ANALYSIS OF ADVERTISING AND

SALES PROMOTION STRATEGIES

SUBMITTED BY:

ANUJ GARG
REGISTRATION NO.: 201407697
PROGRAMME NAME: Post Graduate Diploma in Marketing

SYMBIOSIS CENTRE FOR DISTANCE LEARNING

2014-2016
 DECLARATION BY THE LEARNER

This is to declare that I have carried out this project work myself in part fulfillment of the
PGDBA (Marketing) Programme of SCDL.

The work is original, has not been copied from anywhere else and has not been submitted
to any other University/Institute for an award of any degree/diploma.

Date: Signature:

Place: Anuj Garg

i
 CERTIFICATE OF SUPERVISOR (GUIDE)

Certified that the work incorporated in this Project Analysis of Advertising and Sales
Promotion Strategies submitted by Anuj Garg is his original work and completed under
my supervision. Material obtained from other sources has been duly acknowledged in the
Project Report.

Date: Signature:

Place: Prasun Newar

(Sales & Marketing)

ii
 ACKNOWLEDGEMENT

Compiling this project has been a long process. But, the most difficult part is to thank all
those people who have extended unstinted support to me in many ways. I find it very tough
to do so in these few words...Nevertheless. I express my gratitude from within my
heart.

No words can express how grateful I am to Mr. Prasun Newar. His guidance, attention to
detail, friendly demeanor & ability to motivate has helped me professionally, academically
& personally.

I also express my thanks to all my friends and family members who have helped me to
complete this study.

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 EXECUTIVE SUMMARY

The dynamic development of classic forms of advertising has been accompanied by

equally aggressively growth of alternative forms of promotion and advertising. Belch&
Belch prove that indeed promotion and advertising have confirmed their essential part in
the economic and social life by pointing out the growing expenditure in those areas. In
1980, advertising expenditures in the United States were $53 billion, and $49 billion was
spent on sales promotion techniques such as product samples, coupons, contests,,
sweepstakes, premiums, rebates and allowances and discounts to retailers. By 2000, an
estimated $174 billion was spent on local and national advertising, while sales promotions
expenditures increased to more than $200 billion. Companies bombarded the Indian
consumer with messages and promotional offers, collectively spending more than $12 a
week on every man, woman, and child in the county nearly 50 percent more per capita
than any other nation. Promotional expenditures in international markets have grown as
well. Advertising expenditures outside the United States increased from $55 billion in 1980
to nearly $220 billion in 2000.

The breakdown of expenditure shows at least a few significant trends in advertising: a) the
growing demand on Above the Line (TV, radio, print) media advertising has made it
prohibitively expensive (and therefore inaccessible) to many, particularly smaller
companies which, as a consequence have been trying to find, new, novel, less
expensive ways of advertising, b) the advertising clutter on the ATL media has pushed and
inspired other promotion techniques (such as sampling etc.) However, consumers have got
used to those techniques as well arid are demanding more and newer offers from
producers, thus bringing up the costs, c) medium size and small companies increasingly
have to invent new, creative and original ways of promoting themselves and advertising.
Specialty advertising, which has been defined by as A medium of advertising, sales
promotion, and motivational communication employing imprinted, useful, or decorative
products called advertising specialties, a subset of promotional products. Unlike premiums,
with which they are sometimes confused (called advertising specialties), these articles are
always distributed free recipients dont have to earn the specialty by making a purchase
or contribution. According to Belch & Belch there are over 15,000 advertising specialty
products (ballpoint pens, caps, t-shirts, coffee mugs, office items, car items and hundreds

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more); Creativity is a type of inventiveness. The objective of the inventive actions used by
advertisers is to remove the official government or governing body by sudden, unexpected
attacks, in small groups. Advertising along parallel lines may be thus compared to a
strategy based achieving conventional goals through unconventional methods.

Advertising may be defined as a strategy which focuses on communicating the desired

message through ingenious, yet minimizing the cost methods. The stress is on cost-
effectiveness. As a very cost conscious technique it is suitable to small businesses rather
than large companies with a particular image to keep. It has been, however, applied by
companies, whose products cannot be advertised due to government regulations or who
face serious restrictions and limitations due to law, local rules and media policies, such as
tobacco and alcohol.

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 TABLE OF CONTENTS

i) Declaration by the Learner..................................................................................................i

ii) Certificate by the Supervisor.............................................................................................ii

iii) Acknowledgment.............................................................................................................iii

iv) Executive Summary.........................................................................................................iv

Chapters Page No.

1. Introduction........................................................................................................................1

2. Objective and Scope.........................................................................................................17

3. Limitations.......................................................................................................................19

4. Theoretical Perspective....................................................................................................20

5. Methodology and Procedure of Work..............................................................................55

6. Analysis of Data...............................................................................................................59

7. Findings, Inferences and Recommendations....................................................................69

8. Conclusion........................................................................................................................71

9. Summary of the Project Report........................................................................................72

10. Questionnaire.................................................................................................................74

ANNEXURES

I) Proposal..............................................................................................................................II

II) References........................................................................................................................V

III) List of Figures, Charts, Diagrams..................................................................................VI

IV) List of Tables................................................................................................................VII

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 1. INTRODUCTION

Indian advertising sector:

The Indian advertising industry is talking business today. It has evolved from being a
small-scale business to a full-fledged industry. It has emerged as one of the major
industries and tertiary sectors and has broadened its horizons be it the creative aspect, the
capital employed or the number of personnel involved. Indian advertising industry in very
little time has carved a niche for itself and placed itself on the global map.

Indian advertising industry with an estimated value of es13, 200-crore has made jaws drop
and set eyeballs gazing with some astonishing pieces of work that it has given in the recent
past. The creative minds that the Indian advertising industry incorporates have come up
with some mind-boggling concepts and work that can be termed as masterpieces in the
field of advertising.

Advertising agencies in the country too have taken a leap. They have come a long way
from being small and medium sized industries to becoming well known brands in the
business. Mudra, Ogilvy and Mathew (O&M), Mccann Ericsonn, Rediffussion, Leo
Burnett are some of the top agencies of the country.

Indian economy is on a boom and the market is on a continuous trail of expansion. With
the market gaining grounds Indian advertising has every reason to celebrate. Businesses
are looking up to advertising as a tool to cash in on lucrative business opportunities.
Growth in business has lead to a consecutive boom in the advertising industry as well.

The Indian advertising today handles both national and international projects. This is
primarily because of the reason that the industry offers a host of functions to its clients that
include everything from start to finish that include client servicing, media planning, media
buying, creative conceptualization, pre and post campaign analysis, market research,
marketing, branding, and public relation services.

Keeping in mind the current pace at which the Indian advertising industry is moving the
industry is expected to witness a major boom in the times ahead. If the experts are to be
believed then the industry in the coming times will form a major contribution to the GDP.
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With al this there is definitely no looking back for the Indian advertising industry that is all
set to win accolades from the world over. Therefore for more information on Indian
advertising, advertising agencies, marketing and advertising or any related information
please visit www.exchange4media.com.

Figure 1: Indian Advertising and the Economy

History:

There has been a long tradition of advertising in India since the first newspapers published
in India in the 19th Century carried advertising. The first advertising agency was
established in 1905, B. Datram and Company, followed by The ndia-Advertising Company
in 1907, the Calcutta Advertising agency in 1909, S.H.Bensen in 1928, J. Walter
Thompson Associates through its Indian associate, Hindustan Thompson Associates in
1929, Lintas (Lever International Advertising Services) in 1939 and McCann Erikson in
1956. Advertising expenditure in the 1950s was estimated at $US 300,000 (Cutler et al,
1992). Under the more socialist political environment of the 1960s and 1970s there was
little incentive for companies to advertise because advertising was not tax deductible. In

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the 1970s there was a 58% growth in the number of registered agencies from 106 in 1969
to 168 in 1979, and this included a growth in Indian agencies. The first advertising
appeared on state television in 1976. With the opening of the economy in the 1980s there
was a growth in the number of alliances with multinational agencies and an expansion in
advertising though foreign network participation in agency ownership was limited. In 1987
Hindustan Thompson was affiliated to J. Walter Thompson. Lintas, the 2nd ranking
agency, held only 4% of its subsidiary, as did Ogilvie and Mather. Saatchi and
Saatchi/Compton had minority interests in Compton as did Lintas. A study done in 1984 of
the largest companies in India found that the ratio of advertising expenditure to sales had
risen from .64 in 1976, to .71 in 1980 to .74 in 1984. Foreign controlled corporations had
the dominant share of total advertising expenditure, and 80% of these were in the
consumer goods sectors. Advertising was very concentrated with the top 50 advertisers
accounting for 80% of the advertising spending and the top 10 advertisers made up 40% of
that figure, 32% of the total. The largest advertiser throughout the period was Hindustan
Lever, Rs.28.9 million (US$2.77 million) in 1976, Rs. 29.1 million (US$ 2.78 million) in
1980 and Rs. 80.9 million (US$ 7.4 million) in 1984 which was nearly 10% of the
advertising budget of the corporate sector companies selected in the study (figures based
on rate10.4Rs to US$1 in 1984, Crowther et al, 1984). Pharmaceutical companies were
also significant advertisers at this time. Advertising expenditure grew at nearly 15% a year
in the 1980s to reach $US 896 million by the end of the decade according to de Mooij.
There was a massive expansion in advertising in India in the mid 1990s and increased
competition among multinationals made big budgets a necessity. New entrants in the
market, for example Samsung, had to spend heavily to raise brand awareness. Another
figure from Zenith Media put expenditure in 1992 at US$415 million. Advertising
expenditure in 1996 was US$1052 million and in 2001 US$1748 million, with a slight dip
in 1998 after the Asian economic crisis (ibid). These increases are also reflected in per
capita growth in the 1990s, though expenditure is still very low compared to other
countries. In 1990 advertising expenditure per capita was US$.60c. In 2000 it had
increased to Rs.70.07 or US$1.55 per capita and by 2002 had reached US$2.1.

Advertising agencies:

The profile of advertising agencies in India changed dramatically in the 1990s. Prior to that
advertising was dominated by Indian agencies, but foreign agencies have increasingly

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come to dominate Indian advertising. In 1992-1993 11 of the top 20 Indian agencies were
affiliated with multinational agencies and those agencies were allowed to own stock in the
local companies since the early 1990s. In 1990 the key companies that were the top
advertisers in India were also the leading advertisers internationally: 1. Unilever 2. Procter
and Gamble 3. Nestle. In 1992-3 the monopoly of a small range of product categories was
associated with a few companies which dominated advertising. Hindustan Lever had a
major impact on the content of programming and the initiation of new programmes,
associated with their power as the major advertiser on television (Advertising Club of
Bombay Diary, 1994 quoted in Pashupati and Sengupta, 1996:172). 6 of the top 10
advertisers in 1992 were affiliated with Transnational Corporations, which was reflected an
accelerated erosion of local brands. In 1992 the top advertisers overall were (in descending
order): Hindustan Lever; Tatas; Godrej; Procter and Gamble; Parle; Colgate Palmolive;
Nestle; International Tobacco Corporation; Bajaj Auto; Philips In 1996-1997 over half of
the advertising expenditure came from multinational corporations. South Korean
companies are among the prominent new entries into the Indian marketplace. Procter and
Gamble and automobile companies are noticeably absent from the list of top companies.
The largest spender on advertising in 1995/96 was International Tobacco Corporation,
which is interesting given the restrictions on tobacco advertising on television. In 1996 the
top product category was still personal care products. The companies with the largest
advertising budgets in India were: International Tobacco Corporation (cigarette and
tobacco products); Hindustan Lever Ltd. (personal care); Videocon International
(electronics); Brook Bond Lipton, (diversified products); Colgate Palmolive (personal
care); Philips (electronics); Indexport (personal care); Hindustan Times (newspapers);
Godfrey Philips (cigarette and tobacco products); Nestle (food, dairy products). In 1999
there were about 400 advertising agencies in India employing about 18,000 people. 15 of
the top 20 advertising agencies have affiliations or joint ventures with foreign agencies
who are among the top international agencies and most of them are American in origin, 12
out of 15. In terms of market share foreign joint venture advertising agencies hold more
than 75% of the market, with wholly owned Indian agencies holding the balance. The
largest 25 agencies account for 75% of the total billings. In 1999 76% was the maximum
foreign ownership in advertising agencies. Over the decade there was also a growing
concentration of agencies.

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 Table 1: Indian Advertising Revenues by Select Media

The WPP group from London acquired a fifth local agency in 1997. Many companies
formed alliances with subsidiaries to avoid conflicts of interest with their client companies.
The advertising industry has expanded again rapidly in recent years. Growth was 23% in
2000-2001 and the top 5 agencies in 2000-2001 earned 47.2% of total revenue. Foreign
companies were seen to be initiating more aggressive advertising campaigns and recent
growth in advertising has been driven by television advertising, especially satellite
channels many of which are free-to-air which means they rely for their revenue on
advertising. Foreign brands are definitely impacting on local brands through competition
and takeovers. Some of the greatest competition is in the biggest advertising categories:
soap, detergents and soft-drinks. Procter and Gamble, Unilever and Colgate Palmolive are
competing for the soap and detergents market. Procter and Gamble has made a strategic
alliance with Godrej Soaps, the leading Indian maker of soaps and detergents. Coca Cola
and Pepsi are fiercely competing for the soft-drink market. Pepsi is a more successful
brand in India than Coca Cola which left in 1978 and returned in again 1993, when it
bought out Parle Indias largest soft drink company. Coca Cola bought out Thums Up,
another leading Indian brand, which gives it 61% of the market share. There is a definite
visible advertising war between Coca Cola and Pepsi, and billboards in the countryside
promote their products at prices cheaper than anywhere else in the world, 5 Rs for 200ml is
about 10c. Both companies are increasingly targeting the youth market. Coke made losses

5
in India for many years but was starting to make a profit since the late 1990s. The 1990s
have also witnessed increased government spending on advertising and government
departments are featured in the client lists of major agencies.

