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PIONEER INSTITUTE OF PROFESSIONAL STUDIES, INDORE

ASSIGNMENT

MBA III SEMESTER


61305 (M): ADVERTISING & SALES PROMOTION

Q.1. Explain Product Life Cycle of any Brand of your choice and write about the marketing
strategies employed by the company during various stages.

ANS:- Product Life Cycle of Apple iPhone


Often you would have seen new products coming into the market. These products
gradually evolve, receive their share of market acceptance and then eventually vanish
from the market. Sure, many products, which are decades and decades-old may still not
have vanished from the market. These are some long-living legends that are unique.
However, even these products, as they are today, are not the same as they were years
back. There is a continuous evolution happening, a product lives its life, develops, grows
old and naturally doesn’t remain the same forever.Product Life Cycle (PLC) is a sequence
of stages through which products pass. It outlines the typical journey traversed by a
product in its lifetime right since the time it is introduced in the market to the time phases
out.The Product Life Cycle Model was introduced in the 1950s but remains relevant even
today, even though people have started producing their own variations of this model.
Introduction Stage of an Apple iPhone
This is the stage wherein a product is introduced to the market. Usually, the prices are kept
as low as possible to capture the maximum market share.
However, this is only in the case of mass products.In the case of high-end products like
the Apple iPhone, the strategy is different.In the Introduction Stage of the Product Life
Cycle of Apple iPhone, the price is kept high so as to maintain the exclusivity of
ownership.iPhone users wouldn’t prefer everyone owning an iPhone, that’s why the price
is so kept so as to attract only a premium segment of the audience.

Growth Stage of Apple iPhone


By the time a product enters the growth phase, the audience has already started
building a certain affinity towards it.This is the time when product quality is maintained
well so as to not let the audience down.As far as marketing is concerned, firms start
spending more money on marketing now in order to both reach out to a wider audience as
well as to become a top-of-the-mind brand among the primary target group.

Because of the product, its reviews, and marketing activities, the sales are expected to pick
up sharply in the growth stage.In the case of Apple iPhone, every subsequent launch gets
in some more sales and adds to the overall sales volume.Here, we are considering the
iPhone as a whole, but if we were to delve deeper, we will realize that every iPhone model
is at a different stage of the product life cycle of Apple iPhones.

Maturity Stage of Apple iPhone


During this phase, the rate of increase in sales may decline but the overall sales are
maintained at a certain level.
By this time, many competing products enter the market. Some of them may be genuinely
good products, whereas some of them will be a replica of your own product.
Currently, the mid-generation of iPhones such as the iPhone 8 will be in the maturity
stage where sales have stabilized more or less.

Decline Stage of Apple iPhone


By this time, the audience moves on to better things in life. They are no longer interested in
your product because they offer nothing new as compared to other products that are
currently in the introduction or growth phase.
A product in the decline phase has become technologically obsolete.
Most common Product Life Cycle management tactics implemented by brands to make
the most out of their product during decline include lowering prices, removing after-sales
support to reduce marketing and personnel costs, or discontinuing the product.
Marketing Strategies – Stages of Product
Life Cycle
1. Marketing Strategies for Introduction Stage:

1. Rapid Skimming Strategy


2. Slow Skimming Strategy
3. Rapid Penetration
4. Slow Penetration

2.Marketing Strategies for Growth Stage:

Several possible strategies for the stage are as under:

1. Product qualities and features improvement

2. Adding new models and improving styling

3. Entering new market segments

4. Designing, improving and widening distribution network

5. Shifting advertising and other promotional efforts from increasing product awareness to product
conviction

6. Reducing price at the right time to attract price-sensitive consumers

7. Preventing competitors to enter the market by low price and high promotional efforts
3.Marketing Strategies for Maturity Stage:

Following possible strategies are followed:


1. To Do Nothing
2. Market Modification
3. Product Modification
4. Marketing Mix Modification

4.Marketing Strategies for Decline Stage:


Company may follow any of the following strategies:
1. Continue with the Original Products
2. Continue Products with Improvements
3. Drop the Product
Q.2. How has the Indian Advertising Industry evolved during the years?
ANS :- Introduction

The Indian advertising industry has evolved from being a small-scaled business to a full-
fledged industry. The advertising industry is projected to be the second fastest growing
advertising market in Asia after China. It is estimated that by 2018, the share of ad
spend in India’s Gross Domestic Product (GDP) will be around 0.45 per cent.
The Indian government has given tremendous support to the advertising and marketing
industry. Advertising expenditure is likely to increase in the financial sector, driven by
Reserve Bank of India (RBI) policies which could result in a more favourable business
environment. Also, proposed licences for new banks and better market sentiments
render the advertising and marketing industry in India a fertile space.

Market size
Print contributes a significant portion to the total advertising revenue, accounting for
almost 41.2 per cent, whereas TV contributes 38.2 per cent, and digital contributes 11
per cent of the total revenue. Outdoor, Radio and Cinema make up the balance 10 per
cent.
India’s digital advertisement market is expected to grow at a compound annual growth
rate (CAGR) of 33.5 per cent to cross the Rs 25,500 crore (US$ 3.8 billion) mark by
2020.*
The Internet's share in total advertising revenue is anticipated to grow twofold from eight
per cent in 2013 to 16 per cent in 2018. Online advertising, which was estimated at Rs
2,900 crore (US$ 435 million) in 2013, could jump threefold to Rs 10,000 crore (US$ 1.5
billion) in five years, increasing at a compound annual rate of 28 per cent.

Recent Developments:
 GroupM, the US-based advertising media company, has acquired a majority stake in MediaCom India, a joint venture between GroupM
India and Madison Media group's principal shareholder Sam Balsara, for an undisclosed amount.
 Dubai-based Iconiction Ltd plans to enter the Indian retail analytics space in partnership with local entrepreneur Mr Anil Hirani, to set up
Iconiction India Ltd.
 Flipkart, India's largest e-commerce marketplace, has re-entered the private label business by launching Smart Buy, with a view to boost
earnings and fill gaps in its product selection.
 Cognizant Technology Solutions has announced the acquisition of Mirabeau BV, a Netherland-based digital marketing and customer
experience agency, which is expected to expand Cognizant’s capabilities in digital business domain in Netherlands and Europe.
 The Indian Railways is working on a new advertising policy aimed at installing 100,000 big digital screens at 2,175 railway stations across
the country, which is expected generate Rs 11,770 crore (US$ 1.76 billion) revenue annually.
 Times Internet Limited plans to invest US$ 100 million in development of smart marketing technology platform Colombia, which will serve
its marketers to engage with around 200 million digital users per month.
 Zarget, a Software-as-a-Service (SaaS) based conversion rate optimisation start-up, has raised US$ 1.5 million in seed funding from Accel
Partners, Matrix Partners and Freshdesk Inc's founder Mr Girish Mathrubootham, which will be used to build more marketing related tools.
 Snapdeal.com, one of India’s largest and fast growing e-commerce companies, has acquired TargetingMantra (Insightful Pvt. Ltd), which is
a Gurugram-based marketing and personalisation services company, as part of its plan to enhance the experience for its customers.
 Indian Railways has appointed Ernst & Young (EY) as a consultant to discover its advertising potential, which is in line with the Railway
Budget proposal of increasing non-fare earnings to over Rs 5,000 crore (US$ 750 million) in five years.
 MoMark Services, a mobile based customer engagement platform for small and medium businesses, has raised US$ 600,000 from
YourNest Angel Fund and LNB Group, to scale up its product offerings and talent acquisition.
 Tata Motors has appointed renowned football player Lionel Messi as the global brand ambassador for Tata cars and utility vehicles globally,
with an aim to tap the youth market and expand visibility and presence of Tata Motors in newer markets.
 Advertising agency J Walter Thompson has launched its global digital agency network 'Mirum' in India which will provide services such as
strategy and consulting services, campaigns and content, experience and platforms, analytics and innovation and product development,
with the target to increase non-traditional media revenues to 40-45 per cent from 35 per cent currently.
 DDB Mudra Group has planned to launch ‘Track DDB’, a brand that addresses the data-led world of marketing communications, which will
provide services like creative, data and digital analytics, database marketing, CRM, digital and mobile marketing in India.
 All India Radio (AIR) has appointed ‘releaseMyAd’ as a virtual agency to let advertisers book ads for all of AIR’s station online.
 Google is all set to help India implement Prime Minister Mr Narendra Modi's "Digital India" initiative, and the government has a well laid out
plan to realise it, said Google's Chief Internet Evangelist Mr Vinton G. Cerf. Digital India is Rs 1.13 trillion (US$ 16.95 billion) government
initiative that seeks to transform the country into a connected economy, attract investment in electronics manufacturing, and create millions
of jobs and support trade.
 As companies look for better productivity and increasing efficiencies in a tough market environment, market research firm Nielsen has
launched its first consumer neuroscience lab in India at its Mumbai headquarters. The neuroscience lab will augment the company's
research capabilities in packaging and research, improving their effectiveness.
 MPS North America LLC, the US subsidiary of Bengaluru-based publishing solutions provider MPS Ltd, has acquired Electronic Publishing
Services Inc. (EPS), a New York-based firm with interests in content creation, art rendering, design and production. The deal will allow MPS
to strengthen its foothold in North America.
 Jaipur-based Girnar Software Private Limited, which owns and operates the website CarDekho.com, announced that it has raised US$ 50
million in its second round of funding. The funding was led by Hillhouse Capital with participation from Tybourne Capital and Sequoia
Capital.
 ZipDial has become the first Indian technology product startup to be bought by Twitter in what is the third such deal led by a global
corporation following the acquisitions by Facebook and Yahoo. The ZipDial deal is expected to cost Twitter US$ 34-35 million. This feature
is expected to help Twitter reach people who will come online for the first time in countries such as Brazil, India and Indonesia, mostly using
a mobile device.
 Telecom major Axiata's subsidiary, Axiata Digital Advertising (ADA) has formed a joint venture with US-based advertising tech firm
Adknowledge to get into the US$ 47 billion digital ad market in the Asia Pacific region and has identified India as a 'key' market.

