UNIT 9: Implementation of Marketing Program: Promotion

Promotion

1. Concept of Promotion: Promotion means communicating all necessary information to target

customers through promotional tools to persuade them to buy the product or service. Promotional is
important for demand creation. It is components of marketing mix. Promotion need budget. Promotion
influences demand of the product and promotion expenses affect price of product. So, it should be
design considering various factors such as promotion objective, promotion budget, cost of medias,
effectiveness of media, size of market, nature of product, types of target customers, government policy,
competitors strategy, stages of product life cycle etc.

2. Objectives of Promotion

1. Information: Advertising informs about all information of products. Brand of product, price of
product, using method, advantages, warning, date of manufacture, date of expiry, warning,
ingredients, name and address of manufacturers etc. are provided by the various promotional
tools such as advertising, publicity, personal selling etc.
2. Reminding: Generally, customers have various options of products and they may have short-
lived memory, so promotional activities help to remind about the product. Reminding support
them to place the order of the product.
3. Persuading: Persuading helps customers to choose the product from alternatives. Various
products are available in the market due to very high market competition, so promotional
activities persuade them to buy the product.
4. Reassuring: Promotional activities support to reassure about the quality of the product. Some
time customers may confuse about various products of market, which look very similar in
nature. Likewise, sometime customers may have cognitive dissonance about the product. In
these situations, promotional activities reassure about the product quality.
5. Image Building: Promotional activities help to build the image of the product in the market. It
communicates about the product quality and benefits to target market through different types
of promotional tools that helps to build the image of an organization in the market.
3. Components/ Methods/ Tools of Promotion: Components of promotion are major five types:

Table 8-1

Components/Methods/Tools of Promotion

S.N Components/ Methods/Tools of Promotion

1 Advertising
2 Publicity
3 Public Relation
4 Personal Selling
5 Sales Promotion

Advertising

1. Meaning of Advertising: If any information are communicated to target customer through paid
communication media by an identified sponsor that is called advertising. It is very powerful method of
promotion. It has various objectives such as: informing, persuading, reminding, reassuring, image
building, demand creation etc. It has various media such as: radio, television, film, internet, newspapers,
magazine, hoarding board, sign board etc.

2. Objectives of Advertising

a. Informing: Advertising is the very powerful method of promotion. It informs about product and
organization information to their target market that helps to motivate customers to buy the
products. Product brand, product quality, using method, advantages, name and address of
manufacturers etc. are communicate to target market.
b. Reminding: Generally, customers have various options of products and they may have short-
lived memory, so advertising helps to remind about the product. Reminding support them to
place the order of the product.
c. Persuading: Persuading helps customers to choose the product from alternatives. Various
products are available in the market due to very high market competition, so advertising
persuades them to buy the product.
d. Reassuring: Advertising activities support to reassure about the quality of the product. Some
time customers may confuse about various products available at the market, which look very
similar in nature. Likewise, customers may have cognitive dissonance about the product. In
these situations, advertising activities reassure about the product quality.
e. Image Building: Advertising activities help to build the image of the product and organization in
the market. It communicates about the product quality and benefits to target market through
advertising activities that helps to build the image of both product and organization in the
market.
 f. Product Positioning: Product positioning is very necessary to create positive image of the
product in the mind of target customers that is done through advertising. Advertising focuses on
unique quality and features of product by which positioning can be done. Positioning support
customers to buy the product.
g. Demand Creation: There are no sales of products without demand creation. Advertising creates
the demand of the product. Advertising communicates all necessary information about the
product to the target customers by they place the order of product.
h. Capture the Wider Market: This is the age of globalization. Organizations have opportunities of
global market. So they target to enter into wider market. Advertising helps to enter into new
market segment through informing of product.

