PRINCIPLES OF MARKETING

UNIT 4
PLACE & PROMOTION

BY
Ms.S.KEERTHANA
DEPARTMENT OF COMMERCE
ASSISTANT PROFESSOR
UNIT 4
Promotions and Distributions
Elements of promotion – Advertising – Objectives - Kinds of Advertising Media - Traditional vs
Digital Media - Sales Promotion – types of sales promotion – Personal Selling Qualities needed
for a personal seller – Channels of Distribution for Consumer Goods- Channel Members –
Channels of Distribution for Industrial Goods.

Elements of Promotion
1. Advertising
Advertising is a paid, non-personal form of communication that aims to reach a large audience.
It includes traditional media such as television, radio, newspapers, and billboards, as well as
digital platforms like social media, Google Ads, and YouTube.
Impact:
●​ Creates strong brand awareness and recall.
●​ Influences consumer perception and purchasing decisions.
●​ Can be used for both short-term campaigns and long-term brand positioning.
Cost-Effectiveness:
●​ Traditional advertising (TV, radio, print) can be expensive, especially for prime-time slots.
●​ Digital advertising offers cost-effective solutions with targeted reach and measurable
results.
Relevance in Digital Marketing:
●​ Programmatic advertising enables real-time bidding for digital ad space.
●​ Social media platforms offer highly targeted ad options.
●​ Video advertising on YouTube and OTT platforms is growing in popularity.
Example:
Coca-Cola’s “Share a Coke” campaign utilized both traditional and digital advertising, featuring
personalized bottles in TV commercials and social media promotions.

2. Sales Promotion
Sales promotions are short-term incentives designed to boost immediate sales and attract new
customers. These include discounts, coupons, contests, free samples, and cashback offers.
Impact:
●​ Drives quick purchase decisions and increases short-term sales.
●​ Encourages brand switching and trial of new products.
●​ Works well in competitive markets.
Cost-Effectiveness:
●​ Can reduce profit margins if overused.
●​ Offers high returns when targeted effectively.
Relevance in Digital Marketing:
●​ E-commerce platforms frequently use flash sales and limited-time discounts.
●​ Email marketing campaigns often include exclusive discount codes.
●​ Brands use gamification (e.g., spin-the-wheel discounts) to engage customers.
Example:
Amazon’s Prime Day offers exclusive discounts to subscribers, significantly boosting sales and
customer engagement.
3. Public Relations (PR)
Public relations focuses on building and maintaining a positive image for a brand. PR efforts
include press releases, media coverage, sponsorships, and corporate social responsibility
(CSR) initiatives.
Impact:
●​ Enhances credibility and trust among stakeholders.
●​ Helps in managing brand reputation and crisis communication.
●​ Strengthens relationships with the media and the public.
Cost-Effectiveness:
●​ Earned media (unpaid coverage) is more cost-effective than paid advertising.
●​ Requires investment in PR agencies or in-house teams.
Relevance in Digital Marketing:
●​ Online press releases and media blogs generate organic brand exposure.
●​ Social media allows direct engagement with customers and crisis management.
●​ Influencer collaborations serve as modern PR efforts.
Example:
Nike’s “Equality” campaign used PR strategies to emphasize the brand’s commitment to social
justice, gaining widespread media coverage and consumer support.
4. Personal Selling
Personal selling involves direct interaction between a salesperson and a potential customer. It is
most effective for high-value or complex products that require detailed explanation.
Impact:
●​ Builds strong customer relationships and trust.
●​ Allows for personalized solutions and addressing objections.
●​ High conversion rates compared to mass marketing techniques.
Cost-Effectiveness:
●​ Expensive due to salesperson salaries, training, and commissions.
●​ Best suited for industries like real estate, B2B sales, and luxury goods.
Relevance in Digital Marketing:
●​ Video consultations (Zoom, Google Meet) replace face-to-face meetings.
●​ AI-powered chatbots assist in preliminary sales conversations.
●​ Webinars and live demos act as digital personal selling tools.
Example:
Tesla sells its cars directly to customers without dealerships, using personalized test drives and
online consultations.
5. Direct Marketing
Direct marketing involves communicating directly with consumers through channels like email,
SMS, direct mail, and telemarketing.
Impact:
●​ High response rates due to personalized communication.
●​ Encourages immediate action (purchasing, subscribing, etc.).
●​ Allows businesses to track and measure campaign performance.
Cost-Effectiveness:
●​ Email marketing is one of the most cost-effective digital marketing tools.
●​ Telemarketing and direct mail have higher costs but are effective for targeted outreach.
Relevance in Digital Marketing:
●​ Personalized email campaigns with exclusive offers improve customer retention.
●​ SMS and WhatsApp marketing provide direct and instant engagement.
●​ Retargeting ads reach customers who previously interacted with a brand.
Example:
Netflix uses personalized email recommendations to encourage users to continue streaming
and retain subscriptions.
6. Digital & Social Media Marketing
As a modern addition to the promotion mix, digital and social media marketing leverage online
platforms to engage and convert customers.
Impact:
●​ Provides high engagement, interactivity, and brand visibility.
●​ Allows real-time customer interaction and feedback.
●​ Highly measurable and data-driven.
Cost-Effectiveness:
More affordable than traditional advertising with scalable options.
Organic social media marketing requires time but little financial investment.
Relevance in Digital Marketing:
●​ Social media ads (Facebook, Instagram, LinkedIn) drive targeted reach.
●​ Influencer marketing builds authenticity and trust.
●​ Content marketing (blogs, videos, infographics) attracts organic traffic.
Example:
Red Bull’s social media marketing focuses on extreme sports and adventure content, creating
an aspirational brand image.

