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Section-I

1. Functions of Advertising:- Thefunctions of advertising are not limited to just


giving your brand exposure to the markets which you target for your business or
spreading its influence, but also for spreading the word about the usefulness of
your products and encouraging new customers to give your services and
products a try.

Each function, the advertising boasts of, has its own limitations and is
responsible for its own effects whether positive or negative. The effects and
outcome of each of the function might be different but the ultimate goal of
taking the company to success and the means of implementation are same. And
that’s what makes advertising so much interesting to both, the business owners
and the advertisers.

a. Communicating a Brand’s Identity


b. Supplying Information to Consumers
c. Persuading customers to go for your Products
d. Generating demand
e. Maintaining Customer Base
f. Pricing Comparisons
g. Previewing New Trends

2. Nine types of advertising media available to an advertiser are:


(1) direct mail
(2) newspapers and magazines
(3) radio advertising
(4) television advertising
(5) film advertising
(6) outdoor advertising
(7) window display
(8) fairs and exhibition and
(9) specially advertising!

3. Ad copy is a term that refers to the main text of a clickable advertisement,


whether it is a contextual or a pay per click ad. The text of the ad copy is
generally the second and third lines of an ad displayed on a search engine
results page or any other web page, and is between the title and the display
URL.
4. Direct mail advertising can include cooperative mailings, where a
company's ad goes out with other businesses, or a solo advertising piece that
only contains information from one business. Cooperative advertising saves a
company money, but solo ads are more effective in generating leads and orders.
However, compared with all the different forms of advertising available to
companies, there are certain pros and cons of direct mail advertising.

There are some advantages to direct marketing campaigns. Typically,


direct marketing campaigns request responses from potential customers, making
the results trackable and allowing companies to quickly determine if the
campaign is successful. Direct marketing campaigns are also beneficial to test
consumer responses with a small campaign before scaling up and launching a
full, expensive campaign. This method of marketing also builds brand loyalty as
some customers enjoy receiving information on deals and discounts, and easily
become repeat customers.

5. It is true that copy writing is an art and the copywriter has a very important role to play
in advertising creativity. Copy writing does not admit any stereotyped rules and classification. There
are various styles in which a copy can be prepared and presented. The following classification of
advertisement copy may be studied;

i. Descriptive Copy

ii. Scientific Copy

iii. Institutional Copy

iv. Topical Copy

v. Reason why Copy

vi. Human Interest Copy

a. Humorous Copy

b. Fear Copy

c. Story Copy

d. Predicament Copy

vii. Colloquial copy or Conversational Copy

viii. Personality Copy

ix. Prestige Copy

x. Educational Copy

xi. Suggestive Copy

xii. Expository Copy


xiii. Questioning copy

6. Advertising is a form of communication intended to persuade an audience to purchase


products, ideals or services. 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 that they are a major nuisance to internet users, as well as being a financial
burden on internet service providers.[1] Advertising increasingly invades public spaces, such as
schools, which some critics argue is a form of child exploitation.[2]Advertising frequently uses
psychological pressure (for example, appealing to feelings of inadequacy) on the intended
consumer, which may be harmful. As a result of these criticisms, the advertising industry has
seen low approval rates in surveys and negative cultural portrayals[3].
Criticism of advertising is closely linked with criticism of media and often interchangeable.
Critics can refer to advertising's

 audio-visual aspects (cluttering of public spaces and airwaves)


 environmental aspects (pollution, oversize packaging, increasing consumption)
 political aspects (media dependency, free speech, censorship)
 financial aspects (costs)
 ethical/moral/social aspects (sub-conscious influencing, invasion of privacy, increasing
consumption and waste, target groups, certain products, honesty)

8. A manufacturers' representative (rep), also known as


independent salesrepresentatives or sales agent, is an individual, sales agency or
company that sells a manufacturer's products to wholesale and retail customers.

12. A sales manager is someone who is responsible for leading and guiding a team of
sales people in an organization. They set sales goals & quotas, build a sales plan,
analyze data, assign sales training and sales territories, mentor the members of his/her
sales team and are involved in the hiring and firing process.