3. Features of Advertising

a. It is paid communication Media

b. It is done by an identified sponsor
c. It has certain objectives: Informing, reminding, persuading, reassuring, image building,
capture the wider market and demand creation
d. It uses various Medias: Print media, visual media, audio media, audio-visual media and
internet media.
e. It is effective method of promotion
f. It is mass communication method of promotion
g. It is non personal method of promotion
h. It can be various types: Consumer and trade advertising, product and institutional
advertising, primary demand and selective demand advertising, local, national and
international advertising.

4. Types of Advertising: Types of advertising are given below:

a. Consumer and Trade Advertising: If advertising is focused for target consumers in order
to motivate them to buy the product that is called consumer advertising and the
advertising that is focused for middleman or traders or business organization in order to
motivate them to place the order that is called trade advertising.
b. Product and Institutional Advertising: Product advertising focuses on product
information such as product brand, product price, product quality, ingredients of
product etc. where as institutional advertising focuses on organizational policies,
organizational programs and plan by which image of an organization can be established
in the market.
c. Primary Demand and Selective Demand Advertising: Primary demand advertising
focuses on the promotion of a generic product, for example advertising of Tea. Selective
demand advertising focuses on the promotion of the specific brand, for example,
advertising of “Muna Tea” or Red Label Tea”.
d. Local, National and International Advertising: Local advertising is done within the
boundary of local market through local media, national advertising is done within the
 boundary of national market through national media and international advertising is
done in international market through international media.

5. Types of Advertising Media: They can be:

Table 8-2

Types of Advertising Medias

Advertising Medias
S.N. Medias
1 Print/Press Media
2 Visual Media
3 Audio Media
4 Audio-Visual Media
5 Internet Media

1. Print/press Media: Advertising messages are communicated through print media such as news
papers, magazine, and hoarding board etc. It can be following types:
a. Newspapers: They can be daily or weekly that cover the local, regional, national and
international current news, ideas and opinions affairs about different aspects including
advertising. For example, Gokhara Pattra and Kantipur are the daily news papers
newspapers.
Advantages
 They have high coverage
 They are flexible and high exposure
 They printed regularly
 They are appropriate for all types of advertising
Disadvantages
 They have short life span
 They are not suitable for illiterate people

b. Journals and Magazines: They are published monthly, quarterly, semi-annually and
annually. The paper quality of journals and magazine are generally higher than the news
papers. They are targeted for the specific groups as well as on specific field or topic. For
example, “Journal of management” is a journal. Likewise, “Women” is magazine.
Advantages
 They have focused for specific groups
 The life span is longer
 The paper quality is high
Disadvantages
 Limited exposure
 The cost is high
 c. Others: Newsletters, catalogues, package print or label, pamphlets, brochures, hoarding,
and sign board are means of advertising.
Advantages
 Useful for all types of products
 Reach at target customer
 Lifespan is long
Disadvantages
 Limited coverage

2. Visual Medias: They consist of Hoarding board, sign board. Electrical sign, wall painting, poster
banners, sky writing window display trade fairs and calendars. They can be divided into indoor
and outdoor advertising. The advertising that can be seen from the inside the room or home is
called inside advertising. For example calendar is inside advertising media. The advertising that
can be seen from the outside the room or home is called outside advertising media. For
example, hoarding board is outside advertising media.

Advantages
 They are more effective
 They draw the attention of people
Disadvantages
 They have limited coverage
3. Audio Medias: Advertising can be known through sounding or listening. They are radio, audio
tapes, circular disks (CDs) and milking by which advertising is done.
Advantages
 Draw the attention
 Reach at far and wide
 Cost effective
Disadvantages
 Limited users
 Short life span
4. Audio-Visual Medias: They consist of sound, motion and visual. They are television, cinemas,
and audio-visual tapes.
Advantages
 Widely used
 More coverage
 More effective
 Entertaining
Disadvantages
 Costly
 Limited viewers
 5. Internet Media: It consists of computers, internet, face book, web sites by which advertising is
done. It is widely used media. It has worldwide reach.
Advantages
 Global coverage
 Cost effective
 Entertaining
Disadvantages
 Needs knowledge for use
 Suitable for literate people

Public Relation

1. Meaning of Public Relation: Public relation is the keeping good relationship with key stakeholders to
create favorable attitude and opinions toward the organization. Key stakeholders are shareholders,
customers, employees, intermediaries, community, media, and government.

