IMC internal notes 2020

Definition of IMC

As defined by the American Association of Advertising Agencies, integrated marketing

communications " ... recognizes the value of a comprehensive plan that evaluates the strategic
roles of a variety of communication disciplines advertising, public relations, personal
selling, and sales promotion and combines them to provide clarity, consistency, and
maximum communication impact.
Before the emergence of IMC…

Prior to the emergence of integrated marketing communications during the 1990s, mass
communications—the practice of relaying information to large segments of the population
through television, radio, and other media—dominated marketing.

Marketing was a one-way feed.

Advertisers broadcasted their offerings and value propositions with little regard for the
diverse needs, tastes, and values of consumers.

Often, this "one size fits all" approach was costly and uninformative due to the lack of tools for
measuring results in terms of sales.

But as methods for collecting and analyzing consumer data through single-source technology
such as store scanners improved, marketers were increasingly able to correlate
promotional activities with consumer purchasing patterns.

Companies also began to downsize their operations and expand marketing tasks within their
organizations.

Advertising agencies were also expected to understand and provide all marketing functions,
not just advertising, for their clients.

Today, corporate marketing budgets are allocated toward trade promotions, consumer
promotions, branding, public relations, and advertising.

The allocation of communication budgets away from mass media and traditional advertising
has raised the importance of IMC importance for effective marketing

Now, marketing is viewed more as a two-way conversation between marketers and

consumers.

Tools of IMC
The following are the IMC tools :

)Advertising

Any paid form of non-personal communication through mass media about a service or product
or an idea by a sponsor is called advertising.

Print and Broadcast advertisements, advertisements in Television, Radio, Billboard, Broachers

and Catalogues, Direct mails, In-store display, motion pictures, emails, banner ads, web pages,
posters are some of the examples of advertising.

Paid promotion and presentation of goods, services, ideas by a sponsor comes under the
advertisement.

b) Personal Selling
Personal selling is a person to person process by which the seller learns about the
prospective buyer's wants and seeks to satisfy them by making a sale
It is an act of helping and persuading through the use of oral presentation of products or
services.

Target audience may vary from product to product and situation to situation. In other words
personal selling is a person to person process by which the seller learns about the prospective
buyer's wants and seeks to satisfy them by making a sale.

Examples: Sales Meetings, sales presentations, sales training and incentive programs for
intermediary sales people, samples and telemarketing etc. It can be of face- to-face or through
telephone contact.

C) Direct Marketing

Direct marketing enables organizations to communicate directly with the end-users. Various
tools for direct marketing are emails, text messages, catalogues, brochures, promotional
letters and so on. Through direct marketing, messages reach end-users directly. Is reaching
the customer without using the traditional channels of advertising such as radio, newspaper,
television etc.

Direct marketing reaches the targeted consumers with techniques such as Catalogues,
Mailings, Telemarketing, Electronic shopping, TV Shopping, promotional, fliers etc

D) Public Relations
 Unlike advertising, this form of promotion is not paid for by the sponsor.

Thus, publicity is news carried in the mass media about an organization, its products,
policies, actions, personnel etc.

Publicity can be favourable (positive) or unfavourable (Negative). The message is in the

hands of media and not controlled by the organization/firm.

Examples: Magazine and Newspaper articles/reports, radio and television presentations,

charitable contributions, speeches, issue advertising, and seminars. Publicity can be favourable
(positive) or unfavourable (Negative). The message is in the hands of media and not controlled
by the organization/firm.

E )Sales promotion

Is any activity that offers an incentive for a limited period to obtain a desired response from the
target audience or intermediaries which includes wholesalers and retailers. It stimulate consumer
demand, market demand and improve product availability. Examples: Contests, product samples,
Coupons, sweepstakes, rebates, tie-ins, self-liquidating premiums, trade shows, trade-ins, and
exhibitions.

the Importance of IMC

The growing importance of the IMC approach is the ongoing revolution that is changing the
rules of marketing and the role of the traditional advertising agency

Major characteristics of this marketing revolution include:

1 )A shifting of marketing spends

A shifting of marketing spends from media advertising to other forms of promotion particularly
consumer and trade-oriented sales promotions Many marketers feel that traditional media
advertising has become too expensive and is not cost-effective.

