Sales Promotion

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Sales promotion is one of the five aspects of the promotional mix. (The other 4 parts of the promotional mix
are advertising, personal selling, direct marketing and publicity/public relations.) Media and non-media
marketing communication are employed for a pre-determined, limited time to increase consumer demand,
stimulate market demand or improve product availability. Examples include contests, coupons, freebies, loss
leaders, point of purchase displays, premiums, prizes, product samples, and rebates
Sales promotions can be directed at either the customer, sales staff, or distribution channel members (such
as retailers). Sales promotions targeted at the consumer are called consumer sales promotions. Sales
promotions targeted at retailers and wholesale are called trade sales promotions. Some sale promotions,
particularly ones with unusual methods, are considered gimmicks by many.
Sales promotion includes several communications activities that attempt to provide added value or incentives to
consumers, wholesalers, retailers, or other organizational customers to stimulate immediate sales. These efforts
can attempt to stimulate product interest, trial, or purchase. Examples of devices used in sales promotion
include coupons, samples, premiums, point-of-purchase (POP) displays, contests, rebates, and sweepstakes.
Sales promotion is needed to attract new customers, to hold present customers, to counteract competition, and to
take advantage of opportunities that are revealed by market research. It is made up of activities, both outside
and inside activities, to enhance company sales. Outside sales promotion activities include advertising,
publicity, public relations activities, and special sales events. Inside sales promotion activities includes window
displays, product and promotional material display and promotional programs such as premium awards and
contests.[1]
Consumer sales promotion techniques



Price deal: A temporary reduction in the price, such as 50% off.
Loyal Reward Program: Consumers collect points, miles, or credits for purchases and redeem them for
rewards.



Cents-off deal: Offers a brand at a lower price. Price reduction may be a percentage marked on the
package.



Price-pack deal: The packaging offers a consumer a certain percentage more of the product for the same
price (for example, 25 percent extra).




Coupons: coupons have become a standard mechanism for sales promotions.
Loss leader: the price of a popular product is temporarily reduced below cost in order to stimulate other
profitable sales



Free-standing insert (FSI): A coupon booklet is inserted into the local newspaper for delivery.



On-shelf couponing: Coupons are present at the shelf where the product is available.



Checkout dispensers: On checkout the customer is given a coupon based on products purchased.



On-line couponing: Coupons are available online. Consumers print them out and take them to the store.



Mobile couponing: Coupons are available on a mobile phone. Consumers show the offer on a mobile
phone to a salesperson for redemption.



Online interactive promotion game: Consumers play an interactive game associated with the promoted
product.



Rebates: Consumers are offered money back if the receipt and barcode are mailed to the producer.



Contests/sweepstakes/games: The consumer is automatically entered into the event by purchasing the
product.

Point-of-sale displays:-




Aisle interrupter: A sign that juts into the aisle from the shelf.



Dangler: A sign that sways when a consumer walks by it.



Dump bin: A bin full of products dumped inside.



Bidding portals: Getting prospects



Glorifier: A small stage that elevates a product above other products.



Wobbler: A sign that jiggles.



Lipstick Board: A board on which messages are written in crayon.



Necker: A coupon placed on the 'neck' of a bottle.



YES unit: "your extra salesperson" is a pull-out fact sheet.



Electroluminescent: Solar-powered, animated light in motion.[2]



Kids eat free specials: Offers a discount on the total dining bill by offering 1 free kids meal with each
regular meal purchased.



Sampling: Consumers get one sample for free, after their trial and then could decide whether to buy or
not.

Trade sales promotion techniques



Trade allowances: short term incentive offered to induce a retailer to stock up on a product.
Dealer loader: An incentive given to induce a retailer to purchase and display a product.



Trade contest: A contest to reward retailers that sell the most product.





Point-of-purchase displays: Used to create the urge of "impulse" buying and selling your product on the
spot.



Training programs: dealer employees are trained in selling the product.



Push money: also known as "spiffs". An extra commission paid to retail employees to push products.

Trade discounts (also called functional discounts): These are payments to distribution channel members for
performing some function .
Retail Mechanics
Retailers have a stock number of retail 'mechanics' that they regularly roll out or rotate for new marketing
initiatives.



Buy x get y free a.k.a. BOGOF for Buy One Get One Free
Three for two



Buy a quantity for a lower price



Get x% of discount on weekdays.



Free gift with purchase



Political issues

Sales promotions have traditionally been heavily regulated in many advanced industrial nations, with the
notable exception of the United States. For example, the United Kingdom formerly operated under a resale price
maintenance regime in which manufacturers could legally dictate the minimum resale price for virtually all
goods; this practice was abolished in 1964.
Most European countries also have controls on the scheduling and permissible types of sales promotions, as
they are regarded in those countries as bordering upon unfair business practices. Germany is notorious for
having the most strict regulations. Famous examples include the car wash that was barred from giving free car
washes to regular customers and a baker who could not give a free cloth bag to customers who bought more
than 10 rolls.
Tools of Sales Promotion
To increase the sale of any product manufactures or producers adopt different measures like sample, gift, bonus,
and many more. These are known as tools or techniques or methods of sales promotion. Let us know more
about some of the commonly used tools of sales promotion.
(i)

(ii)

(iii)

(iv)

(v)

(vi)

(vii)

Free samples: You might have received free samples of shampoo, washing powder,
coffee powder, etc. while purchasing various items from the market. Sometimes these
free samples are also distributed by the shopkeeper even without purhasing any item
from his shop. These are distributed to attract consumers to try out a new product and
thereby create new customers. Some businessmen distribute samples among selected
persons in order to popularize the product. For example, in the case of medicine free
samples are distributed among physicians, in the case of textbooks, specimen copies
are distributed among teachers.
Premium or Bonus offer: A milk shaker along with Nescafe, mug with Bournvita,
toothbrush with 500 grams of toothpaste, 30% extra in a pack of one kg. are the
examples of premium or bonus given free with the purchase of a product. They are
effective in inducing consumers to buy a particular product. This is also useful for
encouraging and rewarding existing customers.
Exchange schemes: It refers to offering exchange of old product for a new product at
a price less than the original price of the product. This is useful for drawing attention
to product improvement. ‘Bring your old mixer-cum-juicer and exchange it for a new
one just by paying Rs.500’ or ‘exchange your black and white television with a colour
television’ are various popular examples of exchange scheme.
Price-off offer: Under this offer, products are sold at a price lower than the original
price. ‘Rs. 2 off on purchase of a lifebouy soap, Rs. 15 off on a pack of 250 grams of
Taj Mahal tea, Rs. 1000 off on cooler’ etc. are some of the common schemes. This
type of scheme is designed to boost up sales in off-season and sometimes while
introducing a new product in the market.
Coupons: Sometimes, coupons are issued by manufacturers either in the packet of a
product or through an advertisement printed in the newspaper or magazine or through
mail. These coupons can be presented to the retailer while buying the product. The
holder of the coupon gets the product at a discount. For example, you might have
come across coupons like, ‘show this and get Rs. 15 off on purchase of 5 kg. of
Annapurna Atta’. The reduced price under this scheme attracts the attention of the
prospective customers towards new or improved products.
Fairs and Exhibitions: Fairs and exhibitions may be organised at local, regional,
national or international level to introduce new products, demonstrate the products
and to explain special features and usefulness of the products. Goods are displayed
and demonstrated and their sale is also conducted at a reasonable discount.
‘International Trade Fair’ in New Delhi at Pragati Maidan, which is held from 14th to
27th November every year, is a well known example of Fairs and Exhibitions as a
tool of sales promotion.
Trading stamps: In case of some specific products trading stamps are distributed
among the customers according to the value of their purchase. The customers are
required to collect these stamps of sufficient value within a particular period in order

