73  Promotion decisions: Role of promotion in marketing; Promotion methods — Advertising; Personal selling; Publicity; Sales promotion tools and techniques; Promotion mix

73.1 Concept of Promotion

Promotion — also called marketing communication — is “the set of activities, messages, and media used to inform, persuade, remind, or reinforce customers about a company’s offerings”. Its purpose is to AIDA: build Attention → Interest → Desire → Action, or in newer DAGMAR terms, move buyers along Awareness → Comprehension → Conviction → Action. Modern marketers prefer IMC — Integrated Marketing Communications — coordinating all channels into one consistent voice.

73.2 Five Elements of the Promotion Mix

TipFive Promotion-Mix Elements (Kotler)
Element Working
Advertising Paid, non-personal mass communication
Sales promotion Short-term incentives to encourage purchase
Public Relations / Publicity Free / earned media — image building
Personal selling Direct, two-way interaction with prospects
Direct & digital marketing One-to-one mail, email, app, SMS, social

Kotler & Keller’s expanded 6-element mix adds events & experiences and word-of-mouth/buzz.

73.3 Communication Process

Shannon-Weaver / Schramm model: Sender → Encoding → Message → Media → Decoding → Receiver → Response → Feedback (+ Noise).

TipEffective Communication Steps (Kotler)
  1. Identify target audience.
  2. Determine objectives (cognitive, affective, behavioural).
  3. Design the communication (Message, Source, Channel).
  4. Select channels (personal vs non-personal).
  5. Establish budget.
  6. Decide the promotion mix.
  7. Measure results.
  8. Manage IMC.

73.4 Advertising

Advertising is any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor (AMA). Five M’s (Kotler):

TipFive M’s of Advertising
  • Mission — sales / image / awareness.
  • Money — budget setting.
  • Message — strategy, creative.
  • Media — print, broadcast, OOH, digital.
  • Measurement — communication + sales effects.

73.4.1 Advertising Objectives

TipAd Objectives
  • Informative (new launch).
  • Persuasive (build preference, competitive ads).
  • Reminder (mature stage).
  • Reinforcement (assure buyers).

73.4.2 Budget Methods

Affordable, % of sales, Competitive parity, Objective and Task method.

73.4.3 Major Media in India

TipIndian Ad Media
  • Television — leader; CPRP, GRP, TRP.
  • Digital — overtook print 2022; Google + Meta dominate.
  • Print — newspapers (largest in vernacular).
  • Radio — FM resurgence.
  • OOH — billboards, transit, DOOH.
  • Cinema — pre-show ads.
  • Influencer & social — Instagram, YouTube, X.

73.4.4 Regulatory Bodies

TipIndian Ad Regulation
  • ASCI (1985) — Advertising Standards Council of India (self-regulator).
  • Consumer Protection Act 2019 — misleading ads; CCPA penalty up to ₹10 lakh / ₹50 lakh repeat.
  • Cable TV Networks (Regulation) Act 1995.
  • PIB / I&B Ministry.
  • DPDP Act 2023 — digital data privacy.

73.5 Sales Promotion

Sales promotion = short-term incentives to stimulate quicker / greater purchase. Two segments:

TipSales-Promotion Tools
To consumer To trade / dealers To sales-force
Samples, coupons, cash refunds Buying allowance, free goods Bonuses, contests
Premiums, free trials Display & demonstration allowances Conventions, trade fairs
Loyalty/points programmes Push money Sales tools (kit, brochures)
Contests, sweepstakes Co-op advertising Quotas, awards
Price packs, BOGO Specialty advertising Training

73.5.1 Limitations

Brand-erosion risk if used excessively; encourages deal-prone, brand-switching customers.

73.6 Public Relations & Publicity

PR = non-paid communication aimed at building relationships with publics, government, media, employees, communities. Publicity is unpaid media coverage.

TipTools of PR (PENCILS — Kotler)
  • Publications — newsletters, magazines.
  • Events — conferences, sponsorships.
  • News — press releases.
  • Community involvement — CSR.
  • Identity media — logo, stationery.
  • Lobbying — government affairs.
  • Social responsibility activities.

73.7 Personal Selling

Personal selling is direct, two-way oral communication between a salesperson and a prospect with the purpose of making a sale and building a relationship.

