ADVERTISING AND SALES PROMOTION
Advertising is the dissemination of information by non-personal means through paid media where the source is the sponsoring organization. The messages carried in-medias. Advertising objectives serve as guidelines for the planning and implementation of the entire advertising programme. It helps the consumer to save their time in purchases. It helps the manufacturer sell their products. The relation between wholesalers and retailers is improved through advertising. Sales promotion consists of diverse collection of incentive tools, mostly shortterm designed to Sales promotion tools vary in their specific objectives. A free sample. Stimulates consumer trial, while a free management advisory service comments a long-term relationship with a retailer stimulates quicker and / or greater purchase of a particular product by consumers or the trade. Rationale of sales promotion may be analyses for Short-term results, Competitive Pressure, Buyers’ expectations, Low quality of retail selling. There is wide acceptance that sales promotion is one of the most mismanaged of all marketing functions. The report contained advantages, purpose of advertising and sales promotion. It also discussed rationale, plan preparation, integrating and planning advertising and sales promotion
Adverting is only one element of the promotion mix, but it often considered prominent in the overall marketing mix design. Its high visibility and pervasiveness made it as an important social and encomia topic in Indian society. Promotion may be defined as “the co-ordination of all seller initiated efforts to set up channels of information and persuasion to facilitate the scale of a good or service. Promotion is most often intended to be a supporting component in a marketing mix. Promotion decision must be integrated and co-ordinated with the rest of the marketing mix, particularly product/brand decisions, so that it may effectively support an entire marketing mix strategy. The promotion mix consists of four basic elements. They are:1. 2. 3. 4. Advertising Personal Selling Sales Promotion, and Publicity 1. Advertising is the dissemination of information by non-personal means through paid media where the source is the sponsoring organization.
Personal selling is the dissemination of information by non-personal
methods.2. Chicago. not just for one customer.” FROM THE ABOVE DEFINITIONS : • • • •
Advertisement is a MESSAGE to large groups. This requires that the target consumers should be specifically identified and that the effect which advertising is intended to have upon the consumer should be clearly indicated. the objectives of advertising should be specific. has defined advertising as “any form of non-personal presentation or promotion of ideas. contacts between audience and employees of the sponsoring organization. like face-to-face. Sales promotion is the dissemination of information through a wide variety of activities other than personal selling. The objectives of advertising were traditionally stated in terms of direct sales. Publicity is the disseminating of information by personal or nonpersonal means and is not directly paid by the organization and the organization is not the source. The source of information is the sponsoring organization. 3.
. It is in the form of NON-PERSONAL COMMUNICATION. It persuade the GENERAL PUBLICS to purchase the goods or services. by an identified sponsor.
Each advertisement is a specific communication that must be effective. Advertising messages are IDENTIFIED with the advertiser.
DEFINITION OF ADVERTISISNG
The American Marketing Association. Advertising objectives serve as guidelines for the planning and implementation of the entire advertising programme. advertised. It is PAID FOR by advertiser to publisher. it is to view advertising as having communication objectives that seek to inform persuade and remind potential customers of the worth of the product. advertising and publicity which stimulate consumer purchasing and dealer effectiveness. but for many target buyers. goods or services. Now. Advertising seeks to condition the consumer so that he/she may have a favourable reaction to the promotional message. This means that specific objectives should be set for each particular advertisement campaign. Advertising is a form of promotion and like a promotion. 4.
It provides an opportunity to the customers to compare the merits and demerits of various substitute products. 4.
. It helps to establish a direct contact between manufacturers and consumers. 5. Advertising stresses quality and very often prices. It increase sales volume. It helps easy introduction of products into the markets. BENEFITS TO CONSUMERS : 1. 5. large scale production assured by advertising enables the seller to sell the product at a lower cast. It helps the consumer to save their time in purchases. It increases the rate of the turnover of stock. Sales volume is increased by advertising. 3. Further more. It helps the manufacturer sell their products. 3. Easy sale of the products is possible since consumers are aware of
the product and its quality. It helps to create an image and reputation not only of the product but also of the advertiser. It supplements the selling activities. 2. 4.on the other increases profits. It helps quick selling is possible which leads to more production at less cast. BENEFITS TO WHOLESALERS RETAILERS :
1. On the one hand. 2. The relation between wholesalers and retailers is improved through advertising. it reduces the cost of production and. stimulates markets regarding the existing Product and repeated sales
BENEFITS TO MANUFACTURERS : 1. 2. Consumer knowledge about the product is increase by advertising. Advertising introduces new products. It enables them to have product information. It helps and supports the salesman in selling the products.Advantages of Advertising
• • • • • • • • • • • Advertising is considered multi dimensional. It is a technique of sales promotion. The reputation credited is shared by the wholesalers and retailers and alike. It helps number of marketing activities. Maintaining retail price is possible. This forms an indirect guarantee to the consumers.
coupons. cash refund.