Also, escalating price competition in many markets has resulted in marketers pouring more of
their promotional budgets into price promotions rather than media advertising

2) A movement away
A movement away from relying on advertising-focused approaches, which emphasize mass
media such as network television and national magazines, to solve communication problems

.Many companies are turning to lower-cost, more targeted communication tools such as event
marketing and sponsorships direct mail, sales promotion, and the Internet as they develop their
marketing communication strategies

3) A shift in marketplace
A shift in marketplace power from manufacturers to retailers

Due to consolidation in the retail industry, small local retailers are being replaced by regional,
national and international chains

These large retailers are using their clout to demand larger promotional fees and allowances
from manufacturers, a practice that often siphons money away from advertising.

Moreover new technologies such as checkout scanners give retailers information on the
effectiveness of manufacturers' promotional programs. This is leading many marketers to shift
their focus to promotional tools that can produce short-term results, such as sale promotion.

4) The rapid growth

The rapid growth and development of database marketing. Many companies are building
databases containing customer names; geographic, demographic and psychographic profiles;
purchase patterns; media preferences: credit ratings; and other characteristics.

Marketers are using this information to target consumers through a variety of direct-marketing
methods such as telemarketing, direct mail, and direct-response advertising, rather than
relying on mass media.

Advocates of the approach argue that database marketing is critical to the development and
practice of effective IMC

5) Greater accountability

Demands for greater accountability from advertising agencies and changes in the way agencies
are compensated.

Many companies are moving toward incentive-based systems whereby compensation of their
ad agencies is based, at least in part, on objective measures such as sales, market share, and
profitability.

Demands for accountability are motivating many agencies to consider a variety of

communication tools and less expensive alternatives to mass-media advertising.

6 )Growth of Internet

The rapid growth of the Internet, which is changing the very nature of how companies do
business and the ways they communicate and interact with consumers.

The Internet revolution is well under way, and the Internet audience is growing rapidly. The
Internet is an interactive medium that is becoming an integral part of communications strategy,
and even business strategy, for many companies

Process of communication.
The marketing communication process is complex and based on the universal model of
communication which includes a sender, the message, receivers, a medium and, in the case of
two-way communication

The purpose of a marketing communication campaign is to convey a message to the consumers

and requires six elements: a source, a message, a channel of communication, a receiver, and
the processes of encoding and decoding.

Noise

Encoding Message Decoding

Sender Message Message Receiver
Channel

Message
Channel

Encoding and Decoding:

Encoding is the process of having the sender transform an idea into a set of symbols.

Decoding is the reverse, or the process of having the receiver take a set or symbols, the
message, and transform them back to an idea. Errors in communication happen all the time.

The source may not adequately transform the abstract idea into an effective set of symbol, a
properly encoded message may be sent through the wrong channel and never make it to the
receiver, the receiver may not properly transform the set of symbols into the correct abstract
idea, or finally, feedback may be so delayed or distorted that it is of no use to the sender.

For the message to be communicated effectively, the sender and receiver must have a
mutually shared field of experience a similar understanding and knowledge they apply to the
message.

Channel:

The channel is the way in which a message or messages travel between source and
receiver.

When you speak or write, you are using a channel to convey your message. Spoken channels
include face-to-face conversations, speeches, telephone conversations and voice mail
messages, radio, public address systems, and voice over internet protocol (VoIP). Written
channels include letters, memorandums, purchase orders, invoices, newspaper and magazine
articles, blogs, e-mail, text messages, tweets, and so forth.

Feedback:
Feedback loop, which consists of a response and feedback. A response is the impact the
message had on the receivers knowledge, attitudes, or behaviors. Feedback is the senders
interpretation of the response and indicates whether the message was decoded and understood
as intended.

