CHAPTER 4 Examples:

PROMOTIONS & DISTRIBUTIONS

pogams.
Discounts, coupons, rebates,
cuntesta iree sançies
kyay
Promotion is a key clement ot the marketing mix that involves Nictives: Increase sales
volume,
COmmuniating with customers and stakeholders to intom, persuade, and repcat purchases. atiract new customers,
ntuence their buvingdecisions. l encompasses Various clements that work Reelations
encourage
4. Public (PR)
brand cquity, and stimulate
crate awaNCSs, build demand for
together to
Meaning: Managing the spread of
products or services. and the public to maintain a information between an
positive organization
otpnmoton aN: > Activities:
The primary clenents
Press releases, media image.
community relations. rrlations, events, sponsorships,
Advertising
> Objecetives: Enhance tbrand credibility,
Sponsorship Personal public perception. managei reputation, influence
and Event Selling 5. Direct Marketing
Marketing
Meaning: Dircct communication with targeted individuals
Sales or
Digital businesses to generate a response or transaction.
Marketing Promotion
> Channels: Direct mail, email
marketing, telemarketing, SMS
marketing.
Public
Diret
Relations
> Objectives: Target specifc audiences, deliver personalized
Marketing track responses and ROI. messages,
(PR)
Fig. 4.1- Elements of Promotion 6. Digital Marketing
1. Advertising Meaning: Utilizing digital channels and technologies to promote
products or services.
Meaning: Paid, non-personal communication through various media
channels to reach alarge audience. Channels: Websites, search engines (SEO, SEM), social media
Media: Includes television, radio, print (Facebook, Instagram, Linkedln), mobile apps.
digital (websites, social media), outdoor (newspapers, magazines), Objectives: Increase online visibility, engage with target udience,
(billboards, signage). drive website traffic and conversions.
Objectives: Build bramd awareness, communicate product
promote special ofters or events. features, 7. Sponsorship and Event Marketing
2. Personal Selling Meaning: Associating a brand with an event, activity, or cause to
Meaning: Face-to-face or dinct communication enhance visibility and credibility.
customers to persuade them to purchase with potential > Examples: Sports sponsorships, concerts, trade shows, charity events.
products or services.
Process: lnvolves sales presentations, > Objectives:Build brand awareness, create positive brand associations,
and relationship building. demonstrations, negotiations, reach target audiences.
Objectives: Customize messages,
address customer concems, Integration and Coordination
sales, and build long-term
elationships. Close Eiective promotion invalves integrating these elements into a cohesive
3. Sales Promotion
marketing communications strategy, ensuring consistency in messaging and
Meaning: Short-tem incentives or brand positioning across all channels. Each element serves specifc purposes and
immediate purchase or action. promotional activities to encourge
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targets different stages of the customer journey, from awareness to purchase and
post-purchase engagement. Social Medla
Advertlsing:
Faccbook, Instagram, Ads on social
By leveraging these elements of promotion strategically, businesses en Twiter, Linkedin, etc. platforms like
effectively reach their target audiences, differcntiate themselves f Video in
competitors, and ultimately achieve their marketing objectives. Continuo mid-roll,Advertising;
or post-roll Ads
ads on online videos, including pre-roll,
3. Outdoor Advertising: platforms like YouTube.
evaluation and adjustment of promotional strategies bascd on market feedback
and performance metrics are essential for maximizing impact and ROI. Billboards: Large displays in high-traffic
ADVERTISING motorists or pedestrians. areas, often targeting
Advertising is a form of marketing communication that aims to promote Transit Advertising:
stations. Ads on buses, trains, taxis, or
subway
products, services, brands, or ideas to target audiences. It involves paying for
space or time in various media channels to deliver persuasive messages and Street Furniture: Ads on benches, kiosks,
influence consunmer behaviour.
or bus shelters.
4. Direct Response Advertising:
The key aspects of advertising are: Direct Mail: Promotional materials sent directly to
mailboxes. consumers'
Objectives of Advertising
Build Awareness: Introduce new products or services to potential Email Marketing: Promotional emails sent to targeted lists of
customers and increase brand recognition.
recipients.
Telemarketing: Direct selling over the phone to potential
Increase Sales: Encourage immediate purchases or stimulate demand customers.
for products or services. Elements of Effective Advertising
Enhance Brand Image: Shape perceptions about a brand's attributes, Target Audience: Identify and understandthe demographics, interests,
values, and unique selling propositions. and behaviours of the intended audience.
Educate Consumers: Inform target audiences about product features,
benefits, and usage. Message: Develop clear, compelling, and persuasive content that
resonates with the target audience.
Create Desire: Influence consumer preferences and
in purchasing the advertised products or services. stimulate interest Creativity: Use innovative and visually appealing designs,
copywriting, and storytelling techniques.
Types of Advertising from
Call-to-Action (CTA): Encourage immediate action or response
Consumers (e.g., "Shop Now," "Learn More").
1. Traditional Media Advertising:
Television: Commercials appropriate media channels based on
1Media Selection: Choose considerations.
events, or news broadcasts.aired during TV programs, sporuns metrics, and budget
engagement
audience reach, maximize reach and
resources effectively
to
Allocate
Radio: Audio advertisements broadcast on
radio stations. Budgeting:
Print: Ads published in newspapers,
direct mail. magazines, brochùres, Irequency of advertisements.
2. Digital Advertising: Challenges in Advertising repetitive
desensitized to
Consumers may become
o Online Display Ads: Ad Fatigue:
on websites. Banner ads, pop-ups, or interacive intrusive ads. campaigns
effectiveness of advertising
Measurement:
Evaluating the
Search Engine Marketing specific ads or channels.
search engine results (SEM): Paid ads displayeo
(e.g., Google Ads). and attributing results to
115 116
 Competition: Standing out in a crowded marketplace where
are exposed to numerous ads daily. Consumers Measurement:
media Conduct brand
Regulations: Adherence to advertising laws, regulations, sentiment, and monitor perception surveys,
standards (e.g., truth in advertising, privacy laws). and industry A Educate Consumers brand mentions. analyse social
Advertising plays a crucial role in the marketing mix by > Objective: Inform target
influencing perceptions, and driving consumer creating audiences about product
behaviour. Effective: awareneSs, benefits.
features, uses, and
insights, and advertising
campaigns leverage creative strategies, target audience Strategy: Provide detailed
media channels to achieve marketing
business success. Continuous objectives and contribute appropriate
to information through
tutorials, or comparison charts.
adaptation to consumer preferencesOverali demonstrations,
technological advancements in media are key to
maintaining relevance and
and Measurement: Evaluate consumer
effectiveness in advertising efforts. campaigns, track website traffic to knowledge before and after
ADVERTISING OBJECTIVES 5. Create Desire educational content.
Advertising objectives are specific goals that Objective: Influence consumer
achieve through their advertising businesses or organizations aim to purchasing the advertised productspreferences and
development of advertising strategiescampaigns. These or services. stimulate interest in
advertising efforts. and help measureobjectives guide the
the effectiveness of Strategy: Use aspirational messaging,
offers to create urgency. testimonials, and limited-time
The common advertising
objectives are: Measurement: Analyse engagement metrics,
1. Build Awareness (CTR), and conversions from click-through rates
6. Generate Leads
advertising campaigns.
Objective: Introduce new products or
increase brand recognition. services to target audiences and
Objective: Capture contact information or
Strategy: Focus on creating visibility and customers interested in the product or inquiries from potential
familiarity with the brand, its service.
offerings, and unique selling Strategy: Uselead magnets such as free trials,
propositions. whitepapers, or webinars
Measurement: Track metrics such as reach, to encourage sign-ups.
recall surveys. impressions, and brand Measurement: Track lead generation metrics, such as form
2. Increase Sales
submissions, downloads, and inquiries.
Objective: Stimulate immediate 7. Drive Website Traffic
to sales conversions. purchases or generate leads that lead Objective: Increase visits to the company's website or specific landing
> Strategy: Highlight product pages.
encourage consumer action. benefits, promotions, and incentives to > Strategy: Utilize compelling calls-to-action (CTAs), display ads, and
Measurement: Monitor sales metrics, search engine marketing (SEM) tactics.
advertising spend (ROAS). conversion rates, and return on Measurement: Monitor website analytics, traffic sources, bounce rates,
3. Enhance and time spent on site.
Brand Image
> Objective: Shape perceptions about 8. Promote Special Offers or Events,
positioning in the market. the brand's attributes,
values, and Objective: Highlight promotions, discounts, or upcoming events to
Strategy: Use storytelling, drive immediate action.
positive associations. testimonials, and emotional appeals to Strategy: Communicate limited-time offers, seasonal sales, or event
build
details through targeted campaigns.

