BBA Sixth Semester (Advertising and Sales Promotion) GGSlPU $lleS promotion (Unit 3)

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119
1) (rregUlar/Non-Recurring Activity: Sales omotions .

3.1.
UNIT3

SALES PROMOT ION

Sales Promo tion
I co~tin~ous but occu~ periodically or in re~nse to s~fi~p= c:;
obJ~~ves. They are irregular or non-recurring events rather than
activ1t1es.

from. the
. target
.
·
ongoing

2) Target Action: Sal~s promotions arc designed to prompt a specific action

. audience, such as making a purchase, trying a product, or
part1c1patmg m a contest. The focus is on driving immediate and
measurable responses.
3.1.1. Meaning of Sales Promotion
Sales promotion is very important component of the marketing, especially the 3) Action-Focused: The primary emphasis of sales promotion is on
promotion mix. In actual, it acts like an instant stimulus for prospective buyers. It encouraging custo~ers to take action promptly. This can include malcing
focuses on encouraging the potential customers/retailers to buy the products or a purchase, redeemmg a coupon, or participating in a promotional event.
services of an organisation, by enhancing its value. Sales promotion helps in 4) Motivation and Extra Incentive: Sales promotions provide additional
increasing sales for short-term period; however, it is not helpful enough to motivation for customers by offering extra incentives, such as discounts,
generate long-term customer loyalty. It is designed for potential customers, for special deals, or exclusive offers. These incentives aim to influence
distribution channels and also for sales force of the organisation. buying behaviour.

According to William J. Stanton, "Sales promotion is an exercise in 5) Acceleration Tool: Sales promotions are often used as tools to accelerate the
information, persuasion and influence" . sales cycle or boost sales volume within a specific time frame. They create a
sense of urgency, prompting customers to act swiftly.
According to American Marketing Association, "These marketing 6) Non-Media Activity: While sales promotions may utilise various channels,
~ctivities, other than personal selling, advertising and publicity that_stimulate they often involve non-media activities such as in-store displays. point-of-
consumer purchasing and dealer effectiveness such as display shows and purchase materials, or direct customer interactions rather than traditional
exhibitions, demonstration s and various non-recurren t selling efforts not in advertising methods.
the ordinary routine". ·
7) · Strategic Role: Sales promotions play a strategic role in achieving specific
According to Philip Kotler, "Promotion encompasses all the tools in the marketing objectives. Whether it is clearing excess inventory, launching a
marketing mix whose major role is persuasive communicatio n" . new product, or increasing market share, promotions are aligned with
broader business goals.
Thus, it can be said. that any acti~~ focussed towards enhancing sales as well ti 8) Planned Activity: Sales promotions are carefully planned initiatives that
usage or trial of a product or service, is called 'sales promotion' . It fills in the are integrated into the overall marketing strategy. They are not random
area that is not covered by any other element of the marketing communication or but are executed with specific timing, objectives, and desired outcomes.
promotion mix.
9) Versatile: Sales promotions can take various forms, including discounts,
contests, samples, loyalty programmes, and more. Their versatility allows
3.1.2. Features of Sales Promotion marketers to choose the most appropriate method based on the product, target
Following are the features of sales promotion: audience, and marketing goals.
Features of Sales Promotion 10) Means of . Marketing Communication: Sales ~romotions serve_ as a
means of duect communicati on with the target audience. They provide an
Irregular/Non-Recurring Activity
opportunity for brands to convey specific messages and influence
Target Action consumer behaviour. .
Action Focused _
Motivation and Extra Incentive
Acceleration Tool 3.t.3. · Nature and Scope of Sales Promotion
Non-Media Activity The scope
. . sa Ics promotion encompasses a wide range o f acuv1t1es
of · ·· and
Stra&egic Role
suna1cg1:t atmed at boosting sales increasing brand visibility, and
Versatile Planned Activity i0 uscpnronmgoct_onsurncr behaviour Herc i:rc key aspects that define the scope of
sac
1 ion: ·
Meana of Marketing CommunicatiOII
120
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BBA Sixth Semester (Advertising and Sales Promotion) GGSIPU
'
~
l'!Olllotion (Unit 3)
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ifference between Advertising and Sales Promo on

I) Short-Term Impact: Sales promotion is often designed for short-term
impact, aiming to generate immediate results. It can be particularly effective
3.1,44.• D
-=-. of
~~~~~.:.::..=::.2..,-::;::~7
Sales Promotion
in clearing excess inventory, achieving sales targets, or responding to - Basis Advertising
competitive pressures. Difference Th approach of sales
As there is no direct contact between e ti n may be personal as
h
2) Customer Acquisition and Retention: Sales promotions are employed to l)Approac the sender and receiver of the prollmoasoun · personal. As sales
·t ·5 a non- we
attract new customers as well as retain existing ones. Offering incentives, advertisement message, I I . tion promotions are designed to
discounts, or exclusive deals can encourage both first-time purchases and personal type of ~omm~mca ~ enhance the sales, ii can be
repeat business. Different suitable media vehi~les d ne via direct as well as
the advertisement o
used to convey . indirect aooroaches.