Advertising
Advertising is a paid, non-personal form of communication used by businesses and
organizations to promote products, services, or ideas to a broad audience. It is delivered
through various media channels such as television, radio, newspapers, magazines, social
media, websites, and billboards.

Objectives/ Features / Advantages of Advertising

1. Brand Awareness
Brand awareness refers to how familiar consumers are with a brand and its offerings.
Advertising helps introduce a product to new customers and reinforce recognition among
existing ones. Strong brand awareness ensures that customers think of a brand when making a
purchase. For example, Apple’s product launch advertisements generate worldwide attention
and anticipation.
2. Informing Consumers
Informative advertising provides details about a product’s features, benefits, pricing, and usage.
It is crucial for new product launches and educating customers on how a product meets their
needs. Clear and factual advertising helps consumers make informed purchase decisions.
Pharmaceutical ads, for example, inform users about new medicines and their effectiveness.
3. Persuading and Influencing Purchase Decisions
Persuasive advertising aims to convince consumers to choose a specific brand over
competitors. It uses emotional appeals, celebrity endorsements, and unique selling propositions
(USPs) to create a compelling message. This type of advertising is commonly seen in
competitive markets. Nike’s “Just Do It” campaign encourages customers to associate the brand
with determination and success.
4. Increasing Sales and Market Share
A key objective of advertising is to boost product sales and expand a brand’s market share.
Effective campaigns attract more customers, leading to higher revenue and business growth.
Limited-time offers, discounts, and promotional ads encourage immediate purchases. Black
Friday sales advertisements, for instance, significantly increase retail sales during the shopping
season.
5. Reinforcing Brand Loyalty
Advertising helps maintain a strong connection between brands and their existing customers. By
consistently communicating a brand’s values and quality, companies strengthen consumer trust
and loyalty. Repeat exposure to positive brand messaging ensures long-term customer
retention. Coca-Cola’s continuous brand advertising keeps it relevant across generations.
6. Differentiating from Competitors
Advertising highlights a brand’s unique aspects, setting it apart from competitors. A strong
differentiation strategy helps businesses establish a distinct market presence. Unique product
features, superior quality, or better pricing are commonly promoted. Tesla, for example,
positions itself as a leader in eco-friendly electric vehicles through innovative advertising.
7. Creating a Positive Brand Image
A positive brand image fosters trust, credibility, and goodwill among consumers. Companies use
advertising to showcase their social responsibility, ethics, and customer-centric values.
Emotional and purpose-driven campaigns leave a lasting impact on audiences. Dove’s “Real
Beauty” campaign promotes body positivity, enhancing its brand reputation.
8. Reminding and Retargeting Customers
Reminder advertising ensures that customers keep a brand in mind for future purchases. Digital
marketing enables brands to retarget consumers who have previously interacted with their
products. These ads appear on websites and social media, reinforcing the message. Amazon’s
retargeting ads remind shoppers of items they viewed but didn’t purchase, encouraging them to
complete the transaction.