117
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 Considerations: Limited visual appeal, fragmented audiences due to
redemptions,
event registrations, and diverse listening preferences.
Measurement:
Track coupon
c Print
campaign-specific sales.
+ Description: Ads placed in newspapers, magazines, brochures, or
9. Engagewith
Audience
dialogue with customers through direct mail.
interaction and
Objective: Foster advertising formats.
interactive Advantages: Targeted audience segments, credibility associated with
social media or contests, or
user-generated content, polls, print publications, longer shelf life in magazines.
Strategy: Encourage
interactive quizzes. such as
Considerations: Declining circulation, limited engagement compared
engagement metrics, to digital, higher production costs for quality print materials.
Measurement: Monitor
social media
> and hashtag usage.
likes, shares, comments, d. Outdoor
the organization's overall
objectives depends on + Description: Ads displayed on billboards, transit vehicles (buses,
Choosing the right advertising preferences, and the stage of the product life
marketing goals, target audience clear strategies taxis), posters, or digital screens in public spaces.
campaigns align objectives with
cycle. Effective advertising
measurable outcomes to achieve
desired results and + Advantages: High visibility, continuous exposure, reaches audiences
creative executions, and evaluation and adjustment of in specific geographic areas.
success. Regular
contribute to long-term business metrics and market feedback are
advertising efforts based on performance
relevance Considerations: Limited message retention, inability to target specific
investment (ROl) and maintaining demographics, potential for ad cluter in urban areas.
essential for optimizing return on
in competitive markets. 2. Digital Media
MEDIA
KINDS OF ADVERTISING
platforms through which
a. Online Display Advertising
Advertising media refer to the various channels or Description: Banner ads, rich media, or interactive ads on websites and
advertisements are delivered to iarget audiences. Each type of media has unique
characteristics, advantages, and considerations for reaching specific marketing mobile apps.
objectives. Advantages: Targeted audience segmentation, real-time campaign
The primary kinds of advertising media are: performance tracking, cost-effective compared to traditional media.
1. Traditional Media Considerations: Ad blocking software, banner blindness, potential for
fraud in programmatic advertising.
a Television (TV)
Deseription: Broadcast commercials on TV channels during programs,
b. Search Engine Marketing (SEM)
sports events, or news broadcasts. * Description: Paid ads displayed in search engine results pages (SERPs)
Advantages: Wide reach, visual and audío impact, ability to target based on keywords.
specific demographics and geographic regions. Advantages: Targets users actively searching for specific products or
(CTR) and
Considerations: High production costs, decliníng viewership in sOme services, measurable ROI through click-through rates
demographics ue to digital media. conversions.
b, Radio Considerations: Competitive bidding for popular keywords, ongoing
Deseription: Audio commercíals broadcast on radio optimization required for effective results.
music, talk shows, or news stations duiy . Social Media Advertising
segments. platforms like Facebook,
Advantages: Localizeddtargeting, Description: Paid ads on social media
production compared to TV. flexible scheduling, cost-effective Instagram, Twitter, Linkedn, etc.