th rosoecuve customers. . sal
3) Product Launches and Introductions: Sales promotions play a crucial role messages to ~ o ards Promoting an increase ID. es,
in introducing new products or services to the market. Limited-time . Advertising is focussed ~wd_ through adding values ID the
2) Objective d' g and remm mg • · the
discounts, free samples, or bundled offers can create initial excitement and informing, persua m ffi . of products and semces, IS
drive early adoption. target customers about ~e o ermgs of basic objective of sales
· lion This · type ,. ·
an orgamsa : . tl influences promotion.
4) Market Expansion: Businesses often use sales promotions to enter new communication mdirec Y
markets or expand their customer base. Special offers can attract attention the sales. . . short- Sales promotion schemes or
and persuade consumers to try a product or service from a brand they may Advertising is beneficial m both . . plans are generated for a
not have considered before. 3) Short-term Tor h adverusmg, 'od, so as to
Long-term run and long-run. oug ll as brand specific time-pen . that
brand awareness as we 'thin the enhance the sales ID ~ore
5) Inventory Management: Sales promotions help manage inventory by . developed'd WIboth the parucu
preference IS . Iar time. There,, be•
accelerating the sale of products, especially during seasonal changes or when which prov1 e these schemes may
there is excess stock. Clearance sales, discounts, and buy-one-get-one offers
are commori strategies. 'l_____ t~~:;:~;o-~:;:~
or2amsa
· tion
th

al . prornouon is
. . .ve of advertising to S ~ without offering extra
·~onl~1~y~:ot~
•an~d~l~on~g;-t;enn;;ben;efirtts;;;tog«eihe~n~efi~c~ial~for:sh:~~rt~-ru:in

6) Brand Awareness and Visibility: Promotional activities, such as contests,

4) Extra It is not the obJectIroduct however, in possible ~ y incentive to
Value add value to th~ p g~nerate extra value or antailers or channel
events, or spons9rships, contribute to increased brand awareness. This certain cases, 1t may custome~ ~
visibility helps strengthen brand recall and fosters positive associations in the al ·ntermedianes.
minds of consumers. v ue. I d users of
NOt only the en d
S) Target . eneric in nature but retailers an
7) Consumer Behavior lnOuence: Sales promotions are strategically designed Advertising _1s. more g ssible to target product, also targeted for
to influence consumer behavior. _ . . Group and hence, It 1s not po salesmen, ~ .
specific groups. sales prornouo_ns. gram is
B roviding extra incentives, businesses aim to encourage specific Sales promouon pro
ing advertising . occasionally by
a{tio~s such as making a purchase, trying a new product, or participating in a 6) Frequency The frequency of ~onv~; is repetitive in desig~edtions deal with poor
10
loyalty program. · message is very_high. ssage can be orgarusal . not frequently and
a smgle me hort sales t 1s
nature, as ass in a very s j ly implemented.
mer Loyalty Pro~ms: Loy~~ pro~~s -are a Part of the sales conveyed to the m regu ar • ·s a costly
8) Custo . pe focusmg on retatmng exisung customers by offering f . Sal prornonon 1 incentives
promobon_ sco ~ or exclusive perks based on their repeat business 7) Cost soan o ume. - : developed es
. . message IS ethod because
rewards, diSCOUII ' • As advert1s1Dg udience is less. rn ( h as free samples,
for mass, the cost per a givendisuocunts free gifts, off-
AJ1iaDCeS and Partnenbips: Collaborative efforts with other
9) Strategic retailers can be pan of ~ sales Pl'Omotion strategy.
extra sc • ffi
season discounts, etc.,) to o er
brands or . . t promotions, cross-selling, or CO-bl'allded initiatives to
This can involve JOJ.Jl
value to customers, cost a lot
to the or2anisation.
mutual benefit. · . In ase the approach of sales
L---••"· 'Jbe scope of sales promotion extends. to both
and ()ffline CIJlllllH""'s'usinesses utilize Varioua platfo .
IR\~;;:n::::;:--+-----:-:::-;:- unicaDOll
8) Feedtt.ck As non-personal type of comm 'hie 10 promotion
C ' ·
1s person ,
al

10) Online m· e channels. . . -store displays and ~ s. IDcluding is IISed in advertising, it is ~ e n c e effective feedback can be
online and. O ~rrunerce we~Slt.CS, JJl ' trad1ttona1 media, &et immediate feedbaCk. the advertiser generated.
~ immcdialely contaet
social media. .onal cainpaago&•
to execute piomob for their auerieskoofusions.