Kinds of Advertising Media

Advertising media refers to the channels and platforms used by businesses to communicate
their promotional messages to consumers. The choice of advertising media depends on factors
like target audience, budget, product type, and campaign objectives. There are various types of
advertising media, categorized into traditional and digital formats, each with unique advantages
and reach.
1. Print Media
Print media includes newspapers, magazines, brochures, and flyers that convey promotional
messages in a tangible format. It is one of the oldest advertising methods and is effective for
targeting specific demographics. Businesses use newspapers for mass reach and magazines
for niche audiences. Print media remains relevant for local promotions and luxury brand
advertising.
2. Broadcast Media
Broadcast media includes television and radio advertisements that reach a wide audience. TV
ads combine visuals and audio to create impactful storytelling, making them effective for brand
awareness. Radio advertising, though audio-only, is cost-effective and accessible in regions with
high listenership. Both mediums allow businesses to reach consumers through entertainment
and news content.
3. Outdoor Advertising (OOH Media)
Outdoor advertising, or Out-of-Home (OOH) media, includes billboards, transit ads, banners,
and posters placed in high-traffic areas. It is effective for brand visibility and reaching
commuters in public spaces. Digital billboards offer dynamic and eye-catching content,
enhancing engagement. OOH media is widely used by businesses for location-based
promotions.
4. Direct Mail Advertising
Direct mail advertising involves sending promotional materials like catalogs, postcards, and
brochures to potential customers via postal services. It allows businesses to personalize
marketing messages and target specific audiences. Though traditional, direct mail campaigns
still deliver high engagement rates when combined with digital tracking techniques. Businesses
often use it for loyalty programs and exclusive offers.
5. Digital Advertising
Digital advertising uses online platforms such as websites, social media, and search engines to
promote brands. It includes display ads, pay-per-click (PPC) advertising, and content marketing.
Digital ads allow precise targeting, real-time analytics, and cost-effective campaigns.
Businesses benefit from platforms like Google Ads and social media promotions to engage a
tech-savvy audience.
6. Social Media Advertising
Social media advertising leverages platforms like Facebook, Instagram, Twitter, LinkedIn, and
TikTok to promote products and services. It enables brands to interact with users, build
communities, and run highly targeted campaigns. Sponsored posts, influencer collaborations,
and video ads are common formats. Social media ads offer measurable results and greater
engagement compared to traditional methods.
7. Mobile Advertising
Mobile advertising involves delivering ads through smartphones, apps, and SMS marketing. It
includes in-app ads, push notifications, and mobile search advertising. With the growing use of
mobile devices, this medium ensures direct reach to consumers. Brands optimize
mobile-friendly ads to engage users effectively.
8. Email Advertising
Email advertising involves sending promotional content directly to consumers’ inboxes. It
includes newsletters, promotional offers, and personalized recommendations. Email marketing
is cost-effective and helps businesses maintain customer relationships. Automated and
segmented email campaigns enhance engagement and conversions.
9. Cinema Advertising
Cinema advertising displays commercials before movie screenings, offering a captive audience
experience. It is particularly effective for engaging urban audiences in a distraction-free
environment. Brands use cinema ads to target specific demographics based on movie genres.
This medium benefits from high recall value due to the immersive experience.
10. Product Placement (Embedded Advertising)
Product placement involves integrating branded products within entertainment content like
movies, TV shows, and video games. Instead of direct advertisements, brands subtly feature
their products in scenes to influence consumer perception. It enhances brand association and
appears more natural to audiences. An example is Coca-Cola appearing in popular films to
reinforce brand recognition.

