trying to differentiate, remind, inform or persuade? Set an objective for what should be achieved.
4. Decide what image of the product/services/ business you want your customer to retain.
5. Decide on the budget. This is often how much you can afford given projected sales for the product or services.
6. Decide how the message should be delivered. To help you to decide what aspects of the promotional mix to use, think about taking your
customers on a journey that starts by creating awareness about your business.
7. Decide what actions you want your audience to take as a result of receiving your communication.
8. Put in place a means of measuring a controlling the plan once it is developed? Who will be responsible for checking that promotional
activity happens as planned?
9. Undertake your promotional plan. Be consistent in what you say and how you say it.
10. Measure what you have achieved against the original objectives that you set.
OBJECTIVES OF MARKETING PROMOTIONS
The objectives of any marketing promotion are based on the goals and strategies of the company launching the project. In general, the
marketing objectives of promotional efforts are aimed at attracting new customers increasing sales, raising awareness or expending market
penetration. The scope of an initiative is typically based on the company’s advertising budget.
Increase Business
Marketing promotions are use primary to attract new customers to a business this can be done through a variety of promotional actions such
as running targeted, advertising campaigns, holding special events or launching a social media blitz. The objective is to reach potential new
customers and give them an incentive to patronize your business.
Increase Sales
Once people become customers of a business, another promotional marketing objective is to encourage increasing their spending. An example
of this marketing objective in practice is the use of a customer “Rewards” card the tracks what the customer purchases and generates coupons
for similar products. In this sense, the objective of the marketing tactic is to get customers to buy additional products, or more expensive
products, then the once that initially broad them to your business.
Encourage Repeat Business
The objective of retention marketing promotion is to turn one time consumers into repeat consumers. This can be done through collecting
customer contact information and putting the one time buyers on a direct mail or email adverting list. These customers then receive special
offers, advance notice of sale, special perks, and “two – for- one” offers designed to keep them coming back.
Brand Awareness
To keep it name in front of consumers and reinforce its image, a small business should have a marketing objective of building brand
awareness. This can be accomplished in part by being consistent in all marketing messages and using inexpensive promotional products.
Example: Give away items such as refrigerator magnets, ink pens, coffee cups, and calendars imprinted with the company logo and image.
People who talk these items have a constant message in front of them, bolstering brand awareness of the business.
New Product Introduction
The objective of promoting a new product launch through marketing initiatives is to expend a company’s reach into new markets, while still
retaining customer base.
Example: Of this approach its services to include handyman-type home repairs. The object of the marketing promotion would be to attract
new customers, seeking home repair services, while cross-selling existing customers who already use the company for their cleaning needs.
IMPORTANCE OF PROMOTION IN MARKETING MIX
1. Building Brand Awareness: When you are introducing a new brand in the market you need to inform your potential customers that now
they have a solution available. Whether you want to talk about brand’s value, features or benefits, promotion is most crucial to build
awareness when you are new in the market. You may have amazing product but unless and until you shout, who is going to know about it?
2. Building Brand Positioning & Recall: Positioning your brand means a unique, creditable and sustainable position in the minds of
customers; an identity, which can be clearly differentiated from those of competitors.
3. Boosting sales & Revenue: One of the most substantial roles of promotion is to boost demand for your product or service and it turn
revenue. This objective is achieved by introducing various promotional offers.
4. Encouraging Reluctant Customers: Promotional scheme can also be utilised to attract new customer to try a product or service for the first
time. Or it can be vice-a-versa, inviting loyal customers to try a new product or service. If you have opened a gym and you offer free
personal training sessions people concerned for fitness would definitely want to give it a try.
5. Building Loyalty & Trust: Promotion is a widely used medium to convert customers. Brands across various segments endeavour to retain
customers by luring them through loyalty programs, reward point programs and more such unique privileges’ and incentives.
6. Creating a Socially Responsible Brand: You can create a positive image for your brand by executing a promotional activity that supports a
cause. For example, if you wish to educate children from underprivileged class, you can announce under a promotional scheme that a part
of the purchase made by customers will be donated to support the case.
7. Segment Identification: If your promotional and marketing strategy is loosely structured, it might not be successful in targeting the “right”
audience. Having a full proof and well-thought-out promotional strategy and marketing plan can help you identify different segments of
customers in the market and offer suitable solutions for your clients.
8. Increasing Customer Traffic: Also, promotion helps in increasing customer traffic. Promotion can be done even by giving out free samples.
CHAPTER- 3
ELEMENTS OF PROMOTION MIX
Five Elements of Promotional Mix
To use the promotional the promotional mix effectively, you need to
understand a little bit more about each of five tools and how you could
use them to achieve your objectives.
Advertising:
Advertising is defined as any paid form of non-personal presentation
and promotion of ideas, goods and services by an identified sponsor. It
is the most popular and widely practiced tool of market promotion.
Major part of promotional budget is consumed alone. Various
advertising media- television, radio, newspapers, magazines, outdoor
means and forth- are used for advertising the product.