122 BBA Sixth Seme ster (Adve rtisin g and Salcs 5a1es Prom otion (Unit 3)
Prom otion ) GGSIPU
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3.1.5. Process of Planning Sales Promo
tion Programme An annu ~ b~dget for different business
promotion tools is designed by
Sales Promotion Plan th~ . o_rgan1satton. Thus, billions of rupee
s are spend on designing and
Diffe rent types of media are used by mark unlis mg such tools .
eters in any sales prom otion plan. A
typical sales promotion plan includes follo
wing steps: 3) Dev elo~ ing the Plan: !he next step
is devoted to the development of sales
Establishing Objec tives prom otton pl~. Following factors should
be considered while developing the
sales prom otton plan:
i) Size : Determining the size of the prom
Selecting Tools otion tool is very crucial for
effec tive sales promotion. An appropriate
size of the promotion is
requ ired for successful sales promotion
as using huge promotion tool
Devel oping the Plan may lead to improved sales but with fading
rate.
ii) Conditions: It is also essential to draw
the conditions for consumers to
Pre-T esting the Progr amme avail such promotion tools. Either it may be
targeted at every individual
or some specific person or group. Perso
n or group of persons having
UPC codes (or proof-of-purchase seals)
Implementing and Contr olling the Progr amme may avail premiums of the
promotion..
iii) Duration: The appropriate duration
of the sales promotion tool(s) should
Evaluating Resul ts also be decided by the promotion planner.
It should not be too short (s?
that majority of prospects. remain unser
Figur e 3.1: Proce ss of Plann ing Sales Prom ved) or too long (so that 1t
otion diminishes its value).
Programme: Sales Prom otion Plan
iv) Distribution Vehicle: A distributio
1) Estab~shing Objectives: The very n vehicle is also ~ecessary f~r
first step of sales prom otion plan is to serving sales promotion tools to consume~
estab lish sales prom otion obje ctive (s). Prod uct relat . The pro~otton planner is
ed marketing required to select a suitable distribution vehic
as _we~ as pr~m otion obje ctive s help le (according to ~ost, exte~t
in desi gnin g the sales promotion of reach and effect) for each promotion tool.
obJecUves. Diff eren t sales prom otion For example, simple mail,
obje ctive s are estab lishe d for advertisement, package of the product or even
diffe rent targe t mark ets. the store may be used as
distribution vehicle for offering fifteen per
cent off coupon.
For exam ple, sales prom otion obje ctive . · . The timing of offering a particular sales
s estab lishe d for cons umer s may
inc~ude prom pting bulk purc hase s (or v) T muo g. promotion is also
purc hasin g large units ), getting considered before finalising the sales prom · 1
swit cher s back and enco urag ing nonu otion p an.
sers to purc hase orga nisational le different calendar dates are selected by
prod ucts and serv ices. F or examp , brand managers
2) S e l ~ Tools: In the seco nd step,
to offer sales promotion tools and produc u·on, . s ales and
as per the sales prom otion objective(s), distribution departments of the organisatio .
prom otion tools are selected. Diffe rent prom otion n manage theu operations
tools are as follows: as per these dates .
i)Co~ er-P rom otio n Tools: Here , tools
targe ted at consumer- Bud get· The last factor considere
prom otion are selected by the prom otion vi) Sales-P romoti00 d while
plan ner. Fact ors like expense. developing the sales prom• otion plan · • b d f th al
Thi budg et may be developed by estim ~
targc_t market. co~ petitive condition s and is the u ~et e s es
sales prom otion objectives are ·
cons idere d for swta ble tool selection. promouon. s attng the cost
m T individually or collectively. .
. ra de- ~motion :roots: Acco rding to
the obje ctive , mo5t of ~ ·
tun': s trade promonon ~ls _a re selec ted Sum of promotion tool cost (like .cost incurred on discounts or
by prom oti~n planner. ~th1 . ) nd administrative cost (like cost o f matT · t'
partt cula r sales prom onoo pie char t large . premium~ a. ) . multiplied with possi mg, pnn mg and
trade- . st secti on is covered W1. comm unic aung is ble number of units to be
~on tools , wher eas cons'umer-promoti on tools d rncdi1 sold to determine the total cost of the prom .
advcrtlSUlg cove r an otion.
the rest. -T •
iil) BIISinea and Sales Forc e Promotion T ools · 4) cn:- est1ng e o.-ar
t
' h amm e: After developing sales promotion
plan, it is
bl . In orde r to fulfil ce~ essential to pre-t•estav1,
it. Although a list. of fac~ors is • 'd d hil
•SJne and
ss . •
_sales fon::e rclal ed prom otion coUeC
Ulli developing the plan, pre-test highligh~ cons i ~re w e
objectives like. •g its !°e~ ts .and dements . . Se~~ral
leads. motlvatulg sales fon::e to impr ove its perfo
and icwa rdiag CUstomcl'$. orpaisations generally rmance ~ un~ · a&l)C<:ts of the promotion tool
like its size, distnbutton method, suitability
etc., Ille analysed with the help of pre-test. ,
USC J,usiPCSS
forceprcmotic>otools.