Government Initiatives
The Governments of India and Canada have signed an audio-visual co-production deal
which facilitates producers from both countries to harness their collective artistic,
technical, financial and marketing resources, and encourage exchange of culture and
art between the two countries. The agreement is also likely to lead to better promotion
of Indian locales for shooting films. "The agreement will also lead to the transparent
funding of film production and boost export of Indian films into the Canadian market," as
per the agreement.
India and Poland are seeking to enhance cooperation in the digitisation and restoration
of film archives. This was decided in a meeting between Mr Bimal Julka, Secretary of
Information and Broadcasting, India, and a delegation from Poland led by Ms
Malgorzata Omilanowska, Secretary of State. The two countries will form a joint working
group that will help improve cooperation in fields such as student exchange
programmes, animation, films and digitisation, among others. Mr Rajyavardhan Singh
Rathore, Minister of State for Information & Broadcasting, has announced that Indian
government has planned to increase advertising spend on the digital platform which will
help increases the government’s presence in digital media.
Q. 3. Explain the DAGMAR and AIDA models of Advertising.
ANS :-HISTORY
DAGMAR is an advertising model proposed by Russell Colley in 1961. Russell Colley advocated that
effective advertising seeks to communicate rather than to sell. Advertisers discover whether their
message conveyed enough information and understanding of a product to their consumers and also
its respective benefits from clear objectives.

The DAGMAR Model

1. AWARENESS
 Awareness of the existence of a product or a service is needful before the purchase behaviour is
expected. The fundamental task of advertising activity is to improve the consumer awareness of
the product.
 Once the consumer awareness has been provided to the target audience, it should not be
forsaken. The target audience tends to get distracted by other competing messages if they are
ignored.
 Awareness has to be created, developed, refined and maintained according to the characteristics
of the market and the scenario of the organization at any given point of time.
 The objective is to create awareness about the product amongst the target audience.
2. COMPREHENSION
 Awareness on its own is not sufficient to stimulate a purchase. Information and understanding
about the product and the organisation are essential. This can be achieved by providing
information about the brand features.
 Example: In an attempt to persuade people to budge for a new toothpaste brand, it may be
necessary to compare the product with other toothpaste brands, and provide an additional
usage benefit, such as more effective than other toothpaste because it contains salt or that this
particular toothpaste is a vegetarian toothpaste, which will, in turn, attract more customers.
 The objective is to provide all the information about the product.
3. CONVICTION
 Conviction is the next step where the customer evaluates different products and plans to buy the
product. At this stage, a sense of conviction is established, and by creating interests and
preferences, customers are convinced that a certain product should be tried at the next
purchase.
 At this step, the job of the advertising activity is to mould the audience’s beliefs and persuade
them to buy it. This is often achieved through messages that convey the superiority of the
products over the others by flaunting the rewards or incentives for using the product.
 Example: Thumbs up featured the incentive of social acceptance as “grown up”. It implied that
those who preferred other soft drinks were kids.
 The objective is to create a positive mental disposition to buy a product.
4. ACTION
 This is the final step which involves the final purchase of the product. The objective is to
motivate the customer to buy the product.
Advantages of DAGMAR Approach
A major contribution of Colley’s DAGMAR approach was a specification of what constitutes a good
objective.
What is the AIDA Model in Marketing?
The AIDA Model, which stands for Attention, Interest, Desire, and Action model, is an advertising effect
model that identifies the stages that an individual goes during the process of purchasing a product or service.
The AIDA model is commonly used in digital marketing, sales strategies, and public relations campaigns.

The AIDA Model Hierarchy


The steps involved in an AIDA model are:

 Attention: The first step in marketing or advertising is to consider how to attract the attention of
consumers.
 Interest: Once the consumer is aware that the product or service exists, the business must work on
increasing the potential customer’s interest level.

For example, Disney boosts interest in upcoming tours by announcing stars who will be performing on the
tours.

 Desire: After the consumer is interested in the product or service, then the goal is to make
consumers desire it, moving their mindset from “I like it” to “I want it.”

For example, if the Disney stars for the upcoming tour communicate to the target audience about how great
the show is going to be, the audience is more likely to want to go.
 Action: The ultimate goal is to drive the receiver of the marketing campaign to initiate action and
purchase the product or service.

Therefore, the AIDA model says that Awareness leads to Interest, which leads to Desire, and finally, Action.

Let us consider ways to use the AIDA model by looking into each part of the hierarchy.

First Step: Attention


Often, the attention part is overlooked by many marketers. It is assumed that the product or service already
got the attention of the consumers – which may or may not be the case. In any event, don’t just assume that
everyone is already aware of your product. One of the best approaches to attracting consumer attention is
what’s called “creative disruption” – breaking existing patterns of behavior through a highly creative
message. This can be done in several ways:

 Placing advertisements in unexpected situations or locations. This is often referred to as guerrilla


marketing.
 Creating shock in advertisements through provocative imagery.
 An intensely targeted message. This is also referred to as personalization.

Essentially, the goal is to make consumers aware that a product or service exists.

Second Step: Interest


Creating interest is generally the hardest part. For example, if the product or service is not inherently
interesting, this can be very difficult to achieve. Make sure that advertising information is broken up and easy
to read, with interesting subheadings and illustrations. Focus on what is most relevant for your target market
in relation to your product or service, and on conveying only the most important message you want to
communicate to consumers.

A good example of this is Wendy’s “Where’s the beef?” ad campaign that focused on the fact that Wendy’s
hamburgers contained more beef than their competitors’ hamburgers.

Third Step: Desire


The second and third steps of the AIDA model go together. As you are hopefully building interest in a product
or service, it is important that you help customers realize why they “need’ this product or service. Think
about how the content in infomercials is presented – they aim to provide interesting information on the
product, along with benefits of buying it – benefits that ideally make consumers want the product more and
more. Infomercials do this extremely well by showing the product being used in several creative situations.
Convey to the audience the value of the product or service, and why they need it in their life.
Fourth Step: Action
The last step of the AIDA model is getting your consumer to initiate action. The advertisement should end
with a call to action – a statement that is designed to get an immediate response from the consumer. For
example, Netflix uses persuasive text to convince the consumer to try their free trial. Netflix communicates
how convenient their product is and highlights its value, then urges consumers to sign up for a free trial.

Good advertising should elicit a sense of urgency that motivates consumers to take action RIGHT NOW. One
commonly used method for achieving this goal is making limited time offers (such as :free shipping).

New Developments in the AIDA Model


Many criticize the AIDA model for being too simplistic. For example, the AIDA model does not take into
consideration different possible points of sale. Marketing will be very different for a customer visiting an
online store than it is for a customer looking to purchase a new car at a dealership. Therefore, there are
many variations of the AIDA model such as the:

 AIDCAS (Action, Interest, Desire, Confidence, Action, Satisfaction) model


 REAN (Reach, Engage, Activate, and Nurture) model
 NAITDASE (Need, Attention, and Interest; Trust, Design, and Action; Satisfaction and Evaluation)
model
Q. 4. Advertising agencies are varied in nature and types. Elaborate upon the statement.
Advertising Agencies - Meaning, its Role and
ANS :-

Types of Agencies
“The work of a tailor is to collect the raw material, find matching threads, cut the cloth in desired shape, finally stitch the cloth and deliver it to the
customer.”