Characteristics of Advertising are as follow:
• Advertising is a non-personal or mass communication. Personal contact is not possible.
• It is paid form of communication.
• It is a one way communication
• Identifiable entity/sponsor Company or person gives advertising.
• It is costly option to promote the sales.
• It can reproduce frequently as per need.
• Per contact cost is lowest.
Sales Promotion:
Sales promotion covers those marketing activities other than advertising, publicity, and personal selling that stimulate consumer purchasing
and dealer effectiveness. Sales promotion mainly involves short -term and non-routine incentives, offered to dealers as well consumers. The
popular methods used for sales promotion are demonstration, trade show, exhibition, exchange offer, seasonal discount, free services, gifts
contests, etc
Characteristic of Sales Promotion are as follows:
• The primary purpose of sales promotion is to induce
customer for immediate buying or dealer effectiveness or
both.
• Excessive use of sales promotion may affect sales and
reputation of a company adversely.
• It involves all the promotional efforts other than
advertising, personal selling, and publicity.
• It is taken as supplementary to advertising and personal
selling efforts.
• It consists of short-term incentive, schemes, or plans
offered to buyers, salesman and/or dealers.
• It involves non-routine selling efforts.
Personal Selling:
Personal selling includes face-to-face personal communication
and presentation with prospects for the purpose of selling the products. It involves personal conversation and presentation of products
with customers. It is considered as a highly effective and costly tool of market promotion.
Characteristics of Personal Selling have been listed below:
• Personal selling is an oral, face-to-face, and personal presentation with customers.
• Basic purpose is to promote products or increase sales.
• It involves two-way communication.
• Immediate feedback can be measured.
• It is an ability of salesmen to persuade or influence buyer.
• It is more flexible way of market communication.
• Per contract cost is higher than Advertising.
• It involves teaching educating, and assisting people to buy.
Publicity:
Publicity is also a way of mass communication. It is not a paid form of mass communication that involves getting favorable response of
buyers by placing commercially significant news in mass media. It is the traditional form of public relations. Publicity comes from reporters,
columnists, and journalists. It can be considered as a part of public relations. Publicity involves giving public speeches, giving interviews,
conducting seminars, charitable donations, inauguration by film actor, cricketer, politician or popular personalities, stage show, etc., that
attract mass media to publish the news about them.
William J. Stanton defines: “publicity is any promotional communication regarding an organization and/ or its products where the message is
not paid for by the organization benefiting from it.”
Characteristics of Publicity include:
• Publicity includes obtaining presentation about company or company’s offer upon radio, television, or stage that is not paid for by the
sponsor.
• It is a nonpaid form of market promotion. However several indirect costs are involved in publicity.
• It may include promotion of new product, pollution control efforts, special achievements of employees, publicity new policies , etc for
increasing sales.
• It has a high degree of credibility. Publicity message is more likely to be read and reacted by audience.
Direct Marketing:
Direct marketing is an increasingly popular technique as it enables you to target specific customer groups very accurately. It is a flexible way to
deliver your message and, because each letter can be personalized, the chance s of a response are greatly improved. The overall success of a
campaign can also be directly measured in terms of the number of responses received. You can collect information on customers and use this
to build up your own ‘in-house’ database. Although this can be time-consuming the information gathered will be accurate and relevant to you,
and can be relatively easily kept up to date.
Direct marketing provides you with the customers and potential customers. Direct marketing provides you with the opportunity to contact
existing clients as well as potential ones directly to address their unique needs. Direct marketers actively plan to keep their customer happy
and loyal their business by attempting to exceed customer expectations instead of merely meeting them. Direct marketing comes in a variety
of forms. It is one of the fastest growing areas of marketing and being propelled by technical advances, particularly in the field of computer
technology.
Characteristics of Direct Marketing include:
• A view of customers as assets with life time value.
• Ongoing relationship and affinity with customers.
• Data based market segmentation.
• Research and experimentation.
CHAPTER- 4
FACTORS AFFECTING PROMOTION MIX
The management must consider the following factors in determining the promotional mix, these are:-
Nature of Product: The different type of product requires different promotional
tools. Such as, for the industrial products viz. Machinery, equipment or land
personal selling is more appropriate as a great deal of pre-sale and after-sale
services is required to sell and install such products. On the other hand,
advertising and publicity are more suitable for the consumer goods, especially
the convenience goods.
Nature of Market: The number and location of customers greatly influence the
promotion mix. In case the groups of potential customers is small and are
concentrated in a particular locality, then personal selling is more likely to be
effective. Whereas, if the customer base is large and widespread, then the
blend of advertising, personal selling, and the sales promotion is required to sell
the product.
Also, the type of customers influences the managerial decisions of the
promotional mix. The type of promotion for the urban, educated and institutional customers would be different as compared to the rural,
illiterate and household customers
Stage of O Products Life: The promotion mix changes as the product moves along its life cycle. During the introduction stage, the principal
objective of the promotion is to create the primary demand by emphasizing the product features, utility, etc. therefore, the blend of
advertising and personal selling is required to maintain the demand of the customers.