2. Tools of Public Relation: Tools of public relation are given below:

Tools of Public Relation

Public Sponsorship News Exhibition Features Publications Press

Service of Events Release and Articles Conference
Activities Displays

Figure 8-1: Tools of Public Relation

a. Public service activities: Participation in developmental or social activities such as organizing of

free health camp, donation to school, hospitals or differently able people, cultural and
environmental preservation,
b. Sponsorship of events: sports, cultural programs, cleanliness
c. News release: News release about new product, new technology, public service activities
through media.
 d. Exhibition and Displays: They provide several prospects with the opportunity of observing and
handling products. They attract customers toward the product and provides product
information
e. Features Articles: It is a longer manuscript (up to 3000 words) that is normally prepared for a
specific publication.
f. Publications: Publications are used to provide information about the organization, its policies,
activities, product and technology to the key stakeholders.
g. Press Conference: Press or Medias or journalists are invited on the programs in which
information about the product and organization is given to them. They publish the information
of product and organization from their Medias. It is also used to counter the negative publicity.

1. Objectives of Public Relations: Objectives of Public Relation are given below:

Table 8-3
Objectives of Public Relation

Objectives of Public Relation

1. Prestige and Reputation
2. Develop the positive attitude and opinions
3. Announcement of New Products
4. Announcement of New Technology
5. Announcement of Policies and Activities
6. Counter Negative Rumors

Publicity

1. Meaning of Publicity: If any information about the product or organization are communicated
to its target customers or people through unpaid communication media that is called publicity.
It is part of public relation. So, the objectives of public relation are the objectives of publicity.

2. Forms/ Methods/Types of Publicity: Forms of publicity are given below:

Table 8-4
Forms of Publicity
 N. Forms/ Methods/Types of Publicity
1 Press Conference
2 News Releases
3 Features Articles
4 Publications
5 Sponsorship of events

Personal Selling

1. Meaning of Personal Selling: Personal selling is the personal communication between sellers and
customers or prospect about the product or service. Sales person communicates product information to
customers, motivates them to buy the product or service and complete the sales. It involves face to face
interaction about the service or product. It is oldest method of promotion.

According to the William Stanton, “Personal selling is the personal communication of information to
persuade somebody to buy something”.

2.Objectives of Personal Selling

1. Personal Communication: Personal selling communicates all information to their customers or

prospects. Information can be brand of product, price of product, using method, advantages of
the product, warning etc. Such information helps customers to know about the product.
2. Persuasion: Personal selling persuades customers to buy the products through communicating
all necessary information. Generally, customers do not buy the product without persuasion. So,
persuasion is very essential for effective selling of products.
3. Close the Sales: The main objective of personal selling is to close the sales of products. Ultimate
objective of every organization is to close the sales of products. Personal selling communicates
all necessary information to customers as their buying motive and situation by which customers
are persuaded to buy the products.
4. Relationship Building: Personal selling build up the relationship with customers by which
customers do not move toward another shops. Relationship building with customers is strategic
tool to hold the customers by which both organization and customers get long term mutual
benefits.
5. Feedback Information: Feedback information from the customers about the product is very
necessary to modify in the existing product or in the marketing mix. Personal selling provides
information to customers and gets feedback from them about the product or marketing mix.
6. Non-Selling Functions: Salespersons perform non selling functions also besides selling functions.
They keep the record of sales of products, handle the customers complaint, get the suggestions
from customers, request customers to receive the amount of credit sales of products,
relationship building etc.
3. Types of Personal Selling