Advertising Agency is just like a tailor. It creates the ads, plans how, when and where it should be delivered and hands it over to the client. Advertising
agencies are mostly not dependent on any organizations.

These agencies take all the efforts for selling the product of the clients. They have a group of people expert in their particular fields, thus helping the
companies or organizations to reach their target customer in an easy and simple way.

The first Advertising Agency was William Taylor in 1786 followed by James “Jem” White in 1800 in London and Reynell & Son in 1812.

Role of Advertising Agencies

1. Creating an advertise on the basis of information gathered about product


2. Doing research on the company and the product and reactions of the customers.
3. Planning for type of media to be used, when and where to be used, and for how much time to be used.
4. Taking the feedbacks from the clients as well as the customers and then deciding the further line of action

All companies can do this work by themselves. They can make ads, print or advertise them on televisions or other media places; they can manage the
accounts also. Then why do they need advertising agencies? The reasons behind hiring the advertising agencies by the companies are:

 The agencies are expert in this field. They have a team of different people for different functions like copywriters, art directors, planners, etc.
 The agencies make optimum use of these people, their experience and their knowledge.
 They work with an objective and are very professionals.
 Hiring them leads in saving the costs up to some extent.

There are basically 5 types of advertising agencies.

1. Full service Agencies


 Large size agencies.
 Deals with all stages of advertisement.
 Different expert people for different departments.
 Starts work from gathering data and analyzing and ends on payment of bills to the media people.
2. Interactive Agencies
 Modernized modes of communication are used.
 Uses online advertisements, sending personal messages on mobile phones, etc.
 The ads produced are very interactive, having very new concepts, and very innovative.
3. Creative Boutiques
 Very creative and innovative ads.
 No other function is performed other than creating actual ads.
 Small sized agencies with their own copywriters, directors, and creative people.
4. Media Buying Agencies
 Buys place for advertise and sells it to the advertisers.
 Sells time in which advertisement will be placed.
 Schedules slots at different television channels and radio stations.
 Finally supervises or checks whether the ad has been telecasted at opted time and place or not.
5. In-House Agencies
 As good as the full service agencies.
 Big organization prefers these type of agencies which are in built and work only for them.
 These agencies work as per the requirements of the organizations.

There are some specialized agencies which work for some special advertisements. These types of agencies need people of special knowledge in that field.
For example, advertisements showing social messages, finance advertisements, medicine related ads, etc.
Top 10 Nature of Advertising
1. Element of Marketing Mix
Advertising is an important component of the promotion mix. Promotion mix in turn is a
component of marketing mix. Price, product, promotion and physical distribution are the
four main elements in a marketing mix. Unless the promotion mix is effective, the other
elements of marketing, viz., price, product and physical distribution cannot achieve their
respective objectives.
2. Promotion Mix
Advertising is an essential element in the promotion mix. Personal selling, sales
promotion, publicity and advertising are the four elements in the promotion mix. Advertising
has been considered as the most effective method of promotion. For, it creates demand,
stimulates sales, and reaches customers quickly and effectively. An advertisement is mass
communication, the other media of promotion are individual communication or face-to-face
communication.
3. Mass Communication
Mass communication is the basic purpose of advertising. Advertising not merely conveys
information to only one person but to a very large group of persons who may be expected to
purchase the article. The mass communication media such as radio, television, newspapers,
billboards and magazines, etc., are used for advertising purposes, even though print media
have been adopted in many countries for mass communication. Electronic media have now
become more popular for advertising purposes. Television is one of the most effective media
of advertising.
4. Messages
An advertisement carries a message which motivates and inspires customers to purchase a
particular product. It gives information on the attributes of the goods and services advertised.
The voice and sight combine together and make the message very effective. The visual effect
plays an important role in carrying the messages, which is provided by advertising.

5. Price of Advertising
Advertising activity is undertaken by advertising agencies which are professional
organizations and charge a price for advertising Space, time, language, etc., are sold by
advertising agencies.
6. Sponsor
An advertisement is sponsored by some identified advertiser, disclosing ideas, messages and
information.

7. Persuasive
An advertising message is persuasive and informative enough to motivate potential
customers. The advertiser provides information to the prospects who are willing to purchase
his goods and services. Advertising is the most efficient means of reaching the people. It has
been pointed out that success in business depends on persuasion. Advertising informs,
entertains and ultimately persuades a group or society to purchase the advertised products.
Persuasion is an essential factor in advertising, for if an advertisement does not persuade, the
message will be merely a piece of information.
8. Element of control
The time, place, message and direction of advertising are controlled to make them effective
and purposive. The selection of the medium, message and time is carefully done to achieve
the most economical results.

9. Identifiable
Advertising is identifiable from the sponsor’s point of view as well as from the point of view
of audience. The message and presentation should be recognized by customers.

10. Target Group


Advertising aims at a target group. Although it does not distinguish between target and non-
target group, it is basically designed to influence the target group. The factors such as the
desire to buy, purchasing power, status, entertaining element and being attractive to suit the
target group are considered carefully while preparing an advertisement.
Q.5. Advertising should be ethical. Elaborate upon your opinion mentioning if it can be ethical?
ANS:- Ethics in Advertising
Ethics means a set of moral principles which govern a person’s behavior or how the activity is conducted. And advertising means a mode of
communication between a seller and a buyer.

Thus ethics in advertising means a set of well defined principles which govern the ways of communication taking place between the seller and the
buyer. Ethics is the most important feature of the advertising industry. Though there are many benefits of advertising but then there are some points
which don’t match the ethical norms of advertising.

An ethical ad is the one which doesn’t lie, doesn’t make fake or false claims and is in the limit of decency.

Nowadays, ads are more exaggerated and a lot of puffing is used. It seems like the advertisers lack knowledge of ethical norms and principles. They just
don’t understand and are unable to decide what is correct and what is wrong.

The main area of interest for advertisers is to increase their sales, gain more and more customers, and increase the demand for the product by
presenting a well decorated, puffed and colorful ad. They claim that their product is the best, having unique qualities than the competitors, more cost
effective, and more beneficial. But most of these ads are found to be false, misleading customers and unethical. The best example of these types of ads is
the one which shows evening snacks for the kids, they use coloring and gluing to make the product look glossy and attractive to the consumers who are
watching the ads on television and convince them to buy the product without giving a second thought.

Ethics in Advertising is directly related to the purpose of advertising and the nature of advertising. Sometimes exaggerating the ad becomes necessary
to prove the benefit of the product. For e.g. a sanitary napkin ad which shows that when the napkin was dropped in a river by some girls, the napkin
soaked whole water of the river. Thus, the purpose of advertising was only to inform women about the product quality. Obviously, every woman knows
that this cannot practically happen but the ad was accepted. This doesn’t show that the ad was unethical.

Ethics also depends on what we believe. If the advertisers make the ads on the belief that the customers will understand, persuade them to think, and
then act on their ads, then this will lead to positive results and the ad may not be called unethical. But at the same time, if advertisers believe that they
can fool their customers by showing any impractical things like just clicking fingers will make your home or office fully furnished or just buying a lottery
ticket will make you a millionaire, then this is not going to work out for them and will be called as unethical.

Recently, the Vetican issued an article which says ads should follow three moral principles - Truthfulness, Social Responsibility and Upholding Human
Dignity.

Generally, big companies never lie as they have to prove their points to various ad regulating bodies. Truth is always said but not completely. Sometimes
its better not to reveal the whole truth in the ad but at times truth has to be shown for betterment.

Pharmaceutical Advertising - they help creating awareness, but one catchy point here is that the advertisers show what the medicine can cure but never
talk about the side effects of that same thing or the risks involved in intake of it.

Children - children are the major sellers of the ads and the product. They have the power to convince the buyers. But when advertisers are using children
in their ad, they should remember not to show them alone doing there work on their own like brushing teeth, playing with toys, or infants holding their
own milk bottles as everyone knows that no one will leave their kids unattended while doing all these activities. So showing parents also involved in all
activities or things being advertised will be more logical.

Alcohol - till today, there hasn’t come any liquor ad which shows anyone drinking the original liquor. They use mineral water and sodas in their
advertisements with their brand name. These types of ads are called surrogate ads. These type of ads are totally unethical when liquor ads are totally
banned. Even if there are no advertisements for alcohol, people will continue drinking.