And finally, during the decline stage the expenses on other promotional activities are cut, and more emphasis is laid on sales promotion with
the intent to push up the declining sales.
Availability of Funds: The marketing budget also decides the promotional mix. If the funds available for the promotion are large then the blend
of promotional tools can be used, whereas in the case the funds are limited then the management must choose the promotional tool wisely.
Nature of Technique: each element of the promotional mix has a unique feature that significantly influences the purpose of promotion. Such
as the advertising is an impersonal mode of communication that reaches a large group of customers. Its expression can be amplified with the
use of colors and sound that helps in developing the long lasting brand image of the customer.
The personal selling involves face to face interaction that helps in developing cordial and personal relations with the customers. Likewise, the
sales promotion is short-term incentives given to the customer with the intent to boost sales for a shorter period of time.
Promotional Strategy: the promotional mix largely depends on the company’s promotional strategy, i.e. whether it accepts the push strategy
or a pull strategy. In a push strategy, the manufacturer forces the dealers to carry the product and promote it to the customer, i.e. convince
the potential buyers to buy it. Here, personal selling and trade promotion are likely to be more effective.
In the case of a pull strategy, the consumers ask the dealers to carry the product, i.e. customers themselves purchase the product. Here,
advertising and consumer promotion are more appropriate.
Readiness of Buyer: Different promotional tools are required at different stages of buyer readiness. Such as, at the comprehension stage, the
blend of advertising and personal selling is more effective. At the time of sales closure, the blend of sales promotion and personal selling is
likely to be more effective.
Chapter-5
CASE STUSY
Marketing Mix of Coca-Cola
Coca-cola was invented in May 1886 by Dr. John S. Pemberton in Atlanta, Georgia. Name “Coca-
Cola “was suggested by Dr. Pemberton’s currently offers more than 5oo brands in over 200
countries and serve over 1.6 billion servings each day. Company operates a franchised distribution
system dating from 1889.
Apart from the large market share Coca Cola brand is also known for its strong brand image and
high customer loyalty. The brand also invests very large sums in marketing and advertising for
deeper customer engagement. Today, it is a well-known name in most corners of the world. Here
is the marketing mix of Coca Cola and its four P’s – product, place, price and promotion.
Product
Coca Cola has an impressively large product portfolio made of 500 sparkling and still brands. It
provides nearly 3900 beverage choices. Its leading product Coca Cola is one of the world’s most
recognized and valuable brands. There are 21 billion dollar brands in its portfolio, of which 19 are
available in low or no calorie choices.
Here are some of the most known brands in Coca Cola’s portfolio:
Coca-cola: Most popular and highest selling soft drinks in history and also one of the most recognizable brands in the world.
Sprite: A popular lemon lime flavored soft drink introduced in 1961.
Fanta: Second oldest brand from Coca Cola, introduced in 1940, comes in orange flavor.
Diet Coke: Known as Coca Cola light in many markets. A sugar and calorie free soft drink introduced in 1982.
Coca Cola Zero: Launched in 2005, this zero sugar brand acquired the status of a million dollar brand in 2007.
Coca Cola life: Low calorie drink with cane sugar and Stevia leaf extract.
Place
Coca Cola has an extensive beverage distribution system. Its products are sold in more than 200 countries across 6 operating regions including
Europe, Latin America, North America, Pacific, and Eurasia & Africa. An average of 1.9 billion servings of Coca Cola is sold every day.
Traditionally, it has relied on its bottling partners for the packaging and distribution of its products.
As Coca Cola notes, “While many view our Company as simply “Coca-Cola,” our system operates through multiple local channels. Our
Company manufactures and sells concentrates, beverage bases and syrups to bottling operations, owns the brands and is responsible for
consumer brand marketing initiatives. Our bottling partners manufacture, package, merchandise and distribute the final branded beverages to
our customers and vending partners, who then sell our products to consumers” (Coca-Cola company).
Its bottling partners work closely with its customers which include grocery stores, restaurants, street vendors, convenience stores, movie
theatres and amusement parks, among many others. Together they execute Coca Cola’ localized strategies. These customers sell the coca cola
products to the final customers.
Price
Pepsi is Coca Cola’s arch rival and the closest competitor in the beverages segment. Both brands price their products competitively. Prices are
not too high to be beyond the average customers’ reach and nor too low to give an impression of low quality. Coca Cola’s pricing strategy is
aimed at driving brand loyalty. Moreover, due to the decreasing demand for the soda products, price competition between Coca Cola and
Pepsi has gotten even intense.
