In this post we have cover Gauahti University BCom 2nd Semester Principles of Marketing NEP FYUGP Notes Unit- 5: Promotion and Recent Developments in Marketing Important Notes. Which can be very useful during your preparation. Use this notes as reference any score good marks in your examination.
UNIT – 5: PROMOTION AND RECENT DEVELOPMENTS IN MARKETING
1. What do you mean by promotion? Explain the need for promotional activities. What are the various methods/components of promotion? Distinguish between advertisement and publicity. 2019,2022
ANSWER: Promotion refers to the set of activities and strategies a business uses to inform, persuade, and remind potential customers about its products or services. It is a critical element of the marketing mix and is essential for achieving business objectives.
Need for Promotional Activities:
1. Awareness: Promotions create awareness about a product or service among the target audience.
2. Persuasion: Promotions aim to persuade potential customers to make a purchase by highlighting the benefits and features of the product.
3. Competitive Edge: In a competitive market, effective promotion can differentiate a business from its competitors.
4. Building Trust: Promotions can help build trust and credibility for a brand or product.
Various Methods/Components of Promotion:
1. Advertising: Paid, non-personal communication through various media such as TV, radio, print, online, and social media.
2.Sales Promotion: Short-term incentives like discounts, coupons, contests, and loyalty programs to encourage immediate sales.
3. Public Relations: Managing a positive image through media coverage, events, and community relations.
4. Personal Selling : One-on-one communication with potential customers, often used in high-involvement purchases.
5. Direct Marketing: Direct communication with individuals via emails, mail, or telemarketing.
6. Social Media Marketing: Utilizing social platforms to engage and interact with the audience.
7. Content Marketing: Creating and distributing valuable content to attract and engage the target audience.
Distinguish between advertising and publicity
| Basis | Advertising | Publicity |
| Meaning | The activity of generating advertisements of products and services to commercialize them is known as Advertising. | The activity of providing information about an entity, i.e. a product, an individual or a company to make it popular is known as Publicity. |
| Given by | It is done by company and its representative. | It is done by third party. |
| Cost | It is a paid form of communication. | It is unpaid form of communication. |
| Credibility and reliability | Credibility and reliability is more as compared to publicity. | Credibility and reliability is less. |
| Control | There is complete control over advertisement. | There is no control over publicity. |
2. What is promotion mix? What are their importances? Explain the factors influencing promotional mix. 2021
ANSWER – The promotion mix, also known as the marketing communication mix, refers to the combination of promotional tools and strategies that a company uses to communicate with its target audience and promote its products or services.
It typically includes the following elements:
1. Advertising: This involves paid, non-personal communication through various media channels such as TV, radio, print, online, and social media to reach a large audience.
2. Sales Promotion: These are short-term incentives like discounts, coupons, contests, and special offers designed to stimulate immediate sales or customer action.
3. Public Relations: PR activities aim to maintain a positive image of the company through media coverage, press releases, and events, as well as managing any potential negative publicity.
4. Personal Selling: This involves one-on-one interaction between a salesperson and a potential customer, often used for complex or high-value products or services.
5. Direct Marketing: Direct marketing involves reaching out to individual customers through methods like email marketing, telemarketing, and direct mail to establish a personalized connection.
6. Sponsorships and Events: Companies often sponsor events or participate in trade shows and exhibitions to increase brand visibility and connect with a targeted audience.
7. Content Marketing: This involves creating valuable content such as blogs, videos, and articles to engage and educate the audience, building trust and brand authority.
8. Social Media Marketing: Leveraging social media platforms to engage with customers, build brand awareness, and promote products or services.
The importance of Promotion Mix:
1. Increased Sales: A well-planned promotion mix can boost sales by attracting more customers.
2. Brand Awareness: It helps in creating and maintaining brand recognition and awareness among consumers.
3. Competitive Advantage: Effective promotion can set a company apart from its competitors in the market.
4. Customer Engagement: It allows businesses to engage with customers, fostering relationships and loyalty.
5. Product Information: It provides essential information about products or services to potential buyers.
6. Targeted Marketing: Promotion mix enables businesses to target specific customer segments.
7. Revenue Generation: Successful promotion can lead to higher revenue and profitability.
8. Adaptation to Market Changes: It allows companies to adjust their marketing strategies in response to changing market conditions.
