Communications component (or communication mix) is that
portion of the media plan that company uses to pursue its
advertising and marketing objectives to create awareness about
The communication mix or promotion mix refers to certain
methods used to promote the company or its products to
achieve communication objectives comprising advertising,
publicity, sales promotion, personal selling and direct marketing
to target customers.
Factors Influencing Promotion Mix
1. Type of Product:
Type of product plays an important role in deciding on promotion mix.
Product can be categorized in terms of branded products, non-branded
products, necessity products, luxury products, new products, etc. All these
types of products need different promotional tools. For example, advertising
is suitable for the branded and popular products. Personal selling may be fit
for non-branded products. Advertising, personal selling, sales promotion
and publicity – all four tools – are used for a newly launched product to get
a rapid consumer acceptance.
2. Use of Product:
Product may be industrial product, consumable and necessity product, or
may be luxurious product that affects selection of promotion tools and
media. For example, advertising and sales promotion techniques are widely
used for consumer goods while personal selling is used for industrial goods.
3. Complexity of Product:
Product complexity affects selection of promotional tools. Personal selling is
more effective for complex, technical, risky, and newly developed products
as they need personal explanation and observation. On the other end,
advertising is more suitable for simple and easy-handled products.
4. Purchase Quantity and Frequency:
Company should also consider purchase frequency and purchase quantity
while deciding on promotion mix. Generally, for frequently purchase
product, advertising is used, and for infrequently purchase product,
personal selling and sales promotion are preferred. Personal selling and
advertising are used for heavy users and light users respectively.
5. Fund Available for Market Promotion:
Financial capacity of company is a vital factor affecting promotion mix.
Advertising through television, radio, newspapers and magazines is too
costly to bear by financially poor companies while personal selling and
sales promotion are comparatively cheaper tools. Even, the company may
opt for publicity by highlighting certain commercially significant events.
6. Type of Market:
Type of market or consumer characteristics determine the form
of promotion mix. Education, location, income, personality
characteristics, knowledge, bargaining capacity, profession, age,
sex, etc., are the important factors that affect company’s
7. Size of Market:
Naturally, in case of a limited market, personal selling is more
effective. When market is wide with a large number of buyers,
advertising is preferable. Place is also an important issue. Type
of message, language of message, type of sales promotion
tools, etc., depend on geographical areas.
8. Stage of Product Life Cycle:
Product passes through four stages of its life cycle. Each stage
poses different threats and opportunities. Each stage needs
separate marketing strategies. Each of the promotional tools has
got different degree of suitability with stages of product life cycle.
It can be concluded that, in normal situations:
(1) Advertising, personal selling, and, even, sales promotion are
used during the introduction stage. However, advertising is given
(2) More intensive advertising and sales promotional techniques
are used during the second stage,
(3) More rigorous advertising along with personal selling are
followed in the third stage, and
(4) Company prefers to curb the expenses in forth stage, and
promotional efforts are reduced.
7. z 9. Level of Competition:
Promotional efforts are designed according to type and intensity of
competition. All promotional tools are aimed at protecting
company’s interest against competition. Level of promotional efforts
and selection of promotional tools depend on level of competition.
10. Promotional Objectives:
It is the prime factor affecting promotional mix. Different objectives
can be achieved by using different tools of promotional mix. If
company’s objective is to inform a large number of buyers,
advertising is advisable. If company wants to convince limited
consumers, it may go for personal selling. Even, when company
wants to influence buyers during specific season or occasion, the
sales promotion can be used. Some companies use publicity to
create or improve brand image and goodwill in the market.
11. Other Factors:
Over and above these factors, there are certain minor factors
that affect promotion mix.
These factors may include:
i. Price of Product
ii. Type of Marketing Channel
iii. Degree of Product Differentiation
iv. Desire for Market Penetration, etc.
Integrated Marketing Communication
Integrated Marketing Communications (IMC) is a concept under
which a company carefully integrates and coordinates its many
communications channels to deliver a clear and consistent
message. It aims to ensure the consistency of the message and
the complementary use of media.
IMC is an integration of all marketing tools, approaches and
resources within a company which maximizes impact on the
consumer mind resulting in maximum profit at minimum cost.
It uses several innovative ways to ensure that the customer gets
the right message at the right place and right time.
BENEFITS OF USING INTEGRATED MARKETING
1. Improved Results
With the traditional marketing, you’ll find businesses setting up
different campaigns for separate marketing streams. You’ll get
press releases, advertising, direct marketing and sales promotions.
Each of these marketing teams will have their stomping ground,
and never shall they meet while carrying out their duties.
