Class 12 Marketing Promotion Notes and Important Questions

Class 12 Promotion Notes (Marketing)

Chapter 5 Promotion NEB Class 12 | Marketing (Mar. 308) | Unit 5 Allotted Teaching Hours: 20 Hours Topics: 5.

Marketing | Class 12 Ch. 5

Chapter 5 Promotion NEB Class 12 | Marketing (Mar. 308) | Unit 5 Allotted Teaching Hours: 20 Hours Topics: 5.1 - 5.8 Why this chapter matters: A great product, priced right and available everywhere, will still fail if nobody knows about it. Promotion is the fourth 'P' - it is how a firm communicates with its customers. This unit covers all five tools of the promotion mix: Advertising, Personal Selling, Sales Promotion, Publicity and Public Relations - and is one of the most heavily-tested chapters in the exam, so every sub-topic below is explained with examples. 5.1 Meaning and Definition of Promotion Promotion refers to all the communication activities a firm undertakes to inform, persuade and remind the target market about its products, in order to influence their buying behaviour. It is the 'voice' of the marketing mix - Product, Price and Place create value, but Promotion communicates that value to the customer. Definition: "Promotion is the coordination of all seller-initiated efforts to set up channels of information and persuasion in order to sell goods, services or ideas." In simple words, promotion answers three basic questions for the customer: 'What is this product?' (inform), 'Why should I buy it?' (persuade), and 'Why should I keep buying it?' (remind). 5.2 Objective / Role of Promotion in Marketing - To inform - make customers aware that a product/service exists and explain its features, price and availability (essential for new products).

Marketing | Class 12 Ch. 5

- To persuade - convince customers to prefer the firm's product over competitors' offerings, and to build brand preference and loyalty. - To remind - keep the brand in the customer's mind so they continue to buy it, especially important for products in the mature stage of their life cycle. - To build brand image - create a distinct, positive identity that differentiates the product from competitors. - To stimulate demand - boost sales and revenue in both the short run (through offers) and the long run (through brand-building). - To counter competitors' promotional activities and defend or grow the firm's market share. - To support the sales force and channel members by generating leads and pulling customers toward retail outlets. 5.3 Importance of Promotion A. Importance to the Firm - Increases sales and revenue by attracting new customers and encouraging repeat purchase. - Builds brand awareness and brand image in a crowded market. - Makes the launch of new products faster and more successful. - Helps the firm compete effectively against rival brands. - Supports the distribution network - dealers stock products that are well promoted and easy to sell. B. Importance to the Consumer - Provides information needed to compare products and make an informed choice. - Educates consumers about new products, features and correct usage. - Creates awareness of available options, including prices and where to buy. - Sales promotions (discounts, coupons) give consumers a chance to save money. C. Importance to Society - Supports economic growth and employment in the advertising, media and event industries.

Marketing | Class 12 Ch. 5

- Funds mass media (TV, newspapers, digital platforms), keeping content affordable or free for the public. - Spreads awareness on social issues - health campaigns, road safety, literacy, family planning. - Encourages healthy competition among firms, which can improve product quality over time. 5.4 Components of the Promotion Mix The promotion mix is the specific blend of promotional tools a firm uses to communicate value and build customer relationships. It has five main components: - Advertising - paid, non-personal mass communication through media (e.g. a TV commercial). - Personal Selling - face-to-face communication/presentation by a salesperson (e.g. an insurance agent's home visit). - Sales Promotion - short-term incentives to encourage immediate purchase (e.g. a 'buy one get one free' offer). - Publicity - unpaid, non-personal stimulation of demand through news coverage (e.g. a newspaper article about a company's achievement). - Public Relations - building and maintaining goodwill with the firm's various publics (e.g. a company's CSR programme). Each of these five tools is explained in detail below, one by one. Factors Determining the Promotion Mix A firm does not use all five tools equally - the right blend depends on several factors: - Nature of the product - industrial/technical products rely more on personal selling; simple consumer goods rely more on advertising. - Type of target market - a small, concentrated market suits personal selling; a large, scattered market suits advertising. - Stage of the product life cycle - informative advertising/publicity suit the introduction stage; reminder advertising and sales promotion suit the maturity stage. - Push vs Pull strategy - a 'push' strategy uses personal selling and trade promotion to push the product through channel members; a 'pull' strategy uses advertising to build consumer