(viii)

(ix)

to avail of some benefits. This tool induces customers to buy that product more
frequently to collect the stamps of required value.
Scratch and win offer: To induce the customer to buy a particular product ‘scratch
and win’ scheme is also offered. Under this scheme a customer scratch a specific
marked area on the package of the product and gets the benefit according to the
message written there. In this way customers may get some item free as mentioned on
the marked area or may avail of price-off, or sometimes visit different places on
special tour arranged by the manufacturers.
Money Back offer: Under this scheme customers are given assurance that full value
of the product will be returned to them if they are not satisfied after using the product.
This creates confidence among the customers with regard to the quality of the
product. This technique is particularly useful while introducing new products in the
market.

Promotional techniques
A company can employ various promotional techniques in order to communicate with the target market,
techniques that form the promotional mix.
Depending on the communication means, the promotional techniques can be:

Direct (personal) communication techniques – focused on creating a relationship with each client
(personal sales, direct marketing)

Indirect (non- personal) communication techniques – based on mass communication, the message in
identical for a high number of potential customers ( advertising, public relations, sales promotion
Following, the main promotional techniques used by companies:
1. Advertising
Is a form of promoting the products, services and image of a company that is addressed to large
numbers of consumers, using the mass media. Depending on the financing, there are:

Free advertising – is an informative communication that doesn't have a sponsor. Focuses on reporting
news or information concerning a company, using mass media (press conferences, press releases)

Advertising – is paid by a sponsor, that is usually the company producing the promoted goods. Its main
characteristics are:

It's a paid promotion technique

The target market is scattered territorially

The message is transmitted using mass media

Is a non-personal communication technique

The company paying for the advertising is usually identified in the content of the message.
2. Public relations
Are a deliberate and planned effort of a company to communicate to various public categories that
might have an interest in the company's activities (customers, investors, employees). The purpose of
this in creating a favorable image and a trust climate based on convenient mutual relations. Public
relations use various communication channels, from personal channels to mass media.
The differences between public relations and advertisingare:

Public relations use informative messages (company achievements, annual reports, balance
sheets)

Advertising calls to immediate action while public relations try to build trust

Public relations actions are unique, while advertising can be repeated

Public relations can be achieved also through public dialogue.
3. Sales promotion
Uses a wide variety of instruments meant to lead the customer to an immediate action regarding the
purchase of a good or service. The main characteristics of sales promotions are:

Offer an immediate advantage – a price discount, a higher quantity at the same price, a free
service, a contest.

Are exceptional – the advantage is not permanent, is available for only a period of time

Call to immediate action – the fact that the offer is limited is highlited

Cause
regrets

if
the
customer
doesn't
purchase
the
product.
All these are communicated in the message that joins the campaign.
The main sale promotion techniques are:

Price discounts

Offering a larger amount of the product at the same price

Group sales

Gifts

Loyalty gifts

Samples

Games, contests, raffles.
4. Point-of-sale promotions
Involve the usage of product display techniques, also supported by various audio-video materials,
that stimulate the purchasing process of the people visiting the sale point. Even if the point-of-sale
promotion is usually employed by detail sellers, it also has a wider application. Actually, each
company subsidiary can be provided with materials that inform the customer about the products and
services he can purchase in that place. These materials include:

Lightboxes

Banners

Posters

Product display shelves

Specific lighting

Point-of-sale atmosphere

Audio-video messages

Promotional gifts (pens, lighters, bags, products printed with the company brand)
5. Direct marketing
Is an interactive communication system with each consumer, using a distance communication
mean: catalogs, personal letters, electronic catalogs. The interactivity consists in the option the
receiver has to order the product from the catalog, and have it delivered at home.
6. Personal sales
Involve the direct contact between a salesperson and a customer, usually at the customer's residence
or in public places. The selling process is joined by promotional messages focused on the
advantages offered by the product.
7. Promotional gifts
Are small presents printed with the company logo or product name, offered to the customer in order
to remind him of the product. For example: pens, lighters, ashtrays, agendas.
8. Internet promotion
Consists in communication using web sites that will create the virtual company image, present the
products, include press releases. The most used Internet advertising means are: banners, pop-ups,
newsletters, link to the company website.
Push & Pull Promotional Strategy
Promotion is an important part of any marketing strategy. You can have the best product or service out there, but
unless you promote it successfully, no one will know about it. There are three basic types of promotional
strategies – a push strategy, a pull strategy or a combination of the two. In general, a push strategy is sales
oriented, a pull strategy is marketing-oriented and a push-pull strategy is a combination of the two.


Push Strategy
A push promotional strategy works to create customer demand for your product or service through promotion:
for example, through discounts to retailers and trade promotions. Appealing package design and maintaining a
reputation for reliability, value or style are also used in push strategies. One example of a push strategy is
mobile phone sales, where manufacturers offer discounts on phones to encourage buyers to chose their phone.
Push promotional strategies also focus on selling directly to customers, for example, through point of sale
displays and direct approaches to customers.
Pull Strategy

A pull promotional strategy uses advertising to build up customer demand for a product or service. For example,
advertising children's toys on children's television shows is a pull strategy. The children ask their parents for the
toys, the parents ask the retailers and the retailers the order the toys from the manufacturer. Other pull strategies
include sales promotions, offering discounts or two-for-one offers and building demand through social media
sites such as YouTube.
Objectives of Promotional Strategies
Combination Strategies
Some companies use a combination of both push and pull strategies. For example, Texas-based textile producer
Cotton Incorporated uses a push/pull promotional strategy. They push to create customer demand through
constantly developing new products and offering these products in stores; and pull customers towards these
products through advertising and promotion deals. According to marketing expert Blair Entenmanns, in an
article he wrote for his company Marketing Help!, there is no single correct combination of push and pull. The
amount spent on each type of strategy will depend on factors such as budget, the type of product, the target
audience and competition.
When To Use
Push promotional strategies work well for lower cost items, or items where customers may make a decision on
the spot. New businesses use push strategies to develop retail markets for their products and to generate
exposure. Once a product is already in stores, a pull strategy creates additional demand for the product. Pull
strategies work well with highly visible brands, or where there is good brand awareness. This is usually
developed through advertising. promotional strategy involves taking the product directly to the customer via
whatever means, ensuring the customer is aware of your brand at the point of purchase."Taking the product to
the customer"
EXAMPLES OF PUSH TACTICS