Traditional Media vs. Digital Media

Advertising media has evolved over time, shifting from traditional channels to digital platforms.
While traditional media includes newspapers, TV, radio, and billboards, digital media consists of
online platforms like social media, search engines, and mobile applications. Both types serve
different purposes, and businesses must choose the right mix based on their target audience,
budget, and campaign goals.
1. Definition & Characteristics
Traditional Media: Refers to conventional advertising platforms such as TV, radio, newspapers,
and outdoor billboards. These media have been in use for decades and primarily involve
one-way communication.
Digital Media: Includes online advertising methods such as social media ads, Google Ads, email
marketing, and mobile marketing. Digital media is interactive, data-driven, and allows direct
customer engagement.
2. Reach & Audience Targeting
Traditional Media: Reaches a broad audience through mass communication. TV and radio ads,
for example, target viewers and listeners without precise demographic segmentation.
Newspapers cater to general readership, while billboards attract passersby.
Digital Media: Offers precise audience targeting through data-driven insights. Advertisers can
segment users based on age, location, interests, and online behavior. Social media platforms
allow brands to target niche markets effectively.
3. Cost & Budget Considerations
Traditional Media: Advertising costs are typically higher due to production and distribution
expenses. TV and newspaper ads require significant investment, making them less flexible for
small businesses.
Digital Media: More cost-effective as businesses can run pay-per-click (PPC) campaigns or
low-budget social media ads. Digital platforms also provide real-time budget adjustments and
performance tracking.
4. Engagement & Interaction
Traditional Media: One-way communication, where brands deliver messages without direct
audience interaction. Consumers receive the information but cannot respond instantly.
Digital Media: Two-way interaction, allowing customers to engage through comments, likes,
shares, and direct messages. Brands can respond to feedback, improving customer
relationships.
5. Measurability & Performance Tracking
Traditional Media: Difficult to measure campaign performance. Businesses rely on estimates like
TV viewership ratings or newspaper circulation numbers, which lack precise accuracy.
Digital Media: Highly measurable through analytics tools like Google Analytics, Facebook
Insights, and email tracking. Marketers can track impressions, clicks, conversions, and ROI in
real time.
6. Flexibility & Content Updates
Traditional Media: Less flexible; once a TV commercial, radio spot, or newspaper ad is
published, it cannot be modified easily. Businesses must invest in new ad slots for changes.
Digital Media: Highly flexible; advertisers can modify or pause campaigns anytime. Social media
and website content can be updated instantly to reflect current trends.
7. Longevity & Shelf Life
Traditional Media: Offers long-lasting impact; TV commercials and print ads stay in the
consumer’s memory over time. Billboards create consistent visibility in public spaces.
Digital Media: Often short-lived; social media posts and digital ads have a shorter lifespan
unless they go viral or are promoted continuously.

Sales Promotion – Types of Sales Promotion

Sales promotion is a marketing strategy that involves short-term incentives to boost sales,
attract customers, and enhance brand engagement. It is used to stimulate demand, encourage
trial purchases, and retain customers. Sales promotions can be targeted at consumers,
retailers, or distributors and are commonly used in competitive markets to influence buying
decisions.