A. According to the Location: Personal selling can be classified into two types according to the
location. They are:
1. Indoor Personal Selling: The personal selling that is done from the showroom or shop
that is called indoor personal selling. Salesperson sales the products or service from the
showroom or shop.
2. Outdoor Personal Selling: The personal selling that is done from the outside the shop or
showroom that is called outdoor personal selling. Sales person sales the product or
service by going door to door of customers.
B. According to the Employers: Personal selling can be classified into three types:
1. Manufacturers’ Sales person (Trade selling): Sales persons who is appointed by the
manufacturers for selling the manufacturers’ product to wholesalers or retailers that is
called manufacturers’ sales person. Manufacturers’ sales person can be again classified
into various types:
a. Pioneer-products sales person/ sales people: The sales person who sales the
pioneer product in the market. Sales person must have capacity to search the
market for the pioneer product.
b. Dealer servicing sales person: Sales person trains the sales staffs of their clients and
motivates customers to use the sales promotion materials for the products. They
take the order from customers and support to dealers for increasing the sales.
c. Merchandising sales person/Missionary sales person: They concentrate on getting
intermediary customers to sell the firm’s products to others more effectively. For
example, sales person encourages to doctor to prescribe the new medicine to
patients.
d. Engineer sales person: The sales person who sales the technical product to
customers. Sales person must have technical knowledge for selling the products. For
example, selling of computers and washing machine.
2. Wholesalers’ Sales person: Sales person who is appointed by the wholesalers for selling
the product of wholesalers to retailers that is called wholesalers’ sales person.
3. Retailers’ Sales person: Sales persons who is appointed by the retailers for selling the
products to ultimate customers that is called retailers’ sales person.

4. Process of Personal Selling of Indoor Sales: Persona: selling process of indoor sales
includes following steps.
 Draw Reception Inquiry Presentati
Attention
on

Payment
with Allied Closing Handling
Commend sale the Sales Objections
ale words

Figure 8-2: Process of Indoor Selling

a. Draw Attentions: Sales person needs to draw the attention of prospects or

customers toward the shop. The shop should be decorated, it should be located at
center, products should be arranged in the shop attractive way considering neat and
clean and sales person should have seated on shop with smiling face. Such activities
draw the attention of customers toward the shop.
b. Welcome/ Reception: When customers enter into the shop, sales person should
welcome them through “Namaskar” or hello; “have a seat please” according to the
situation and types of shops arrangement. Some time, if sales person does not
response customer, they may move toward another shops. They expect from sales
person respectful behavior.
c. Inquiry: After welcoming or responding them, salespersons should ask customers
about their needs. The needs of customers are to be ascertained. The salespersons
need to listen patiently and carefully about what customer is saying.
d. Presentation: Sales persons should show the product with attractive presentation
about the products. All necessary information like benefits of product, design of
products, quality of product, price of product etc. should be presented effectively. It
should be done considering customers buying motive, nature and behavior.
Varieties products should be shown to customers that make easy them for
selection.
e. Handling Objections: Customers may raise the doubtful questions or objections
about the product after getting information from sales person. Sales person should
answers of objections with very clearly, confidentially and tactfully. If customers are
not convenience or satisfied with the answer, they may move toward other shops.
f. Closing the Sales: After getting satisfactory answer from the sales person,
customers chose the product. The terms and conditions are finalized. The sale of
product is closed. Customer makes payment and sales person packed the product
and delivered to customers.
g. Allied sale: Sales person should suggest and propose allied items related to the
products already purchased. For example, if customers have purchased the shoe,
sales person should propose the shocks or police. Such allied sale increases the total
sales of products.
h. Payment with Commendable words: This is the final step of personal selling of
indoor sales person. Sales person should pay commendable words like “thank you
very much”, “please come again”, “Your choice is best” when customers is ready to
go from the shop after purchase of products. Likewise, sales person can offer some
gift also to customers such as pen, key-kitchen, and calendar. Such behavior of sales
person makes good relationship with customers.