However, an integrated approach ensures that all these units come
together to form one big and beautiful marketing machine. The
information released by the press is backed up by blog posts and
articles, external marketing agencies, sales teams etc. This way,
your communication becomes clear enough to your target
audience, obviously leading to improved sales.
2. Improved Brand Image
Not only will the message stay consistent in all the platforms, but
your brand’s elements will line up seamlessly as well. Always
strive to ensure that your content, style guides, logos, voice, and
headers work in tandem as this will ensure that you maximize
your market impact and carve out your niche or industry.
3. Cost Effective
To run a successful business, you have to reduce unnecessary
costs as much as possible, and this is precisely what integrated
marketing campaigns bring to the table. In this case, you’ll be
using the same images and copy for different media, which in
return reduces design, copywriting, and photography costs.
For instance, video production for different marketing media
such as television, YouTube, and other social media platforms
can be very costly. One way to avoid this problem is to use an
external communication supplier. This will help you reduce
agency fees, because you’ll work with a single firm that offers
integrated marketing communication services.
4. Increased Morale
IMC is great when it comes to building trust in your
business/brand and increasing revenue. But on top of that, it
also helps your business internally because your marketing
team will have to pull together to run an integrated campaign
When your team works together, they’ll become one well-oiled
machine that is capable of taking up any campaign challenge. In
turn, they will undoubtedly achieve great results, which can also
act as an excellent morale booster for your employees.
5. Improved Efficiency
Consistently delivering your messages will not only ensure that
you have a stronger impact on the market but also make you
more productive and save money too. You can create
advertisement images once and then proceed to use them
across several marketing channels. You can also decide to
perfect a piece of content and use it on different media.
Alternatively, you can choose to work with a single marketing
agency that specializes in providing an integrated marketing
approach, rather than using a whole host of different agencies.
This way, you’ll save money on agency fees as well as time cost
compared to when you’re dealing with multiple providers.
15. z 6. Diversity
Don’t fool yourself into believing all customers will see all of your
advertising. In fact, experts claim that potential clients need to hear your
message at least seven times before even considering your product. That
aside, a customer who sees your billboard by the roadside might never see
your TV commercials, hear your radio ads, or even see your digital ads.
Lucky for you, integrated marketing communications will ensure your
message remains the same, no matter the type of medium your ads are
using. If your message stays the same, it means none of your potential
customers or clients will miss out on what you’re offering.
Also, don’t forget that through this kind of diversity, you’re able to send
messages to your customers via their preferred platforms. For instance,
different customers might prefer receiving their messages via email, text
message, social media or via podcast. All in all, this type of marketing
technique will reach out to a greater audience, thanks to its diversity.
7. Reduced Confusion
With integrated marketing, buyer’s confusion can be significantly
reduced when choosing a particular product or service, as
opposed to advertising via different communication methods.
Additionally, IMC helps buyers get all the information about
special offers and new product releases. Consumers can then
purchase the products as quickly as possible, thereby avoiding
competition from other brands who sell the same products.
8. Maintained Focus
As mentioned earlier, IMC is also another way of maintaining a
good working relationship within your organization. Your
employees will get the message clearly, as well as the goals,
and work towards achieving them.
When you sync all the parties within your company, you’ll create
an impactful campaign. What’s more, you’ll communicate the
same message both internally and externally, which will enhance
the chances of making good returns on your investment.
Advertising is a paid form of marketing communication by a
An advertisement has many benefits
(a) It carries product image, brand name and identifying logo to
specify the product.
(b) It can list all the features and benefits of the product, giving
complete information about the product.
(c) Since it can be creatively made, it can attract and persuade
most of the customers towards it.
(d) It can have a product brand ambassador promoting the
product to attract the customers.
(e) It can be placed at vantage points for all the customers to
Various types of media that are available for a
marketer are listed below:
i. Print- Newspapers, periodicals, flyers, leaflets, posters.
ii. Electronic- Radio, TV channels, cable operators, movie
theatres, part of movie/TV episode storyline.
iii. Out of Home (OOH)- Hoardings, shop panels/shutters, auto
rickshaw/bus/train panels, mobile display vehicles, bus stops,
railway stations, display units at airports, malls, shopping
arcades, multiplexes etc.
iv. Shop display windows.
v. Door-to-door canvasing.
vi. Sampling at various locations.
20. z 2. Sales Promotion:
To promote means pushing forward or putting at a higher level,
and so PROMOTION means activities done to push forward the
sales volumes or to put sales at a higher level. Sales promotions
mean pushing forward or putting at a higher level, the sales
volumes of a product.
Marketing managers do various activities to promote the sales
volumes of their products. In fact, all the activities and elements
of marketing communication mix are basically directed
towards/conducted to promote sales of the product.
