Study on Advertising and Sales Promotion Strategy

Used by Retail Store in India

A Project Report Submitted to

B.Voc. - Retail and Logistics Management

CENTRAL UNIVERSITY OF HARYANA

In partial fulfillment of the requirements for the Degree of
B.Voc. - Retail and Logistics Management

Central University of Haryana

Supervised By
Dr. Suyash Mishra
Assistant Professor & Teacher-In-Charge
B.Voc. - Retail and Logistics Management

Submitted By
Ganesh
Roll No. - 6710

Session - 2018-2019

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 DECLARATION

I, GANESH hereby declare that the project entitled “Study on advertising and
Sales Promotion Strategy Used by Retail Store in India “is based on my own
work carried out during the course of my study under the Co-Supervisor of Mr.
Jony.
I assert the statements made and conclusions drawn are an outcome of my Project
work. I further certify that
I. The work contained in the report is original and has been done by me under
the general supervision of my supervisor and co-supervisor.
II. I have followed the guidelines provided by the university in writing the
report.
III. Whenever I have used materials (data, theoretical analysis, and text) from
other sources, I have given due credit to them in the text of the report and
giving their details in the references.

Name – Ganesh
Roll No. - 6710

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 ACKNOWLEDGEMENT
I would like to express my special thanks of gratitude to my Supervisors
Dr. SUYASH MISHRA and Dr. RISHI KANT as well as Mr. JONY
who gave me the golden opportunity to do this wonderful project on the
topic “Study On Advertising And Sales Promotion Strategy Used By
Retail Store In India” which also helped me in doing a lot of Project
work and I came to know about so many new things I am really thankful
to them.
Secondly, I would also like to thank my parents and friends who helped
me a lot in finalizing this project within the limited time frame.

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 INDEX

S. No. CONTENTS
1 Declaration
2 Acknowledgment
3 Introduction
4 Origin and Development of advertising
5 Definition of advertising
6 Retail store meaning and type
7 Classification on the basis of merchandise
8 Classification on the basis of non-store retailing
9 Retailing in India
10 Type of store layout
11 Objectives
12 To study the advertisement mix used by the companies.
13 To study the sales promotion strategy by retail in India.
14 Conclusion
15 Suggestion
16 Bibliography

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 Chapter 1: INTRODUCTION

Advertising is only one element of the promotion mix, but it often considered
prominent in the overall marketing mix design. Its high visibility and
pervasiveness made it as an important social and encomia topic in Indian
society. Promotion may be defined as “the co-ordination of all seller-initiated
efforts to set up channels of information and persuasion to facilitate the scale of
a good or service.” Promotion is most often intended to be a supporting
component in a marketing mix. Promotion decision must be integrated and co-
ordinate with the rest of the marketing mix, particularly product/brand
decisions, so that it may effectively support an entire marketing mix strategy.
The promotion mix consists of four basic elements. They are-
1) Advertising
2) Personal Selling
3) Sales Promotion and
4) Publicity

1. Advertising is the dissemination of information by non-personal means

through paid media where the source is the sponsoring organization.
2. Personal selling is the dissemination of information by non-personal
methods, like face-to-face, contacts between audience and employees of the
sponsoring organization. The source of information is the sponsoring
organization.
3. Sales promotion is the dissemination of information through a wide variety
of activities other than personal selling, advertising and publicity which
stimulate consumer purchasing and dealer effectiveness.
4. Publicity is the disseminating of information by personal or non-personal
means and is not directly paid by the organization and the organization is not the
source.
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ORIGIN AND DEVELOPMENT OF ADVERTISING
It has been wrongly assumed that the advertising function is of recent origin.
Evidences suggest that the Romans practiced advertising; but the earliest
indication of its use in this country dates back to the middle Ages, when the use
of the surname indicated a man’s occupation. The next stage in the evolution of
advertising was the use of signs as a visual expression of the tradesman’s
function and a means of locating the source of goods. This method is still in
common use. The seller in primitive times relied upon his loud voice to attract
attention and inform consumers of the availability of his services. If there were
many competitors, he relied upon his own personal magnetism to attract
attention to his merchandise. Often it became necessary for him to resort to
persuasion to pinpoint the advantages of his products. Thus, the seller was doing
the complete promotion job himself. Development of retail stores, made the
traders to be more concerned about attracting business. Informing customers of
the availability of supplies was highly important. Some types of outside
promotion were necessary. Signs on stores and in prominent places around the
city and notices in printed matters were sometimes used. When customers were
finally attracted to the store and satisfied with the service at least once, they
were still subjected to competitive influences; therefore, the merchant’s signs
and advertisements reminded customers of the continuing availability of his
services. Sometimes traders would talk to present and former customers in the
streets, or join social organizations in order to have continuing contacts with
present and potential customers. As the markets grew larger and the number of
customers increased, the importance of attracting them also grew. Increasing
reliance was placed on advertising methods of informing about the availability
of the products. These advertising methods were more economical in reaching
large numbers of consumers. While these advertising methods were useful for
informing and reminding and reminding, they could not do the whole
promotional job. They were used only to reach each consumer personally. The
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merchant still used personal persuasion once the customers were attracted to his
store. The invention of hand press increased the potentialities of advertising. By
Shakespeare’s times, posters had made their appearance, and assumed the
function of fostering demand for existing products. Another important event was
the emergence of the pamphlet as an advertising medium. The early examples of
these pamphlets disclose their sponsorship by companies want to generate
goodwill for their activities.

