Assignment

On

Sales promotion,direct marketing,public relation

SUBMITTED TO SUBMITTED BY

Prof. Sunitha Ratnakaram Dharmendra Singh

Krishna Bag

Parth Sarthi

Pranamya Reddy

Subhasish Dash

Vishnu G

(group-3)

Contents
Sales promotion
Direct marketing
Public relation

Sales promotion

Sales promotion is one of the four aspects of promotional mix. (The other three parts of the
promotional mix are advertising, personal selling, and publicity/public relations.) Media and
non-media marketing communication are employed for a pre-determined, limited time to
increase consumer demand, stimulate market demand or improve product availability. Examples
include:

 contests
 point of purchase displays
 rebate (marketing)
 free travel, such as free flights

Sales promotions can be directed at either the customer, sales staff, or distribution channel
members (such as retailers). Sales promotions targeted at the consumer are called consumer sales
promotions. Sales promotions targeted at retailers and wholesale are called trade sales
promotions. Some sale promotions, particularly ones with unusual methods, are considered
gimmick by many.

Sales promotion includes several communications activities that attempt to provide added value
or incentives to consumers, wholesalers, retailers, or other organizational customers to stimulate
immediate sales. These efforts can attempt to stimulate product interest, trial, or purchase.
Examples of devices used in sales promotion include coupons, samples, premiums, point-of-
purchase (POP) displays, contests, rebates, and sweepstakes.

Consumer sales promotion techniques

 Price deal: A temporary reduction in the price, such as happy hour

 Loyal Reward Program: Consumers collect points, miles, or credits for purchases and
redeem them for rewards. Two famous examples are Pepsi Stuff and AAdvantage.
 Cents-off deal: Offers a brand at a lower price. Price reduction may be a percentage
marked on the package.
 Price-pack deal: The packaging offers a consumer a certain percentage more of the
product for the same price (for example, 25 percent extra).
 Coupons: coupons have become a standard mechanism for sales promotions.
 Loss leader: the price of a popular product is temporarily reduced in order to stimulate
other profitable sales
  Free-standing insert (FSI): A coupon booklet is inserted into the local newspaper for
delivery.
 On-shelf couponing: Coupons are present at the shelf where the product is available.
 Checkout dispensers: On checkout the customer is given a coupon based on products
purchased.
 On-line couponing: Coupons are available online. Consumers print them out and take
them to the store.
 Mobile couponing: Coupons are available on a mobile phone. Consumers show the offer
on a mobile phone to a salesperson for redemption.
 Online interactive promotion game: Consumers play an interactive game associated with
the promoted product. See an example of the Interactive Internet Ad for tomato ketchup.

Example Ad For Online Games 7'UP Dancing Allu Arjun.

 Rebates: Consumers are offered money back if the receipt and barcode are mailed to the
producer.
 Contests/sweepstakes/games: The consumer is automatically entered into the event by
purchasing the product.
 Point-of-sale displays:-
o Aisle interrupter: A sign that juts into the aisle from the shelf.
o Dangler: A sign that sways when a consumer walks by it.
o Dump bin: A bin full of products dumped inside.
o Glorifier: A small stage that elevates a product above other products.
o Wobbler: A sign that jiggles.
o Lipstick Board: A board on which messages are written in crayon.
o Necker: A coupon placed on the 'neck' of a bottle.
o YES unit: "your extra salesperson" is a pull-out fact sheet.

Trade sales promotion techniques

  Trade allowances: short term incentive offered to induce a retailer to stock up on a
product.
 Dealer loader: An incentive given to induce a retailer to purchase and display a product.
 Trade contest: A contest to reward retailers that sell the most product.
 Point-of-purchase displays: Extra sales tools given to retailers to boost sales.
 Training programs: dealer employees are trained in selling the product.
 Push money: also known as "spiffs". An extra commission paid to retail employees to
push products.

Trade discounts (also called functional discounts): These are payments to distribution channel
members for performing some function .

DIRECT MARKETING

Direct marketing is a form of advertising that reaches its audience without using traditional
formal channels of advertising, such as TV, newspapers or radio. Businesses communicate
straight to the consumer with advertising techniques such as fliers, catalogue distribution,
promotional letters, and street advertising.

Direct Advertising is a sub-discipline and type of marketing. There are two main definitional
characteristics which distinguish it from other types of marketing. The first is that it sends its
message directly to consumers, without the use of intervening commercial communication
media. The second characteristic is the core principle of successful Advertising driving a specific
"call to action." This aspect of direct marketing involves an emphasis on trackable, measurable,
positive responses from consumers (known simply as "response" in the industry) regardless of
medium.

If the advertisement asks the prospect to take a specific action, for instance call a free phone
number or visit a Web site, then the effort is considered to be direct response advertising.

