CHAPTER VII

PROMOTION MIX
Contents:
7.1 Personal Selling
7.2 Sales Promotion
7.3 Advertising
7.4 Public Relations
Promotion mix or communication mix is the particular combination of promotional tools used by
a firm to communicate with the audiences. These are the means by which firms attempt to
inform, persuade and remind its target market, using both direct and indirect means, about the
brands they sell as well as about the company as a whole. Although communications directed to
the target markets are the mainstay of the communication program, firms need to communicate
with all its stakeholders i.e. suppliers, customers, shareholders, customers, employees and
government agencies. Firm develop specific communication plans directed to the stakeholders.
Communication mix stands for three special kinds of promotional activities namely,
personal selling, advertising, sales promotion. Some authors include the fourth element namely,
public relation.

7.1 PERSONAL SELLING

Personal selling is an art of convincing the prospects to buy the given products and services. It is
an act of persuasion. It is an ability to handle the people to dangle the product. It is the science
and art of understanding the human desires and pointing the way to their fulfillment. It is the
ability to convert human needs into wants.

DEFINITIONS:
According to American Marketing Association, “Personal selling is the oral presentation in
conversation with one or more prospective purchasers for the purpose of making sales.”

According to Blake, “Salesmanship consists of winning the buyer’s confidence for the seller’s
house and goods thereby the regular and permanent customer.”

RELEVANCE OF PERSONAL SELLING

There are certain market conditions where personal selling is more relevant as it provides easy
and effective answers to various problems. These conditions are:-

1. Market conditions:- The special market situations that encourage personal selling
are:-
 Where a firm sells in a small local market.
 Where consumers are concentrated at a single point.
 Where any agent or middlemen is not available.
 Where selling is made only to middlemen.

2. Product conditions:- These includes:-

 Where the company’s product is in the introductory stage of product life cycle.
 Where the product requires personal demonstration.
 Where the product requires personal attention to satisfy the needs of customers.
 Where the product is of high unit value.
 Where the product requires after sale services.
 3. Consumer conditions:- The special customer conditions that require
personal selling are:-
 Where the consumer needs immediate answers to his queries.
 Where the consumer requires persuasion and follow up.
 Where the purchases are valuable and irregular.

4. Company conditions:- There are certain company conditions that motivate

for personal selling. These are:-
 Where the company is not able to identify and use non personal methods of
selling.
 Where the company thinks that it does well with personal selling as compared to
any other alternative.

METHODS OF PERSONAL SELLING:-

1. Selling across the table:- This is the selling method under which the company’s
salesman negotiates the sales across the table by inviting the prospective buyer either in
company’s premises or at any other specified place especially hotels. This method is
generally used in long term, high value transactiouns that establish relatively long term
buyer-supplier relationship. The best example of this type is the supply of industrial
products.

2. Selling at the doorstep:- Under this method sales is done by the company’s salesman
by personally visiting the houses of the prospective customers and explore the
possibilities of making sales of their product.

3. Auction selling:-This is the method of making sales where the company’s salesman
invites the prospective buyers at an appointed place and time – may be company’s
premises or any other common place of meeting. The salesman asks the group to quote
the price, after giving them an opportunity to examine the goods. Generally he quotes the
minimum amount below which the bids are not allowed the fall so that company can
become aware of minimum price to be received. It is a very popular method of making
sales.

4. Tender selling:- It is the method of sales under which the company invites the tenders
from the prospective buyers through an advertisement requesting them to submit their
offer of purchase in respect of particular product or service. The company sells the
product to that person who gives the most profitable price and meets the company’s
conditions regarding sales.

5. Selling at the counter:- Under this method, the salesman of the company does not go
to the prospective customer, but it is the buyer who visit the salesman at the shop to
 purchase a product or service. The salesman available at the counter attends the customer,
give the demonstration of the product, helps the customer in making up his mind to
purchase the product. This is the most common method of making sales.

