Page 188 - DMGT507_SALES AND PROMOTIONS MANAGEMENT

Sales and Promotions Management

Notes a short-term affair, and not always under the company's control because it is not paid for by the
company and hence may not be favourable. Publicity of both types, favourable or unfavourable,
often comes from outside sources, other than the company.
Publicity, as everyone believes, originates from independent sources that do not have any stake
in the company and is considered highly credible. Consumers consider information through
publicity as more objective. All other promotional elements are company controlled and viewed
as less reliable. Publicity is a very powerful weapon and can make or break a product or even
company. After news reports of harmful levels of pesticides in Coke and Pepsi, there was a
substantial drop in the sales. Very large segments of consumers across all ages were highly
concerned and upset. TV news channels invited audiences from various sections of society,
particularly younger groups and parents, and arranged discussions and this negative publicity
was not under the control of these soft drink producers.
Consumers perceive the medium in which publicity appears, endorses the information.

Example: Often we read news articles in auto magazines that a certain car has won the
award of "Car of the Year" and readers believe, it reflects the perceptions of the quality of the
selected car by that magazine.
Publicity can work for business organisations. A high level of favourable publicity has made
iPod from Apple Computers a top seller. Marketers like to have as much control as they can over
publicity time, place, and content. Some companies do this through video news release. This is
a publicity story produced by publicity consultants so that news channels can air it as a news
item.
Advantages of publicity include high credibility, news value, significant word-of-mouth messages
from interpersonal sources, and perception of having media endorsement of media.
Disadvantages include lack of control by the concerned company most of the time, the timing of
news release is almost entirely up to media, not always reported the way provider wants it, and
there might be errors due to omissions, and inaccuracy.

Caselet Empee Distilleries: Banking on Publicity

E entertainment industry by sponsoring movie publicity.
MPEE Distilleries Ltd hopes to showcase its Old Secret brand through the

Empee Distilleries, which has launched rum and cola under the Old Secret brand, has
budgeted over 5 crore to promote the brand in Tamil Nadu and Karnataka. With increased
market acceptance it will widen its area of promotion to the North and the North-East.
For now, according to Empee’s Vice-President and Company Secretary, Mr P.K. Das, the
company will handle the publicity for Karkaa Kasadara, a Tamil feature film directed by
R.V. Uthaya Kumar, scheduled to be released on Valentine’s Day.
Empee Distilleries will pay the publicity bills for Karkaa Kasadara, including the cost of
banners, hoardings and wall posters. Tied in with these will be publicity for the Old Secret
brand. This could mean expenditure of about 50 - 60 lakh initially, and depending on the
movie’s run in the cinemas the expenditure on advertisements would be stepped up, he
said.

Contd...

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