Noise:

Noise includes extraneous factors that can work against effective communication by distorting a
message or the feedback received. Noise can be a simple error, such as a printing mistake that
affects the meaning of a newspaper advertisement or using words or pictures that fail to
communicate the message clearly.

Environment:

Environment involves the physical and psychological aspects of the communication context, the
atmosphere, physical and psychological, where you send and receive messages. It can be the
tables, chairs, lighting, and sound equipment that are in the room. The environment can also
include factors like formal dress, that may indicate whether a discussion is open and caring or
more professional and formal. People are more likely to have an intimate conversation when
they are physically close to each other, and less likely when they can only see each other from
across the room. In that case, they may text each other, itself an intimate form of
communication. The choice to text is influenced by the environment.

Context: Context is the expectation of people from each other. Traditional gatherings like
weddings are often formal events. The context or situation is a set of rules which govern the
origin, flow and effect of messages.

IMC communication plan

Integrated marketing is based on a master marketing plan. This plan should coordinate efforts in
all components of the marketing mix. The purpose of the marketing plan is to achieve harmony in
relaying messages to customers and other publics. The same plan integrates all promotional
efforts. The idea is to keep the company’s total communication program in synch.

The steps required to complete a marketing plan.

1. Situational analysis: The first step is a situational analysis, which is the process of
examining factors from the organization’s internal and external environments. The
analysis identifies marketing problems and opportunities present in the external
environment as well as internal company strengths and weaknesses.
2. Marketing Objectives: When the situation is fully understood, the second step is to define
primary marketing objectives. These objectives normally include targets such as higher
sales, an increase in market share, a new competitive position, or desired customer
actions, such as visiting the store and making a purchase.
3. Marketing Budget: Based on the marketing objectives, a marketing budget is prepared
and marketing strategies are finalized.
4. Marketing strategies Marketing strategies apply to all the ingredients of the marketing
mix plus any positioning, differentiation, or branding strategies the marketing team wishes
to add.
5. Marketing Tactics : From these strategies, marketing tactics guide the day-by-day
activities necessary to support marketing strategies.
 6. Evaluate performance: The final step in the marketing plan is stating how to evaluate
performance.

AIDAmodel

E.K. Strong’ suggested the AIDA model in his book “The Psychology of Selling”

The term AIDA stands for Attention, Interest, Desire and Action. This model guides the
copywriters in writing persuasive ad copy and writing persuasive advertising theme.

AIDA process is shown in a diagram given below:

ATTENTION

INTEREST

DESIRE

ACTION

Attention

The first step in making the audience buy the product is to get his or her attention. An
advertising is a selling message and in order to attract the attention of the reader or audience, it
is necessary to provide relevant information i.e. a person is likely to get attracted to information
that concerns his or her motive. Thus the best way of attracting attention is to provide
information that is relevant to the prospect (possible buyer) and appeals to his or her self-
interest

Interest: - Arousing interest is termed in advertising language as ‘From Eye to Mind’. Once the
buyer’s attention is attracted, his interest must be maintained. All good advertisements start with
a point of interest. For arousing interest the advertiser makes use of several psychological
appeals such as appeal to his wants, appeal to his sense of comfort etc. Therefore every
advertiser must have basic knowledge of human psychology, mental traits and buying motives
of prospects.

- The main task of advertising is the transformation of an interest in to creating a desire in the
consumers mind. Creating desire means convincing consumers to make a possible purchase.
The customer must gain some benefits by the claims made by the advertiser. Some of the
methods of creating desire are mentioned below:
• Start with the truth.
• Appeal to consumers buying motives.
• Use of Guarantee and warrantees.
• Scientific proof.
• Comparative performance.
• Reputation of the firm’s name.
• Successful performance.
• Demonstrations.
 • Medal and Awards received.
4] Action: - The ultimate objective of any advertisement is to secure action. This is the last and
the most important step to prompt action and turn the prospects into buyers. In order to stimulate
action the advertisement must:
• Help prospects remember the brand name and the company name through repetitive
advertisements. Too often prospects remember the advertisement but forget the brand
name.
• Inform about retail outlets, and their addresses from where the advertised product will be
available.
• Provide detail information including the price of the product to help the prospects make a
purchase decision.
• Make use of phrases like “Don’t Delay”, “Buy Now”, “Bargain Offer”, “Sale”, “Limited
Stock” and so on.
• Key the advertisements by “Coupon” or “Contest” that will prompt a quick response to
avail the benefit of a free gift.
Thus the above aspects reveal the amount of foresight required to make advertisement. A
comparative study of all these factors and a clear vision will lead to prompt action.