THE PROCESS OF PERSONAL SELLING:-

Selling process is the sequence of steps involved in the conversion of human

desires into demand for a product or service. These steps are:-
1. Prospecting
2. Pre-approach
3. Approach
4. Presentation and demonstration
5. Overcoming objections

1. Prospecting:- searching for prospects is called prospecting. Here, the prospects is the
person or institution who is likely to be benefited by the product the salesman want to sell
and can afford to buy it. It is the work of collecting the names and addresses or persons
who are likely to buy firm’s products or services.

2. Pre-approach:- Pre-approach is to get more detailed facts about a specific individual to

have effective sales appeal on him or her. The objective of pre approach is to plan the
information.

3. Approach:- approach means the meeting of the prospects in person by the salesman
where he makes face to face contact with the prospects to understand them better. The
objective of approach is to convert the favourable attention of the prospects easily and
smoothly into sales proposition.

4. Presentation and demonstration:- presentation implies an array and decoration of

articles in the shop. It is the heart of selling process. Effective presentation has the
capacity to convince the customer of his sales preposition. Demonstration is a part of
presentation, because mere description is not enough. It is the crucial task of providing
the proofs and providing the statements about quality, utility, performance and service of
a product.

5. Overcoming Objections:- an objection is the expression of disapproval of an action

taken by salesman; it is an adverse reason or an argument indicating clearly that the
prospects is not yet ready to buy. The experts have a set procedure for overcoming
objections, as listen to the prospects, anticipate the objections and prevent their
occurrence.

6. Closing:- the success in the earlier stages will lead to the last stage of closing the sale.
Closing sale is to persuade the prospects to act right now than postponing the sale. It is in
this stage that prospects is turned into customer, desire into demand.
7.2 SALES PROMOTION
The phrase is made up of two words namely, ‘sales’ and ‘promotion’. Sales-promotion means
special offers. ‘Special’ in the sense that they are extra as well as they are specific in time and
place. ‘Offers’ in the sense that they are direct propositions the presence of which forms the part
of a deal. The that supplement, coordinate and make more effective the efforts of personal
selling, advertising and distributors to increase the sale and stimulate the consumers in buying
more. It is the function in marketing of providing inducements to buy, offered for a limited
period only, at the time and place the purchase decision is made which are supplementary to a
product’s normal value. Sales-promotion is a direct and immediate inducement that adds an extra
value to the product so it prompts the sales-force, dealers and consumers to buy the product.

STANDARD DEFINITIONS:-
American Marketing Association “those marketing activities other than personal selling,
advertising and publicity that stimulate consumer purchasing and dealer effectiveness such
as display, shows and exhibitions, demonstrations and various non- recurrent selling effort
in the ordinary routine”.

Mr. Christian Peterson, “Sales-Promotion is the achievement of short

term marketing objectives by schematic means.”

Mr. L.K. Johnson, “Sales-Promotion consists of all those activities whose purpose is to
supplement, co-ordinate and make more effective efforts of the sales-force, of the
advertising department, and of the distribution and to increase sales otherwise stimulate
consumers to make greater initiative in buying.”

SALES-PROMOTION OBJECTIVES:-

Objectives Alternative Programmers

1. Inquiries free gifts-Mail in coupons for informa-
tion, Catalog offer-exhibits – demonstration.
2. Product trails Coupons-rupees off specials –free samp-
les , contests-premiums.

3. Repurchase On pack coupons –Mail in coupons for

Rebate –Continuity premiums.

4. Traffic-Building Special sales- Weekly specials –Enterta

Ined events-retailer coupons premiums.

5. Inventory-Build Multi-packs-special price on twos-merc

Handise allowance-return allowamce.
Ing.

6. Promotional Reusable display cases-Sales contests for

support distributor sales people –promotional all-
owance –co-operative promotions.

SALES PROMOTION TOOLS:-

A. DEALER PROMOTIONS:-
The term ‘dealer’ is used here to include the retailers, wholesalers and distributors. The
dealer promotions are of three types- namely, dealer loaders, dealer coupons and point of
purchase promotion.

