EVALUATION OF IMC PROGRAM

 INTERNATIONAL ADVERTISING 

International Advertising refers to the practice of advertising, which undertakes the marketing and promotion of products/services beyond domestic boundaries. International advertising focuses on marketing products in international marketing to make foreign people aware of the products/services and to expand the customer base. For international advertising, the business needs to adhere to the respective international country’s rules for advertising.

Objectives of International Advertising

1. Expanding Market Reach: The primary aim of international advertising is to extend a company’s market presence beyond its home country. By targeting audiences, businesses strive to explore customer segments and increase their market share.

2. Building Brand Awareness and Recognition: Establishing brand recognition is crucial for success in markets. Effective advertising campaigns help generate awareness about a brand’s existence and solidify its identity, in the minds of consumers.

3. Product Promotion: Promoting products or services, on a scale provides an opportunity to showcase their unique features and advantages to a worldwide audience. This enables customers to recognise the aspects of these offerings and encourages them to seriously consider making a purchase.

4. Cultural Sensitivity: When it comes to advertising, it is crucial to be culturally sensitive and ensure that your messages resonate with the target audience. Understanding the customs, values, and traditions is essential to avoid offending or alienating potential customers.

5. Establishing Trust and Credibility: Building trust is vital in influencing consumer decisions. Through advertising efforts, businesses strive to establish themselves as reputable entities in foreign markets.

6. Localisation: Effective international advertising requires adapting campaigns to suit the preferences and needs of markets. This involves customising content, including language, imagery and messaging to connect with consumers.

7. Gaining a Competitive Edge: International advertising provides an opportunity for companies to highlight their strengths and unique offerings compared to competitors in markets.

GLOBAL ENVIRONMENT IN ADVERTISING 

The global environment in advertising refers to the external factors that shape advertising strategies, messaging, and effectiveness in a worldwide context. As businesses expand their presence internationally, they must account for varied influences that impact how advertising is created, delivered, and perceived in different regions. Here are the primary elements of the global environment in advertising:

1. Economic Factors

• Economic Conditions: Countries have diverse economic climates, which influence consumers’ purchasing power, preferences, and spending behavior. Advertisers adjust their messaging to appeal to high-income versus low-income markets, or they might promote different products depending on the economic situation. For example, luxury brands may emphasize exclusivity in affluent regions, while in emerging markets, they might stress quality and durability.

• Currency Exchange Rates: Fluctuations in exchange rates impact how companies allocate budgets for international advertising. Companies may increase or decrease their advertising investment in certain markets based on currency value changes, affecting everything from campaign size to media choices.

2. Cultural Diversity

• Cultural Values and Norms: Each culture has unique values, traditions, and norms that influence consumer behavior and attitudes toward advertising. Marketers must respect these cultural elements to avoid offending audiences or creating miscommunication.

• Cross-Cultural Differences: Global advertising must account for varying interpretations of themes like family, authority, or success. What appeals to a collectivist society (emphasizing community and family) might differ greatly from what resonates in individualist societies that value personal achievement and freedom.

• Language Nuances: Language translation can lead to significant shifts in meaning, so localizing messages goes beyond simple translation. Some phrases and humor may not translate well, requiring creative adaptation to fit the cultural context.

3. Technological Advancements

• Digital Transformation: Digital advertising is reshaping how brands connect globally, allowing companies to target specific demographics across borders through social media, search engines, and streaming services. The rise of AI and machine learning enhances personalization, enabling ads that adapt to individual preferences and behaviors in different regions.

• Mobile and Internet Penetration: Varying access to technology also impacts advertising strategy. In highly connected markets, mobile and internet advertising take precedence, while in regions with less digital penetration, traditional media such as TV, radio, or print may remain more effective.

4. Legal and Regulatory Variations

• Advertising Standards and Regulations: Each country has its own set of advertising standards that dictate what is permissible. For instance, restrictions on alcohol, tobacco, or prescription drug advertising differ significantly. Companies need to navigate these regulations to avoid fines or negative repercussions.

• Data Privacy Laws: With growing privacy concerns, countries have implemented strict regulations on data use in advertising. The European Union's GDPR, for example, affects data collection practices for personalized ads, making compliance a top priority for global advertisers.

5. Political and Social Environment

• Political Stability and Policies: Political climates impact both the viability and the messaging of advertising. In unstable regions, companies may reduce ad spending due to risk, while in more stable environments, they might have greater flexibility to innovate.

• Social Issues and Sensitivities: Modern advertising is often intertwined with social responsibility, as consumers increasingly expect brands to take a stand on global issues like climate change, inequality, and health. Advertisers must navigate these sensitivities carefully to align with or respectfully address local perspectives.

6. Competitive Landscape

• Global Competition: Companies face competition not only from local brands but also from other multinational corporations. To differentiate, brands often emphasize aspects like heritage, innovation, or cultural alignment in specific markets.

• Regional Preferences and Brand Loyalty: Consumers may favor local brands for reasons like price, cultural relevance, and familiarity. Global brands must earn local trust through messaging that acknowledges and respects local traditions and preferences.

7. Consumer Trends and Behavior

• Changing Consumer Preferences: The global environment is constantly evolving as consumer preferences shift in response to new technology, environmental awareness, and lifestyle changes. For instance, consumers in many regions are now more eco-conscious, prompting brands to highlight sustainability in their advertising.