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 CONCEPT OF ADVERTISING
The word advertising originates from a Latin word advertise, which means to
turn to. The dictionary meaning of the term is “to give public notice or to
announce publicly”.
Advertising may be defined as the process of buying sponsor-identified media
space or time in order to promote a product or an idea. The American Marketing
Association, Chicago, has defined advertising as “any form of non-personal
presentation or promotion of ideas, goods or services, by an identified sponsor.”

What Advertisement Is?

Advertisement is a mass communicating of information intended to persuade
buyers to buy products with a view to maximizing a company’s profits.
The elements of advertising are:
1. It is a mass communication reaching a large group of consumers.
2. It makes mass production possible.
3. It is non-personal communication, for it is not delivered by an actual
person, nor is it addressed to a specific person.
4. It is a commercial communication because it is used to help assure the
advertiser of a long business life with profitable sales.
5. Advertising can be economical, for it reaches large groups of people.
This keeps the cost per message low.
6. The communication is speedy, permitting an advertiser to speak to
millions of buyers in a matter of a few hours.

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 What is Included in Advertising?
1. The information in an advertisement should benefit the buyers. It should
give them a more satisfactory expenditure of their rupees.
2. It should suggest better solutions to their problems.
3. The content of the advertisement is within the control of the advertiser,
not the medium.
4. Advertising without persuasion is ineffective. The advertisement that fails
to influence anyone, either immediately or in the future is a waste of
money.
5. The function of advertising is to increase the profitable sales volume.
That is, advertising expenses should not increase disproportionately.

Advertising includes the following forms of messages:

The messages carried in-
1. Newspapers and magazines;
2. On radio and television broadcasts;
3. Circular of all kinds, (whether distributed by mail, by person,
thorough tradesmen, or by inserts in packages);
4. Dealer help materials,
5. Window display and counter – display materials and efforts;
6. Store signs, motion pictures used for advertising,
7. Novelties bearing advertising messages and Signature of the advertiser,
8. Label stags and other literature accompanying the merchandise.

What is excluded from Advertising?

Advertising is not an exact science. An advertiser’s circumstances are never
identical with those of another; he cannot predict with accuracy what results his
future advertising efforts will produce.
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 1. Advertising is not a game, because if advertising is done properly, both
the buyer and the seller benefit from it.

2. Advertising is not a toy. Advertiser cannot afford to play with advertising.

Advertising funds come from sales revenue and must be used to increase
sales revenue.

3. Advertisements are not designed to deceive. The desire and hope for
repeat sales insure a high degree of honesty in advertising.

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The activities excluded from advertising are
1. The offering of premiums to stimulate the sale of products.
2. The use of exhibitions and demonstrations at fairs, show and conventions.
3. The use of samples and activities, involving news releases and
the activities of personal selling forces.
4. The payment of advertising allowances which are not used for
advertising.
5. The entertainment of customers.

Advertising Objectives
Each advertisement is a specific communication that must be effective, not just
for one customer, but for many target buyers. This means that specific
objectives should be set for each particular advertisement campaign.
Advertising is a form of promotion and like a promotion; the objectives of
advertising should be specific. This requires that the target consumers should be
specifically identified and that the effect which advertising is intended to have
upon the consumer should be clearly indicated. The objectives of advertising
were traditionally stated in terms of direct sales. Now, it is to view advertising
as having communication objectives that seek to inform persuade and remind
potential customers of the worth of the product. Advertising seeks to condition
the consumer so that he/she may have a favorable reaction to the promotional
message. Advertising objectives serve as guidelines for the planning and
implementation of the entire advertising programmed.

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 Concept of Retailing

Advertisement is also important in retail sector

Meaning of retail
The sale of goods to the public in relatively small quantities for use or
consumption rather than for resale.

Definition of retail
According to Philip Kotler, “Retailing includes all the activities involved in
selling goods or services to the final consumes, for personal, non-business use.
A retailer or retail store is any business enterprise wholesales volume comes
primarily from retailing.

Types of retail
1. Organized retail.
2. Unorganized retail.

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1. Organized retail
'Organized Retail refers to the set-up of any retail chain supported by a well-
defined Supply Chain which usually has a small number of middlemen when
compared to the unorganized sector.

2. Unorganized retail
Unorganized retailing refers to the traditional formats of low cost retailing for
example, the local Karana shops, owner manned general stores, paan-beedi
shops, convenience store, hand cart and pavement vendors.

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 Retail formats

The retail format is the store 'package' that the retailer presents to the shopper. A
format is defined as a type of retail.

Classification on the basis of ownership

1. Independent retailer.
2. Chain retailer.
3. Franchise
4. Leased department.
5. Consumer cooperative.

1. Independent retailer
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 An independent retailer is someone who is completely responsible for his
or her own business. The retailer owns or has bought an independent store
and has built the business from the ground up by assessing all needs of
the store, which can include staffing, marketing, merchandising, sales,
etc.

2. Chain retailer

A chain store or retail chain is a retail outlet in which several locations

share a brand, central management, and standardized business practices.
They have come to dominate the retail and dining markets, and many
service categories, in many parts of the world.

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 3. Franchise

A franchise is a type of license that a party (franchisee) acquires to allow

them to have access to a business's (the franchiser) proprietary
knowledge, processes, and trademarks in order to allow the party to sell a
product or provide a service under the business's name.

4. Leased department

Leased departments are broadly defined as operations of one company

conducted within the establishment of another company. Typical
examples may include jewelry counters or optical canters within
department stores.

5. Consumer cooperative

A consumer cooperative is a cooperative business owned by its customers

for their mutual benefit. It is a form of free enterprise that is oriented
toward service rather than pecuniary profit. Consumers' cooperatives
often take the form of retail outlets owned and operated by their
consumers.

