This document discusses the key elements of promotion, including advertising, public relations, personal selling, and sales promotion. It defines each element and provides examples. Additionally, it covers topics like the promotion mix, promotion objectives, promotion budgets, and legal/ethical issues in pricing. The overall purpose is to introduce the main components involved in developing an effective promotional strategy.

1. MODULE-1

2. What is Promotion ?
A specific combination of promotional methods
used for one product or a family of products.

3. Elements of the Promotion Mix
Advertising
Ingredients
of the
Promotion
Mix
Public Relations
Personal Selling
Sales Promotion

4. Advertising
Advertising - Presentation and promotion of ideas,
goods, or services by an identified sponsor.
Examples: Print ads, radio, television, billboard,
direct mail, brochures and catalogs, signs, in-store
displays, posters, mobile apps, motion pictures,
Web pages, banner ads, and emails.

5. Public Relation
Public relations - Paid intimate stimulation of
supply for a product, service, or business unit by
planting significant news about it or a favorable
presentation of it in the media. Examples:
Newspaper and magazine articles/reports, TVs
and radio presentations, charitable contributions,
speeches, issue advertising, and seminars.

6. Personal Selling
Personal selling - A process of helping and
persuading one or more prospects to purchase a
good or service or to act on any idea through the
use of an oral presentation. Examples: Sales
presentations, sales meetings, sales training and
incentive programs for intermediary salespeople,
samples, and telemarketing. Can be face-to-face
selling or via telephone.

7. Sales Promotion
Sales Promotion - Media and non-media
marketing communication are employed for a
pre-determined, limited time to increase
consumer demand, stimulate market demand or
improve product availability. Examples:
Coupons, sweepstakes, contests, product
samples, rebates, tie-ins, self-liquidating
premiums, trade shows, trade-ins, and
exhibitions.

8. The Communication Process
Noise
Sender Encoding Channel Decoding Receiver
Channel

9. Goals and Tasks of Promotion
Informing Reminding
Target
Audience
Persuading

10. AIDA and the Hierarchy of Effects
Awareness
Knowledge
Liking
Conviction
Preference
Purchase
Attention Interest Desire Action

11. When Elements of Promotion Are Most Useful
Advertising
Personal
selling
Sales
promotion
Public
relations
Awareness Knowledge Liking Preference Conviction
Very effective
Somewhat effective
Either not effective or inefficient
Effectiveness
Purchase

12. Factors that Affect the Promotion Mix
Nature of the Product
Stage in the Product
Life Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
Push–and–Pull Strategies

13. Creating a Promotion Plan
Analyze the Marketplace
Identify Target Market
Set Promotion Objectives
Develop Promotion Budget
Choose Promotion Mix

14. Criteria for Setting Promotion Objectives
Promotion objectives should:
be measurable, concrete
be based on sound research, with a
well-defined target audience
be realistic
reinforce the overall marketing plan and
relate to specific marketing objectives

15. Examples of Promotion Objectives
Objective: To Inform (Awareness)
To increase the top-of-mind awareness level for Peter Pan
peanut butter from 16 percent to 24 percent
Objective: To Persuade (Attitudinal)
To increase the percentage of parents who feel that Peter Pan
peanut butter is the best peanut butter for their children from
22 percent to 35 percent
Objective: To Remind
To remind consumers that Peter Pan peanut butter is the
creamiest peanut butter and is available at their nearest grocery
and convenience stores

16. Techniques for Setting Promotion Budgets
• Department Budget Allocation
• All - You - Can - Afford
• Competitive Parity
• Percent of Sales
• Market Share
• Objective and Task

17. Major Types of Advertising
Corporate Image
Advocacy Advertising
Types
of
Advertising
Pioneering
Comparative
Institutional
Advertising
Product
Advertising

18. Advocacy Advertising

20. Corporate Image Advertising
Mental picture that springs up at the mention of a
firm's name. It is a composite psychological
impression that continually changes with the firm's
circumstances, media coverage, performance,
pronouncements, etc. Similar to a firm's reputation
or goodwill, it is the public perception of the firm
rather than a reflection of its actual state or
position.

23. Pioneering Advertisement
Pioneering advertising refers to the launch
campaign of a new product category, as opposed to
the marketing of a single product within a
developed marketplace. The purpose of pioneering
advertising is to inform consumers of the arrival of
an entirely new concept and explain its benefits.

26. Comparative Advertising
Promotional technique in which an advertiser
claims the superiority of its product over
competing product(s) by direct or indirect
comparison. If other products are mentioned by
their name (and not as 'brand X,' 'brand Y,' etc.)