..
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124 BBA Sixth Semester (Advertising and Sales Promotion) GGSIPu
, $lleS Promotion (Unit 3)
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5) Implementing and Controlling the Programme: The next step includes the
formulation of implementation and con~l plan so ~ to manage ~very sales Extra Benefits: Different types of benefits at different timeframes are
promotion tool. Two important aspects, ~.e., lead tm~e and sell~tn time are 6) offered to the customers. For example, free samples before th~ actual
covered under implementation plan. The time elapsed m developing the sales purchase, gifts and discounts during the purchase and after-sales-semce after
promotion plan prior to its launch is called Lead time. the purchase, are the few benefits which · are provided to the customers
through sales promotion.
It starts from initial planning and lasts upto final distribution to the dealer
involving several important happenings (like designing and 7) Information of Latest Products: Sales promotion helps in info~g . the
selection of package materials, finalising promotion and sale materials target customers about the latest products and services of the org~sation.
informing and preparing salespersons, allocating distributors and This helps in increasing the sales of such products and serv~c~s. By
producing inventories).
consuming such new products and services, the standard of livmg of
customers increases.
The time elapsed· from launch of sales promotion tool to the sale of
approximately ninety five per cent of the promoted product to the 8) Bel s in Managing Budget: Every customer has li~~tions _on ~eir
consumer is known as Sell-in time.

6) Evalua_ting Results: The last step of sales promotion plan includes the
phi
:~ntv~::s
d
::1::
l budget It is for the customers to utilise fall m pnces
ypromoti~n schemes in order to keep their purchases
within family budget.
evaluation of the sales promotion effectiveness. Sales data, experiments and
consu~er surveys ~ mainly used for evaluating the sales promotion
effectiveness. The findings must be share with all the participants. . . . ns/D" d antages of Sales Promotion
3.1.6.2. Lumtatio isa v . . d ti e Sales promotion is also
3.1.6. Impact of Sales Promotion Every coin has two sides, i.e., positive an neg~ \;tions as well They are
no exception. It has several disadvantages or IIll ·
Sales promotion· has both JX)sitive and negative impact on businesses and
customers. given below: . romotion activity is an integral
l) Increased Price Sensitivity: Smee, sales p ers begi·n to wait for
. d al the consum .
Part of marketmg an s es, with brand loyalty are no exceptt?n.
3.1.6.1: Importance/Advantages of Sales Promotion promotional deals. Branded goods . sales monsoon sales, festive
The maJ~r advantages of sales promotion are briefly explained below: Hence, they wait for discounts, stock c1eanng '
1) Getting_New Customers for Existing Product: Every organisation strives promotion deals, etc. . . fi ses less on
to a~uU:C °:1°re customers for their existing products. The job of the . bed· If an orgarusatlon ocu .
orgarusatton 1s to extend incentives at the right time so that new customers 2) Quality Image may become T ~ b~d image. Its quality image m the
are attracted to the existing product. · promotion, it may adversely affect its
2 public may become poor. Th are issues with
3 . Doubtful: ere
) Stirn~ating Middlemen: .It \s absolutely necessary to continuously motivate ) Merchandising Support from Dealers ts th benefit of discounts to the
~e- mi~dlemen to enh~ce the sales of the organisation. This is done by the dealers as well They may not pass ?n t s;ace to store the goods, the
g.1vmg incentives, discounts, etc.
customers. As the; may not have suffic1en th benefit offered is less than
3) Motivating.Dema·~·d· d ·-;-- · ·· · · d and for od · their shops · tional
orbe einterested in orgarusa
the uct
pr may not be popular m .
n unng Off-season: It is a proven fact that em air
seas~~al products f~~ after the season gets over. For example, s~~s oflike
effort required, the dealer may not

I conditioners and ceiling fans declin afte

M b .) 1 . e r summer
(except in c1t1es
um ai . t IS the objective of sales promotion to try and see that the s
do not suffer too much and some u .., . . . . ed
ru,omuty 1s mamtam .
ales
.
Products.
fits accroe because of the
4) Sbort-~enn Orientation: Short~tenn ~n~ese methods are not properly
Promotion activities. But someumes.
applied and implemented, then can have op
sal
es
posite effects on the future of the
.
4) Motivati.n g the Sales Representatt . Th al representatives of the organisation . •
. . necd to be motivated al ves. s es·s because they play •a
eTh'
organisation S) · 0 r Existing Ones: The orgarusatton
. . . ways. 1s 1 • suit 1n ~~cting New Customers at th~ Cosprotmotional offers. It should not end
ve">'. i~portant role in increasing sales. Sales promouons re
mouvaung sales people. •- to be very careful while ma}cing ·
hlltting the sentiments of existing customers.