Trade show promotions to encourage retailer demand
Direct selling to customers in showrooms or face to face



Negotiation with retailers to stock your product



Efficient supply chain allowing retailers an efficient supply



Packaging design to encourage purchase



Point of sale displays

2. PULL STRATEGY
A pull strategy involves motivating customers to seek out your brand in an active process.
"Getting the customer to come to you"
EXAMPLES OF PULL TACTICS
 Advertising and mass media promotion
 Word of mouth referrals


Customer relationship management



Sales promotions and discounts

Simple diagram explaining some example differences between a push and pull promotional strategy
The origin of these two terms refers to the supply chain and how the demand for the product is generated.
PUSH STRATEGY EXPLAINED
The term 'push strategy' describes the work a manufacturer of a product needs to perform to get the product to
the customer. This may involve setting up distribution channels and persuading middle men and retailers to
stock your product. The push technique can work particularly well for lower value items such as fast moving
consumer goods (FMCGs), when customers are standing at the shelf ready to drop an item into their baskets and
are ready to make their decision on the spot. This term now broadly encompasses most direct promotional
techniques such as encouraging retailers to stock your product, designing point of sale materials or even selling
face to face. New businesses often adopt a push strategy for their products in order to generate exposure and a
retail channel. Once your brand has been established, this can be integrated with a pull strategy.
PULL STRATEGY EXPLAINED
'Pull strategy' refers to the customer actively seeking out your product and retailers placing orders for stock due
to direct consumer demand. A pull strategy requires a highly visible brand which can be developed through
mass media advertising or similar tactics. If customers want a product, the retailers will stock it - supply and
demand in its purest form, and this is the basis of a pull strategy. Create the demand, and the supply channels
will almost look after themselves.
FINAL WORDS
A successful strategy will usually have elements of both the push and pull promotional methods. If you are
starting a new business and intend to sell a product through retailers, you'll almost certainly need to persuade
outlets to purchase and stock your product. You'll also need to raise brand awareness and start building valuable
word of mouth referrals. If you have designed a product around the customer and have considered all elements
of the marketing mix, both of these aspects should be achievable.
Promotion - Push & Pull Strategies
"Push or Pull"?
Marketing theory distinguishes between two main kinds of promotional strategy - "push" and "pull".
Push

A “push” promotional strategy makes use of a company's sales force and trade promotion activities tocreate
consumer demand for a product.
The producer promotes the product to wholesalers, the wholesalers promote it to retailers, and the retailers
promote it to consumers.
A good example of "push" selling is mobile phones, where the major handset manufacturers such as Nokia
promote their products via retailers such as Carphone Warehouse. Personal selling and trade promotions are
often the most effective promotional tools for companies such as Nokia - for example offering subsidies on the
handsets to encourage retailers to sell higher volumes.
A "push" strategy tries to sell directly to the consumer, bypassing other distribution channels (e.g. selling
insurance or holidays directly). With this type of strategy, consumer promotions and advertising are the most
likely promotional tools.
Pull
A “pull” selling strategy is one that requires high spending on advertising and consumer promotion to build up
consumer demand for a product.
If the strategy is successful, consumers will ask their retailers for the product, the retailers will ask the
wholesalers, and the wholesalers will ask the producers.

Publicity
Publicity is the movement of information with the effect of increasing public awareness of a subject. The
subjects of publicity include people (for example, politicians and performing artists), goods and services,
organizations of all kinds, and works of art or entertainment.
Publicity is gaining public visibility or awareness for a product, service or your company via the media. It is the
publicist that carries out publicity, while PR is the strategic management function that helps an organization
communicate, establish and maintain communication with the public. This can be done internally, without the
use of media.
From a marketing perspective, publicity is one component of promotion which is one component of marketing.
The other elements of the promotional mix are advertising, sales promotion, direct marketing and personal
selling. Examples of promotional tactics include:



Art people
event sponsorship



Arrange a speech or talk



Make an analysis or prediction



Conduct a poll or survey



Issue a report





Take a stand on a controversial subject



Arrange for a testimonial



Announce an appointment



Invent then present an award



Stage a debate



Organize a tour of your business or projects



Issue a commendation

The advantages of publicity are low cost, and credibility (particularly if the publicity is aired in between news
stories like on evening TV news casts). New technologies such as weblogs, web cameras, web affiliates, and
convergence (phone-camera posting of pictures and videos to websites) are changing the cost-structure. The
disadvantages are lack of control over how your releases will be used, and frustration over the low percentage
of releases that are taken up by the media.
Publicity draws on several key themes including birth, love, and death. These are of particular interest because
they are themes in human lives which feature heavily throughout life. In television serials several couples have
emerged during crucial ratings and important publicity times, as a way to make constant headlines. Also known
as a publicity stunt, the pairings may or may not be according to the fact.
"Publicity is not merely an assembly of competing messages: it is a language in itself which is always being
used to make the same general proposal," writes the art critic John Berger. "It proposes to each of us that we
transform ourselves, or our lives by buying. .publicity is not paif for something more.
Publicists
A publicist is a person whose job is to generate and manage publicity for a product, public figure, especially
a celebrity, or for a work such as a book or movie or band. Publicists could work in large companies as in little
companies.
Though there are many aspects to a publicist's job, their main function is to persuade the press to report about
their client in the most positive way possible. Publicists are adept at identifying and pulling out "newsworthy"
aspects of products and personalities to offer to the press as possible reportage ideas. Publicists offer this
information to reporters in the specific format of a magazine, newspaper, TV or radio show, or online outlet.
The third aspect of a publicist's job is to shape "stories" about their clients at a time that fits within a media
outlet's news cycle.
Publicists are most often categorized under a marketing arm of a company. Marketing is anything that a
company does to get their product into the hands of a customer who will pay for it. Publicity, specifically, uses
the objective opinion of a reporter to tell that story. A seasoned publicist knows how to present a newsworthy
story in a way that suggests editorial coverage in a certain direction. This is what is generally referred to as
"spin," though it is not a negative connotation, only a very keen ability to present a story in a way that fits for a
media outlet at the right time.
Effectiveness of Publicity
The theory, Any press is good press, has been coined to describe situations where bad behaviour by people
involved with an organization or brand has actually resulted in positive results, due to the fame and press
coverage accrued by such events.
One example would be the Australian Tourism Board's "So where the bloody hell are you?" advertising
campaign that was initially banned in the UK, but the amount of publicity this generated resulted in the official
website for the campaign being swamped with requests to see the banned ad.[2]
The popular sitcom, Married... with Children, achieved skyrocketing ratings after activist Terry
Rakolta petitioned sponsors to withdraw their support from the program

Objectives of Public Relations
Like other aspects of marketing promotion, public relations is used to address several broad objectives
including:




Building Product Awareness – When introducing a new product or relaunching an existing product,
marketers can use a PR element that generates consumer attention and awareness through media placements
and special events.
Creating Interest – Whether a PR placement is a short product article or is included with other products
in “round up” article, stories in the media can help entice a targeted audience to try the product. For
example, around the holiday season, a special holiday food may be promoted with PR through promotional
releases sent to the food media or through special events that sample the product.