BENEFITS TO COMMUNITY : 1. persuade and remind them of the goods and receives that are offered. free goods. Hence sales efforts are reduced. In the words of the late president Roosevelt of the USA. Sales promotion includes tools for consumer promotion (for example samples. Advertising leads to large scale production creating more employment opportunities. prizes. merchandise allowances. Advertising in general is educative in nature. 3. radios. Its creates wants for a better standing of living. Advertising has made more popular and universal the uses of such inventions as the auto mobiles. trade promotion (for example buying allowances. 4. Modern advertisements are highly informative. The contact established with the customer by a salesman is made permanent through advertising. “Advertising nourishes the consuming power of man. This is perhaps the only medium through which consumers could know the varied and new uses of a product.
. dealer sales contests). sales rallies). contests.Sales promotion efforts are directed at final consumers and designed to motivate.
CONCEPT OF SALES PROMOTION
Sales promotion consists of diverse collection of incentive tools. contest). mostly short-term designed to stimulate quicker and / or greater purchase of a particular product by consumers or the trade. and sales-force promotion (for example bonuses.
BENEFITS TO SALESMEN : 1. Introducing the product is made easy. Sales persons adopt several techniques for sales promotion. Advertising prepares necessary ground for a salesman to begin his work. warranties. It spurs individual exertion and greater production”.3. advertising and display allowances. 2. demonstrations. cooperative advertising. 4. it is essentially a form of education and the progress of civilization depends on education’. 3.. 2. various household appliances. ‘Advertising brings to the greatest number of people actual knowledge concerning useful things. The salesman can weigh the effectiveness of advertising when he makes a direct contact with the customer.
Stanton defines sales promotion as all those activities other than advertising. the problems and costs of informing the market increase. premiums.Definitions of Sales Promotion
W. a producer must inform middlemen as well as the ultimate consumers or business users about the product. persuades and reminds prospective and current customers and other selected audiences about a company and its products. As the number of potential customers grows and the geographic dimensions of a market expand. iii) To induce present customers to buy more : Present customers may be induced to buy more by knowing more about a product. From the marketer’s perspective. A free sample stimulates consumer trial. in turn must inform retailers and retailers must inform consumers.
Purpose of sales Promotion
Sales promotion tools vary in their specific objectives.
. sales promotion serves three essential roles it informs. contests and similar devices. public relations and publicity that are intended to stimulate customer demand and improve the marketing performance of sellers. while a free management advisory service comments along-term relationship with a retailer. Wholesalers. free samples may be distributed or money and merchandise allowance may be offered to business to stock and sell the product.
Objectives of Sales Promotion
The basic objectives of sales promotion are: i) To introduce new products : To induce buyers to purchase a new product. its ingredients and uses. Because distribution channels are often long. ii) To attract new customers : New customers may be attracted through issue of free samples. iv) To help firm remain competitive : Sales promotions may be undertaken to meet competition from a firm. Therefore.J. a product may pass through many lands between a producer and consumers. personal selling.
Types of Sales Promotion
Money Target market Direct Indirect
Goods Direct Indirect
Services Direct Indirect
Free Guarantees Stamps co-operative coupons goods group coupons advertising vouchers premium participation Price vouchers stamps Consumer money offers events reduction money coupons equivalent free gifts special equivalent vouchers for competitions trade-in exhibitions competitions services offers and displays Extended credit Guarantees Delayed Free group Dealer Stamps. invoicing gifts participation loaders coupons sale orTrial events Free Trade loyalty Vouchers for return offers services schemes services coupons Trade-in Risk incentives Competitions vouchers offers reduction money schemes equivalent Coupons Coupon Coupons Vouchers Free vouchers Vouchers points services Sales Bonus Points Free Points systems for Group force commission system gifts systems services participation Money Money Event events equivalent equivalent admission Competitions
. vi) 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.v) 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.
The companies can no longer afford not to set objectives or to evaluate results after the event.Strategic role of sales promotion
Because sales promotion is essentially used as a tactical device. First. an objective for sales promotion must be established in the same way that an objective is developed for advertising.while the loss of revenue from special price reductions is not recorded at all. For example. pricing. Contrary to this advertising has been always considered as a strategic process of building brand value over the longer term.