Direct marketing is predominantly used by small to medium-size enterprises with limited

advertising budgets that do not have a well-recognized brand message. A well-executed direct
advertising campaign can offer a positive return on investment as the message is not hidden with
overcomplicated branding. Instead, direct advertising is straight to the point; offers a product,
service, or event; and explains how to get the offered product, service, or event.

Benefits and drawbacks

Direct marketing is attractive to many marketers, because in many cases its positive effect (but
not negative results) can be measured directly. For example, if a marketer sends out 1,000
solicitations by mail, and 100 respond to the promotion, the marketer can say with confidence
that campaign led directly to 10% direct responses. The number of recipients who are offended
by junk mail/spam, however, is not easily measured. By contrast, measurement of other media
must often be indirect, since there is no direct response from a consumer. Measurement of
results, a fundamental element in successful direct marketing, is explored in greater detail
elsewhere in this article.

The Internet has made it easier for marketing managers to measure the results of a campaign.
This is often achieved by using a specific Web site landing page directly relating to the
promotional material, a call to action will ask the consumer to visit the landing page, and the
effectiveness of the campaign can be measured by taking the number of promotional messages
distributed (e.g., 1,000) and dividing it by the number of responses.Another way to measure the
results is to compare the projected sales for a given term with the actual sales after a direct
advertising campaign.

While many marketers recognize the financial benefits of increasing targeted awareness, some
direct marketing efforts using particular media have been criticized for generating unwanted
solicitations, not due to the method of communication but because of poorly compiled
demographic databases, advertisers do not wish to waste money on communicating with
consumers not interested in their products. For example, direct mail that is irrelevant to the
recipient is considered "junk mail," and unwanted e-mail messages are considered "spam." Some
consumers are demanding an end to direct marketing for privacy and environmental
reasons,which direct marketers are able to do to some extent by using "opt-out" lists, variable
printing, and more-targeted mailing lists. In response to consumer demand and increasing
business pressure to increase the effectiveness of reaching the right consumer with direct
marketing, companies specialize in targeted direct advertising to great effect, reducing
advertising budget waste and increasing the effectiveness of delivering a marketing message with
better geodemography information, delivering the advertising message to only the consumers
interested in the product, service, or event on offer.

PUBLIC RELATION
Public relations describes the various methods a company uses to disseminate messages
about its products, services, or overall image to its customers, employees, stockholders,
suppliers, or other interested members of the community. The point of public relations is to make
the public think favorably about the company and its offerings. Commonly used tools of public
relations include news releases, press conferences, speaking engagements, and community
service programs.

Although advertising is closely related to public relations—as it too is concerned with promoting
and gaining public acceptance for the company's products—the goal of advertising is generating
sales, while the goal of public relations is generating good will. The effect of good public
relations is to lessen the gap between how an organization sees itself and how others outside the
organization perceive it.

Public relations involves two-way communication between an organization and its public. It
requires listening to the constituencies on which an organization depends as well as analyzing
and understanding the attitudes and behaviors of those audiences. Only then can an organization
undertake an effective public relations campaign.

Many small business owners elect to handle the public relations activities for their own
companies, while others choose to hire a public relations specialist. Managers of somewhat
larger firms, on the other hand, frequently contract with external public relations or advertising
agencies to enhance their corporate image. But whatever option is chosen, the head of a company
is ultimately responsible for its public relations.
Goals of Public Relations

Some of the main goals of public relations are to create, maintain, and protect the organization's
reputation, enhance its prestige, and present a favorable image. Studies have shown that
consumers often base their purchase decisions on a company's reputation, so public relations can
have a definite impact on sales and revenue. Public relations can be an effective part of a
company's overall marketing strategy. In the case of a for-profit company, public relations and
marketing should be coordinated to be sure they are working to achieve the same objectives.

Another major public relations goal is to create good will for the organization. This involves
such functions as employee relations, stockholder and investor relations, media relations, and
community relations. Public relations may function to educate certain audiences about many
things relevant to the organization—including the business in general, new legislation, and how
to use a particular product—as well as to overcome misconceptions and prejudices. For example,
a nonprofit organization may attempt to educate the public regarding a certain point of view,
while trade associations may undertake educational programs regarding particular industries and
their products and practices.

Areas of Public Relations

Public relations is a multifaceted activity involving different audiences as well as different types
of organizations, all with different goals and objectives. As a result, there are several specific
areas of public relations.

PRODUCT PUBLIC RELATIONS. Public relations plays an important role in new product
introductions by creating awareness, differentiating the product from other similar products, and
even changing consumer behavior. Public relations can help introduce new products through
staging a variety of special events and handling sensitive situations. For example, when the
Prince Matchabelli division of Chesebrough-Pond's USA introduced a new men's cologne, there
were twenty-one other men's fragrances being introduced that year. To differentiate its new
offering, called Hero, Prince Matchabelli created a National Hero Awards Program honoring
authentic male heroes and enlisted the participation of Big Brothers/Big Sisters of America to
lend credibility to the program. Similarly, when Coleco introduced its Cabbage Patch Kids dolls,
public relations helped increase awareness through licensed tie-in products, trade show exhibits,
press parties, and even window displays in Cartier jewelry stores.