Cigarettes and Tobacco - these products should be never advertised as consumption of these things is directly and badly responsible for cancer and other
severe health issues. These as are already banned in countries like India, Norway, Thailand, Finland and Singapore.

Ads for social causes - these types of ads are ethical and are accepted by the people. But ads like condoms and contraceptive pills should be limited, as
these are sometimes unethical, and are more likely to loose morality and decency at places where there is no educational knowledge about all these
products.

Looking at all these above mentioned points, advertisers should start taking responsibility of self regulating their ads by:

 design self regulatory codes in their companies including ethical norms, truth, decency, and legal points
 keep tracking the activities and remove ads which don’t fulfill the codes.
 Inform the consumers about the self regulatory codes of the company
 Pay attention on the complaints coming from consumers about the product ads.
 Maintain transparency throughout the company and system.

When all the above points are implemented, they will result in:
 making the company answerable for all its activities
 will reduce the chances of getting pointed out by the critics or any regulatory body.
 will help gain confidence of the customers, make them trust the company and their products.
Q.6. Give examples of some very famous Advertising Copy.

Advertising Copy: Definition, Types,


ANS:-

Examples
An advertising copy is a term used to describe the main text used in the advertisement. The text
could be a dialogue, a catchy punch line or a company’s dictum.

It is a print, radio or TV advertising message that aims at developing and retaining an interest of the
target customer and prompting him to purchase the product within a couple of seconds.

According to the UK advertising guru, David Ogilvy, ‘people do read lengthy advertisements if they
are skillfully written’. The most significant part of the copy is the headline, and sometimes even a
small shift in the text brings magnanimous results. A short ad copy is the most popular in consumer-
product advertising, or an artful, indigenous lengthy ad copy may work wonders too. An
advertisement copy is mostly a result of extensive advertising and consumer research designed by
professional copywriter’s employees by advertising agencies. Drafting an ad copy demands skill and
effort. An ad copy involves a complete investigation of the target audience. There is a substantial
effort that goes into making an ad copy. Companies outsource their ad campaigns. The
advertisement industry flourishes when they succeed in delivering the advertisement just like its
copy.

ESSENTIALS OF A GOOD ADVERTISEMENT COPY


An ad copy is made of various principles, all of which are integrated into a few lines of the copy that
the advertisers are allowed to engage. It combines search engine optimisation with marketing
strategies and is used in all kinds of advertisements, not only pay per click and contextual ads. The
essentials of a good ad copy are as follows:

Credibility- An ad copy must focus on the credibility or the reliability of the ad. The copywriters
should essentially flaunt an element of reliability in the ad so that the consumers are convinced to go
ahead with the product. The credibility of an advertisement is the extent of honesty in the ad
message. Misleading and misinterpreted ads harm the reputation of the selling house.
Attention- The keywords, punch lines or phrases that seize the attention of the potential consumers
or some component in the ad that attracts the target audience is essential in a good advertising copy.
Assurance of benefit– An advertisement copy must contain some promise of the benefits that the
product offers if the consumer purchases and uses the product.
Brief and clear- An ad copy must be brief and clear, i.e. it must be to the point. It doesn’t mean that
the copy must omit the important elements of the ad. A clear copy is easy and quick to be read by the
readers. It is self-explanatory, definite, and precise. Clarity makes way for interpretation.
Apt and conforming- The copy must be apt and must match the needs of the prospects. A copywriter
has to use the most suitable USP. Every ad copy must meet the conforming standards and rules
acceptable to the advertising media and the laws of the land. A copy that offends the morality
challenges religious beliefs of the people is not welcomed by any media.

Types Of Advertising Copy


Technique or formula of presentation of an ad is the way in which a message is presented. Various
types of advertisement copies are formulated to inform, inspire, influence, affect, engrave, and
inscribe the mindset of the reader. Certain elements are significant in a copy like the attention,
conviction, sentiment, instinct, and education.

The advertisement copies can be divided into six main types:

 Human interest ad copy


 Educational ad copy
 Reason why? ad copy
 Institutional ad copy
 Suggestive ad copy
 Expository ad copy

Human Interest Copy


Human interest copy entices the emotions and senses of its prospective customers rather than the
intellect and judgment. This advertisement copy defines the product to people instead of sticking to
facts. Human Interest copy gets to selling part indirectly or reluctantly. It focuses on people’s
undying interest in themselves, their families and friends. The most important forms of Human
Interest Copy are- humorous copy, fear copy, predicament copy, and story copy.
HUMOROUS COPY
Humorous ad copy is a copy which is designed to make the reader laugh. This copy brings about a
smile on the readers face.

FEAR COPY
Fear ad copy arouses a sense of fear in the reader to save their lives or to protect themselves from
something. It creates interest among its consumers by instilling a sense of fear in them. Fear
advertisement copies must be designed carefully as it may carry an unpleasant association on the
viewer’s mind concerning the product.

STORY COPY
In a story copy, a story is narrated in a very interesting way to develop interest amongst its prospects.
Customer experiences can also be narrated in the form of a story.

PREDICAMENT COPY
In a predicament copy, the copy provides a dramatic explanation about the product. This copy
explains all the advantages and benefits of using the product. The predicament copy usually takes
over the other three forms of the advertisement copy.

Reason Why Copy


A Reason Why advertising copy offers reasons as to why the consumers are expected to buy the
product of a particular brand. The reason why copy appeals directly to the intellect or the judgment
of an individual than the emotions. It tries to explain the product qualities and benefits by giving
evidence in the forms of testimonials, guarantees, customer experiences, and so on.

The approach of this copy explains reasons to readers as to why the advertised product has to be
purchased. The format of this copy states a fact about a product or a service in the headline and then
explaining why the fact is true in its further text. This form of advertising works better in print than
on media, because broadcasting an ad has a limitation with respect to time. There are good chances
of the viewer missing the headline or the reasons why the headline claims to be the truth.
Educational Ad Copy
An educational ad copy attempts to inform, update and prompts its clients to buy a product by
educating the prospective customers. It is designed to educate the public about the attributes of the
product. Introductory ad copies are usually created in this way. It is the responsibility of every
manufacturer to educate the prospects regarding the product and endure a warm welcome amongst
its clients. Such an ad copy signifies the benefits and special features of the product.

Institutional Ad Copy
Institutional copy doesn’t sell its goods and services. Institutional ad copy aims at promoting the
selling house. It focuses to build a strong reputation for the selling house. The main objective of this
type of ad copy is to create, maintain, and increase the goodwill through its philosophy, objectives
and policies so that the prospective customers register it in their minds. Institutional copy invites the
target customers to the selling outlet. It is also called as prestige or corporate advertising.

Example:
Suggestive Copy
A suggestive copy suggests or attempts to convey the message to the readers directly or indirectly and
prompts them to purchase the product. Suggestive ad copy works best when the reader is confused
regarding the quality of the product and is juggling with decision making regarding his purchase.

Expository Copy
Expository copy conflicts with the Suggestive copy. An Expository copy doesn’t conceal anything
about the product but instead exposes the facts that are clear and apt. It describes the product
features, uses, merits, operation and benefits of the products or services. Even a swift glance
registers quickly in the consumer’s mind and is quite easy to remember or pick up.

Writing an ad copy is an art of putting in the words or the elements that create a strong desire to
possess the product wherein the product features satiate the consumers desire to possess the
product. It is the ability to eliminate the surplus and substitute it with the essential elements without
jeopardising the meaning.

Action is the essential end goal of any advertisement copy, which is to receive some reaction from the
target audience for the advertisement. It could be just about visiting the page of the brand on the net,
enquiring or filling a form or the actual purchase itself.
Q.7. At times companies end up doing mistakes in the Advertising Copy. Give few examples of
the same.

ANS:-

12 Bad Ads and Marketing Failures To Learn What Not To Do with example

1. Pepsi Trivializes Social Justice Movements


Here’s What Happened
This one’s still fresh. At the beginning of April 2017, Pepsi debuted an ad depicting Kendall
Jenner in the middle of a photoshoot when she spots a protest happening in the middle of the
street. Beckoned by a nod from a passing protestor, she whips off her wig to join in.

From cnn.money.com

Things don’t get really bad, though, until she walks up to a police officer manning the protest
crowd and hands him a Pepsi, therefore stopping protests—and socioeconomic conflict, racial
tension, gender inequality, and really just, like all bad vibes—forever.
Why It Missed the Mark
Pepsi mistook social justice movements for opportunities to sell soda, which is pretty
disrespectful to the people who have suffered and sacrificed for the sake of protest and change.
What’s worse? At the center of Pepsi’s apology wasn’t BLM supporters or Women’s Marchers
as expected, but Kendall Jenner herself.
Takeaway
Wanting to lend a helping hand for social change is good. Using serious social issues to sell a
product is insensitive and insulting.