119 120
 Advantages: Highly targeted based on demographics, irterests, andA
behaviours, facilitates engagement and interaction with audiences
Considerations: Algorithm changes impacting organic reach, evolvine Traditional Media
user preferences, potential for negative feedback if ads are intrusive Television (TV)
Radio
d. Video Advertising Print
Description: Ads played before, during, or after online videos on Outdoor
platforms like YouTube or streaming services. Online Display Digital Media
Advantages: Captures attention with audiovisual content, targeted Advertising Search Engine
Marketing (SEM) Social Media
placement based on viewer preferences. Advertising Video Advertising
Consideratic 1s: High production costs for video ads, viewer skin
options affecting completion rates, competition for viewer attention. Direct and
Direct Mail Interactive Media
3. Direct and Interactive Media Email Marketing
a. Direct Mail Fig.4.2- Kinds of Interactive Media
Cffective advertising Advertising Media
Description: Promotional materials sent directly to consumers' based on target campaigns often utilize a mix of these
physical mailboxes.
considerations, and audience demographics, marketing advertising media
Advantages: Highly targeted based on mailing lists, tangible and enhance reach, campa1gn goals. ntegration across objectives, budget
personal impact, measurable response rates. PValuation andfrequency, and engagement with target multiple channels
andiences,
can
Considerations: Costs of printing and postage, potential for lower effectiveness and optimization are crucial for
return on investment maximizing
while ongoing
advertising
(ROI) ina dynamic media landscape.
response rates compared to digital channels. TRADITIONAL VS DIGITAL MEDIA
b. Email Marketing Traditional media and digital media
Description: Promotional messages sent to targeted email lists of represent two distinct approaches
advertising, each with unique characteristics,
subscribers or potential customers. A comparison advantages, and chalenges. to
between traditional and digital media in the context of
Advantages: Cost-effective, personalized content, automation for advertising:
segmentation and scheduling. Traditional Media
Considerations: Email deliverability issues, compliance with anti 1. Characteristics:
spam regulations, managing subscriber preferences. Broadcasting: ncludes TV and radio commercials aired on scheduled
c. Interactive Media
programs.
Description: Ads that engage users through interactive elements such Print: Advertising in newspapers, magazines, brochures, and direct
as games, quizzes, or augmented reality experiences. mail.
Advantages: High engagement levels, memorable experiences for Outdoor: Ads on billboards, transit vehicles, andposters in public
users, potential for viral sharing. Spaces.
Considerations: Complex production and development, compatibility
2. Advantages:
across devices, ensuring interactivity enhances brand messaging. Broad Reach: Captures a wide audience, often simultaneously.
Tangible Presence: Physical ads in print and outdoor are tangible and
can be revisited.
established
Established Credibility: Long-standing mediums with
121
credibility and trust.
122
 Integration:
Combining both can leverage the
medium for maximum
substantial
impact. strengths of each
choice
between traditional and
placement costs can be Thc digital
3. Challenges: audience media
Production and specific demographics demographics, depends on factors such
HighCosts: targeting reach campaign objectives,
Difticultyin desired
and engagement metrics. budget constraints, andas
Limited
Targeting: involve a mix of both
Many
effectiveness rday.
compared to digital. measuring compared Hith
traditional and successful advertising strategies
metricsfor nLaLE
target audiences across variousdigital media to effectively reach and
Limited
Measurement: v a l u a t i o n

channels and touchpoints.

