Unit 4 Session 2: Elements of Promotional Mix

 Unit 4 Session 2: Elements of Promotional Mix

By: Nagraj Sir


Elements of Promotion Mix

Promotion can be classified into two types: Above-the-Line (ATL) and Below-the-Line (BTL). ATL communication uses mass media like television and print to reach a large audience, while BTL targets specific audiences in more direct ways, such as at stores or events. BTL activities are increasingly popular due to their cost-effectiveness and ability to provide direct consumer interaction. For instance, brands like Dhara focus heavily on BTL strategies, such as wall paintings and fairs, to target rural markets.

There are several key elements in the promotion mix, often categorized into five main areas:

  1. Advertising and Word-of-Mouth Communication: Advertising involves paid, non-personal communication to promote products. Word-of-mouth communication, where customers share experiences, plays a crucial role in influencing potential buyers, especially in local or community settings.

  2. Sales Promotion: This involves offering temporary incentives to encourage immediate purchases. Examples include discounts, coupons, or limited-time offers. Sales promotions are often used to boost short-term sales and enhance customer engagement.

  3. Direct Marketing and Online Marketing: Direct marketing involves targeted communication with customers through channels like direct mail, email, or telemarketing. Online marketing uses digital platforms to reach consumers, including e-commerce and social media campaigns, making it a critical tool in today’s business environment.

  4. Personal Selling: This is a direct, two-way communication method where sales representatives persuade potential customers to make purchases. It often involves a personal approach, such as face-to-face interactions or telemarketing.

  5. Public Relations and Sponsorship: Public relations focuses on building a positive image and fostering relationships with the public through media, events, and community activities. Sponsorships support events or causes financially in exchange for brand visibility and association.

Modes of Advertising

  1. Print Media

    • Types: Newspapers (national, vernacular), magazines, trade journals, technical/professional journals, directories.
    • Advantages: In-depth coverage, mobility, flexible insertion, cost-effective, assessable results.
    • Limitations: Short shelf life, poor creativity, passive medium, no audio-visuals, competition with other ads.

  2. Radio

    • Advantages: Selective audience reach, cost-effective, fast lead time.
    • Limitations: Clutter, no visuals, divided attention from listeners.

  3. Television

    • Advantages: Realism (sound, color, action), ability to show product use, appeals to retailers, can use humor.
    • Limitations: High cost, remote control zapping, limited control over timing.

  4. Telemarketing (Mobiles & Telephones)

    • Advantages: Cost-efficient, less intrusive, place/time independent, direct response.
    • Limitations: Increasing aversion, use of technology to block calls, less control if outsourced.

  5. Cinema Advertising

    • Advantages: Captive audience, longer ad durations, large screen.
    • Limitations: Limited audience, high distractions, expensive.

  6. Out-of-Home Advertising

    • Types: Billboards, benches, posters, transit ads (buses, subways, etc.).
    • Advantages: Broad reach, eye-catching size, mass visibility.
    • Limitations: Short viewer attention span, brief messaging, limited to specific areas.

  7. Other Modes

    • Types: Cable ads, direct mail, specialty advertising (e.g., keychains), online ads, banner ads, and advergaming.

Role/Importance of Sales Promotion

Definition: Sales promotion involves short-term activities to add value and incentivize purchases.

Objectives:

  1. Increased trial: Encourage bulk purchases.
  2. Increased loyalty: Retain customers even if the product isn’t the cheapest.
  3. Widen usage: Promote multiple uses of a product.
  4. Creating interest: Use humor, inventiveness, or novelty to attract attention.
  5. Creating awareness: Make people aware of new products, sometimes through joint promotions.
  6. Deflecting attention from price: Prevent price wars.
  7. Gaining intermediary support: Boost distributor cooperation through incentives.
  8. Restoring brand perception: Offer promotions to resolve customer complaints.

Types of Sales Promotion:

  1. Price Promotions: Discounts, free offers, and coupons.
  2. Prize Promotions: Sweepstakes, lotteries, and competitions.
  3. Premium Promotions: Merchandize offers or purchase premiums.
  4. Off-the-shelf Offers: Free accommodation, holiday vouchers, and insurance offers.
  5. Hybrid Sales Promotions: Combining multiple promotional tactics like trade fairs.

Differences Between Advertising and Sales Promotion

  1. Purpose:

    • Advertising: Builds long-term brand image.
    • Sales Promotion: Drives short-term sales.

  2. Medium:

    • Advertising: Uses mass media (TV, print, radio).
    • Sales Promotion: Relies on direct incentives (coupons, discounts).

  3. Cost:

    • Advertising: Expensive.
    • Sales Promotion: More cost-effective.

  4. Effect:

    • Advertising: Gradual increase in sales.
    • Sales Promotion: Immediate impact.

Differences Between Personal Selling and Sales Promotion

  1. Objective:

    • Personal Selling: Builds long-term customer relationships.
    • Sales Promotion: Aims for immediate sales.

  2. Interaction:

    • Personal Selling: Involves face-to-face interaction.
    • Sales Promotion: No direct interaction, focuses on incentives.

  3. Cost:

    • Personal Selling: High due to training and personnel.
    • Sales Promotion: Lower cost for implementation.

  4. Products:

    • Personal Selling: Used for high-value, complex products.
    • Sales Promotion: Suitable for low-value, simpler products.

Factors Affecting Promotion Mix

  1. Push and Pull Strategies:

    • Push: Encourages intermediaries to promote products (wholesalers, retailers).
    • Pull: Focuses on consumer demand, pulling the product through the distribution chain.

  2. Product Features:

    • Industrial products use personal selling; consumer products rely on advertising.

  3. Stage of Product Life Cycle:

    • Introductory stage focuses on awareness (advertising, free samples). Growth phase highlights benefits (increased advertising). Maturity and decline focus on competitive sales promotion.

  4. Buyer Readiness:

    • Unaware customers need advertising; those ready to purchase need sales promotion.

  5. Type of Distribution:

    • Intensive distribution uses advertising and sales promotion; exclusive distribution needs personal selling.

  6. Promotion Objectives and Budget:

    • Large budgets allow extensive advertising; smaller budgets focus on targeted methods.

  7. Digital Dimension:

    • Understanding digital media’s rapid growth and consumer interaction is essential for creating effective marketing strategies.

  8. Elections:

    • Political events offer captive audiences for promotions, but they may increase costs due to political competition.

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