Promotion
Due to the intense competition in the soda industry a lot the top brands’ focus remains on advertising to drive higher sales and revenue. Coca
Cola’s marketing expenditure in 2016 was $4 billion. It utilizes both traditional and modern channels to promote its brand and products. It
launched its Taste the Feeling campaign in 2016 which unites all of its brands. This one brand approach taken by Coca Cola marks a significant
shift from its previous marketing strategy. Apart from TV ads and outdoor ad campaigns, the brand also serves its ads across the internet and
on the social media. Its social media accounts are used to connect with its fans and followers and for customer engagement. There are more
than 1250 promotional videos of Coca Cola on its official YouTube channel.
CONCLUSION
As part of the marketing mix, promotion includes all activities that involve communicating with the customer about the
product and its benefits and features. Once a company has worked on the product and price elements, it is time to start a
conversation with the customer about the product. Promotion is the communication aspect of the Marketing Mix. It is
creating a channel for conversation with the targeted consumer base. Through promotion, the company aims to attract
the customer attention and give them enough information about the product to foster enough interest to motivate them
to purchase.
Different organizations have different expectations from their promotional activities. These expectations are developed
into objectives which then shape the selection and execution of these activities. Any promotional activity is usually
designed with a specific target audience in mind. Through the promotional mix, a company aims to fulfill two basic
objectives. One is to make the customer aware that the product and brand exist. The other is to persuade them to
actually pick this product over all the others and continue to buy it.
Product promotion is critical for every business due to the lasting impact promotion has on the clients. The promotional
mix is essentially what promoting entails as well as how promoting is effectively done. It comprises Personal Selling,
Advertising, Public Relations, Sales Promotion, Direct Marketing. Using the right blend of Promotional Mix ensures that
a business will continue gaining customers and achieving success in both the short and long run.
BIBLIOGRAPHY
• www.universalclass.com
• www.smallbusiness.wa.govau/business.com
• http://yourbusiness.azcentral.com
• www.scribd.com
• www.slideshare.com
• www.marketing91.com
• http://thema,org
• https://businessjargons.com

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Sakshi Gupta, BBA , Dezyne E'cole College

  • 1. By Sakshi Gupta 2nd Year Bachelor of Business Administration Dezyne E’cole College THE ROLE OF PROMOTION IN THE MARKETING MIX
  • 2. Project report on The Role of Promotion in Marketing Mix Submitted to Dezyne E’cole College Towards The Partial Fulfillment Of 2nd Year Bachelor of Business Administration By Sakshi Gupta Dezyne E’cole College www.Dezyneecole.com
  • 3. ACKNOWLEDGEMENT I am Sakshi Gupta student of department bachelor of business administration of Dezyne E‘cole College would like to express my gratitude to each and every person who has contributed in stimulating suggestions and encouragement which is really helped me to coordinate my project. I also thank Dezyne E’cole College who provided insight and expertise that greatly assisted the project. Also, a special thanks to my teachers, parents and colleagues who have supported me at every step. Not to forget the almighty who blessed me with good health because of which I worked more efficiently and better.
  • 4. SYNOPSIS This Project is based on “The Role of Promotion in the Marketing Mix”. It is the study of the specific combination of the Promotional Methods such as advertising, direct marketing, personal selling, sales promotion,, publicity etc. used for one product or a family of products. Promotion plays an important role with the Marketing Mix. Promotion must support the other elements of the Marketing Mix, without this support the five remaining elements of the Marketing Mix would not be fully optimized. Overall the role of Promotion within Marketing Mix is to support the firm in promoting their product or services. Consumers need to be aware of key aspects of the product, price where to purchase or the ease of purchase amongst other elements of the Marketing Mix. Promotion should convey the message for the rest of the Marketing Mix.