to digital analytics.
and optimization based on perfomance Regular
r M i Z i n g
advertising effectiveness and achieving
analytics are crucial for
Digital Media
andI competitive landscape. marketing goals in a
1 .C h a r a c t e r i s t i c s : interactive ads on COMMPARISON OF TRADITIONAL, ,AND DIGITAL MEDIA
media, and
Banner ads, rich
Online Displav: Iraditional media and digital media represent
and mobile apps.
two distinct
websites rching and.
Marketing (SEM):
Paid ads in search engine results lengaging audiences with marketing messages. approaches to
Search Engine Acomparison between traditional media and digital media based on various
based on keywords.
Instagram, Twitter titors:
platforms like Facebook,
Social Media: Paid ads on Targeting: Audience
and Linkedln. 1. Reach and
Traditional Media:
2. Advantages: demographics,
targeting based on Reach: Typically has broad reach but less precise targeting compared
Targeting Capabilities: Precise
location. todigital media.
interests, behaviours, and
for tracking
Real-Time Analytics:
Detailed metrics available Audience Targeting: Relies on demographics, viewership, readership,
" conversions, and ROI. and circulation data to target general audience segments.
impressions, clicks,
costs compared to traditional media. 4 Digital Media:
" Cost Efficiency: Generally lower
especially for smaller budgets. Reach: Can reach a global audience instantly through websites, social
3. Challenges: media, and search engines.
desensitized to digital ads, leading to
Ad Fatigue: Users may become > Audience Targeting: Offers precise targeting based on demographics,
lower engagement. interests, behaviours, and location using data analytics and targeting
blockers reduces visibility and tools.
Ad Blocking: Increasing use of ad
effectiveness. 1. Interactivity and Engagement:
Algorithm Changes: Platforms' algorithms can impact organic
reach
Traditional Media:
and ad perfomance unpredictably.
Choosing Between Traditional and Digital Media Interactivity: Limited interactivity; primarily one-waycommuniction
from sender to receiver.
Target Audience: Consider where your audience spends their time and
how they consume content. Lngagement: Typically passive engagement with content (e.g, TV
ads,print ads).
Budget: Traditional media tends to be more expensive; digital alows
for more flexible budgeting. 3 Digital Media:
> between brands and
Goas: Traditional media can be effective for broad brand awarenss Interactivity: Enables real-time interaction
digital excels in targeting and performance tracking. Consumers through comments, shares, likes, and clicks.
123
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 content
through 6. Measurement and Analytics:
engagement
with Traditional Media:
content.
active
Promotes
Measurement: Measurement tools are limited, often relying on
u s e r - g e n e r a t e d
Engagement:
interactive
ads, and
multimedia, surveys, audience ratings, and sales data for performance evaluation.
and ROI: (e.g.. TV
Analytics: Limited bility to track detailed audience behaviour and
3. Cost Traditional Media: placement engagement metrics.
production and
costs for
Generally higher * Digital Media:
> Cost: ads). and less
spots, print
challenging
ads, radio can be
measurement Measurement: Provides detailed analytics on audience behaviour,
ROI
> ROI
Measurement:
tracking
capabilities.
engagement rates, conversion paths, and ROL.
limited
imnediate due to
(PPC), 4 Analytics: Uses tools like Google Analytics, social media insights, and
* Digital Media:
cost-efective with options for (PPA).
pay-per-click
ad platform analytics for comprehensive campaign perfomance
be more analysis.
> Cost: Can
pay-per-acquisition
(PPI), and tracking
While traditional media offers broad reach and brand visibility, digital medía
real-timne
analytics tools for
pay-per-impression
Ofers robust investment.
ROIMeasurement:
conversion rates,
and return on excels in precision targeting, interactivity, real-time engagement, and
>
measurable ROI. Both forms of media have their strengths and are often used in
performance,
of campaign
reach
and Timeliness: integrated marketing strategies to leverage their respective advantages and
4. Fexibility between traditional and
Traditional Media:
and lead times
for ad diverse audience segments effectively. The choice
characteristics,
digital media depends on marketing objectives, target audience
schedules
with fixed
Less flexible media
budget considerations, and carmpaign goals in the evolving landscape of
Flexibilitv:
> placement and production.
times and are less
Campaigns require longer lead consumption.
Timeliness:
real-time events or changes.
responsive to
9 Digital Media: updates, and SALES PROMOTION
timing, content
flexibility in campaign strategies designed to stimulate
> Flexibility: Offers Sales promotion refers to short-term marketing or service. Unlike
targeting adjustrnents.
immediate campaign Imamediate buying behaviour or accelerate sales of a product
for real-time marketing, customer feedback. promotion tactics
Timeliness: Allows
to market trends or advertising, which focuses on long-tern brand building, sales added value or
launches, and rapid responses customers with
ae typically temporary and aim to provide
5. Content Format and
Creativity: incentives to make a purchase.
o Traditional Media:
formats (e.g., TV commercials,
Ihe key aspects of sales promotion are:
Content Format: Limited to specific Objectives of Sales Promotion
radio ads, print layouts).
sales byy offering discounts,
multimedia and interactive I. Increase Sales Volume: Boost immediateconsumers
>Creativity: Challenges in integrating Coupons, or special offers that encourage
to buy.
elements compared to digital media.
slow-moving inventory by offering
4 Digital Media: ear Inventory: Move excess or
Content Format: Supports various formats including text, mages, discounts or promotions to atract customers.
videos, animations, interactive ads, and augmented reality. 3. Encourage Trial: Introduce: new products or services by offering free
> Creativity:Encourages innovative and dynamic content creation wi Samples, trial offers, or demonstrations.
opportunities for storytelling and immersive experiences. 4. Stimulate Repeat Purchases: Rewardiloyal customers with incentives
exclusive offers.
125
as loyalty prograns, rebates, or
126
 Integration: Coordinate sales
activities, such as advertisingpromotion efforts with other
and social media campaigns,marketing
Types ofSales Promotion consistent messaging. for
1. Price-BasedPromotions:
selling price. of a product or Evaluation: Measure the effectiveness of sales
inthe promotions through
reductions
offers.
b u y - o n e - g e t - o n e - f r e e
metrics such as sales volume,
costs, and return on investment redemption rates, customer acquisition
Temporary
Discounts: sales or
service, such as
percentage-off
entitle
customers to discounts or special offers (ROI.
Vouchers that Sales promotion plays a crucial role in the marketing mix
Coupons: ofsale. by providing
redeemed at the point purchase, typically requiring immediate incentives that encourage consumer action and drive sales growth.
when after the
refunds offered When executed strategically and integrated with broader
4 Rebates: Partial purchase. marketing strategies,
customers to
submit proof of sales promotions can effectively attract newcustomers, retain existing ones, and
2. Premium-Based Promotions: enhance brand loyalty. However, careful planning, monitoring, and evaluation
purchase, often ac are essential to ensure that promotions align with business objectives and deliver
merchandise given with a
products or
4 Gifts: Free as part ofa
bundle. measurable results in: a
competitive marketplace.
promotional item or customers the
Promotions that offer TYPES OF SALES PROMOTION
Contests and Sweepstakes: skill.
based on luck or Sales promotions encompass a variety of tactics designed to stimulate
chance to win prizes
given to Consumers to encourage immediate sales or encourage specific consumer behaviours. These promotions
Samples: Free samples of a product
trial and purchase. can be categorized into several types based on their objectives and methods of
implementation.
3. Point-of-Purchase (POP) Displays:
displays or demonstrations designed The common types of sales promotions are:
+ In-Store Displays: Eye-catching
impulse purchases. 1. Price-Based Sales Promotions
to attract attention and prompt
within retail locations
Signage: Promotional signs or banners 1. Discounts:
highlighting special offers or
discounts.
Percentage Discounts: Offering apercentage reduction in the regular
4. Loyalty Programs: price (e.g., 20% of).
for purchases, which
+ Points-Based Programs: Customers earn points Dollar Amount Discounts: Providing a fixed amount discount on
can be redeemed for rewards or discounts. purchases (e.g., Rs.10 off).
Tiered Programs: Levels of membership with increasing benefits V Seasonal Discounts: Discounts offered during specific seasons or
based on purchase frequency or spending. holidays.
5. Special Events: 2. Coupons:
Sales Events: Limited-time sales events, such as seasonal sales, V Printed Coupons: Physical vouchers distributed through newspapers,
clearance sales, or anniversary promotions. magazines, or direct mail.
Trade Shows: Exhibitions or fairs where businesses showcase producIs accessible via websites, emails,
and offer promotional deals to attendees. DigitalCoupons: Electronic coupons
or mobile apps.
Implementation Considerations
3. Rebates:
Target Audience: Tailor promotions to specific customer segimeuo after purchase upon
based on demographics, purchasing behaviour, or geographic location. Mail-in Rebates: Partial refunds provided
Timing: Align promotions with peak buying periods, holidays, submission of proof of purchase.
seasonal trends to maximize impact, Instant Rebates: Discounts applied
at the point of sale, often sponsored
by manufacturers or retailers.
127 128
 6. Special Events
Premium-Based Sales Promotions 1. Sales Events:
2.
1. Free Samples:
quantities of a product
for consumers to try before Limited-time promotions,
Providing small anniversary sales events. such as clearance sales,
making a purchase
decision.
Trade Shows and flash sales, or
2. Gifts with
Purchase: Exhibitions:
Showcasing products or Services
purchase a specified nroa
offering a free item or gift when customers pricing or special at industry
offers for attendees. events with promotional
minimum amount.
oT Spenda 1. Cause-Related and Charity
3. Contests and Sweepstakes: 1. Cause-Related Marketing: Promotions
Contests: Competitions where participants submit entries based on skill
Collaborating witha
or creativity to win prizes. promotional campaignsnonprofit organization to support a cause
or donations through
Sweepstakes: Random drawings where participants have a chance t 2. Charity Promotions:
tied
to sales.
win prizes based on luck. A Donating a portion
of
3.Point-of-Purchase (POP) Displays causes, often with sales proceeds to charitable orgarnizations or
1. In-Store Displays: participation. promotional messaging to encourage customer
Eye-catching displays or demonstrations within retail locations to Implementation Considerations
promote specific products or offers. Target Audience: Tailor
2. Signage and Posters: promotions to appeal to specific
segments based on demographics,
behaviours, customer
Promotional signs, banners, or posters placed strategically in-store to Timing: Launch promotions during peak or preferences.
highlight sales promotions. seasonal trends to maximize impact and buying periods, holidays, or
4. Loyalty Programs + Integration: Coordinate consumer engagement.
sales promotions with other
1. Points-Based Programs: activities toensure consistency in messaging and marketing
multiple channels. maximize reach across
Customers earn points based on purchases, which can be redeemed for
rewards, discounts, or free products. Measurement: Track key performance
2. Tiered Loyalty Programs: redemption rates, customer acquisitionmetrics (e.g., sales volume,
costs) to evaluate the
effectiveness and ROI of sales promotions.
Offering diferent levels of membershíp with increasing benefits or Elfective sales promotions leverage various tactics to
exclusive offers based on customer spending or engagement. attract consumers, drive
Sales, and achieve specific marketing objectives. By understanding
ypes of sales promotions and their implementation considerations,thebusinesses
5. Bundling Promotions different
1. Product Bunding: vandes1gn strategic campaigns th¡t resonate with their target audience, enhance
brand
markets.loyalty,
Offering multiple products or services together at a discounted price and generate positive returns on investment in competitive
compared to purchasing them separately.
2. Cross-Promotions: PERSONAL SELLING
Collaborating with another brand offer complementary products o Personal selling is adirect, interpersonal communication between asalesperson
services together in a promotionaltopackage. and a prospective
customer. Unlike advertising or sales promotions that use
Tnass
media or indirect methods, personal selling involves face-to-face