TipAIDAS — Steps in a Sales Call
  1. Prospecting — find leads.
  2. Pre-approach — research the prospect.
  3. Approach — make first contact.
  4. Presentation & demonstration.
  5. Handling objections.
  6. Closing.
  7. Follow-up & maintenance.

73.7.1 Salesforce Management

Design (objectives, structure, size, compensation) → Recruit & select → Train → Direct (territory, quotas, calls) → Motivate → Evaluate.

73.7.2 Sales-force Structures

By Territory (geographic), Product, Customer, Complex / Hybrid.

73.8 Direct & Digital Marketing

TipDirect & Digital Tools
  • Direct mail, catalogue, telemarketing.
  • Email, SMS, push notifications.
  • Mobile, app, in-app messaging.
  • Search engine marketing (SEM) — Google Ads.
  • Search engine optimisation (SEO).
  • Display, programmatic, retargeting.
  • Social media — paid + organic.
  • Influencer, content, podcast, video.
  • Affiliate marketing.
  • WhatsApp Business.

73.9 Push vs Pull Strategies

TipPush vs Pull
Push Pull
Through channel — wholesaler, retailer Direct to consumer
Trade promotions, dealer incentives Advertising, sales promotion
Used for industrial, B2B, new products Used for FMCG, well-known brands

73.10 Integrated Marketing Communications (IMC)

IMC — concept by Don Schultz (1993) — coordinated, consistent messaging across all channels and touchpoints to build relationships and equity. Tools: brand book, single creative agency, shared metrics, customer-centric.

flowchart TB
  P[Promotion Mix] --> A[Advertising<br/>5 M · TV · Digital]
  P --> SP[Sales Promotion<br/>consumer · trade · salesforce]
  P --> PR[PR & Publicity<br/>PENCILS]
  P --> PS[Personal Selling<br/>7-step]
  P --> D[Direct & Digital<br/>SEM · SEO · Social]
    classDef default fill:#003366,color:#ffffff,stroke:#ffcc00,stroke-width:3px,rx:10px,ry:10px;

NoteDistractor warning

PYQ trap: AIDA sequence — Attention, Interest, Desire, Action; DAGMAR — Awareness, Comprehension, Conviction, Action. ASCI 1985. Personal selling — 7 steps.

73.11 Practice Questions

Q 01MixEasy

Which is NOT a promotion-mix element?

  • AAdvertising
  • BSales promotion
  • CPricing
  • DPersonal selling
View solution
Correct Option: C
Pricing is a separate marketing-mix element.
Q 02AIDAEasy

"D" in AIDA stands for:

  • ADemand
  • BDesire
  • CDecision
  • DDelivery
View solution
Correct Option: B
**Desire** — Attention, Interest, Desire, Action.
Q 035 MsMedium

Which is NOT among the 5 Ms of advertising?

  • AMission
  • BMoney
  • CMethod
  • DMeasurement
View solution
Correct Option: C
5 Ms — Mission, Money, Message, Media, Measurement.
Q 04ASCIMedium

ASCI was established in:

  • A1985
  • B1995
  • C2005
  • D2015
View solution
Correct Option: A
**ASCI 1985** — self-regulator of advertising in India.
Q 05DAGMARHard

DAGMAR model was given by:

  • ARussell Colley (1961)
  • BKotler
  • CLewis
  • DSchultz
View solution
Correct Option: A
**Russell Colley 1961** — Defining Advertising Goals for Measured Advertising Results.
Q 06SPMedium

Sales promotion is best suited for:

  • ALong-term brand building
  • BShort-term sales boost
  • CInvestor relations
  • DB2B sales only
View solution
Correct Option: B
**Short-term incentive** for purchase.
Q 07PENCILSHard

PENCILS tool list relates to:

  • AAdvertising
  • BPublic Relations
  • CSales promotion
  • DPersonal selling
View solution
Correct Option: B
**PR tools (Kotler) — PENCILS**.
Q 08PS stepsMedium

Number of steps in the personal-selling process (typical):

  • A4
  • B5
  • C7
  • D10
View solution
Correct Option: C
**7 steps** — Prospect → Pre-approach → Approach → Presentation → Objections → Close → Follow-up.
Q 09PushMedium

A "push" strategy relies primarily on:

  • AMass advertising
  • BTrade promotions and dealer incentives
  • CConsumer ads only
  • DDirect mail to consumers
View solution
Correct Option: B
**Push** = trade promotion / dealer incentives.
Q 10SchultzHard