Table 2: Top Advertisers

The government is advertising in areas such as tourist promotion, army recruitment, aids
awareness and is using international agencies in joint ventures. The service sector is
another area is also expanding, and with the privatization of banking and insurance those
areas are expected to increase their advertising. After a new code of conduct was issued in
the early 1990s, Indian political parties have emerged as major clients for the advertising
sector.

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 Figure 2: Advertising Agency Economic Conditions

Advertising, direct marketing and trade promotion:

English-language advertising in India is among the most creative in the world. TV

advertising (especially in the Hindi language) has made major headway in the past 10
years, especially with the advent of satellite TV. Hindi TV channels - such as ZEE and
Sony TV - have fashioned themselves on lines of Western channels, and most advertising
on such channels is glitzy, smart and tailored for the middle classes. Such channels have
forced the state-owned channel, Doordarshan, to add spice to their programmes which,
earlier, were quite drab. The importance of the Hindi-speaking market (which is also
fluent in English) is borne out from the fact that STAR TV, once an all-English channel, is
now rich in Hindi programmes. Even the British Broadcasting Corporation is reportedly
toying with the idea of airing Hindi programmes. Most major international advertising
firms have chosen local Indian partners for their work in this market. Mumbai (formerly
Bombay) remains the centre of the advertising business in India. India has a diverse and
growing number of daily newspapers. Since 1991, the increase of business and financial
news reports in English-language and vernacular dailies has paralleled the economic
reform programme and the movements of the stock markets. Most leading publications
have their circulation audited by the Audit Bureau of Circulation which has an India-

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dedicated office in Mumbai (formerly Bombay). Leading business newspapers include
Business Standard and Economic Times. Magazines include India Today, Business India ,
Business Today, and Business World. In addition to advertising, other kinds of trade
promotion activities are also well-developed in India. A large of exhibitions are held all
over India, the most prominent ones at Pragati Maidan in New Delhi. Conferences and
seminars are also widespread.

Direct marketing:

The mail service in India is slow though generally reliable. Telephone service is poor, but
rapidly improving. While private courier services are growing strongly and the
telecommunications sector is opening up for a range of modern services, until goods can
be ordered conveniently and delivered with certainty, direct marketing will be limited to
door-to-door sales. An inefficient state-owned banking system also prevents prompt
transfers of funds from consumers to retailers. Credit card companies are increasingly
targeting India's one million cardholders through directly-mailed offers of goods and
services. The most successful direct marketers in India today are the millions of door-to-
door sales representatives who visit neighborhoods and villages across India. From ice
cream vendors to carpet sellers, Indias residential neighborhoods are frequently visited
by merchants offering a variety of products. Some soft-drink companies have used beauty
queens to make surprise knocks on the doors!

Advertising Market in India: TV and Radio to grow faster than the Print

The overall advertising and media industry is expected to close at Rs 21,314 crore
in revenues in 2008, riding a 20 per cent growth rate

Television advertising market is projected at Rs 8,674 crore in 2008

The print industry stands at nearly Rs 10,000 crore.

The cinema medium will corner around 0.7 per cent of the total advertising budget
in 2008.

Outdoor media industry will grow at 14 per cent to touch Rs 1,454 crore,

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 Radio is likely to record a 40 per cent growth in 2008 to touch Rs 672 crore [via
BS]

And the most awaited:

Internet advertising will constitute only 1.7 per cent of the overall advertising
spends in 2008, up from the current 1.4 per cent.

Whats really driving the growth in Television industry is the focus on regional language
channels. Network 18 and NDTV are going very strong in the local market and emergence
of regional channels/ shopping channels is becoming an attractive play for local advertisers
to invest in.

Performance:

The industry has suffered a great deal during the economic recession, with U.S. top media
companies managing flat revenues in 2008 and a 5% contraction in 2009 according to Ad
Age reports. Many players, dominated by those in the print industry, have plunged into
bankruptcy, primarily due to the shrinking revenues coupled with massive debt loads taken
on in the market boom. Though certain digital media firms such as Google fared well
(revenues up 23%), others such as Microsoft witnessed a flat top line. Ad spending in the
U.S. was also severely depressed, falling 4% in 2008 a further 14% in the H1 2009,
according to WPP's TNS Media Intelligence. Despite this sorry state, newspapers,
magazines and cable systems continue to operate and media companies have been trying to
slash their crippling debt. Analysts believe the worst is over, and globally, the industry is
poised to emerge with less debt and stronger balance sheets in the coming 6 months.

Growth potential:

The Indian entertainment and media sector is one of the fastest growing sectors in the
economy, and its segments have all witnessed tremendous double digit growth in the last
few years. The past 2 years were tumultuous, especially due to poor liquidity in the system
for financing big projects for the big and small screen. However, with global indicators
realigning themselves once again, the Indian media and advertising industry too looks
poised to resume where it left off pre 1H 2008. According to a 2009 report jointly
published by the Federation of Indian Chambers of Commerce and Industry (FICCI) and

9
KPMG, the media and entertainment industry in India is likely to grow at ~13 % CAGR
over 2009-13, touching US$ 20 billion by 2013. The key reasons favoring the rapid growth
of the Indian entertainment and media sector are the demographic and economic factors
buoying Indias development; with a majority of the population below the age of 35, and
increasing disposable income in Indian households, the average spend on media and
entertainment is likely to grow, according to the 2009 edition of PricewaterhouseCoopers
report. In addition, advances in technology, increasing penetration of communication
mediums, policy initiatives of the Indian government to increase FDI and the increased
participation of private media companies have been the other key drivers of the industry.
As per current estimates the television industry is projected to grow by 22%, filmed
entertainment by 16%, radio by 18% and the Indian advertising industry 61% over the next
3 years. Given the lucrative prospects of this segment, international media giants are all
vying for a stake in the segment. In addition to domestic growth, the growing popularity of
Indian content in the world market and South Asia in particular, has encouraged Indian
entertainment industry players to also venture abroad to tap this booming segment;
according to a report by CII-AT Kearney, the share of international markets in total box
office collections is estimated to increase from 8% in 2006 to 15% in 2012.

Future Prospect:

The greatest opportunities naturally lie in those sub-areas that are expected to grow the
fastest over the next few years, namely, in the development of digital distribution platforms
for TV such as DTH, digital music platforms, digital media advertising (internet, mobile
and digital signage) and global cinema content. For new graduates, the industry poses great
prospects for achievement given its growth trajectory. On the flip side, it is extremely fast-
paced and stressful as well. Additionally, being creative on a tight schedule can be
emotionally draining, especially because most of the work includes long hours and meeting
stringent deadlines.

Indian advertising Industry set to rise:

The Indian advertising industry is expected to grow 61% by 2010 (with advertising spend
climbing to Rs. 36,731 crore)

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As per report by Zenith Opti Media, expect advertising expenditure in India to increase
from 0.50% of the gross domestic product (GDP) to 0.53% over the next three years,

Worldwide, the ad industry is expected to grow 6.7% to reach $61 bn and Internet
advertising is expected to surpass magazine advertising; and the upswing will be triggered
by quadrennial events like Olympics, US elections and Euro 2008.

As far as Indian market is concerned:

Internet advertising contributes only 1.8 % of the countrys total advertising

spends.

Internet medium is set to witness 150 per cent growth in 2008.

For every hundred rupees spent by advertisers, Rs 91 is spent on television and the print
media while the outdoor media accounts for Rs 5. The rest is divided between cinema,
radio and the Internet. (The Indian entertainment industry too is expected to grow by
CAGR of 18% to reach Rs. 1 trillion numbers by 2011). Though these numbers may sound
great (and most of the times theoretical), what is really important and worth noticing is the
rise of ad networks by newspapers/magazines worldwide (after all they are the ones
who have a strong relationship with local advertisers as well as readers) which are
essentially competing with ad networks from Google/Yahoo/MSN and online companies.

Regulations and censorship:

Indias constitution, set up at the time of independence in 1947, has a provision for
freedom of speech and expression, though commercial advertising was excluded from this
provision in a Supreme Court Ruling in 1960. A number of laws helped define the
limitations of advertising. In 1969 the Monopolies and Restrictive Trade Practices Act
included misleading advertising in the definition of unfair trade practices, including
misrepresentation regarding price, quality and also prohibited the practice bait and
switches. In 1954 the Drugs and Magic Remedies Act restricted advertising of some
contraceptive devices or those that would facilitate miscarriages, along with the banning of
false claims from drugs and medication. The Indecent Representation of Women Act in

11
1986 endeavored to restrict exploitation of women by the media and was a response to
consumer demands. Other acts restrict the use of certain emblems and names; the conduct
of promotions and competitions for prizes (1955); comparative advertising that involves
defamation, and financial advertising claims. There are also ethical codes of conduct
established by the Advertising Standards Council of India and the India Newspaper
Society. A new code of conduct issued in 1990 has led to Indian politics emerging as a
major client for the advertising sector. Unsubstantiated claims also do not get past the
Advertising Standards Council, such as the rejection of Hutchison Maxs claim to be the
best cellular service in India which would be acceptable in other countries. Advertising
Age claims that in 1993 the government lifted its ban on foreign advertising on 5 of
Doordarshans 5 satellite channels, but still kept the ban on Channel 1, and still banned the
advertising of alcohol. Before 1994, the national television network banned the advertising
of foreign goods and services but in 1994 Doordarshan, lifted its ban on the advertising of
foreign products such banks and financial services and certain other products such as
matrimonial agencies and hair dyes. In April 2001 the new female Minister of Information
and Broadcasting, had a number of advertisements taken off the national broadcaster
Doordarshan for being distasteful and degrading for women. Kissing was also banned
from television. The key products that are banned in broadcast media are alcohol,
cigarettes and tobacco. By 2000 there were 65 satellite television channels in India and it
was difficult to censor them all according to Sehgal (2000).

Strategies:

Advertising in India has been concentrated on the 2 key media: print and television, with
India reflecting the same worldwide trends, with print on the decline and television on the
ascendency, and advertising is targeted at the groups that can be reached through those
media. Products tend to be advertised to groups that can afford them, or who are future
potential purchasers. Advertising strategies vary with the intention of the marketers,
especially the international advertisers, their agencies and analyses of the target market. In
the early phases of international entry into the Indian market they targeted the affluent
Indians with significant purchasing power and those with disposable income for repeat
purchase consumables and increasingly consumer durables. Television advertising was
seen to play on the foreign obsessions of many Indians in the early 1990s as well as
significantly increasing their desires for advertised products. Most academic research into

12
advertising strategies seems to have been studies of print advertising, mainly in magazines,
which are admittedly easier to document than more ephemeral television advertising, but
which are targeted at affluent groups. The National Council for Applied Economic
Research has identified the very rich and consuming classes in India as part of an
international class with similar lifestyles and consumption habits. This group is educated,
travel, own houses, cars, consumer appliances, and in India have servants. Advertising in
certain media, especially magazines, is likely to target this group. A cross cultural
comparison of magazine advertising in the US, and India and other countries in the late
1980s saw more visual similarities than differences in advertising practices of
advertisements. The magazine profile included Business India, Readers Digest, India
today, Femina and Womans Era. In a comparative content analysis of magazine
advertising in India and the U.S. in 2002 Khairullah and Khairullah found the dominant
cultural values to be similar and thus made the case for standardization of advertising, i.e.
using advertising in India primarily developed for the American market. The product range
of the advertisements was limited to airlines, cars, cigarettes, computers and hotels (2002).
These products have been identified as the most likely to be characterized by standardized
advertising. Another study by Chandra et al which investigated whether American
standardized advertising was suitable for the Indian market in 2002, found that market
segments were similar to the United States, and that India had a strong middle class with
western product experience. They recommended the use of American advertising in India,
especially in a diverse market. They did find that durable products were not significantly
characterized by standardized advertising any more than non-durable (in contrast to prior
literature). They were however, cautious in their claims, they did not analyse the media,
message or execution and suggested maybe standardized advertising from non-American
advertisers might be less suitable for standardization, which would have to be investigated.
They see that one reason companies use standardized advertising is that they view
emerging markets as less significant, and used standardized advertising to cut costs. Sehgal
states that advertising campaigns are seen to be getting much more aggressive and focused
in recent years (2000a) which is probably because advertisers are beginning to appreciate
the size of the markets and the potential profits to be made in India. There has been
considerable increase in market research by key advertisers, with companies like Ogilvie
Mather setting up OgilvieOne a marketing agency to help with consumer research, and the
establishment of international marketing firms such as MindShare a WPP agency which

