In this chapter, you will learn

about Sales Promotion, Publicity,

and their Relations with Public.
SALES PROMOTION AND PUBLICITY
CONTENTS
CONTENTS Sales Promotion
CONTENTS Publicity
Any form of communication, a business firm uses to inform, persuade or remind
people about its product or image.

What is Promotion ?
Promotion mix refers to the combination of various
promotional tools used by the business firms to
create, maintain and increase demand.

What is Promotion Mix ?
Elements of Promotion Mix
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This is one of the constituents of promotion mix, which is concerned
with extra efforts for increasing sales.
Though sales promotion is a widely used term, few are clear about its
precise meaning. In simple word, we may define it as those activities,
other than advertising and personal selling, which aim at sales
expansion.
A Precise meaning of sales promotion, however, is the efforts directed
at increasing the sales and carried out in context of salesmen, dealers
and customers.
SALES PROMOTION- INTRODUCTION

According to American Marketing association:
Those Marketing activities other than personal
selling, advertising and publicity, that stimulate
customer purchasing, dealer effectiveness, such as
display, shows and exposition, demonstrations and
various non-recurrent selling efforts not in the
ordinary routine.

Sales promotion consists of a diverse collection of
incentive tools, mostly short term, designed to
stimulate quicker and/or greater purchase of a
product/service by consumers or the trade PHILIP
KOTLER

1. SP are action focused.
2. SP are marketing events.
3. SP are design to have a direct impact on consumer behaviour.
4. SP are designed to influence consumers or marketing intermediaries.

Characteristics of Promotion
Yield faster, more measurable results in sales
Stimulate consumer trial
Attract new triers or brand switchers
Reward loyal customers
Increase repurchase rate of occasional users
Enhance Brand Image


Purpose of Sales Promotion
In order to understand the basic role and function of sales promotion, one must
differentiate between sales promotion and other components of the marketing
mix.
Sales promotion usually operates on:
a short timeline (temporarily),
uses a more rational appeal,
returns a tangible or real value,
fosters an immediate sale, and contributes highly to
profitability.

Sales Promotion Vs Other Promotional Tools ?
To introduce new products or services:
To attract new customers
To induce existing customers to buy more
Helps the firm to remain competitive
To increase sales in off-seasons
To add to the stock of the dealers


Main Objectives of Sales Promotion ?
Types of Sales Promotion
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It is a marketing technique that is used to entice customers to purchase a
product. The promotions typically last for a set period of time and are used to
achieve a specific purpose, such as increasing market share or unveiling a new
product

Objectives of Consumer Sales Promotion
Retain customer
Increase repurchase
Increase footfall

Consumer Sales Promotion
A type of promotion related activity whereby a product and/or service is pushed
through a marketing channel via the encouragement of those
channel members to buy, as well as to promote the product and/or service to
their own group of customers.

Objectives of Trade Sales Promotion
Buying more
Building relationship
Competition

Trade Sales Promotion
The schemes are intended to motivate sales people to put in more efforts
to increase sales, increase distribution, promote new or seasonal products, sell
more deals to resellers, book more orders, develop prospects lists and build up
morale and enthusiasm.

Objectives of Sales-force Sales Promotion
Increase the level of motivation
Getting Market Information
Encourage selling of a new product


Force Sales Promotion
Techniques of Sales Promotion
Techniques of Sales Promotion
A valuation approach
where items are sometimes initially marked up
artificially but are then offered for sale at what
seems to be a reduced cost to the consumer.
For example, a retail
store business might offer discount pricing on all
of its apparel items for a limited time
period in order to attract new customers and
boost sales.




Discount
Buy one, get one free", or "Buy one, get one" is a
common form of sales promotion. While rarely
presented to customers in acronym form,
this marketing technique is universally known in the
marketing industry by the
acronyms BOGO and BOGOF and it is regarded as
one of the most effective forms of special offers for
goods

Buy 1 Get 1 Free
Combo offer is an offer in which a product
is combined with another product may or
may not be in the same category and are
sold in order to attract the customer.

Combo Offers
A straight discount off the list price on each case purchased during a stated time period.

Price Off
An allowance given to trade for arranging
desired display and merchandising efforts.
To create enthusiasm in trade, increase store
traffic and exposure at the point-of-purchase,
encourage trade to promote companys
product, to gain more shelf space.

Display Allowance
A place where sales are made. On a macro-
level, a point of purchase may be a mall,
market or city. On a micro-level, retailers
consider a point of purchase to be the area
surrounding the counter where customers
pay. Also known as "point of sale".
Point of Purchase
Product demonstrations are
arranged to increase awareness
about new products, usage
benefits and performance.
To convince customer, motivate
dealers, build store-traffic,
reinforce advertising and personal
selling efforts.

Demonstration
A product bundling strategy is a
marketing approach where
multiple products or components
are packaged together into one
bundled solution.

Product Bundling
Loyalty programs are
structured marketing efforts that
reward, and therefore encourage, loyal
buying behaviour behaviour which is
potentially beneficial to the firm.

