Chapter 7

Promotion

©2022 | Basic Marketing

by Salman Zaheer
Digital version of the book is available for FREE: https://archive.org/details/basic-marketing-2020
1
Printed copy can be obtained from: https://www.readings.com.pk/pages/BookDetails.aspx?BookID=1370613
Chapter-7

Table of Contents

Opening Scenario: Branding Cricket

• Promotion Mix
• The Communication Process
• Push and Pull Strategies
• Managing the Promotion Mix

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Chapter-7

Opening Scenario

Branding Cricket

• Cricket is a famous sport in Pakistan.

• Cricket has many variants such as test cricket, ODI (One Day International),
T20 and now 100-ball cricket.
• T20 is arguably the most famous form as a match is concluded in just about 3-
hours.
• T20's original idea was initiated by England in 2003.
• Which was further popularized by IPL (Indian Premier League) in 2008.
• Pakistan also introduced Twenty20 cricket league named as PSL (Pakistan Super
League) which was founded in September 2015. 3
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Opening Scenario

• In 2016 it started matches in UAE to catch eyes of cricket lovers.

• The former Pakistani National team captains Wasim Akram and Rameez Raja were
contracted by PSL to run their promotional campaigns and were also made brand
ambassadors.
• PSL 2018 was planned with most matches in Dubai, Sharjah etc. and finals in Pakistan
(Lahore & Karachi).
• It was broadcasted on channels in multiple countries' such as in Pakistan on PTV Sports
and Ten Sports, in Afghanistan, Australia, Bangladesh, Middle East, UK and USA.
• Logos and names of teams were chosen for relevance, such as Peshawar Zalmi (meaning
friend) that has a touch of KPK.

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Opening Scenario

• It had these five teams and because of initial success it now consists
of six teams with Multan Sultan's introduction in 2018.
• PSL’s commercials also became a hallmark of excitement.
• The PSL has given a good start to T20 and has also collaborated with
some well-known coaches.
• They also have some prominent international players in the teams as
well such as Chris Gayle, Sangakkara, Shane Watson, Darren
Sammy, Brendon McCullum and more.
• Collectively PSL by PCB has brought a strong marketing medium
and it seems even more refinement will be coming in future.
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Promotion Mix
• Promotion Mix: A subset of marketing mix and a combination of one or more promotion
tools.

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Need for IMC (Integrated Marketing Communication)

• Integrated Marketing Communication (IMC): A strategy
in which each component of promotion mix is carefully
coordinated to deliver a clear and consistent message.
• For example: Ufone’s ads have higher consistency in this
regard as their TVCs show humour and often similar
colour scheme is followed in their press ads too with
similar message.

Ad - Ufone https://youtu.be/XJhq5-Lgfm4 7
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Advertising
• Advertising: Nonpersonal communication that is paid by a
company for good, service or idea.
• The word 'advert' has been derived from Latin meaning 'to
turn mind/attention towards', or to divert attention.
• Advertising is on:
• Broadcast (TV and radio)
• Press or print includes magazine and newspapers etc. In outdoor promotion various
methods are used besides
• Outdoor (billboards, banners etc.) billboards, such as utilizing a
bridge sides as done here for
Sufi brand.
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Ad - Kenwood (Love between spouses) https://youtu.be/mcAuaRazfns
Chapter-7

Advertising
• Political parties also use advertising to sell their
product 'good governance”.
• Advertising is one of the most convenient ways to
reach large number of people and thus in persuading
people to buy it.
• For example, Coca Cola is one of the top brands of the
world but even they spent almost $6 billion (18% of
their revenue in 2018) on their advertising just to keep
themselves in mind of people.

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• Product Placement: A sales

promotion tool that uses a brand
name in a movie or TV show.
• Product placement has evolved
to another level with advent of
cinema and movies.
• If the product placement is Brands have been using various
medias for 'product placement'
totally out of sync from story to reach the masses.
then it may damage the brand. Transformers movie series has
been featuring over 40 brands in
each film as analyzed here by
Hollywood Branded.
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Advertising
• It costs millions of dollars to have product placement, but it
still is cheaper than a 30-second ad in terms of impact.
• For example: Pakistan's famous drama serial Suno Chanda
on HUM TV has a lot of product placement of Al-Karam
brand and Oppo, as the actors keep repeating about visiting
Al- Karam again and again in multiple episodes.
• Based on a research by Gallup overall daily TV viewership
has fallen from 2.25 hours to 2.01 in Pakistan from roughly
2014 to 2017.