2. Bloomingdale’s Is…Okay with Date


Rape?
Here’s What Happened
Bloomingdale’s wished their catalogue readers a cheery holiday with this creepy ad copy:

From thewrap.com

The internet was outraged, most social media users finding it unbelievable that the ad was even
real and actually approved by Bloomingdale’s higher-ups.
Why It Missed the Mark
In an attempt to stand out, Bloomingdale’s lapse in judgment resulted in an ad that possibly was
supposed to be quirky or funny, but ended up being creepy and outrageously offensive.
For women? It’s frightening. For men? It’s embarrassing. And for victims of date rape?
Absolutely horrifying.
Takeaway
“What are the implications of what we’re saying? Are those implications good or bad?” That’s
what you have to ask yourself with every piece of ad copy you approve or write.

3. Bud Light Says No Doesn’t Mean No


Here’s What Happened
In 2015 Bud Light debuted a new tagline to go with their Up For Whatever campaign:

From fortune.com.

One might call it an honest mistake, since at first glance it seems like it does fit in really well
with the whole “Up For Whatever” personality the brand is going for. But then we remember
that the phrase “No Means No” is a thing—and that combining alcohol and the implication that
no….doesn’t mean no? in an ad is a bad idea.
Why It Missed the Mark
USA Today said it perfectly: “[the ad evoked] concerns about alcohol-fueled rape culture.”
Takeaway
Again: “What are the implications of what I’m saying?” You and your marketing team must ask
this at every turn. To not do so is irresponsible marketing.
4. Airbnb Gets Passive Aggressive
About Taxes
Here’s What Happened
In 2015 Airbnb was angry about a hotel tax policy that meant Airbnb hosts and guests had to pay
a lot of money in taxes. Not classifying themselves as a hotel service, the company was
understandably angry.
Then, in the most passive aggressive advertising campaign ever, Airbnb put up ads all around
San Francisco suggesting what the city should do with all that Airbnb tax money.

From gizmodo.com

Why It Missed the Mark


The bottom line—whether or not you agree it’s unfair that Airbnb has to pay the hotel tax—is
that the ads made Airbnb look like a bunch of jerks. Actually, that’s what CEO Brian Chesky
said about the ads: “It made us look like jerks.”
Takeaway
Be careful about the emotions you’re evoking in your audience. If an ad might make its reader
feel like she just got caught in a middle school-style catfight between you and the local
government, it’s probably best to scrap it.
5. Burger King Botches Their Own
Version of “Where’s Waldo.”
Here’s What Happened
Let’s throw it all the way back to 1985. This one’s just one big giant mess, so let’s break it down:

 Burger King kicks off a campaign called “Where’s Herb?” by telling customers that if they can find Herb
at a Burger King location (a random and disappointingly ordinary guy not very worthy of being the
centerpiece of an ad campaign), they’ll win $5,000

 Finally, a 15-year-old spotted Herb but was rejected the cash price

 Then Burger King gave the cash prize to his 16-year-old friend instead because the actual Herb
discoverer was younger than the not-so-well-advertised contest age minimum of 16.

From goretro.com
Why It Missed the Mark
A few reasons: 1) No one cared who Herb was. 2) It was just too random: who is this guy and
why are we trying to find him? No one really knew. 3) The contest rules were poorly
communicated and resulted in a nasty PR situation.
Takeaways
If you’re going to have a brand mascot, try to have it make some sense. Don’t try to get people to
care about your mascot or promotion without giving them a reason to first. (Oh, and be very,
very clear about contest age restrictions.)
6. Pepsi Runs a Disastrous Lottery
Here’s What Happened
Yes, Pepsi again. In 1993 in the Philippines, Pepsi ran a lottery, in which—if you found the
bottle cap with the right code on it—you could win $40,000.
The problem? Pepsi announced the wrong code. So instead of 1 winning bottle cap, there were
suddenly 800,000 winning bottle caps. Pepsi refused to pay; outrage ensued.

From
marketingshmarketing.com.

Why It Missed the Mark


Do we even have to say it? False hope and botched lotteries are not good ways to do business.
Takeaways
If you’re going to run a lottery or contest or anything promising a big, life-changing reward,
please make sure you’re running it carefully and 100% free of mistakes.

7. Fiat Moonlights as a Stalker


Here’s What Happened
In 1992, 50,000 Spanish women got a letter from a stalker saying things like, “We met again on
the street yesterday and I noticed how you glanced interestedly in my direction.” They then
invited the female recipient to embark with them on an adventure.Except the letters weren’t from
a stalker. They were from Fiat, the car company.
Lucky for Fiat, there isn’t a trace of photo
evidence online. Here’s how cracked.com. imagined the letters.

Why It Missed the Mark


Though the ad might have been cute and clever if it were clear that it was an ad, it wasn’t clear
that it was an ad. If Fiat would’ve put their logo on it and a disclaimer message to the tune of
“you are not actually being stalked,” things might not have gone so poorly.
Takeaways
Be clear about your intentions in your advertising, and point it out plainly if you have to: “This is
an advertisement. We are not actually stalking you.”

8. Starbucks Prints a 9/11 Ad


Here’s What Happened
In 2002, Starbucks released this ad:
From snopes.com

Which, because of the 1) two cups, 2) strangely square-tipped blades of grass that resembled
buildings, 3) zooming dragonfly, and 4) ad copy “Collapse Into Cool”, made people think
Starbucks was…poking fun? (or just really that ignorant?) at the 9/11 catastrophe.
Why It Missed the Mark
Obviously it’s wildly offensive. Was it just a huge coincidence? I don’t even know—I still don’t
understand the logic behind this one.
Takeaways
Stay alert for symbolism that might be—whether intentionally or unintentionally—depicted by
the words or images in your ad.
9. Panasonic & Woody the
Woodpecker
Here’s What Happened
In 1996, Panasonic’s Japan branch marketed a touchscreen PC with cartoon character Woody the
Woodpecker as its brand mascot.

From lingualift.com

Oh, and the campaign’s slogan? “Touch Woody, the Internet Pecker.”
Why It Missed the Mark
It’s probably best not to use phallic references in your marketing. The fact that it was accidental
made Panasonic look even worse.
Takeaways
Make sure your brand’s message translates well (and appropriately) when you’re doing business
overseas.
10. Turner Broadcasting Promotes
with a Bang
Here’s What Happened
In early 2007, Turner Broadcasting had small blinking LED devices depicting a cartoon
character installed in 10 major cities around the US. The intention was to use guerrilla marketing
to create hype for the upcoming Aqua Teen Hunger Force movie.

From geek.com
Why It Missed the Mark
The nondescript ad freaked people out, causing Bostonites to call reports of what looked like
bombs. Panic ensued. A bomb squad was called in. And people were not happy.
Takeaways
Don’t make ads that look like bombs.
But seriously, when you’re distributing or installing exhibits as part of guerrilla marketing, be
extra careful. If there’s any possibility it’ll make passersby feel unsafe, scrap it.

11. Hyundai Belittles Suicide Victims


Here’s What Happened
In 2013, Hyundai ran a commercial in the UK that essentially said, “Our cars are so safe you
can’t even commit suicide in them.”

The point was that the sedan doesn’t produce harmful emissions like other cars do, and
unfortunately the campaign’s creators thought a good way to get that point across was to show a
man’s unsuccessful suicide.
Why It Missed the Mark
Just like Pepsi trivialized social justice movements, Hyundai trivializes the heartbreak and
devastation of suicide. You can’t be a person who’s suffered from suicidal thoughts—or a person
who has lost someone due to suicide—and enjoy Hyundai’s ad, and that’s why they missed the
mark.
Takeaways
Don’t try to force your ad message into social issues if they don’t fit. Pro tip: they probably don’t
fit. Don’t let your desire to be quirky or clever undermine serious social issues.

12. LifeLock’s CEO Dares You to Steal


His Identity
Here’s What Happened
In 2007, LifeLock CEO Todd Davis posted his social security number on a billboard and dared
the world to steal his identity.

From wired.com

Plot twist that’s not actually a plot twist because everyone saw it coming: a lot of people stole his
identity.
Why It Missed the Mark
It’s not just because this ended up being huge headache for Todd Davis on a personal level. To
make matters worse, the fact that people actually called Davis out on his dare and proved
LifeLock’s security breachable made the whole campaign painfully embarrassing for LifeLock
and everyone involved.
Takeaways
Don’t dare your audience to do something you don’t actually want them to do. People will call
your bluff, so be prepared to handle the consequences.