Loyalty Programs
Financing Options
Objectives, Merits & Demerits of SP
Manufacturers
helps to increase sales in a competitive market and thus, increases profits;
helps to introduce new products in the market by drawing the attention of potential
customers;
When a new product is introduced or there is a change of fashion or taste of
consumers, existing stocks can be quickly disposed off;
It stabilizes sales volume by keeping its customers with them

Advantages of Sales Promotion
consumers
the consumer gets the product at a cheaper rate;
It gives financial benefit to the customers by way of providing prizes and sending
them to visit different places;
The consumer gets all information about the quality, features and uses of different
products;
Certain schemes like money back offer creates confidence in the mind of customers
about the quality of goods

Increased price sensitivity
Quality image may become discolored
Dealers forward buy and divert stocks
Merchandising support from dealers is doubtful
Short-term orientation







Disadvantages of Sales Promotion
PUBLICITY
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Publicity of a product can be defined as making goods
publicly known.
Information that attracts attention to a Company, Product,
Person, or event.
A third party, usually from the media, is often employed to
generate publicity.
The main objective of publicity is not sales promotion, but
creation of an image through editorial or 'independent source'
commentary. While the publicist can control the content of
the story, he or she may not have any control over its
placement or interpretation by the media.
Definition of Publicity
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Publicity is a subset of public relation. Publicity can be done through a print or
broadcast media. publicity is a form of non personal unpaid, mass communication.
Publicity is the technique or process of attracting public attention to
people, products, etc., as by the use of the mass media.
Publicity
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Public relations (PR) is a management function which deals
with public issues. An important component of public relations
is publicity. Publicity deals with news coverage of events
relating to companies products and services
Meaning of PR
A systematic act of building an image of a
product/service/idea/company among the target
group/general public/stake holders through a welldesigned
promotion on a regular basis.
Public Relation
50 BC
Caesar wrote 1
st
campaign biography
To convince Romans that he would be the best head of state
394 AD
St Austin delivered eulogies to Roman emperor
1
st
of the people in charge of PR
1776
Thomas Paine- Master of political propaganda
His writings could make people do and believe in things
History of PR
1795
Georgiana Cavendish, duchess of Devonshire, with Charles James
Fox
Included press relations, lobbying & celebrity campaign
1903
PR became a profession
Ivy Lee advised John D Rockefeller
1918
PR took next step towards professionalization with Edward Bernay
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Promoting goodwill, product or service.
To give information to internal employees.
Helps to overcome negative publicity
Give advice and council.
OBJECTIVES OF PR
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To Create A Favorable Image.
To Attract Attention.
To Arouse Interest
To Stimulate Involvement.
To Explain The Program.
To Communicate Ideas.
To Provide Opportunities For Being Creative.
To Target An Audience.
To sell The Program.
To Bring People Together
The Publicity Campaign
GOALS OF PUBLICITY
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Publicity is neither too cheap nor too dear, it is only good or bad. Even
when it seems cheap, if it is bad it is always too expensive.
Good publicity reaches the right people in the right place at the right
time, and above all by the right means.
Good publicity does not add words to a given illustration, nor does it
make a picture to fit a given text. Illustration and text spring from the
same idea, they affect and explain each other.
Good publicity springs from the subject which it serves, attracts
attention to it, and is harmonious with it.
FEATURES OF GOOD PUBLICITY
BASIC PRINCIPLES OF PUBLICITY
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Put creativity into your publicity!
You can generate more enthusiasm and interest by using unique, fresh,
and clever methods of promotion.
Developing gimmicks or logos, utilizing pictures and unusual shapes are
all ways in which publicity can be made more attractive.
CREATIVITY
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If no one type of publicity reaches the entire audience, you must use
more than one.
More than one medium can also reinforce and intensify your message.
Use a variety of techniques that work well together and complement
each other.
VARIETY
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An advertisement must be seen or heard several times before it has any
impact.
The more often it is seen or heard, the greater the retention of your
message.
Thus, you can magnify the impact of your publicity by increasing the
frequency with which it is seen or heard.
QUANTITY
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Since the frequency with which publicity is seen or heard is crucial to its
effectiveness, it makes sense to place your publicity in locations that
have high visibility.
Areas with the greatest traffic patterns usually have the highest
visibility.
Good locations include: mailbox areas, cafeteria walls, bathrooms and
bathroom stalls, under or on room doors, bulletin boards, etc.
VISIBILITY
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How often an advertisement is seen will have little impact if what is
seen is not legible.
The greater the legibility, the greater the chances that an individual will
read all of the information.
Greater legibility is ensured by using lower case lettering rather than
uppercase.
Capitals may be used for emphasis; but to be effective, emphasis must be
used sparingly.
LEGIBILITY
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Even if your message is readable or can be heard well, it must be
understandable to get the message across.
You can make your publicity more understandable and more
effective by incorporating the following points:
i. Be concise and clear.
ii. Avoid excess verbiage.
iii. Use terminology that the target audience would
understand.
UNDERSTANDABILITY
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Publicize well enough in advance.
If publicity goes out too late, it does not give people enough time to plan
to attend an activity.
For optimum exposure, publicity should be out at least one week before
your activity is scheduled to take place.
However, you may want to issue additional publicity pieces as the event
approaches .
ADVANCE NOTICE
TYPES OF PUBLICITY
PUBLICITY TECHNIQUES
Publicity Public relation
1. It is short term strategy

2. Publicity may be positive or negative

3. It is not always under the control of the person

4. about whom publicity is made

5. It need not be paid by the organization

6. Creates impact by deeds

7. Uses press release to achieve the purpose

8. Controlled by the firm. It can control the amount of
impact that the event makes
1.This is a long term strategy, PR program extends over a
long period of time.

2.PR is always positive.

3.It is under the control of the firm or its agent

4.It is paid by the organization for doing PR

5.Creates impacts by proclamation

6.Uses sponsored event to achieve the purpose

7.The company is under the obligation to the press for
the release of information.
PUBLICITY vs. PR
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Increase in Demand
At the most basic level, publicity generates interest in, and
demand for, a product or service offered by a company.
Branding Benefits
Brands are company logos or signifying marks that help
consumers identify a particular product with the company that
produces it.
Culture and Absorption
Whenever people consume news on a daily basis, their sense of
what is important in the world changes.
Spill over Opportunities
As people come to perceive a person or company as more
important, they are likely to consider that person or company for
additional opportunities.
ADVANTAGES OF PUBLICITY
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