Factors Affecting Promotion Mix
There are many factors which influence promotional mix and they are known as product market factors.
1. Nature of the product: Different product requires different promotional mixes. Consumer goods and industrial goods require different strategies. Consumer goods are sold through advertising, personal selling and displays. But industrial good require more personal selling.
(a) Product complexity: If a product is technically sound and complex in nature then it requires personal selling. For example, Industrial products. On the other hand if the product is simple we can go for advertising. For example, most of the FMCG products.
(b) Brand differentiation: Promotional mix is affected by brand differentiation and the degree to which the brand is differentiated from competitor’s brand.
(c) Purchase frequency: If buyers buy frequently a product, such as soap, tooth paste etc. the marketer will invest a good amount on advertising to push competition brands.
2. Nature of the market: Different market requires different promotional mixes and strategies. In industrial market, advertising plays a more informative role then the persuasive role for industrial buyers. Personal selling emphasizes on two roles, i.e. information and persuasion in the industrial and consumer’s market.
3. Stage in the product life cycle: The promotional product mix varies within stage in the product life cycle. The nature of demand varies according to the stages in the life cycle. During the introductory stage, the customers do not realize the qualities of the product. Here, information about the product and its benefits are made known to the buyers. In this stage, more importance must be given to personal selling and trade shows. In the growth stage, customers know the qualities of the product. Hence to stimulate demand, advertising must be increased. In the maturity stage, sales and profits decline and hence all the promotional activities should be cut down.
4. Market penetration: Here the product is already known to the buyers. In that situation, a sustaining promotional strategy is suitable. A brand has insignificant market penetration means it has a small market or struggling market. Market size and location: Product’s market size and location also influences the promotional mix. In narrow market, where the numbers of potential buyers is small, direct mail is used. In a broad market advertising is used.
5. Characteristics of buyers: The characteristics of prospective buyers strongly influence the promotional mix. Experienced professional buyers such as industrial purchasing agents need personal selling. Inexperienced buyers need advertising. Some buyers give importance to time, some to purchase of products, buyers act according to the influence of friend, relatives etc.
6. Distribution strategy: Companies fighting more through distribution for establishing their brands, invest more money on personal selling and advertising. Companies which have already established their brand in the market have to invest only a small amount in personal selling and advertising.
7. Pricing strategy: Pricing strategy influence the promotional mix strategy. If the brand is priced higher than the competition, more personal selling is needed to get a middleman to stock and push the brand. If the brand is priced lower, little promotion is needed.
3. Discuss the various elements of promotion mix. How is a Sales promotion programme designed? 2017
ANSWER – There are four elements of promotion mix:
a) Advertising: Advertising is a non-personal presentation of goods, services or idea. In advertising existing and prospective customers are communicated the message through impersonal media like radio, T.V., newspapers and magazine. It involves transmission of standard message simultaneously to a large number of people. The message transmitted is known as advertising.
b) Personal Selling: Personal selling is the process of assisting and persuading the existing and prospective buyer to buy the goods or services in person. It involves direct and personal contact of the seller or his representative with the buyer.
c) Publicity: Publicity is a non-personal non-paid stimulation of demand of the product or services or business unit by planning commercially significant news about the services or business unit by planning commercially significant news about in the print media or by obtaining a favorable presentation of it upon radio, television or stage.
d) Sales promotion: Sales promotion consists of all activities other than advertising, personal selling and publicity, which help in promoting sales of the product. Such activities are non-repetitive and one time offers. According to American Marketing Association, sales promotion include, “those marketing activities other than personal selling, advertising and publicity that stimulate consumer purchasing and dealer effectiveness, such as point of purchase displays, shows and exhibitions, demonstrations and various non-recurring selling efforts not in the ordinary routine.”
Designing a sales promotion program involves several key steps to ensure its effectiveness.
1. Set Clear Objectives: Start by defining specific, measurable objectives for the promotion, such as increasing sales by a certain percentage, clearing out excess inventory, or attracting new customers.
2. Know Your Target Audience: Understand your target audience’s preferences and behavior to tailor the promotion to their needs and interests.