Types of Sales Promotion

1. Consumer Sales Promotion
Consumer-oriented sales promotions are designed to attract and influence individual buyers.
These promotions encourage immediate purchases and increase brand loyalty.
●​ Discounts & Price Promotions – Temporary price reductions to encourage purchases.
Example: "50% off on all products."
●​ Coupons & Vouchers – Customers receive discounts through paper, digital, or
app-based coupons. Example: “Get $10 off your next purchase.”
●​ Buy One, Get One Free (BOGO) – Customers receive an extra product for free with their
purchase. Example: “Buy 1 Shampoo, Get 1 Free.”
●​ Loyalty Programs & Reward Points – Customers earn points for purchases that can be
redeemed later. Example: Airline frequent flyer programs.
●​ Free Samples & Product Trials – Brands offer free samples to introduce new products.
Example: Beauty brands providing mini versions of skincare products.
2. Trade Sales Promotion
Trade promotions are incentives given to retailers and wholesalers to encourage them to stock
and promote a brand’s products. These promotions help improve distribution and increase shelf
visibility.
●​ Trade Discounts & Allowances – Special price reductions given to retailers for bulk
purchases. Example: Wholesalers receiving 10% off for ordering in bulk.
●​ Stocking & Display Allowances – Financial incentives for retailers to display products
prominently. Example: Brands paying supermarkets for eye-level shelf space.
●​ Buy-Back & Refund Offers – Manufacturers refund retailers for unsold stock. Example:
Electronics brands offering refunds for unsold units.
●​ Dealer Contests & Incentives – Bonuses or prizes for retailers selling high volumes.
Example: Mobile companies rewarding top-performing dealers with vacations.
3. Online & Digital Sales Promotion
With digital marketing growth, businesses use online promotions to drive sales and
engagement. These promotions target e-commerce shoppers and social media users.
●​ Flash Sales & Limited-Time Offers – Urgency-driven discounts for a short period.
Example: Amazon’s “Lightning Deals.”
●​ Referral Programs & Affiliate Marketing – Customers earn rewards for referring new
buyers. Example: “Refer a friend and get $20 off.”
●​ Exclusive Online Coupons & Promo Codes – Special discounts for online shoppers.
Example: “Use code SAVE20 for 20% off.”
●​ Social Media Contests & Giveaways – Brands engage users through interactive
campaigns. Example: “Tag a friend and win a free gift.”
4. Event & Experiential Promotions
These promotions involve direct consumer engagement through live events, sponsorships, and
interactive experiences. They create brand awareness and emotional connections.
●​ Trade Shows & Exhibitions – Businesses showcase products to potential buyers.
Example: Auto companies launching cars at international expos.
●​ Product Demonstrations & Sampling Events – Live trials to educate consumers.
Example: Supermarkets offering free food tastings.
●​ Sponsorship & Brand Collaborations – Businesses sponsor events to reach target
audiences. Example: Coca-Cola sponsoring sports tournaments.

Personal Selling – Qualities Needed for a Personal Seller

Personal selling is a direct, face-to-face interaction between a salesperson and a potential

customer. It involves building relationships, understanding customer needs, and persuading
them to make a purchase. A successful personal seller must possess specific skills and qualities
to effectively communicate, influence, and close deals.

Qualities Needed for a Personal Seller

1. Communication Skills
Effective communication is crucial in personal selling as it helps convey product benefits clearly
and persuasively. A good salesperson listens actively to customer needs and responds with
relevant information. Strong verbal and non-verbal communication builds trust and engagement
during sales conversations.
2. Product Knowledge
A personal seller must have in-depth knowledge of the product or service they are selling. This
includes understanding features, benefits, pricing, and potential objections customers may
have. A well-informed salesperson can confidently address customer concerns and highlight
key selling points effectively.
3. Persuasion & Negotiation Skills
Sales professionals must be able to persuade customers to see the value in a product and
make a purchase. Negotiation skills help in handling objections, offering solutions, and reaching
a mutually beneficial agreement. A skilled negotiator knows how to adjust pricing, terms, or
product benefits to meet customer expectations.
4. Customer-Centric Approach
A successful personal seller prioritizes the needs and preferences of customers. Understanding
the buyer’s concerns and providing personalized solutions enhances trust and customer
satisfaction. Building long-term relationships rather than focusing solely on one-time sales
ensures repeat business.
5. Confidence & Enthusiasm
Confidence is essential in personal selling as it reassures customers about the credibility of both
the product and the salesperson. Enthusiasm about the product makes the interaction more
engaging and persuasive. A motivated salesperson can inspire customers to take action.
6. Adaptability & Problem-Solving Ability
Every customer has different needs and objections, requiring a salesperson to adapt their
approach accordingly. The ability to think quickly, handle objections, and provide alternative
solutions increases the chances of closing a deal. Flexibility in different sales situations is key to
long-term success.
7. Patience & Persistence
Not all customers make immediate decisions, and some require multiple interactions before
making a purchase. Patience helps in nurturing leads, following up effectively, and guiding
hesitant buyers. Persistence ensures that potential sales opportunities are not lost due to initial
rejections.
8. Integrity & Trustworthiness
Customers prefer to buy from sellers they trust. Ethical selling, honesty about product
limitations, and fair pricing build credibility. A personal seller should prioritize long-term
relationships over short-term gains by maintaining transparency and professionalism.
9. Time Management & Organization
Salespeople often handle multiple clients, leads, and follow-ups simultaneously. Good time
management helps prioritize high-potential leads and maximize efficiency. Organized sales
tracking ensures that no potential customers are neglected, leading to better conversion rates.
10. Ability to Handle Rejection
Rejection is a natural part of sales, and a personal seller must not get discouraged by
unsuccessful attempts. Instead, they should analyze why a sale was not made, learn from the
experience, and refine their approach. Resilience and a positive attitude help in overcoming
setbacks and maintaining motivation.
Channels of Distribution for Consumer & Industrial Goods