Sales promotions are broadly classified as:
I. Push Promotions:
Push promotions are also called as stock loading promotions as
they help the marketer to push the stock to the channel partners
who in turn push it further to the consumers. These are also called
as below the line promotions as consumers do not understand the
originator of the push and always think that the push is created by
the channel partner.
For consumer products it is the retailer who is pushing the product.
Push promotions are more popular amongst the marketing
managers who are fire-fighting to achieve their targets in the short
Good sales/marketing managers avoid using these promotions as
in their terms, it is buying your sale in advance and not achieving it
through skillful selling. There is always a significant drop in sales
volumes immediately after a push promotion is used.
There are two types of push promotions.
(a) Purchase of Higher Quantity than Normal:
One must understand the difference between quantity purchase
discounts and push promotion directed towards purchase of higher
quantity. The discount on purchase of higher quantity is a part of the
price list and is available to all the customers at all the times but
push promotions are specifically directed towards a few customers
who are capable of buying and pushing to a higher quantity.
Typically, a push promotion is offered only to “A” class customers
who are selling a high quantity of your products as well as the
competitor’s. Offering push promotions to all and sundry customers
lowers the image of the product as the channel partners feel that
the product is not getting sold and needs a ‘Push’.
Some customers who are capable of pushing any products to their
consumers may take disadvantage of the situation and demand
higher incentive for purchasing a higher quantity.
Some of the push promotions can be listed as follows:
i. Ten plus one free
ii. One carton ten units free etc.
Good sales managers will always convert these push promotions and give
the incentives in kind rather than cash/free goods.
This way they can increase the push by offering higher perceived incentive
than actually being given, e.g. Instead of giving Rs. 1000/- as cash
discount, a sales manager will hunt for an attractive gift with MRP Rs.
2000/- and because it is being purchased in quantity from the manufacturer
is available only for Rs.1000/-.
This way the channel partner perceives the incentive to be Rs.2000/- while
the organization spends only Rs.1000/- as planned and gets better results
Another way of giving incentive in kind is to offer free trips, for example, to
Singapore. When the organization is buying the trip from the travel agents,
because they are buying in bulk they get bulk discount and end up paying
much less than the perceived value to the channel partner.
(b) Selling/Pushing Higher Quantity to Consumer than Normal:
This type of PUSH promotion is a longer period promotion than the earlier
type. We can list some of these type of push promotions as follows.
i. Organizations give quarterly/half yearly or yearly targets to their channel
partners and on achieving these targets they are given big incentives. The
channel partners push the products to achieve the target and get additional
ii. Organizations declare targets to their sales staff and on achieving these
targets they get a title as Star Salesman/officer with a special necktie and
iii. Organizations declare targets for the interim sales staff of the channel
partners to push the products and give them incentives on achievement of
the targeted sales.
Push promotions always give good results when the channel partners
consider your product equal to the brand/category leader and convert the
customers of other products to your customers temporarily or sometimes
II. Pull Promotions:
Pull promotions create a consumer ‘Pull’ for the product and in
this type, consumers are incentivized to purchase the product.
26. z The following types of pull promotions are common:
a) On Pack Gift:
On pack gift was a very popular method of pull promotions, but
is not used much now for operational difficulties. Sway detergent
powder and then many other soap companies used this method
very effectively in olden days by giving a large serving spoon
along with the pack.
Of the many popular on pack gifts, we can list the following
which were very successful:
i. Glass ‘Katori ‘offer on Elaichi Horlicks.
ii. Stainless steel spoon offer on Plain Horlicks, Boost and many tea
iii. Train photos and album free on Boost.
iv. Cricketer’s photos & album on A1 fruity (toffee).
v. WWF photos on Oven fresh bread.
vi. Tiny animal replicas on Binaca.
vii. Sketch pen on Maggie noodles.
viii. Cold coffee shaker on Nescafe.
ix. Mugs on Boost, Tata coffee.
The problem now is that the retailers are creating problems as
many retailers do not give the gift to the customers and sell the gifts
separately for profit, leading to failure of the promotion. Another
problem is that the retailers ask for very high handling charges for
the promotion, increasing the cost of the promotion.
(b) Additional Quantity at the Same Price:
This is a very popular method currently and most of the FMCG
companies are using it regularly.
Some of the most popular amongst them are as follows:
i. Horlicks 500 gms at the rate of 450 gms and one kg at the rate of
800 gms promotion (This promotion blocked the launch of plain Milo
– a Nestle product successfully).
ii. 30% more quantity at the same rate on many shaving creams
and shampoo sachets.
iii. 20-30% more quantity in Colgate and other tooth powder packs.
iv. 20% more quantity at the same rate in many hair oils.