3. Choose the Type of Promotion: Select the type of promotion that aligns with your objectives and audience. Common types include discounts, coupons, contests, buy-one-get-one deals, and loyalty programs.
4. Determine the Budget: Set a budget for the promotion, considering costs like advertising, discounts, and prizes for contests.
5. Select the Timing: Choose the right time to launch the promotion. Consider seasonality, holidays, and your industry’s sales cycles.
6. Create Compelling Offers: Craft attractive and compelling offers that will grab your audience’s attention. Make sure the value is clear to customers.
7. Promote the Promotion: Develop a marketing plan to promote the sales promotion. Use various channels, including advertising, social media, email marketing, and in-store signage.
8. Training and Coordination: If your promotion requires salespeople to explain it to customers, provide them with training and coordination to ensure consistency.
9. Monitor and Measure: Throughout the promotion, closely monitor its performance. Track key metrics like sales, customer engagement, and return on investment.
10. Feedback and Adaptation: Gather feedback from both customers and employees. Use this feedback to make improvements for future promotions.
11. Evaluate Results: After the promotion ends, evaluate its results against the objectives you set initially. Determine whether it met your goals and learn from the experience.
12. Customer Retention: Consider how the promotion can lead to customer retention and continued sales beyond the promotional period.
13. Legal and Compliance: Ensure your sales promotion complies with all relevant laws and regulations, especially if it involves contests, sweepstakes, or discounts.
14. Documentation: Keep records of the promotion’s design, implementation, and results for future reference and analysis.
4. What are the commonly used media in advertising? State their advantages and disadvantages. 2014
ANSWER – Commonly used media in advertising include:
1. Television:
– Advantages: Wide reach, high impact due to audio-visual content, ability to target specific demographics.
– Disadvantages: High cost, ad avoidance, difficulty in tracking ROI.
2. Radio:
– Advantages: Cost-effective, good for local targeting, can reach a captive audience during commutes.
– Disadvantages: Limited visual appeal, lack of precise audience targeting.
3. Print (newspapers and magazines):
– Advantages: Tangible, good for detailed information, can be targeted by publication.
– Disadvantages: Declining readership, limited interactivity, relatively high production costs.
4. Outdoor (billboards, posters):
– Advantages: High visibility, constant exposure, good for brand awareness.
– Disadvantages: Limited message length, passive audience, difficulty in measuring effectiveness.
5. Digital (online ads):
– Advantages: Precise targeting, cost-effective, measurable, interactive, and dynamic.
– Disadvantages: Ad-blockers, banner blindness, potential for ad fatigue.
6. Social Media:
– Advantages: Wide reach, interactive, real-time engagement, can go viral.
– Disadvantages: Platform algorithm changes, privacy concerns, potential for negative comments.
7. Search Engine Marketing (SEM):
– Advantages: Targeted to user intent, measurable ROI, flexible budgeting.
– Disadvantages: Competitive bidding, ongoing management, dependency on search engine algorithms.
8. Email Marketing:
– Advantages: Direct communication, cost-effective, personalized, trackable.
– Disadvantages: Risk of ending up in spam, email fatigue, opt-out rates.
9. Influencer Marketing:
– Advantages: Authenticity, access to niche audiences, potential for trust.
– Disadvantages: Dependence on influencers, authenticity concerns, fluctuating costs.
10. Content Marketing:
– Advantages: Provides value, builds authority, good for SEO, fosters customer loyalty.
– Disadvantages: Requires ongoing content creation, time-consuming, uncertain ROI.
5. Explain the concept of personal selling. What are its advantages and disadvantages? 2015, 2019
ANSWER – Personal selling is a marketing strategy in which a salesperson or representative directly interacts with potential customers to persuade them to purchase a product or service. It involves one-on-one communication, either face-to-face or through virtual means, to build relationships, understand customer needs, and provide tailored solutions.
Advantages of personal selling:
1. Personalization: Salespeople can tailor their pitch to each customer’s specific needs and preferences, increasing the chances of making a sale.
2. Relationship Building: Personal selling allows for the development of strong, long-term relationships with customers, fostering loyalty.
3. Immediate Feedback: Salespeople can gather immediate feedback, addressing objections and concerns in real-time.
4. Product Demonstration: Complex or innovative products can be effectively demonstrated and explained.
5. Cross-Selling and Upselling: Salespeople can identify opportunities to sell related or upgraded products, increasing revenue.