• Demographic Shifts: As population dynamics change, brands must adapt to meet the needs of emerging consumer segments. For example, younger generations in many countries are tech-savvy and responsive to digital, interactive advertising, while older consumers may prefer traditional media.

8. Environmental and Ethical Considerations

• Sustainability and Green Marketing: Environmental concerns are influencing advertising, as many global consumers are increasingly aware of sustainability. Brands need to communicate their environmental practices and commitments authentically to avoid "greenwashing" accusations.

• Ethics in Advertising: Ethical issues, such as fair representation and honesty in advertising, are essential to maintaining a positive brand image. Misleading claims, stereotypes, or harmful imagery can backfire, particularly in a global landscape where cultural perceptions differ widely.

DECISION AREAS IN INTERNATIONAL ADVERTISING 

1. Market Selection - Determine which foreign markets to target based on factors like market size, growth potential, competition, and cultural fit.

2. Cultural Adaptation - Tailor advertising messages, imagery, and cultural references to resonate with the values, beliefs, and preferences of the target audience in each market.

3. Language Considerations - Choose appropriate languages for advertising content, ensuring accurate translation and cultural relevance.

4. Media Selection - Select media channels that are popular and effective in the target market. Consider local media habits, regulations, and technological infrastructure.

5. Regulatory Compliance - Adhere to legal and regulatory requirements in each market, including advertising standards, intellectual property laws, and consumer protection regulations.

6. Media Buying and Negotiation- Negotiate advertising rates, placements, and contracts with local media vendors while considering market-specific pricing and bargaining practices.

7. Budget Allocation - Allocate resources based on the specific needs and potential return on investment in each international market.

8. Competitor Analysis  - Analyze local and international competitors to understand their advertising strategies, positioning, and messaging in the target market.

9. Coordination with Local Partners - Collaborate with local agencies, distributors, or partners to ensure cultural and market insights are integrated into the advertising strategy.

10. Timing and Scheduling - Consider market-specific factors, such as holidays, events, and seasonal variations, when planning the timing of advertising campaigns.

INTERNET ADVERTISING 

Internet advertising, also known as online advertising, is a digital marketing approach that uses the internet to deliver promotional messages to a targeted audience. It includes various channels and platforms such as search engines, social media, websites, emails, and mobile apps to reach and engage consumers.

Advantages of Internet Advertising

1. Targeted Reach: Allows advertisers to reach specific demographics based on location, age, interests, and online behavior.

2. Cost-Effectiveness: Compared to traditional media, internet advertising can be more affordable and provides higher ROI.

3. Measurable Results: Tools like Google Analytics allow advertisers to track clicks, conversions, and other metrics in real time.

4. Global Reach: The internet enables businesses to reach a worldwide audience instantly.

5. Enhanced Engagement: Interactive elements (polls, likes, shares) increase user engagement and create a two-way conversation.

Limitations of Internet Advertising

1. Ad Blindness: Users can become immune to ads or ignore them intentionally, reducing their impact.

2. Ad Blocking: Many users install ad blockers, which prevent ads from displaying.

3. Privacy Concerns: The collection of personal data for targeted ads raises privacy issues and regulatory concerns.

4. High Competition: With a vast number of ads online, it’s challenging to capture and retain user attention.

5. Rapid Changes: Digital trends and algorithms evolve quickly, making it hard to maintain consistency in performance.

Types of Internet Advertising

1. Search Ads: These text-based ads are displayed alongside search engine results when users search for specific keywords, offering high relevance and click-through rates. For instance, searching for "buy laptops online" on Google might display ads from Dell or HP at the top of the page. These ads are effective in capturing user intent and driving immediate action, as they target users actively looking for related products or services.

2. Display Ads: Display ads consist of visually appealing banners, images, videos, or interactive content shown on websites and mobile apps. For example, an online bookstore might display ads with clickable book covers on a news website. These ads help create brand visibility and awareness, often using eye-catching designs to grab the audience's attention.

3. Social Media Ads: Advertisements on platforms like Instagram, Facebook, and LinkedIn use precise targeting based on user demographics, interests, and online behavior. For instance, a food delivery service might run an ad on Facebook targeting users who follow food-related pages and live in specific areas. These ads are often tailored to encourage interaction, clicks, or purchases.

4. Video Ads: Video ads are dynamic and engaging, appearing on platforms like YouTube or integrated into social media feeds. For example, a cosmetics brand might create a 30-second ad showcasing a new product line, displayed before a YouTube tutorial video. Video ads are effective for storytelling, making them ideal for conveying complex messages in a short span.

5. Native Ads: These advertisements blend naturally with the platform's content format, making them less disruptive and more engaging. For example, a finance blog might feature a sponsored article about investment tips, presented in the same style as regular blog posts but labeled as sponsored content. This approach builds trust while promoting the brand subtly.

6. Email Advertising: Promotional emails are sent directly to a subscriber base, offering updates, discounts, or tailored recommendations. For instance, an online fashion store might email users about a flash sale, including personalized product suggestions. Email marketing is cost-effective and helps maintain customer relationships through regular, targeted communication.

7. Influencer Marketing: Brands collaborate with influencers who have a dedicated following to promote their products or services authentically. For example, a fitness brand might partner with a popular Instagram influencer to showcase gym equipment or supplements in their posts and stories. This approach leverages the influencer's credibility and reach to build brand trust and drive sales.