Providing Information – PR can be used to provide customers with more in depth information about
products and services. Through articles, collateral materials, newsletters and websites, PR delivers
information to customers that can help them gain understanding of the product.



Stimulating Demand – A positive article in a newspaper, on a TV news show or mentioned on the
Internet, often results in a discernable increase in product sales.



Reinforcing the Brand – In many companies the public relations function is also involved with brand
reinforcement by maintaining positive relationships with key audiences, and thereby aiding in building a
strong image. Today it is ever more important for companies and brands to build a good image. A strong
image helps the company build its business and it can help the company in times of crises as well.

Key Public Relations Tools
Marketers have at their disposal several tools for carrying out public relations. The key tools available for PR
include:



Media Relations
Media Tours



Newsletters



Special Events



Speaking Engagements



Sponsorships



Employee Relations



Community Relations and Philanthropy

Before choosing among the various tools marketers should begin by identifying their targeted audiences (e.g.,
target markets) and key messages they wish to send. These should align with the messages and audiences
identified for the product being promoted or corporate goals for non-specific product promotions, such as
corporate image promotions.
The key messages are used in the development of public relations materials and supporting programs described
below. The purpose of key messages is to provide a consistent point of view over time and across numerous PR
methods that reinforce product positioning (i.e., customer's perceptions) and reach the desired target audience.
Each of the PR tools listed above is discussed in detail in our tutorial Types of Public Relations Tools.
Additional PR Activities

In addition to serving as means for helping to achieve marketing objectives, public relations professionals may
undertake additional activities, aimed at maintaining a positive image for an organization. These activities
include:
Market Monitoring
Monitoring public comment about a company and its products is becoming increasingly important especially
with the explosion of information channels on the Internet. Today monitoring includes watching what is written
and reported in traditional print and broadcast media and also keeping an eye on discussions occurring through
various Internet outlets such as forums, chatrooms, blogs and other public messaging areas. Marketers must be
prepared to respond quickly to erroneous information and negative opinions about products as it can spin out of
control very quickly through the new technology channels. Failure to correct misinformation can be devastating
to a product or company’s reputation. It should be noted that specialized monitoring services can be contracted
to help companies keep track of “buzz” about the company and its products.
Crisis Management
Marketers need to be prepared to respond quickly to negative information about the company. When a problem
with a product arises — in fact or substantiated only by rumor — a marketer’s investment in a product and
brand can be in serious jeopardy. Today, with the prevalence of the Internet and wireless communications,
negative information can spread rapidly. Through monitoring marketers can track the issues and respond in a
timely fashion. To manage response effectively, many companies have crises management plans in place that
outline steps to take and company spokespeople to speak on behalf of the company should an event occur.
The Benefits of the PR Professional
While some marketers may prefer to handle their own PR tasks, many others will seek the assistance of outside
PR professionals rather than attempt to handle these activities themselves. Skilled PR professionals offer many
advantages for marketers with their two most important being:
1.
2.

their ability to understand and unearth good stories about a company and its product
their knowledge of the media market may place them in a better position to match stories to the news
angles media reporters look for.
Public Relations Specialized Functions

Public relations functions are categorized by the publics with which relationships are established and to whom
appeals are made to understand and/or accept certain policies, procedures, individuals, causes, products or
services. Practitioners who perform specialized functions may play a management role, operate as a
communications technician, or function in a dual role.








Community Relations
A public relations function consisting of an organization’s planned, active and continuing participation with
and within a community to maintain and enhance its environment to the benefit of both the organization and
the community. This can involve partnerships, volunteer activities, philanthropic contributions and public
participation.
Employee Relations
Employee Relations Dealing and communicating with the employees of an organization. This can include
team building and employee empowerment.
Government Relations
Dealing and communicating with legislatures and government agencies on behalf of an organization.
Financial Relations
Dealing and communicating with firms and interest groups within the organization’s industry.
Media Relations
Dealing and communicating with the news media when seeking publicity or responding to reporters’
questions. It also involves setting up and maintaining a professional and mutually beneficial working

relationship with news gatherers and gatekeepers, in part by becoming known as a credible source and as a
provider of factual, expert information whether or not that information results in media coverage.

Public Affairs
Dealing and communicating with government and groups with regard to societal (public) policies, action
and legislation. Unlike government relations, where the practitioner works strictly on behalf of an
organization, public affairs also is concerned with the effect of public policies, actions and legislation on its
publics.
Roles of Public Relations in an Organization
Almost all large organizations either have a public relations department or outsource their public relations needs
to a company. Public relations is seen as a vital part of maintaining the organization’s image and of
communicating its message to its customers, investors and the general public. A positive perception of a
company or non-profit can increase its sales and improve its bottom line. The functions and key tasks of a
public relations specialist can be varied.
Public Image Strategy
Public relations strategists will work with top executives in the organization to craft an overview of how the
company wants to be perceived, and how it is going to project a positive image. This can involve focusing in on
exactly the right message, and then deciding on the broad outlines of a campaign to disseminate that message.
Outreach Events
Public relations professionals often arrange events to raise the profile of the organization or lend its brand and
name to a charitable event that represents the philosophy of the company. Think of a corporation sponsoring a
Special Olympics event, or a hospital organizing a health outreach day in its town.

Direct marketing
Direct marketing is a channel-agnostic form of advertising which allows businesses and nonprofit
organizations to communicate straight to the customer, with advertising techniques that can include cell phone
text messaging, email, interactive consumer websites, online display ads, database marketing, fliers, catalog ...

Direct marketing is a channel-agnostic form of advertising which allows businesses and nonprofit organizations to
communicate straight to the customer, with advertising techniques that can include cell phone text messaging, email, interactive
consumer websites, online display ads, database marketing, fliers, catalog distribution, promotional letters, targeted television
commercials, response-generating newspaper/magazine advertisements, and outdoor advertising. Amongst its practitioners, it is
also referred to as Direct Response.