129 130
 Relationship
interaction. either in person or through vitual platfoms, where the
salesperson
engages directiy with the customer to persuade them to make a purchase.
fostering trust andBuilding:
loyalty. Establishing personal
Feedback: Direct
The key aspects of personal seling are: adjustments to salesfeedback from connecions and
Objectives of Personal Selling Challenges ofFPersonal
strategies. customers allows immediate
Building Relationships: Establishing rapport and trust with customers Selling
through personalized interaction.
Cost: Personal selling can
Understanding Needs: Identifying customer needs, preferences, and
Communication methods like be resource-intensive
cOnceTnsto tailor Solutions. Training: Requires skilled salesadvertising. compared to mass
in professionals who are
about products and effective
Educating Customers: Providing detailed information about products
or services to help customers make informed decisions. Time-Consuming: Each sales interpersonal communicknowl ation. edgeable
Closing Sales: Guiding the customer through the buying process and effort, limitingthee number of interaction requires significant time
customers a
salesperson can reach. and
securing commitments. Applications of Personal Selling
Process of Personal Selling High-Involvement Products:
Complex or expensive products that
require detailed explanation and custome
Prospecting:
Identifying potentiaB customers or leads through market Customized Solutions: Tailored services orconsultation.
solutions that benefit from
personalized recommendations and demonstrations.
research, referrals, networking, or cold calling.
Approach: Relationship-Based Selling: Industries where ongoing customer
$ Initiating contact with the prospect and making a favourable relationships and trust are critical, such as financial services or B2B
sales.
first impression to gain attention and interest.
Presentation: Personal selling remains a powerful tool in the marketing mix,
products or services that benefit from direct interaction andespecially for
personalized
Demonstrating the features, advantages, and benefits of attention. Effective personal selling inyolves understanding customer needs,
products or services based on the customer's needs and building relationships, and guiding prospects through the buying procegs to
preferences. achieve sales objectives and foster long-term customer loyalty. As markets
Handling Objections: evolve, integrating personal selling with digital tools and CRM systems can
Addressing concerns or objections raised by the customer and enhance efficiency and effectiveness in customer relationship management and
providing reassurance or additional information. sales performance.
Closing: Sales promotion and personal selling
Asking for the sale, overcoming final objections, and securing oales promotion and personal selling are two important tools in marketing and
commitment from the customer to complete the purchase. sales strategies. Here are the key differences between them:
+ Follow-Up: 1. Nature of Interaction
audience. It
impersonal and targets a broad
After-sales service, ensuring customer satisfaction, and Sles Promotion: It is encourage immediate purchase or
building long-term relationships through ongoing support. nvolves short-term incentives to
Advantages of Personal Selling engagement. direct interaction
between
personal and involves and
Customization: Tailoring the sales approach and message to individua Personal Selling: tis
customer to build
relationships
customer needs. Salesperson and a potential
influence purchasing decisions.
131 132
 Aspect Sales Promotion
2. Objective |Impersonal;ttargets abroad
PersonalPer,sonalinNolvSeles ing
l r eof

audience
Sales Promotion: Aims to stimulate immediate sales by offerine oTation
iscounts, coupons, or freebies.
Persoual Selling: Focuses on building long-term relationships and trust hictive
Stimulate immediate sales Interaction
Buld longterm
direct
With customers to create ongoing sales opportunities. i eFramne short-term strategy relationshiFs and trust
3. Time Frame Lower cost per customer; Long-term straegy
Sales Prometion: Short-term strategy designed to boost sales quickly |broadreach Higher cost per
Guring a specific period. onmunication |One-way Communicaion |personaized apprcustoachomer,
Personal Selling: Long-term strategy that requires time and effort to Two-way communication
convert leads into loyal customers. Irget.Audience Broad audience |Specific individuals or
4. Cost Discounts, cOupons, contests, businesses
Sales Promotion: Often less expensive per customer as it targets a "Buy One Get One Free" Real estate agents,
demonstrations, B2Bproduct
Emples