29. z (c) Price Off:
This also a very popular promotion idea being used again with
tamper-proof labeling available to manufacturers now.
(d) Scratch Card with Pack:
Scratch card with the pack is a promotion that has very limited
success as most of the time the customers get only the lowest
promised gift or no gift, so customer support for it is negligible. In
this promotion, the customer is given a scratch card along with
After scratching the card, it shows the gift the customer is
entitled for. It worked initially for its novelty value but does not
give the desired results any more.
(e) Mystery Gift inside the Pack:
This scheme is still popular as customers get some or the other
utility gift inside the product. The limitations are from the
packaging front as the gift needs to be packed in such a way
that it does not hamper the quality of the product and does not
go against the Packaged Commodity Act. Some organizations
have successfully used this by giving gold chains and coins
inside the pack. Currently Lux is offering a gold coin inside the
(f) Lucky Numbers on the Wrapper/inside the Crown:
In this promotional scheme, marketer’s print lucky numbers on
the wrappers or inside the soft drink bottle crown and
instructions to get gifts are given on the wrapper and advertised
in the print media. The consumer after getting the lucky number
contacts the given address and collects the gift.
(g) Gift on Repeat Purchase:
This is a type of promotion directed towards creating loyalty
amongst the consumers. This is operated in various ways e.g.
Giving a discount coupon on the next purchase or bringing in
collection value to the gift offered in each pack.
Successful promotions of this type are listed below:
i. Poison Butter Gift Coupons:
Poison Butter, the only packaged butter available in India before
Amul was introduced, was sold in 50 gms, 100 gms, 200 gms
packs. The sides of the outer cardboard pack used to have
discount value or gift coupons. Customers were required to
collect the coupons of various values to claim various gifts of
different value. Since the gifts were attractive and not readily
available in the retail market, customers used to collect the
coupons and claim the gifts.
33. z ii. Wimco Matches Alphabet Promotion:
In Wimco match boxes the alphabets W I M C & O were
imprinted and customers were required to collect a set that
spells WIMCO to claim the gift. Since one of the alphabets was
hard to get, customers kept on purchasing to complete the
iii. A1 Fruity Cricketer’s Photos:
A1 Fruity, a popular toffee used to give a small photo of
cricketers inside the pack. Children used to collect these photos
and once they had completed the series of all 32 photos could
claim a printed album from the company. Students used to
exchange these photos and try and complete the series. It was
iv. Boost Train Promotion:
Boost came out with a unique train promotion wherein there
used to be one of the twelve different photographs of trains from
different parts of the world. After collecting all the twelve,
customers could claim a printed photo album with detailed
information about those trains.
Inside the album there was a form that used to ask the customer
why he liked Boost (Slogan) and contact details. Customers with
good slogans got a toy train which operated on battery. This
promotion was a huge success.
(h) Gift on Purchase of Multiple Quantities:
These types of promotions are also popular in consumer
consumables as well as consumer desirables.
35. z Some of them can be listed as follows:
i. Buy three get one free is a common promotion on many soap
ii. Buy two get one free is a common promotion on many textile
Product in Attractive Pack:
Sway, a detergent from Swastik Oil Mills came out with an
attractive bucket pack for 2 kg of Sway and it sold very well, in
the days when plastic buckets were a novelty. The same idea
was then replicated by Nirma with good success. Since then,
many products have been offered in attractive packing to get
Some of them can be listed as follows:
(a) One kg. Horlicks/600 gms Boost in an attractive floral jug.
(b) Two hundred grams of Nescafe in an attractive kitchen jar.
(c) Cadbury’s celebration packs.
3. Personal Selling:
Personal selling is the most important and original form of
marketing communication. In this, the sales person meets the
customer and convinces him to purchase the product.
The following personal selling situations are common:
(a) Door to Door Selling:
In this situation, a sales person/vendor carries products with him
door to door and explains the product, its features, and benefits to
the customer and tries to sell the product. The sales person may
attract the customers by shouting the product name so that
customers come out or may tap individual doors and talk to the
The sales person has the advantage of showing the demonstration
of the product to convince the customers e.g. Eureka Forbes selling
(b) Street Vending:
The sales person may squat on the road displaying his products
or may use a handcart and move around carrying the product. In
this form also the vendors are seen to be shouting the names of
the products to attract the customers to come out of their homes
and buy the products.
(c) Roadside Stalls:
Instead of moving around carrying the products, some sales
persons choose to construct a stall on the roadside and sit there
regularly. Customers keep coming to him, where he convinces
them to buy the products.