Industrial Advertising

Industrial advertising refers to the promotion of goods or services to businesses, governments, or other organizations for use in their operations, rather than to individual consumers. The goal of industrial advertising is to persuade these entities to purchase products or services that can help them improve their efficiency, reduce costs, or enhance their overall operations.

Examples of Industrial Selling in Chennai:

1. Automotive Industry: A sales representative from a Chennai-based company, such as Ashok Leyland or TVS Motor, sells automotive parts (e.g., engines, gearboxes) to other manufacturers or fleet operators in the city.

2. Textile Industry: A salesperson from a textile mill in Chennai, such as the Chennai Textile Mills or the Tamil Nadu Textile Corporation, sells fabric or yarn to garment manufacturers or exporters in the city.

Types of Industrial Advertising:

1. Trade Advertising: Targets businesses and organizations through trade publications, websites, and events.

2. Technical Advertising: Focuses on the technical aspects of a product or service, often using technical journals and online platforms.

3. Corporate Advertising: Promotes a company's image, values, and mission to build brand awareness and credibility.

4. Digital Industrial Advertising: Utilizes online channels, such as search engines, social media, and email marketing, to reach industrial buyers.

Characteristics of Industrial Advertising:

1. Rational Appeal: Industrial advertising often emphasizes the functional benefits, features, and technical specifications of a product or service.

2. Targeted Audience: Industrial advertising typically targets a specific audience, such as purchasing managers, engineers, or other decision-makers.

3. Longer Sales Cycle: Industrial buying decisions often involve a longer sales cycle, requiring multiple interactions and evaluations.

4. Relationship-Building: Industrial advertising aims to establish and maintain relationships with customers, suppliers, and partners.

Examples of Industrial Advertising:

1. GE Appliances: Targets commercial customers with advertising campaigns highlighting the energy efficiency and reliability of their appliances.

2. Caterpillar: Uses trade advertising and sponsorships to promote their heavy equipment and machinery to construction and mining companies.

3. Siemens: Utilizes digital industrial advertising to showcase their industrial automation and control systems to manufacturers and process industries.

Benefits of Industrial Advertising:

1. Increased Brand Awareness: Establishes a company's presence and reputation in the industrial market.

2. Lead Generation: Drives inquiries and leads from potential customers.

3. Thought Leadership: Positions a company as a trusted authority and expert in their industry.

4. Sales Growth: Ultimately, industrial advertising aims to drive sales and revenue growth.

B2B Communication

B2B (Business-to-Business) communication refers to the exchange of information, ideas, and messages between businesses, organizations, or institutions. Effective B2B communication is crucial for building relationships, negotiating deals, and driving business growth.

Characteristics of B2B Communication:

1. Formal Tone: B2B communication is typically formal, professional, and objective.

2. Technical Language: B2B communication often involves technical terminology, jargon, and industry-specific language.

3. Complex Decision-Making: B2B communication involves complex decision-making processes, requiring detailed information and analysis.

4. Long-Term Relationships: B2B communication aims to establish and maintain long-term relationships between businesses.

Channels of B2B Communication:

1. Email: Formal email communication is widely used in B2B interactions.

2. Phone Calls: Phone calls are used for real-time communication, negotiations, and deal closures.

3. Video Conferencing: Video conferencing tools facilitate remote meetings, presentations, and discussions.

4. Trade Shows and Events: Industry events, conferences, and trade shows provide opportunities for face-to-face B2B communication.

5. Digital Platforms: Online platforms, such as LinkedIn, Twitter, and industry-specific forums, enable B2B communication and networking.

Special issues in industrial selling

1. Complex Buying Decisions

Industrial buying decisions often involve multiple stakeholders, complex technical evaluations, and high-value purchases. Salespeople must navigate these complexities to build relationships and close deals.

2. Long Sales Cycles

Industrial sales cycles can be lengthy, often taking months or even years to complete. Salespeople must be patient, persistent, and able to maintain relationships over extended periods.

3. Technical Selling

Industrial sales often require a high level of technical expertise. Salespeople must understand the technical aspects of their products and be able to communicate complex information to customers.

4. Relationship Building

Industrial sales rely heavily on building strong relationships with customers. Salespeople must establish trust, credibility, and rapport with customers to secure repeat business and referrals.

5. Customization and Tailoring

Industrial customers often require customized solutions tailored to their specific needs. Salespeople must be able to understand customer requirements and work with internal stakeholders to deliver bespoke solutions.

6. Price Sensitivity

Industrial customers are often highly price-sensitive, as they seek to minimize costs and maximize ROI. Salespeople must be able to articulate the value proposition of their products and negotiate prices effectively.

7. Regulatory Compliance

Industrial sales may involve regulatory compliance issues, such as adherence to safety standards, environmental regulations, or industry-specific laws. Salespeople must ensure that their products and sales practices comply with relevant regulations.

IMC TOOLS OF COMMUNICATION

 DIRECT MARKETING

Direct Marketing is a form of marketing that involves communicating directly with customers or potential customers to promote products or services. It involves using various channels, such as mail, email, phone, or text messages, to reach customers and persuade them to make a purchase or take a specific action.

Definition 

Peter Bennett defines direct marketing as: the total of activities by which the seller, in affecting the exchange of goods and services with the buyer, directs efforts to a target audience using one or more media (direct selling, direct mail, telemarketing, direct-action advertising, catalog selling, cable TV selling, etc.) for the purpose of soliciting a response by phone, mail, or personal visit from a prospect or customer.  