EMPLOYEE RELATIONS. Employees are one of the most important audiences a company
has, and an ongoing public relations program is necessary to maintain employee good will as
well as to uphold the company's image and reputation among its employees. The essence of a
good employee relations program is keeping employees informed and providing them with
channels of communication to upper levels of management.Other public relations programs
focusing on employees include training them as company public relations representatives;
explaining benefits programs to them; offering them educational, volunteer, and citizenship
opportunities; and staging special events such as picnics or open houses for them. Other
programs can improve performance and increase employee pride and motivation. Public relations
can also play a role in recruiting new employees; handling reorganizations, relocations, and
mergers; and resolving labor disputes.

FINANCIAL RELATIONS. Financial relations involves communicating not only with a

company's stockholders, but also with the wider community of financial analysts and potential
investors. An effective investor relations plan can increase the value of a company's stock and
make it easier to raise additional capital. In some cases special meetings with financial analysts
are necessary to overcome adverse publicity, negative perceptions about a company, or investor
indifference. Such meetings may take the form of full-day briefings, formal presentations, or
luncheon meetings. A tour of a company's facilities may help generate interest among the
financial community. Mailings and ongoing communications can help a company achieve
visibility among potential investors and financial analysts.

COMMUNITY RELATIONS. A comprehensive, ongoing community relations program can

help virtually any organization achieve visibility as a good community citizen and gain the good
will of the community in which it operates. Banks, utilities, radio and television stations, and
major retailers are some of the types of organizations most likely to have ongoing programs that
might include supporting urban renewal, performing arts programs, social and educational
programs, children's programs, community organizations, and construction projects. On a more
limited scale, small businesses may achieve community visibility by sponsoring local sports
teams or other events. Support may be financial or take the form of employee participation.

CRISIS COMMUNICATIONS. Public relations practitioners become heavily involved in

crisis communications whenever there is a major accident or natural disaster affecting an
organization and its community. Other types of crises involve bankruptcy, product failures, and
management wrongdoing. In some cases, crises call for an organization to become involved in
helping potential victims; in other cases, the crisis may require rebuilding an organization's
image. In any case, experts recommend that business owners prepare a plan in advance to deal
with potential crises in an honest and forthright manner. The main objective of such a plan is to
provide accurate information quickly in order to reduce uncertainty. After the San Francisco
earthquake of 1989, for example, the Bank of America utilized its public relations department to
quickly establish communications with customers, the financial community, the media, and
offices in 45 countries to assure them the bank was still operating.

GOVERNMENT AND POLITICAL RELATIONS. Public relations in the political arena

covers a wide range of activities, including staging debates, holding seminars for government
leaders, influencing proposed legislation, and testifying before a congressional committee.
Political candidates engage in public relations, as do government agencies at the federal, state,
and local levels.

PUBLIC RELATIONS IN THE PUBLIC INTEREST.

Organizations attempt to generate good will and position themselves as responsible citizens
through a variety of programs conducted in the public interest. Some examples are
environmental programs (including water and energy conservation) and antipollution programs.
Health and medical programs are sponsored by a wide range of nonprofit organizations,
healthcare providers, and other businesses and industries. These range from encouraging other
companies to develop AIDS-in-the-workplace policies to the American Cancer Society's Great
American Smokeout. Other programs offer political education, leadership and self-improvement,
recreational activities, contests, and safety instruction.
CONSUMER EDUCATION. Organizations have undertaken a variety of programs to educate
consumers, building good will and helping avoid misunderstandings in the process.
Opportunities for educating consumers might include sponsoring television and radio programs,
producing manuals and other printed materials, producing materials for classroom use, and
releasing the results of surveys. In addition to focusing on specific issues or industries,
educational programs may seek to inform consumers about economic matters and business in
general.

OTHER PUBLIC RELATIONS PROGRAMS. Other types of programs that fall under the
umbrella of public relations include corporate identity programs, ranging from name changes and
new trademarks to changing a company's overall image. Special events may be held to call
attention to an organization and focus the public's good will. These include anniversary
celebrations, events related to trade shows, special exhibits, or fairs and festivals. Speakers
bureaus and celebrity spokespersons are effective public relations tools for communicating an
organization's point of view. Speakers bureaus may be organized by a trade association or an
individual company.

Public Relations for Small Businesses

Like other types of organizations, small businesses can benefit from public relations in terms of
their relationships with customers, employees, investors, suppliers, or other interested members
of the community. Since small business owners are the most visible representatives of their own
companies, they frequently handle many of the public relations functions themselves. But experts
caution small business owners against taking on this responsibility if they are unqualified, or if
they are unable to give public relations the attention it deserves. In these cases, entrepreneurs
may choose to hire a public relations specialist or contract with an outside agency.