(d) Stalls in Exhibitions:
New concepts, novelty products and new products are displayed in various types
of exhibitions by taking a stall there. Most of the exhibitions have attractions for
children in the form of games like Merry-go- round and food stalls to attract the
People come to see new concepts, novelty products or simply enjoy a
family/friends outing and the marketer gets a chance to communicate with them
and explain the utility of their products.
(e) Shop Counter Sales:
This is the easiest form of marketing communication and selling situation. The
shopkeeper arranges all his products in a proper display where any customer
entering the shop or passing by the shop notices various products and enters
the shop with the intention to buy or get information about the product.
The counter salesman can communicate with the customer and give him all the
information to persuade him to purchase the product. Since the customer has
entered the shop with the intention to buy the product and if he is satisfied with
the information, it is easier to sell the product.
(f) Selling through Channel Partners:
All the FMCG products, and many industrial/institutional products are sold
through channel partners. We have already seen various channel designs
and their utility. In selling through channel partners, the organizations need
to convince the channel partners to stock and sell the products.
Channel partners make the product available at the maximum possible
locations and the marketer can inform the consumers about the availability
at these places, through advertising in the media.
(g) Ethical/Missionary Sales:
In this situation, representatives visit medical practitioners and explain to
them the product features, benefits and effective dosage for various age
groups. The medical practitioners when motivated, prescribe the medicinal
products to their patients.
Since there is no use of advertisements (according to medical practitioners,
for advertised products unethical practices are used to lure customers) in
this type of sale (medical practitioners refuse to prescribe advertised
products even if they are the best) it is called as an ethical sale.
(h) Industrial/Institutional Sale:
In Industrial/Institutional sales, mostly channel partners are not
used and sales persons are sent directly to meet the prospective
customers to sell the products by giving full information about
the utility of the products to the industrial/institutional customers.
4. Public Relations:
Public relations are a paid form of marketing communication
without a declared sponsor. When an organization wants to
create good opinion about itself or its products, the
communication needs to be done by a third party and the
consumers are necessarily kept in the dark about the
organization prompting the message.
Many organizations get events organized where the prominent
speakers talk about topics like for example, public health and
then talk about the goodness of a particular product that is
helpful for the purpose. The customers listening do not know
that the event has been arranged only to promote the product’s
sale and take it as expert opinion and start using the product.
Corporate Social Responsibility (CSR) activities can also be
termed as public relations even when the known sponsor is
present. CSR helps improve the image of the organization and
its products. E.g. Hand-washing day sponsored by HUL to
promote Lifebuoy soap is a CSR/ public relation activity of HUL
that promotes washing hands and then says,’ Lifebuoy is best
for the purpose.’
5. Direct Marketing:
In direct marketing, customers are contacted by the marketer
and are communicated about the product.
The following methods of direct marketing are most
(a) Mail Order:
In this type, customers are given information about the
product in various ways described below and asked to
order the product directly:
45. z i. Catalogue Selling- Customers are provided with catalogues
giving descriptions of products. They can choose the product
and send order along with the money order/demand draft and
get the products home- delivered.
ii. Advertisements- Advertisements giving contact details and
prices are published. Customers can choose the product and
send order along with the money order/demand draft and get the
products home- delivered.
iii. Mailing Shots- Data of prospective customer’s contact details
is procured from secondary sources and printed
brochures/leaflets are mailed/posted asking them to order the
chosen products by sending the money in advance.
Data of prospective customer’s contact details is procured from
secondary sources and they are called on telephone/mobile to
give information about the product and persuaded to purchase
the product directly by ordering it with money sent to the
Various television channels air programs where manufacturers
can display and demonstrate their products and convince
customers to order their products directly.
With internet becoming common to most of the customers in
developed and developing nations, marketing through internet is
becoming common. This type of marketing is called as E-
commerce, a short form for electronic commerce.
Advertisements are posted on the internet and various social
networking sites to give information and demonstrations about
the product and customers are attracted and persuaded to
purchase the product by sending orders directly to the
(e) Factory Showrooms/Outlets:
In the olden times, artisans used to sell their wares at their
production site only to the customers who visited the artisan with
their requirements. Today, many manufacturers open up factory
outlets/showrooms where their products are put on display and
sold directly to the customers.
Factory outlets/showrooms operated through franchisees do not
qualify to be called as direct selling as the franchisee is an agent
selling the products for the manufacturer.