Features of Direct Marketing

• Targeted: Direct Marketing allows businesses to target specific customers or groups of customers based on their demographics, interests, or behaviors.

• Personalized: Direct Marketing enables businesses to personalize their messages and offers to individual customers or groups.

• Measurable: Direct Marketing allows businesses to track the effectiveness of their campaigns and measure the return on investment (ROI).

• Interactive: Direct Marketing enables customers to respond to offers or messages, creating a two-way communication channel.

• Cost-effective: Direct Marketing can be more cost-effective than traditional forms of marketing, such as advertising.

Functions of Direct Marketing 

• Improving the selection of market segments – Marketers can target a greater potential purchaser, users, voters and so on.  

• Stimulate repeat purchases – Companies build a base of customers and contact them when they are due to repurchase.  

• Cross-sell – Customers who demonstrate a specific interest also constitute strong potential for other products of the same nature. For eg. A person who has purchased Aqua Guard water purifier can also be interested in purchasingVacuum Cleaner and Air Purifier etc.

• Customer Relationship Management – The aim of CRM is to establish a relationship with one’s customers through affinities, personalized communications and product/service offerings.  

• Build an image and generate goodwill by personally meeting the potential customers.  Maintain customer satisfaction by resolving their problems personally.  

• Inform/educate customers in an attempt to lead to future actions.

Growth of Direct Marketing  

• Consumer credit cards – It makes it feasible for consumers to purchase both low and high ticket items through direct response channels and assures sellers that they will be paid.  

• Direct marketing syndicates – Companies specializing in list development, statement inserts, catalogs and sweepstakes have opened many new opportunities to marketers. 

• The changing structure of society and so on – People are now money rich and time poor. The rapid increase in dual income families has meant more income. At the same time, the increased popularity of physical fitness, and home entertainment has reduced the time available for shopping and has increased the attractiveness of direct purchases.

• Technological Advances – The rapid technological advancement of the electronic media and of computers has made it easier for consumers to shop and for marketers to be successful in reaching the desired target markets.  

• Miscellaneous factors – Changing values, more sophisticated marketing techniques and the industry’s improved image have also ensured the success of direct marketing in future.  

• Toll free Number – Makes it easier for customers to respond to an offer by placement of the order and calling free of charge.

Advantages of Direct Marketing 

Many of the advantages of direct marketing have already been presented. A review of these and some additions follow: 

1. Selective reach. Direct marketing lets the advertiser reach a large number of people and reduces or eliminates waste coverage. Intensive coverage may be obtained through broadcast advertising or through the mail. While not everyone drives on highways where there are billboards or pays attention to TV commercials, virtually everyone receives mail. A good list allows for minimal waste, as only those consumers with the highest potential are targeted

2. Segmentation capabilities. Marketers can purchase lists of recent product purchasers, car buyers, bank-card holders, and so on. These lists may allow segmentation on the basis of geographic area, occupation, demographics, and job title, to mention a few. 

3. Frequency. Depending on the medium used, it may be possible to build frequency levels. The program vehicles used for direct-response TV advertising are usually the most inexpensive available, so the marketer can afford to purchase repeat times. Frequency may not be so easily accomplished through the mail, since consumers may be annoyed to receive the same mail repeatedly.

4. Flexibility. Direct marketing can take on a variety of creative forms. For example, the Discovery Network sent 17-inch TV sets to media buyers through the mail. The only message accompanying the TV sets was one on the cord that said "Plug me in" and another on a videotape that read "Play me." Upon doing so, the recipient was greeted with a seven-minute promotional video. Direct-mail pieces also allow for detailed copy that provides a great deal of information. The targeted mailing of videotapes containing product information has increased dramatically, as companies have found this a very effective way to provide potential buyers with product information.

5. Timing. While many media require long-range planning and have long closing dates, direct-response advertising can be much more timely. Direct mail, for example, can be put together very quickly and distributed to the target population. TV programs typically used for direct-response advertising are older, less sought-after programs that are likely to appear on the station's list of available spots. Another common strategy is to purchase available time at the last possible moment to get the best price.

6. Personalization. No other advertising medium can personalize the message as well as direct media. Parents with children at different age levels can be approached, with their child's name included in the appeal. Car owners are mailed letters congratulating them on their new purchase and offering accessories. Computer purchasers are sent software solicitations. Graduating college students receive very personalized information that recognizes their specific needs and offers solutions (such as credit cards). 

7. Costs. While the CPM for direct mail may be very high on an absolute and a relative basis, its ability to specifically target the audience and eliminate waste coverage reduces the actual CPM. The ads used on TV are often among the lowest-priced available, and a video can be delivered for less than $1 (including postage). A second factor contributing to the cost effectiveness of direct-response advertising is the cost per customer purchasing. Because of the low cost of media, each sale generated is very inexpensive.

8. Measures of effectiveness. No other medium can measure the effectiveness of its advertising efforts as well as direct response. Feedback is often immediate and always accurate.

Disadvantages of direct marketing 

1. Image factors. As we noted earlier, the mail segment of this industry is often referred to as junk mail. Many people believe unsolicited mail promotes junk products, and others dislike being solicited. Even some senders of direct mail, including Motorola, GM, and Air Products & Chemicals, say they throw out most of the junk mail they receive.