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 Classification on the basis of merchandise
1. Convenience store.
2. Supermarket.
3. Hypermarket.
4. Specialty store.
5. Departmental store.
6. Off price retailer.
7. Factory outlets.

1. Convenience store
A small store, often franchised, offering a limited selection of food and
Household products and staying open for longer hours at a convenient
location.

2. Supermarket
A supermarket is a self-service shop offering a wide variety of food and
household products, organized into sections and shelves. It is larger and
has a wider selection than earlier grocery stores, but is smaller and more
limited in the range of merchandise than a hypermarket or big-box
market.

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 3. Hypermarket
A "hypermarket" (sometimes called a "super center" or "superstore") is a
big-box store combining a supermarket and a department store. The result
is an expansive retail facility carrying a wide range of products under one
roof, including full groceries lines and general merchandise.

4. Specialty store
Specialty stores are retail businesses that focus on specific product
categories, such as office supplies, men's or women's clothing, or carpet.
It isn't the product they sell that determines if a company is a specialty
store, but rather the breadth of their product offering.

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 5. Departmental store
Specialty stores are retail businesses that focus on specific product
categories, such as office supplies, men's or women's clothing, or carpet.
It isn't the product they sell that determines if a company is a specialty
store, but rather the breadth of their product offering.

6. Off price retailer

A store that sells items at lower prices than those typically charged by
retail businesses. Off-price stores typically purchase overstocked goods
or goods that are at the low end of a demand cycle, such as seasonal
goods, in order to lower expenses enough to sustain lower average
prices.

7. Factory outlets
An outlet store, factory outlet or factory shop is a brick and mortar or
online store in which manufacturers sell their stock directly to the public.

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 Classification on the basis of non-store retailing
1. Direct selling.
2. Mail order.
3. Tele marketing.
4. Automatic vending.

1. Direct selling
Direct selling refers to selling products directly to the consumer in a non-
retail environment.
The sale of a consumer product or service, person to person, away from a
fixed retail location.

2. Mail order
Mail order is the buying of goods or services by mail delivery. The buyer
places an order for the desired products with the merchant through some
remote method such as through a telephone call or web site. Companies
who publish and operate mail order catalogues are referred to as
cataloguers within the industry.

3. Tele marketing
Telemarketing (sometimes known as inside sales, or tele sales in the UK
and Ireland) is a method of direct marketing in which a salesperson
solicits prospective customers to buy products or services, either over the
phone or through a subsequent face to face or Web conferencing
appointment scheduled during the call.

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 4. Automatic vending
A vending machine is an automated machine that provides items such as
snacks, beverages, cigarettes and lottery tickets to consumers after money,
a credit card, or specially designed card is inserted into the machine.

Automatic vending machine.

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Classification on the basis of service retailing
Service retailing
When the emphasis is put on the intangible, the service and the relationship with
the customer. Examples of service retailing is car washing, pest control etc.
Service retailing could involve products but the customer gives more
importance to the service provided rather than the product.

Banks
Retail banking, also known as consumer banking, is the typical mass-market
banking in which individual customers use local branches of larger commercial
banks. Services offered include savings and checking accounts, mortgages,
personal loans, debit/credit cards and certificates of deposit.

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 Chapter 2: Retailing in India
India is one of the fastest growing economies in the world. It is witnessing a
change in several areas which has enabled the people to spend more and thus
gives an opportunity for retail business to flourish in India. Some of the factors
responsible are:

1. Better job opportunities and rising incomes where purchase decisions are
made by the younger generation, who are willing to spend more to buy
goods.

2. Younger people have higher aspirations and demands.

3. Shift in consumer demands to foreign brands e.g. - Sony, Panasonic,

McDonalds, KFC etc.

4. Increasing number of women professionals- With more women going out

of the house and working, the overall income of the family has increased.
Also, working women may have a greater say in buying goods for their
household.

Retail business in India is the largest private industry and is only second to
agriculture in terms of providing employment to the people. Retail sector in
India consists mainly of small, independent and owner managed shops.
In India, more and more people are entering into the retail business with the
emergence of malls,
Supermarkets, departmental stores, and are changing the traditional formats of
old stores. The entrepreneurs are not only targeting the metros but also cities
like Ahmadabad, Baroda, Chandigarh, Ludhiana and Pune etc. The cities of

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South India have adopted the practice of buying daily use products from
supermarkets and this practice is influencing other regions of the country also.

1. Free-flow
The free-flow layout philosophy is almost a rejection of the others. With free-
flow, there is no deliberate attempt to force customers through predictable traffic
patterns; wandering is encouraged. Therefore, with free-flow, there are far fewer
rules, but that doesn’t mean there aren’t any — don’t forget about the
commonalities that are based on natural human behavior.

A sample free-flow store layout below demonstrates that exterior signage,

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window display and most likely start path and power wall still remain the same.
But beyond that, it’s a very creative layout to work within.

2. Grid
We’re all familiar with the grid. Nearly every convenience store, pharmacy, and
grocery store utilize this familiar layout. Reams of merchandise are displayed on a
predictable pattern of long aisles where customers weave up and down, browsing
as they go. The grid maximizes product display and minimizes white space. This
layout is all about product, product and product.

3. Spine layout
If you think the grid may be best for your merchandise, but you have a very long,
narrow retail space, the herringbone layout is one to consider.

 Suited to stores with lots of product, but minimal space

 Warehouse-style stores open to the public may also find this layout works

4. Loop layout
The loop, or racetrack layout takes the grid’s fairly predictable traffic flows a
step further and creates a deliberate closed loop that leads customers from the
front of the store, past every bit of merchandise, and then to the check-out.
Customers are exposed to the most merchandise this way, but the path they take
is controlled.