5) Fa~lng the Competition: Salca promotion helps in designing new and
different Fo., ffers a discount on its products only for
new ~Pie, if an organi~ti~n °customers may feel that they have been
uruque ways to enhance sales. Different competitors develop ,
methods to deal with competition, i~t~~ers, then the ex1snng tO make such offers on personal basis so
that OllJ. t ts therefore necessary ff
~ "°II-customers know about these O ers. . ·
126 BBA Sixlh Semester (Advertising and Soles $1111 Prolllotion (Unit 3)
Promotion) GGSIPU 127
6) Easy Imitation: In case of bein
g highly p~u ctiv ~, the sale s prom sates prom otio n is used to figh t com peti tors , retain
otion curr ent consumers, draw
techniques used by an organisation can be easily cop1
~d by the competitors.
new one s, and seiz e poss ibili ties that
arc identified through market
Competitors, generally, imitate successfu ~c h. It con sists of inte rnal and
l sales promotions. exte rnal actions aimed at increasing
sales
7) Lower Margins: In the absence
of exceptional benefits (of the product) for the com pan y.
that of the competitors, customers can from
be com pell ed to purc hase the product
only in case of lower prices during prom Public rela tion s, adve rtisi ng, publicit~
otion. How ever , it results in lower , and s~i
al sales events arc exa~ ples
profit margin as well . of outside sale s prom otio n effo ~s. Wm dow
display~, produc~ and promotional
· l d'isp lays and prom otio nal prog
matena • rammes like preOllum rewards and
3.1.7. Sales Promotion and Marketing contests are exam ples of insid e sale . . ..
Mi x s promotion acttv1t1es.
Businesses utilise the four primary com
ponents of the clas sic promotional mix . com mon form at for sales promotion
give their service or product meaning to
feel and act while they make purchase s have ~
s. Discount
l) Adnrtising: Businesses spend mon
and persuade cons ume rs to purchase
large audience at once. Advertisements
newspapers, via direct mail, on radio,
in magazines, or online.
it:
ey to mar ket thei r good s or services
to a
are frequently seen on television, in
Discounts are a
:::p ~:: ~:r c:~~~:: and thei r decision to buy it might be
the kind of savi ngs and whe re they are
offered.
s. Customers
influenced by

2) Sales Promotion: Sales prom . .

otions are tran sien t inducements
persuade consumers to purchase an item meant to Discounts on pric e ("on sale items") nd bonus packs ("bulk items") are the
or service. For example, discounts a acks are promotions where the
and rebates, as well as public games and two mos t pop ular type s of disc~u_n
competitions. ts. B;;c~a~e whereas price discounts
customer gets extr a for the on~mal_ are
3) Public relations: This kind of \al am~unt by a specific percentage.
advertising informs the public abou sales that are redu ced from thet.r ong
products and reputation of a business t the Several busi ness es use vari ous disc t . th ir advertising in an effort to
. Pres s releases and news conferences ounts m e
are two examples. get viewers to purc hase thei r goods.
.
4) Direct Marketing: Direct mark . k . mix which consists of four
eting is mor e dire ct and involves cont Sales promotion is a cruc ial element th
of e mdar
clients directly acting . l e an eung u·on' The following points
promotions.
by mail, phone calls, e-mail, cata
logues, and in-person
key components: prod uct, pnce , P ac • . thprom o .
b oader marketing mix:
highlight how sales promotion interacts th
l) p wi e r the product aspect of the
.
Along with advertising, direct marketing
roduct: Sale s promotto n directly influ . ence
hli hts
specific product fiea~reS,
, pers onal selling, publicity , and publi marketing mix. It can be used to
relations, sales promotion is a crucial c big lexi sting products. Promottonal
introduce new products, or boost tl_ie
promotion uses focused marketing mes
part of the larg er promotional mi~-
Sales sales O r exclusive offers can create
activities like prod uct samples, g1ve
sages for a set and limited time to incre awayS, 0
cust ome r demand, spark market inter ase interest and driv e consumer engagem
est, or imp rove prod uct availability· ent. _ .
· . . demand
2) Price: Sales promotion often mvo ricing strategies to snmulate . .
It uses both media and non-media chan lves P_ . • are common promotton
nels. Contests, discounts, freebies, los~ Discounts, coupons, rebates, and ~~ta al
leaders, point-of-purchase ·displays, lc~~ cm! ent of the marketing mix.
premiums, prizes, product samples, tactics that directly impact the pncm
refunds are examples of sales promotion an g ·u·poe consumers and encourage
. Th
. ese strategies aim to attract Price-sens1 v
. . unmediate purchases.