2. Accuracy. One of the advantages cited for direct mail and telemarketing was targeting potential customers specifically. But the effectiveness of these methods depends on the accuracy of the lists used. People move, change occupations, and soon, and if the lists are not kept current, selectivity will decrease. 

3. Content support. In direct-response advertising, mood creation is limited to the surrounding program and/or editorial content. Direct mail and online services are likely to create a desirable mood.

 4. Rising costs. As postal rates increase, direct-mail profits are immediately and directly impacted.

Types of Direct market media 

1. Direct Mail - Direct Mail involves sending physical mail to customers or prospects to promote products or services. This can include letters, postcards, brochures, catalogs, and other printed materials. Direct Mail is a traditional form of direct marketing that allows businesses to target specific customers or groups with personalized messages.

Example: A company sends a personalized letter to a list of customers who have previously purchased from them, offering a discount on their next purchase.

2. Catalogs - Catalogs are a type of direct mail that showcases a company's products or services in a printed format. Catalogs can be sent to customers or prospects to encourage browsing and purchasing. They often include images, descriptions, and prices of products, as well as ordering information.

Example: A clothing company sends a seasonal catalog to its customers featuring new arrivals and best-sellers.

3. Broadcast Media - Broadcast Media involves using television or radio to reach a large audience with a direct marketing message. This can include commercials, infomercials, or sponsorships. Broadcast Media allows businesses to reach a wide audience, but it can be expensive and less targeted than other forms of direct marketing.

Example: A company runs a 30-second commercial during a popular TV show to promote a new product.

4. Infomercials - Infomercials are long-form television commercials that typically run 30 minutes or longer. They are designed to educate viewers about a product or service and encourage them to make a purchase. Infomercials often feature product demonstrations, customer testimonials, and special offers.

Example: A company produces an infomercial for a new kitchen gadget, featuring a celebrity chef demonstrating its benefits.

5. TV Advertorials - TV Advertorials are a hybrid of advertising and editorial content. They are designed to look like a regular TV program, but are actually a commercial for a product or service. TV Advertorials often feature a host or expert discussing the benefits of a product or service.

Example: A company produces a TV Advertorial for a health supplement, featuring a doctor discussing its benefits and featuring customer testimonials.

6. Print Media - Print Media involves using printed materials such as newspapers, magazines, and flyers to reach customers or prospects. This can include display ads, classified ads, or inserts. Print Media allows businesses to target specific audiences and create a tangible impression.

Example: A company places a display ad in a local newspaper to promote a sale or promotion.

7. Telemarketing - Telemarketing involves using the telephone to contact customers or prospects and promote products or services. This can include outbound calls, inbound calls, or automated calls. Telemarketing allows businesses to interact with customers in real-time and build relationships.

Example: A company hires a telemarketing firm to contact customers and offer them a special promotion.

8. Electronic Teleshopping - Electronic Teleshopping involves selling products or services through digital channels such as the internet, mobile devices, or interactive TV. This can include online shopping platforms, mobile apps, or online marketplaces. Electronic Teleshopping allows businesses to reach customers wherever they are and provide a seamless shopping experience.

Example: A company creates an online shopping platform to sell its products, allowing customers to browse and purchase from the comfort of their own homes.

SALES PROMOTION 

MEANING

Sales promotion consists of a diverse collection of incentive tools, mostly short-term, designed to stimulate quicker and / or greater purchase of a particular product by consumers or the trade. Whereas advertising offers a reason to buy, sales promotion offers an incentive to buy. 

Sales promotion includes tools for consumer promotion (for example samples, coupons, prizes, cash refund, warranties, demonstrations, contest); trade promotion (for example buying allowances, free goods, merchandise allowances, co-operative advertising, advertising and display allowances, dealer sales contests); and sales-force promotion (for example bonuses, contests, sales rallies). 

DEFINITION 

W.J. Stanton defines sales promotion as all those activities other than advertising, personal selling, public relations and publicity that are intended to stimulate customer demand and improve the marketing performance of sellers.

SALES PROMOTION TOOLS 

Many sales promotion tools are available to accomplish these objectives at the consumer level, and at the middle men level. For the purpose of convenience, the types of sales promotion methods may be grouped under three categories: 

1. Types of sales promotion directed at consumers. 

2. Types of sales promotion directed at dealers and distributors.

Consumer Promotion Tools 

The main consumer promotion tools include samples, coupons, cash refund offers, price packs, premiums, prizes, patronage rewards, free trials, product warranties, tie-ins, and point of purchase displays and demonstrations.  

1. Samples - Samples are offers of a free amount or trial of a product to consumers. The sample might be delivered door to door, sent in the mail, picked up in a store, found attached to another product or featured in an advertising offer. Sampling is the most effective and most expensive way to introduce a new product

2. Coupons - Coupons are certificates entitling the bearer to a stated saving on the purchase of a specific product. Coupons can be mailed, enclosed in or on other products or inserted in magazine and newspaper advertisements. Coupons can be effective in stimulating sales of a mature brand and inducing early trial of a new brand.  

3. Cash Refund Offers or Rebates - These are like coupons except that the price reduction occurs after the purchase rather than at the retail shop. The consumer sends a specified “proof of purchase” to the manufacturer, who in turn „refunds‟ part of the purchase price by mail. Cash refunds have been used for major products such as automobiles as well as for packaged goods.  