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 Chapter 3: Objectives

The basic objectives of the study may be listed as below

1. To study the advertisement mix used by the companies.
2. To study the sales promotion strategy by retail in India.

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 Chapter 4: Research and Findings

To study the advertisement mix used by the companies

A specific combination of promotional methods used for one product or a

family of products. Elements of a promotion mix may include print or
broadcast advertising, direct marketing, personal selling, point of sale displays,
and/or merchandising.
A series of advertisements using various marketing tools that share the same
message and ideas to promote a business or event to a target audience. The
typical campaign uses different media resources including internet, newspapers,
television, radio, and print advertising.
The Promotion Mix refers to the blend of several promotional tools used by the
business to create, maintain and increase the demand for goods and services.
The fourth element of the 4 P’s of Marketing Mix is the promotion; that focuses
on creating the awareness and persuading the customers to initiate the purchase.
The several tools that facilitate the promotion objective of a firm are collectively
known as the Promotion Mix.
The Promotion Mix is the integration of Advertising, Personal Selling, Sales
Promotion, Public Relations and Direct Marketing. The marketers need to view
the following questions in order to have a balanced blend of these promotional
tools.
1. What is the most effective way to inform the customers?
2. Which marketing methods to be used?
3. To whom the promotion efforts are directed?
4. What is the marketing budget? How is it to be allocated to the promotional
tools?

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 Advertising
The advertising is any paid form of non-personal presentation and promotion
of goods and services by the identified sponsor in the exchange of a fee.
Through advertising, the marketer tries to build a pull strategy; wherein the
customer is instigated to try the product at least once. The complete
information along with the attractive graphics of the product or service can
be shown to the customers that grab their attention and influences the
purchase decision.

Personal Selling
This is one of the traditional forms of promotional tool wherein the salesman
interacts with the customer directly by visiting them. It is a face to face
interaction between the company representative and the customer with the
objective to influence the customer to purchase the product or services.

Sales Promotion
The sales promotion is the short-term incentives given to the customers to
have an increased sale for a given period. Generally, the sales promotion
schemes are floated in the market at the time of festivals or the end of the
season. Discounts, Coupons, Payback offers, Freebies, etc. are some of the sales promotion
schemes. With the sales promotion, the company focuses on the increased short-term profits, by
attracting both the existing and the new customers.

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 Public Relations
The marketers try to build a favorable image in the market by creating
relations with the general public. The companies carry out several public
relations campaigns with the objective to have a support of all the people
associated with it either directly or indirectly. The public comprises of the
customers, employees, suppliers, distributors, shareholders, government and
the society as a whole. The publicity is one of the forms of public relations
that the company may use with the intention to bring newsworthy information
to the public.
E.g. Large Corporate such as Dabber, L&T, Tata Consultancy, Bharti
Enterprises, Services, Unitech and PSU’s such as Indian Oil, GAIL, and
NTPC have joined hands with Government to clean up their surroundings,
build toilets and support the Swachh Bharat Mission.

Direct Marketing
With the intent of technology, companies reach customers directly without
any intermediaries or any paid medium. The e-mails, text messages, Fax, are
some of the tools of direct marketing. The companies can send emails and
messages to the customers if they need to be informed about the new
offerings or the sales promotion schemes.

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 Kinds of Promotion
Definition
The Promotion is a mode of communication that companies use to create
awareness among the prospective customers about the product, product line,
brand and the company with an objective to generate sales and create a brand
loyalty.

The companies having different objectives choose different kinds of

promotion. These are:

1. Informative Promotion
The primary objective of every promotional activity is to disseminate
information about the product, product line, brand, and the company. The
informative promotion is prevalent at every stage of product life cycle and is an
essential ingredient for creating the primary demand. The marketers adopt this
promotion strategy to convince customers to try a product at least once. It is

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 based on the notion that the customer will purchase the product only if he has
the adequate information about it.

2. Persuasive Promotion
The persuasive promotion is prevalent at the growth stage of a product where
the primary objective of the management is to persuade people to buy. The basic
purpose of this promotion strategy is to stimulate purchase and create a positive
image of the product in the minds of customers in order to influence their long-
term behaviors. Many firms do not adopt this kind of promotion as it involves
high-pressure selling.

3. Reminder Promotion
The reminder promotion is often adopted at the stage when a product reaches its
maturity. The purpose of such promotion is to keep the product alive in the
minds of the customers. Here, the firm emphasizes on the product’s utility,
features, brand names with the intent to make customers remind the product.
This promotion strategy acts as a “memory jogger” that enables the customers
to remember the product and influences their long-term buying behavior.

4. Buyer behavior Modifications

The effect of promotional strategies could be accessed through the
modifications in the consumer behavior. The constant personal selling and
repeated advertisements could be used to measure the effectiveness of such
promotional schemes.
Thus, the companies can choose any of the promotions depending on the nature
of the product and the pursued objectives.

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 Product Promotion

Definition
The Product Promotion means disseminating the information about the
product, product line, brand and company to the prospective buyers with the
intent to generate sales and develop a brand loyalty.
The Promotion is the fourth element of the marketing mix (Viz. Product, price,
place, promotion) which is considered as a mode of communication that
business adopts for achieving the specific set of objectives such as:
 To provide information about the availability of features and uses of the
product to the prospective buyers.
 To stimulate demand for a product by creating awareness and interest among
the customers.
 To differentiate the product from the competitor’s product by creating the
brand loyalty.
 To stabilize sales by highlighting the importance and features of the product.
Basically, there are four Kinds of Promotion that companies adopt:
1. Informative promotion
2. Persuasive promotion
3. Reminder promotion
4. Buyer Behavior Modifications

The basic purpose of promotion is to persuade customers to buy and primarily

includes three types of sales activity: Advertising, Personal Selling, and Sales
Promotion. The importance of product promotion lies in the fact that no firm
can survive in the market without reaching the customers effectively and could
not compete with other market players if no unique benefits are offered to the
customers.
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 Marketing Communication

Definition

The Marketing Communication refers to the means adopted by the companies

to convey messages about the products and the brands they sell, either directly
or indirectly to the customers with the intention to persuade them to purchase.