13
launched in India in 2001. MindShare was estimated to have cornered 30% of the Indian
advertising market within a year (Media Asia, 2002). There seems to have been less
academic research into the advertising of cheap repeat purchase consumables to the less
affluent markets, though there has been considerable market research by key advertisers.
Hindustan Lever Ltd. has been the largest advertiser in India almost every year for
decades, and personal products are the biggest category in advertising. As the average
income in India is still low, $42 per month according to the NCAER, a key strategy by
large companies like HLL has been to reduce the size of their packages, think small, and
sell tiny sachets of detergent and shampoo. This makes the product accessible and gets
consumers accustomed to using the product. According to India Business Intelligence, the
advertising industry in India has moved from focusing on demand creation to brand
creation and the promotion of specific products. The most successful strategies prior to
1997 were seen to be simple and straightforward messages stressing product benefits. A
good example was Rexona deodorant soap sold at Rs 60, compared to other brands selling
at Rs150-200, and advertised with a campaign saying that body odour is a problem and
Rexona the answer. The market also needs to be ready for the product, for example an
American disposable contact lens company spent Rs30 million in 1996/1997 on
advertising but could not sell its product because of its high price according to the
Economist Intelligence Unit Limited (1997). Other reasons could be that if people value
frugality they may be reluctant to purchase disposable items as an alternative to reusable
lenses, or that they have different values about appearance and wearing glasses. There have
been significant changes in recent years and no longer does successful advertising focus
only on product benefits, but works through values and value change. By the late 1990s
multinational companies were seen to be customizing their advertising to the Indian
market. Product endorsement by celebrities, and associations with national passions like
cricket were other strategies used. The Korean company L.G. sponsored the Indian cricket
team in the Cricket World Cup in 2003 for example and Adidas, who had previously made
their Indian ads in London, started making them in India in 1999, with the advertising
agency RKSwamy/BBDO and using an Indian cricket star Sachin Tendulkar. LOreal
increased its sales dramatically by using the Miss India who became Miss World, Diana
Haydin, along with its usual models. Pashupati and Sengupta state that in the 1990s the
profile of rural consumers was starting to change and greater literacy levels meant brand
identification was easier and more product information could be supplied. Previously

14
visual characteristics like colour were seen to be a very important factor in identifying the
product for the non-literate, for example the importance of the red colour of Lifeboy
packaging from Hindustan Lever. Lifeboy is Indias largest selling soap. In the 1990s
strategies used to tap the vast rural market included using mobile vans with television sets
screening Hindi film songs inter-dispersed with product promotions. Ogilvie Outreach, set
up to target rural consumers, had expanded its sales force from 2 people to 1,000 people
from 1994 to 2000, with another 5,000 working on contract. More recent approaches
include games, door to door sales, folk dances, placing of tiles in village wells, putting up
shoe racks in temples and sometimes painting the horns of cows and putting up
scarecrows. More recent marketing initiatives since 2000 have been precisely targeting
rural consumers, who number about 700 million. Activities include setting up e-choupals
(cybercafes) in villages and Hindustan Levers Project Shakti. Through Project Shakti
the company supports rural self-help groups to alleviate poverty and reduce disparities in
purchasing power. The groups are provided with a range of its products: Lifebuoy Soap,
Wheel detergent, A1 tea, Nihar coconut milk and Clinic Plus Shampoo. Indias rural
market makes up nearly 50% of Hindustan Levers total sales in India of US $2.2 billion.
This project aims to reach 75,000 villages by 2004, and has already increased HLLs net
profit from $273 million to $342 million in 2001. Project Nova is Hindustan Levers direct
selling network set up to market personal care products and household cleaning products
Other HLL endeavors including expanding its massive distribution network through
Project Bharat, and its network reach in rural markets through Operation Streamline. These
endeavors sound a little like military operations! Consumer durable companies such as
Philips India, LG Electronics, Kodak India and Samsung India are also launching new
initiatives such as Philips battery free radio. Ogilvie Mather have launched Programme
Outreach specifically to target rural consumers and also have set up initiatives to undertake
consumer research. One of the key challenges for foreign markets in India has been called
decommodification, changing the pattern of consumer buying from traditional unbranded
products to branded products. This was seen as a significant trend by both Reckitt and
Coleman and Hindustan Lever in 1999, and HLL acknowledged that the potential for
certain foods was enormous as the current market was not even .05% of the total. Another
major area for growth was seen to be the establishment of retail outlets, as opposed to the
traditional markets, which will further facilitate the sales of branded products. Coca Cola
has tried multiple approaches to the Indian market since they returned in 1993, including

15
buying out key local brands Parle and Thums Up. They havent always been able to get
their advertising right, for example in 1997 a television commercial showing a child bungy
jumping to get a chocolate bar had to be withdrawn after children died trying to imitate the
advertisement. More recently they have Coca Cola has expanded efforts to market to
internet users, who number approximately 7 million, ownership being 5.8 million in 2002.
They have set up a site with an aim of building an online community with competitions
and games. Coca Cola managed to turn around its 2000 $400 million loss, by selling
smaller bottles in rural markets, this resulted in sales increases of 34% by the beginning of
2002. Both Coke and Pepsi have launched the 200ml bottle priced at approximately 10c.
Cokes goal is to make its products available, affordable and desirable. Coca Cola opened
50,000 outlets in 3,500 villages in the first 3 months of 2002. They have also launched
other products: a soft-drink concentrate at 4c called Sunfill, Sprite and bottled water. Sprite
was launched in 1999 with advertising that spoofed advertising hype and current trends in
advertising, targeting youth in the process of establishing their identity. Kinley bottled
water in 2001 was advertised depicting village life and military families aimed at building
emotional connections with consumers. 65% of Coca Colas sales are to the youth market.
The advent of foreign advertisers in India has not always been successful and according to
Sehgal, campaigns that failed in India, which included Nike, Reebok, Johnny Walker,
Sony, Panasonic, McDonalds and Coca Cola, caused advertisers to look more closely at
their strategies. One of the most dramatically insensitive recent campaigns was that of
Cadbury-Schweppes which compared its chocolate to Kashmir: Too tempting.

16
 2. OBJECTIVES AND SCOPE

Objectives of this study:

To identify the various type of advertising strategies

To identify various type of sale promotional techniques and strategies

To know the concept of sale promotion

To understand the objective and purpose of sale promotion

To identify the effectiveness of advertising

To identify the effectiveness of sale promotional activities

To identify the influence of advertising on consumer buying behaviour

To identify the influence of sale promotional techniques on sale volume of the

business

To explore the disadvantages of sale promotion

Scope of the study:

The essence of being in business by any business outfits is to produce for sales and profits.
In order to remain in business an organization must generate enough sales from its
products to cover operating costs and post reasonable profits. For many organizations,
sales estimate is the starting point in budgeting or profit planning. It is so because it must
be determined, in most cases, before production units could be arrived at while production
units will in turn affect material purchases. However, taking decision on sales is the most
difficult tasks facing many business executives. This is because it is difficult to predict,
estimate or determine with accuracy, potential customers demands as they are

17
uncontrollable factors external to an organization. Considering, therefore, the importance
of sales on business survival and the connection between customers and sales, it is
expedient for organizations to engage in programmes that can influence consumers
decision to purchase its products. This is where advertising and brand management are
relevant. Advertising is a subset of promotion mix which is one of the 4ps in the marketing
mix i.e product, price, place and promotion. As a promotional strategy, advertising serve as
a major tool in creating product awareness and condition the mind of a potential consumer
to take eventual purchase decision.

18
 3. LIMITATIONS OF THE STUDY

The main three limitations of this research are time, finance and access. The research is
time crucial due to the deadline placed on the submission of the final research findings.
Therefore starting from sampling till data collection everything needs to be done as quickly
as possible thus leaves researcher with limited amount of time. Access to Companies data
may be an issue because the researcher will not be able to reach customers due to limited
time. Although the researcher is a student is also undertaking paid employment ensuring
that although finances are limited there is enough available reserve in support? Further,
since the statistics relate basically to advertising and sale promotional techniques, the
observations garnered cannot adhere to the rest of India in the wider context.

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 4. THEORETICAL PERSPECTIVE

Advertising:

Advertising is a non-personal form of communication intended to persuade an audience

(viewers, readers or listeners) to purchase or take some action upon products, ideals, or
services. It includes the name of a product or service and how that product or service could
benefit the consumer, to persuade a target market to purchase or to consume that particular
brand. These brands are usually paid for or identified through sponsors and viewed via
various media. Advertising can also serve to communicate an idea to a mass amount of
people in an attempt to convince them to take a certain action, such as encouraging
'environmentally friendly' behaviors, and even unhealthy behaviors through food
consumption, video game and television viewing promotion, and a "lazy man" routine
through a loss of exercise . Modern advertising developed with the rise of mass production
in the late 19th and early 20th centuries. Mass media can be defined as any media meant to
reach a mass amount of people. Several types of mass media are television, internet, radio,
news programs, and published pictures and articles. Commercial advertisers often seek to
generate increased consumption of their products or services through branding, which
involves the repetition of an image or product name in an effort to associate related
qualities with the brand in the minds of consumers. Different types of media can be used to
deliver these messages, including traditional media such as newspapers, magazines,
television, radio, outdoor or direct mail; or new media such as websites and text messages.
Advertising may be placed by an advertising agency on behalf of a company or other
organization. Non-commercial advertisers that spend money to advertise items other than a
consumer product or service include political parties, interest groups, religious
organizations and governmental agencies. Nonprofit organizations may rely on free modes
of persuasion, such as a public service announcement. In 2007, spending on advertising
was estimated at more than $150 billion in the United States and $385 billion worldwide.

20
History:

Egyptians used papyrus to make sales messages and wall posters. Commercial messages
and political campaign displays have been found in the ruins of Pompeii and ancient
Arabia. Lost and found advertising on papyrus was common in Ancient Greece and
Ancient Rome. Wall or rock painting for commercial advertising is another manifestation
of an ancient advertising form, which is present to this day in many parts of Asia, Africa,
and South America. The tradition of wall painting can be traced back to Indian rock art
paintings that date back to 4000 BC. [3] History tells us that Out-of-home advertising and
billboards are the oldest forms of advertising. As the towns and cities of the Middle Ages
began to grow, and the general populace was unable to read, signs that today would say
cobbler, miller, tailor or blacksmith would use an image associated with their trade such as
a boot, a suit, a hat, a clock, a diamond, a horse shoe, a candle or even a bag of flour. Fruits
and vegetables were sold in the city square from the backs of carts and wagons and their
proprietors used street callers (town criers) to announce their whereabouts for the
convenience of the customers. As education became an apparent need and reading, as well
as printing, developed advertising expanded to include handbills. In the 17th century
advertisements started to appear in weekly newspapers in England. These early print
advertisements were used mainly to promote books and newspapers, which became
increasingly affordable with advances in the printing press; and medicines, which were
increasingly sought after as disease ravaged Europe. However, false advertising and so-
called "quack" advertisements became a problem, which ushered in the regulation of
advertising content. As the economy expanded during the 19th century, advertising grew
alongside. In the United States, the success of this advertising format eventually led to the
growth of mail -order advertising. In June 1836, French newspaper La Presse was the first
to include paid advertising in its pages, allowing it to lower its price, extend its readership
and increase its profitability and the formula was soon copied by all titles. Around 1840,
Volney Palmer established a predecessor to advertising agencies in Boston. [4] Around the
same time, in France, Charles-Louis Havas extended the services of his news agency,
Havas to include advertisement brokerage, making it the first French group to organize. At
first, agencies were brokers for advertisement space in newspapers. N. W. Ayer & Son was
the first full -service agency to assume responsibility for advertising content. N.W. Ayer
opened in 1869, and was located in Philadelphia. At the turn of the century, there were few

21
career choices for women in business; however, advertising was one of the few. Since
women were responsible for most of the purchasing done in their household, advertisers
and agencies recognized the value of women's insight during the creative process. In fact,
the first American advertising to use a sexual sell was created by a woman for a soap
product. Although tame by today's standards, the advertisement featured a couple with the
message "The skin you love to touch". [5] In the early 1920s, the first radio stations were
established by radio equipment manufacturers and retailers who offered programs in order
to sell more radios to consumers. As time passed, many non-profit organizations followed
suit in setting up their own radio stations, and included: schools, clubs and civic groups.
[6] When the practice of sponsoring programs was popularized, each individual radio
program was usually sponsored by a single business in exchange for a brief mention of the
business' name at the beginning and end of the sponsored shows. However, radio station
owners soon realised they could earn more money by selling sponsorship rights in small
time allocations to multiple businesses throughout their radio station's broadcasts, rather
than selling the sponsorship rights to single businesses per show. This practice was carried
over to television in the late 1940s and early 1950s. A fierce battle was fought between
those seeking to commercialize the radio and people who argued that the radio spectrum
should be considered a part of the commons to be used only non-commercially and for
the public good. The United Kingdom pursued a public funding model for the BBC,
originally a private company, the British Broadcasting Company , but incorporated as a
public body by Royal Charter in 1927. In Canada, advocates like Graham Spry were
likewise able to persuade the federal government to adopt a public funding model, creating
the Canadian Broadcasting Corporation. However, in the United States, the capitalist
model prevailed with the passage of the Communications Act of 1934 which created the
Federal Communications Commission. To placate the socialists, the U.S. Congress did
require commercial broadcasters to operate in the "public interest, convenience, and
necessity". Public broadcasting now exists in the United States due to the 1967 Public
Broadcasting Act which led to the Public Broadcasting Service and National Public Radio.
In the early 1950s, the DuMont Television Network began the modern practice of selling
advertisement time to multiple sponsors. Previously, DuMont had trouble finding sponsors
for many of their programs and compensated by selling smaller blocks of advertising time
to several businesses. This eventually became the standard for the commercial television
industry in the United States. However, it was still a common practice to have single

22
sponsor shows, such as The United States Steel Hour. In some instances the sponsors
exercised great control over the content of the showup to and including having one's
advertising agency actually writing the show. The single sponsor model is much less
prevalent now, a notable exception being the Hallmark Hall of Fame. The 1960s saw
advertising transform into a modern approach in which creativity was allowed to shine,
producing unexpected messages that made advertisements more tempting to consumers'
eyes. The Volkswagen ad campaignfeaturing such headlines as "Think Small" and
"Lemon" (which were used to describe the appearance of the car)ushered in the era of
modern advertising by promoting a "position" or "unique selling proposition" designed to
associate each brand with a specific idea in the reader or viewer's mind. This period of
American advertising is called the Creative Revolution and its archetype was William
Bernbach who helped create the revolutionary Volkswagen ads among others. Some of the
most creative and long-standing American advertising dates to this period. The late 1980s
and early 1990s saw the introduction of cable television and particularly MTV. Pioneering
the concept of the music video, MTV ushered in a new type of advertising: the consumer
tunes in for the advertising message, rather than it being a by -product or afterthought. As
cable and satellite television became increasingly prevalent, specialty channels emerged,
including channels entirely devoted to advertising, such as QVC, Home Shopping
Network, and ShopTV Canada. Marketing through the Internet opened new frontiers for
advertisers and contributed to the "dot-com" boom of the 1990s. Entire corporations
operated solely on advertising revenue, offering everything from coupons to free Internet
access. At the turn of the 21st century, a number of websites including the search engine
Google, started a change in online advertising by emphasizing contextually relevant,
unobtrusive ads intended to help, rather than inundate, users. This has led to a plethora of
similar efforts and an increasing trend of interactive advertising. The share of advertising
spending relative to GDP has changed little across large changes in media. For example, in
the US in 1925, the main advertising media were newspapers, magazines, signs on
streetcars, and outdoor posters. Advertising spending as a share of GDP was about 2.9
percent. By 1998, television and radio had become major advertising media. Nonetheless,
advertising spending as a share of GDP was slightly lowerabout 2.4 percent. A recent
advertising innovation is "guerrilla marketing", which involve unusual approaches such as
staged encounters in public places, giveaways of products such as cars that are covered
with brand messages, and interactive advertising where the viewer can respond to become

23
part of the advertising message. Guerrilla advertising is becoming increasing more popular
with a lot of companies. This type of advertising is unpredictable and innovative, which
causes consumers to buy the product or idea. This reflects an increasing trend of interactive
and "embedded" ads, such as via product placement, having consumers vote through text
messages, and various innovations utilizing social network services such as MySpace.