The se marketmg campaig ns may target salespeople, end user distributors, .
amo ng othe r participants in the supp s, or wn as 3) Place: Plac -
e refers to the distribuuon chann els and locanons where products
ly chain. The se campaigns ar; ::e es romotion can be emp loy~ to
consumer sale s promotions when they sa)es are made available to customers. Sal
are directed at consumers. influence the distribution channel pfl ring incentives to retailers,
promotions, on the other hand, are dire by o e otions such as discounts for
cted at retailers and wholesalers. wholesalers or other intermediaries. Trad
e pro~ bilit y' in specific locations.
Sale s prom otio n is a broa d term . .
'
for a variety of com mum cation onsu
. s
strategie retailers, ca:ienhance product visibility and av
.
JJlers, f the overall promouon IDlX- .
used to offer incentives or added 4) Pro1not1
· a subset O
valu .
and other organisational customers in e to retailers; wholesal~rsi/aw•Y· 'fhe on: Sale s promotion 1s.
While adve rtisi ng personal selhng, d ublicity contribute to crea ting
order to generate sates _ng -st in it. or awarene88 anal p romotion specifically focuses
goa ls cou ld be to prom ote a trial . on ar • d •
of the prod uct, generate 1nte ,v urcJ,8"
int-of·P to0ls
age
and buil ding bran 1'? 'It com s es P
plements other promouon • al
enco urag e real purc hase s. Cou pons &cl ivi~ latin g immediate ~cuoaln:
, sam ples , prem ium s, Po onB lh0 ntive s to cust omers, retailers, and
(PO P) disp lays , com peti tion s, reba other by Prov idin g addiuon ince
tes, and swe epst akes 111'0 8111 8
takcbolden. -
frequently used in sales promotion.
·
128 BBA Sixth S~mestcr (Advertising and Sales Promotion) GGSIPU SaleS Promotion (Unit 3)
129
3.1.8. Relationship Between Sales Promotion and distribution,_ and even w~o to deliver it to arc all greatly influenced by the
Advertising rarget ~ud1_enc~ selection. By using this strategic approach the
The relationship between sales promotion and advertising lies • . commumcat1on ts made to match the traits need d ti '
10 . , s, an pre erences of the
complementary roles within the broader promotional mix, working t tbeir intende d aud 1ence.
achieve overarching marketing objectives. In the communicat· o~etber to
. d d .. ions industry
promotion anf tha vertJsm~ are _of utrnos~ !mJ??rtance. Although it is only • Moreover, the notion of buyer-readiness stages recognizes the stages that
component o e promotion mix, advertJsmg is frequently • . one
the creation of the marketing mix as a whole. given importance in customers usually go thr~ugh when they are considering making a purchase.
Awareness, knowledge, hke, preference, conviction, and finally the purchase
Du~ t? its "'.idespread awareness, it has become a si nificant • arc some o~ these stages. Every stage ~enotes a certain degree of preparedness
topic m Indian society. "The coordination of all sen! . . ti social and cultural or propensity towards the good or service. ·
channels of information and persuasion to facilit tr ithm ated efforts to set up
. ". d fini . a e e scale . of .a good or A smart marketing communicator guides their target audience across the
service is one e tion of promotion. Most of the tim
be a complementary element in a marketing mix In d e, promoti_o n is meant to buyer-readiness continuum by carefully crafting messaging and strategies that
whole marketing mix strategy jud ments abou~ or e~ to effectively support a correspond with the particular stage of the audience's development.
and integrated with decisions' abo~t the re t /:motion ~ust ~ coordinated Communicators may provide infonnation that resonates, informs, and
those pertaining to products and brands. s o e marketing mix, especially persuades consumers toward a favorable choice and purchase by knowing
where they are in the process.
There are four fundamental 1) Determining the Communication Objectives: After defining the target
follows: components to the promotion mix. They are as
audience, the marketing communicator needs to determine the desi,red
l) Advertising: It is the strategic c · · . response. Of course, buying is frequently the best line of action. However, a
personal channels, typically u~=uruc~tion o~ information through· non- lengthy process of customer decision-making leads to a purchase. The target
01'ganiz.ation serves as the source ~ P:3"1d media, where the sponsoring audience's current position and the desired state of ~change -•must • be
aims to reach a broad audi .dThis widely employed promotional method understood by the marketing communicator. He or she-must ascertain the
and persuasive messaging ~~ an create awareness, often employing creative customer's readiness to purchase in order to do this. ·
uence consumer perceptions and behaviour.