30. Advertising Campaign Decision Process
Determine the campaign objectives.
Make creative decisions. Make media decisions.
Evaluate the campaign.

31. Common Advertising Appeals
Profit
Health
Love or Romance
Fear
Admiration
Convenience
Fun and Pleasure
Vanity and Egotism
Save money, keep from losing money
Body-conscious, healthy
Sell cosmetics and perfumes
Social embarrassment, growing old, losing
health, power
Celebrity endorsement effective
Fast-food and microwave products
Vacations, beer, amusement parks
Expensive, conspicuous items

32. Executional Styles for Advertising
Musical
Demon-stration
Mood or
Image
Scientific
Real/
Common
Executional
Animated
Product
Symbols
Lifestyle
Spokes-person/
Testimonial
Fantasy
Slice-of-Life
Humorous
Styles

33. The Tools of Public Relations
Major
Tools
Used By
PR
Professionals
New Product Publicity
Product Placement
Customer Satisfaction
Phone Lines
Consumer Education
Event Sponsorship
Issue Sponsorship
Web Sites

34. Tools for Consumer Sales Promotion
Coupons
Premiums
Frequent Buyer Programs
Contests and
Sweepstakes
Samples
Point-of-Purchase
Displays
Six
Categories
of
Consumer
Sales
Promotions

35. Tools for Trade Sales Promotion
Trade Allowances
Push Money
Training
Free Merchandise
Store Demonstrations
Business Meetings,
Conventions, Trade-Shows
Six
Categories
of
Trade
Sales
Promotions

36. Advantages of Personal Selling
Message Control
Targeted
Cost Control
Detailed
Information
Closing Sales

37. Advertising Versus Personal Selling
Personal Selling is more important if...
The product has a high value.
It is a custom-made product.
There are few customers.
The product is technically complex.
Customers are geographically concentrated.
Advertising/Sales Promotion is more important if...
The product has a low value.
It is a standardized product.
There are many customers.
The product is simple to understand.
Customers are geographically dispersed.

38. Differences Between Traditional & Relationship Selling
Traditional Personal Selling
Sell products (goods and services)
Focus on closing sales
Limited sales planning
Spend most contact time telling
customers about product
Conduct “product-specific” needs
assessment
“Lone-wolf” approach to the account
Proposals and presentations based
on pricing and product features
Sales follow-up focused on product
delivery
Relationship Selling
Sell advice, assistance, and counsel
Focus on improving the customer’s bottom line
Considers sales planning as top priority
Spend most contact time attempting to build a
problem-solving environment with the customer
Conduct discovery in the full scope of the
customer’s operations
Team approach to the account
Proposals and presentations based on profit
impact and strategic benefits to the customer
Sales follow-up is long term, focused on
long-term relationship enhancement
Source: Robert M. Peterson, Patrick L. Shul, and George H. Lucas, Jr., “Consultative Selling: Walking the Walk in the New Selling Environment,”
National Conference on Sales Management, Proceedings,March 1996.

39. Steps in the Selling Process
Basic
Steps in
the
Selling
Process
Generating Sales Leads
Qualifying Sales Leads
Making the Sales Approach
Making the Sales
Presentation
Handling Objections
Closing the Sale
Following Up

40. Functions of Sales Management
Evaluate
Sales Force
Manage
Turnover
Motivate
Sales Force
Train Sales
Force
Structure
Sales Force
Determine
Sales Force
Size
Develop
Compen-sation
Plan
Recruit Sales
Force
Set Sales
Objectives
Major Tasks of
Sales
Management

41. 8 successful Mantras for successful sales call
1. Develop a professional greeting.
2. Introduce yourself and your company.
3. Express gratitude.
4. State the purpose of your call
5. Schedule a meeting
6. Face-to-face meeting
7. Thank them for their time today and for the
upcoming appointment
8.Follow up

42. How To Identify Prospective
Customer
• Data base
• Personal observation
• Social Meeting
• Direct Mailers or Letters
• Tele calling
• Cold Calling

43. Essentials for a successful sales man
1. Believe that you will be successful
2. Confidence To Make a Sales Call
3. Enthusiasm During A Sales Call
4. Focus On Your Customer
5. Be a Great Listener
6. Handle the Queries Successfully

44. Steps in Setting the Right Price
Establish Pricing Goals
Estimate Demand, Costs,
and Profits
Choose Strategy
Fine-Tune Base Price
$ $ $ Right $ Price
$ $ $ $

45. Legal and Ethical Issues in Pricing
Unfair Trade Practices
Key Legal
and Ethical
Issues
Related to
Price
Price Fixing
Price Discrimination