5. Process of Personal Selling of Outdoor Sales: Persona: selling process of outdoor sales
includes following steps.

Presentation
Prospecting Pre-approach Approach and
Demonstration

Closing the Replying the

Follow up Sales Objections

Figure 8-3: Process of Personal Selling of Outdoor Sale

a. Prospecting: Prospecting is the process of searching the potential customers or

prospect. Searching the prospect can be done from internal and external sources.
Organization’s record and own experience are the internal sources by which prospect
can be searched. Likewise, Medias, friends, relatives and internet are the sources of
external for searching the prospects.
b. Pre-approach: Pre-approach is the planning of approach. In this step, all information of
prospect are analyzed in terms of their culture, buying motive, occupation, language,
income level, age groups, family norms and values etc. Similarly, sales person need to
 study about product, competitors, organization and nature of market. Likewise, sales
person should have prepared mentally and physically for approaching.
c. Approach: This is the step in which sales person should meet with potential customers
according to the planning or pre-approach. Sales person should not forget that “first
impression is the last impression”. So, sales person should approach with proper dress,
smiling face, introducing him/her self and with offering warm salutation.
d. Presentation and Demonstration: Sales person should presents and demonstrates the
product what he/she has brought for selling. All important information of the product
should be presented with attractive demonstration considering the types of customers
and situation. Sales person must have capacity to convert prospects into customers
through motivating them.
e. Replying the Objections: In this step, sales person may ask some product related
doubtful questions. Sales person should give answer confidentially, clearly, and tactfully.
Satisfactory answer of sales person convert prospect into customer.
f. Closing the Sales: Sales person should catch the movement in which product can be sold
to customers. The ultimate objective of sales person is to close the sales. So, every
efforts of sales person should concentrates on closing the sales. Likewise, sales person
should say commendable words like “Thank you very much”, “Your choice is best”
before leaving from there.
g. Follow-up: Outdoor sales person should follow-up to customers after sales of products
to know their likes and dislikes about the product. Customers’ feedback about the
product helps to modify in the existing product or marketing mix.

Sales promotion

1. Concept of Sales Promotion: Sales promotion refers short terms incentives that are given to
buyers or customers for greater and quicker sales of products. Short terms incentives are
discounts, bonus, free sample, free gifts, rebates etc. Sales promotion has been increasing very
popular at present to capture the market as well as face market competition. Sales promotion
can be directed at consumers, middleman and sales personnel.

According to the Philip Kotler, “Sales promotion consists of diverse collection of incentive tools, mostly
short term, designed to stimulate quicker and/ or greater purchase of particular products/ services by
consumers or the trade.”

2. Characteristics of Sales Promotion

a. It refers short terms incentives
b. Quicker response from the buyers or customers
c. Greater sales of Products
d. Strategic weapon/tools to face the competition
 e. It can be various types such as consumer promotion, middleman promotion and sales force
promotion.
f. Components/ Method of Promotion

3. Objectives of Sales Promotion

a. Encourages greater purchase volume
b. Encourages quicker purchase of products
c. Attract new customers
d. Attract middle man
e. Motivates sales force for effective selling of products
f. Strategic tools to face the competition
g. Support new product

4. Methods/Types of Sales Promotion (Tools): Methods of Sales Promotion are given below:

Table 8-5

Methods of Sales Promotion

Methods of Sales Promotion

Consumer Promotion Trade Promotion Sales force Promotion
 Free sample  Free gifts  Gift items
 Coupons  Allowances  Promotional
 Rebates  Discounts Kits
 Premiums  Middlemen  Sales force
 Price-off contest and contest and
 Consumer prizes prizes
contest and  Credit facilities  Bonus and
prizes  Trade show and commission
 Displays and Exhibitions  Allowances
Demonstration
 Bumper Prizes