6. Trust Building: Face-to-face interactions can build trust and credibility, which can be vital in high-involvement purchases.
Disadvantages of personal selling:
1. High Costs: Personal selling can be expensive due to salaries, training, and travel expenses for sales teams.
2. Limited Reach: It may not be feasible for businesses with a vast customer base, as it’s time-consuming and may not cover a large geographic area.
3. Inconsistency: The effectiveness of personal selling can vary depending on the salesperson’s skills and abilities.
4. Time-Consuming: It’s a time-intensive process, especially for complex sales, which can limit the number of customers a salesperson can reach.
5. Resistance: Some customers may be averse to aggressive sales tactics and perceive them as intrusive.
6. Training and Management: Effective personal selling requires ongoing training and management to ensure the sales team represents the brand appropriately.
6. What is Sales promotion? Discuss objectives and importance of sales promotion. Distinguish between personal selling and advertisement. 2018,2022
ANSWER – Sales promotion is a marketing strategy aimed at stimulating consumer or trade buying interest in a product or service for a limited period of time. It involves various techniques and activities designed to encourage immediate purchase or increase overall sales. The primary objectives and importance of sales promotion include:
Objectives:
1. Increase Sales: The primary goal is to boost sales in the short term by offering incentives or discounts to customers.
2. Customer Acquisition: Attract new customers and expand the customer base through enticing offers.
3. Customer Retention: Encourage existing customers to make repeat purchases and build loyalty.
4. Product Awareness: Raise awareness about a product or service through promotions and attract attention.
5. Inventory Clearance: Dispose of excess inventory or seasonal products by offering discounts or incentives.
6. Differentiation: Set the product apart from competitors and create a unique selling proposition.
7. Launch Support: Promote a new product or service during its initial stages to gain attention and market share.
Importance:
1. Boosting Sales: Sales promotions can provide an immediate increase in sales volume, especially during slow periods.
2. Creating Urgency: Time-limited promotions encourage customers to act quickly, which can help clear excess stock or meet sales targets.
3. Building Brand Awareness: Promotions can introduce new products to the market and increase overall brand recognition.
4. Customer Engagement: Discounts and incentives can engage customers and generate excitement.
5. Competitive Advantage: Well-executed promotions can give a business a competitive edge in the market.
6. Customer Loyalty: Loyalty programs and repeat purchase incentives can foster long-term customer relationships.
7. Targeted Marketing: Sales promotions can be tailored to specific market segments and demographics, reaching the right audience.
Differentiate between advertising and personal selling
| Basis | Advertising | Personal Selling |
| Form | These are Personal. | These are impersonal. |
| Message | These are uniformity of message which means that the message is the same for the entire customer. | This message has no uniformity which means it can be changed keeping in view the behavior of the customer. |
| Flexibility | It lacks flexibility. | It is completely flexible. |
| Cost | It is relatively less costly method. | These are a most costly method. |
| Time | It takes a little time in conveying any information to the customer. | It takes more time in conveying any information to the customer. |
| Media | TV, radio, newspaper & magazine. | Through salesman. |
| Feedback | This gives no information about the reaction of the customer. | The reaction of the customer becomes immediately affect. |
7. Distinguish between ‘sales promotion’ and ‘advertising’. Describe the various methods of sales promotion. 2014, 2016
ANSWER –
8. Write a brief note on recent developments in marketing – Social Marketing(2021), online marketing, Direct marketing (2022), services marketing, green marketing(2021,2022), Rural marketing; Consumerism.
ANSWER –
1. Social Marketing:
Recent developments in social marketing have seen a significant shift towards authenticity and purpose-driven campaigns. Brands now prioritize social responsibility, sustainability, and ethical practices. The rise of social media has allowed for more personalized and engaging customer interactions, fostering brand loyalty and advocacy. Furthermore, social listening and data analytics are helping marketers gain deeper insights into consumer behavior, enabling them to tailor campaigns more effectively.
2. Online Marketing:
Online marketing continues to evolve rapidly, with a focus on automation, AI-driven personalization, and augmented reality experiences. E-commerce has become more immersive with virtual try-ons and showrooms. Content marketing remains a cornerstone, and video content is gaining prominence. Privacy concerns and data protection regulations have led to more transparent data collection practices.