Our Biggest Takeaway


What do all these takeaways have in common? Prudence. Thoughtfulness. Social consciousness.
If you’re unsure about whether or not an ad you’re about to put out there is offensive, ask. Ask a
stranger on the street if you have to. Ask a neighbor. Ask a friend. Will my ad offend someone?
What kind of mental associations will this conjure for my brand?
If the answer’s less than stellar, scrap it.
Q.8. How can advertising be made effective? Mention few examples, which outstand.
ANS:- 11 Simple Tips to Creating An Effective Ad

Quick Links to Article Topics


1. What Makes You Stand Out
2. Use A Powerful Headline
3. Make Them An Offer
4. Talk About The Benefits
5. Tell Your News
6. Take Away Their Fear
7. Call To Action
8. Make It Seem Urgent
9. Use Testimonials
10. Use Exciting Graphics
11. Complete Contact Information

1. What Makes You Stand Out From Your


Competition?

What makes you stand out from the competition?

People come in contact with advertisements from all types of businesses all the time.

So, what will make your potential customers buy your company’s product or service versus going with one of
your competitors? That’s what you have to figure out and focus on with your advertisement. Show your
potential customers why your business is their number one choice and why they shouldn’t even consider
your competitors. Then, there is a good chance that they won’t.

For example, my marketing firm is about to start working with an immigration attorney and I already see
several things that can make her stand out from the competition. For one, she’s an immigration attorney that
is also an immigrant. She also contributes to an online magazine to assist others who wish to immigrate to
the U.S. through education. She is a colorful personality and instantly likeable. And although she does not
deliver different services than her competitors, she has some unique ways that she conducts business that
few others do. We plan on using all this when developing her USP.

2. Use A Powerful Headline: Grab Their Attention!

Getting attention can be subtle too

People scan things quickly. They come into contact with so many advertisements each day that they can’t
possibly read each one. This is why you have to make sure that your advertisement actually grabs and keeps
their attention.

You do that with an effective headline.

The greatest advertising man in history, David Ogilvy, said “On average, five times as many people read the
headline as read the body copy. When you have written your headline, you have spent eighty cents out of
your dollar.”

3. Make Them An Offer They Can’t Refuse!


Consumers love a bargain. So offer them a good one so that they’ll come back to you time and time again.

Whether you’re offering an unbeatable price, a free trial, free shipping or a bundled package, going out of
your way to provide your customers with a good deal will help you be successful.

Once you come up with your irresistible offer, make sure that you advertise it proudly. When people see that
you have something great to offer them, they will have a difficult time resisting it.

In determining how much you can spend for an introductory product or service, think of the overall Client
Lifetime Value (CLV), the amount a client will benefit a company over time, for your firm.

One client I worked with was initially hesitant to lose $150 in profit for an intro service to acquire a new
client. He was extremely surprised to discover though that those new clients had a CLV of $5,000 – a number
more than 33 times the initial investment in terms of lost profit. So he had been losing $4,850 every time he
didn’t invest the $150 to obtain a new client.
4. Talk About The Benefits – What’s In It For
Them!

Ah, a desireable benefit

Explaining the features of your products or services is important, but explaining the benefits for the customer
is really what it’s all about. After all, people are more interested in what they get from your services than
what you do. Make sense?

This is not complicated. Here’s what you do to figure this out:

1. List out all your services (or products).


2. For each one, list out everything that service (feature) does.
3. Then, next list out what the result of each feature is – the benefit for the client.
For example, say you are a tax accountant. One feature of your service is that you have a website where
clients can log in and access their tax documents 24/7. The huge benefit is that it saves time and
inconvenience for the client.

5. Tell Your News: Create an Advertorial!


Webster’s Dictionary says that an “advertorial” is “an advertisement that imitates editorial format.” In other
words, it’s an ad that looks like a news article!
Here is why this is important.

People are seven times more likely to read a news article than an advertisement.

People come in contact with regular ads all day long. There is really no incentive for them to read your ad if
you don’t offer them more than what everyone else is offering.

Creating an effective ad that grabs attention and provides plenty of information isn’t always easy. But an
advertorial can achieve this as it is far more likely to be clicked on and read.
6. Take Away Their Fear: Make Your Offer As
Risk-Free As Possible!
People are nervous about spending their money. There are too many scammers and low-quality products out
there. People worry that they’ll be wasting their hard-earned cash when it comes to many products and
services.

If people fear that they’re going to lose their money and regret their purchase, they are unlikely to purchase
your product. But, if you remove these doubts, people are given an incentive to give your product or service a
try.

So it’s a great idea to offer a risk-free guarantee. Knowing there is no risk and that they don’t have anything
to lose by purchasing your product or service, is a powerful purchasing inducement. This “reverses” the risk
and places some of it on the seller. This is called “risk reversal.”

7. The “Call To Action” And Asking Them To Buy


– Or Not!
Don’t just tell your potential customers about what your company has to offer. Encourage them to take
action. Tell them directly to click on your ad, order your product, pay for your service, etc.

For example, your “call to action” can encourage people to email you for more information, to fill out a form
to find out more about your services, to join your weekly or monthly email newsletter or to purchase your
product or service. It could even direct users to click on your ad to take them to your website rather than just
looking at the advertisement.
Q.9. Advertising appeals are very essential to the success of the advertisement. Give examples
of the same.
ANS:- Advertising appeals are very essential to the success of the advertisement

Types of Advertising Appeals Most Commonly Used by Brands

Emotional Advertising Appeals


Appealing to your audience's emotions can be achieved through strong imagery, impactful text or powerful music. An emotional
advertising appeal depends more on feelings and perceptions than logic or reason to provoke action.

Personal Appeal

This print ad by Gillette not only uses mixed media to catch attention (sandpaper in a magazine), but also appeals to
personal concerns of fathers. The ad states that research shows how important skin-to-skin contact is for infants and
questions what kind of razor-smooth finish they want to share. While the personal appeal is directed toward new fathers,
those without children will still understand the message of quality.

Social Appeal
People are motivated by what others are doing around them. In this IKEA ad, there is a clear reference to the insanely popular TV
show, Game of Thrones. This year, the head costume designer for the show revealed how Jon Snow's cape is actually made from
affordable IKEA rugs. The ads appeals to consumers' need to feel part of something or included: Even the Game of Thrones tries to
stay within budget by shopping at IKEA, like everyone else.

Fear Appeal

Using strong visuals, ads can draw on hidden fears. Some ads draw on personal fears, while others draw on a sense of loss. In this
graphic ad, fear of losing something awesome may motivate people to take action and help save the forests.

Humor Appeal

Humor can bring relief to what might otherwise be a mundane and expected ad. The right type of humor will grab attention for
organic engagement from your audience. Humor can be risky, so businesses really have to know themselves and their audience
before committing to something that could bring negative attention if there is a misunderstanding. Virgin Mobile is always pushing
the boundaries with sex-charged jokes and this bus humor is right up their advertising alley.

Endorsement Appeal

We all know that many of the professional athletes, actors, actresses and celebrities that push products aren't necessarily an
important part of the product, but the effect is still felt. Mila Kunis hardly has much to do with Jim Beam's brewing process, but she is
a strong endorser of the product. Beautiful, strong, and believably familiar with her whiskey, the actress puts her stamp on the brand
and adds authority without being in the industry as any kind of professional.
Celebrities, athletes and big-name influencers are used quite often to endorse products in order to stir popularity despite having
nothing (or little) to do with their creation, direction or knowledge of the industry. The ad world (or sports world) may never forget
how Joe Namath endorsed pantyhose he admittedly did not use.
Sexual Appeal
One of the best known advertising appeals is that sex sells. People use sexy models and "sexy" product shots that will make the
viewer emotionally excited. From Victoria's Secret to Hardees, brands have used unabashed sex appeal to sell products and
services.
Because this is often an abused appeal in ads, companies like Hardees have changed course with a "Food Not Boobs" campaign.
Brands like Calvin Klein and Levi Jeans, focus on a more grounded sexiness to show the value of their product (which makes more
sense than trying to sell sexy fast food).

Romantic Appeal
A sense of romance can take people back to a nostalgic moment that evokes emotion. Romance does not necessarily have to do
with relationships, but rather a sense of powerful feeling that is inspiring and idealized.
This Lowe's ad may show a romantic relationship, but it is the sweet nostalgia of the two childhood sweethearts that really draws
viewers into the storyline and the value of what Lowe's products offer: building a home, not just fixing up a house.