In other words, the different medium that company adopts to exchange the
information about their goods and services to the customers is termed as
Marketing Communication.

The marketer uses the tools of marketing communication to create the brand
awareness among the potential customers, which means some image of the
brand gets created in their minds that help them to make the purchase decision.

Marketing communication offer solutions to the following questions:

 Why shall the product be used?
 How can the product be used?
 Who can use the product?
 Where can the product are used?
 When can the product be used?

Marketing communication includes Advertising, Sales Promotion, Events and

Experiences (sponsorship), Public Relations and Publicity, Direct Marketing,
Interactive Marketing, Word-of-Mouth Marketing, Personal Selling. These tools
of communication are collectively called as Marketing Communication Mix.

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1. Advertising
It is an indirect, paid method used by the firms to inform the customers about
their goods and services via television, radio, print media, online websites etc.
Advertising is one of the most widely used methods of communication mix
wherein the complete information about the firm’s product and services can be
communicated easily with the huge target audience coverage.

2. Sales Promotion
The sales promotion includes the several short-term incentives to persuade the
customers to initiate the purchase of the goods and services. This promotion
technique not only helps in retaining the existing customers but also attract the
new ones with the additional benefits. Rebates, discounts, paybacks, Buy- one –
get- one free scheme, coupons, etc. are some of the sales promotion tools.
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3. Events and Experiences
Several companies sponsor the events such as sports, entertainment, non-profits
or community events with the intention to reinforce their brand in the minds of
the customers and create a long-term association with them.

4. Public Relations and Publicity

The companies perform several social activities with a view to creating their
positive brand image in the market. The activities that companies are
undertaking such as, constructing the public conveniences, donating some
portion of their purchase to the child education, organizing the blood donation
camps, planting trees, etc. are some of the common moves of enhancing the
Public Relations.

5. Direct Marketing
With the intent of technology, the companies make use of emails, fax, and
mobile phones, to communicate directly with the prospective customers without
involving any third party in between.

6. Interactive Marketing
Interactive Marketing has recently gained popularity as a marketing
communication tool, wherein the customers can interact with the firms online
and can get their queries resolved online.

Amazon is one of the best examples of interactive marketing wherein the

customers make their choice and can see what they have chosen or ordered in
the recent past. Also, several websites offer the platform to the customers
wherein they ask questions and get the answers online such as answer.com.

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7. Word-of- Mouth Marketing

It is one of the most widely practiced methods of communication tool wherein

customer share their experiences with their peers and friends about the goods
and services they bought recently. This method is very crucial for the firms
because the image of the brand depends on what customer feels about the brand
and what message he conveys to others.

8. Personal Selling
This is the traditional method of marketing communication where in the
salesmen approach the prospective customers directly and inform them about
the goods and services they are dealing in. It is considered as one of the most
reliable modes of communication because it is done directly either orally, i.e.,
face to face or in writing via emails or text message.

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 Public Relations
Definition
The Public Relations or PR is a practice of maintaining and shaping the image
of an individual or an organization to the public in such a way that a favorable
point of view is developed for the concerned entity.

In other words, an activity designed to help an organization and its public, such
as customers, employees, government, suppliers, etc. who are directly or
indirectly associated with the firm, adapt mutually to each other.

The significance of public relations can be traced in marketing. It helps the

marketing management to influence the non-customer groups. By doing so, the
companies keep this group of customers updated about the new products and
formulation the company has introduced into a market through public relations
with a hope that someday they will use its product.

The PR also helps in maintaining the cordial relations with the dealers and sales
people who are the intermediaries between the organization and the ultimate
consumer. Dealer conferences, gifts, in-house publications, display contents, etc.
are some of the PR activities performed to gain the dealer support and
cooperation. Similar kind of PR activities is carried out for the sales force to win
their confidence in the organization.

One of the ultimate purposes of public relations is to influence the purchase

decision of the direct consumers and therefore, promotional activities like
community relations, media blitz, event management, corporate identity
activities and programmers, etc. are carried out to shape the image of the
organization.
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The PR helps in maintaining relations not only outside the organization but also
within the firm, i.e. between the employees and the organization. The employees
are the people who work for the organization and sell goods and services on its
behalf. So, it is essential for every firm to maintain healthy relationships with its
employees through a continuous motivation and employee development
programmers.

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 Factors Affecting Promotion Mix

Definition

The Promotion Mix is the blend of several promotional activities (Advertising,

personal selling, sales promotion, public relations, direct marketing) used by
business to create, maintain and increase the demand for a product.

The management must consider the following factors in determining the

promotion mix, these are:

1. Nature of Product
The different type of product requires different promotional tools. Such as, for
the industrial products Viz. Machinery, equipment or land personal selling is
more appropriate as a great deal of pre-sale and after- sale services is required to
sell and install such products. On the other hand, advertising and publicity are
more suitable for the consumer goods, especially the convenience goods.
2. Nature of Market
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 The number and location of customers greatly influence the promotion mix.
In case the group of potential customers is small and is concentrated in a
particular locality, then personal selling is more likely to be effective.
Whereas, if the customer base is large and widespread, then the blend of
advertising, personal selling, and the sales promotion is required to sell the
product.
Also, the type of customers influences the managerial decisions of the
promotion mix. The type of promotion for the urban, educated and institutional
customers would be different as compared to the rural, illiterate and household
customers.