Scope of Advertising:

The scope of advertising has a lot of future to go because in present life the technology has
been increased that much. The scope of advertising management mainly depends on the
change in technology, for example now-a-days advertising can make a blender by increase
the sale of one thing to many people by publicity such publicity can create along sale and
services towards the product used by them.

Public service advertising:

The same advertising techniques used to promote commercial goods and services can be
used to inform, educate and motivate the public about non-commercial issues, such as
HIV/AIDS, political ideology, energy conservation and deforestation. Advertising, in its
non-commercial guise, is a powerful educational tool capable of reaching and motivating
large audiences. "Advertising justifies its existence when used in the public interestit is
much too powerful a tool to use solely for commercial purposes." Attributed to Howard
Gossage by David Ogilvy. Public service advertising, non-commercial advertising, public
interest advertising, cause marketing, and social marketing are different terms for (or
aspects of) the use of sophisticated advertising and marketing communications techniques
(generally associated with commercial enterprise) on behalf of non- commercial, public
interest issues and initiatives. In the United States, the granting of television and radio
licenses by the FCC is contingent upon the station broadcasting a certain amount of public
service advertising. To meet these requirements, many broadcast stations in America air the
bulk of their required public service announcements during the late night or early morning
when the smallest percentage of viewers are watching, leaving more day and prime time
commercial slots available for high-paying advertisers. Public service advertising reached
its height during World Wars I and II under the direction of more than one government.

Marketing Mix:

24
The marketing mix has been the key concept to advertising. The marketing mix was
suggested by Jeremy McCarthy, professor at Harvard Business School, in the 1960s. The
marketing mix consists of four basic elements called the four Ps Product is the first P
representing the actual product. Price represents the process of determining the value of a
product. Place represents the variables of getting the product to the consumer like
distribution channels, market coverage and movement organization. The last P stands for
Promotion which is the process of reaching the target market and convincing them to go
out and buy the product.

Type of Advertising:

Virtually any medium can be used for advertising. Commercial advertising media can
include wall paintings, billboards, street furniture components, printed flyers and rack
cards, radio, cinema and television adverts, web banners, mobile telephone screens,
shopping carts, web popups, skywriting, bus stop benches, human billboards, magazines,
newspapers, town criers, sides of buses, banners attached to or sides of airplanes
("logojets"), in-flight advertisements on seatback tray tables or overhead storage bins,
taxicab doors, roof mounts and passenger screens, musical stage shows, subway platforms
and trains, elastic bands on disposable diapers, doors of bathroom stalls, stickers on apples
in supermarkets, shopping cart handles (grabertising), the opening section of streaming
audio and video, posters, and the backs of event tickets and supermarket receipts. Any
place an "identified" sponsor pays to deliver their message through a medium is
advertising.

Television:

The TV commercial is generally considered the most effective mass-market advertising

format, as is reflected by the high prices TV networks charge for commercial airtime
during popular TV events. The average cost of a single thirty-second TV spot during this
game has reached US$3 million. The majorities of television commercials feature a song or
jingle that listeners soon relate to the product. Virtual advertisements may be inserted into
regular television programming through computer graphics. It is typically inserted into
otherwise blank backdrops or used to replace local billboards that are not relevant to the
remote broadcast audience. More controversially, virtual billboards may be inserted into

25
the background where none exist in real -life. This technique is especially used in televised
sporting events Virtual product placement is also possible.

Road Advertising:

Radio advertising is a form of advertising via the medium of radio. Radio advertisements
are broadcasted as radio waves to the air from a transmitter to an antenna and a thus to a
receiving device. Airtime is purchased from a station or network in exchange for airing the
commercials. While radio has the obvious limitation of being restricted to sound,
proponents of radio advertising often cite this as an advantage.

Press Advertising:

Press advertising describes advertising in a printed medium such as a newspaper,

magazine, or trade journal. This encompasses everything from media with a very broad
readership base, such as a major national newspaper or magazine, to more narrowly
targeted media such as local newspapers and trade journals on very specialized topics. A
form of press advertising is classified advertising, which allows private individuals or
companies to purchase a small, narrowly targeted ad for a low fee advertising a product or
service. There are several tips on making a print ad stand out more. The attached hyperlink
will show you a you tube video about these tips Link label.

Online Advertising:

Online advertising is a form of promotion that uses the Internet and World Wide Web for
the expressed purpose of delivering marketing messages to attract customers. Examples of
online advertising include contextual ads that appear on search engine results pages,
banner ads, in text ads, Rich Media Ads, Social network advertising, online classified
advertising, advertising networks and e-mail marketing, including e-mail spam.

Billboard Advertising:

Billboards are large structures located in public places which display advertisements to
passing pedestrians and motorists. Most often, they are located on main roads with a large
amount of passing motor and pedestrian traffic; however, they can be placed in any

26
location with large amounts of viewers, such as on mass transit vehicles and in stations, in
shopping malls or office buildings, and in stadiums.

Mobile Billboard Advertising:

Mobile billboards are generally vehicle mounted billboards or digital screens. These can be
on dedicated vehicles built solely for carrying advertisements along routes reselected by
clients, they can also be specially equipped cargo trucks or, in some cases, large banners
strewn from planes. The billboards are often lighted; some being backlit, and others
employing spotlights. Some billboard displays are static, while others change; for example,
continuously or periodically rotating among a set of advertisements. Mobile displays are
used for various situations in metropolitan areas throughout the world, including:

Target advertising

One-day, and long-term campaigns

Conventions

Sporting events

Store openings and similar promotional events

Big advertisements from smaller companies

Others

In-store Advertising:

In-store advertising is any advertisement placed in a retail store. It includes placement of a

product in visible locations in a store, such as at eye level, at the ends of aisles and near
checkout counters, eye- catching displays promoting a specific product, and
advertisements in such places as shopping carts and in-store video displays.

Covert Advertising:

27
Covert advertising, also known as guerrilla advertising, is when a product or brand is
embedded in entertainment and media. For example, in a film, the main character can use
an item or other of a definite brand, as in the movie Minority Report, where Tom Cruise's
character John Anderton owns a phone with the Nokia logo clearly written in the top
corner, or his watch engraved with the Bulgari logo. Another example of advertising in
film is in I, Robot, where main character played by Will Smith mentions his Converse
shoes several times, calling them "classics," because the film is set far in the future. I,
Robot and Spaceballs also showcase futuristic cars with the Audi and Mercedes-Benz
logos clearly displayed on the front of the vehicles. Cadillac chose to advertise in the
movie The Matrix Reloaded, which as a result contained many scenes in which Cadillac
cars were used. Similarly, product placement for Omega Watches, Ford, VAIO, BMW and
Aston Martin cars are featured in recent James Bond films, most notably Casino Royale. In
"Fantastic Four: Rise of the Silver Surfer", the main transport vehicle shows a large Dodge
logo on the front. Blade Runner includes some of the most obvious product placement; the
whole film stops to show a Coca-Cola billboard.

Celebrities:

This type of advertising focuses upon using celebrity power, fame, money, popularity to
gain recognition for their products and promote specific stores or products. Advertisers
often advertise their products, for example, when celebrities share their favorite products
or wear clothes by specific brands or designers. Celebrities are often involved in
advertising campaigns such as television or print adverts to advertise specific or general
products. The use of celebrities to endorse a brand can have its downsides, however. One
mistake by a celebrity can be detrimental to the public relations of a brand. For example,
following his performance of eight gold medals at the 2008 Olympic Games in Beijing,
China, swimmer Michael Phelps' contract with Kellogg's was terminated, as Kellogg's did
not want to associate with him after he was photographed smoking marijuana.

Sales Promotion:

Sales promotions are another way to advertise. Sales promotions are double purposed
because they are used to gather information about what type of customers you draw in and
where they are, and to jumpstart sales. Sales promotions include things like contests and
games, sweepstakes, product giveaways, samples coupons, loyalty programs, and
28
discounts. The ultimate goal of sales promotions is to stimulate potential customers to
action.

Media and advertising approaches:

Increasingly, other media are overtaking many of the "traditional" media such as television,
radio and newspaper because of a shift toward consumer's usage of the Internet for news
and music as well as devices like digital video recorders (DVRs) such as TiVo. Advertising
on the World Wide Web is a recent phenomenon. Prices of Web-based advertising space
are dependent on the "relevance" of the surrounding web content and the traffic that the
website receives. Digital signage is poised to become a major mass media because of its
ability to reach larger audiences for less money. Digital signage also offer the unique
ability to see the target audience where they are reached by the medium. Technology
advances has also made it possible to control the message on digital signage with much
precision, enabling the messages to be relevant to the target audience at any given time and
location which in turn, gets more response from the advertising. Digital signage is being
successfully employed in supermarkets. [18] Another successful use of digital signage is in
hospitality locations such as restaurants. [19] and malls. [20] E-mail advertising is another
recent phenomenon. Unsolicited bulk E-mail advertising is known as "e- mail spam".
Spam has been a problem for email users for many years. Some companies have proposed
placing messages or corporate logos on the side of booster rockets and the International
Space Station. Controversy exists on the effectiveness of subliminal advertising (see mind
control), and the pervasiveness of mass messages (see propaganda). Unpaid advertising
(also called "publicity advertising"), can provide good exposure at minimal cost. Personal
recommendations ("bring a friend", "sell it"), spreading buzz, or achieving the feat of
equating a brand with a common noun (in the United States, "Xerox" = "photocopier",
"Kleenex" = tissue, "Vaseline" = petroleum jelly, "Hoover" = vacuum cleaner, "Nintendo"
(often used by those exposed to many video games) = video games, and "Band-Aid" =
adhesive bandage) these can be seen as the pinnacle of any advertising campaign.
However, some companies oppose the use of their brand name to label an object. Equating
a brand with a common noun also risks turning that brand into a generalized trademark -
turning it into a generic term which means that its legal protection as a trademark is lost.
As the mobile phone became a new mass media in 1998 when the first paid downloadable
content appeared on mobile phones in Finland, it was only a matter of time until mobile

29
advertising followed, also first launched in Finland in 2000. By 2007 the value of mobile
advertising had reached $2.2 billion and providers such as delivered billions of mobile ads.
More advanced mobile ads include banner ads, coupons, Multimedia Messaging Service
picture and video messages, advantages and various engagement marketing campaigns. A
particular feature driving mobile ads is the 2D Barcode, which replaces the need to do any
typing of web addresses, and uses the camera feature of modern phones to gain immediate
access to web content. 83 percent of Japanese mobile phone users already are active users
of 2D barcodes. A new form of advertising that is growing rapidly is social network
advertising. It is online advertising with a focus on social networking sites. This is a
relatively immature market, but it has shown a lot of promise as advertisers is able to take
advantage of the demographic information the user has provided to the social networking
site. Friend advertising is a more precise advertising term in which people are able to direct
advertisements toward others directly using social network service. From time to time, The
CW Television Network airs short programming breaks called "Content Wraps," to
advertise one company's product during an entire commercial break. The CW pioneered
"content wraps" and some products featured were Herbal Essences, Crest, Guitar Hero II,
CoverGirl, and recently Toyota. Recently, there appeared a new promotion concept,
"Advertising", and advertising on Augmented Reality technology.

Current Trends:

The rise of new media:

With the dawn of the Internet came many new advertising opportunities. Popup, Flash,
banner, popular, advertising, and email advertisements (the last often being a form of
spam) are now commonplace. Particularly since the rise of "entertaining" advertising,
some people may like an advertisement enough to wish to watch it later or show a friend.
In general, the advertising community has not yet made this easy, although some have used
the Internet to widely distribute their ads to anyone willing to see or hear them. In the last
three quarters of 2009 mobile and internet advertising grew by 18.1% and 9.2%
respectively. Older media advertising saw declines: 10.1% (TV), 11.7% (radio), 14.8%
(magazines) and 18.7% (newspapers).