Youth Appeal

People often don’t want to age and certainly don’t want to feel old. In this Snickers commercial, the young person is feeling old age,
misery and crankiness from hunger. Not only does this appeal to maintaining an active, happy youthfulness make younger
audiences find an attraction to the candy bar, it also makes an appeal to the older audience by showing the contrast. Snickers
makes you feel young and energetic once again by solving your hunger needs.
A common advertising appeal for older adult audiences is to photograph and highlight models who are younger than the target
audience by several years. Youth appeal is apparent in ads that offer medications aimed at older adults, adult diapers, erectile
dysfunction solutions, hearing aids, dentures, emergency call buttons, living community centers and other products or services for
the elderly where the chosen actors are often much younger than the actual target audience.

Adventure Appeal

Jeep has long focused on adventure as a big part of their brand. Ads like this encourage people to join in as a part of the brand club
to experience something new and exciting. Travel companies, active brands and car companies often focus on a sense of adventure
to highlight what their products or services can really bring to the table.

Popularity Appeal

Buzz is particularly helpful for increasing brand awareness and creating anticipation and excitement for the product or service you
offer.
When the Baywatch movie was about to be released, a very special kind of marathon (0.3km) was held in slow motion. The
hilarious result of people moving slowly, sexily and dramatically towards the finish was attended by a large crowd excited about the
reunion release.
This same advertising appeal is often the reason companies produce promotional materials, like pens, bumper stickers or keychain
lanyards. Companies often place their logos all over their clothing or disposable products (like Starbucks coffee cups) to help
showcase just how popular their products are.
Musical Appeal
Music can make or break an ad by setting tone and mood just as quickly as imagery. The snappy music that backs this Kohler
TV commercial adds a happy energy that wouldn't have been achieved by bright colors and quick shot transitions alone. The music
here makes the user feel excited and inspired to imagine what the product could do in his or her life. The right music can add to the
emotion of an ad and encourage a faster purchase decision.

Empathy Appeal

Getting a message across may depend on your ability to get someone to identify with a problem they’ve never actually had
to deal with. Some brands and most public service advertisements depend on the ability to evoke the emotion of empathy
and understanding in those they need to care about their cause, as is done in this ad by the Safe At Home Foundation.
Empathy helps people picture the problem in a personal way so that they can understand the consequences for someone
else.
Potential Appeal

This type of advertising appeal communicates a sense of empowerment to turn dreams into a reality. In this Lego ad, the clear
connection is that Lego helps children imagine, solve problems and work toward a better future. This was part of a campaign that
included similar fireman and rockstar images in ads that were placed at strategic schools, playgrounds and museums where parents
frequently take children.

Brand Appeal

Starbucks has been a prime example of brand appeal to the masses, along with luxury brands, like Dior or Jimmy Choo that appeal
to higher end consumers. People pay additional money to be a part of a brand that they feel carries a certain kind of status,
inspiration, value or quality. Usually these same items can be purchased for drastically lower prices if they are generic or
unbranded, but brand appeal allows companies to add additional cost to their products because of packaging, labeling and other
branded aspects that really have nothing to do with product quality or type.
Coffee connoisseurs actually complain that Starbucks coffee roasts taste burned, but the company was able to increase the typical
price of a coffee by offering tons of customizable drink choices, a quality feel in branding, employees that bought into the brand, and
a relaxed environment (including offering free wi-fi to customers very early in the game).

Rational Advertising Appeals


On the other side of the advertising spectrum lie rational appeals. Many ad approaches are based on objective facts, logic and
reasoning. Rational appeals can be very useful even with emotional subjects, helping target audiences identify the value of a
product in an indisputable way. While emotional appeals are powerful, they can sometimes become manipulative; rational appeals
are typically more authentic and can create a sense of authority around a brand.

Pain Solution
People are most strongly motivated when they have a problem that needs to be solved that causes them regular and noticeable
pain. Often, people have already identified and expressed a desire to solve the pains most apparent in their lives or workplaces.
In this IKEA ad, the pain of the viewer is apparent in the shelf they need but do not have. Rather than focus on the product they are
selling, IKEA focuses on the solution they are providing. Brands can often sell more effectively if they are able to identify a pain that
can be solved by a product or service they offer.
Scarcity Appeal

Coke boosted their brand appeal with a limited time campaign that personalized bottles with names and titles. People rushed out
looking for the names of their family and friends to keep, photograph or gift. While the scarcity was part of the appeal, Coke took this
campaign a step further by allowing customers to personalize their own Coke bottles and even search their website to see where (or
if) their names were on bottles somewhere in the US. Scarcity increases the feeling of value and makes the customer rush to make
an impulse buy.

Statistics Appeal
What happens when leading men stand in a woman’s shoes? This clever ad changes Mark Zuckerberg, Bill Gates and Carlos Slim
into female versions of themselves (Marla Zuckerberg, Billie Gates and Carla Slim). The real message is rooted in statistics that
highlight wage inequality between the genders. Use of proof and statistics can appeal without question to those who are more
rational in their approach.

Testimonial Appeal
When you think of testimonials, you probably think of the traditional video of people talking highly of your brand or products. While
this is great and can be incredibly effective on social media, there are ways to think outside of the box with this advertising appeal.
Doritos held a commercial contest for their Superbowl ad spot for ten years in a row, highlighting their fans’ love. Not only did the
competition get people motivated to engage with the brand, it showcased the product's value in a unique way. “What Would You Do
for a Klondike Bar” campaigns added a similar interactive twist to the testimonial appeal.

Contrasting Appeal
You can also highlight what sets your brand apart with a stark comparison between your product and the competition or how life
would be without your products. In this IKEA ad, there is a clear contrast between those who “unboxed” their balconies with IKEA
style products and the neighbors surrounding them. The stark contrast in this ad creates an unquestionable appeal to express
personal style and create a living space that no one else is taking full advantage of. Contrast can be a subtle way to prove your
brand is a level or two above the alternative.

Status Appeal
There is no question that these nice, patent-leather work shoes were chosen for a reason: status. The point of this ad was to get the
viewer to identify the product with a certain class. While the manufacturer is actually selling a car, classy shoes (clearly abused by a
love for the acceleration pedal) give a status appeal that is somewhat subliminal in its messaging. Apartments, furniture stores,
fashion brands and many other companies also lean on a level of status to appeal to consumers concerned about where they are at,
how they are viewed, and where they are headed.

Transparent Appeal

Not everything about your brand is ideal. Transparency can help show a realness to your brand that appeals to customers because
it is authentic. Volkswagen caught people’s attention in the Netherlands when they showed the flaws in one of their car models in
order to advertise a new third-row option. Stunt doubles were suspended behind the car to show the additional room that the new
Tiguan Allspace could offer.
Q.10. How can the type of media be changed with the change in target market?
ANS:- 8 Ways Social Media Is Changing Marketing
social media marketing didn’t create customer-centricity for brands, but it did revolutionize it.
This morning, a post on Marketing-Interactive.com elaborated on how social media is changing
marketing.
“As these platforms continue to grow rapidly, they become important pieces of the online
architecture and experience that reshape the way brands engage with their consumers,” writes
post author Inti Tam.
 2-Way Communication. Brands have to speak their customers’ language and can’t provide
boring content. “Whenever a brand shares any posts, marketers are able to receive feedback
about their products or strategies almost immediately,” Tam notes.
 Co-creating Content. Beyond user-generated content, consumers are helping brands create
products by, for instance, voting on them on social media.
 Reviews. These are often first stops for product and service research. Tam adds that marketers
may feel the urge to delete negative comments, but it’s more important to respond to them
immediately.
 Rule Changes. Facebook does it all the time. Will organic posts show up in followers’ news
feeds?
 Digital. Consumers are reading news and viewing pictures on mobile devices, within social
media apps.
 CMO Role Evolution. Customer experiences need to evolve to include social media
marketing.
 Fueling Campaigns. Offline campaigns bring users to these lower-cost social media marketing
options, where re-targeting is an option.
 Active Listening. “Anytime your business is mentioned anywhere on the Web, you will hear
about it instantly, showing social media has flipped the interaction between consumers and
brands,” Tam writes.

9 ways digital has changed business forever


1) Instant Communication
Interacting with potential customers today can be like spinning a roulette wheel. The roulette
ball represents the company’s marketing message, which will spin and bounce as the wheel
turns before finally landing on a space (i.e. a customer). Social media acts as the wheel itself,
and it allows companies to interact with people in a public venue, providing a channel to
promote products, services and transparent messages.