. This can be attributed to the confusion as to what sales promotion really is . In order to manage a company's sales promotion expenditure more effectively. so that each promotion increases the effectiveness of the next. or to fail to have some company guidelines. or distribution. It will not be surprising then to learn that suitably adapted most consumer goods sales promotional techniques can be applied to industrial goods. a 1 Euro case allowance on a product with a contribution rate of 3 Euro per case has to increase sales by 50% just to maintain the same level of contribution. Some companies record it as advertising expenditure. there is one essential step that must be taken. it often amounts to a series of unconnected gimmicks to lacking any coherence. Compare this against sales promotion which is commonly used to help the company retain a tactical advantage.
SALES PROMOTION PLAN PREPARATION
There is wide acceptance that sales promotion is one of the most mismanaged of all marketing functions.which often results in expenditures not being properly accounted for.
Sales promotion of industrial products
Industrial goods are always sold to other businesses and this has the effect of changing the emphasis placed on certain elements of the marketing mix. There is no reason why there should not be a strategy for sales promotion. others as sales force expenditure and others as general marketing expenditure .
and frame can be achieved. In other words. but the evidence shows clearly that advertising and promotion can work together to produce a greater effect. All the means of communication and the messages transmitted must be Co-ordinate to make some that they are saying the sense thing. Of course. less sensitive. This is a much – Abused word. but it must be direct if it is to be controllable. Spencer used to spend almost nothing on advertising.
There Is A Price Paradise The standard model of advertising and the brand suggests that a strong brand is less sensitive to price than a weaker one. but the message has to be one that its really new and interesting. The Stores Themselves Are – In Their Way – Advertising. We can safely make two statements about brand communication :
Every brand must have some means of communicating with its buyers. if anything. There are two common sense reasons for integration. If advertising and promotion are to
. confused consumers don’t buy. Yet it was an enormously powerful brand. the average sensitivity to price also increases. The high cost and difficulties of mass advertising are seen as one of the major challenges to fast moving consumer good brands. where as we would expect our brand buyers to be. When advertising increases sales. and It Is Difficult to think of major brands other than retailers those have done without advertising. a seemingly successful campaign has made buyers more sensitive to price. In addition.Advertising. Advertising has been seen as one of the primary tools of Brand Building. Both these are retailers. The First reason is that integration creates synergy. The integration of advertising and promotion gives the consumer a coherent message. Promotion And The Brand
By now it is clearly understood that The role of Advertising and promotion In fast moving consumer Good Markets. Integrating Advertising And Promotions The answer to the problem of conflicting communications must be to Integrate advertising and Promotion. This may not be advertising. Do All Brands Need Advertising? The basic assumption is that brands need advertising but some strong brands apparently do not. they have stores which people pass by go into.
Thus it is easier to increase the sales through sales promotion. Advertising objectives must include Long-Term brand building. share and other targets) Positioning (How the brand is positioned in the consumer’s mind) Strategy (How the brand is Going to compete in this market) Advertising strategy (What role advertising has next period with in the overall strategy) And Budget (What moneys are available to spend on advertising promotion).
. It helps sales by adding some durable and long-term value to the product. we need some background – which Is not a very formal restrictive planning. Sales promotion is a direct and almost open inducement to consumers to immediately try the product. It performs the immediate task of increasing current sales. the best way to increase sales is through the Sales promotion rather than advertising. they must be mutually consistent. which are to be. but for a process of thinking through what the advertising and promotion are trying to achieve. Advertising in mostly an indirect way for consumer to buy a product.
Advertising: A firm as its basic of fundamental tool production uses it. It normally has long-term objectives like building brand awareness or building consumers loyalty or repositioning a brand.achieve synergy and to build a cumulative effect in consumers’ minds. Sales: It is generally designed to supplement advertising and facilitates personal selling. Thus from all the above studies it can be concluded that for the marketing of any product. They may of Course also include shorter-term tasks such as announcing a new variation or promotion. fulfilled which is not an easy task.
Planning Advertising And Promotion
The advertising and promotion plan is only one part of the overall marketing plan and must fit within it. It is so because in advertising a product there is many criteria’s. In order to start the advertising plan. It aids selling by temporarily changing the existing price value relationship of the product. • • A situation analysis (Where we are and why) Objectives (What the brand is aiming for in sales. From The brand plan we should expect to find the following elements.