30
Niche Marketing:

Another significant trend regarding future of advertising is the growing importance of the
niche market using niche or targeted ads. Also brought about by the Internet and the theory
of The Long Tail, advertisers will have an increasing ability to reach specific audiences. In
the past, the most efficient way to deliver a message was to blanket the largest mass market
audience possible. However, usage tracking, customer profiles and the growing popularity
of niche content brought about by everything from blogs to social networking sites,
provide advertisers with audiences that are smaller but much better defined, leading to ads
that are more relevant to viewers and more effective for companies' marketing products.
Among others, Comcast Spotlight is one such advertiser employing this method in their
video on demand menus. These advertisements are targeted to a specific group and can be
viewed by anyone wishing to find out more about a particular business or practice at any
time, right from their home. This causes the viewer to become proactive and actually
choose what advertisements they want to view.

Crowdsourcing:

The concept of crowdsourcing has given way to the trend of user-generated

advertisements. User- generated ads are created by consumers as opposed to an advertising
agency or the company themselves, most often they are a result of brand sponsored
advertising competitions. For the 2007 Super Bowl, the Frito-Lays division of PepsiCo
held the Crash the Super Bowl contest, allowing consumers to create their own Doritos
commercial. Chevrolet held a similar competition for their Tahoe line of SUVs. Due to the
success of the Doritos user-generated ads in the 2007 Super Bowl, Frito-Lays relaunched
the competition for the 2009 and 2010 Super Bowl. The resulting ads were among the
most-watched and most-liked Super Bowl ads. In fact, the winning ad that aired in the
2009 Super Bowl was ranked by the USA Today Super Bowl Ad Meter as the top ad for
the year while the winning ads that aired in the 2010 Super Bowl were found by Nielsen's
BuzzMetrics to be the "most buzzed-about". This trend has given rise to several online
platforms that host user-generated advertising competitions on behalf of a company.
Founded in 2007, Zooppa has launched ad competitions for brands such as Google, Nike,
Hersheys, General Mills, Microsoft, NBC Universal, Zinio, and Mini Cooper.
31
Crowdsourced advertisements have gained popularity in part to its cost effective nature,
high consumer engagement, and ability to generate word-of-mouth. However, it remains
controversial, as the long-term impact on the advertising industry is still unclear.

Criticism of advertising:

While advertising can be seen as necessary for economic growth, it is not without social
costs. Unsolicited Commercial Email and other forms of spam have become so prevalent
as to have become a major nuisance to users of these services, as well as being a financial
burden on internet service providers. Advertising is increasingly invading public spaces,
such as schools, which some critics argue is a form of child exploitation. In addition,
advertising frequently uses psychological pressure (for example, appealing to feelings of
inadequacy) on the intended consumer, which may be harmful.

Hyper-commercialism and the commercial tidal wave:

Criticism of advertising is closely linked with criticism of media and often

interchangeable. They can refer to its audio-visual aspects (e. g. cluttering of public spaces
and airwaves), environmental aspects (e. g. pollution, oversize packaging, increasing
consumption), political aspects (e. g. media dependency, free speech, censorship), financial
aspects (costs), ethical/moral/social aspects (e. g. sub-conscious influencing, invasion of
privacy, increasing consumption and waste, target groups, certain products, honesty) and,
of course, a mix thereof. Some aspects can be subdivided further and some can cover more
than one category. As advertising has become increasingly prevalent in modern Western
societies, it is also increasingly being criticized. A person can hardly move in the public
sphere or use a medium without being subject to advertising. Advertising occupies public
space and more and more invades the private sphere of people, many of which consider it a
nuisance. It is becoming harder to escape from advertising and the media. Public space
is increasingly turning into a gigantic billboard for products of all kind. The aesthetical and
political consequences cannot yet be foreseen. Hanno Rauterberg in the German
newspaper Die Zeit calls advertising a new kind of dictatorship that cannot be escaped.
Ad creep: "There are ads in schools, airport lounges, doctors offices, movie theaters,
hospitals, gas stations, elevators, convenience stores, on the Internet, on fruit, on ATMs, on
garbage cans and countless other places. There are ads on beach sand and restroom walls.
One of the ironies of advertising in our times is that as commercialism increases, it makes
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it that much more difficult for any particular advertiser to succeed, hence pushing the
advertiser to even greater efforts. Within a decade advertising in radios climbed to nearly
18 or 19 minutes per hour; on prime-time television the standard until 1982 was no more
than 9.5 minutes of advertising per hour, today its between 14 and 17 minutes. With the
introduction of the shorter 15-second-spot the total amount of ads increased even more
dramatically. Ads are not only placed in breaks but e. g. also into baseball telecasts during
the game itself. They flood the internet, a market growing in leaps and bounds. Other
growing markets are product placements in entertainment programming and in movies
where it has become standard practice and virtual advertising where products get
placed retroactively into rerun shows. Product billboards are virtually inserted into Major
League Baseball broadcasts and in the same manner, virtual street banners or logos are
projected on an entry canopy or sidewalks, for example during the arrival of celebrities at
the 2001 Grammy Awards. Advertising precedes the showing of films at cinemas including
lavish film shorts produced by companies such as Microsoft or DaimlerChrysler. The
largest advertising agencies have begun working aggressively to co-produce programming
in conjunction with the largest media firms creating Infomercials resembling
entertainment programming. Opponents equate the growing amount of advertising with a
tidal wave and restrictions with damming the flood. Kalle Lasn, one of the most
outspoken critics of advertising on the international stage, considers advertising the most
prevalent and toxic of the mental pollutants. From the moment your radio alarm sounds in
the morning to the wee hours of late-night TV micro jolts of commercial pollution flood
into your brain at the rate of around 3,000 marketing messages per day. Every day an
estimated twelve billion display ads, 3 million radio commercials and more than 200,000
television commercials are dumped into North America s collective unconscious . In the
course of his life the average American watches three years of advertising on television.
More recent developments are video games incorporating products into their content,
special commercial patient channels in hospitals and public figures sporting temporary
tattoos. A method unrecognizable as advertising is so-called guerrilla marketing which
is spreading buzz about a new product in target audiences. Cash-strapped U.S. cities do
not shrink back from offering police cars for advertising. A trend, especially in Germany, is
companies buying the names of sports stadiums. The Hamburg soccer Volkspark stadium
first became the AOL Arena and then the HSH Nordbank Arena. The Stuttgart
Neckarstadion became the Mercedes-Benz Arena, the Dortmund Westfalenstadion now is

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the Signal Iduna Park. The former SkyDome in Toronto was renamed Rogers Centre. Other
recent developments are, for example, that whole subway stations in Berlin are redesigned
into product halls and exclusively leased to a company. Dsseldorf even has multi-
sensorial adventure transit stops equipped with loudspeakers and systems that spread the
smell of a detergent. Swatch used beamers to project messages on the Berlin TV-tower and
Victory column, which was fined because it was done without a permit. The illegality was
part of the scheme and added promotion. Its standard business management knowledge
that advertising is a pillar, if not the pillar of the growth-orientated free capitalist
economy. Advertising is part of the bone marrow of corporate capitalism.
Contemporary capitalism could not function and global production networks could not
exist as they do without advertising. For communication scientist and media economist
Manfred Knoche at the University of Salzburg, Austria, advertising isnt just simply a
necessary evil but a necessary elixir of life for the media business, the economy and
capitalism as a whole. Advertising and mass media economic interests create ideology.
Knoche describes advertising for products and brands as the producers weapons in the
competition for customers and trade advertising, e. g. by the automotive industry, as a
means to collectively represent their interests against other groups, such as the train
companies. In his view editorial articles and programmes in the media, promoting
consumption in general, provide a cost free service to producers and sponsoring for a
much used means of payment in advertising. Christopher Lasch argues that advertising
leads to an overall increase in consumption in society; "Advertising serves not so much to
advertise products as to promote consumption as a way of life."

Sale promotion:

Sales promotion is one of the most loosely used terms in the marketing vocabulary. We
define sales promotion as demand. Stimulating devices designed supplement advertising
and facilitate personal selling. In other words, sales promotion signifies all those activities
that supplement, co-ordinate and make the efforts of personal selling and advertising more
effective. It is non recurrent in nature which means it cant be used continuously.

Concept of sale promotion:

Sales promotion consists of diverse collection of incentive tools, mostly short-term

designed to stimulate quicker and / or greater purchase of a particular product by
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consumers or the trade. Where as advertising offers a reason to buy, sales promotion offers
an incentive to buy. Sales promotion includes tools for consumer promotion (for example
samples, coupons, prizes, cash refund, warranties, demonstrations, contest); trade
promotion (for example buying allowances, free goods, merchandise allowances, co-
operative advertising, advertising and display allowances, dealer sales contests); and sales-
force promotion (for example bonuses, contests, sales rallies). Sales promotion efforts are
directed at final consumers and designed to motivate, persuade and remind them of the
goods and receives that are offered. Sales persons adopt several techniques for sales
promotion. Creative sales promotion can be very effective. It is the marketing managers
responsibility to specify promotion objectives and policies.

Definitions of sale promotion:

According to American Marketing Association Those marketing activities other than

personal selling advertising and publicity that stimulate consumer purchasing and dealer
effectiveness such as display shows and exhibitions, demonstrations and various non-
recurrent selling efforts not in the ordinary routine. W.J. Stanton defines sales promotion
as all those activities other than advertising, personal selling, public relations and publicity
that are intended to stimulate customer demand and improve the marketing performance of
sellers.

Purpose of sales Promotion:

Sales promotion tools vary in their specific objectives. A free sample stimulates consumer
trial, while a free management advisory service cements a long-term relationship with a
retailer. From the marketers perspective, sales promotion serves three essential roles it
informs, persuades and reminds prospective and current customers and other selected
audiences about a company and its products. The relative importance of those roles varies
according to the circumstances faced by a firm. The most useful product or brand will be a
failure if no one knows it is available! Because distribution channels are often long, a
product may pass through many lands between a producer and consumers. Therefore, a
producer must inform middlemen as well as the ultimate consumers or business users
about the product. Wholesalers, in turn must inform retailers and retailers must inform
consumers. As the number of potential customers grows and the geographic dimensions of
a market expand, the problems and costs of informing the market increase. Another
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purpose of sales promotion is persuasion. The intense competition among different
industries, puts tremendous pressure on the promotional programmes of sellers. In India,
even a product designed to satisfy a basic physiological need requires strong persuasive
promotion, because consumers have many alternatives to choose from. In the case of
luxury product, for which sales depend on the ability to convince consumers that the
products benefits exceed those of other luxuries, persuasion is even more important.
Consumers also must be reminded about a products availability and its potential to satisfy.
sellers bombard the market place units hundreds of messages every day in the hope of
attracting new consumers and establishing markets for new products. Given the intense
competition for consumers attention, even an established firm must constantly remind
people about its brand to retain a place in their minds. Much of a firms sales promotion
may be intended simply to offset competitors marketing activity by keeping its brand in
front of the market.

Objectives of sale promotion:

To introduce new products: To induce buyers to purchase a new product, free

samples may be distributed or money and merchandise allowance may be offered to
business to stock and sell the product.

To attract new customer: New customers may be attracted through issue of free
samples, premiums, contests and similar devices.

To induce present customers to buy more: Present customers may be induced to

buy more by knowing more about a product, its ingredients and uses.

To help firm remain competitive: Sales promotions may be undertaken to meet

competition from a firm.

To increase sales in off season: Buyers may be encouraged to use the product in
off seasons by showing them the variety of uses of the product.

To increase the inventories of business buyers: Retailers may be induced to keep

in stock more units of a product so that more sales can be effected.

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Rationale of sales promotion:

Rationale of sales promotion may be analyzed under the following points.

Short-term results: Sales promotion such as coupons and trade allowances

produce quicker, more measurable sales results. However critics of this strategy
argue that these immediate benefits come at the expense of building brand equity.
They believe that an over emphasize on sales promotion may under mine a brands
future.

Competitive Pressure: If competitors offer buyers price reductions, contest or

other incentives, a firm may feel forced to retaliate with its own sales promotions.

Buyers expectations: Once they are offered purchase incentives, consumers and
channel members get used to them and soon begin expecting them.

Low quality of retail selling: Many retailers use inadequately trained sales clerks
or have switched to self service. For these outlets, sales promotion devices such as
product displays and samples often are the only effective promotional tools
available at the point of purchase.

Types of sale promotion:

In using sales promotion, a company must fulfill the objectives of the organization. Sales
promotion objectives are derived from broader promotion objectives, which are derived
from more basic marketing objectives developed for the product. The specific objectives
set for sales promotion will vary with the type of target market. For consumers, objectives
include encouraging purchase of larger-size units, building trial among non users and
attracting switches away from competitors brands. For retailers objectives include
inducing retailers to carry new items and higher levels of inventory, encouraging off-
season buying, encouraging, stocking of related items, off setting competitive promotions,
building brand loyalty of retailers and gaining entry into new retail outlets. For sales force,
objectives include encouraging support of a new product or model, encouraging more
prospecting and stimulating off-season sales. Many sales promotion tools are available to

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accomplish these objectives at the consumer level, and at the middle men level. For the
purpose of convenience, the types of sales promotion methods may be grouped under three
categories:

1. Types of sales promotion directed at consumers.

2. Types of sales promotion directed at dealers and distributors.

Consumer Promotion Tools:

The main consumer promotion tools include samples, coupons, cash refund offers, price
packs, premiums, prizes, patronage rewards, free trials, product warranties, tie-ins, and
point of purchase displays and demonstrations.

Figure 3: Frame of reference

Samples: Samples are offers of a free amount or trial of a product to consumers.