3. Direct Marketing:
Direct marketing has embraced multi-channel approaches, integrating email, SMS, and social media alongside traditional methods. Data-driven targeting is now highly sophisticated, thanks to AI algorithms, enabling more personalized and relevant communications. Interactive direct marketing, such as chatbots and virtual assistants, are gaining ground.
4. Services Marketing:
Services marketing is increasingly influenced by digital platforms and customer reviews. AI and chatbots enhance customer support, and personalized service recommendations are common. Subscription-based models, especially in streaming and software services, are booming.
5. Green Marketing:
In light of environmental concerns, green marketing emphasizes sustainability, with eco-friendly product designs and packaging. Brands are actively communicating their efforts to reduce carbon footprints and adopt renewable energy sources. Consumers are now more likely to support eco-conscious companies.
6. Rural Marketing:
Rural marketing is seeing growth due to increased connectivity and e-commerce penetration in rural areas. Tailored product offerings and communication strategies that resonate with rural consumers are on the rise. Localized content and influencer marketing are being utilized effectively.
7. Consumerism:
Consumerism is evolving towards conscious consumerism. People are more aware of the ethical and social impact of their purchases. They support brands that align with their values, leading to the rise of purpose-driven marketing. Transparency and ethical sourcing are now key elements in consumer decision-making.
9.Highlight the importance of advertising. In this context, explain how marketing goals are met with advertising campaigns. 2021
ANSWER –
Advertising plays a crucial role in achieving marketing goals for businesses. Here are some key aspects of its importance and how it helps meet marketing goals:
1. Creating Awareness: Advertising is often the first point of contact between a business and its potential customers. It raises awareness about products or services, making people aware of their existence.
2. Building Brand Identity: Advertising helps in shaping a brand’s identity and perception in the minds of consumers. Through consistent messaging and creative visuals, a brand can establish itself as trustworthy, innovative, or whatever image it aims to convey.
3. Generating Interest: Well-crafted advertising campaigns pique the interest of the target audience. They highlight the unique selling points of a product or service, making people curious and interested in learning more.
4. Driving Sales: Ultimately, the primary goal of marketing is to drive sales. Advertising plays a significant role in this by persuading potential customers to make a purchase. Calls to action in ads can directly lead to conversions.
5. Reaching the Right Audience: Effective advertising allows businesses to target specific demographics and segments, ensuring that their message reaches those most likely to convert into customers.
6. Adapting to Market Trends: Advertising campaigns can be adjusted and modified to respond to changing market conditions and trends, helping businesses stay relevant and competitive.
7. Measuring and Optimizing: Advertising offers the ability to track and measure results. With analytics and data, businesses can evaluate the success of their campaigns, learn what works, and make data-driven decisions for future marketing efforts.
8. Competitive Advantage: Advertising can help a business stand out in a crowded marketplace. A well-executed campaign can give a competitive edge by showcasing what makes the brand superior.
10. Explain the advantages of direct marketing.2022
ANSWER – Direct marketing offers several advantages, including:
1. Targeted Outreach: You can reach a specific audience based on demographics, behavior, or preferences, increasing the likelihood of a positive response.
2. Personalization: Direct marketing allows for personalized communication, making customers feel valued and increasing engagement.
3. Measurable Results: It’s easier to track and measure the success of direct marketing campaigns, enabling you to adjust strategies for better ROI.
4. Cost-Effective: Compared to mass advertising, direct marketing can be more cost-effective since you’re not wasting resources on uninterested prospects.
5. Immediate Response: You can prompt immediate action from customers, such as making a purchase or signing up for a newsletter.
6. Relationship Building: Direct marketing can foster long-term relationships with customers by keeping them engaged and informed.
7. Flexibility: You have the flexibility to test different approaches and adapt to changing market conditions quickly.
8. Data Collection: Direct marketing generates valuable data that can inform future marketing efforts and product development.
9. Geographic Targeting: You can focus your efforts on specific geographic areas where your products or services are in demand.
10. Competitive Advantage: It can give you an edge over competitors who rely solely on mass marketing approaches.
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