4. Price Packs - These are offers to consumers of savings off the regular price of a product, flagged on the label or package. They may take the form or a reduced-price pack which is single packages sold at a reduced price (such as two for the price of one) or a banded pack, which is two related products banded together (such as a toothbrush and toothpaste). Price packs are very effective in stimulating short term sales, even more than coupons.  

5. Premiums or Gifts - These are merchandise offered at a relatively low cost or free as an incentive to purchase a particular product. Sometimes the package itself, is a reusable container may serve as a premium. A self-liquidating premium is an item sold below its normal retail price to consumers who request it.  

6. Prizes - These are offers of the chance to win cash, trips or merchandise as a result of purchasing something. Pepsi-cola offered the chance to win cash by matching numbers under the bottle cap with numbers announced on television. Sometimes the prize is a person, offering the winner either cash or dinner with actor Sharuk Khan.  

7. Patronage Awards - These are values in cash or in other forms that are proportional to one’s patronage of a certain vendor or group of vendors. Most airlines offer “frequent flyer plans” providing points for miles traveled that can be turned in for free airline trips. Cooperatives pay their members dividends according to their annual patronage. Le Meridien adopted an “honored guest” plan that awards points for users of their hotels.  

8. Free Trials -  Free trials consist of inviting prospective purchasers to try the product without cost in the hope that they will buy the product. Thus, often we see, auto dealers encourage free test drives to stimulate purchase interest.  

9. Product Warranties - These are an important tool, especially as consumers become more quality sensitive. When My TVS offered a two year car warranty, substantially longer than other competitors‟ customers took notice. They inferred that My TVS quality must be good or else the company would be in deep trouble. Companies must carefully estimate the sales-generating value against the potential costs of any proposed warranty programme.  

10. Tie-in Promotions -  These are becoming increasingly popular. In a tie in promotion two or more brands or companies team up on coupons, refunds and contests to increase their pulling power. Companies pool funds with the hope of broader exposure, while several sales forces push these promotions to retailers, giving them a better shot at extra display and ad space. 

11. Point-of-Purchase Displays - These take place at the point of purchase or sale. Display of visible mark or product at the entrance of the store is an example. Unfortunately many retailers do not like to handle the hundreds of displays, signs and posters they receive from manufacturers. Hindustan Lever often uses this tool to promote its products in the retail market.  

12. Product Demonstrations - Products are being shown in action. Consumers can visit the store and see the usage of products in live action so that doubts of the consumers can be clarified in the store itself. When a new product is introduced in the market, the sales promotional tool is often used. For example ultra modern grinder mixie being used by the company to demonstrate its speciality than the other product.

Trade Promotion Tools 

More sales promotion rupees are directed to the trade than to consumers.  Manufacturers seek the following objectives in awarding money to the trade: 

• Trade promotion can persuade the retailer or wholesaler to carry the brand. 

• Trade promotion can persuade the retailer or wholesaler to carry more than it normally carries. 

• Trade promotion can induce the retailers to promote the brand through featuring, display, and price reduction. iv. Trade promotion can stimulate retailers and their sales clerks to push the product.

Manufacturers use several promotion tools. 

Some of which are mentioned below: 

1. Price – Off - Manufacturers may offer a price – off, which is a straight discount off the list price on each case purchased during a stated period of time. The offer encourages dealers to buy a quantity or carry a new item that they might not ordinarily buy. The dealers can use the buying allowance for immediate profit or price reductions.  

2. Allowance - Manufacturers may offer an allowance in return for the retailer agreeing to feature the manufacturer’s products in some way. An advertising allowance compensates retailers for advertising the manufacturer’s product. A display allowance compensates them for carrying a special display of the product. 

3. Free Goods - Manufacturers may offer free goods, which are extra cases of merchandise to middlemen who buy a certain quantity of items.  

4. Push Money - Manufacturers may offer push money which is cash or gifts to dealers or their sales force to push the manufacturer’s goods.  

5. Speciality Advertising Items - Manufacturers may offer free specialty advertising items to the retailers that carry the company’s name such as pens, pencils, calendars, paper weights, and memo pads. 

As the number of competitive sales promotions have increased, friction has been created between the company’s sales force and its brand managers. The sales force says that the retailers will not keep products on the shelf unless they receive more trade promotion money, while the brand managers want to spend their funds on consumer promotion and advertising.

Non Conventional Tools & Techniques

• Game show– Eg. Family Fortune, Eg: Khul Jaa Sim Sim  

• Quiz Program – Sponsored by companies  

• Surprise visit by celebrities to consumer’s house, Eg: Pepsi by Madhavan.  

• Surprise gifts to existing customers

• Foreign Trips/ Tour/Domestic Tour  

PUSH AND PULL STRATEGIES 

The push and pull promotional strategies may be used to enhance sales. The push strategy concentrates on middlemen or retailers who push the sale of the product to the final consumers. This strategy covers cooperative advertising, attractive terms of sale, coupons and discount facilities. 

The pull strategy is directed toward the final buyers. It persuades the buyers to go to the sellers to buy. Sales promotion, particularly customer promotion, is an important form of the pull strategy. Customer promotion, may call for the offer of samples, money-refund offers, prices-off, premiums and so on. 

The push strategy asks the sellers or retailers to attract the layers. Trade promotion is thus the main form of the push strategy. Trade promotions refers to buying allowances, free goods, co-operative advertising, push money, sales contests and so on. The marketing manager has to adopt both these strategies to promote sales. 