Marketing | Class 12 Ch. 5

demand that 'pulls' the product through the channel. - Budget available - advertising and PR usually need a larger budget than personal selling or local sales promotion. - Availability and cost of media in the region. 5.5 Advertising A. Meaning, Features and Importance Advertising is any paid, non-personal form of presentation and promotion of ideas, goods or services by an identified sponsor, delivered through mass media to a large audience at the same time. - Paid form - the sponsor pays for the space/time used (unlike publicity). - Non-personal - directed at a mass audience, not one individual, using a common message. - Identified sponsor - the advertiser is clearly known to the audience, unlike publicity. - Mass reach - can reach a very large, geographically spread-out audience quickly. - Repetitive - the same message can be repeated many times to build recall. Importance: creates wide awareness at a low cost-per-person reached, builds brand image and recall, informs about product features and price, persuades customers to switch or buy, reminds existing customers to keep buying, and supports the sales force by pre-selling the brand before the salesperson even meets the customer. B. Types of Advertising - Informative advertising - used mainly when launching a new product, to build initial awareness (e.g. announcing a newly launched smartphone model). - Persuasive advertising - used in a competitive market to build preference and convince buyers to choose this brand over rivals (e.g. two telecom companies advertising against each other). - Reminder advertising - used for mature/established products, to keep the brand in customers' minds (e.g. a soft-drink brand advertising during a festival). - Comparative advertising - directly or indirectly compares the firm's product with a competitor's product on price, quality or features.

Marketing | Class 12 Ch. 5

- Institutional advertising - promotes the image of the whole organisation rather than a specific product (e.g. a bank advertising its trustworthiness). C. Advertising Media and Social Media - Print media - newspapers, magazines, brochures, posters; good for detailed information, but limited to literate audiences. - Broadcast media - television and radio; television combines sight, sound and motion for high impact, radio is cheap and good for local reach. - Outdoor media - billboards, hoardings, transit (bus/vehicle) advertising; good for repeated local exposure. - Direct mail - letters, catalogues sent directly to prospective customers; allows personalised targeting. - Digital / Social media - Facebook, Instagram, YouTube, TikTok, Google Ads; increasingly important due to low cost, precise targeting, measurable results and two-way interaction with customers. Advantages of advertising: wide reach, cost-effective per person, builds long-term brand image, message can be controlled and repeated. Limitations: one-way communication (no instant feedback), can be expensive in total cost, and cannot always target very specific individuals as precisely as personal selling. 5.6 Personal Selling A. Meaning and Importance Personal selling is the direct, face-to-face communication between a salesperson and a prospective buyer, aimed at making a sale and building a relationship. It allows instant feedback and two-way conversation, and is especially important for expensive, technical or complex products where the buyer needs detailed explanation and reassurance (e.g. insurance, real estate, industrial machinery). - Allows the message to be customised to each individual buyer's needs. - Builds a long-term relationship and trust between buyer and seller.

Marketing | Class 12 Ch. 5

- Provides immediate feedback - objections can be answered on the spot. - Directly closes the sale, unlike advertising which only creates awareness. B. Types of Sales Process - Indoor sales (in-store selling) - the customer comes to the seller's premises (shop, showroom, counter) and the salesperson assists them there. Cost per contact is lower, since the customer has already chosen to visit. - Outdoor sales (field selling) - the salesperson goes out to meet the customer at their home, office, or place of business - common in door-to-door selling, insurance, and business-to-business (B2B) sales. It requires more travel and cost, but reaches customers who would not visit a store. C. Steps in the Personal Selling Process A salesperson usually follows a systematic sequence of steps to convert a prospect into a customer: - 1. Prospecting - identifying and making a list of potential customers. - 2. Pre-approach - gathering information about the prospect's needs before meeting them. - 3. Approach - the first contact with the customer, creating a good first impression. - 4. Presentation and demonstration - explaining and showing how the product satisfies the customer's needs. - 5. Handling objections - clarifying doubts and resolving the customer's concerns. - 6. Closing the sale - asking for the order and completing the transaction. - 7. Follow-up - checking after-sale satisfaction to ensure repeat business and referrals. 5.7 Sales Promotion A. Meaning and Importance Sales promotion refers to short-term incentives designed to encourage the immediate purchase or sale of a product. Unlike advertising (which builds long-term brand image), sales promotion is used to boost sales quickly, clear excess inventory, encourage first-time trial of a product, introduce a new product, and counter a competitor's promotional campaign.

