1. CUSTOMER VALUE, ADVERTISING, PERSONAL
SELLING, SALES PROMOTION, DIRECT AND
ONLINE MARKETING

2.  A company’s total promotion mix—also called its
marketing communications mix—consists of the
specific blend of
 advertising
 sales promotion
 public relations
 personal selling
 and direct-marketing tools that the company uses to
pursue its advertising and marketing objectives.

3.  Advertising: Any paid form of non-personal presentation and
promotion of ideas, goods, or services by an identified
sponsor
 Sales promotion: Short-term incentives to encourage the
purchase or sale of a product or service
 Public relations: Building good relations with the company’s
various publics by obtaining favorable publicity, building up
a good corporate image, and handling or heading off
unfavorable rumors, stories, and events
 Personal selling: Personal presentation by the firm’s sales
force for the purpose of making sales and building customer
relationships
 Direct marketing: Direct connections with carefully targeted
individual consumers to both obtain an immediate response
and cultivate lasting customer relationships—using
telephone, mail, fax, e-mail, the Internet, and other tools to
communicate directly with specific customers.

4. Copyright © 2009 Dorling
Kindersley (India) Pvt. Ltd.
17-4

5. Advertising
 Print and broadcast ads
 Packaging inserts
 Motion pictures
 Brochures and booklets
 Posters
 Billboards
 POP displays
 Logos
 Videotapes
Sales Promotion
 Contests, games, sweep
stakes
 Premiums
 Sampling
 Trade shows, exhibits
 Coupons
 Rebates
 Entertainment
 Continuity programs

6. Events/ Experiences
 Sports
 Entertainment
 Festivals
 Arts
 Causes
 Factory tours
 Company museums
 Street activities
Public Relations
 Press kits
 Speeches
 Seminars
 Annual reports
 Charitable donations
 Publications
 Community relations
 Lobbying
 Identity media
 Company magazine

7. Personal Selling
 Sales presentations
 Sales meetings
 Incentive programs
 Samples
 Fairs and trade shows
Direct Marketing
 Catalogs
 Mailings
 Telemarketing
 Electronic shopping
 TV shopping
 Fax mail
 E-mail
 Voice mail
 Blogs
 Websites

8.  Sender: The party sending the message to another party
 Encoding: The process of putting thought into symbolic form
 Message: The set of symbols that the sender transmits
 Media: The communication channels through which the
message moves from sender to receiver
 Decoding: The process by which the receiver assigns meaning
to the symbols encoded by the sender
 Receiver: The party receiving the message sent by another
party
 Response: The reactions of the receiver after being exposed to
the message
 Feedback: The part of the receiver’s response communicated
back to the sender
 Noise: The unplanned static or distortion during the
communi­cation process that results in the receiver’s getting a
different message than the one the sender sent.

9. Identify target audience
Determine objectives
Design communications/message
<refer next slide>
Select channels
Establish budget
Decide on media mix
Measure results/ manage IMC

10.  Rational appeals relate to the audience’s self-interest.
They show that the product will produce the desired
benefits.
 Emotional appeals attempt to stir up either negative or
positive emotions that can motivate purchase.
Communicators may use positive emotional appeals such as
love, pride, joy, and humor. Communicators can also use
negative emotional appeals, such as fear, guilt, and shame
that get people to do things they should or to stop doing
things they shouldn’t.
 Moral appeals are directed to the audience’s sense of
what is “right” and “proper.” They are often used to urge
people to support social causes such as a cleaner
environment, better race relations, equal rights for
women, and aid to the disadvantaged.

11. Affordable: this method of setting budgets completely ignores the effects
of promotion on sales. It tends to place advertising last among spending priorities
Percentage-of-Sales: It is simple to use, It helps management think about
the relationship between promotion spending, selling price, and profit per unit
Competitive Parity: They monitor competitors’ advertising or
get industry promotion spending estimates from publications or trade associations,
and then set their budgets based on the industry average
Objective-and-Task: the company sets its promotion
budget based on what it wants to accomplish with promotion.

12.  PUSH STRATEGY: through distribution channels to
final consumers
 PULL STRATEGY: the producer directs its
marketing activities toward final consumers to
induce them to buy the product.
 factors- type of product/market and the product life-
cycle stage

13.  Introduction stage:
Advertising and public relations are good for producing high awareness, and
sales promotion is useful in promoting early trial. Personal selling must be
used to get the trade to carry the product.
 In the growth stage:
Advertising and public relations continue to be powerful influences, whereas
sales promotion can be reduced because fewer incentives are needed.
 In the mature stage:
Sales promotion again becomes important relative to advertising. Buyers
know the brands, and advertising is needed only to remind them of the
product.
 In the decline stage:
Advertising is kept at a reminder level, public relations is dropped, and
salespeople give the product only a little attention. Sales
promotion, however, might continue strong.