Features of pull strategy 

Pull strategies depend upon mass communication. Products are literally pulled by buyers through the channels on the basis of mass promotional efforts. In a pull strategy, the product is pulled through the channel by creating end- user demand. Customers force retail shops to stock those mass- promoted products. In turn, retailers demand the highly advertised product from wholesalers. The firms having well- known brands can exercise control over channels through pull promotion strategies. Personal salesmanship plays a secondary role in pull promotion. Marketers rely on intensive distribution. Dealer margins are also lower in pull promotion.  

Features of push strategy

Industrial marketing strategies are mostly push type strategies relying primarily on personal selling. Also in the sale of medical products and in life insurance, marketers have to employ a lot of salesmen to call on physicians and prospects for life insurance. 

In push type promotion, personal selling expenses are considerable and dealer margin is also higher. In this, after – sale service is also important and marketers rely on selective distribution. 

Push strategy can be successfully used when: 

1. We have a high quality product with unique selling points. 

2. Where we have a high priced product. 

3. We can offer adequate incentives (financial) to middlemen and their salesmen.

COOPERATIVE ADVERTISING

Corporate advertising is the advertising done for an entire institution/ company/ organization and not for individual brands or products. This kind of activity is an extension of the Public Relations (PR) activity done by the company to improve its image in the minds of the general public and increase its goodwill which is an extremely important intangible asset.

Instead of advertising for its individual brands and products, the corporate advertises to build its own image. We know many companies across the globe which have numerous brands under them. HUL, P&G, Volkswagen, General motors are some examples. All of these companies also take part in corporate branding, wherein instead of branding only one particular product or brand, they brand the corporate itself.

Types of Corporate Advertising 

1. Image Advertising - One form of corporate advertising is devoted to promoting the organization's overall image. Image advertising may accomplish a number of objectives, including creating goodwill both internally and externally, creating a position for the company, and generating resources, both human and financial. 

2. General image or positioning ads. Ads are often designed to create an image of the firm in the public mind. The exhibit shows how Tyco is attempting to create an image of itself as a market leader and health care expert, not a toy company. A number of companies have created new names—for example, Accenture, Verizon, and Allianz—in an attempt to create a new image. 

3. Sponsorships - A firm often runs corporate image advertising on TV programs or specials. For example, the Hallmark or IBM specials and documentaries on network TV and Mobil and Gulf Oil program sponsorships on public TV are designed to promote the corporation as a good citizen. By associating itself with high-quality or educational programming, the firm hopes for a carryover effect that benefits its own image.

4. Generating financial support -  Some corporate advertising is designed to generate investments in the corporation. By creating a more favorable image, the firm makes itself attractive to potential stock purchasers and investors. More investments mean more working capital, more money for Research and development, and so on. In this instance, corporate image advertising is almost attempting to make a sale; the product is the firm. While there is no concrete evidence that corporate image advertising leads directly to increased investment, at least one study shows a correlation between the price of stock and the amount of corporate advertising done.

5. Advocacy Advertising - it is concerned with propagating ideas to the public while still portraying an image for the company.  Advocacy (support) Advertising – Address a social or environmental issue. SAY NO TO DRUGS

6. Cause related advertising - this is done to create favorable publicity with respect to carrying out a charitable job. EG: PolioVaccination, etc…It is Done to create favorable publicity with respect to carrying out a charitable task. Eg. FIGHT AGAINST CANCER

PUBLIC RELATIONS (PR)

Public Relations (PR) is the management of communication between an organization and its public. Public Relations is concerned with or dedicated to creating mutual understanding among groups and institutions. Public relations work counseling, media relations, publicity, community relations, governmental affairs, employee relations, investor relations, development/fund-raising, special events, and marketing communications. Institute of Public Relations in the USA defined Public Relations as a deliberate, planned, and sustained effort to establish and maintain mutual understanding between an organization and its publics.

Objectives of Public Relations

Like other aspects of marketing promotion, public relations are used to address several broad objectives including:

• Building Product Awareness. When introducing a new product or relaunching an existing product, marketers can use a PR element that generates consumer attention and awareness through media placements and special events.

• Creating Interest. Whether a PR placement is a short product article or is included with other products in a “roundup” article, stories in the media can help entice a targeted audience to try the product. For example, around the holiday season, a special holiday food may be promoted with PR through promotional releases sent to the food media or through special events that sample the product.

• Providing Information. PR can be used to provide customers with more in depth information about products and services. Through articles, collateral materials, newsletters and websites, PR delivers information to customers that can help them gain understanding of the product.

• Stimulating Demand. A positive article in a newspaper, on a TV news show or mentioned on the Internet, often results in a discernible increase in product sales.

• Reinforcing the Brand. In many companies the public relations function is also involved with brand reinforcement by maintaining positive relationships with key audiences, and thereby aiding in building a strong image. Today it is ever more important for companies and brands to build a good image. A strong image helps the company build its business and it can help the company in times of crises as well.

Major Public Relations Tools

Public relations professionals use various tools. Major public relations (PR) tools include news, speeches, and special events. PR professionals find or create news in favor of the company and its products. Speeches and talks given at trade associations or sales meetings can create product and company publicity. PR tools used to communicate to the public.