Direct marketing messages emphasize a focus on the customer, data, and accountability. Hence, besides the actual
communication, creation of actionable segments, pre- and post-campaign analytics, and measurement of results, are integral to
any good Direct Marketing campaign. Characteristics that distinguish direct marketing are:




A database of names (prospects, customers, businesses, etc.), often with certain other relevant information such as
contact number/address, demographic information, purchase habits/history, company history, etc., is used to develop a list
of targeted entities with some existing common interests, traits or characteristics. Generating such a database is often
considered part of the Direct Marketing campaign.
Marketing messages are addressed directly to this list of customer and/or prospects. Direct marketing relies on being
able to address the members of a target market. Addressability comes in a variety of forms including email addresses,
phone numbers, Web browser cookies, fax numbers and postal addresses.



Direct marketing seeks to drive a specific "call to action." For example, an advertisement may ask the prospect to call
afree phone number, mail in a response or order, or click on a link to a website.



Direct marketing emphasizes trackable, measurable responses, results and costs from prospects and/or customers—
regardless of medium.

Direct marketing is practiced by businesses of all sizes—from the smallest start-up to the leaders on the Fortune 500. A wellexecuted direct advertising campaign can prove a positive return on investment by showing how many potential customers
responded to a clear call-to-action. General advertising eschews calls-for-action in favor of messages that try to build prospects’
emotional awareness or engagement with a brand. Even well-designed general advertisements rarely can prove their impact on
the organization’s bottom line. The demonstrable result of Direct Marketing is the reason for its increasing popularity.

Forms of Direct Marketing


Personal selling direct marketing



Direct-mail direct marketing



Catalog direct marketing



Telephone marketing



Direct-response television marketing



Kiosk marketing



Digital direct marketing



Online marketing
Forms of Direct Marketing

Direct-mail marketing involves an offer, announcement, reminder, or other item to a person at a particular
address


Personalized



Easy-to-measure results



Costs more than mass media



Provides better results than mass media

Forms of Direct Marketing
Benefits of Web-based catalogs


Lower cost than printed catalogs



Unlimited amount of merchandise



Real-time merchandising



Interactive content



Promotional features

Challenges of Web-based catalogs


Require marketing



Difficulties in attracting new customers

Forms of Direct Marketing
Telephone direct marketing involves using the telephone to sell directly to consumers and business customers


Outbound telephone marketing sells directly to consumers and businesses



Inbound telephone marketing uses toll-free numbers to receive orders from television and print ads,
direct mail, and catalogs

Forms of Direct Marketing
Benefits of telephone direct marketing


Purchasing convenience



Increased product service and information

Challenges of Web-based catalogs


Unsolicited outbound telephone marketing



Do-Not-Call Registry

Forms of Direct Marketing
Direct-response television (DRTV) marketing involves 60- to 120-second advertisements that describe
products or give customers a toll-free number or Web site to purchase and 30-minute infomercials such as home
shopping channels


Less expensive than other forms of promotion



Easier to track results

Forms of Direct Marketing
Kiosk marketing involves placing information and ordering machines in stores, airports, trade shows, and
other locations
Forms of Direct Marketing
Digital direct marketing technologies


Mobile phone marketing



Podcasts



Vodcasts



Interactive TV

Forms of Direct Marketing

Mobile phone marketing includes:


Ring-tone giveaways



Mobile games



Ad-supported content



Contests and sweepstakes

Forms of Direct Marketing
Podcasts and Vodcasts involve the downloading of audio and video files via the Internet to a handheld device
such as a PDA or iPod and listening to them at the consumer’s convenience
Forms of Direct Marketing
Interactive TV (ITV) lets viewers interact with television programming and advertising using their remote
controls and provides marketers with an interactive and involving means to reach targeted audiences
 Online Marketing
Marketing and the Internet
Internet is a vast public web of computer networks that connects users of all types around the world to each
other and to a large information repository
 Online Marketing
Online Marketing Domains


Business to consumer (B2C)



Business to business (B2B)



Consumer to consumer (C2C)



Consumer to business (C2B)

Online Marketing
Online Marketing Domains
Business to consumer (B2C) involves selling goods and services online to final consumers
Business to business (B2B) involves selling goods and services, providing information online to businesses,
and building customer relationships
Online Marketing
Online Marketing Domains
Consumer to consumer (C2C) occurs on the Web between interested parties over a wide range of products and
subjects


Blogs


Offer a fresh, original, and inexpensive way to reach fragmented audiences



Difficult to control

Online Marketing
Online Marketing Domains
Consumer to business (C2B) involves consumers communicating with companies to send suggestions and
questions via company Web sites
Online Marketing
Types of Online Marketers


Click-only marketers



Click-and-mortar marketers
Online Marketing

Types of Online Marketers
Click-only marketers operate only online without any brick and mortar presence


E-tailers



Search engines and portals



Shopping or price comparison sites



Internet service providers (ISP)



Transaction sites



Content sites
Online Marketing

Types of Online Marketers
E-tailers are dot coms that sell products and services directly to final buyers via the Internet


Amazon



Expedia

Search engines and portals are ports of entry to the Internet


Yahoo!



Google

Online Marketing
Types of Online Marketers
Internet service providers (ISP) provide Internet connections for a fee


AOL



Earthlink

Shopping or price comparison sites provide product and price comparison information



Yahoo! Shopping
Online Marketing

Types of Online Marketers
Transaction sites take commissions for transactions on their sites


eBay

Content sites provide financial, news, research, and other information


New York Times.com



ESPN.com
Online Marketing

Types of Online Marketers
Click-and-mortar companies are brick-and-mortar companies with an online presence
Advantages of click and mortar companies include:


Known and trusted brand names



Strong financial resources



Large customer bases



Industry knowledge



Reputation



Strong supplier relationships



More options for customers
Online Marketing

Setting Up an Online Presence
Creating a Web site requires designing an attractive site and developing ways to get consumers to visit the site,
remain on the site, and return to the site
Online Marketing
Setting Up an Online Presence
Types of sites


Corporate Web site



Marketing Web site

Online Marketing
Setting up an Online Presence
Corporate Web site is designed to build customer goodwill and to supplement other channels, rather than to
sell the company’s products directly to:


Provide information



Create excitement



Build relationships
Online Marketing

Setting Up an Online Presence
Marketing Web site is designed to engage consumers in interaction that will move them closer to a direct
purchase or other marketing outcome
Online Marketing
Designing Effective Web Sites
To attract visitors, companies must:


Promote in offline promotion and online links



Create value and excitement



Constantly update the site



Make the site useful
Online Marketing

Designing Effective Web Sites
The seven Cs of effective Web site design
1. Context
2. Content
3. Community
4. Customization
5. Communication
6. Connection
7. Commerce
Online Marketing
Designing Effective Web Sites
Context is the site’s layout
Content is the site’s pictures, sound, and video
Community is the site’s means to enable user-to-user communication
Customization is the site’s ability to tailor itself to different users or to allow users to personalize the site
Online Marketing
Designing Effective Web Sites
Communication is the way the site enables user-to-user, user-to-site, or two-way communication
Connection is the degree that the site is lined to other sites