(f) Personal Selling Vs. Direct Marketing:
i. Face to face contact with customer gives opportunity to clarify
ii. New customers can be enrolled by explaining features and
iii. Customer can handle the product before purchase.
iv. Customer has more faith when purchasing from a person who
v. Market expansion is possible by reaching out to all the
vi. Real time situation of market conditions at various locations
can be understood.
vii. Competitive activities can be observed and immediate
reaction to counter can be taken.
i. High cost of selling if volumes are low.
ii. Effective monitoring and control required to keep sales staff
motivated and efficient.
iii. Regular training of sales staff is required.
Benefits and Drawbacks:
i. Low cost of selling.
ii. Less number of sales staff required.
iii. Building customer faith is difficult.
iv. Imitations can eat into market share.
v. Imitations can spoil market reputation.
vi. No understanding of customer problems, objections to quality,
quality complaints etc.
vii. Competitive activities are not known, so competitors can
become more active and become leaders before you know the
reasons for loss of sales.
viii. Deliveries dependent on logistic partners, who may fail many
ix. New market expansion is not easily possible.
6. Events and Experiences
These are company sponsored activities and programs
designed to create brand-related interactions with customers.
Sponsorships improve the visibility of the company. Companies
provide customers with an experience of using the product
which ends up leading to a higher brand recall than competitors.
These events prove to be engaging with the audience
7. Social Media Marketing
The concept of social media marketing basically refers to the
process of promoting business or websites through social media
channels. Companies manage to get massive attention on such
channels and can interact with consumers as and when they are
browsing the internet.
New and modern ways of communications are developing on
these social media platforms and are proving to be the future of
promotions. They have the ability to be highly interactive and up
to date with the customers.
8. Mobile Marketing
Mobile marketing involves communicating with the consumer via
a mobile device, either to send a simple marketing message, to
introduce them to a new participation-based campaign or to
allow them to visit a mobile website.
Cheaper than traditional means for both the consumer and the
marketer, mobile marketing really is a streamlined version of
online marketing the use of which is increasing as time
progresses. Examples are advertisements that we see on
9. Viral Marketing:
Viral marketing occurs when consumers pass on or recommend
product/company/website to others. This could be via email, or bulletin
boards or word of mouth.
Viral marketing may take the form of video clips, interactive Flash games,
advergames, ebooks, brandable software, images, text messages, email
messages, or web pages. The most commonly utilized transmission
vehicles for viral messages include: pass-along based, incentive based,
trendy based, and undercover based. However, the creative nature of viral
marketing enables an "endless amount of potential forms and vehicles the
messages can utilize for transmission", including mobile devices.
The ultimate goal of marketers interested in creating successful viral
marketing programs is to create viral messages that appeal to individuals
with high social networking potential (SNP) and that have a high probability
of being presented and spread by these individuals and their competitors in
their communications with others in a short period of time.
Merchandising refers to the methods, practices and operations
conducted to promote and sustain certain categories of
commercial activity. The term is understood to have different
specific meanings depending on the context.
Merchandise is sale goods at a store
11. Word-of-Mouth Marketing:
Word of mouth, or viva voce, is the passing of information from person to
person by oral communication, which could be as simple as telling
someone the time of day. Storytelling is a common form of word-of-mouth
communication where one person tells others a story about a real event or
something made up. Oral tradition is cultural material and traditions
transmitted by word of mouth through successive generations. Storytelling
and oral tradition are forms of word of mouth that play important roles in
folklore and mythology. Another example of oral communication is oral
history—the recording, preservation and interpretation of historical
information, based on the personal experiences and opinions of the
Oral history preservation is the field that deals with the care and upkeep of
oral history materials collected by word of mouth, whatever format they may
In marketing, word-of-mouth communication (WOM) involves the
passing of information between a non-commercial communicator
(i.e. someone who is not rewarded) and a receiver concerning a
brand, a product, or a service.
When WOM is mediated through electronic means, the resulting
electronic word of mouth (eWoM) refers to any statement
consumers share via the Internet (e.g., web sites, social networks,
instant messages, news feeds) about a product, service, brand, or
If the sender of word-of-mouth communication is rewarded than this
process is referred to as word-of-mouth marketing, which relies on
the added credibility of person-to-person communication, a
personal recommendation. Using WOM as an opposing force to
commercially motivated word-of-mouth marketing has been coined
12. Interactive marketing:
Interactive Marketing refers to the evolving trend in marketing whereby
marketing has moved from a transaction-based effort to a conversation.
Interactive marketing features the ability to address an individual and the
ability to gather and remember the response of that individual” leading to
“the ability to address the individual once more in a way that takes into
account his or her unique response.