A channel of distribution refers to the path through which goods move from manufacturers to
consumers or industrial buyers. It includes intermediaries like wholesalers, retailers, and agents
who help in the efficient distribution of products. The choice of distribution channel depends on
factors like product type, target market, and cost considerations.

Channels of Distribution for Consumer Goods

Consumer goods are products purchased by individuals for personal use, such as food,
clothing, and electronics. These goods require different distribution channels to ensure
availability and convenience.
1. Direct Channel (Zero-Level Channel)
Involves selling directly from the manufacturer to the consumer without intermediaries.Common
for online shopping, direct sales, and company-owned outlets.
Example: Apple selling iPhones through its official website or stores.
2. Indirect Channels
Indirect channels involve intermediaries like wholesalers and retailers. These are classified into:
a. One-Level Channel (Manufacturer → Retailer → Consumer)
The manufacturer sells goods directly to large retailers who then sell to consumers.
Suitable for durable goods, electronics, and branded clothing.
Example: Nike selling shoes to retail stores like Foot Locker.
b. Two-Level Channel (Manufacturer → Wholesaler → Retailer → Consumer)
Wholesalers buy in bulk from manufacturers and sell to retailers.Used for fast-moving consumer
goods (FMCG) like groceries and household products.
Example: Hindustan Unilever products being distributed through wholesalers to local stores.
c. Three-Level Channel (Manufacturer → Agent → Wholesaler → Retailer → Consumer)
Includes agents who facilitate bulk transactions between manufacturers and wholesalers.Used
for imported goods and perishable items.
Example: International brands using agents to distribute cosmetics in foreign markets.

Channel Members in Distribution

Channel members play a vital role in making products available to consumers and industrial
buyers.
1. Manufacturer
The producer of goods, responsible for production, branding, and quality control.Decides the
best distribution strategy based on market needs.
2. Wholesaler
Purchases large quantities from manufacturers and distributes them to retailers.Provides
storage, reduces inventory costs, and stabilizes price fluctuations.
3. Retailer
The final link between wholesalers and consumers, selling in smaller quantities.Includes
supermarkets, departmental stores, and online marketplaces.
4. Agent or Broker
Acts as a middleman between manufacturers and wholesalers or retailers.Facilitates bulk
transactions but does not take ownership of goods.

Channels of Distribution for Industrial Goods

Industrial goods are used by businesses for production purposes, such as machinery, raw
materials, and office equipment. These goods require specialized distribution channels.
1. Direct Selling (Manufacturer → Industrial Buyer)
Manufacturers sell directly to businesses without intermediaries.Common for high-value,
customized, or technical products.
Example: Boeing selling aircraft directly to airlines.
2. Industrial Distributor Channel (Manufacturer → Industrial Distributor → Industrial Buyer)
Distributors purchase from manufacturers and resell to industrial users.Suitable for standard
industrial products like tools and office supplies.
Example: 3M selling adhesives through industrial distributors.
3. Agent Channel (Manufacturer → Agent → Industrial Buyer)
Agents facilitate large orders but do not stock inventory.Used for international trade and bulk
industrial purchases.
Example: Chemical manufacturers using agents for global sales.
4. Manufacturer’s Representative Channel (Manufacturer → Manufacturer’s Representative →
Industrial Buyer)
Independent sales representatives promote and sell industrial products.when companies want
to expand sales without setting up a full sales team.
Example: Electronics firms using sales reps for B2B sales.