The sample might be delivered door to door sent in the mail, picked up in a store,
found attached to another product or featured in an advertising offer. Sampling is
the most effective and most expensive way to introduce a new product.

Coupons: Coupons are certificates entitling the bearer to a stated saving on the
purchase of a specific product. Coupons can be mailed, enclosed in or on other
products or inserted in magazine and newspaper advertisements. Coupons can be

38
 effective in stimulating sales of a mature brand and inducing early trial of a new
brand.

Cash Refund Offers or Rebates: These are like coupons except that the price
reduction occurs after the purchase rather than at the retail shop. The consumer
sends a specified proof of purchase to the manufacturer, who in turn refunds
part of the purchase price by mail. Cash refunds have been used for major products
such as automobiles as well as for packaged goods.

Price Packs: These are offers to consumers of savings off the regular price of a
product, flagged on the label or package. They may take the form or a reduced-
price pack which is single packages sold at a reduced price (such as two for the
price of one) or a banded pack, which is two related products banded together (such
as a tooth brush and tooth paste). Price packs are very effective in stimulating short
term sales, even more than coupons.

Premiums or Gifts: These are merchandise offered at a relatively low cost or free
as an incentive to purchase a particular product. Sometimes the package itself, is a
reusable container may serve as a premium. A self-liquidating premium is an item
sold below its normal retail price to consumers who request it.

Prizes: These are offers of the chance to win cash, trips or merchandise as a result
of purchasing something. Pepsi-cola offered the chance to win cash by matching
numbers under the bottle cap with numbers announced on television. Sometimes
the prize is a person, offering the winner either cash or dinner with actor Sharuk
Khan.

Patronage Awards: These are values in cash or in other forms that are proportional
to ones patronage of a certain vendor or group of vendors. Most airlines offer
frequent flyer plans providing points for miles traveled that can be turned in for
free airline trips. Cooperatives pay their members dividends according to their
annual patronage. Le Meridian adopted an honoured guest plan that awards
points for users of their hotels.

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 Free Trials: Free trails consist of inviting prospective purchasers to try the product
without cost in the hope that they will buy the product. Thus, often we see, auto
dealers encourage free test drives to stimulate purchase interest.

Product Warranties: These are an important tool, especially as consumers become

more quality sensitive. When My TVS offered a two year car warranty,
substantially longer than other competitors customers took notice. They inferred
that My TVS quality must be good or else the company would be in deep trouble.
Companies must carefully estimate the sales-generating value against the potential
costs of any proposed warranty programme.

Tie-in Promotions: These are becoming increasingly popular. In a tie in promotion

two or more brands or companies team up on coupons, refunds and contests to
increase their pulling power. Companies pool funds with the hope of broader
exposure, while several sales forces push these promotions to retailers, giving them
a better shot at extra display and ad space.

Point-of-Purchase Displays: These take place at the point of purchase or sale.

Display of visible mark or product at the entrance of the store is an example.
Unfortunately many retailers do not like to handle the hundreds of displays, signs
and posters they receive from manufacturers. Hindustan Lever often use this tool to
promote its products in the retail market.

Product Demonstrations: Products are being shown in action. Consumers can

visit the store and see the usage of product in live action so that doubts of the
consumers can be clarified in the store itself. When a new product is introduced in
the market, the sales promotional tool is often used. For example ultra modern
grinder mixie being used by the company to demonstrate its specialty than the other
product.

Trade Promotion Tools:

More sales promotion rupees are directed to the trade than to consumers. Manufacturers
seek the following objectives in awarding money to the trade:

i. Trade promotion can persuade the retailer or wholesaler to carry the brand.
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ii. Trade promotion can persuade the retailer or wholesaler to carry more than it normally
carries.

iii. Trade promotion can induce the retailers to promote the brand through featuring,
display, and price reduction.

iv. Trade promotion can stimulate retailers and their sales clerks to push the product.

Manufacturers use several promotion tools. Some of which are mentioned below:

Price Off: Manufacturers may offer a price off, which is straight discount off
the list price on each case purchased during a stated period of time. The offer
encourages dealers to buy a quantity or carry a new item that they might not
ordinarily buy. The dealers can use the buying allowance for immediate profit or
price reductions.

Allowance: Manufacturers may offer an allowance in return for the retailers

agreeing to feature the manufacturers products in some way. An advertising
allowance compensates retailers for advertising the manufacturers product. A
display allowance compensates them for carrying a special display of the product.

Free Goods: Manufacturers may offer free goods, which are extra cases of
merchandise to middlemen who buy a certain quantity of items.

Push Money: Manufacturers may offer push money which is cash or gifts to
dealers or their sales force to push the manufacturers goods.

Specialty Advertising Items: Manufacturers may offer free specialty advertising

items to the retailers that carry the companys name such as pens, pencil, calendars,
paper weights, and memo pads.

As the number of competitive sales promotions have increased, friction has been created
between the companys sales force and its brand managers. The sales force says that the
retailers will not keep products on the shelf unless they receive more trade promotion
money, while the brand managers want to spend their funds on consumer promotion and
advertising.

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Sale promotion strategies:

The sales promotion strategy is an important element in overall marketing strategy. Sales
promotion strategy involves identification of objectives, effective communication for attracting
attention, allocation of budget, determining the correct promotional mix, introduction of
strategic approach and finally evaluation. We shall study about each one of them briefly here.

1. Objectives:

The marketer should determine his sales promotion objectives. He should determine what is to
be accomplished and what kind of buyer responses are desired. Sales promotion tasks should
be objective oriented. These tasks are informing, persuading and reminding the customers
about the products. The sales manager should inform consumers about his product and should
highlight its special features.

He has not only to inform the customers but persuade them to buy it.

2. Communication:

Sales promotion should attract the attention of the target audience. If the prices, discounts,
off season facilities etc, are not adequately and effectively communicated, the effort of
sales promotion would be wasted. A point to be noted here is that the audience evaluates
not only the message but also the source of the message in terms of its credibility. The
purpose of communication is to persuade potential customers to purchase the product. The
sales manager determines the message to be aimed at the target market to gain product
acceptance. The overall marketing objectives define the role of communication in sales
promotion. Identifying the target audience is the main task of a sales promotion
communication. The audiences response to the message source helps determine the
effectiveness of the message.

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 Figure 4: Sale Promotion strategies

3. Medium of Reach:

Sales promotion may adopt different methods for approaching people. Strategic variables are
taken into account while deciding a particular method of sales promotion. Consumer
promotion has been considered a very effective mode of sales promotion; potential consumers
are offered samples, coupons, etc; to promote sales. The point of purchase display is a silent
strategy to trigger off buying decisions. Retailers rely on in-stone displays to familiarize
customers with their product. A showroom display makes it easy for prospective buyers to
familiarize themselves with the different features of the product. Trade promotion through
buying allowance, free goods, merchandise allowances, push money etc; help to enhance
sales by retailers and traders. Packaging is another important form of promotion,
particularly for consumer goods. It may carry selling messages and information about the
product. A good package design attracts the shoppers attention away from other products.
It is a proper of blend of colour, design and shape. The following chart shows major sales
promotion devices, grouped by Target Audience.

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4. Budget:

One of the most difficult marketing decisions facing companies is how much to spend on
promotion. It is not surprising that industries and companies vary considerably in how
much they spend on promotion. It is important to determine sales promotion budgets
before resorting to sales promotion activities. The resources and sales potentials are
estimated before the formulation of budgets. Sales promotion budgets should be adequate
so that they achieve the promotion objective.

Affordable method: Many companies set the promotion budget at what they think
the company afford. This method of setting budgets completely ignores the role of
promotion as an investment and the immediate impact of promotion on sales
volume. It leads to an uncertain annual promotion budget, which makes long range
market planning difficult.

Percentage of sales method: Many companies set their promotion expenditures at

a specified percentage of sales or of the sales price. Automobile companies
typically budget a fixed percentage for promotion based on the planned can price. A
number of advantages are claimed for this method.

o The percentage-of-sales method means that promotion expenditures are

likely to vary with what the company can afford which satisfies the

44
 financial managers, who feel that expenses should bear a close relation to
the movement of corporate sales over the business cycle.

o This method encourages management to think in terms of the relationship

between promotion cost, selling price and profit per unit.

The major drawback of this method is that it does not provide a logical basis for choosing
the specific percentage except what has been done in the past or what competitors are
doing. It also does not encourage building up the promotion budget by determining what
each product and territory deserves.

Competitive Parity Method: Some companies set their promotion budget to

achieve share-of-wise parity with their competitors. Two arguments are advanced
for this method. One is that the competitors expenditures represent the collective
wisdom of the industry. The other is that maintaining a competitive parity helps
prevent promotion wars. There are no grounds for believing that the competition
knows better than the company itself what it should be spending on promotion.
Company reputations, resources, opportunities, and objectives differ so much that
their promotion budgets are hardly a guide. Further more, there is no evidence that
budgets based on competitive parity discourage promotional wars from breaking
out

Objective-and-Task-Method: The objective-and-task method calls upon marketers

to develop their promotion budgets by defining their specific objectives,
determining the tasks that must be performed to achieve these objectives and
estimating the costs of performing these tasks. This method has the advantage of
requiring management to spell out its assumptions about the relationship between
rupees spent, exposure levels, trial rates and regular usage.

5. Promotional Mix:

Companies face the task of distributing the total promotion budget over the four promotion
tools of advertising, sales promotion, publicity and sales force. With in the same industry,
companies can differ considerably in how they allocate their promotional budget.
Companies are always searching for ways to gain efficiency by substituting one

45
promotional tool for another as its economics become more favourable. Many companies
have replaced some field sales activity with ads, direct mail and telemarketing. Other
companies have increased their sales promotion expenditures in relation to advertising, to
gain quicker sales. The trial and error method, past performance and corporate policies
may influence the appropriate promotional mix. Many firms have increased their sales with
the application of appropriate combinations of the promotion media; sales promotion and
personal selling are supported with publicity. The promotion mix is a variable in the
marketing strategy. It should be clearly decided how fare a particular element should be
used in combination with other promotional methods.

6. Strategic Approach:

The kind of promotional mix employed determines the promotional strategy. Generally
speaking a particular combination, type or amount of sales promotion, personal selling,
publicity and advertising are brought into the promotional mix, which becomes the
promotional strategy in the course of implementation. The marketing strategy as much
guides the determination of the promotional strategy, which may be divided into sale
promotion strategy, personal selling strategy, publicity strategy and advertising strategy.

7. Evaluation of sales promotional strategy:

Sales promotional strategies should be evaluated twice. First at the stages of

implementation and secondly after the final performance because implementation control
will suggest improvements during the application of the promotional strategy, while
performance control will be a guide for the future. Implementation control covers initial
planning, objectives, promotional packages, and printing of special premiums and
packaging materials, distribution to retailers, etc. Even though it has proved successful
whenever tried, very few firms adopt this strategy. Many manufacturers believe only in
performance control. Performance is evaluated in the light of planned objectives.
Consumer surveys and consumer experiments are used to evaluation techniques show how
far the sales promotion techniques have been effective in increasing sales through
motivating consumers and sellers, and point the way to improvement in sales promotion.

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 Table 3: Consumer-oriented sale promotion tools for various marketing objectives

Sales promotion and product life cycle

The promotional tools vary in their cost effectiveness at different stages of the product life
cycle. In the introduction stage, advertising and publicity have high cost effeteness,
followed by sales promotional to induce trial and personal selling to gain distribution
coverage. In the growth stage, all the tools can be toned down because demand has its own
momentum through word-of-mouth. In the maternity stage, sales promotion, advertising
and personal selling all become more important in that order. In the decline stage, sales
promotion continues strong, advertising and publicity are reduced and sales people give the
product only minimal attention.

Cross Promotion:

Under this sales promotion strategy, the manufacturer may use all the potential tools such
as advertisement, personal selling and sales promotion to hit the market simultaneously so
that the buyer will be induced to buy a product. For example when Deccan Chronicle, a
daily newspaper, was introduced in Chennai, the management had used all promotional
47
activities, such as display, holding, price off and media to influence the reader to buy the
paper.

Surrogate selling:

Under this strategy, when the manufacturer is unable to sell his product in the market he
may handover the product to a well known organization to sell on behalf of the
manufacturer. This strategy is called surrogate selling. For example, shampoo products are
manufactured at Puducherry by a number of small and medium manufactures. But they
find it difficult in selling the product in the market. What they have done was, handing
over the finished product to Hindustan Lever, Proctor and Gample who have sufficient
logistics in selling the product, there by relieving the burden of converting the product into
cash. They have in fact act as a surrogate in selling their merchandise in the market.

Bait and Switch advertising:

Bait means something that is meant to tempt someone. Under this strategy, the marketing
manager use AIDAS formula to tempt someone to look the advertisement and influence
him to buy a product. For example, Bharat Sanchar Nigam Limited has used 10 paise
prominently in its advertisement to bring the attention of its users in mind which will
influence them to go for using the BSNL service. This way of tempting the viewer to opt
for BSNL is called Bait advertising. Switch means a device that is pressed or turned to stop
or start something working especially by electricity. Switch advertising means when an
advertisement is released, it should ignite the minds of the buyer to notice the
advertisement and take a decision to buy the product. For example during festival times
manufacturer may offer some discount on cash price to the buyer on some selected
products. So he has put this in the local newspaper-which would have ignited the minds of
the buyers. Buyers will certainly be influenced to buy the product. This strategy is called
switch advertising strategy.