Commerce is the site’s capabilities to enable commercial transactions
Online Marketing
Designing Effective Web Sites
The eighth C
To keep customers coming back, the site needs to constantly change
Online Marketing
Placing Ads and Promotions Online
Forms of online advertising


Display ads



Search-related ads



Online classifieds
Online Marketing

Placing Ads and Promotions Online
Display ads


Banners are banner-shaped ads found on a Web site



Interstitials are ads that appear between screen changes



Pop-ups are ads that suddenly appear in a new window in front of the window being viewed



Rich media ads incorporate animation, video, sound, and interactivity
Online Marketing

Placing Ads and Promotions Online
Search-related ads are ads in which text-based ads and links appear alongside search engine results on sites
such as Google and Yahoo! and are effective in linking consumers to other forms of online promotion
Online Marketing
Placing Ads and Promotions Online
Other forms of online promotion include:


Content sponsorships



Alliances



Affiliate programs



Viral advertising
Online Marketing

Placing Ads and Promotions Online
Content sponsorships provide companies with name exposure through the sponsorship of special content such
as news or financial information
Alliances and affiliate programs are relationships where online companies promote each other

Viral marketing is the Internet version of word-of-mouth marketing and involves the creation of a Web site, an
e-mail message, or another marketing event that customers pass along to friends
Online Marketing
The Future of Online Advertising
Online advertising provides a useful purpose as a supplement to other marketing efforts and is playing an
increasingly important role in the marketing mix
Online Marketing
Creating or Participating in Web Communities
Web communities allow members to congregate online and exchange views on issues of common interest


iVillage.com



MyFamily.com

Online Marketing
Using E-mail
Marketers are developing enriched messages that include animation, interactivity, and personal messages with
streaming audio and video to compete with the cluttered e-mail environment
Integrated Direct Marketing
Integrated direct marketing involves the use of carefully coordinated multiple-media, multiple-stage
campaigns
Public Policy Issues in Direct Marketing


Customer irritation, unfairness, deception, and fraud



Privacy



Security

Public Policy Issues in Direct Marketing
Irritation, Unfairness, Deception, and Fraud
Irritation includes annoying and offending customers
Unfairness includes taking unfair advantage of impulsive or less-sophisticated buyers
Deception includes “heat merchants” who design mailers and write copy designed to mislead consumers
Internet fraud includes identity theft and financial scams
Public Policy Issues in Direct Marketing
Invasion of Privacy
The concern is that markers may know too much about consumers and use this information to take unfair
advantage


Sale of databases



Microsoft

Public Policy Issues in Direct Marketing
A Need for Action


California Online Privacy Protection Act (OPPA)



Children’s Online Privacy Protection Act (COPPA)



TRUSTe

What is Ecommerce?
The high rate of growth of business carried over Internet has made it synonymous with the whole phenomenon
of E-commerce. Electronic commerce is the new term for existing activities being done in new ways. As long as
communication networks have been available, they have been used to their fullest capability by entrepreneurs to
create business opportunities. Most prominently, the meteoric rise of the Internet and the World Wide Web has
accelerated the transformation of global commerce, allowing for instantaneous, inexpensive contacts among
sellers, buyers, investors, advertisers, and financers throughout the world. The rapid integration of the Internet
and other telecommunications based functions nearly into every sphere of business is what has given rise to the
recent international focus on the new world of Electronic commerce.
Understanding the concepts
Electronic commerce is a much broader term encompassing not only EDI but also other forms of
communication, such as E-mail and Electronic bulletin boards. EDI was primarily developed for high volume
exchange of commercial documents in standardized electronic format over an electronic public network
between the automated business processes of trading partners. E-mail, on the other hand, is the exchange of less
structured correspondence in electronic format.
e business, or e-business, is the application of information and communication technologies (ICT) in support of
all the activities of business. Commerce constitutes the exchange of products and services between businesses,
groups and individuals and can be seen as one of the essential activities of any business. Electronic commerce
focuses on the use of ICT to enable the external activities and relationships of the business with individuals,
groups and other businesses or e business refers to business with help of internet i.e. doing business with the
help of internet network.[1] The term "e-business" was coined by IBM's marketing and Internet teams in 1996

Define the term 'marketing planning'. Outline the steps involved in marketing
planning process.
Answer
Marketing is a process of developing and implementing plans to identify and satisfy customer needs and wants
with the objective of customer satisfaction and profits making. The main elements of marketing planning are market research to identify and anticipate customer needs and wants; and planning of appropriate marketing
mix to meet market requirements/demands.
Definition of Marketing Planning
"Marketing Planning is the process of developing marketing plan incorporating overall marketing objectives,
strategies, and programs of actions designed to achieve these objectives."
Marketing Planning involves setting objectives and targets, and communicating these targets to people
responsible to achieve them. It also involves careful examination of all strategic issues, including the business
environment, the market itself, the corporate mission statement, competitors, and organisational capabilities.
Marketing Planning Process
Marketing planning process is a series of stages that are usually followed in a sequence. Organisations can adapt
their marketing plan to suit the circumstances and their requirements. Marketing planning process involves both
the development of objectives and specifications for how to achieve the objectives. Following are the steps
involved in a marketing plan.
1) Mission
Mission is the reason for which an organisation exists. Mission statement is a straightforward statement that
shows why an organisation is in business, provides basic guidelines for further planning, and establishes broad
parameters for the future. Many of the useful mission statements motivates staff and customers.
2) Corporate Objectives
Objectives are the set of goals to be achieved within a specified period of time. Corporate objectives are most
important goals the organisation as a whole wishes to achieve within a specified period of time, say one or five
years.
All the departments of an organisation including marketing department works in harmony to achieve the
corporate objectives of the organisation. Marketing department must appreciate the corporate objectives and
ensure its actions and decisions support the overall objectives of the organisation.
Mission statement and corporate objectives are determined by the top level management (including Board of
Directors) of the organisation. The rest of the steps of marketing planning process are performed by marketing
department. All the actions and decisions of the marketing department must be directed to achieve organisation
mission and its corporate objectives.
3) Marketing Audit
Marketing audit helps in analysing and evaluating the marketing strategies, activities, problems, goals, and
results. Marketing audit is done to check all the aspects of business directly related to marketing department. It
is done not only at the beginning of the marketing planning process but, also at a series of points during the
implementation of plan. The marketing audit clarifies opportunities and threats, so that required alterations can
be done to the plan if necessary.
4) SWOT Analysis
The information gathered through the marketing audit process is used in development of SWOT Analysis. It is a
look at organisation's marketing efforts, and its strengths, weaknesses, opportunities, and threats related to
marketing functions.

Strengths and Weaknesses are factors inside the organisation that can be controlled by the organisation.
USP of a product can be the example of strength, whereas lack of innovation can be the example of weakness.