DAGMAR

In a study called “Defining Advertising Goals For Measured Advertising Results” prepared
for the ‘Association of National Advertisers’, ‘Russel H. Colley’ in 1961 developed the
DAGMAR model. The name is derived from the study title. The model describes the purchase
process as under:

Non Awareness

Awareness

Comprehension

Conviction
 Action

In a DAGMAR approach, the communication task is based on a specific model of communication

process, which suggest that there is a series of mental steps through which a brand must climb
to gain acceptance.

• Non-Awareness: - An individual starts at a point where he or she is unaware about the

presence of the brand in the market.
• Awareness: - Advertising informs the consumers about the availability of the brand. Only
when the consumers are made aware of the brand and the company they can demand
the name of a particular brand when asked to list the brands of the relevant category.
• Comprehension: - Comprehension means understanding about the brand image. The
sales theme of a product or services makes the consumers identify and understand what
the product is and what it can do for them. Comprehension makes the consumers learn
something about the brand like what are its specific features and appeals, in what way it
differs from its competitors, whom it is supposed to benefit and so on.
• Conviction: - Conviction means attitude. The communication process should be able to
change the attitudes or habits of prospective buyers. Here the customer moves one step
ahead to change his or her old habits with new i.e. change in brand utilization.
• Action: - Action involves motivating the customers to buy the product advertised. The
Action phase involves some move on the part of the buyer, such as trying the brand for
the first time, visiting the nearest showroom, requesting for more information and so on.

the three stages of buyer behavior

• Cognitive Stage
• The cognitive component deals with cognition, or knowledge; it is the power of knowing,
perceiving or conceiving ideas about the product. It is dealing with the basic information
that a consumer needs to know. A customer needs to be exposed to the product and
understand its usage before he actually purchases it.

• Affective Stage
• The effective component deals with the affections/emotions. For example, feelings of likes
or dislike towards objects are dealt on the effective plane. It is at this stage that the
consumer will either have preference or liking towards the product or he will develop a
dislike. This stage shows his attitude towards the product, whether he is for or against the
product.

• Behaviour Stage
This is the stage when the consumer, after having the knowledge and developing the liking or
disliking towards the product, will ultimately lead into a purchase of the product or rejection of
the product. He would first try the product and develop loyalty towards it or he is completely
convinced that the product is good and would purchase the product

The difference between advertising and Publicity

ADVERTISING PUBLICITY

1) Advertising is a type of Publicity is not necessarily a

commercial communication commercial communication

2) It is a paid communication It is not a paid communication

3) The purpose of advertising is to The Purpose is only to give information

give information about product about specific product or event or
and encourage customers to development
purchase them.

4) All advertising is publicity All publicity is not advertising

5) An advertiser has control over Publicity is controlled by the medium

the words, location, timing, as regards words, location, timing etc.
colour, combination, space etc. It is forms a part of editorial content
In the case of advertisement as and controlled by the publisher
he pays for the same.

6) Advertising has ample scope for Publicity doesn’t have scope for
creativity creativity

7) Advertising may not be accepted Publicity is normally accepted as

as reliable and genuine reliable and genuine

8) It is generally created for a Publicity is normally meant for general

specific audience or for a public and not for specific audience or
specific market segment market segment
Distinguish between Personal selling and Advertising.

Sr No Personal Selling Advertising

1 It is the method of personal It is the method of mass communication. It is
communication. It is the way of the way of indirect communication.
face- to-face communication.