3. Stage of Product’s Life

The promotion mix changes as the product moves along its life cycle. During
the introduction stage, the principal objective of the promotion is to create the
primary demand by emphasizing the product’s features, utility, etc. therefore,
the blend of advertising and publicity is required. As the product reaches its
maturity stage the advertising and personal selling is required to maintain the
demand of the customers.
And finally, during the decline stage the expenses on other promotional
activities are cut, and more emphasis is laid on sales promotion with the intent
to push up the declining sales.

4. Availability of Funds
The marketing budget also decides the promotion mix. If the funds available
for the promotion are large, then the blend of promotional tools can be used,
whereas in the case the funds are limited then the management must choose the
promotional tool wisely.

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5. Nature of Technique
Each element of the promotional mix has unique features that significantly
influence the purpose of promotion. Such as, the advertising is an impersonal
mode of communication that reaches a large group of customers. Its expression
can be amplified with the use of colors and sound that helps in developing the
long-lasting brand image in the minds of the customer.
The Personal selling involves face to face interaction that helps in developing
cordial and personal relations with the customers. Likewise, the sales promotion
is short-term incentives given to the customers with the intent to boost sales for
a shorter period of time.

6. Promotional Strategy
The promotion mix largely depends on the company’s promotional strategy, i.e.
whether it accepts the Push Strategy or a Pull Strategy. In a Push strategy, the
manufacturer forces the dealers to carry the product and promote it to the
customer, i.e. convince the potential buyers to buy it. Here, personal selling and
trade promotion are likely to be more effective.
In the case of a Pull Strategy, the consumers ask the dealers to carry the product,
I.e. customers themselves purchase the product. Here, advertising and consumer
promotion are more appropriate.

7. Readiness of Buyer
Different promotional tools are required at different stages of buyer
readiness. Such as, at the comprehension stage, the blend of advertising and
personal selling plays a vital role. Whereas at the conviction stage, personal
selling is more effective. At the time of sales closure, the blend of sales
promotion and personal selling is likely to be more effective. Hence, the
advertising and publicity are more effective at the early stages of buying
decision process while the sales promotion and personal selling are more
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effective during the later stages.

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 Promotional Planning Process
Definition
The Promotional Planning is a process of optimizing the utilization of
marketing tools, strategies, resources to promote a product and service with
the intent to generate demand and meet the set objectives.

1. Problem Definition
First of all, the management must identify the need for a promotion and
should take into consideration the following points:
 Which Product/Service is to be promoted?
 Who is the target audience?
 How much budget is allocated for the promotional activities?
 What message is to be conveyed to the prospective buyers?
 What marketing strategies are to be adopted?
 Which analytical tool is to be used?

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Establishment of detailed Objectives
The objectives are the end goals towards which all the efforts are directed. Once
the target audience is identified the management must set the objectives of the
promotion. The objectives could be to encourage the non-users to use the
product, increase the usage of the existing customers, or enter into a new market
segment with a modified product line. Similarly, the objectives for the
intermediaries could be to increase the off-season sales or reduce the effect of
competitor’s promotional schemes. Similarly, the objectives for the
intermediaries could be to increase the off-season sales or reduce the effect of
competitor’s promotional schemes.

Design of Promotion Mix

Once the objectives are set, these provide the basis for selecting an appropriate
promotional tool (advertising, personal selling, sales promotion, etc.). The
management must carefully analyze all the costs and effects associated with
each marketing element before making the final choice.
The objectives and the target market should be kept in mind while designing the
promotion mix. As, the promotional tools for educated, urban and institutional
buyers would be different as compared to the illiterate, rural and household
buyers.

Planning Sales Promotion Programmed

This is the most crucial step of promotional planning that requires the
management to decide the time duration of the promotion i.e. for how long the
promotional tool is to be used. While deciding on the sales promotion plan the
overall marketing budget along with the eligibility rules and size of incentives
should be taken into the consideration.

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Pre-testing
Once the Sales Promotion Plan is prepared, it is tested in few selected market
segments to identify the potentials or serious problems before its full launch.
Here the management scrutinizes the cost effectiveness of the promotional plan,
problems of ambiguity customer response rate, etc.

Implementation
After the promotional plan is tested in the few selected areas, it is ready to be
launched in the complete market. Here the management must take care of two
important time factors, Viz. Lead Time and Sell-in Time.
The lead time is the time necessary to bring the plan to the point where the
incentives are made available to the public while; the sell-in time is the time
starting from the date of the release until the time 90-95% of the incentives are
received by the potential customers.

Monitoring and Evaluation

After implementation, the performance of the promotional plan is checked
against the set standards and objectives and the corrective actions are taken
accordingly. In case the objectives are defined in quantitative terms then the
measurement of the actual results would be quite easy.

During the evaluation, the management must take care of all the factors that are
beyond control such as economic recession, seasonal variations, natural
calamity, etc. that might influence the buying decision of the customers.

Thus, the promotional planning is an integral part of marketing wherein the

management decides on a complete promotion plan which includes all the
marketing strategies to be adopted during the life cycle of the product, i.e. from
the introductory stage till its decline stage.
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 Promotional Pricing

Definition
The Promotional Pricing is a sales promotion technique, wherein the firm
reduces the price of a product drastically, but for a short period.

Companies adopt several promotional pricing schemes; some of them are

listed below

1. Special-Event Pricing
Companies offer discounts and rebates on festivals, during the off-seasons with
the intention to pull as many customers as possible.

