Promotion Mix: Advertising, Sales Promotion, Personal Selling and Public Relations Questions

Question 1

Define promotion.

Accepted Answer

Promotion is communication used by a firm to inform, persuade and remind customers about its products and influence buying behaviour.

Question 2

What is promotion mix?

Accepted Answer

Promotion mix is the combination of promotional tools like advertising, sales promotion, personal selling and PR used by a firm.

Question 3

Define advertising.

Accepted Answer

Advertising is paid, non-personal communication of ideas/products by an identified sponsor through mass media.

Question 4

What is sales promotion?

Accepted Answer

Sales promotion is short-term incentives offered to encourage immediate purchase (discounts, coupons, free samples).

Question 5

What is personal selling?

Accepted Answer

Personal selling is face-to-face communication between salesperson and customer to make a sale and build relationships.

Question 6

What is public relations (PR)?

Accepted Answer

Public relations is building good relations and a positive image with various publics through credible communication.

Question 7

State objectives of promotion (any three).

Accepted Answer

Objectives of promotion (any three):
1) Informing: create awareness about product, price, features and availability.
2) Persuading: convince customers, build preference and encourage switching.
3) Reminding: keep brand in mind and encourage repeat purchase.

Promotion also helps build brand image and supports salesforce and channel partners.

Question 8

Differentiate between advertising and sales promotion.

Accepted Answer

Advertising vs sales promotion:

- Nature: Advertising is paid non-personal communication; sales promotion is short-term incentive.
- Objective: Advertising builds awareness and brand image (longer-term); sales promotion boosts immediate sales (short-term).
- Examples: Advertising—TV/social media ads; Sales promotion—coupons, discounts, BOGO, free samples.

Both are important but used for different purposes.

Question 9

Explain sales promotion tools with examples (any three).

Accepted Answer

Sales promotion tools (any three) are:
1) Coupons/discounts: price reduction to encourage purchase.
2) Free samples: trial to reduce risk and attract new users.
3) BOGO/bonus packs: extra quantity to increase value perception.
4) Contests and gifts: increase interest and engagement.

Trade promotions include dealer incentives and display allowances.

Question 10

Explain the personal selling process (steps).

Accepted Answer

Personal selling process includes:
1) Prospecting and qualifying
2) Pre-approach (collect information)
3) Approach (first contact)
4) Presentation and demonstration
5) Handling objections
6) Closing the sale
7) Follow-up and service

These steps help convert prospects into satisfied customers and build relationships.

Question 11

Explain public relations (PR) and mention any three PR tools.

Accepted Answer

Public relations (PR) is managing communication and relationships with different publics to build goodwill and a positive image.

PR tools (any three):
1) Press releases and media relations
2) Events and sponsorships
3) CSR activities
4) Newsletters and corporate publications
5) Crisis communication

PR has high credibility and supports long-term reputation.

Question 12

Differentiate between push and pull promotion strategies.

Accepted Answer

Push vs Pull:

Push strategy: focuses on intermediaries (wholesalers/retailers) using salesforce and trade promotions to push product through channel.

Pull strategy: focuses on final consumers using advertising and consumer promotions to create demand so customers pull product from retailers.

Choice depends on product type, market and channel structure.

Question 13

Explain promotion mix and discuss the roles of advertising, sales promotion, personal selling and PR in detail.

Accepted Answer

Promotion mix is the combination of promotional tools used to communicate value to customers and influence buying behaviour. The main tools are advertising, sales promotion, personal selling and public relations (PR).

1) Advertising
- Paid, non-personal communication through mass media.
- Role: creates awareness, builds brand image, supports positioning, reaches large audience quickly.
- Limitation: costly, weak feedback, less persuasive than personal selling for complex products.

2) Sales promotion
- Short-term incentives like discounts, coupons, free samples, gifts, contests.
- Role: provides immediate buying reason, clears stock, attracts new users, supports dealers.
- Limitation: may encourage deal-prone customers and reduce brand value if overused.

3) Personal selling
- Face-to-face communication; two-way interaction.
- Role: best for high-value and B2B products; explains features, handles objections, builds relationships and service support.
- Limitation: high cost per contact and limited reach.

4) Public relations (PR)
- Building goodwill and credibility with publics through press releases, events, CSR, crisis management.
- Role: high credibility, long-term image building, helpful during crisis.
- Limitation: less control over media coverage compared to advertising.

Thus, a good promotion mix balances these tools based on objective, budget and target market.

Question 14

Explain push and pull strategies with examples. Which one is suitable for (a) FMCG and (b) industrial products?

Accepted Answer

Push and pull are two approaches to promotion and channel support.

1) Push strategy
- Focus: intermediaries (distributors, wholesalers, retailers).
- Tools: personal selling, trade promotions, dealer incentives, margins and display schemes.
- Example: company gives retailer incentives and salesforce pushes product to stores.

2) Pull strategy
- Focus: final consumers.
- Tools: advertising, consumer promotions, brand campaigns to create demand.
- Example: heavy advertising makes customers ask retailers for the brand.

Suitability:
(a) FMCG: often uses both, but pull is important because mass advertising creates demand, while push ensures availability at outlets.
(b) Industrial products (B2B): push is more suitable because purchases are high involvement, require technical explanation and negotiations; personal selling is key.

In practice, firms combine both strategies depending on product and market.

Question 15

Explain Integrated Marketing Communication (IMC). State its benefits and give an example of IMC in practice.

Accepted Answer

Integrated Marketing Communication (IMC) means coordinating all promotional tools and channels so that customers receive a clear, consistent and compelling brand message. Instead of separate, unconnected campaigns, IMC aligns advertising, sales promotion, PR, salesforce and digital communication.

Benefits of IMC:
1) Consistency: reduces confusion and strengthens brand identity.
2) Better impact: message repetition across channels improves recall and persuasion.
3) Efficient budget use: avoids duplication and improves ROI of promotion spending.
4) Stronger customer experience: same promise is delivered in ads, packaging, website and sales interaction.
5) Supports long-term brand building: helps create trust and loyalty.

Example:
A smartphone brand launches a campaign where TV/social ads highlight camera quality, influencer reviews show real photos, retail stores display the same message, PR articles cover product launch, and customer support communicates the same brand promise.

Thus, IMC ensures all communications work together to build a strong brand.

Promotion Mix: Advertising, Sales Promotion, Personal Selling and Public Relations

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