Marketing | Class 12 Ch. 5

B. Consumer Promotion (aimed at final buyers) - Free samples - a small trial quantity given free to encourage first purchase (e.g. a free sachet of shampoo). - Coupons - certificates offering a price reduction on a specific product, redeemable at purchase. - Discounts / price-off - a temporary reduction in the regular selling price. - Contests and games - customers compete for a prize by using/buying the product (e.g. a lucky-draw on a purchase receipt). - Premiums - a free or low-cost gift given with the purchase of a product (e.g. a free mug with a coffee jar). - Cash rebates / loyalty programs - money-back offers, or points redeemable for rewards on repeat purchase (e.g. an airline's frequent-flyer programme). C. Trade Promotion (aimed at middlemen) - Trade discounts / buying allowances - a price reduction given to wholesalers/retailers for stocking the product in larger quantity. - Free goods - extra units given free for ordering a certain quantity (e.g. '13 units for the price of 12'). - Dealer contests - rewards (cash, trips, gifts) for dealers who achieve the highest sales in a given period. - Cooperative advertising - the manufacturer shares the retailer's local advertising cost. - Trade shows / exhibitions - events where firms display products to dealers and buyers to generate orders and interest. Advantages of sales promotion: quick increase in sales, encourages trial, clears excess stock. Limitations: effect is usually short-lived, frequent discounts can hurt brand image, and it may only shift the timing of a purchase rather than creating a truly new customer. 5.8 Publicity and Public Relations

Marketing | Class 12 Ch. 5

A. Meaning and Features - Publicity - unpaid, non-personal stimulation of demand by placing commercially significant news about the firm/product in the media (e.g. a news story about a company winning an award). It is not directly controlled or paid for by the firm, which makes it highly credible in the eyes of the public - but the firm also cannot control exactly what is published. - Public Relations (PR) - a broader, planned and continuous management function that builds and maintains goodwill between the firm and its various publics (customers, employees, government, media, community, investors). Publicity is just one of the many tools used within PR. B. Tools of Publicity and PR - Press releases and press conferences - official statements or events to share company news with journalists. - Sponsorship of events, sports, or community programs to build visibility and goodwill. - Annual reports and newsletters - keep investors, employees and the public informed. - Speeches, seminars and public appearances by company leaders to build credibility. - Corporate Social Responsibility (CSR) activities - contributing to social/environmental causes. - Lobbying with government and regulatory bodies to influence policy favourably. C. Importance of Publicity and PR - Builds credibility and trust - audiences see it as more believable than paid advertising, since it comes from an independent source (e.g. a journalist). - Helps manage and protect the company's public image, especially during a crisis (crisis communication). - Is generally more cost-effective than advertising for the reach and credibility it achieves. - Can reach audiences that avoid or skip traditional paid advertising. - Strengthens relationships with all stakeholders, not just customers - employees, government, community and investors.

Marketing | Class 12 Ch. 5

Quick comparison: Advertising is paid and fully controlled by the firm; Publicity is unpaid and controlled by the media, making it more credible; Personal Selling is one-to-one with instant feedback; Sales Promotion works only in the short term; Public Relations builds long-term goodwill with many audiences, not only customers. Quick Revision - Key Points to Remember - Promotion = Inform + Persuade + Remind. - 5 components of promotion mix: Advertising, Personal Selling, Sales Promotion, Publicity, Public Relations. - Advertising is paid + non-personal + identified sponsor + mass reach. - 4 types of advertising: Informative, Persuasive, Reminder, Comparative (+ Institutional). - Personal selling: Indoor (in-store) vs Outdoor (field) selling. - 7 steps of personal selling: Prospecting -> Pre-approach -> Approach -> Presentation -> Handling objections -> Closing -> Follow-up. - Sales promotion is short-term: Consumer promotion vs Trade promotion. - Publicity is unpaid media coverage; PR is the broader goodwill-building function. - Publicity is more credible than advertising because it is not paid for or controlled by the firm. Possible Exam Questions Very Short Answer Questions - Define promotion mix. - What is publicity? - Give two examples of consumer sales promotion tools. Short Answer Questions - Define promotion. Explain its objectives. - What is advertising? Mention its features. - Distinguish between indoor sales and outdoor sales. - What is sales promotion? Mention any four consumer promotion tools. - Differentiate between advertising and publicity.

Marketing | Class 12 Ch. 5

Long Answer Questions - Explain the components of the promotion mix in detail. - Discuss the types of advertising and the media used for advertising. - Explain the steps involved in the personal selling process. - Explain the meaning, tools and importance of publicity and public relations. End of Chapter 5 (20 Hours) | Next -> Chapter 6: Emerging Issues in Modern Marketing (20 Hours)