2. Cash Rebates
The consumer goods companies’ viz. Automobile sector, electronics industry,
cellular industry, etc. offers the cash rebates on their items if purchased in a
particular time period.

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3. Loss-Leader Pricing
Often the big retailers or supermarkets reduce the price of a well-known brand
with the intention to have additional store traffic. Through this strategy, the
retailers try to compensate their margin loss from the additional sales achieved
from additional customers. Generally, this type of strategy is opposed by the
manufacturer because this can dilute the image of his brand; that is being sold at
the list price by the retailer.

4. Low-interest financing
Nowadays, especially the cellular companies are offering an easy EMI scheme
with less rate of interest, so as to boost the sale of their mobile sets.

5. Warranties and service contracts

The companies offer the extended warranties and free services of the product to
the customers.

6. Psychological Discounting
This type of promotional pricing is very much visible these days. Under this
strategy, the companies artificially set the high price of the product and then
offer it at substantial savings, such as an item was of RS 359, but now it is
available at just Rs 259.

The objective of this strategy is to boost the sales of a firm and encourage those
who are price conscious and are hesitant to try the new products.

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 CLASSIFICATION AND TYPES OF ADVERTISING
1. Product – Related Advertising.

A. Pioneering Advertising.

B. Competitive Advertising.

C. Retentive Advertising.

2. Public Service Advertising.

3. Functional Classification.

A. Advertising Based on Demand Influence Level.

B. Primary Demand (Stimulation).

C. Selective Demand (Stimulation).

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1. Product – Related Advertising
It is concerned with conveying information about and selling a product or
service. Product advertising is of three types.
A. Pioneering Advertising
B. Competitive Advertising
C. Retentive Advertising

A. Pioneering Advertising
This type of advertising is used in the introductory stages in the life cycle of
a product. It is concerned with developing a “primary” demand. It conveys
information about and selling a product category rather than a specific brand.

B. Competitive Advertising
It is useful when the product has reached the market-growth and especially
the market-maturity stage. It stimulates “selective” demand. It seeks to sell a
specific brand rather than a general product category. It is of two types:
A. Direct Type: It seeks to stimulate immediate buying action.

B. Indirect Type: It attempts to pinpoint the virtues of the product in the

expectation that the consumer’s action will be affected by it when he is ready
to buy. Example: Airline advertising.

C. Retentive Advertising
This may be useful when the product has achieved a favorable status in the
market – that is, maturity or declining stage. Generally, in such times, the
advertiser wants to keep his product’s name before the public. A much softer
selling approach is used, or only the name may be mentioned in “reminder”
type advertising.
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2. Public Service Advertising
This is directed at the social welfare of a community or a nation. The
effectiveness of product service advertisements may be measured in terms of
the goodwill they generate in favor of the sponsoring organization.
Advertisements on not mixing drinking and driving are a good example of
public service advertising. In this type of advertising, the objective is to put
across a message intended to change attitudes or behavior and benefit the
public at large.

3. Functional Classification
These are three types
1. Advertising Based on Demand Influence Level.
2. Primary Demand (Stimulation).
3. Selective Demand (Stimulation).

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Difference between Advertising and Sales Promotions

One of the main differences between advertising and sales promotions is that
advertising is a permanent strategy that involves marketing and sales, whereas
sales promotions have a limited time frame. Another key difference is that
advertising appeals to the wants and needs of a target audience and seeks to
persuade prospective customers that your company is worthy of their attention.
The end goal with advertising isn’t always to make a sale; in some instances,
it’s to set the stage for a sale in the future by introducing prospects to your
Company’s products and services. In contrast, sales promotions are strictly
about moving products and services, and are designed solely to appeal to the
financial consideration of a prospect.
Another difference between advertising and sales promotions is that advertising
can involve a number of indirect methods to create the desired effect in a target
audience, whereas sales promotions are not subtle or meant to be hidden in any
way. For example, a skateboard company that's involved in advertising might
talk about the type of material used to make the board, the rotational capabilities
of the board’s wheels, and the different types of jumps that skaters can attempt
with the board. However, if the skateboard company was involved in sales
promotions, it would focus on the price of the board, and the discounts
available, if consumers buy more than one board.
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To study the sales promotion strategy by retail in India
Purchasing and dealer effectiveness such as displays, demonstration and various
non- recurrent selling efforts not in the ordinary routine.” According to A.H.R.
Deles: “Sales promotion means any steps that are taken for the purpose of
obtaining an increasing sale. Often this term refers specially to selling efforts
that are designed to supplement personal selling and advertising and by co-
ordination helps them to become more effective.”
In the words of Roger A. Strong, “Sales promotion includes all forms of
sponsored communication apart from activities associated with personal selling.
It, thus includes trade shows and exhibits, combining, sampling, premiums,
trade, allowances, sales and dealer incentives, set of packs, consumer education
and demonstration activities, rebates, bonus, packs, point of purchase material
and direct mail.”

Importance of Sales Promotion

The importance of sales promotion has increased tremendously in the modern
times. Laths of rupees are being spent on sales promotional activities to attract
the consumers in our country and also in other countries of the world.
Some large companies have also begun to appoint sales promotion managers to
handle miscellaneous promotional tools. All these facts show that the
importance of sales promotion activities is increasing at a faster rate.

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Sales Promotion: Elements, Methods and Advantages of Sales
Promotion

Elements of a Sales Promotion

Sales promotion: -Sales promotion is one of the elements of the
promotional mix. (The primary elements in the promotional mix are
advertising, personal selling, direct marketing and publicity/public
relations).