Effectiveness of advertising:

The advertising industry, as a whole, has the poorest quality-assurance systems and turns
out the most inconsistent product (their ads and commercials) of any industry in the world.
This might seem like an overly harsh assessment, but it is based on testing thousands of

48
ads over several decades. In our experience, only about half of all commercials actually
work; that is, have any positive effects on consumers purchasing behavior or brand choice.
Moreover, a small share of ads actually appear to have negative effects on sales. How
could these assertions possibly be true? Dont advertising agencies want to produce great
ads? Dont clients want great advertising? Yes, yes, they do, but they face formidable
barriers.

Unlike most of the business world, which is governed by numerous feedback loops, the
advertising industry receives little objective, reliable feedback on its advertising. First, few
ads and commercials are ever tested among consumers (less than one percent, according to
some estimates). So, no onenot agency or clientknows if the advertising is any good.
If no one knows when a commercial is good or bad, or why, how can the next commercial
be any better? Second, once the advertising goes on air, sales response (a potential
feedback loop) is a notoriously poor indicator of advertising effectiveness because there is
always so much noise in sales data (competitive activity, out-of-stocks, weather,
economic trends, promotional influences, pricing variation, etc.). Third, some of the
feedback is confusing and misleading: agency and client preferences and biases, the
opinions of the clients wife, feedback from dealers and franchisees, complaints from the
lunatic fringe, and so on.

Advertising testing could provide a reliable feedback loop and lead to much better
advertising, but many obstacles stand in the way. The first great barrier to better
advertising is self-delusion. Most of us believe, in our heart-of-hearts, that we know what
good advertising is and that there is no need for any kind of independent, objective
evaluation. Agencies and clients alike often think that they know how to create and judge
good advertising. Besides, once agencies and clients start to fall in love with the new
creative, they quickly lose interest in any objective evaluation. No need for advertising
testing. Case closed.

Strangely, after 40 years of testing advertising, we cannot tell you if a commercial is any
good or not, just by viewing it. Sure, we have opinions, but they are almost always wrong.
In our experience, advertising agencies and their clients are just as inept at judging
advertising as we are. It seems that none of us is smart enough to see advertising through
the eyes of the target audience, based purely on our own judgment.

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A second barrier to better advertising is the belief that sales performance will tell if the
advertising is working. Unless the sales response to the advertising is immediate and
overwhelming, it is almost impossible to use sales data to judge the effectiveness of the
advertising. So many variables are beyond our control, as noted, that its impossible to
isolate the effects of media advertising alone. Moreover, some advertising works in a few
weeks, while other advertising might take many months to show positive effects, and this
delayed response can confound our efforts to read the sales data. Also, advertising often
has short-term effects that sales data might reflect, and long-term (years later) effects that
most of us might easily overlook in subsequent sales data. Because of these limitations,
sales data tends to be confusing and unreliable as an indicator of advertising effectiveness.

Sophisticated marketing mix modeling is one way to measure these advertising effects on
sales, but it often takes millions of dollars and years of effort, and requires the building of
pristine databases of sales information along with all of the marketing input variables. Few
companies have the budget, the patience, the accurate databases, and the technical
knowledge necessary to succeed at marketing mix modeling. Even so, marketing mix
modeling does not help us evaluate the contribution of a single commercial but rather the
cumulative effects of many different commercials over a long period of time. Also,
marketing mix modeling does not tell us why the advertising worked, or failed to work.
Was it message, or media weight, or media mix that made the advertising effective?
Generally, marketing mix modeling cannot answer these types of questions. So, again,
sales data is of limited value when you make critical decisions about your advertising.

A third barrier to better advertising is a pervasive tendency of many (but not all)
advertising agencies to delay, undermine, and thwart efforts to objectively test their
creative babies. Who wants a report card on the quality of their work? Its very
threatening. The results can upset the creative folks. The results can upset clients. The
agency can lose control. Agencies can be quite creative in coming up with reasons to avoid
copy testing.

Effectiveness of sale promotion:

50
A sales promotion is a tool used to get customers to buy a product or try a service. Sales
promotions can come in the form of coupons, rebates, sweepstakes, contests, discounted
pricing, point-of-purchase displays, trade shows, demonstrations, premiums and sampling.
Typically, before a sales promotion is put into action, a company evaluates its market. If a
sales promotion is warranted, the company comes up with a clear, measurable objective
they'd like to accomplish through the promotion. A sales promotion constructed to inform
customers about a new product might include an advertisement in a local paper explaining
the product and inviting customers to visit a Web site for a coupon offer. An activity like
this can be measured by tracking the number of people who receive the paper, the number
of people who visit the Web site, the number of people who download the coupon and the
number of people who actually use the coupon. Reminding customers about a product or
service is just as important as an initial product introduction. Something as simple as
setting up an in-store display with coupons or having customers complete a survey to
indicate how often they use the product keeps brands fresh in consumers' minds.
Information gathered from the survey can expose how often customers use a product, how
familiar they are with a product and if they plan to use it more in the future. Couple this
with a discount coupon and you can even track the number of people who make a purchase
after completing the survey. A follow-up survey can assess things like customer
satisfaction and likelihood for a repeat purchase.

Impact advertising on consumer behaviour:

Advertisers primary mission is to reach prospective customers and influence their

awareness, attitudes and buying behaviour. They spend a lot of money to keep individuals
(markets) interested in their products. To succeed, they need to understand what makes
potential customers behave the way they do. The advertisers goals is to get enough relevant
market data to develop accurate profiles of buyers-to-find the common group (and
symbols) for communications this involves the study of consumers behaviour: the mental
and emotional processes and the physical activities of people who purchase and use goods
and services to satisfy particular needs and wants. Proctor et al. (1982) noted that the
principal aim of consumer behaviour analysis is to explain why consumers act in particular
ways under certain circumstances. It tries to determine the factors that influence consumer
behaviour, especially the economic, social and psychological aspects which can indicate
the most favored marketing mix that management should select. Consumer behaviour

51
analysis helps to determine the direction that consumer behaviour is likely to make and to
give preferred trends in product development, attributes of the alternative communication
method etc. consumer behaviors analysis views the consumer as another variable in the
marketing sequence, a variable that cannot be controlled and that will interpret the product
or service not only in terms of the physical characteristics, but in the context of this image
according to the social and psychological makeup of that individual consumer (or group of
consumers). Economic theory has sought to establish relationships between selling prices,
sales achieved and consumers income; similarly, advertising expenditure is frequently
compared with sales. On other occasions financial accounting principles maybe applied to
analyse profit and losses. Management ratios, net profit before tax, liquidity and solvency
ratios can all be investigated. Under the situations the importance of the consumers
motivations, perceptions, attitudes and beliefs are largely ignored. The consumer is
assumed to be rational that is, to react in the direction that would be suggested by
economic theory and financial principles. However, it is often apparent that consumer
behaviors do not fall neatly into these expected patterns. It is for this reason that consumer
behaviour analysis is conducted as yet another tool to assess the complexities of marketing
operations. The proliferation of assorted brands of food drinks in the country has led to the
cut-throat competition for increased market share being witnessed currently among the
operations in the food drink industry. Today, in Nigeria, there exists more than twenty
brands of food drink both local and foreign, out of which two, namely Cadbury Nigeria
Plcs Bournvita and Nestle Nigeria Plcs Milo keenly compete for market leadership. There
are quite a host of up-coming and low-price localized brands in small sachets with Vita
suffixes springing up in every nook and cranny of the country. Existing and popular
brands, therefore, face intense competition with the affordable localized Vitas with
high sugar content targeted at the low-income groups. It is, therefore, imperative for the
more established brands like Bournvita to employ brilliant advertising and branding
strategies to influence consumers behaviors in order to continue to enjoy and maintain
market leadership. Given the competitive environment in the food and beverages sub
sector of the economy and the high potential of advertising in helping companies realize
and retain their position this paper examine the influence of advertising on a leading
company in the food and beverages sub sector as a case study.

Impact of sale promotion on sale volume:

52
Sales promotion has grown substantially in recent years. There are several reasons for this
dramatic growth in sales promotion. First, consumers have accepted sales promotion as
part of their buying decision criteria. It provides reluctant decision makers with an
incentive to make choices by increasing the value offered by a particular brand. Second,
the increasing tendency of businesses to focus on short-term results has helped spur growth
in sales promotion, which can provide an immediate boost in sales. Product managers also
tend to view sales promotion as a way to differentiate their brand from that of competitors
in the short term. Third, the emergence of computer technology has enabled manufacturers
to get rapid feedback on the results of promotions. Redemption rates for coupons or figures
on sales volume can be obtained within days. Finally, an increase in the size and power of
retailers has also boosted the use of sales promotion. Historically, the manufacturer held
the power in the channel of distribution. Mass marketers utilized national advertising to get
directly to consumers, creating a demand for the heavily advertised brands that stores
could not afford to ignore. With consolidation and the growth of major retail chains,
however, retailers have gained the power to demand incentives from manufacturers to
carry their products. Many sales promotions are designed to provide benefits to the
retailers.

Disadvantages of sale promotion:

On the downside, the sales promotions, unlike other integrated marketing

communication tools, work often on a short-term basis only.

Also, unlike advertising or public relations, for instance, sales promotions strategies
may have no lasting impact on the brand.

Research conducted by Ehrenberg et al. (1991) showed that "Consumer promotions have
large immediate sales effects, but do not appear to be brand building."

A similar study of 25 grocery brands across four countries showed that:

- For established brands, sales are not constantly high after the sales promotion is over. The
benefit only lasts the length of the sales promotions and a negligible increase of just 1 per
cent in sales was noticed.

53
- Buyers who bought during the sales promotions are actually familiar with the brands.
Therefore, sale promotions have not really attracted new, additional buyers or encouraged
brand switching.

- Price promotions only cater to a limited number of customers, usually 10-20 percent.

In conclusion, it can be gleaned that sales promotions do not really have long-term impact
on sales. Increases in sales often last only during the entire period of sales promotions.
Also, no after-effect on consumer loyalty is noticeable because the majority of extra buyers
in a sales blitz have tried the brand already. Around 80-90 per cent said they bought the
brand within the last twelve months. Sales promotions may be effective in the short-term
but these marketing strategies do not have long-term impacts.

54
 5. METHODOLOGY AND PROCEDURE OF WORK

Methodology can be defined as a systemic way of approaching a problem to identify the

truth and for this certain step should be taken in a systematic order and these steps are
called methods. Research methodology is a process of planning, acquiring, analyzing and
disseminating relevant data and information. The use of right methodology is necessary
because if the right methods are not adopted and thoughts are not arrange in a logical order
the exact truth might not be expressed. Thus the methodology means correct arrangement
of thoughts and knowledge.

Why research is required:

Conceptually, the purpose of research is to discover the answers for the questions through
application of scientific procedures. The main aim of the research is to find out the truth
which is hidden and which has not been discovered yet. Through each research study has
its own specific purpose, but generally researchers are done:

To gain familiarities with a phenomenon or to achieve new insights into it.

To determine the frequency with which something occurs or with which associated
with something else.

To test the hypothesis of casual relationship between variables.

To take appropriate decisions.

Research is a careful and systematic effort of gaining new knowledge. Research is an

original contribute on to the existing stock of knowledge making for its advancement; it is
pursuit of true with the help of study, observation, comparison and experiment. In short the
search of knowledge through objectives and systematic method of finding solution to
problem is research.

55
Research Design:

The research design is the plan, structure and strategy of investigation conceived so as to
obtain answer to research questions and to control variance

The definition of three important terms plan, structure and strategy.

The plan is an outline of the research scheme on which the researcher is to work. The
structure of the research is a more specific outline or the scheme and the strategy shows
how the Research will be carried out, specifying the methods to be used in collection and
analysis of data. Research design is the specification of methods and the procedure fro
acquiring the information needed. It is the operational pattern or framework of the projects
that stipulate what information is to be collected from which sources by the procedures.
The importance of research design lies in the fact that it makes a statement of what is to be
done in order to achieve the research objectives and how it is to be done. It is an expression
of what of the research exercise in terms of results and the analytical input needed to
convert data into research findings. A design may be quite suitable in one case but could
not fit in some other research problem. One design cannot serve the purpose of all types of
research problems. Also most of the research problems are complex in nature and cannot
be solved by a specific research design. Hence a combination of research design is used to
reach a solution. The research design when chosen correctly prevents deviation in the
study. The present study is the cross sectional descriptive type with fields study and partly
casual in nature as it seeks to find out consumer behavior with respect to mobile and
correlate them with income, age, education, professions etc. and formulate marketing
strategies based on the study.

Sampling and sample design:

It is not possible to examine every item in the population hence interferences is drawn
about a large numbers of items possessing a particular attribute based on based analysis of
fraction of such items. It is called a sample. For developing a sampler design following
points need to be discussed with regard to the present study

56
Population:

In statistical usage the terms population is applied to any finite collection of individuals. It
has displaced the orders terms universe. It is aggregate of all elements possessing certain
specified characteristics which need to studied and defined prior to sample. Population can
be finite if units can be counted or infinite. The population is finite. Population can be
defined in terms of elements, sampling units, extent and time. In this study, the
specifications will be as follows:

1. Element: People

2. Sampling Units: Distributors

3. Extent .

Element: An Element is the unit about which information is collected. It provides

the basis for analysis. It identifiable physically. In the present study the element is
dealer having a good knowledge about the service. (Regarding Brand)

Sampling unit: The sampling unit is the basic unit containing the element of the
target population. The sampling may be different from the element. It can be either
geographical unit (state, district etc.) or social unit (Household, family, club etc.) or
a construction unit (enclave, house, flat etc.) or it may be an individual. In the
present stuffy, a sample of distributor is selected in the three stages. First of all a
sample of cities is selected, than a sample of colonies is selected from each selected
colony after the entire distributor in it

Sample frame:

A sample frame could be a telephone directory, a list of block and localities of a city, a map
or any other list consisting of all the sampling units, each stage of sampling process
requires its own sampling frame. Since the present study undergoes two stages sampling
process, we would need two sampling frames. First a list of localities, Second a list of
distributors with in the selected localities.