2) Personal Selling: Personal sellin . 2) Preference: The communicator should concentrate on fostering consumer
information through direct . g m~olves the one-on-one dissemination of preference if the target audience is pleased about the product but does not
sponsoring organisatio d mte~ctions between representatives of the choose it over alternatives. To influence the audience's decision in the
allows for tailored co n an . po~ntial cu~tomers. This pers~malised approach product's favor, this entails emphasizing its benefits. value, and other
of individual needs :iurucatio~, relationship-building, and the addressing positive attributes. The communicator can measure the audience's
information in pers~nal ~l~~sonng organisation is the primary source of preferences prior to and following the promotional efforts in order to
.
evaluate the campaign's efficacy. This assessment makes it possible to
3) Sales Promotion: The b .
channels aside f roadcast of information through a vanety of fully comprehend how the messaging affects customer views, allowing
encoura;es custo~~: per~onal selling, advertising, and publicity, that for the modification of future campaigns in light of the new knowledge.
promotion. pure ase and dealer effectiveness is known as sales 3) Conviction: The product may be preferred by the target audience. but they
may not become convinced to purchase it. Because of this, some consumers
4) Publicity: Disseminating · £ . al might think that an Infiniti is a better car than another, but they might not be
channels w'th . . m ormation through personal or non-person
1 out rece1vmg paym . • tion-the positive that's the right choice for them. Convincing a potential customer that
organisation is not the s . ent directly from the orgarusa the product is the best option is the communicator's responsibility. Infiniti
ource-is Called publicity. .
generated preference and conviction by combining the promotion-mix tools.
3.1.9. Target Audience Promotions praised the Infinity's superiority over competing products. Public
defined target relations campaigns and press releases emphasised the car's cutting-edge
A marketing communicator starts th . . .
audience, which could include dee· . cir plan with a clearly . fluencers in capabilities. Salespeople from the dealer infonned customers about after-sale
the buying process, or new cu::omnc-makTber~, curred~t uesersrn,:Yn consist of care, alternatives, and value for the money.
·
indi VI·dual s, collectrves, rs. 1s au 1enc bl'c The
4) n-._,_
targeted public d' th broader pu • ·. .:....~ Message: After determining the intended audience reaction, the
communicator's decisions about what toau icnces,. orte ebow to co11unun1c:1er ~ a t o r turns their attention to developing a powerful message. The
·i. h . . comrnumca , use ,o 0
abouid ideally adhere to the AIDA paradigm, which aims to hold the
1 w en 10 commurucate 1t, Which platforms or channels 10
 promotion (Unit 3)
130 BBA Sixth Semester (Advertising and Sales Promotion) GOSIPU s,JfiS 131
Promote and market their good b ·
audience's attention while generating desire, action, and grab
attention. delllan. d , Iead'mg tO increase
to · S, US!nesses can create heightened
d profitab T Thi
k ~ tty.
Although not every message can lead a . consumer from awaren 1
ess to amic
dy_n . relation ship betwee s approach underscores the
purchase with ease, the AlDA ~ewo rk 1s a useful tool for . . n mar eting efforts, consumer demand, and
develop ing ncing strategi es, ultimate
engaging and successful commurucauons. Pwithin
ly shaping the cc ·
the marketplace. onollllc success of a product
According to the AIDA model, a successful message should,
in practical
tenns, attract the audience's attention, arouse their curiosity, generat S) Brand Royalty: One of the primary objectives of product promotion ls
e a desire to
for the good or service, and eventually inspire the audience
to perfonn a cultivat~ br~nd loy~lty _within.the target market. This encompasses
certain action, such making a purchase or interacting with the not only
brand. This generating mtereSl in ~e specific product being advertised but also
fostering
framework u~derscores the essential qualities ?f a well-structured re~a~ sales and affiruty for ~t?er offerings within the brand
message portfolio.
that not only mfonns but also persuades and guides the audienc Bu~l~ng brand l~yalty and ~nv1~g increased sales across all product
stages of the decision-making process. e through th s is
e fa~11itate~ by vanous_ strate~es, including the provision of discoun
ts on
5) , Mediums: The ~arket i~g channe ls that marketers use pnces, dir~t promotion of items to consumers, and maintaining
to publicize their diverse
. produc ts and service s will depend on the target market they fonns of direct communication with the audience. By offering
F have ch incentives
or example, 1'f mark et researc h shows that the target audience osen. such as discounts, promotions, and engaging in direct commu
nication,
prefers to businesses aim to create a positive and lasting connection with consum
learn about new produc ts online above all other advertising ers,
then one, . med· _. •· encouraging them to consistently choose and advocate for the
s promot tona1 plan should use the Internet as its 1ums, brand, thus
d . . d' Pr . · · - contributing to long-term brand loyalty and sustained sales growth.
aR ve~1s~ng me, mm. f omo~1ons can also make use of a mix pnmary
of media.