1. Dealer loaders:-
‘Dealer loader’ is the premium offered to dealers tied with the quantity of purchases.
Dealer-loader offers, perhaps among the best sales promotion tactics designed to sell in
order to get the traders to stock greater quantities at specific times. The dealer’s co-
operation is sought to load them with stocks.There can be
three basic loader schemes:-

Merchandise deals: When a marketer aims at building a dealer inventories by offering

additional quantities of saleable merchantdise as an incentive, it is referred to as
‘merchandise deal’.

Price deals: under price deals for dealers, special discounts are offered over and above
the regular discounts agreed upon between the dealers and the company. For example, if
the regular discount is Rs. 5.00 per case, dealers may be given Rs. 6.00 per case that is
rupee 1.00 extra per case.
Gift-novelties: Many a times the marketing prefers to give away attractive and useful
articles as presents to the dealers against the orders placed. These Gift-novelties can be
transistors, radio sets, clocks, watches, cupboards, chairs, tables, cash-boxes, lamps, steel
utensil, lemon and lunch sets dress material and the like.

2. Dealer coupons:
A coupon is simply a document that entitles the holder certain stated concessions. The
function is to serve as inducement to the dealers to stock the said item or items. That way it
is very simple. A marketing company places coupons in bulk pack or packs and exchanges
them for gift merchandise listed in a catalogue.

3. Point of purchase promotion:

1. Dealer stock display contests: In real sense, a display contest amongst dealers is
more an advertising medium than an incentive offer. Here, the best display arranged gets
the prize. The objectives of stock display contents are: 1. to provide the very necessary
product exposure at the point of purchase, and 2. to generate enthusiasm among dealers
through the bait of attractive prices.

2. Dealer sales contests: Sales contest is a sales incentive competition organized

amongst salesmen or dealers. Sales contests require participating dealers to compete among
themselves in terms of sales performance during a given period. The prizes are given by the
company to the performers in order of merit as 1st , 2nd , 3rd and so on.

B. CONSUMER PROMOTIONS:-
Consumer promotions are the customer incentive plans to induce them to buy more. A
customer premium plan can be best described as an article of merchandise offered to the
consumer as an incentive to buy more and more regularly over a short span .

1. Direct consumer offers:

a) Off the pack premiums: The marketer distributes the gift articles meant for
the wholesalers and retailers and then announces the premium offer through
attractive advertising media to bring the fact to the notice of consumers. The
premium article is neither banded with nor inserted inside the product package, but
is distributed separately along the product.
 b) Banded premium offer: A banded premium offer can be defined as the offer
of the two product sold together, often in one combined pack, at something less
then their normal combined price when sold separately. In case of banded premium
offers the article of the premium is firmly banded with the regular product package
with a tape or other suitable material.

c) In pack offers: Here the premium is packed inside the product package and it is
followed by a message to that effect to the consumer, on the package. It is most
popular in India as the consumer receives the premium immediately on the purchase
of the product.

d) Price deals: it is a temporary price reduction used to attract the consumer to a

product. Price deals have been effective with low priced, frequently purchased non-
durable products.

e) Quantity deals: it offers the consumer more quantity of the same product as
premium at no extra cost or with a nominal increase in the price of the deal
package.

2. Conditional Consumer Offers: it includes:-

a) Coupon Premium Plan: under this plan, the consumers are to save coupons
usually issued as a part of product package. Premium is given a way in
exchange of the coupons.

b) Self- liquidating offer: it is an offer where, upon the proof of the purchase
having been made, are given an option to obtain the premium offer article at
a price far less than it would cost in the shop.

c) Consumer contests: it is the contest or competition based on skill among the

consumers in which prizes are offered. Usually, participants are required to
purchase the product and send the proof of that and fulfill other conditions.

C. SALES-FORCE PROMOTION:
 a) Bonus to sales force: bonus is the extra payment made for those who cross the sales
quota set for a specified period. This help both the company and sales force as they
both benefit by increased sales.

Sales contest: sales contests are declared to stimulate the sales force to double or multiply their
sales over a stipulate period of time with the prizes going to top performers.