11. A sales quota refers to a time-bound sales target set by management for a particular
region, sales team, or individual rep. Sales quotas are often attached to a daily,
monthly, or quarterly period. Sales quotas can be measured in a number of different
ways, including by profits, sales, or rep activity.
Before deciding how to set sales quotas for your team, you need to understand
the different four main types of quotas. Sales quotas are often based on revenue, sales
activity, volume, or some combination of the three.
a. Revenue Quotas
b. Activity Quotas
c. Volume Quotas
d. Combination Quotas
SECTION – B
13. Advertising has certain basic features. The important ones are:

i. Paid form:
Advertising is always a paid form of communication and hence commercial in
nature. Thus, advertising can clarify be distinguished from publicity which is not
paid for by the sponsor.
ii. Non-personal presentation:
Advertising is a non-personal presentation. Whatever the form of presentation,
advertising is always directed to a mass audience rather than to any individual.
At time:, e advertising message may give the impression of a personal appeal.
However, all the sensations are non-personal in nature.

iii. Sell or promote ideas, goods and services:


Advertising is aimed at promoting and selling not only tangible and physical
goods, but also ideas and services. Most often services like banking and
insurance are sold through advertising. For example, Posts and Telegraph
Department advertises to promote the use of PIN CODE for fast delivery of
letters. The scope of advertising is wide and designed to sell not only goods but
services and ideas also.

iv. Identified sponsor:


Advertising always has an identified sponsor. In other words, advertising
discloses or identifies the source of the opinions and ideas it presents. On the
other hand, the sponsor for publicity or propaganda can remain anonymous.

v. Inform and persuade:


Advertising usually informs the potential consumer about products and services,
their benefits and utilities. It also persuades the consumers to purchase such
products and services.

In short, advertising is the art of influencing human action and awakening of a


desire to possess products and services. It is a mass persuasion activity duly
sponsored by the manufacturer, retailer, or dealer for whom the advertising is
done.

14. We can start our discussion of media by defining and describing different kinds of
media that children are using today. Modern media comes in many different
formats, including print media (books, magazines, newspapers), television,
movies, video games, music, cell phones, various kinds of software, and the
Internet. Each type of media involves both content, and also a device or object
through which that content is delivered.

Print Media
The term 'print media' is used to describe the traditional or "old-fashioned" print-
based media that today's parents grew up with, including newspapers,
magazines, books, and comics or graphic novels. Historically, only wealthy
publishers had access to sophisticated type-setting technologies necessary to
create printed material, but this has changed in recent years with the widespread
accessibility of desktop publishing software and print-on-demand publication
services such as Lulu.com (LINK). More recently, electronic book readers such
as the Amazon Kindle which store hundreds of books on a single device and
which allow readers to directly download books and newspapers have become
popular.
Television
Television has been entertaining American families for over fifty years. In the
beginning, there were few programs to pick from, but today, there are literally
hundreds of general and specialty channels to choose from and thousands upon
thousands of programs. Where it was once the case that programs had to be
watched at the time they were broadcast on a television, this is no longer the
case. Today, viewers can summon a movie or television episode whenever they
want, through many cable or satellite services' pay-per-view or free on-demand
services. They may also download or stream episodes from the Internet and
watch them on their computers. Viewers may use DVR (digital video recorder)
devices, such as a Tivo to record programs at one time and watch them at
another time. Viewers with certain cell phones may even watch programs
through their cell phones.
Movies
Movies (films) are the oldest form of motion picture technology capable of
capturing lifelike video-style images. Originally, movies could only be consumed
at a neighborhood movie theater, but these days movies are widely available for
people to consume in their homes, on their computers, and even in through their
telephones. Commercial movies are broadcast on television, and via cable and
satellite services which may feature High Definition (HD) video resolution and
sound, essentially allowing the movie theater experience to be replicated in a
home theater environment. Commercial movies are also distributed on DVD and
Blu-Ray disks, which can be rented from stores and through-the-mail services
such as Netflix, and through downloadable computer files, which can be legally
downloaded from movie rental services such as Amazon and iTunes or streamed
through Netflix or on-demand cable services. Home movies produced by
amateurs with inexpensive video cameras are now also widely available through
video sharing websites such as YouTube.com and Vimeo.com.
Video Games
Available since the early 1980s, video games have only grown in popularity
among youth. Today's games make use of advanced graphics and processors to
enable three dimensional game play featuring highly realistic landscapes and
physics simulations, and the ability to compete against other players through a
network connection. Modern video games are immersive, exciting and
increasingly interactive. Players feel like they really are in the situation because
of the life-like graphics and sounds. Through video games, youth can extend
their pretend play, as they become soldiers, aliens, race car drivers, street
fighters, and football players.