14.  Advertising council of India, established in 1985
 ASCI code applies to advertisements read, heard
or viewed even if they originate in abroad
 LAWS GOVERNING MEDIA:
 The Press Council Act 1978
 Cable Television Network Rules, 1994
 Code for Commercial Advertising on Doordarshan and
All India Radio
 Electronic Media Monitoring Centre (EMMC)
 Norms for Journalist Conduct issued by the Press Council
of India
 Code of Conduct of the News Broadcasters Association

15.  Laws Protecting Society and the Consumer
 Emblems and Names (Prevention of Improper Use)
Act, 1950
 Young Persons (Harmful Publications) Act, 1956
 Companies Act, 1956
 Standards of Weight & Measures Act, 1976
 Indecent Representation of Women (Prohibition)
Act, 1986
 Consumer Protection Act, 1986
 Laws related to intellectual property rights

16.  Industry-Specific Laws
 The Drugs and Cosmetic Act, 1940
 The Transplantation of Human Organs Act, 1994
 The Drugs and Magical Remedies (Objectionable Advertisements)
Act, 1954
 The Prenatal Diagnostic Techniques (Regulation and Prevention of
Misuse) Act, 1994
 Advocates Act, 1961
 Infant Milk Substitutes, Feeding Bottles and Infant Foods
(Regulation of Production, Supply and Distribution) Act, 1992
 Securities and Exchange Board of India Act, 1992
 The Prize Chits and Money Circulation Schemes (Banning) Act,
1978
 Cigarettes and other Tobacco Products (Prohibition of
Advertisement and Regulation of Trade and Commerce,
Production, Supply and Distribution) Act, 2003
 Public Gambling Act, 1867, the Lotteries (Regulation) Act, 1998 and
the Prize Competitions Act, 1955
 Indian Medical Council (Professional Conduct, Etiquette and
Ethics) Regulations, 2002
 The Food Safety & Standards Act, 2006

17. Products and Services Banned From Advertising
 Tobacco
 The Cigarettes and other Tobacco Products (Prohibition of Advertisement and Regulation of
Trade and Commerce, Production, Supply and Distribution) Act, 2003 ("Tobacco Prohibition
Act") prohibits all direct and indirect advertising of tobacco products in all media.
 Human Organs
 The Transplantation of Human Organs Act, 1994: This law provides for the
regulation of removal, storage and transplantation of human organs for
therapeutic purposes and for the prevention of commercial dealings in human
organs. This law prohibits any advertising inviting persons to supply, offering to
supply, any human organ for payment.
 Magical Remedies
 The Drugs and Magical Remedies (Objectionable Advertisements)
Act, 1954 prohibits advertisement of magical remedies of diseases and disorders.
 Services for Pre-Natal Determination of Sex
 The Prenatal Diagnostic Techniques (Regulation and Prevention of Misuse)
Act, 1994 prohibits advertisements relating to pre-natal determination of sex.
 Infant formula
 Advertising forbidden in order to encourage natural feeding of infants.
 Prize Chits and Money Circulation Schemes
 The Prize Chits and Money Circulation Schemes (Banning) Act, 1978 prohibits
advertisements relating to prize chit2 and money circulation schemes.

18.  Professionals such as Chartered Accountants, Company
Secretaries & Cost Accountants: details of names of partners,
address and website, telephone, mobile, e-mail, fax number of
the member, year of establishment, additional recognized
qualifications, languages spoken by the partner(s), honours or
awards in the field of teaching, research, authorship etc.
 Firearms, Weapons, and Ammunition: Arms Act, 1959.
 Regulations Related to Product and Service Advertising
 Alcohol (Beer, Wine, and Spirits)
 The Cable Television Network Rules, 1994, the Advertising Codes of
Doordarshan, and the All India Radio and Norms for Journalist
Conduct issued by the Press Council of India prohibit any
advertisement directly or indirectly promoting the production, sale, or
consumption of cigarettes, tobacco products, wine, liquor, or other
intoxicants.
 Legal Services
 The Bar Council of India Rules formulated under the Advocates Act
1961 strictly enforce the advertisement ban and publicity rules
governing law firms websites.

19. MEDIA, PR, RETURN ON ADVERSTISEMENTS
INVESTMENT

21. Informative
advertising
Reminder
advertising
Reinforcement
advertising
Persuasive
advertising

22.  MARKET SHARE
 PLC
 DEVELOPING
ADVERTISING
STRATEGY
 Creating advertising
messages: clutters,
message appeal type,
 Selecting advertising
media
 MESSAGE EXECUTION
 CONSUMER
GENERATED
MESSAGES
 Selecting advertising media
 Deciding on
Reach, Frequency, and
Impact.
 Choosing Among Major
Media Types
 Deciding on Media
Timing
 Media effectiveness
factors.
 Audience quality.
 Audience engagement.
 Editorial quality.