7.3 ADVERTISING

Advertising is the business of people, for the people and by the people. Advertising is important
and can help make firms and brands leaders in the market provided they have just the products
and services that the market requires. Advertising has become so integral part of our life and
society that we can’t imagine any event, newspaper, magazine, TV serial, Cinema etc. without
advertising. Advertising is a vital marketing tool as well as powerful communication medium.
The basic objective of any advertisement is to stimulate sales, direct or indirect by trying to make
tall claims about product performance.

The term ‘advertising’ is derived from the original Latin word ‘advertere’ which means to turn
the attention. The dictionary meaning of the advertising is to announce publicly or to give public
notice. Advertising is used for communicating business information to the present and
prospective customers. It provides information about the advertising firm, features of its
products, qualities, place of availability of its product, different schemes offered, benefits of
using its product etc. Advertising is important for both buyers and sellers. Advertising influences
consumer attitudes and buying behaviour. Advertisement helps in increasing product-awareness,
preferences, share of market and profitability.

According to American Marketing Association, “advertising is any paid form of non-personal

presentation of ideas, goods or services by an identified sponsor.”

Advertising Media
Media is the vehicle that carries the advertiser’s message to target audience. Media
includes all such means through which advertising message is communicated to the target
audience. For achieving advertising objectives, selection of right kind of media is important. It
should reach the right people, at the right time, at the right place and convey the right message.
The media choices have multiplied with the advent of colour television, commercialization of
Indian TV, cable TV, and the launch of STAR, Zee and other regional language channels. There
are various types of advertising media. These various types of media can be grouped under the
following categories.

Print Media:
Print Media is also known as press advertising. It is one of the media of communication along
with broadcast media and outdoor advertising media. It mainly includes advertising through
newspaper and magazines.
a) Newspapers:
It is really hard to imagine life without newspapers. It is essential as a good cup of tea in
the morning or even more important than tea to start a day. Newspaper is one that gives news-
views-ideas-interpretation-opinions-comments and explanation regarding the social, economic,
political, educational, moral, cultural, ecological, meteriological developments and the like. Of
all the media, newspaper is considered as the backbone of the advertising programmes as it has
continued to remain the most powerful message carrier. Of the total space, 45% goes to
advertisements in form or the other and the rest for textual matter. The rates vary from one
newspaper to other newspaper depending upon their circulation and popularity.
The newspapers are classified on the bases of coverage, frequency, and languages. A
good number of newspapers are also published in different regional languages.

Merits of Newspaper Advertising Media :

1. The cost of newspaper is less a compared to its use.
2. Wide publicity is possible.
3. Speedy preparation and publication of advertising is possible.
4. Newspapers are having a large demand and wide coverage.
5. It is suitable for direct and indirect selling.

Limitations of Newspaper Advertising Media :

1. It is having a shortest life. “Today’s newspaper is tomorrow’s waste paper.
2. Frequent advertisement become ineffective.
3. No chances for display and demonstration.
4. Newspaper advertising is affected by the illiteracy of the public.

b) Magazines:
Like newspapers, magazines are one of the oldest media of advertising. Magazines are
the periodicals which come out regularly but not on a daily basis. These may be published on a
weekly, fortnightly, monthly, bimonthly, quarterly or even yearly basis. These magazines may be
classified into two broad categories as special and general. The examples of special magazines
are Film-fare, Star and Style, Femina, Eve’s Weekly, Health Care, Architect, Dentist, Executive,
Banker, Industrial Times, Business India, Promotion which cater to the needs of a selected
group. On the other hand, general type of magazines do not concentrate on a particular subject
but cover in general all the aspects. The examples of this kind are; Reader’s Digest, Front-line,
India-Today, Imprints, Mirror, Illustrated Weekly, Times, Life, Span, Business India, Business
World, Fortune, National Geographic, Advertising and Marketing, Advertising Age and so on.
All these periodicals have a large number of readers and thus, advertisements published in them
reach a number of people.