Philips Kotler has classified sales promotional activities into three kinds:
1. Consumer promotion.
2. Trade or dealer promotion.
3. Sales force promotion.

1. Consumer Promotion
Sales promotion directed towards consumers may be done either to increase the
use of the product among the existing consumers or to attract the new customers
or to retaliate against the competitor’s sales activities.

Read this article to learn about the techniques/methods and advantages of

sales promotion
(a) Samples
(b) Coupons
(c) Contests
(d) Demonstrations
(e) Premiums or bonus offers
(f) Price-off

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(g) Money refund

2. Trade or Dealer Promotions

These are generally directed towards the dealers with a view to securing their
patronage in preference to other products.

There are also a number of trade promotional activities which are listed
below
(a) Cash and trade discounts
(b) Display and advertising allowance,
(c) Premiums,
(d) Bonus,
(e) Counter discount, allowances
(f) Free goods,
(g) Dealer’s contests,
(h) Subsidized advertising,
(i) Buy-back allowance and,
(J) Gifts and novelties.

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3. Sales Force Promotions
Personal selling is by far the most important method of sales promotion. Sales
force promotion is highly essential to make personal selling effective and more
impressive.

The techniques employed in the sales force promotion are the following
(a) Bonus,
(b) Commission,
(c) Sales-force contests,
(d) Meetings, conventions and conferences of salesmen and
(e) Quota incentives.

Advantages of Sales Promotion

The various advantages of sales promotion are as follows:

1. Large Scale Production
Sales promotion techniques generally aim at demand created for the company’s
products. Increased volume of sales results in large scale production which
ultimately lowers the unit cost.

2. Effective Sales Support

Sales promotion policies supplement the efforts of personal selling and
advertising. These measures make the efforts of the salesmen more productive.
They minimize the work to be done by the salesmen, avoid wastage in time and
efforts.

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3. Immediate Returns
Sales promotion devices bring quick and immediate results than other methods
like personal selling and advertising. In fact, the impact of sales promotion can
be felt more quickly than advertising.

4. Effective Control
The management can exercise effective control over the methods used in the
sales promotion programmers. This ensures lower promotional costs and
quick and better returns. The management is also in a position to evaluate the
impact of the programmed with reference to the cost factor.

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 Chapter 5: Conclusion and Suggestions
Conclusion
The purpose of this project has been determined to obtain the “Study on
advertising and sales promotion strategy used by retail store in India.” Sale
promotion refers to non-recurring and short-term sales term activities other than
advertising and personal selling brand proliferation, trade pressures growing
competition recession, Quick returns competent staff and attitudinal change are
the causes of Popularity of sales promotion sales promotion method are used at
the level of declares, consumers and salesman. Most of the customers buying
decision are depend on the quality and lowest price of the products.
In advertisement and sells promotion used print media and electronic media.
Advertising on walls are eye catching and attractive. Through advertising it informs
the customers about new brand and flavors. Advertisement plays an important role
in achieving growth in sales of product and services. Effective advertising refers to
informing the public about the right product at the right time through the right
medium. The right media selection is the crux of the success of the entire advertising
campaign. The medium that could become the biggest thing in advertising since TV-
the cell phone. With more than two billion users around the world, the potential
reach alone has advertisers drooling. In USA, the AD Council's advertising created
by agencies for free and placed in media for little or no change, is known as pro
bono advertising in Latin, pro bono means "for the public good. “Overall analysis
opinion goes against the version that promotion schemes launched by the various
companies have an impact on the customer's buying behavior. More than three-fifth
respondents like/very much like to go through deeply into the advertisements while
reading newspapers/magazines and also while seeing television. One significant
analysis has emerged that source through advertisements in electronic media plays a
guiding role for the rural and urban respondents both.

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 Suggestion
On the basis of this study, certain recommendations regarding advertisement
sensitivity in the promotion of cellular services are worked out. These have the
backing of the opinions of the sampled respondents. Sales promotion is one of
the elements of the promotional mix. Sales promotion uses both media and non-
media marketing communications for a pre-determined, limited time to increase
consumer demand, stimulate market demand or improve product availability.
Examples include contests, coupons, freebies, and loss leaders, point of
purchase displays, premiums, prizes, product samples, and rebates.
These are techniques that involve making a product or service more accessible or
affordable, or simply adding value.
1. Has a sale – You can offer a holiday or other discount to either the general
public or your best customers. Just be careful not to offer too many; your
customers might begin to wait for a sale instead of buying things at regular
price.
2. Hold a contest – Offer to automatically enter your customers into a contest
when they make a purchase.
3. Give something away for free – Hand out samples of your product,
promotional products branded with your logo, or other gifts at a key location.
This lets people experience what you have to offer first-hand at a keylocation.
4. Frequent shopper cards – Offer customers a discount or free product after
they’ve made a specific number of purchases.
5. Give discounts to targeted groups – This could be a specific club or
association, or simply a group of people who have attended a specific event.
6. Offer a trade-in – Reward customer loyalty by encouraging them to trade in
their old product for a discount on something new.
7. Point-of-sale displays – Present you’re in-store products in an unusual way.
Stack them in a huge pyramid, or use oddly shaped signs. If you have a window

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out front, create a wacky display using mannequins or other fun objects.

58
Bibliography

Websites/Internet

https://www.slideshare.net/yogipunjabi1/advertising-and-sales-promotion

https://www.slideshare.net/rahulmandal338/advertising-and-sales-promotion-
18797984

https://en.wikipedia.org/wiki/Sales_promotion

http://cbse.nic.in/publications/vocational/Retail/Retail%20Operations%20-XII.pdf

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