  • 5. CONTENT • Introduction • Chapter1: Overview of Marketing Mix • Chapter2: Promotion Mix • Chapter3: Elements of Promotion Mix • Chapter4: Factors Affecting Promotion Mix • Chapter5: Case Study • Conclusion • Bibliography
  • 6. INTRODUCTION The Promotional Mix is the coordination of marketing activities which publicity, sales promotion, advertising, direct marketing and personal selling. It is a coordination of activities of activities that you will perform to directly interact with your customers. For example giving sales presentations help you to interact with the customers to answer their questions and demonstrate your product. Promotional Mix’s Focus The promotional mix’s goal is to inform, persuade and remind your customer about your product or service. The promotional mix uses adverting, which is a paid form of non-personal presentation. Personal selling is used either by phone or face to face to the prospect, for example, to address your customers’ concerns and answer their questions directly. Public relations are firms communicating with their customers, employees and stockholders. It is important that a business have a solid reputation with customers. For example, one way firms communicate by sending out newsletter or press releases. Sales promotion includes inducements with the purpose of encouraging customers to buy, such as cents off coupons. Merchandising is used in the store to stimulate sales. Example includes displays, signs and posters. The “promotional mix” includes the following tools:- • Advertising • Public relations • Sales promotion • Direct marketing • Personal selling
  • 7. CHAPTER-1 OVERVIEW OF MARKETING MIX Marketing is the process of getting your business noticed by the people who need or want your products or services. Many small businesses come up with the fabulous business ideas but then fail to market successfully. You need to get out there and spread the word about your products or services to the right people to build your customer base. Advertising and selling are the part of the process but there is much more involved. The Six ‘Ps’ of Marketing There are generally six key aspects that you need to focus on when marketing your product and services these aspects arev sometimes referred to as the six Ps • Product • Price • Promotion • People • Place • Processes Product Product refers to the goods or services you are offering. You might consider range of factors such as packaging, labeling, branding the quality when developing your product. A product can be divided into three parts. The core product, the augmented product and the tertiary product. These product decisions will in turn affect the other variable of the mix. A product is a bundle of need satisfying features that is exchanged,
  • 8. generally for a monetary price. It encompasses both the tangible aspects, such as the packaging, quality and brand as well as the intangible attributes. Price Setting a suitable price for your products or services will help you to be profitable and stay competitive. Start by including all the cost associated with producing and delivering your products and services, then research your target market to determine how much they would be willing to pay. If there is a gap you have more work to do- perhaps reducing your cost or focusing on a different market. Promotion Promotion refers to the methods you will use to advertise and sell your products and services. Promotion methods may include: • Website • Social media • Blogging • E-News letter • Networking • Broachers and flyers • TV, Radio and print advertising • Word of Mouth • Loyalty and Reward Programs • Mail outs and letter drops Place This aspect of marketing refers to however customer will be able to purchase your product or services, distribution channels may include • Retailing Direct to the public through a store and outlet
  • 9. • Selling goods via wholesalers • Retailing outline • Using distributors, consultants, or agents to sell your products When deciding which channel to use, consider your target market and the logistics involved in getting your products and services to them. People You will most likely have to engage with suppliers, distributors, wholesalers, stakeholders and employees to get your product or services market. These groups all form part of your team. You need to ensure they understand the important of providing quality product and customer services. Processes The right customer service and business processes are essential to support your marketing goals. They may include procedures for ordering new stock, ensuring products and services are delivered in a timely manner, providing opportunities for customers to give feedback and regularly reviewing sales and financial reports. Some see processes as a means to achieve an outcome, for example – to achieve a 30% market share, a company implements a marketing planning process.
  • 10. MARKETING MIX AND PROMOTION MIX Marketing mix Product Price Place Promotion Mix Advertising Personal Selling Sales Promotion Publicity Direct Marketing
  • 11. CHAPTER- 2 PROMOTIONAL MIX The promotional mix is a term used to describe the set of tools that a business can use to communicate effectively the benefits of its products or services to its customers. If customers don’t know what products and services you provide then your business will not survive in today’s competitive marketplace. Effective communication with your customer is vital to ensure that your business generates sales and profits. By taking the time to develop and implement a promotional mix, you will stimulate your target audience to buy your products and services- and manage this within a budget you can afford. A successful promotional mix uses a balance of its five tools in a planned and structured way- a single tool rarely works well in isolation. The challenge is to select the right mix of promotional activities to suit your particular business at a particular time- and to use it correctly to achieve a result. The combination of tools you use will depend on the target audience, the message you wish to communicate and the budget you make available. Here is a 10 Steps checklist for developing and managing your promotional mix.
  • 12. 1. Decide how the products and services you provide can be “packaged” together. The image of your business is formed by the way you promote the elements of the marketing mix- your products, price and the places through which you sell. 2. Develop the profile of your target audience for the message you will communicate. Who is target audience? This is goes beyond a simple customer list. 3. Decide on the message to use. Are you trying to differentiate, remind, inform or persuade? Set an objective for what should be achieved. 4. Decide what image of the product/services/ business you want your customer to retain. 5. Decide on the budget. This is often how much you can afford given projected sales for the product or services. 6. Decide how the message should be delivered. To help you to decide what aspects of the promotional mix to use, think about taking your customers on a journey that starts by creating awareness about your business. 7. Decide what actions you want your audience to take as a result of receiving your communication. 8. Put in place a means of measuring a controlling the plan once it is developed? Who will be responsible for checking that promotional activity happens as planned? 9. Undertake your promotional plan. Be consistent in what you say and how you say it. 10. Measure what you have achieved against the original objectives that you set. OBJECTIVES OF MARKETING PROMOTIONS The objectives of any marketing promotion are based on the goals and strategies of the company launching the project. In general, the marketing objectives of promotional efforts are aimed at attracting new customers increasing sales, raising awareness or expending market penetration. The scope of an initiative is typically based on the company’s advertising budget.
