INSTITUTE-USB
DEPARTMENT-BBA
Bachelor Of Business Administration
Marketing Marketing
BAT-153
DISCOVER . LEARN . EMPOWER
SERVICES MARKETING
Promotion &
Distribution
Course Outcome
CO Title Level
Number
CO1 Remember
To understand the Importance of Marketing;
Classification o Marketing Implications; Services
Z
Marketing Management Process
CO2 Understand
To understand the Consumer Decision Making in
Services, Customer Expectations and Perceptions;
Defining and Measuring Service Quality and
Customer Satisfaction
CO3 Understand
Promotion and Distribution Decisions:
Communication Process; Promotion Tools-
Advertising, Personal Selling, Publicity and Sales https[Link]
Promotion; Distribution Channel Decisions-Types %26+Distribution&rlz=1C1CHBD_enIN908IN909&source=lnms&tbm=isch&sa=X
and Functions of Intermediaries &ved=2ahUKEwiksN3mm8bvAhVtILcAHUrlC08Q_AUoAnoECAEQBA&biw=1366
&bih=657#imgrc=mthWU17y4gVxfM
2
Promotion
• Promotion is a form of corporate communication that uses various methods to reach a
targeted audience with a certain message in order to achieve specific organizational
objectives. Nearly all organizations, whether for-profit or not-for-profit, in all types of
industries, must engage in some form of promotion. Such efforts may range from
multinational firms spending large sums on securing high-profile celebrities to serve as
corporate spokespersons to the owner of a one-person enterprise passing out business
cards at a local businessperson’s meeting. Like most marketing decisions, an effective
promotional strategy requires the marketer understand how promotion fits with other
pieces of the marketing puzzle (e.g., product, distribution, pricing, target markets).
Consequently, promotion decisions should be made with an appreciation for how it
affects other areas of the company. For instance, running a major advertising campaign
for a new product without first assuring there will be enough inventory to meet potential
demand generated by the advertising would certainly not go over well with the company’s
production department (not to mention other key company executives). Thus, marketers
should not work in a vacuum when making promotion decisions. Rather, the overall
success of a promotional strategy requires input from others in impacted functional areas.
• In addition to coordinating general promotion decisions with other business areas,
individual promotions must also work together. Under the concept of Integrated
Marketing Communication marketers attempt to develop a unified promotional strategy
involving the coordination of many different types of promotional techniques. The key
idea for the marketer who employs several promotional options (we’ll discuss potential
options later in this tutorial) to reach objectives for the product is to employ a consistent
message across all options. For instance, salespeople will discuss the same benefits of a
product as mentioned in television advertisements. In this way no matter how customers
are exposed to a marketer’s promotional efforts they all receive the same information.
Objectives of Marketing Promotions The most obvious objective marketers have for
promotional activities is to convince customers to make a decision that benefits the
marketer (of course the marketer believes the decision will also benefit the customer). For
most for-profit marketers this means getting customers to buy an organization’s product
and, in most cases, to remain a loyal long-term customer. For other marketers, such as
not-for-profits, it means getting customers to increase donations, utilize more services,
change attitudes, or change behavior (e.g., stop smoking campaigns).
Targets of Promotion
• The audience for an organization’s marketing communication efforts is not
limited to just the marketer’s target market. While the bulk of a marketer’s
promotional budget may be directed at the target market, there are many other
groups that could also serve as useful target of a marketing message. Targets of a
marketing message generally fall into one of the following categories: •
Members of the Organization’s Target Market – This category would include
current customers, previous customers and potential customers, and as noted,
may receive the most promotional attention. • Influencers of the Organization’s
Target Market – There exists a large group of people and organizations that can
affect how a company’s target market is exposed to and perceives a company’s
products. These influencing groups have their own communication mechanisms
that reach the target market and the marketer may be able utilize these
influencers to its benefit. Influencers include the news media (e.g., offer
company stories), special interest groups, opinion leaders (e.g., doctors directing
patients), and industry trade associations.
Distribution
• Marketing organizations selling through channel partners can reach the
final customer either directly using a pull promotion strategy or indirectly
using a push promotional strategy. The pull strategy is so named since it
creates demand for a product by promoting directly to the final customer
in the hopes that their interest in the product will help “pull” more product
through the distribution channel. This approach can be used when channel
partners are hesitant about stocking a product unless they are assured of
sufficient customer interest. The push strategy uses promotion to
encourage channel partners to stock and promote the product to their
customers. The idea is that by offering incentives to channel members the
marketer is encouraging their partners (e.g., wholesalers, retailers) to
“push” the product down the channel and into customer’s hands. Most
large consumer products companies will use both approaches while
smaller firm may find one approach works better.