offers
larger group simultaneously (e-g., advertisements, discounts). sales
Personal Selling: Higher cost per customer due to the personalized, NALITIES OFFSALES PERSONNEL
one-on-ne nature of the interaction. personal sellers typically possESS a
ambutes, skills, and knowledge that enable them tocombination of
jressful
5. Communication personal
Sales Promotion: One-way communiçation through advertisements, Isomers, buildI relationships, and drive sales. effectively engage with
posters, or social media.
ivekey qualities needed for a personal seller are:
Personal Selling: Two-way communication where the salesperson LCommunication Skills
addresses customer queries and tailors the pitch.
6. Target Audience } Clear and Effective Communication: Ability to articulate jideas.
Sales Promotion: Attracts new customers or encourages repeat
explain product features, and address customer questions or concerns
purchases from a broad audience. clearly and persuasively.
Personai Selling: Focuses on specific individuals or businesses, > Active Listening: Skill in listening attentively to customer neds and
especially in B2B or high-value B2C transactions. preferences to tailor solutions and build rapport.
7. Examples
Sales Promotion: Discounts, "Buy One Get One Free" offers, contests, Interpersonal Skills
rebates, and loyalty programs. Empathy: Understanding and empathizing with eustomer emotions,
establish strong
Personal Seling: Real estate agents discussing property options, sales wOvems, and perspectives to build trust and
represçutatives demonstrating a product's features. relationships.
Both methods are often used together to maximize effectiveness in different communication styles and
stages of the buying process.
Adaptability: Flexibility in adjustingpersonalities andsituations.
approaches based on different customer
roduct Knowledge and
ofthe features, benefits,
Expertise: Comprehensive understandingsold.
applications off products or services being
133

134
 Adaptability:
siapt strategies Ability to
Problem-SoBving: Ability to idertfy customer pain
points and position to evoBvingenbrace change, learn from feeback, and
cstomer needs and
products or services as
solutions effectively. 5sful personal sellers combine market conditions.
and a these qualities with industry-specific
4. Confidence and Assertiveness
products/services
-dge customer-centric
build trust, and drive sales. approach to effectively engage with
Self-Confidence: Belief in one's abilities and lities through training, feedback,Continuous development of these skills
customer trust and credibility.
projecting confidece to inspiíre their roles and contribute to the and experience heips personal sellers
Assertiveness: Ability to assertively guide the sales process, ask for etivemarkets.
overall success of their organizations in
commitrments, and handle objections constructively.
ANVELS OF DISTRIBUTION
5. Persuasion and Negotiation Skils .als of distribution for consumer goods refer to the pathways or routes
decisions and
Persuasiveness: Capability to infiuence customer
through compelling arguments and value propositions. -- which products mnove from manufacturers to consumers. These
motivate action
conditions to achieve splay a crucial role in ensuring products reach their intended markets
º Negotiation: Skill in negotiating terms, prices, or l y and effectively.
mutually beneficial agreemnents with customers.
Skills :mnon channels of distributionfor consumer goods are:
6.Time Management and Organizational
Prioritization: Effective management of time and resources to
focus Direct Selling
on high-potential prospects and maximize sales opportunities. 1. Manufacturer Direct to Consumer (DTC):
Organization: Ability to maintain accurate records, manage sales * Manufacturers sell directBy to consumers through their own physical
pipelines, and follow up efficiently with prospects and customers. stores, websites, or catalogues.
7. Resilience and Persistence Advantages: Full control over branding, customer experience, and
Resilience: Ability to handle rejection, setbacks, or
challenges pricing. Direct feedback from customers.
limited reach without established
positively and persistently pursue sales goals. * Challenges: High operationalcosts,
maintaining
Perseverance: Commitment to staying motivated and retail presence.
effort in face of obstacles or competitive pressures. Retail Channels
8. Customer Focus and Relationship Building 1. Retail Stores:
a varicty of product
Customer-Centric Approach: Dedication to understanding and Department Stores: Large
retailers offering
meeting customer needs, delivering exceptional service,
and exceeding Nordstrom).
categories (e.g., Macy's, (e.g., Sephora
expectations. specific product categories
Specialty Stores: Focus on
Relationship Building: Skill in nurturing long-term relationships with for cosmetics). Walmart, Target)
customers, fostering loyalty, and generating repeat business or referrals. products at lower prices (e.g.,
DIScount Stores: Offer customer trafic, in-store
9. Ethical Conduct and Integrity coverage,
and ethical * Advantages: Wide geographic

Trustworthiness: Commitment to honesty, integrity,stakeholders. promotions. margins, seasonal

conduct inall interactions with customners, colleagues, and competition,
retailer
Challenges: Shelf space
Professionalism: Maintaining a positive reputation and representing
the organization professionally at all times. fluctuations. and non-
L. Hypermarkets:
of food
10. Continuous Learning and Adaptability Supermarkets and stores
offering a wide
range

Curiosity and Learning Orientation: Willingness to stay updated o Supermarkets: LargeKroger, Tesco).
industry trends, market developments, and product innovations. food pproducts (e.g.,
135 136
 Hypermarkets: Combine supermarket and department store formats, Advantages: Market expertise,
offering a broader assortment (e.g.,/Walmart). efficiencies. regional coverage, supply chain
Advantages: Bulk purchases,conv¢nience, requent shopper programs Challenges: Channel coflict,
Challenges: Price competition, perishable goods management, Space relationships with manufacturers, pricing pressures, maintaining
allocation. 5,Other Distribution Channels
3. Convenience Stores: 1. Direct Sales Agents:
Small retail outlets offering a limited range of products with convenient Independent sales representatives or agents who sell
access (e.g., 7-Eleven, Circle K). of manufacturers to retailers or products on behalf
consumers.
Advantages: Extended hours, quick purchses, impulse buys. Advantages: Local market knowledge, personal relationships,
Challenges: Limited product assortment, higher prices per unit, space flexibility in sales approach.
constraints. 4 Challenges: Commission-based compensation, training and support
3. Online and E-commerce Channels needs.
1. E-commerce Platforms: 2. Franchise Networks:

Online marketplaces (e.g.,Amazon, eBay) and retailer websites selling Franchisees operate under a parent company's brand and distribute
directly to consumers. products through à network of franchised outlets.
Advantages: Global reach, 24/7 availability, personalized shopping Advantages: Rapid expansion, brand consistency, shared marketing
costs.
experiences.
Challenges: Franchisee management, brand control, revenue
sharing.
Challenges: Fulfilment logistics, cybersecurity, customer acquisition Consumers
costs. Manufacturer
Retailers Consumers
2. Direct-to-Consumer (DTC) Brands: Manufacturer
Wholesaler Retailers Consumers
Brands selling exclusively through their own websites or online stores. Manufacturer
Retailers Consumers
Manufacturer Agent
* Advantages: Brand control, customer data ownership, direct customer Wholesaler
Retailers Consumers
relationships. Manufacturer Agent
Fig. 4.3-Channels ofDistribution
* Challenges: Customer acquisition, competition with established e
commerce platforms. Distribution Channels
Considerations for Choosing storage
perishability, fragility, and
4. Wholesalers and Distributors Characteristics: Consider
Product
1. Wholesalers: and
requirements. consumer preferences,
geographic reach,
+ Purchase goods in bulk from manufacturers and sell them to retailers or Analyse
Target Market:
other businesses. shopping behaviours. profit margins,
and
distribution costs,
Evaluate
+ Advantages: Bulk discounts, storage facilities, logistics expertise. Costs and
Margins:
marketing
logistics,
Challenges: Margins, inventory management, dependence on pricing strategies. Assess partners'
Canabilities:
manufacturer relationships. Channel
Partner
service
capabilities.
consumer
goods
customer
2. Distributors: Support, and crucialfor demands.
is customer
and meet
management

channel
Specialized intermediaries that manage distribution and logistics tor Effective distribution target markets
efficiently

manufacturers, selling to retailers or end-users. Companiesttoreach their 138

137
 J Functions: Manage logistics, warehousing,
advantages and challenges, requiring strategic transportation, and
inventory management on behalf of manufacturers:
offers unique preferences, andI market dynamics sell products to
Each channel objaves. Customer retailers or end-users.
with busines environments.
alignment proiability in competitive
to optimize sales
and Types: Regional distributors, industrial distributors,
CHANNEL MEMBERS distributors for specific brands or products. exclusive
disributionrer to the entities or organizations involved
Channel members in anufacturers to end-users or consumers. 5. Agents and Brokers
servis TOm ma
products or Role: Independent sales representatives who work on behalf of
In mOVIng plav ke roles in the distribution procesS, facilitating
the manufacturers or wholesalers to sell products to retailers or end-users.
These intemedianes
s e r i s a d a i d i n z value at various stages.
ios of goos ani
of channel nabers typically involved in distribution Functions: Negotiate contracts, secure orders, provide market
intelligence, and assist with promotional activiies.
/ Types: Manufacturer's agents, sales agents, commission agents, and
1. Mangf2cturers
brokers specializing in specific industries or markets.
Role: Proáuce goods 0 Ser Ices to be distributed through various
chane's 6. Franchisees

Functions: Desi produce. package, and brand products; set pricing / Role: Operate under a franchisor's brand name and business model to
sEgs nd promote products to intermediaries and end-userS. sell products or services.
Direct Channels: Some manufacturers may also sell directly to Functions: Follow franchisor guidelines for operations, marketing, and
corSmErs hrocgh their ORT Tetail stores or e-commerce platforms customer service, pay royalties or fees to the franchisor.
Direci--Consume). / Types: Retail franchise outlets, service-based franchisebusinesses, and
2 Wholesalers more.

Role: Purciase goods in bulk from manufacturers and sell them in Considerations for Channel Member Selection
Sralle qantities to rels or other businesses.
Market Coverage: Evaluate geographical reach and target market
Functions: Maintzin inveatoy, offer storage facilities, provide alignment.
iogisics and trznsporzion services, and extend credit to retailers.
Service Capabilities: Assess logistical capabilities, customer service
Types: Ful-service wholesalers. limited-service wholesalers, cash standards, and technical support.
znzry wholesalers, irop shippers, and more. profitability.
3. Retzilers V Cost Eficiency: Analyse distribution costs, margins, and
overall distribution
Role: Sell products directiy to consurmers for personal or household use. Y Channel Integration: Ensure compatibility with
strategy and brand image.
Functions: Purchzse gOOds from wholesalers or directly from chanel members are essential for
mZTuíacturers, display products attractively, set retail prices, provide Effective management and Coordination of
custome SerVIce, ard manage sales transactions. optimizing distribution efficiency, reaching target markets, and meeting
environments. Each type of channel member
Iypes: Deparnent stOres, speciaty stores. supermarkets, Customer demands in competitive
process, requiring strategic
stores, onhne reailes convenienct Contributes unique value to the distribution objectives and enhance
4. Distributors
(ecommerce), and more. dlignment and collaboration to achieve
mutual business

Role: Specialized Overall market success.

INDUSTRIAL GOODS
manufacturers. interTmediaries that facilitate distribution and sales for EANNELS OF
DISTRIBUTION FOR