  • 13. Increase Business Marketing promotions are use primary to attract new customers to a business this can be done through a variety of promotional actions such as running targeted, advertising campaigns, holding special events or launching a social media blitz. The objective is to reach potential new customers and give them an incentive to patronize your business. Increase Sales Once people become customers of a business, another promotional marketing objective is to encourage increasing their spending. An example of this marketing objective in practice is the use of a customer “Rewards” card the tracks what the customer purchases and generates coupons for similar products. In this sense, the objective of the marketing tactic is to get customers to buy additional products, or more expensive products, then the once that initially broad them to your business. Encourage Repeat Business The objective of retention marketing promotion is to turn one time consumers into repeat consumers. This can be done through collecting customer contact information and putting the one time buyers on a direct mail or email adverting list. These customers then receive special offers, advance notice of sale, special perks, and “two – for- one” offers designed to keep them coming back. Brand Awareness To keep it name in front of consumers and reinforce its image, a small business should have a marketing objective of building brand awareness. This can be accomplished in part by being consistent in all marketing messages and using inexpensive promotional products. Example: Give away items such as refrigerator magnets, ink pens, coffee cups, and calendars imprinted with the company logo and image. People who talk these items have a constant message in front of them, bolstering brand awareness of the business.
  • 14. New Product Introduction The objective of promoting a new product launch through marketing initiatives is to expend a company’s reach into new markets, while still retaining customer base. Example: Of this approach its services to include handyman-type home repairs. The object of the marketing promotion would be to attract new customers, seeking home repair services, while cross-selling existing customers who already use the company for their cleaning needs. IMPORTANCE OF PROMOTION IN MARKETING MIX 1. Building Brand Awareness: When you are introducing a new brand in the market you need to inform your potential customers that now they have a solution available. Whether you want to talk about brand’s value, features or benefits, promotion is most crucial to build awareness when you are new in the market. You may have amazing product but unless and until you shout, who is going to know about it? 2. Building Brand Positioning & Recall: Positioning your brand means a unique, creditable and sustainable position in the minds of customers; an identity, which can be clearly differentiated from those of competitors. 3. Boosting sales & Revenue: One of the most substantial roles of promotion is to boost demand for your product or service and it turn revenue. This objective is achieved by introducing various promotional offers.
  • 15. 4. Encouraging Reluctant Customers: Promotional scheme can also be utilised to attract new customer to try a product or service for the first time. Or it can be vice-a-versa, inviting loyal customers to try a new product or service. If you have opened a gym and you offer free personal training sessions people concerned for fitness would definitely want to give it a try. 5. Building Loyalty & Trust: Promotion is a widely used medium to convert customers. Brands across various segments endeavour to retain customers by luring them through loyalty programs, reward point programs and more such unique privileges’ and incentives. 6. Creating a Socially Responsible Brand: You can create a positive image for your brand by executing a promotional activity that supports a cause. For example, if you wish to educate children from underprivileged class, you can announce under a promotional scheme that a part of the purchase made by customers will be donated to support the case. 7. Segment Identification: If your promotional and marketing strategy is loosely structured, it might not be successful in targeting the “right” audience. Having a full proof and well-thought-out promotional strategy and marketing plan can help you identify different segments of customers in the market and offer suitable solutions for your clients. 8. Increasing Customer Traffic: Also, promotion helps in increasing customer traffic. Promotion can be done even by giving out free samples.
  • 16. CHAPTER- 3 ELEMENTS OF PROMOTION MIX Five Elements of Promotional Mix To use the promotional the promotional mix effectively, you need to understand a little bit more about each of five tools and how you could use them to achieve your objectives. Advertising: Advertising is defined as any paid form of non-personal presentation and promotion of ideas, goods and services by an identified sponsor. It is the most popular and widely practiced tool of market promotion. Major part of promotional budget is consumed alone. Various advertising media- television, radio, newspapers, magazines, outdoor means and forth- are used for advertising the product. Characteristics of Advertising are as follow: • Advertising is a non-personal or mass communication. Personal contact is not possible. • It is paid form of communication. • It is a one way communication • Identifiable entity/sponsor Company or person gives advertising. • It is costly option to promote the sales. • It can reproduce frequently as per need.