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Direct Marketing
• Direct Marketing: Promotion approach that uses directly
approaching the target customers such as via telephone, mail or
door-to-door selling.
• Direct marketing is connecting with carefully targeted individual
consumers to both obtain an immediate response and cultivate long
lasting customer relationships. It may use following:
• Direct mail (postal),
• Catalogues marketing,
• Telephone marketing,
• Kiosks (stalls), 12
• Door-to-door leafleting.
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Personal Selling
• Personal Selling: Selling that involves direct interaction
between a salesperson and customer.
• Personal selling can take many forms as an example if
you order a burger and the person behind the counter
suggests up-sizing your order, it is also a type of
personal selling.
• Personal selling is usually done in insurance, sale or
purchase of automobiles, real estate (which includes Personal Selling is face to face
interaction with customer.
sale or purchase of property, house or rent a house etc.).

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Public Relations (PR)

• Public relation is a communication strategy that companies use to build
good relations with the public.
• A PR (Public Relations) department plans for promotion of such
activities. It may include newsletter, magazines, public interviews etc.
• It invites press conferences to announce release of products or other
good steps taken by company.
• For example, Toyota had an issue in 2010 about pedals, so it recalled
8.1 million vehicles from the world, closed the advertising campaign
and hired a firm for its PR to deal with this crisis.

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Public Relations (PR)

• Sometimes public demands and expects social
responsibility from companies such as employee
welfare, environmental friendly products, community
improvement and various other similar causes.
Sponsorship is when an organization provides money or
resources for an event or activity in exchange for a direct
association with that event or activity. Sponsorship: UEFA is European
• Sports sponsorship is in particularly very famous as it Football that is sponsored by
a large number of famous brands.
provides a lot of media coverage and publicity.

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Public Relations (PR)

• Many vloggers (who make and post videos online)
who have a large number of subscribers on YouTube
are also occasionally sponsored by various brands for
promotion.

Vloggers are contacted by brands as Irfan

Junejo shared his review about 'Emirates
A380, Business Class' upon being
sponsored by them.
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Sales Promotion
• It is short-term incentive to encourage the purchase or sale of
a product or service.
• Sales promotion gets quick response from the customers.
• Consumer-oriented sales promotions include discounts,
coupons, premiums, free samples, contests, deals, rebates and
demonstrations etc.
• A frequent flyer program that targets such customers who
purchase often is sales promotion.
• For example, Emirates creates different cards for its
customers.
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Sales Promotion
• As advertising brings awareness and sales promotion helps in trial or
purchase.
• Advertising says, “buy our product,” while sales promotion says, “buy it
now.”
• Companies often provide a sample product to such third parties that
review a product, so they may test it and spread the word about it.
• When Nintendo launched its Wii console in 2006, they used free
sampling type model to allow people to experience playing it almost two
months before its launch.

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Digital Marketing
• Digital Marketing: Usage of internet for promotion
through channels as websites, search engines, online
videos, blogs, vlogs, social media, mobile ads and apps.
• Another advantage is that catalogues and prices can be
changed very quickly and easily especially in cases where
products are also being sold online only as there is no
hassle of retailer complaints.
• It also saves the company from arguing with and guidance
of sales team, because it is communicating with
consumers directly
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Digital Marketing
• In Pakistan total online population is
approx. 44 million (over 4 crore) as of start
of 2019 or almost 22% of population.
• Digital marketing is a lot cheaper and
targeted than traditional mass media and is
consuming share of other mediums rapidly.
• Internet ad spend in 2020 is now above 50%
or more than all other mediums combined.

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Digital Marketing
Website ads are any promotion on internet such as
slides showing up at a website. e.g. Careem ads
often pop-up in app downloads and on
miscellaneous websites.
• Email marketing is also very widely used.
• Mobile marketing includes SMS as well as
apps.
Food Panda is a famous app that allows
Online videos is another important tool. It may food delivery from various restaurants to
doorstep. It also sends SMS promotion to
have many forms. Sometimes companies post their its customers.
TVC online either before or after the commercial
campaign on TV/cable to extend their reach. 21
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Guerrilla Marketing
• It is low-cost but unconventional and innovative way to
promote a product.
• Mostly practiced by new companies since they don't have
large marketing budgets.
• Instead of cash, it requires creativity and imagination, the
ability to think out of the box.
• A form of guerrilla marketing is Buzz marketing that is
offline spreading of word, cultivating opinion leaders and
getting them to spread information about a product or
service to others in their communities.
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Digital Marketing
Blogs are a type of online journals that focus on one
precise topic. These are also
utilized by marketers to reach their specific target
market.
Social Media has become another highly influential
medium for consumer interaction
with brand. It includes Facebook, Google+, Twitter, Social Media has become a
Instagram, Pinterest, LinkedIn, highly influential medium for
consumer interaction with brand.
Snapchat, YouTube etc.
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The Communication Process

• Communication Process: The transmission of a promotional message from sender to
receiver by encoding it by choosing the words, pictures and other symbols and then
displaying it on a channel/ media.