Distribution decisions involve:
• Importance of distribution channels
• Forms of distribution channels
• Factors influencing choice of channels
• Selecting a channel
• Physical distribution
Participants in the Distribution Process
• Participants in the Distribution Process – The distribution channel provides services to help
gain access to final customers and are also target markets since they must recognize a
product’s benefits and agree to handle the product in the same way as final customers who
must agree to purchase products. Aiming promotions at distribution partners (e.g., retailers,
wholesalers, distributors) and other channel members is extremely important and, in some
industries, represents a higher portion of a marketer’s promotional budget than promotional
spending directed at the final customer.
• • Other Companies – The most likely scenario in which a company will communicate with
another company occurs when the marketer is probing to see if the company would have an
interest in a joint venture, such as a co-marketing arrangement where two firms share
marketing costs. Reaching out to other companies, including companies who may be
competitors for other products, could help create interest in discussing such a relationship.
• • Other Organizational Stakeholders – Marketers may also be involved with communication
activities directed at other stakeholders. This group consists of those who provide services,
support or, in other ways, impact the company. For example, an industry group that sets
industry standards can affect company products through the issuance of recommended
compliance standards for product development or other marketing activities. Communicating
with this group is important to insure the marketer’s views of any changes in standards are
known.
• Communication Process
Communication Process Sender -> message
content, structure, format, source Message
Encoded -> Decoded -> Receiver Media
Selection Response Selective Attention
Selective Distortion Selective Recall Design msg
to win attention Prevent distortion by keeping
msg simple & clear Relate msg with long term
memory
Developing Effective Communication
• Marketing communicator follows 8 steps:
▫ Identifying the target audience
▫ Determine the communication objectives
▫ Design the message
▫ Select the communication channels
▫ Establish the total promotion budget
▫ Decide on the promotion mix
▫ Measure promotion’s results
▫ Coordinate IMC process
1. Identifying Target Audience:
Assess audience’s current image of the
company, its products and its competitors.
2. Determining the Communication Objectives:
E.g. merely purchase, high satisfaction or
favourable word of mouth. ▫ Marketer can be
seeking a cognitive (rationality of audience),
affective (emotionality) or behavioural response.
▫ Moves in hierarchy: Awareness -> Knowledge -
> Liking -> Preference -> Conviction - > Purchase
3. Designing the Message:
Message should gain Attention (A), hold Interest
(I), arouse Desire (D) and elicit Action (A). ▫
Designing the message will require solving 4
problems: what to say (message content); how
to say logically (message structure); how to say
it symbolically (message format); and who
should say it (message source).
4. Selecting the Communication Channels:
Personal communication: face-to-face, one-
tomany, telephone, through mail
▫ Non-personal communication: media and
events
5. Establishing the Total Promotion Budget
Based on affordability
▫ Based on % of sales
▫ Based on competition
▫ Based on objective and task
6. Deciding Promotion-mix : In marketing, the promotional mix describes a blend of
promotional variables chosen by marketers to help a firm reach its goals. It has been
identified as a subset of the marketing mix.
• Advertising
▫ Sales promotion
▫ PR
▫ Personal selling
▫ Direct marketing
Promotion-mix
Promotion tools are:
• Advertising: any paid form of non-personal presentation and promotion of ideas, goods or
services by an identified sponsor.
• Sales Promotion: a variety of short term incentives to encourage trail of purchase of a
product or service.
• Publicity (PR): a variety of programs designed to promote / protect company’s image or its
products.
• Personal Selling: face to face interaction with one or more prospective purchasers for the
purpose of making presentations, answering questions, and procuring orders.
• Direct Marketing: use of non-personal contact (mail, telephone, email etc.) tools to
communicate directly (without middlemen) with customers or prospects.
Advertising
• Advertising is any paid form of non-personal
presentation & promotion of ideas, goods or
services by an identified sponsor.
• Advertising is a cost effective way to
disseminate messages, to build brand
preference & to educate people.
• Advertising goals pertain to sales, image,
attitude & awareness.
Role of Advertising
• Attention – to bring the existence of company’s
product in the attention of the target segment.
• Interest – to create ‘interest’ in the product by
focusing on attributes, which is of interest to the
consumers.
• Desire – to persuade them to make purchase, to
stimulate demand for their product.
• Action – final purchase or not-to-use stage. The buyer
decides finally, to make the purchase (action) or not to
make the purchase (no action i.e. not stimulated by the
advertisement).
REFERENCES
• Marketing Management: The Millennium Edition
• T1 Kotler,P., Keller, K.L. Koshy, A. and Jha, M., Marketing Management: A South Asian Perspective, Pearson Education, New
Delhi.
• Marketing_Management_ZOSMLuTCjy.pdf ([Link])
• [Link]
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