Opportunities and Threats are factors outside the organisation which are beyond the direct control of
an organisation. Festive season can be an example of opportunity to make maximum sales, whereas increasing
FDI in a nation can be the example of threat to domestic players of that nation.
5) Marketing Assumptions
A good marketing plan is based on deep customer understanding and knowledge, but it is not possible to know
everything about the customer, so lot of different things are assumed about customer.
For example :
Target Buyer Assumptions - assumptions about who the target buyers are.

Messaging/Offering Assumptions - assumptions about what customers think are the most important
features of product to be offered.
6) Marketing Objectives and Strategies
After identification of opportunities and challenges, the next step is to develop marketing objectives that
indicate the end state to achieve. Marketing objective reflects what an organisation can accomplish through
marketing in the coming years.


Objective identify the end point to achieve. Marketing strategies are formed to achieve the marketing
objectives. Marketing strategies are formed to determine how to achieve those end points. Strategies are broad
statements of activities to be performed to achieve those end points.
7) Forecast the Expected Results
Marketing managers have to forecast the expected results. They have to project the future numbers,
characteristics, and trends in the target market. Without proper forecasting, the marketing plan could have
unrealistic goals or fall short on what is promised to deliver.

Forecasting Customer Response - Marketing managers have to forecast the response that the average
customers will have to marketing efforts. Without some idea how the marketing will be received, managers can't
accurately plan the promotions.

Forecasting Marketing cost - To make the marketing plan stronger, accurate forecast of marketing cost
is required to be done.

Forecasting the Market - To accurately forecast the market, marketing managers have to gain an
intimate understanding of customers, their buying behaviour, and tendencies.

Forecasting the Competition - Forecast of competition like - what they market, how they market, what
incentives they use in their marketing can help to counter what they are doing.
8) Create Alternative Plan
A alternate marketing plan is created and kept ready to be implement at the place of primary marketing plan if
the whole or some part of the primary marketing plan is dropped.
9) Marketing Budget
The marketing budget is the process of documenting the expected costs of the proposed marketing plan. One
common method to allocate marketing budgeting is based on a percentage of revenue. Other methods are
- comparative, all you can afford, and task method.
10) Implementation and Evaluation
At this stage the marketing team is ready to actually start putting their plans into action. This may involve
spending money on advertising, launching new products, interacting with potential new customers, opening new
retail outlets etc.
The marketing planning process is required to be evaluated and updated regular. Regular evaluation of
marketing efforts helps in achieving marketing goals.
What Is A Marketing Audit?

A marketing audit is a comprehensive, systematic, independent and periodic evaluation of a company's
marketing assets. It is a effective tool in reviewing the competence of a marketing strategy, analyzing the
objectives, policies and strategies of the company's marketing department as well as the manner and the
means employed in attaining these goals.
Because of the constantly varying business environment, marketing audit is frequently required, not only at
the beginning of the planning process, but along with the implementation stage, providing also ground for
evaluating possible future courses of action.
Marketing audit on a regular basis is a strong reference point, reflecting evolution in external business
environment,
internal
experience
and
strategy
development.
The marketing audit focuses on three key headings:




The external marketing environment
The internal marketing environment
Evaluation on the current marketing plan

External environment consists of economic, political and legal factors and concentrates on clients and
competition.
Marketing audit of the external surroundings analyses the customers, their needs and how to meet them, their
behavior and decisions, perception of products and brands, segmentation, targeting and positioning on the
market. The nature of competition is also studied, concerning its concentration, profitability, strengths and
weaknesses, plans and strategies. New entrants on the market are also studied as well as the substitute
products, the influence of supplier.
The cultural nature of the external environment consists of education levels and standards, religion and
beliefs, as well as lifestyle and customs. Demography plays a key role in marketing audit of the consumers,
reflecting on growth distribution, age, evolution of technology and information systems as well as marketing
communication and media. The external economic conditions consist of indicators as unemployment rates,
inflation levels, interest rates, economic growth, taxation and average disposable income. Political and legal
landscaping concern laws, regulations, minimum levels of taxes or wages and maximum levels of prices or
quotas.
Internal environment focuses on the resources the company has at hand as labor, finance, equipment, time
and other factors of production. It also analyses the marketing team concerning structure, efficiency,
effectiveness, correlation with internal functions and other organizations. The internal marketing planning
process, it's accuracy and actuality, the product portfolio, new products, pricing and distribution are areas the
marketing internal audit is concerned in. It also focuses on market share, sales, profit margins, costs and
effectiveness of marketing mix.
The marketing audit studies also the current marketing plan, focused on objectives, strategies and the
marketing mix used to achieve these goals. It also evaluates budgeting, staffing, training , developing,
experience and learning. The current marketing plan concerns also the market share, financial targets as
profit and margins, cash flow, debt and other indicators that need to be balanced.
There are several approaches that can be used, for example SW OT analysis for the internal environment, as
well as the external environment. Other examples include PEST(political-economic-social-technological)
and Five Forces Analyses, which focus solely on the external environment. Using SWOT a company lists its
advantages and disadvantages, strengths and weaknesses compared to its competitors or similar products
providers. It also includes an analysis of the external factors that could help or hinder company's chance of
success, as well as an evaluation of internal practices and operations.
A five force analysis is similar to SWOT, but is used to evaluate an individual product or business rather than
an entire marketing strategy. Using this approach, the study reviews similar subjects covered in a SWOT
analysis, eventually dividing the results in five groups labeled as following :



Power of buyer
Threat of entry





Competitive rivalry
Power of suppliers
Threat of substitutes.

Political-economic-social-technological (PEST) is another audit study also known as a STEP (change in the
order of letters) study. This audit focuses mainly on the factors influencing the external environment, usually
factors out of company's internal control. This study analyses political climate, economic growth, social
environment and technological evolution in the area where the product will be delivered. Its similarity to
SWOT consists of dividing these results in opportunity and threats.
In conclusion, a marketing audit does not necessarily audit the current activity of the business, but reviews
all the areas that are crucial to the success of the company ,both internal and external and tries to align these.
Only considering these results and using them in planning the next marketing strategy, a business can grow
and become stronger.
Explain the Characteristics of Marketing Audit
The eight important characteristics of marketing audit are depicted below.
The salient features or characteristics of marketing audit are as follows:
1.
Marketing audit is a comprehensive study of all marketing activities.
2.
It is a systematic-process that follows a step-by-step procedure.
3.
It is a periodic activity and must be conducted regularly.
4.
It is conducted by an independent person who is not from company.
5.
It is a critical review of marketing activities of company.
6.
It is an evaluation of marketing activities of company.
7.
It finds out marketing opportunities and weaknesses of company.
8.
It is a preventative and curative marketing medicine.
Now let's briefly discuss or explain each characteristic of marketing audit.
1. Comprehensive study
Marketing audit is a comprehensive or complete study of all the marketing activities of company. It studies the
marketing environment, marketing objective, marketing plans, policies and strategies, etc.
2. Systematic process
Marketing audit is a systematic process. It follows a step-by-step procedure.
1.
It studies marketing environment.
2.
It studies the internal marketing system.
3.
It examines the marketing activities.
4.
It finds out the problems.
5.
It makes an action plan to remove the problems.
The main aim of marketing audit is to improve the effectiveness of marketing.
3. Periodic activity
A company must conduct a marketing audit regularly or periodically. It must conduct the marketing audit even
if it has no problems. This is because it helps the company to analyze the post performance and to make future
marketing strategies.
A company must not conduct a marketing audit only if it has problems or when it suffers a loss. It must be a
compulsory and not an optional activity.
Marketing audit is like a postmortem of failure.
4. Independently conducted
Marketing audit is independent. That is, it is conducted by an autonomous person. It is not conducted by a
person who is working in the marketing department. Mostly, it is conducted by an outside agency.