  • 17. • Per contact cost is lowest. Sales Promotion: Sales promotion covers those marketing activities other than advertising, publicity, and personal selling that stimulate consumer purchasing and dealer effectiveness. Sales promotion mainly involves short -term and non-routine incentives, offered to dealers as well consumers. The popular methods used for sales promotion are demonstration, trade show, exhibition, exchange offer, seasonal discount, free services, gifts contests, etc Characteristic of Sales Promotion are as follows: • The primary purpose of sales promotion is to induce customer for immediate buying or dealer effectiveness or both. • Excessive use of sales promotion may affect sales and reputation of a company adversely. • It involves all the promotional efforts other than advertising, personal selling, and publicity. • It is taken as supplementary to advertising and personal selling efforts. • It consists of short-term incentive, schemes, or plans offered to buyers, salesman and/or dealers. • It involves non-routine selling efforts. Personal Selling: Personal selling includes face-to-face personal communication
  • 18. and presentation with prospects for the purpose of selling the products. It involves personal conversation and presentation of products with customers. It is considered as a highly effective and costly tool of market promotion. Characteristics of Personal Selling have been listed below: • Personal selling is an oral, face-to-face, and personal presentation with customers. • Basic purpose is to promote products or increase sales. • It involves two-way communication. • Immediate feedback can be measured. • It is an ability of salesmen to persuade or influence buyer. • It is more flexible way of market communication. • Per contract cost is higher than Advertising. • It involves teaching educating, and assisting people to buy. Publicity: Publicity is also a way of mass communication. It is not a paid form of mass communication that involves getting favorable response of buyers by placing commercially significant news in mass media. It is the traditional form of public relations. Publicity comes from reporters, columnists, and journalists. It can be considered as a part of public relations. Publicity involves giving public speeches, giving interviews, conducting seminars, charitable donations, inauguration by film actor, cricketer, politician or popular personalities, stage show, etc., that attract mass media to publish the news about them. William J. Stanton defines: “publicity is any promotional communication regarding an organization and/ or its products where the message is not paid for by the organization benefiting from it.” Characteristics of Publicity include:
  • 19. • Publicity includes obtaining presentation about company or company’s offer upon radio, television, or stage that is not paid for by the sponsor. • It is a nonpaid form of market promotion. However several indirect costs are involved in publicity. • It may include promotion of new product, pollution control efforts, special achievements of employees, publicity new policies , etc for increasing sales. • It has a high degree of credibility. Publicity message is more likely to be read and reacted by audience. Direct Marketing: Direct marketing is an increasingly popular technique as it enables you to target specific customer groups very accurately. It is a flexible way to deliver your message and, because each letter can be personalized, the chance s of a response are greatly improved. The overall success of a campaign can also be directly measured in terms of the number of responses received. You can collect information on customers and use this to build up your own ‘in-house’ database. Although this can be time-consuming the information gathered will be accurate and relevant to you, and can be relatively easily kept up to date. Direct marketing provides you with the customers and potential customers. Direct marketing provides you with the opportunity to contact existing clients as well as potential ones directly to address their unique needs. Direct marketers actively plan to keep their customer happy and loyal their business by attempting to exceed customer expectations instead of merely meeting them. Direct marketing comes in a variety of forms. It is one of the fastest growing areas of marketing and being propelled by technical advances, particularly in the field of computer technology. Characteristics of Direct Marketing include: • A view of customers as assets with life time value. • Ongoing relationship and affinity with customers. • Data based market segmentation. • Research and experimentation.
  • 20. CHAPTER- 4 FACTORS AFFECTING PROMOTION MIX The management must consider the following factors in determining the promotional mix, these are:- Nature of Product: The different type of product requires different promotional tools. Such as, for the industrial products viz. Machinery, equipment or land personal selling is more appropriate as a great deal of pre-sale and after-sale services is required to sell and install such products. On the other hand, advertising and publicity are more suitable for the consumer goods, especially the convenience goods. Nature of Market: The number and location of customers greatly influence the promotion mix. In case the groups of potential customers is small and are concentrated in a particular locality, then personal selling is more likely to be effective. Whereas, if the customer base is large and widespread, then the blend of advertising, personal selling, and the sales promotion is required to sell the product. Also, the type of customers influences the managerial decisions of the promotional mix. The type of promotion for the urban, educated and institutional customers would be different as compared to the rural, illiterate and household customers Stage of O Products Life: The promotion mix changes as the product moves along its life cycle. During the introduction stage, the principal objective of the promotion is to create the primary demand by emphasizing the product features, utility, etc. therefore, the blend of advertising and personal selling is required to maintain the demand of the customers.
  • 21. And finally, during the decline stage the expenses on other promotional activities are cut, and more emphasis is laid on sales promotion with the intent to push up the declining sales. Availability of Funds: The marketing budget also decides the promotional mix. If the funds available for the promotion are large then the blend of promotional tools can be used, whereas in the case the funds are limited then the management must choose the promotional tool wisely. Nature of Technique: each element of the promotional mix has a unique feature that significantly influences the purpose of promotion. Such as the advertising is an impersonal mode of communication that reaches a large group of customers. Its expression can be amplified with the use of colors and sound that helps in developing the long lasting brand image of the customer. The personal selling involves face to face interaction that helps in developing cordial and personal relations with the customers. Likewise, the sales promotion is short-term incentives given to the customer with the intent to boost sales for a shorter period of time. Promotional Strategy: the promotional mix largely depends on the company’s promotional strategy, i.e. whether it accepts the push strategy or a pull strategy. In a push strategy, the manufacturer forces the dealers to carry the product and promote it to the customer, i.e. convince the potential buyers to buy it. Here, personal selling and trade promotion are likely to be more effective. In the case of a pull strategy, the consumers ask the dealers to carry the product, i.e. customers themselves purchase the product. Here, advertising and consumer promotion are more appropriate. Readiness of Buyer: Different promotional tools are required at different stages of buyer readiness. Such as, at the comprehension stage, the blend of advertising and personal selling is more effective. At the time of sales closure, the blend of sales promotion and personal selling is likely to be more effective.