The concept of IMC is associated with:

  • AKotler
  • BDon E. Schultz (1993)
  • CPorter
  • DRussell Colley
View solution
Correct Option: B
**Don E. Schultz, Northwestern, 1993**.
Q 11SEMMedium

SEM stands for:

  • ASales Engineering Method
  • BSearch Engine Marketing
  • CStrategic Email Marketing
  • DSocial Engagement Marketing
View solution
Correct Option: B
**Paid search marketing** (Google Ads).
Q 12CPA 2019Medium

Misleading ads in India are tackled under:

  • ASEBI Act
  • BConsumer Protection Act 2019
  • CCompanies Act 2013
  • DRBI Act
View solution
Correct Option: B
**CPA 2019** — CCPA can fine up to ₹10 L (₹50 L repeat).
Q 13MassMedium

Advertising is characterised as:

  • APaid and personal
  • BPaid and non-personal
  • CUnpaid and personal
  • DUnpaid and non-personal
View solution
Correct Option: B
**Paid + non-personal mass communication** (AMA definition).
Q 14TRPMedium

TRP in TV media stands for:

  • ATotal Revenue Ports
  • BTelevision Rating Points
  • CTelecast Reach Programme
  • DTargeted Reach Period
View solution
Correct Option: B
**TRP** — measured by BARC India.
Q 15PublicityEasy

Publicity is best described as:

  • APaid advertising
  • BUnpaid media coverage
  • CSales promotion
  • DDirect selling
View solution
Correct Option: B
**Unpaid / earned media coverage**.
Q 16BudgetHard

Most scientific ad-budget method:

  • AAffordable method
  • B% of sales
  • CObjective and Task
  • DCompetitive parity
View solution
Correct Option: C
**Objective and Task** — define goals, estimate tasks, sum cost.
Q 17BOGOMedium

BOGO is a:

  • APR tool
  • BSales-promotion tool (Buy One Get One)
  • CPersonal-selling stage
  • DBranding strategy
View solution
Correct Option: B
**Buy One Get One** — consumer SP tool.
Q 18DirectMedium

Direct-response TV (DRTV) is a form of:

  • APR
  • BDirect & digital marketing
  • CPersonal selling
  • DTrade promotion
View solution
Correct Option: B
**Direct-response advertising / direct marketing**.
Q 19B2BHard

Which promotion element is MOST effective in B2B selling?

  • AMass advertising
  • BSales promotion
  • CPersonal selling
  • DPR
View solution
Correct Option: C
**Personal selling** — B2B is relationship and customised.
Q 20MatchMedium

Match tool with category:

Tool Category
(i) Press release (a) Sales promotion
(ii) Coupon (b) PR / Publicity
(iii) SEM/Google Ads (c) Direct & Digital
(iv) Personal demo (d) Personal selling
  • A(i)-(b), (ii)-(a), (iii)-(c), (iv)-(d)
  • B(i)-(a), (ii)-(b), (iii)-(c), (iv)-(d)
  • C(i)-(c), (ii)-(d), (iii)-(a), (iv)-(b)
  • D(i)-(d), (ii)-(c), (iii)-(b), (iv)-(a)
View solution
Correct Option: A
PR-Press; SP-Coupon; Digital-SEM; PS-Demo.

73.12 Quick Recall

ImportantQuick recall
  • Promotion mix (5): Advertising, Sales Promotion, PR/Publicity, Personal Selling, Direct & Digital; Kotler 6 adds events/experiences.
  • Hierarchy of effects: AIDA (Attention, Interest, Desire, Action); DAGMAR (Colley 1961) — Aware, Comprehend, Conviction, Action.
  • 5 Ms of advertising: Mission, Money, Message, Media, Measurement; Objective-and-Task = best budget method.
  • Personal selling — 7 steps; B2B’s strongest tool.
  • PR tools — PENCILS (Kotler).
  • Sales promotion — short-term; consumer / trade / sales-force.
  • Direct & Digital: SEM, SEO, social, programmatic, influencer, WhatsApp Business.
  • Push vs Pull: Push through channel (trade); Pull through consumer.
  • IMC — Don Schultz 1993.
  • India: ASCI 1985 (self-reg.); CPA 2019 / CCPA for misleading ads; BARC for TRP.