Popular gaming consoles today include Nintendo Wii, Microsoft Xbox


360 and Sony Playstation III. There are also hand held consoles which enable
mobile game play such as Nintendo's DS. As well, some video games can also
be played on personal computers. Most video games use a hand-held device
with buttons, joysticks, and other devices for manipulating the characters on the
screen. However, the newer games systems use motion-detecting sensors, such
as accelerometers which encourage players to move their entire body to
complete game activities. For example, in Wii Tennis, a player swings his entire
arm to have the player on the screen hit the tennis ball.

Games such as the recently popular World of Warcraft are played in a networked
universe shared simultaneously by thousands of gamers at once. Players may be
across the street from one another or across the globe using the the Internet to
participate in a shared three-dimensional world in which each player can control
one or more avatars, and chat using text or voice.

17. Marketing mix implies combinations of various elements that help the
company in attracting customers, to buy the products offered by the
company. It includes product, price, place, and promotion. Promotion is a
marketing mechanism, that involves informing the customers about the
product offered by the company, and includes advertising, public relation,
personal selling, direct marketing, etc.

Most of the people are having the opinion that promotion and advertising
are one, and the same thing but both of the terms differ in the sense that
advertising is that form of communication, which is intended to induce
potential customers, to buy your product, over the competitors. It is a tool
that reaches thousands of customers in one go.
our main focus is to explain all the difference between advertising and
promotion. But, first of all, you must know that promotion is a marketing
technique, and advertising is a promotional tool.

Content: Advertising Vs Promotion

1. Comparison Chart
2. Definition
3. Key Differences
4. Conclusion

Comparison Chart

BASIS FOR
ADVERTISING PROMOTION
COMPARISON

Meaning Advertising is a technique of The set of activities that


driving public attention spread a word about the
towards a product or service, product, brand or service is
through paid network. known as promotion.

What is it? Subset Superset

Objective Building brand image and Short term sales push


boosting sales.

Strategy Promotional strategy Marketing strategy

Effects Long term Short term

Results Generally slow, can be seen Instant


over time.

Cost involved Highly expensive Cost Effective


BASIS FOR
ADVERTISING PROMOTION
COMPARISON

Best suited for Medium and big enterprises All enterprises

SECTION – C

18. Advertising is a form of communication intended to persuade an


audience (viewers, readers or listeners) to take some action. It includes the
name of a product or service and how that product or service could benefit
the consumer, to persuade potential customers to purchase or to consume that
particular brand. Modern advertising developed with the rise of mass
production in the late 19th and the early 20th centuries. Commercial
advertisers often seek to generate increased consumption of their products or
services through banding, 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, out door 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. Non profit organizations may rely on free mode of persuasion, such
as a public service announcement.

In the current fragmented market, the marketers are facing tough competition
from their competitors. Each marketer has to prove himself to be better than
his competitors. The cut-throat competitive market environment has made the
advertising field very experimental and hence advertisers are adopting
different measures to attract the attention of their target customers. They try
to present their advertisements in such a way that catches instant customer
attention. For this, they use a blend of message appeals like rational,
emotional, ethical, etc. to make a positive impact on the target audience.
Aspirations, comfort, convenience, economy, efficiency, fear, love, nostalgia,
pride, health, luxury, patriotism, sex and safety are some of the ideas that
engage the minds and touch the hearts of the target audience, and ultimately
motivate a response.

Being business entities, sometimes companies are carried away with their
profit motives. They forget that as they are a part of the society, they have a
responsibility towards the society, as well. Any activity of the company
should not have an adverse effect on the society. The same stands true in
respect of advertising also. With the growth in the reach and frequency of
mass media, the advertising industry has also grown by leaps and bounds. It
implies that the persons exposed to advertising are also growing with the
growth of mass media and the advertising industry. On the one hand, it is a
good sign for the marketers as they can now reach a larger audience by using
mass media but on the other hand, it has increased their role towards the
society. Now marketers have to be more socially responsible while making
and presenting their advertisements as the presentation of advertisements can
have a positive as well as a negative impact on the society.

In this ad-mad world, the viewers are exposed to thousands of ads. It is


almost impossible for them to pay attention to all those ads. Only those ads
are able to catch their attention, which are different in some way or another
from the other bouquet of ads. To break this monotony and to make
advertising catchy, marketers are dishing out a wide variety of
advertisements. They try to give a different touch to make it look appealing.
Sometimes they succeed in their experiments, at other times their efforts raise
the eyebrows of the viewers. It is often seen that in the name of
experimentation and in the desire to win the market game, marketers every
now and then are involved in making ads, which cannot be termed as
`ethical'.