23.  Measuring the communication effects of an ad or ad
campaign
 Sales and profits effects of advertising are often harder
to measure.
 small organizations: their own sales department
 large organizations: advertisement agency
 Standardization produces many benefits—lower
advertising costs, greater global advertising
coordination, and a more consistent worldwide image.
 Global advertisers face several special problems.
 Advertising media costs and availability differ vastly from
country to country.
 Countries also differ in the extent to which they regulate
advertising practices

24. Public relations is building good relations with the
company’s various publics by obtaining favorable
publicity, building up a good corporate image, and
handling or heading off unfavorable rumors, stories,
and events.

25.  Press relations or press agency: Creating and placing
newsworthy information in the news media to attract
attention to a person, product, or service.
 Product publicity: Publicizing specific products.
 Public affairs: Building and maintaining national or local
community relations.
 Lobbying: Building and maintaining relations with
legislators and government officials to influence
legislation and regulation.
 Investor relations: Maintaining relationships with
shareholders and others in the financial community.
 Development: Public relations with donors or members of
nonprofit organizations to gain financial or volunteer
support.

26.  PR professionals find or create favorable news about the company
and its products or people.
 Speeches can also create product and company publicity.
 Another common PR tool is special events, ranging from news
conferences, press tours, grand openings, and fireworks displays to
laser shows, hot air balloon releases, multimedia
presentations, start-studded spectaculars, or educational programs
designed to reach and interest target publics.
 Public relations people also prepare written materials to reach and
influence their target markets. These materials include annual
reports, brochures, articles, and company newsletters and
magazines.
 Audiovisual materials, such as films, slide-and-sound
programs, and video and audio CDs, are being used increasingly as
communication tools.
 Corporate identity materials can also help create a corporate
identity that the public immediately recognizes.
 Companies can improve public goodwill by contributing money
and time to public service activities.

27. Establish objectives
Choose messages
Choose vehicles
Implement
Evaluate results

28. Definition of Philip Kotler: “Personal selling
involves oral presentation in a conversation
with one or more prospective purchases for
the purpose of making sales”.

29.  Personal selling is one of the oldest
professions in the world.
 salesperson covers a wide range of positions.
 a salesperson might be an order taker, such as
the department store salesperson standing
behind the counter
 can vary from company to company incase of
online selling there is no need of salesperson

30.  Linking the Company with Its Customers
 They represent customers to the company.
 They represent the company to customers.
 Coordinating Marketing and Sales

31.  Sales force management is defined as the
analysis, planning, implementation, and control of
sales force activities
 Designing Sales Force Strategy and Structure
 Territorial Sales Force Structure: Each salesperson is assigned
to an exclusive geographic area and sells the company’s full
line of products or services to all customers in that territory.
 Product Sales Force Structure: The sales force sells along
product lines.
 Customer Sales Force Structure: The sales force is organized
along customer or industry lines.
 Complex Sales Force Structures: often combines several types
of sales force structures when it sells a wide variety of products
to many types of customers over a broad geographic area.

32.  Recruiting and Selecting Salespeople
 The best salespeople possess four key talents:
 Intrinsic motivation.
 Disciplined work style.
 The ability to close a sale.
 The ability to build relationships with customers.
 Training Salespeople
 different types of customers and their needs, buying motives, and buying
habits.
 must teach them how to sell effectively and train them in the basics of the
selling process.
 training program teaches them about the company’s objectives,
organization, and chief products and markets, and about the strategies of
major competitors.
 Compensating Salespeople
 Straight salary,
 Straight commission,
 Salary plus bonus,
 Salary plus commission.

33.  Supervising and Motivating Salespeople
 The goal of supervision is to help salespeople “work smart”
by doing the right things in the right ways.
 The goal of motivation is to encourage salespeople to
“work hard” and energetically toward sales force goals
 Evaluating Salespeople and Sales-Force
Performance
 Sales reports,
 Call reports,
 Expense reports.

34.  Prospecting and qualifying
 Current customers.
 Suppliers, dealers, noncompeting sales-people, and bankers.
 Directories or on the Web.
 Dropping in unannounced on various offices (a practice known as “cold calling”)
 Their financial ability.
 Volume of business.
 Special needs.
 Location.
 Possibilities for growth.
 Pre-approach: The pre-approach is the stage in which the salesperson
learns as much as possible about the organization (what it needs, who is
involved in the buying) and its buyers (their characteristics and buying
styles)
 Approach: During the approach step, the salesperson should know how
to meet and greet the buyer and get the relationship off to a good start.
 Presentation and demonstration
 Handling objections
 Closing,
 Follow-up