2 Two-way, from seller to buyer One-way, from seller to buyer, communication.

and buyer to seller,
communication
3 It is more flexible. It is less flexible
4 Per contact cost is considerably Per contact cost is extremely low.
high.

5 It is a slow process. At a time, It is a fast method. Millions of people can be

one salesman can talk to one or conveyed the advertising message by using
limited people. mass media.

6 Comparatively more information Limited information can be communicated

can be communicated
7 Maximum. Clarification is Minimum. Clarification is not possible. It is less
possible. On the spot, matter is effective
clarified. It is more effective.

8 It is suitable for almost all the Mostly, it is suitable for non-technical products
consumer products.

9 It is both promotional and . It is a promotional device.

distribution device.

10 . Immediate and direct feedback Immediate feedback cannot be measured.

can be measured. Salesman Even, net impact cannot be known.
can know the buying intention of
buyers
11 It is not controllable. Salesman Company has complete control over it.
can present his talk and product Advertisement takes place as per company’s
plan
 as per his skills, knowledge and
experience
12 Creativity depends on ability of It permits maximum creativity in preparing
individual salesman. theme, message and spots. It is comparatively
Comparatively, it more less influential
influential.

Functions of Advertising

1Increasing Sales: - Advertising increases the sales of the product. Advertising creates and
stimulates demand, opens and expands the markets. It creates goodwill, which leads to an
increase in sales volume.
2] Relating New Products to existing ones: - Advertising relates a new product, or a new model
of familiar product, to a name for which prestige has been firmly established. Thus, a company
that manufactures a line product can secure quick acceptance of a new item by advertising it as
a group of products whose quality is well known.
3] Persuading Dealers: - Advertising helps to persuade dealers to maintain more and more stock
of goods advertised. Handling advertised goods becomes a matter of prestige. Thus, the dealers
can sell the goods quickly and can get more profits.
4] Dissemination of information: - Advertising provides all the facts needed to make an
intelligent choice. It informs about the availability of various brands that helps in making
appropriate choice. Advertising informs the customers as to when and where the products will be
available and at what price that saves much of the customers’ time.
5] Exchange Offers: - Advertising reminds the consumers to replace their existing products. A
customer may not replace an old used product so long as it is useful, but if advertising informs
that a new and more sophisticated product is available in the market, as an exchange offer against
the old product then the customer will immediately grab that opportunity.
6] Encourages Competition: - Advertising encourages competition, which is very essential to
restrict monopoly in the market. Large and even small organizations undertake advertising activity
and make their best efforts to promote effective advertising campaign to affect more sales and
compete successfully with the competitors.
7] Brand Image: - Advertising helps to create brand image and loyalty. If advertising is carried
out honestly it certainly establishes company’s goodwill and an image is created in the minds of
customers that last for longer period of time.
8] Employment Opportunities: - Advertising generates employment opportunities. It offers
opportunities to the right type of people who possess necessary skills as an artist, editor, reporter,
newsreader, copywriter, ad designer, photographer, cameraman, media planner and much more.
Increased employment results in increased income level that results an increase in purchasing
power that further raises standard of living.
The different types of advertising

1] Consumer Advertising: - Most of the consumer goods manufacturing companies are in a