1. Consumers Promotion Methods: If short terms incentives like coupons, price off, free
gift etc. are given to consumers for greater and quicker sales of products that is called
consumer promotion. Consumer promotion tools are given below:
a. Free sample: Free sample of product is given at free of cost to consumers in order
to take consumers response about the product. It is generally given at the launching
phase of the product. Likewise, it is given for convenience products.
b. Coupons: coupons are the certificates, which are put inside the package or outside
the package of the product. They are generally reduced the price of the product or
consumers have owned some product at free of cost.
 c. Rebates: Rebates provide price reduction after the purchase of product. Consumers
need to submit the proof of purchase of products.
d. Premiums (gifts): Premiums are the free gifts that are given to consumers while
buying the products. Manufacturers offer such premiums for short term in special
occasion. For example, cup is given with purchase of horlics.
e. Price-off: Price-off is reduction in the actual price of product. So, consumers get
product at reduced price. Such price off is also known as discount on actual price of
product.
f. Consumer contest and prizes: Consumers are participated in contest and winner
gets the prize. Winner gets the price in form of cash or product or they get the
chance of free trips or any other things.
g. Displays and Demonstration: They are the point of purchase displays (poster) to
attract the attention of consumers. Consumers are to be motivated to buy the
products. Product demonstration in trade fairs and exhibitions motivates consumers
to buy the product. Free trails can be given to consumers. Likewise, products are
shown by its functions practically.
h. Bumper Prizes: Bumper prizes consist of multiple prizes such as gold, house, free
trips, cash, free product etc., which are given to the winner. This is widely used in
Nepal specially in buying of paint (colors), news papers, cold drinks, tea etc.
Generally, such types of offer are given in the special occasion.
2. Middlemen/ Trade Promotion Methods: If short term incentives like free gifts,
discounts, allowances etc. are given to middlemen or traders to encourage them to buy
the product that is called middlemen promotion. It is also known as channel promotion
or distributor promotion. Middlemen promotion tools are given below:
a. Free gift: Free gift is given at free of cost to middlemen in order to encourage them
to buy the product. Free gift can be a product that is given to middlemen.
b. Allowances: Allowances are given to middlemen for supporting in promotional
activities. Middlemen display the product in their showroom or they support in local
advertising of the product.
c. Discounts: Discounts are reduction in price of the product. They get certain
percentage of discount like 5% or 10% or 20% on actual price. Discount can be cash
discount, quantity discount or trade discount or seasonal discount.
d. Middlemen contest and prizes: Middlemen are involved in the contest and winner
gets the prizes. Generally, manufacturers announce the name of the winner on the
basis of sales volume or on the basis of best display of the product. Prizes can be
cash, items, trip etc.
e. Credit facilities: Manufacturers provide credit facilities to middlemen. Such facilities
motivate middlemen to buy the more products.
f. Trade shows and Exhibitions: Trade shows and exhibitions are organized by the
local level or national level or international level by any organization or government
in order to promote the product in the market. Such activities persuade middlemen
to buy the products.
 3. Sales force Promotion Methods: If short term incentives like bonus, gift, commission etc
are given to sales force to encourage them for effective selling of products that is called
sales force promotion. Sales force promotion tools are given below:
a. Gift items: They are given at free of cost to sales force in order to encourage them
for effective selling of products. Gift items can be pen, glass, bag, diary etc.
b. Promotional kits: Promotional kits consist of catalogues, brochures and other
information about the product that help sales force for effective selling of products.
c. Sales force contest and prizes: Sales forces are encourages for selling more
products over a stated time period and winner is announced on the bases of highest
sales volume of the product. Prizes can be cash, product, trip and promotion also.
d. Bonus and Commission: They are cash awards to sales force to increase sales over
specified volumes. Such bonus and commission motivate sales force for more selling
of products.
e. Allowances: Allowances like food allowance, travelling allowance, laundry
allowance etc are given to sales force to encourage them for effective selling of
products.