estnctt ng ones use o media to those that produce results is advised
and
one.should modify their spendi ng according to how much time
their t~get j.1.10. Setting Objectives
~ud_1ence spends on each platfon n. For example, if the market .()nee media planners have identified the target audience _for.a medi~
research plan, the
md1cates that the target audience uses radio 15% of the time next critical step involves setting objectives. These obJecuves
and prefers aruc~late the
the Interne t 45~ of the time, one should use those percentages extent to which the target audience needs to be exposed to an~ enga~e
as a guide "".1th brand
to determ ine how much of one's budget to allocate to each messages to fulfill the overarching advertising and markeun~ obJectiv
advertising es. ~e
mediu m if one decide to include radio iii promotional campai communication goals serve as benchmarks, guidin_g the ~la~mng
gn. and execuuon
6) Competition: The approach to selling products is profoun f the media strategy. For example, a communicauon obJecUve can
by the compe titive landsca pe within one's target market. A
dly influenc; d ~ course of three months, 75% of the target demographic will be that, over
encounter th,e
strategically b~d at least once in television ads. Within the first month of a
crafted promo tional marketing strategy aims to provide the busines new brand s
s with · troduction 25% of the target audience is expected to develop a
a compe titive edge, ultimat ely enhancing its market share. To preferen c~ ~or
achieve this m • . • b' ·
objecti ve, thorou gh researc h on the competition's outreach to it, according to another commurucauon A hi rarchy of adverusmg
the intended o. ~ec;ve. fro e an older Advertising
audien ce is impera tive. By understanding how competitors objectives, such as the one developed by B111 arv~y m
are engaging Research Foundation (ARF) model can help explam the many communication
with the target demog raphic, businesses can glean insights
to inform the
develo pment of more efficie nt and effective marketing strategi goals. There are ten levels in the extended ARF model.
es. This
involv es not only assessi ng the competitor's promotional tactics
but also ·
scrutin ising their produc t offerings and custome!. engag~ment
methods. Media planning is_ es~~al ly aff~cted by the first three target levels from the
and advertising exposure. The
The goal is to identif y areas of improvement and mn~~at1on bottom: vehicle distnbuuon, vehicle exposure, . f . of a magazine or
th~t can set .
the busine ss apart, leading to a stronger market pos1tio~ and
mcrea~d coverage of a media vehicle, sueh as the quanuty o copies h
able to watc a ce n television
rtai'
consum er prefere nce. In essenc e, a well-designed promot10nal_
marketmg newspaper issue or the numbe_r Of h_ou.seholds
. Th quantity of people who are
strateg y not only respon ds to the cor:iipetitive land~cape but actively
seeks channel, is refe":d to ~ vehicle distributio~.of ;ople who watch
to outper form it, positio ning the busmess for sustamed success exposed to a media vehicle such as the ~oun television or
. The term "advertising
read magazines is referred to as l vehicle ::':: ~nt or
7) Pricing: The retail price a product can command is intrica~ exposure" describes bow many peop e see an commercial. -
ely tied ~o-~e
deman d generated within the target market. If promotional
act1V1Ues .
successfully drive up demand for the p~uc~ b~sinesses A crucial component of m~~ strategyure is to understand the difference between
r:iiay have th~ articularly when it comes to media
flexibility to increase the selling price. This h1ghhghts the vehicle exposure and advert1Smg expos ' P
importance 0 television viewer may watch
discovering and implementing effective marketing strategic~ with editorial content. For ex~pl e, no~ eve1tudies show that
to reach and just 68% of
resonate with the desired audience. By identifying the _most tmpactf
ul ways every commercial that airs dunng th~ s ow tll
television viewers actually pay attention to e advertisements that arc aired
132 BBA Sixth Semester (Advertising and Sales Promotion) GGSIPU

between shows. Vehicle exposure does not ensure that

the adv~rtisement has
been watched; rather, it is just a chance for ~he audience
to see 1t. ~n actuality,
vehicle exposure is frequently used by media planners as
a stand-m for direct
measurement of advertising exposure. ·
A d'ifferent set of communication objectives in media plann
ing focuses on lead
generation, sales, recall, and persuasion of advertisem
ents. Advertising
persuasion measures the emotional impact of the adve
rtisement, whereas
advertising recall measures its cognitive impact.
The ad's behavioral
consequences are represented by leads and sales. A media
plan can clearly state
each of these components as a communication objective.

For example, a communication goal could state that the camp

aign's objective is
to create a certain number of leads, say 3000, or that 50%
-of the target audience
should remember a radio commercial throughout the camp
aign month. These
objectives, which specify. the intended results in term
s of the audience's
.cognitive, . affective, and l?ehavior~l reactions to the
advertisement, aid m
directing.the media planning·process:

3.2 . EX ER CIS E

.3~2.1. ·.~-. Sh~rt ~nswer Type.Questions

1) _Differentiate ~twe en Advertising and sales promotion
.
2) What are the ~dvantages of sales promotion?
3) . State the limitations of sales promotion.
4) Describe the relationship between advertising and sales
promotion .
5) Highlight the concept of setting objectives. .

3.2.2. Long Answer Type _Questions

1) State the meaning and importance of sales promotio~.
2) Explain in detail the nature and scope of sales promotion
.
3) Elaborate the concept of sales .promotion and marketing
mix.
4) Giv~ a detail description of target audience with refere
nce to sales promotion.
5) Describe the impact of sales of promotion.