highly competitive field, and engage in advertising. The customers buy FMCG (Fast Moving
Consumer Goods), Luxurious products and even avail services like bank deposit schemes,
insurance policy, invest in shares, mutual funds and so on. Consumer advertising can be done
through print, broadcasting, outdoor media.
2] Industrial Advertising: - Industrial advertising is done by manufacturers or distributors of
industrial products like raw materials, machinery, machinery parts, office equipments etc..
Industrial advertising can appear in newspapers, business magazines, billboards, and even
manufacturers develop websites to present their products.
3] Business-to-Business Advertising: - The purpose of business to business advertising is to
promote non-consumer products like tools, accessories, technical component etc utilized in the
production of final product. For example in construction work cement, bricks, steel, glass, timber
etc are required now such materials are available from various suppliers. Business to business
advertising can be done in magazines, newspapers, trade shows etc.
4] Retail Advertising: - Retailers through counter and window displays attract the attention of
passer buyers. Nowadays-departmental stores, supermarkets like shopping malls opened at
regional and national locations are making intense use of counter displays. They sell almost all
kinds of consumer goods.
5] Life Style Advertising: - Life Style advertising emphasis on uplifting the standard of living by
the making the general public aware of latest trends in Garments, Automobiles, cell phones,
jewelry, diamonds etc.
6] Classified Advertising: - Classified advertising is also known as recruitment advertising
whereby organizations get the right personals or jobseekers get the right jobs Nowadays
jobseeker can surf on websites like naukari.com, jobsahead.com, monster.com etc to get
placements that suits their academic profile. Classified advertisement also provides information
about accommodations, matrimonial, professional training and coaching classes, tours and travel,
hotels and others.
7] Financial Advertising: - Financial advertising is directed towards raising funds and utilizing
the same for satisfactory purpose i.e. borrows money from savers and lend to the seekers. Public
limited companies invite the general public to subscribe to the share capital of the company such
advertisement has to be informative and must strictly adhere to ethical code laid down by SEBI.
Similarly banks advertisers about latest deposits schemes, housing loans at low interest rates,
debit card, insurance companies advertises new insurance policies like money back, bima kiran,
endowment policies, postal authorities advertisers advertises schemes like National Saving
Certificates, Indira Vikas Patra and so on. Companies disclosing their financial results are also a
part of financial advertising.
8] Image Advertising: - Image advertising is also known by the name institutional or corporate
advertising. The aim here is at building up a good public image for a company that focus on
activities like research and development, quality control, sponsorship of educational, cultural and
sports program, and social events as supporting charities.
9] P.R. Advertising: - P.R advertising means the advertisements given by P.R. department in
the selective media on behalf of the company about latest development, arranging a press
conference to issue press releases regarding appointment of new managing director or C.E.O or
C.O.O, regarding trade shows or special events
10] Public Service Advertising: - Public service advertising is also known by other names like
Public awareness advertising, social service advertising and social awareness advertising. PSA
is done as a part of social responsibility by the advertising agencies or business organization or
government departments or social service organizations (NGO – Non government organization).
PSA may include Family Planning measures, Literacy programs, rehabilitation of handicapped,
harmful effects of drug addictions, child marriages, dowry system, HIV AIDS, blood and Eye
donation and many more. E.g Vidya balan shocha lay
11] Political Advertising: - Political Advertising applies to election campaigning in the form more
and more appearance on radio and television, issuing pamphlets for addressing a public meeting
or development plans to be undertaken after winning an election painting poster and hanging
banners during election e.g Ab ki bar modi sarkar .

Coupons

Coupons are the oldest and most widely used sales promotion technique.

A coupon reduces the retail price of a particular product by a stated amount at the time of
purchase. These coupons may be worth anywhere from a few paisa to a few rupees. –

They are made available to customers through newspapers, magazines, direct mail, online,
and in shelf dispensers in the store Coupons may also offer free merchandise, either with or
without an additional purchase of the product..

Coupons generates trial of a new brand. it Encourages non-users to try an established

brand or users to repeat use

2) Sampling : A sample is a free product given to customers to encourage trial. Samples

may be offered via online coupons, direct mail, or in stores. Samples are the most expensive
sales promotion technique. It helps the marketer to know consumer’s reaction.

There are several types of sampling such as :

1) In store sampling
2) Newspaper Sampling
3) Door to Door sampling
4) Trail offer
5) Direct mail
6) Cross product sampling
7) Event sampling
8) Internet sampling etc.
This technique is more beneficial in case of products with skimming pricing strategy(
launching product with high price). It may allow the price sensitive consumers to try out sample
product .
 3)Premiums

A premium is a gift that a producer offers the customer in return for using its product.