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The Communication Process

Sender: It is the initiator of message in the communication system as
company or advertising agency.
Encoding: The message must be converted into clear terms
and conveyed through a communications channel.
Channel/media: The message is transferred by a channel or
media i.e. a means of communication such as a salesperson,
advertisement or public relation instruments.
Noise: Noise includes irrelevant factors that can influence and
hinder effective communication by creating lot of problems in
the message received.
Decoding: It is interpretation of message by the receiver. 25
There may be gaps over here too due to multiple reasons.
Chapter-7

The Communication Process

Feedback: It is the receiver’s reaction and it completes the
process.

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Push and Pull Strategies

• Push Strategy: Directing promotional mix towards channel members to gain their
cooperation in ordering and stocking the product.

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Push and Pull Strategies

• An example of PUSH strategy is often found by biscuit

companies, where they promote their products through retailers
by providing them incentives to encourage retailers to sell
higher in volume.
• It is usually beneficial when:
1. Product categories where there is low brand loyalty.
Coke focuses more on push
2. Where many acceptable substitutes are available in the market. strategy by giving incentives to
3. When the brand choice is often made in response to retailers in Pakistan, while Pepsi
on pull strategy.
displays in the stores.
4. The product purchase is unplanned or on impulse 28
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Push and Pull Strategies

• Pull Strategy: Promotion effort directed primarily at end user so that they ask
retailer for product.

• An example of pull strategy is by the Apple Company as they promote so heavily

via TVCs and billboards several months before a new iPhone is launched as a
result there is a huge line outside the Apple store just to buy the product, even if 29
the new cellphone is barely different from the previous one.
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Push and Pull Strategies

• Pull Strategy is usually beneficial when:

1. The product demand is high.
2. It is possible to differentiate the product on the basis of real or emotional
features.
3. Consumers show high degree of involvement in the product purchase.
4. There is reasonably high brand loyalty.
5. Consumers make brand choice decision before they go to the store.

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Managing the Promotion Mix

Setting the Promotion Budget

There are three methods that are being followed by companies for deciding on
their promotional budget. These methods are as follows:
Affordable method: A promotion mix budgeting strategy in which firms set their
promotion budget based on what they believe they can afford.
Percentage of sales method: A promotion mix budgeting
strategy in which firms allocate a specific percentage of a
certain period’s total sales to the promotional budget for
next period.
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Managing the Promotion Mix

Setting the Promotion Budget

Objective and task method: A promotion mix budgeting strategy in which a firm
defines:
• Specific objectives
• Determines the tasks that must be performed to achieve these objectives.
• Estimates the costs of performing these tasks
The sum of these costs is the proposed promotion budget.

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AIDA Model

• AIDA Model: A combination of steps in various forms of

promotion consisting of attracting attention, holding interest,
arousing desire and generating buyer's action.
Four elements of AIDA are elaborated here:
Awareness/attention: A good marketing effort may fail if it
doesn't manage to grab attention of target market. For example,
Nestle launched a teaser campaign that was a letter to 'Pyaray
Pakistan'.
Airlift is creating desire by
Desire: In this stage purpose is to make consumers from 'I like it' touching patriotism, 'Pakistan ka
to 'I want it'. Airlift is creating desire by touching patriotism, Airlift' (Airlift of Pakistan).
'Pakistan ka Airlift' (Airlift of Pakistan). 33
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AIDA Model
Interest: A customer's awareness of a product alone is not
sufficient to make them buy it.
Telling the consumers about benefits of product and its position
compared to alternate products is what is done in this stage.
Action: Companies try to pick up a certain number of customers
to be purchasing the product such as 30% of the potential target
market to actually buy the product and to encourage them to keep
purchasing.

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Celebrities
• Celebrities may also be opted but can also be
risky as in case of any controversial action by
them, it can hurt the brand repute as well.
• Some athlete brands use sports celebrities, the
idea behind it is that if you want to be like them
then use our brand.
• Sometimes even cartoon characters are used as Celebrities are often utilized
by brands in their promotion campaigns.
celebrity, e.g. Fido Dido character utilized by 7up Famous football
especially in its 1990s campaigns. star Cristiano Ronaldo may be found on
many advertisements of Nike, KFC and
Clear etc.
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Celebrities
• A female lead character Lightning from
Final Fantasy-13 by Square Enix has
become first computer generated
supermodel promoting brands like Louis
Vuitton.

Fictional characters such as Hulk are

also used in various ads.

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Other Considerations Regarding Promotion

• A company must collect feedback about ads so they get an

idea that which ads were liked by target market and why?
• A study found that 90% customers trust “recommendations
from customers” while trust in ads is 10-40%, therefore
brands must be careful and be concerned about WOM.
• A promotional message may have rational appeal (relates to
audience’s self-interest), or emotional appeal (can be funny or
sad) or moral appeal (ethical standards).

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 ‫ُك‬
‫َج َز ا ُم‬
‫ُهللا‬
THANK YOU!

©2022 | Basic Marketing

by Salman Zaheer
Digital version of the book is available for FREE: https://archive.org/details/basic-marketing-2020
Printed copy can be obtained from: https://www.readings.com.pk/pages/BookDetails.aspx?BookID=1370613