Broadcast Media:
 It includes advertisements in radio, television, cable etc. This media has both audio and
visual effect. Broadcast media carrying advertiser’s message to the target-audience., Television
has grown faster than any other advertising media and offers combination of sight, sound and
movement in presenting advertisements. Broadcast media is mainly of two types:

a) Radio:
Radio advertising can be aptly called as “word of mouth” advertising on a whole sale
scale which was welcomed in 1920. The advertising message is conveyed through spoken words
in case of radio-advertising. Over the years, radio has remained popular and effective means of
advertising.

b) Television:
With rapid growth of information technology and electronic media, television has topped the
list among the media of advertising. TV has the most effective impact as it appeals to both
eye and the ear. Products can be shown, their uses can be demonstrated and their utilities can
be told over television. With catchy slogans, songs and dance sequences, famous
personalities exhibiting products TV advertising has a lasting impact. Sponsorship means
sponsoring a particular programme by advertiser. In this case advertiser makes payment to
TV channel for sponsoring programme. In case of participation, advertisers pay to TV
channels for 10,20,30 seconds of commercial time during prescribed TV programme i.e.
advertisers make direct payment to TV channels for telecasting his advertisement. Rates of
advertisement differ from one channel to other channel.

Outdoor or Mural Advertising Media:

Outdoor advertising means advertising out of door. It is generally done on the roadsides.
It is meant for moving-public and provides the advantage of reminding the people frequently
regarding advertiser’s product or service. The new forms of outdoor advertising includes using
balloons, kites and skywriting. Outdoor advertising is of following types:

a) Neon-sign Boards:
These are big hoardings which are placed on busy-places. These display brand name of
advertiser. Because of big size, these attract attention easily. With the advance in printing
technology, big printed plastic-sheets with attractive colours, visual-effects are pasted on big
boards, which are permanently fixed on both sides of the busy roads. Now-a-days, electric-neon-
signboards are becoming common. In the big cities, these boards use the flashing lights by which
advertiser’s message moves on the board electronically. These type of neon-signboards are
called electronic flashing signboards which don’t use flashing/moving lights. These neon-
signboards are depicted at the top of showrooms, shops of retailers and at other busy
places/roads.

b) Posters:
Posters are made of big size paper sheets. These are pasted on the walls, hoardings and
advertising boards. This is the cheapest and oldest form of the outdoor advertising. These are
displayed on bus-stops, near railway-station, cinema halls, near schools, colleges, road-sides,
near road-crossings etc. Generally, advertisers paste their posters at a particular place again and
again.. Advertising for movie is usually done through posters. Posters are also pasted on walls of
houses, shops.

c) Vehicle Advertising:
It is also called transit advertising. It is advertising on the public transport system such as
bus transport, railways. On the Indian-railway alone, millions of commuters move every day. In
case of bus transport, advertising is common on its back side and side- roof-panels inside the bus.
Inside-transit-advertising is observed by persons traveling in the vehicle. For passing their time,
passengers look on these posters and read whole of message. In India , because of more
dependence of people on public-transport-system, this method is more use for advertisers.

d) Sandwichmen:
They are hired-persons and are dressed like circus-jokers. They walk in busy places with
boards, posters in their hands and stickers pasted on their back, depicting the message of
advertiser. Sometimes a man is made tall by attaching long supports to his legs. He walks
through the busy places with message of advertisers in his hands. When sandwichmen move
through busy places, they catch attention of passers by.

Direct Mail Advertising:

In this advertising media, advertiser contacts target audience through mail. It offers
highest selectivity as it can be directed only to target audience. Direct mail advertisements don’t
have to compete with other advertisements. Most people read their mails thoroughly. Here the
message can be in form of letters, circulars, catalogues, brochures, booklet, informative manuals,
business-reply-cards, posters, charts, coupons, invitations etc. Direct mail advertising is
informative and persuasive. In direct mail advertising direct contact is made between advertisers
and potential customers, whereas in case of print media or broadcast media, target audience are
contacted indirectly, through newspaper, magazine, radio, T.V etc.

Internet Advertising Media:

Internet has created a borderless world and has linked all the internet users of the world
with each other. It is also known as information superhighway because of the large amount of
data available in it. Internet sites are full of advertising. It is the only media where a person can
read, watch, rewrite, save and can even do shopping etc. The high interactivity of this media
makes it valuable. With the growth of computers and launch of internet on cable TV and mobile
phones, its area is expanding day by day. It is another form of electronic media. It is also known
as media of new millennium. With the increase in internet services, e-business and e-commerce
are expanding and now shoppers do e-shopping and retailers do e-retailing. On internet,
advertisements are designed by web-designers.