5. Critical review of marketing activities
Marketing audit is a critical review of marketing activities of the company. It finds out the defects, deficiencies,
problems and weakness in company's marketing activities. It also gives suggestions about how to remove these
defects or deficiencies.
6. Evaluates marketing activities
Marketing audit is an explanation or evaluation of marketing activities of company. It evaluates company's
objective, plans, policies, programs, etc.
7. Finds out opportunities and weaknesses
Marketing audit finds out the marketing opportunities and weakness of the company. It helps the company to
take advantage of the marketing objectives. It also helps the company to remove all its weakness.
8. Preventative and curative marketing medicine
Marketing audit is a preventative and curative marketing medicine. It prevents marketing problems. It also cures
(solves) marketing problems.
COMPONENT OF THE MARKETING AUDIT
Marketing audit should start with the market place at beginning and should explore the changes that are
happening in the marketplace. Then the marketing audit will move to examine the company‟s marketing
objectives and strategies, organization and systems. The marketing auditor may move to examine one or two
key functions in more detail that are important to the marketing performance of the company. The marketing
audit follows the following areas as components of marketing audit:
1. Environmental Audit
2. Macro Environmental Audit
3. Task Environmental Audit
4. Marketing Strategy Audit
5. Marketing Organization Audit
6. Marketing System Audit
7. Marketing Productivity Audit
8. Marketing Functions Audit
1. MARKETING ENVIRONMENT AUDIT
The auditor is firstly started their audit by looking at the factors that affect all companies operating in
marketplace, and also looking at their customers and their profits. Under marketing environment audit,
following two environments are concerned, because these are very important under the marketing audit.
THE MACRO-ENVIRONMENT
The Macro-environmental component examines six main areas, the detail depending on the involvement of the
business and involvement required by the industry. Under marketing audit, the macro environment covers some
environmental factors, like, Demographics – major demographic developments and trends pose opportunities,
Economical factors - developments in income, prices, savings and credit will affect the company under that,
Environmental factors, Technological factors - changes occurring in product and process technology and
company's position in these technologies, Political factors - changes in laws and regulations might affect

marketing strategy and tactics and the changes in the areas of pollution control, equal employment opportunity,
product safety, advertising, price control, that affects the marketing strategy of company, Cultural - public's
attitude towards business and toward the company's products and changes in customer lifestyles and values
might affect the company,
THE TASK ENVIRONMENT
How competitive is the marketplace? What are competitors doing, and are they doing it well? What might they
be preparing to do? These are all vital to understand in preparing yourselves for the battle. The task environment
audit is evaluated under Markets - market size, growth, geographical distribution and profits and major market
segments, under customers - customers' needs and buying processes and also product quality, service, sales
force and price, Competitors, Distribution & dealers, Suppliers, Facilitators & marketing firms and Publics.
2. MARKETING STRATEGY AUDIT
The marketing strategy audit is vital for company, and the marketing audit is make sure that the company’s
marketing strategy is fit with company’s marketing goals and objectives as well as corporate goals and
objectives. Under the marketing strategy audit, the auditor evaluate marketing performance by evaluating
marketing goals and objectives, company mission the move to the strategy of organization. Under strategy
evaluation, the auditor may concern following type of questions:
Has the management articulated a clear marketing strategy for achieving its marketing objectives?
Is the strategy convincing?
Is the company using the best basis for market segmentation?
Does the company have clear criteria for rating the segments?
Has the company developed an effective positioning and marketing mix for each target segment?
3. MARKETING ORGANIZATION AUDIT
The marketing organization audit is mainly considered effectiveness of the organization activities as well as
efficiency of operation of company. Here all the activities and main management functions are considered such
as manufacturing, purchasing, financing as well as research and development. Here the marketing auditor must
make sure that the company is actually achieved the effectiveness within the organization and also within the
marketplace. And also following types of questions are considered by marketing auditors:
Are there good communications and working relations between marketing and sales?
Is the product-management system working effectively?
Are product managers able to plan profits or only sales volumes?
4. MARKETING SYSTEM AUDIT
Here the marketing auditor is considered whether the company is using appropriate marketing systems to collect
the information, plan the activities, control the operations and to maintain smoothly their day to day activities
and whether these systems are properly worded within the company or not. Those are the main things, the
marketing auditor must consider under marketing systems audit. Most of the organizations are today having
different type of marketing systems to collect the information and control the operation. Such as marketing
information systems, marketing planning systems, marketing control systems and new product development
systems. These systems have its own functions. Here the marketing auditor task is to make sure whether the
systems are properly worked or not.

5. MARKETING PRODUCTIVITY AUDIT

Most of the companies are operating to earn so much of profits. The marketing productivity audit is focused on
evaluate the company profits and revenue. So the marketing productivity audit is very important to evaluate the
marketing performance. The marketing auditor is used profitability analysis and cost effectiveness analysis for
their evaluation process. Under the marketing productivity audit, following type question asked by marketing
auditor: What is the profitability of the company's different products, markets, territories and channels of
distribution? Should the company enter, expand, contract or withdraw from any business segments?
Do any marketing activities seem to have excessive costs?
Can cost-reducing steps be taken?
6. MARKETING FUNCTION AUDIT
Under the marketing function audit, the auditor is using marketing mix elements to analyze company functions
such as product, price, place and promotion. Here marketing auditor evaluates marketing performance by asking
questions under product, price, place and promotion such as
What are the company's product-line objectives?
Which products should be phased out?
Which products should be added to?
What are the company's pricing objectives, policies, strategies and procedures?
To what extent are the prices set on cost, demand and competitive criteria?
Do the customers see the company's prices as being in line with the value of its offer?
What is the organization’s advertising objectives?
Is there adequate market coverage and service?
Should the company consider changing its distribution channels?
Is the right amount being spent on advertising?
What do customers and the public think about the advertising?

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