Advertising carries several responsibilities. Advertising informs the public so


that they can be aware of products and make informed choices among
different products or brands. Advertising also benefits businesses in assisting
them to sell their products.

But while dispensing its role as a dream merchant, advertising has also been
in the vortex of controversy of the many ills that it brings to society. It is
accused of encouraging materialism and consumption, of stereotyping, of
causing us to purchase items for which we have no need, of taking advantage
of children, of manipulating our behavior, using sex to sell, and generally
contributing to the downfall of our social system.

Advertising does not function in a vacuum but in a market environment


where several forces like consumer needs, business interests and government
regulations are at work. It is a powerful force in terms of its persuasiveness
and functions a critical social role. Moreover the high visibility and
pervasiveness, it generates criticism and controversy. Much of this
controversy springs from the fact that advertising is used more as a
persuasive communication tool thereby creating serious impact on the tastes,
values and lifestyles of society.

In today's challenging market economy, advertising has become an important


element of the society. Moreover, advertisements play a powerful
constructive role in the economic growth of a country. On the contrary, they
can often play a negative role in hurting the sentiments of an individual or the
society. Hence, it is important that advertising professionals observe high
ethical standards in regard to truthfulness, human dignity and social
responsibilities.

20. Sales budget is the budget of total sales expressed in terms of quantity or money. It is the
between two factors i.e. sales quantity and selling price.
Following factors are taken into consideration while forecasting for sales quantity:

- Analysis of Past Trend


- Reports by Salesmen
- Market Research and Market Survey
- General Economic Conditions
Following factors are taken into account while forecasting for selling price:

- Cost price of the product


- Expected amount of profits
- Selling price charged by the competitors
- Advertisement and sales promotion techniques used by the company.
When analysts attempt to budget sales, they rely on many different data sets to
determine the best way to allocate financial resources. Furthermore, sales budgeting
require analysts to forecast different scenarios. Colin Drury, author of “Management and
Cost Accounting” explains that the sales budget is the cornerstone of every other
budget: Thus, accurately predicting future sales has significant implications on the
expected performance of the organization.

Previous Sales
Past results provide great insight regarding potential earnings. Thus, when analysts
forecast expected sales they add significant weight to past sales data. Sales budgeting
also require observing general trends year-to-year. For example, if the business shows
consistent ten percent yearly increase in sales, the company has grounds to forecast a
continued rise. Forecasters place greater weight on some years or months than others:
a trekking company in Colorado, for example, places greater emphasis on sales from
the spring and summer as opposed to the winter season. Likewise, a luxury handbag
company in the midst of a long recession might rely more on the previous year’s data
than sales from years during an economic boom.

Competition
Expected competition is another component of the sales budgeting forecast. Companies
with little competition have greater predictability than a business with dynamic
competition. If the organization pre-empts a competitor unveiling a new, similar product,
the business may conservatively preempt reduced sales in the months of the competing
product’s introduction into the market. Organizations in an oligopolic market structure
have the most difficult time assessing a competitor’s influence on sales. This is because
businesses repeatedly undercut other companies in an attempt to gain a competitive
edge. Therefore, businesses in an oligopoly project higher sales than competitors only if
they can anticipate being the company that issues the good or service at the lowest
cost.
Cost of Materials
A primary factor affecting sales budgeting is the cost of materials. Part of the forecasting
process is anticipating the expected change in price for materials necessary for
production. Sometimes, accurate projections can mean the difference between steep
losses and high profits. An example is fuel and airline ticket sales: A Reuters article
explains that when oil hit close to $147 a barrel in 2008, airlines incurred significant
losses as a result of the industry’s failure to anticipate this increase. Higher costs tend
to result in passing these costs to the customer in the form of higher prices: These
higher prices affect sales, usually negatively if other firms do not raise prices. Therefore,
predicting the changes in the cost of materials is a large component of sales budgeting.

Product Development
Sales budgeting includes taking into account the effects of new products, product
expansion and entering into new markets. Pre-empting the expected sales of product
development requires the business to engage in market research. Market research
includes rolling out the product in limited locations and issuing consumer feedback
surveys. Businesses then extrapolate these limited results on a larger scale in order to
anticipate future sales.