  • 22. Chapter-5 CASE STUSY Marketing Mix of Coca-Cola Coca-cola was invented in May 1886 by Dr. John S. Pemberton in Atlanta, Georgia. Name “Coca- Cola “was suggested by Dr. Pemberton’s currently offers more than 5oo brands in over 200 countries and serve over 1.6 billion servings each day. Company operates a franchised distribution system dating from 1889. Apart from the large market share Coca Cola brand is also known for its strong brand image and high customer loyalty. The brand also invests very large sums in marketing and advertising for deeper customer engagement. Today, it is a well-known name in most corners of the world. Here is the marketing mix of Coca Cola and its four P’s – product, place, price and promotion. Product Coca Cola has an impressively large product portfolio made of 500 sparkling and still brands. It provides nearly 3900 beverage choices. Its leading product Coca Cola is one of the world’s most recognized and valuable brands. There are 21 billion dollar brands in its portfolio, of which 19 are available in low or no calorie choices. Here are some of the most known brands in Coca Cola’s portfolio: Coca-cola: Most popular and highest selling soft drinks in history and also one of the most recognizable brands in the world.
  • 23. Sprite: A popular lemon lime flavored soft drink introduced in 1961. Fanta: Second oldest brand from Coca Cola, introduced in 1940, comes in orange flavor. Diet Coke: Known as Coca Cola light in many markets. A sugar and calorie free soft drink introduced in 1982. Coca Cola Zero: Launched in 2005, this zero sugar brand acquired the status of a million dollar brand in 2007. Coca Cola life: Low calorie drink with cane sugar and Stevia leaf extract. Place Coca Cola has an extensive beverage distribution system. Its products are sold in more than 200 countries across 6 operating regions including Europe, Latin America, North America, Pacific, and Eurasia & Africa. An average of 1.9 billion servings of Coca Cola is sold every day. Traditionally, it has relied on its bottling partners for the packaging and distribution of its products. As Coca Cola notes, “While many view our Company as simply “Coca-Cola,” our system operates through multiple local channels. Our Company manufactures and sells concentrates, beverage bases and syrups to bottling operations, owns the brands and is responsible for consumer brand marketing initiatives. Our bottling partners manufacture, package, merchandise and distribute the final branded beverages to our customers and vending partners, who then sell our products to consumers” (Coca-Cola company). Its bottling partners work closely with its customers which include grocery stores, restaurants, street vendors, convenience stores, movie theatres and amusement parks, among many others. Together they execute Coca Cola’ localized strategies. These customers sell the coca cola products to the final customers.
  • 24. Price Pepsi is Coca Cola’s arch rival and the closest competitor in the beverages segment. Both brands price their products competitively. Prices are not too high to be beyond the average customers’ reach and nor too low to give an impression of low quality. Coca Cola’s pricing strategy is aimed at driving brand loyalty. Moreover, due to the decreasing demand for the soda products, price competition between Coca Cola and Pepsi has gotten even intense. Promotion Due to the intense competition in the soda industry a lot the top brands’ focus remains on advertising to drive higher sales and revenue. Coca Cola’s marketing expenditure in 2016 was $4 billion. It utilizes both traditional and modern channels to promote its brand and products. It launched its Taste the Feeling campaign in 2016 which unites all of its brands. This one brand approach taken by Coca Cola marks a significant shift from its previous marketing strategy. Apart from TV ads and outdoor ad campaigns, the brand also serves its ads across the internet and on the social media. Its social media accounts are used to connect with its fans and followers and for customer engagement. There are more than 1250 promotional videos of Coca Cola on its official YouTube channel.
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  • 26. CONCLUSION As part of the marketing mix, promotion includes all activities that involve communicating with the customer about the product and its benefits and features. Once a company has worked on the product and price elements, it is time to start a conversation with the customer about the product. Promotion is the communication aspect of the Marketing Mix. It is creating a channel for conversation with the targeted consumer base. Through promotion, the company aims to attract the customer attention and give them enough information about the product to foster enough interest to motivate them to purchase. Different organizations have different expectations from their promotional activities. These expectations are developed into objectives which then shape the selection and execution of these activities. Any promotional activity is usually designed with a specific target audience in mind. Through the promotional mix, a company aims to fulfill two basic objectives. One is to make the customer aware that the product and brand exist. The other is to persuade them to actually pick this product over all the others and continue to buy it. Product promotion is critical for every business due to the lasting impact promotion has on the clients. The promotional mix is essentially what promoting entails as well as how promoting is effectively done. It comprises Personal Selling, Advertising, Public Relations, Sales Promotion, Direct Marketing. Using the right blend of Promotional Mix ensures that a business will continue gaining customers and achieving success in both the short and long run.
  • 27. BIBLIOGRAPHY • www.universalclass.com • www.smallbusiness.wa.govau/business.com • http://yourbusiness.azcentral.com • www.scribd.com • www.slideshare.com • www.marketing91.com • http://thema,org • https://businessjargons.com