• Oral communication 

• Printed and graphic communication 

• Print media 

• Outdoor media (electronic displays, hoardings, posters) 

• Broadcast media (radio, television, films) 

• Other media (websites, endorsements, exhibitions)

1. Oral Communication - It is an age-old tool used for communication. Before the introduction of writing and technologies of communication, oral communication was the only means to communicate. It may be carried through meetings, speeches, telephone calls, public address systems, panel discussions, counseling, workshops, seminars, etc. This medium is very much effective, fast, and less costly. Still, at the same time, it has limitations that the message cannot be retained for long, and also, there is a possibility of misinterpretation.
2. Printed Literature - Printed Literature is an essential thing for any business, organization, and service, whether it is commercial or non-profit making. The house journals, annual reports, brochures, catalogs, booklets, leaflets, annual reports, direct mail, etc. comprise Printed Literature, which keeps the record and helps inform and persuade the target audience about a product, service, or an idea. The photographs are also a vital source to attract attention and provide proof of the facts or events.

3. Publicity Media - Print Media, TV, Radio, Films and Documentaries, New Media, etc. are the different mediums of mass media, which plays an important role in disseminating information among the target groups to achieve the desired goals. Print Media has played an instrumental role in awakening a large number of people during the freedom struggle. Thus, publicity through Press or Print Media is an effective tool with the highest impact. Also, the Language Press can help in targeting the audience of specialized interests. Television is another effective medium with the highest popularity among all the mediums of communication as it informs, educates, and entertains the people with audiovisual mode. Then another medium is Radio, which is a mobile medium and possesses the qualities of a direct personal medium as it uses the spoken word for the most part to convey the message. The Public Relations department or personnel need to prepare an apt press release, press briefings and should arrange press conferences to provide clear information to all these mediums. The message can also be communicated through Films/Short Films or Documentaries based on a particular subject. Films make a powerful impact on the audience with their audio-visual qualities. And the impact of the news media like the internet, teleconferencing, mobile communication, social media, etc. have also become prominent nowadays.

4. Exhibitions/Fairs - Exhibitions are another device that serves as an effective tool for PR. People often do not participate in formal meetings, workshops, etc. out of disinterest towards long speeches and other formalities attached to these programs. Still, exhibitions and fairs have an interesting and relaxed ambiance with various entertainment sources, food stalls, etc. Thus, they have the potential to attract a large number of people. Instead of long speeches and boring sessions, they display the Posters, Photographs, Animated FlowCharts and Diagrams, Murals, Sculptures, Audio-Video Aids, and interesting Literature, etc. Organizing Exhibitions/Fairs, Puppet Shows, Community Songs, and Dance Programs, Nautanki, Tamasha, Street Plays, etc. are the powerful forms of Traditional Media that provide information, education, and entertainment to the rural, uneducated folks.

5. Advertising - Advertising is the paid presentation and promotion of ideas, goods, and services. The advertisements are given in the different mediums of communication to disseminate messages, create a favorable image, and establish goodwill. The various types of advertisements include Print Media (display ads in newspapers & magazines and also leaflets, flyers, posters, etc.), Electronic and New Media (audio-visual ads on TV, Radio, internet, mobile, etc.), Outdoor Media (hoardings, gantries, kiosk poles, display ads on mobile vans, visual ads on the railway station, airports, restaurants, and other public spots). Also, in these times of aggressive marketing and promotional strategies, promotional literature, and material referred to as P.O.P., i.e., point of purchase, is a vital tool as it influences the consumers’ decision regarding the purchase of any product. At the same time, Public Service Advertising contains the purpose of public welfare and educating the people about various government policies so that they can avail maximum benefit out of it. These advertisements are also used to improve and maintain a good image of the Government and generate Favorable Public Opinion.

6. Special Events - Special events are the most visible component to maintain community relations. Special events include Celebration of Local and National Festivals and Days, Organising Music Concerts, Plays, Book Fairs, Career Fairs, Trade Fairs, Jewellery Shows, Literary Weeks, Honoring Famous Artists, Celebrities and Intellectuals, etc. These programs are entertaining as well as informative, and people look forward to such programs in advance. The promotion of any attached product or sponsors through these events becomes very much convenient and convincing.

7. Media Relations - Media Relations is an important activity of Public Relations and an important tool for a Public Relations Practitioner because good Media coverage and support from Media can be availed only by maintaining healthy and good relations with media persons. Through press releases, press conferences, press briefings, a Public Relations Person can establish a rapport with Media persons. The hospitality arrangements, arranging visits, and tours for media persons to ensure their participation in press conferences and meetings come under Media relations.

PUBLICITY

Publicity is the communication about a brand, offering, or a business by placing commercially significant news about it in the media without paying for time and space directly. In simple terms, publicity is the movement of information to the public via media coverage and other non-paid mass media sources. Publicity is not a process but a result of a good public relations strategy where the marketers succeed in providing favorable information to media and other third-party outlets like bloggers, vloggers, podcasters, etc.

Characteristics Of Publicity

Publicity has the following five characteristics:

• Non-Paid Form: Publicity is a non-paid form of promotion. All of the media coverage is organic.

• Driven By Media: Publicity depends on media outlets that give a viral blow to the shared information by publicizing it.

• No Control: The brand has no control over message, time, frequency, information, and medium. 

• Focuses On A Broader Audience: Publicity isn’t targeted marketing. It focuses on the shotgun approach, where the information is published to a broader audience.

• Credible: The target audience considers publicity to be a more credible form of communication as it uses trustworthy channels like news outlets.

• Short-Term Focus: Publicity is a promotional strategy focused on fulfilling short-term goals like a product launch, event promotion, etc.