Selection of Promotion Mix/ Factors Affecting Determination of Promotion mix

Promotion mix is essential for demand creation. It needs expense that may affects price of product as
well as profit of an organization. So, it should be considered following factors:

Table 8-6

Selection of Promotion Mix

Selection of Promotion Mix

S.N Factors
1 Promotion Objectives
2 Nature of Product
3 Nature of Target Market
4 Stages of Product Life Cycle
5 Size of Promotion Budget
6 Promotion Mix Strategies

1. Promotion Objectives: Promotion objectives should be considered while designing the

promotion mix. Promotion objectives can be informing, persuading, reassuring,
reminding, image building, introducing product at introduction stage etc that affect to
selection of promotion methods. For example, publicity and public relations are
important if promotion objective is to build up the image.
2. Nature of Product: The nature of the product determines the promotion mix. For
example, advertising, personal selling and sales promotion are important for the
convenience products. Personal selling and publicity are important for the specialty
products. Likewise, personal selling and public relation are important for the industrial
product.
3. Nature of Target Market: Target market determines the promotion mix. Target market
can be consumer market, business market or industrial market. If your target market is
consumer market, advertising, personal selling and sales promotional are used for
promotion of product but your target market is industrial market, public relation and
personal selling are important.
4. Stages of Product Life Cycle: According to the stages of product life cycle, promotion mix
should be designed. In the introduction stage, aggressive promotion strategy should be
used but in the stage of decline, all promotional strategies should be minimized. Likewise,
in the growth stage, promotion objective should be focused on image building, so
advertising, personal selling, public relation, publicity and sales promotion are important.
Likewise, in the maturity stage, promotion objective should be focused on loyalty of
brand and competition is very high so need to focus on sales promotion using other tools
also.
5. Size of Promotion Budget: Promotion needs budget. If your promotion budget is high,
advertising, sales promotion and public relation are to be focused but promotion budget
is small, personal selling is to be focused, however advertising should be done through
hoarding board, sigh board, wall painting and posters.
6. Promotion Mix Strategies: Promotion mix strategies influence promotion mix. Promotion
strategies can be following types:
a. Push or Pull Strategy: In push sale strategies, promotion programs are directed
toward middlemen in order to encourage them for more selling of products. Personal
selling and trade promotion tools like bonus, discount, allowances, free gift etc. used
to motivate middlemen. This strategy is useful when where brand loyalty is low and
market share is to be protected. In pull sale strategy, promotion programs are
directed toward the consumers. Advertising and consumer promotion tools like free
gift, price- off, rebates etc are offered to consumers. This strategy is useful when
brand loyalty is high.
b. Interpersonal or Mass promotion Strategy: Interpersonal strategy focused on
personal selling for promotion of product where as mass promotion strategy focused
on advertising, publicity and public relation for promotion of product.
c. Competitive Responsive Strategy: Promotion strategy is designed with a view to
respond to competitors’ moves. The strategies can be”
I. Meet Competition Strategy: Promotion strategies should be designed
according to the competitors’ promotion strategy. This strategy is suitable
for similar products, which are sold at same market. Promotion strategy of
Coke and Pepsi.
 II. Above Competition Strategy: In this strategy, promotional activities should
be done more than the competitors’ activities. So, organization needs more
budget to design promotion mix.
III. Below Competitors Strategy: In this strategy, promotional activities are to be
done below than the competitors’ promotional activities.
d. E-commerce Strategy: If promotional activities are to be done through the internet or
electronic means or websites that is called e- commerce strategy. This strategy is
used in direct marketing.
e. Cooperative Promotion Strategy: In this strategy, both manufacturers and channel
members design the promotion mix jointly. This strategy facilitates cost sharing.

Promotion Practices in Nepal

1. Promotion objectives
2. Promotion mix/Methods
3. Promotion Budgeting
4. Promotion Strategies
5. Available of promotion media
6. Use of promotion media