57
Sampling design: Representation of entire universe is only possible through the sampling
technique. Considerable care has been taken in selecting the sample so that is Convenient
in terms of size and enough to represent the entire universe

Summary of research design:

Data source: Primary and secondary

Research approach: Survey method
Research instrument: Questionnaire
Sampling plan: Sample unit (consumers)
Sample size: 100 consumers
Contact method: Personal contact

58
 6. ANALYSIS OF DATA

Q1. Do you see any advertisement?

Yes 100%

No 0%

100% respondents replied that they see advertisement.

Q2. In your opinion, is advertisement good for product image?

59
 Yes 75%

No 25%

75% respondents replied yes that advertisement is good for product image.

60
Q3. Is advertisement a necessary thing for generating brand awareness?

Yes 90%

No 10%

90% respondents replied yes that advertising is a necessary thing in case of increasing the
brand awareness.

61
Q4. What would you say about advertisement?

Is a right step 55%

No need of advertisement 35%

No comments 10%

55% respondents replied that advertisement is a right step but 35% respondents replied that
there is no need of advertisement.

62
Q5. How will you rank the present advertisement?

Entertaining 45%

Boring and disturbing 12%

Informative 25%

Misguiding 18%

45% respondents replied that the present advertisement is entertaining but 18%
respondents replied that the present advertisement is misguiding.

63
Q6. Does advertisement induce you to purchase the product?

Yes 61%

No 39%

61% respondents replied yes that advertisement induce them to buy the product.

64
Q7. The importance of advertising in case of attracts your attention

Very Important 55%

Somewhat Important 30%

Not Important 15%

55% respondents replied that they advertising is very important in case of attract their
attention but 15% respondents replied that advertisement is not important in case of attract
their attention.

Q8. The importance advertising in case of improves the brand image

65
 Very Important 48%

Somewhat Important 30%

Not Important 22%

48% respondents replied that advertisement is very important in case of improves the
brand image but 22% respondents replied that advertisement is not important in case of
improves the brand image.

Q9. How much you are affected by the promotional efforts of any product?

High 35%

66
 Moderate 43%

Low 20%

No Effect 2%

35% respondents replied that they are highly affected by the promotional efforts but 20%
respondents replied that there is a low effect of promotional effort on them.

67
Q10. Does advertising affect your purchasing decisions?

Yes 74%

No 26%

74% respondents replied yes that advertisement influencing their purchasing decision.

68
 7. FINDINGS, INFERENCES AND RECOMMENDATIONS

FINDINGS AND INFERENCES:

100% respondents replied that they see advertisement.

75% respondents replied yes that advertisement is good for product image.

90% respondents replied yes that advertising is a necessary thing in case of

increasing the brand awareness.

55% respondents replied that advertisement is a right step but 35% respondents
replied that there is no need of advertisement.

45% respondents replied that the present advertisement is entertaining but 18%
respondents replied that the present advertisement is misguiding.

61% respondents replied yes that advertisement induce them to buy the product.

55% respondents replied that they advertising is very important in case of attract
their attention but 15% respondents replied that advertisement is not important in
case of attract their attention.

48% respondents replied that advertisement is very important in case of improves

the brand image but 22% respondents replied that advertisement is not important in
case of improves the brand image.

35% respondents replied that they are highly affected by the promotional efforts but
20% respondents replied that there is a low effect of promotional effort on them.

74% respondents replied yes that advertisement influencing their purchasing

decision.

RECOMMENDATIONS:
69
 Develop a detailed marketing plan or have one developed for them.

Make advertising decisions based upon research and a formal marketing plan.

Plan advertising calendar several months in advance.

Test copy and ads.

Hire professionals to handle advertising.

Learn how to develop and use creative briefs when dealing with agencies.

Save copies of all of their ads, press releases, and printed collateral. Make sure to
provide as much information as possible to their agency.

Make sure that their advertising message focuses on what is important for their
audience and not what is important to them.

Avoid misleading or dishonest copy in hopes of converting duped readers into

using their products or services.

Avoid using committees to approve their advertising.

70
 8. CONCLUSION

Advertising that distribute information to consumers that can help them make better
economic decisions than they would in absence of that information provides a positive
economic service. Of course, any advertising that, by deception or by any other means,
induces consumers to make sub optimal decisions provides a corresponding negative
economic service. Some advertising is of more value than others along this dimension. It is
unreasonable to separate the economic and social factors to increase the sale. It is clear
now that advertising enhances buyer decision-making by providing information and
supporting brand names. It provides and efficient means to firms to communicate with
their customers. By generating various product associations, advertising can add to the
utility of a buyer receives from a product. It supports the various media has the largely
unrealized potential to reduce extremes in the levels of consumer buying. Needs and
motivations are the starting points of purchase decisions. For a purchase to take place,
buyers must experience sufficiently positive attitudes toward the product and the brand and
consciously felt needs. When all the elements of the marketing program are properly
designed, a buyer will include the advertised brand in his or her evoked set of brands,
which are all the brands that are considered for purchase. These elements of the marketing
program include designing the product to have the attributes buyers seek, ensuring that the
product is available at stores, and setting a price that buyers perceive as reasonable. This
article describes the process buyers follow to select a brand from within their evoked set.
Emphasis is put on elements of the process that advertisers can influence through a well
designed communication program. Social scientists develop many sophisticated theories of
consumer behaviour. They give a variety of theoretical models to explain the sequence of
behaviors involved in making a purchase decision. The first task in promoting any new
product is to create awareness perception that the product exists. The second is to
provide enough information learning about the product for the prospective customer to
make an informed decision. Finally, companies wants to be persuasive enough to stimulate
the customer's desire motivation to satisfy his or her needs or wants by purchasing and
repurchasing the product. These three personal processes of consumer behaviour
perception, learning, and motivation are extremely important to them.

71
 9. SUMMARY OF THE PROJECT

Advertising:

Advertising is a non-personal form of communication intended to persuade an audience

(viewers, readers or listeners) to purchase or take some action upon products, ideals, or
services. It includes the name of a product or service and how that product or service could
benefit the consumer, to persuade a target market to purchase or to consume that particular
brand. These brands are usually paid for or identified through sponsors and viewed via
various media.

Scope of Advertising:

The scope of advertising has a lot of future to go because in present life the technology has
been increased that much. The scope of advertising management mainly depends on the
change in technology, for example now-a-days advertising can make a blender by increase
the sale of one thing to many people by publicity such publicity can create along sale and
services towards the product used by them.

Type of Advertising:

Virtually any medium can be used for advertising. Commercial advertising media can
include wall paintings, billboards, street furniture components, printed flyers and rack
cards, radio, cinema and television adverts, web banners, mobile telephone screens,
shopping carts, web popups, skywriting, bus stop benches, human billboards, magazines,
newspapers, town criers, sides of buses, banners attached to or sides of airplanes
("logojets"), in-flight advertisements on seatback tray tables or overhead storage bins,
taxicab doors, roof mounts and passenger screens, musical stage shows, subway platforms
and trains, elastic bands on disposable diapers, doors of bathroom stalls, stickers on apples
in supermarkets, shopping cart handles (grabertising), the opening section of streaming
audio and video, posters, and the backs of event tickets and supermarket receipts.

72
Sale promotion:

Sales promotion is one of the most loosely used terms in the marketing vocabulary. We
define sales promotion as demand. Stimulating devices designed supplement advertising
and facilitate personal selling. In other words, sales promotion signifies all those activities
that supplement, co-ordinate and make the efforts of personal selling and advertising more
effective. It is non recurrent in nature which means it cant be used continuously.

Concept of sale promotion:

Sales promotion consists of diverse collection of incentive tools, mostly short-term

designed to stimulate quicker and / or greater purchase of a particular product by
consumers or the trade. Where as advertising offers a reason to buy, sales promotion offers
an incentive to buy. Sales promotion includes tools for consumer promotion (for example
samples, coupons, prizes, cash refund, warranties, demonstrations, contest); trade
promotion (for example buying allowances, free goods, merchandise allowances, co-
operative advertising, advertising and display allowances, dealer sales contests); and sales-
force promotion (for example bonuses, contests, sales rallies). Sales promotion efforts are
directed at final consumers and designed to motivate, persuade and remind them of the
goods and receives that are offered.

73
 QUESTIONNAIRE

Q1. Do you see any advertisement?

Yes
No

Q2. In your opinion, is advertisement good for product image?

Yes
No

Q3. Is advertisement a necessary thing for generating brand awareness?

Yes
No

Q4. What would you say about advertisement?

Is a right step
No need of advertisement
No comments

Q5. How will you rank the present advertisement?

Entertaining
Boring and disturbing
Informative
Misguiding
None of the above

Q6. Does advertisement induce you to purchase the product?

Yes
No

74
Q7. The importance in advertising in case of attracts your attention
Very Important
Somewhat Important
Not Important

Q8. The importance advertising in case of improves the brand image

Very Important
Somewhat Important
Not Important

Q9. How much you are affected by the promotional efforts of any product?
High
Moderate
Low
No Effect

Q10. Does advertising affect your purchasing decisions?

Yes
No

Thanks for your support

75
ANNEXURE

I
 PROPOSAL
Name of the Learner: Anuj Garg

Registration No. 201407697

Program Name: Post Graduate Diploma in Marketing

Address: VPO Ujina, Distt. Mewat, Near Panda wala chowk, Gurgaon-07

TITLE OF THE PROJECT:

Analysis of Advertising and Sales Promotion Strategies

OBJECTIVE:

To identify the various type of advertising strategies

To identify various type of sale promotional techniques and strategies

To know the concept of sale promotion

To understand the objective and purpose of sale promotion

To identify the effectiveness of advertising

To identify the effectiveness of sale promotional activities

To identify the influence of advertising on consumer buying behaviour

To identify the influence of sale promotional techniques on sale volume of the

business

To explore the disadvantages of sale promotion

NEED FOR THE TOPIC:

The essence of being in business by any business outfits is to produce for sales and profits.
In order to remain in business an organization must generate enough sales from its
products to cover operating costs and post reasonable profits. For many organizations,
sales estimate is the starting point in budgeting or profit planning. It is so because it must
be determined, in most cases, before production units could be arrived at while production

II
units will in turn affect material purchases. However, taking decision on sales is the most
difficult tasks facing many business executives. This is because it is difficult to predict,
estimate or determine with accuracy, potential customers demands as they are
uncontrollable factors external to an organization. Considering, therefore, the importance
of sales on business survival and the connection between customers and sales, it is
expedient for organizations to engage in programmes that can influence consumers
decision to purchase its products. This is where advertising and brand management are
relevant. Advertising is a subset of promotion mix which is one of the 4ps in the marketing
mix i.e product, price, place and promotion. As a promotional strategy, advertising serve as
a major tool in creating product awareness and condition the mind of a potential consumer
to take eventual purchase decision.

METHODOLOGY AND PROCEDURE OF WORK:

Before embarking on the details of research methodology and techniques, it seems

appropriate to present a brief overview of the research process. Research process consists
of series of actions or steps necessary to effectively carry out research and the desired
sequencing of these steps.

Data source: Primary and secondary

Research approach: Survey method
Research instrument: Questionnaire
Sampling plan: Sample unit (consumers)
Sample size: 100 consumers
Contact method: Personal contact

CHAPTERIZATION:

Chapter 1. Introduction
Chapter 2. Objective and Scope
Chapter 3. Limitations
Chapter 4. Theoretical Perspective
Chapter 5. Methodology and Procedure of Work
Chapter 6. Analysis of Data
Chapter 7. Findings, Inferences and Recommendations
Chapter 8. Conclusion

III
Chapter 9. Summary of the Project Report
Chapter 10. Annexures

DETAILED INFORMATION OF GUIDE:

Name: Prasun Newar

Address: B2/450, Sohana Spaze, IT Park, Sec. 48, Sohna Road, Gurgaon-18

Qualification: MBA

Designation: Sales & Marketing Management

Special Field work: Sales & Marketing

Experience: 10 Years

IV
 REFERENCES

Batra, R., J. G. Myers, D. Aaker. 1996. Advertising Management. New Jersey: Prentice
Hall Inc.

Blackwell, R.; Miniard, P.W.; Engel, J.F. (2000), Consumer Behaviour, South-Western
College Pub, ISBN 0030211085

Darmon, R.; Laroche, M. (1991), Advertising in Canada a Managerial Approach,

McGraw-Hill Ryerson Limited, ISBN 0-256-13412-X, Toronto

Gerard, Tellis J. 1998. Advertising and Sales Promotion Strategy. USA: Addison-
Wesley Educational Publishers, Inc.

Websites:

http://www.articlesbase.com/marketing-articles/advertising-and-sales-promotion-
1005018.html

http://www.davedolak.com/promo.htm

http://www.ehow.com/facts_5399358_sales-promotion-vs-advertising.html

http://en.wikipedia.org/wiki/Sales_promotion

V
 LIST OF FIGURES, CHARTS, DIAGRAMS

Figure No. Topic Page No.

1 Indian Advertising and the Economy.............................................................2

2 Advertising Agency Economic Conditions....................................................7

3 Frame of reference.......................................................................................38

4 Sale Promotion strategies.................................................................................43

VI
 LIST OF TABLES

Table No. Topic Page No.

1. Indian Advertising Revenues by Select Media...................................................5

2. Top Advertisers...................................................................................................6

3. Consumer-oriented sale promotion tools for various marketing objectives.....47

VII