industrial goods involve a

more specialized
nannels of distribution for to the nature of the
to consumer goods, primarily due are
PPOach compared customers. Industrial goods
and the specific needs of industrial
PPoducts
139
140
 tvpically used in the production of other goods or in business operations rather Challenges: technical
than for personal consumption. manufacurers High
for product expertise requirements,
The common channels of distribution for industrial goods are:
s Original availability and support. reliance on
Equipment Manufacturers
Role: OEMs (OEMs)
1. Direct Sales from Manufacturer manufacture çomponents o
into final products
Manufacturer Direct to End-Users (Industrial Companies): byother manufacturers.subsystems th¡t are integrated
Manufacturers sell directly to industrial companies or
Functions: Supply specialized
other manufacturers for parts,
businesses that use the products in their operations. integration intocomponents, or
their producta, assemblies to
Advantages: Full control over sales process, pricing, and
Advantages: Long-term contracts,
stable demand fronm OEM qustomers,specialized product offerings, and
customer relationships.
Challengest High dependency on OEM
pressures fromcustomers,
Challenges: Requires significant investment in sales force, standards, and competitive strict quality
customer service, and logistics.
6. Sales Agents and Representatives other supplirs.
2. Industrial Distributors
4 Role: Independent agents or
Role: Distributors specialize in selling industrial goods to end-users, on representtivs who sll industrial
behalf of manufacturers or distributors. goods
such as manufacturers, contractors, or businesses.
Functioas: Represeat multiple
Functions: Stock inventory, provide technical support, offer logistics
and transportation services, and manage customer relationships. provide technical expertise. product lines, egotiate çontracts, and
4 Advantages: Wide market eoverage,
Advantages: Extensive market coverage, specialized knowledge of effective sales force. industry knowledge, and cost
industrial products, and customer needs.
Challenges: Margin pressures, competition with manufacturers' direct Challenges: Comission-based cORpeAsatioA, reliance
sales, and maintaining large inventories. manufaçturers for produet availability and guppOrt
3. Wholesalers Considerations for Industrial Goods Distribution
Rol: Purchase industrial goods in bulk from manufacturers or Technical Support: Ipdustrial goods often require technical expertise,
distributors and resell them to industri¡l customers. installatiop, training, 4d ongoipg suppoF
Functions: Bulk purchasing, inventory management, logistics, and Logistics and Inventory Managemeg: Efficient supply chain
providing credit terms to customers. managemnent is crucial due to the volume and specificity of industrial
products.
Advantages: Economis of scale,efficient distribution network, and
financial flexibility for customers. Relationship ManagemeRf Buikding strong relationships wit
industrial customers based oa trust, reiability, nd kesponS0VEDESS.
Challenges: Margin compression, need for efficient logistics, and
competition from distributors and manufacturers. Market Segmentafiog: kdentifying specifie industcis, agplicaions, or
4. Value-Added Resellers (VARs) Qustomer segments that require speçialized indusrial products,
Role: VARs integrate, customize, or modify industrial goods before
Effective distribution of industrih goods involves selecting the ight çhannel
partners and strategies that align with the unique characteristics and needs of
slling thm to end-users. industrial customers. Whether through direct sales, distributors, wholesalers,
Functions: Provide customization services, technical support, VARS, OEMs, or sales agents, industrial goods manufacturers must prioritize
installation, and training. efficient logistics, technical support, and customer relationship
managenest to
Advantáges: Added value through customization, expertise in specifie SUcceed 1n complex demands of industrial
Competitive markets and meet the
industries, and customer relationships. Customers.
141
142
 LIST OF ABBREVIATIONS:
SUMMARY
Elements of Promotion:
Meaning: Various methods usedtto communicate and promote products
AAIDA- Attention, Interest,
B2B- Business to Desire, Action
or services to target
audiences. Business
B2C -Business to
Advertising: Consumer
Objectives: CPA -Cost Per
To create awareness, generate interest,
stimulate demand Acquisition
sales. CPC -Cost Per Click
reinforce the brand, and drive
Kinds of Advertising Media: CPM-Cost Per Thousand Impressions
Traditional Media: Includes TV, radio, print (newspapers,
magazines), outdoor (billboards). CRM-Customer Relationship Management
Digital Media: Includes internet ads, social media ads, mobile CTR-Click-Through Rate
marketing, email marketing. DM- Direct Mail
Traditional vs Digital Media:
Traditional: Broad reach,one-way communication. DMA- Designated Market Area
Digital: Targeted, interactive, real-time engagement. DRTV -Direct Response Television
Sales Promotion: DTC- Direct to Consumer
Meaning: Short-term incentives to encourage purchases or sales of a
product or service. GRP -Gross Rating Point
Types of Sales Promotion: KPI-Key Performance Indicator
Discounts, coupons, contests, samples, loyalty programs, point-of OEMs -Original Equipment Manufacturers
purchase displays.
Personal Selling: OOH-Out Of Home (advertising)
Meaning: Direct interaction between a salesperson and a POP-Point-of-Purchase
customer. potential
Qualities Needed for a Personal Seller: PPC- PayPer Click
Communication skills, empathy, product knowledge, 4 PR- Public Relations
persistence, and ability to build relationships. ROI - Return on Investment
Channels of Distribution for Consumer
Goods: RTB - Real-Time Bidding
Meaning: Routes through which goods pass from
Consumers. producers t0 SEM-Search Engine Marketing
Channel Members:
* Meaning: Entities involved * SEO - Search Engine Optimization
in the distribution process,
wholesalers, retailers, and distributors. such as * SME - Small and Medium Enterprises
Channels of Distribution for Industrial Goods: * SMM- Social Media Marketing
Meaning:
businesses orDistribution
industries. channels for products intended for use SOV -Share of Voice
Proposition
USP- Unique Selling
Proposition
UVP- Unique Value
VARS- Value-AddedResellers

Mouth
* WOM - Word of

143
144
 CHAPTERS
COMPETITIVE ANALYSIS AND STRATEGIES
Competitive analysis is a crucial component of strategic planning for
husinessessaiming to understand their market position relative to competitors
odevelop effective strategies to gain a competitive edge.
comprehensive

A
overview of competitive analysis and strategies:
Conmpetitive Analysis

1. Identifying Competitors:
+Direct Competitors: Companies offering similar products or services
targeting the same customer segment.
+ Indirect Competitors: Businesses offeringalternative solutions that
satisfy similar customer needs.
2. Analysing Competitor Characteristics:
+ Market Positioning: How competitors position themselves in the
market (.g, price leader, innovation leader, niche player).
Strengths and Weaknesses: Assessing competitor capabilities,
resources, market share, brand reputation, and financial health.
+ Strategie Objectives: Understanding competitor goals, expansion
plans, and strategic priorities.
3. Market Share Analysis:
Estimating competitors' market share through sales data, industry
reports, and market research.
ldentifying growth rates and trends to gauge competitors
performance over time.
4. Customer Analysis:
* Understanding customer preferences, behaviours, and perceptions
related to competitors' products or services.
Gathering feedback through surveys, reviews, and customer
Interactions to identify strengths and weaknesses.
SWOT Analysis:
trengths: Competitive advantages, unique selling propositions,and
areas of excellence.
Weaknesses: Limitations, vulnerabilities, and areas where
COmpetitors may outperform.

150