Interactive marketing is not synonymous with online marketing, although
interactive marketing processes are facilitated by internet technology. The
ability to remember what the customer has said is made easier when we
can collect customer information online and we can communicate with our
customer more easily using the speed of the internet. Amazon.com is an
excellent example of the use of interactive marketing, as customers record
their preferences and are shown book selections that match not only their
preferences but recent purchases.
The placement of advertising in unusual and unexpected places
(location) often with unconventional methods (execution) and
being first or only ad execution to do so (temporal). Newness,
creativity, novelty and timing are key themes in ambient
advertising. This definition is deliberately narrow and attempts to
exclude ‘mainstream’ advertising Implicit in this definition are
that Ambient is a moveable and somewhat subjective term and
will shift according to the advertising norms of the day.
One of the fundamental premises of Ambient is that the world is an
advertising stage. Everything is a potential advertising medium—
sides of cows, rockets, golf-hole cups etc.
Ambient was first used in relation to advertising in 1996 by Concord
Advertising, a UK agency specializing in outdoor campaigns.
It evolved from a need to apply a single term to what was an
increasing request from clients for ‘something a bit different’ in their
advertising. Clients, concerned with issues of cut-through,
competition, decreased effectiveness and disinterested audiences
wanted (and still want) advertising ‘with bite’ from their agencies.
This push by clients for something different saw agencies placing
ads in unusual places, such on as floors, petrol pump handles and
backs of toilet doors - previously not considered as locations for
Such campaigns did not fit neatly into existing categories like
out-door, print, radio or television and hence anew term was
coined. Unusual locations are considered a defining
characteristic for Ambient advertising.
However, ‘unusual locations’ lose their point of difference with
repetition and time, and so cease to be something different.
This suggests two things.
Unusual location is not the only point of difference for Ambient. The
method of execution is often unusual as well.
Holographic projections, role-plays and graffiti are a few examples
of this and certainly fit within the ‘something different’ imperative
This suggests two things. Unusual location is not the only point of
difference for Ambient. The method of execution is often unusual as
Messages on the backs of car park receipts
Hanging straps in railway carriages and on the handles of
Projecting huge images on the sides of buildings
Slogans on the gas bags of hot air balloons
Ambient media in the field of advertising are often mixed with
ambient media developed based on ambient intelligent technology
Definition: Marketing materials or advertising placed next to the
merchandise it is promoting. These items are generally located at
the checkout area or other location where the purchase decision is
Thus POP is Advertising that is built around impulse purchasing
and that utilizes display designed to catch a shopper's eye
particularly at the place where payment is made, such as a
checkout counter. There are various types of point-of-purchase
displays, including window displays, counter displays, floor stands
display bins, banners of any kind, and all types of open and closed
display cases. Generally, these displays are created and prepared
by the manufacturer for distribution to wholesalers or retailers who
sell the manufacturer's merchandise. Often, a manufacturer will
discount the cost of merchandise or in some other way compensate
the retailer for using a point-of-purchase display.
66. z MAJOR TYPES OF POP
1. Signs differ from displays in that the messages on them are
more general. They may serve notice that a given brand is being
promoted or simply direct shoppers to an area of the store where a
product is on sale. Signs attached to a display may include price or
other information about the product.
Shelf media, such as shelf-talkers and shelf strips, may be
attached to existing fixtures, and they don't take up precious floor,
wall, or counter space.
2. Windows Displays.
These are very popular methods used by chemists’ department
stores showrooms. In fact the term “Window Shopping” has been
used to describe “the pull“these attractive window-displays exert on
every passes-by Window display contents are used by
manufactures to promote retailers to display their products
attractively. At present Wipro’s BabyCare product have grabbed
window displays at chemists outlets.
3. Displays Cards.
These are elaborate cut-out models that are placed outside the
retail outlet or placed near the cash-counters.
Frooti, a tetra bricks pack soft drink used this medium effectively.
Huge cut-outs of the model drinking Frooti were placed besides
boxes filled with hay and foorti packs.
This gave an impression that Foorti was as fresh as mangoes.
4. Wall Displays.
Here the folders may be stringed placed across the wall
5. Merchandising of Racks and Cases.
The manufactures may supply the display racks for their
products. The round jar of Cadbury’s Eclairs placed besides the
cash counters the racks to display Maggi Soups and the huge
hamper with Maggi Noodles swinging at the doorway of the retail
outlets are striking examples.
6. In store Commercials.
This is the latest form of P.O.P advertising. The commercials are
viewed by consumers within the store and act as sales people
trying to effect a sale. Electronically operated display panels
near cash counters or small screens near shelf-spaces can be
used to exhibit the commercials. These are common in
ADVANTAGES OF P.O.P ADVERTISING
1. It is the last advertising opportunity before the purchase and
therefore the manufactures has to hardsell.
