Page 241 - DMGT408DMGT203_Marketing Management

Marketing Management/Essentials of Marketing

Notes resellers to stock the product and sell the product to consumers. In certain cases, retailers pass on
part of the benefit to consumers to clear the stocks early. Push strategy is suitable when the
brand loyalty is low, consumers are aware of brand benefits, and purchase decisions are made in
the store.

Task Consider any two Indian banking companies and compare the promotional
methods used by them. Also comment on the effectiveness of their
promotional campaigns.

10.2.3 Promotion is an Act of Communication

1. The word “communication” is based on the Latin word meaning “COMMON”. Thus the
term communication has come to mean sharing something of common use.

2. Since marketing communications aim at influencing consumer behaviour in favour of the
firm’s offerings, these are persuasive in nature. These persuasive communications are more
commonly called “PROMOTION” and constitute one of the 4 Ps of the marketing mix.

3. Modern marketing calls for more than developing a good product, pricing it correctly and
making it easily available to the customer. The company that wants more than ‘walk-in’
sales must develop an effective program of communication and promotion.
4. Persuasive communication is said to take place when a communicator very consciously
develops his messages to have a calculated impact on the attitude and/or behaviour of a
target audience.
A study of ‘Marketing Communication’ is a study of the promotion function of marketing.

10.2.4 Objectives of Promotion

1. To increase sales
2. To increase market share
3. To build brand loyalty
4. To build product differentiation in customers’ mind

Self Assessment

Multiple Choice Questions:
4. Which of these tools can provide the fastest feedback?

(a) Advertising (b) Sales promotion
(c) Personal selling (d) Public relations
5. Which of these is not a paid form of communication?
(a) Advertising (b) Sales promotion
(c) Direct marketing (d) Publicity
6. ……………… is most effective but also more expensive than other promotion mix elements.
(a) Advertising (b) Direct marketing
(c) Personal selling (d) Publicity

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