Premiums differ from samples and free product in that these often do not consist of the
actual product, though there is often some connection.

For example, a Glass bowl with TATA tea .

Other types of premiums are include traffic builders , door openers and referral premiums .
The garden tool is an example of a traffic builder premium incentive to lure customers at
home or to business people in their offices .For e.g a home owner may receive a wall clock
or a pen set for allowing the sales person to enter their home and listening to the sales pitch.
The final category of premiums is referral premiums that rewards the purchaser for referring
the seller to other possible customers.

4) Refunds & Rebates

Rebate is an amount paid by way of reduction, return, or refund on what has already been
paid or contributed. It is a type of sales promotion marketers use primarily as incentives or
supplements to product sales.

The mail-in rebate (MIR) is the most common.

A MIR entitles the buyer to mail in a coupon, a receipt and barcode in order to receive a
cheque for a particular amount, depending on the particular product, time, and often place of
purchase

5) Contests and Sweepstakes

Contest – a promotion where consumers compete for prizes or money on the basis of skills or
ability. Winners are determined by judging entries or ascertaining which entry comes closes to
some predetermined criteria
For e.g To encourage the consumers to complete the sentence with the product or write a
slogan or jingle for it. Taj Majal Tea had used this technique to evolve consumers’ interest

Sweepstakes/games – a promotion where winners are determined purely by chance and

cannot require a proof of purchase as a condition for entry

Winners are determined by random selection from the pool of entries or generation of a number
to match those held by game entrants. Prizes can vary in value and can be in the form of cash,
cars, holidays, electronics, etc. Whether it’s for manufacturers, retailers, the trade or consumers,
nothing generates excitement like Sweepstakes, Quizzes and Online Games.

6) Bonus packs

Bonus packs offer the consumer an extra amount of a product at the regular price by providing
larger containers or extra units. Bonus packs result in a lower cost per unit for the consumer and
provide extra values as well as more product for the money. It can also be defensive maneuver
against a competitor’s promotion or introduction of new brand.

e.g 20% more on Lays pack size .

7. Price-off

Price-off deals are offered right on the packaged through specially marked price packs.
Typically price-offs range from 10 to 25 percent off the regular price with the reduction coming
from manufacturer margin not retailers. It ensure that discount reaches consumers.

e.g. Rs 19/- off on Dove Soap 50 gms pakc of 4

8. Frequency Programs

Companies introduced continuity programs that offer consumers, the opportunity to accumulate
points for continuing to purchase their brands or service; the points can be redeemed for gifts
and prizes. The main objective is such programmes is to encourage repeat purchase or repeat
visits to a particular retail shops .

9. Event marketing

Event marketing is a type of promotion where a company or brand is linked to an event or where
a themed activity is developed for the purpose of creating experiences for consumers and
promoting a product or service. Marketers often do event marketing by associating their product
with some popular activity such as a sporting event, concert, fair, or festivals. However
marketers create their own event, to use for promotional purposes.
10. Point-of-Purchase

Manufactures or advertisers provides free point of purchase displays to the retailers & dealers .
A variety of P-O-P materials -- signs, displays, and various in-store media -- are used to attract
consumers' attention to particular products and brands, provide information, affect perceptions,
and ultimately influence shopping behavior.

11) Trade Allowances:

Used by manufacturers to reward wholesalers and retailers for performing activities in support of
the manufacturer’s brand. These temporary price reductions are intended to be passed on, in
whole or in part, to the end customer. Thus, intermediaries can elect to have a higher margin
per unit or higher volume sales.

Major Forms of Trade Allowances

a. Buying Allowances: Typically when a manufacturer to get its new brand accepted by
retailers. Deals offered periodically to trade that permit wholesalers and retailers to deduct a
fixed amount from the invoice

b. Promotional Allowances: Retailers receive slotting allowances for featuring the

manufacturer’s brand in advertisements or for providing special displays.

c. Slotting Allowances: The fees manufacturers pay retailers for access to the slot, or location.
Its is the practice of manufacturers paying retailers for shelf space.