2. The P.O.P material is generally similar to the press and TV
advertisements and therefore acts as a reminder of mass
3. It provides information and identification of the brand its image.
4. the most important advantage is that it increases the sales
turnover and makes their outlets attractive.
5. Retailers recognize the value of P.O.P as it increases the sales
turnover and makes their outlets attractive.
6. Sales promotion contents can be successful by P.O.P material,
for example: A retailer may display the latest Pepsi promotional
7. At times it can be economical and convenient for the retailer
to use P.O.P material, for Example: A manufacturer may be
willing to supply one with advertising for his brand, at a cost
lower than a retailer would pay for one without advertising. In
short P.O.P advertising acts as a dealer aid as well as stimulant
8. Manufacturers need not depend upon retailers to push their
brands as the P.O.P acts as a pull technique.
9. As organized retail such as Big Bazar increases, self service
will become the order of the day. This increases the importance
of P.O.P advertising
LIMITATIONS OF P.O.P ADVERTISING
1. With growing competition manufactures are fighting for limited
retail spaces. This increases the clout of retailers.
2. P.O.P material is useful only when it is placed at a high level
or in an attractive manner. This may not be always possible.
3. A clutter of too many P.O.P materials may confuse the
4. Retailers are not too bothered about installing the display and
when one salesman installs the P.O.P materials, the next
salesman from the next sales firm replaces the display with his
own. This limits the life of the P.O.P materials.
5. Wall displays and signs may get damaged or may deteriorate.
6. Display racks may misused by stocking it with competitive
7. Retailers usually do not pay for P.O.P material and therefore
may not use it correctly and effectively.
7. Large manufactures having a long term relationship with the
retailers and financial clout may enjoy premium places for their
displays to the disadvantage of smaller manufactures
INTEGRATED MARKETING COMMUNICATION
The first integrated marketing communications example that comes to mind is
Go Pro. Go Pro has used IMC components extensively and precisely.
GoPro has mastered the use of online content to catch the attention of its target
audience. The company has a YouTube channel where it seeks out a multitude
of videos shot with the high-quality, mini action cam including exciting, unique,
and simplistically beautiful shots taken by users and by the company itself, to
reach its target audience.
They have hundreds of thousands of follows and likes on Facebook, Twitter, and
Instagram, and have used the platforms to catch the attention of its fan base by
posting short, visually stimulating videos taken with the cameras. To maximize
SEO, GoPro has a contest almost every day online where entrants have the
chance to win one of every product that they carry and the newest camera they
The company has also used publicity in its marketing efforts to reach its target
audience. In the early days, they relied on word of mouth and slowly moved and
heavily leveraged the online platform for its promotions.
In the modern era of digitization, traditional tools of Integrated Marketing Communication
(Advertising, Sales Promotion, Public Relations, Direct Marketing and Personal Selling) are
proving to be more of a base on which the modern tools (Events and Experiences, Social
Media Marketing and Mobile Marketing) are emerging. The modern tools are enhancing the
consumer experience and the impact the messages have on the audience. Modern tools
provide low cost targeted communications having high visibility and high influence.
Tools like social media, mobile, online and i-marketing also offer the advantage of data
analysis where the companies can track the reach, effectiveness and response for the
message. After analysing messages having higher consumer response rate and
preferences, companies can accordingly tweak and personalize their targeted
Consumers are turning more frequently to various types of social media to conduct their
information searches and to make their purchasing decisions. They are often found
searching for and comparing product features online, thus making an informed decision.
Creating influence here is proving to give higher returns than ever and a growing 83% of
marketers now place a high value on social media marketing.
It is thus safe to say that marketing communications are becoming more and more
personalized with the advent of modern tools and hence pave the way for the future.
75. z Domino’s
Pizza restaurant chain Domino’s created the “AnyWare” campaign in order
to help people order food in more convenient ways. It allows customers to
order pizza with a smart television, tweet, text or a smartwatch.
The idea was possible because two years prior to AnyWare, Domino’s
established Pizza Profiles, which save customers’ payment information,
addresses and an Easy Order. The easy order is a customer’s favourite
food order which includes elements like a preferred payment method, order
type (delivery or carryout) and address or favourite store.
It very smartly used different IMC Components like a national television
campaign, press releases and online marketing to attract customers to its
website AnyWare.Dominos.com where they can learn about the new ways
This resulted in the site getting 500,000 more visits, generated 10.5 per
cent year-over-year sales growth and made Domino’s achieve its goal of
having half of all orders be made digitally.
These two primary examples show that IMC components, if used
extensively and optimally, go a long way in benefitting the company’s