THE CHOICE OF PROMOTION MIX

The choice of promotion mix is governed by following five factors:
 1. The type of target group:- Promotion activities are directed towards four target
groups namely consumers, retailers, wholesalers and industrial buyers. The type of
promotion needed is governed by the size and individual needs of each type.

2. The size of promotion budget:- Small firms with meagre budget allocation cannot
think of enjoying economies in promotion deals. They cannot employ large scale
personal selling, and in case of advertising, the national coverage. They have to go in for
local news papers, outdoor ads, direct mail.

3. Stage in life cycle:- As during introductory stage, more emphasis is to be put on

promotion strategies, as the product is new in the market. In the growth stage, it is
secondary demand than the primary demand that counts. In maturity stage, it becomes
more aggressive and in the decline stage, the aim is to pick a selected group of customers.

4. The competitive situation:- Mass selling is the solution in the monopolistic market.
In case of pure competitive conditions, only personal selling does well. Oligopolistic
situation needs both personal selling and advertising.

5. The nature of product:- The exact influence of the product feature on production mix
depends upon two points namely, technical nature and the degree of brand familiarity.
The first points need personal selling and the second sales promotion efforts.

6. Nature of promotional tool:- Each promotional tool, may it be personal selling,

advertising or sales promotion, each of them has its unique features, costs and benefits.
Depending upon the individual needs, a suitable mix can be made use of.

7.4 PUBLIC RELATIONS

It is a form of promotion to create, develop and maintain a bright public image of an organization
in the community so that the reputation of the seller sets as a goods selling point to promote sale
of goods under competition. Public relation means good relatios with everyone be it consumers,
employees, government, shareholders and the community at large.

According to Edward Bareney, “Public Relations is an attempt by information persuation and

adjustment to engineer public support for an activity, cause, movement or institution.”

OBJECTS:-
The main object of public relations is to secure the goodwill of the public towards the product or
services by having in a manner as to please those with whom the company comes into contact. It
is also an image building exercise of the company in the minds of the consumers and at public at
large.

SCOPE:-
The scope of public relations is very large as experts have identified five significant targets for
public relation efforts i.e. consumers, dealers, employees, shareholders and community. This
scope of targets may be enlarged by including any other target group with which the company
might wish to communicate.

FUNCTIONS OF PUBLIC RELATIONS DEPARTMENT:-

1. Communicating with consumers:- A favourable image must be created both about

the product of the company as well as the company in the minds of the consumers. It can
be easily done by public relation department by providing proper information regarding
company’s profile i.e. history, background, policies, objectives and nature as well as
above all its quality of products.

2. Communicating with dealers:- Dealers relations are a key note in any company’s
public relation programme. There should be smooth communication between the
organization and the dealers and vice versa.

3. Communicating with shareholders:- A shareholder is a person who has invested his

funds in the company- hence he expects a reasonable returns on his investment, keeping
in view the risk he is taking by investing his money into the business of the company.
Thus there is a need to meet frequently with shareholders to appraise them the detail
functioning of the company.

4. Communicating with employees:- If the employees are contended than employees

will do their best for the company- hence there should be regular meeting between the
management and the employees so that the difficulties faced by the employees may be
attended by the management.

5. Communicating with community:- There is a great need that community at large be

communicated about the company’s favourable image in the minds of general public. The
above mentioned parties i.e. dealers, customers, employees and the shareholders or even
the company itself is an integral part of the community.

6. Miscellaneous Functions:
a) Press relations
b) Product Publicity
c) Corporate Communication
 d) Dramatisation

MARKETING PUBLIC RELATIONS:-

The market public relations goes beyond publicity and plays an important role in
the following task:-
1. Assisting in the launch of new product.
2. Assisting in repositioning a mature product.
3. Influencing various specific target groups.
4. Building interest in a product category.
5. Building the corporate image in a way that reflects favourably on its product.