2) Content Overload
Just how much content is distributed via social media and messaging apps? The answer is huge,
so huge that it has been given the term content shock. Every 60 seconds 3.3 million people make a
Facebook post, and 29 million messages are distributed via Whatsapp. That means that
marketers have their work cut out if they’re going to get their message and brand noticed by
the people using these applications.
3) Droves of Data
Modern technology allows marketers to gain a tremendous amount of knowledge about their
customers. However, companies need to know how, where and when to use that data. Some of
the best ways to achieve this are:

 Knowing which metrics are most important to company success – the key to getting impact from
data is knowing what your organization wants to get from it. The key is to be very specific about
what the business outcomes are and build that into how the data is measured and how it impacts on
the wider business.
4) Demands Transparency
In today’s digital world, customers want to know about the companies they interact with and
purchase from. In order to build loyalty brands need to be transparent and demonstrate their
personality online and the company’s ethos. This is particularly relevant when it comes to food
products with consumers wanting to know exactly what's in the things they eat.

5) Fosters Intimacy
Businesses can learn an enormous amount about potential customers based on data they can
gather. The smart companies are using this data to create extremely personal marketing
messages, and the younger generation is eating it up.

6) A New Breed of Influencers


Social media and video outlets like YouTube have enabled ’regular’ people to become incredibly
influential. Companies no longer need to hire celebrities to endorse their products in order to
get millions of people interested in their product or service.

7) Playing Catch-Up
Digital technology changes at an incredibly fast pace; often overnight. Relentless in its pace,
these changes require employees across departments to be agile, work collaboratively and
most importantly keep up to date with development so they have the skills to adapt and use
these changes to the company's advantage.

8) Encourage Innovation
This new landscape has forced brands to be innovative using new ways to reach out and engage
with their customers. In the face of disrupters, many sectors have had to be creative and take
initiatives that enable them to compete. Take the financial sector for examples, faced with stiff
competition from PayPal and Google Wallet, financial institutions needed new ways to engage
with and influence customers.
9) Made Brands More Human
Due to its popularity and influence, social media marketing should be front and center on any company’s marketing strategy as
customers need to trust and understand the company they are buying from.

One of best examples of a company that has got this concept down to an art is Apple. Strategic marketing ensures that brand
awareness rules supreme among their users, and it’s so effective that Apple has millions of people supporting their products
before they are even released!
Q.11. Give an example of TV, radio and newspapers as mediums of advertising taking
an example of a product.

ANS:- Types of Advertising Media


Selection of the perfect advertising media where the advertisements will be
presented is really important for the success of the marketing
campaign. There are several advertising mediums which can be
categorized under five heads:

 Print Advertising
 Broadcast Advertising
 Outdoor Advertising
 Digital Advertising
 Product/Brand Integration
Each of the media has its own exclusive characteristic like the reach, shelf
space, interest, and niche targetting, etc. A marketer has to evaluate each
and choose the one with the greatest ROI.

Print Advertising
One of the oldest and most popular media of advertising, print media has
better reach and can even be used for copy extensive advertisements.

Print advertising includes –


 Newspaper advertisements – Newspapers have the highest reach
among other types of print advertisements. They are in the regional
languages and have a narrower reach as compared to others because
of its economical price.
 Magazine advertisements – Magazines can be used for niche
advertisements. They have a higher conversion rate as the
advertisements are targeted to the right audience.
 Brochures – Brochures impart everything a customer should know
about the product or a brand. They are targeted and distributed at a
later stage to educate customer more about the brand.
 Fliers – Fliers are handy and have a great local reach. Fliers turn out to
be very useful for local businesses.
Broadcast Advertising
Technological advancement has resulted in increased returns from
broadcast advertisements. Broadcast mediums include audio-visual
information and entertainment mediums like radio, television, etc. It’s one of
the most effective media for advertising as a story can be better understood
if moving images and audio is used. But this medium is one of the costliest
advertising mediums too.

Broadcast advertisements can be classified into


 Television Advertisements – Television advertisements are usually
focused on brand building and creating brand awareness among
prospective customers. These involve a lot of time and monetary
investments and can prove to be one of the most beneficial
advertisement investments for a business. Television advertisements
have an edge over print advertisements as the people who can’t read
can also understand the message through audio-visual ads.

Outdoor Advertising
Perhaps one of the most economical options, outdoor advertising can
prove to be the most effective advertising strategies if used correctly,
creatively, and at the right location. As the name suggests, Outdoor
advertising involves placing fixed (printed or audiovisual) advertisements in
locations most visited by the target audience.
Outdoor advertising can be classified into –

 Banners & Hoardings


 Flags
 Wraps
 Events and sponsorship
 Automobiles
 Other guerrilla marketing strategies
Digital Advertising
Digital advertising refers to advertisements that are digitally displayed over
the internet or other digital devices. This includes the Internet, media
devices like smartphones, tablets, etc. Big Data has helped digital
marketers to carry extremely targeted advertisements and get the most out
of their investments. With the everyday addition of new users and
increased technology and R&D in the digital world, marketers can now not
only target customers with their advertisements but also can engage and
interact with them.
Digital advertising include advertisements on –

 Internet
 Mobile phones
 Media devices other than broadcast media. Devices like Kindle, Echo,
Google home, etc.
Brand/Product Integration
Brand Integration allows a brand to reach out to the consumers
by integrating the brand within the entertainment media content which is
consumed by the users as entertainment. The brand or the product
is interwoven within the script, showcasing products, functions and unique
features.

In simple words, brand Integration is nothing but a form of authentic


storytelling which is crafted according to the trend and needs and wants of
the consumer and the brand.
Q.13. Give example of planning an Advertising Campaign for an e-commerce website.

7 Simple Ways to Market a


ANS:-
New E-commerce Website
Creating an e-commerce site can be one of the most profitable moves
you could ever make, but an issue that a lot of other sites have had is
how to properly market it. If you can’t properly market it, then you won’t
be able to find new customers and the site will fail. So to help give you
some ideas of how to market your new e-commerce site, we are going to
take a look at 7 methods that have proven to work.

Have an SEO Strategy


Search engine optimization is a must, not only for e-commerce sites, but
for all websites. The more optimized your site is, the better chance you
will have to rank high, which means more traffic and more sales.
This can be one of the best ways to ensure your site’s success.
Unfortunately, there are plenty of different elements to optimizing for
search engines. If you aim to go it alone, it may take you some time and
effort to learn the ins and outs of it all, but the sooner you get started, the
faster you will be able to get your site optimized.
Another factor to consider is the speed of your website. A fast loading
website is essential. It helps engage visitors and therefore has higher
chances of converting them into customers. It is also a crucial piece of
SEO and ranking – slow loading websites simply fail to rank as well.
Your choice of web hosting provider greatly impacts performance. To
give you a better idea on which host to use, look for reviews such as the
following: iPage review, GoDaddy review, and web hosting hub review.

Create a Blog
Blogging has become an effective way to market online because of how
cost efficient it is and how appealing they can be to our target audiences.
If your e-commerce site sells a specific type of item, then you can easily
create a blog regarding your niche and then attract people to your blog.
Once visitors get to the blog, tell them more about the products you are
selling, and you will be able to convert some of them over to becoming
customers. This strategy has worked for thousands of businesses, so it
is a very viable option.

Use Promotions to Attract Consumers


Promotions have always been a big part of marketing any new business.
Even before the internet was crawling with ecommerce sites, new
businesses would always have opening sales, or some type of
promotion to help attract people.
The same strategy works on the Internet. If you are offering a promotion
or sale, then you can appeal to many more people. Consumers love a
good deal, so make a great offer, and watch as they flock to your site.

Use Social Media Sites


Social media sites will be huge assets in establishing your online
presence, because the potential is limitless. There are billions of people
using these sites and your business can get in on a part of the action.
If you kick off a social media campaign, you could see dramatic results in
a short amount of time. Social media marketing is also popular because
it doesn’t have to cost you anything, although having a budget can make
things much easier.
Start by posting links and publishing content that attracts your target
audience, and then refer them back to your website. There are so many
different strategies that can be used for social media marketing, so once
you have been doing it for a while, you will be able to identify the most
effective one for your particular site.
Paid Advertising for E-commerce
Although paid advertising will cost you money, it can be very effective,
particularly for new sites. If you can maintain a high conversion rate,
using paid advertising can really provide great returns.
For example, pay per click advertising allows you to pay every time
someone clicks a link directly to your site. Once they are on your site, it’s
your job to convert them. So if you have a well-designed user experience
and conversion process, then you will should start seeing positive
returns rather quickly.

Get Your Products Reviewed


Another great way to increase visibility is to find bloggers who write
reviews about products. Contact them and ask them if they are willing to
write a review about the products on your own website.
Usually, if you provide them with a free sample or give them access to
try it out, they will be open to possibly covering your offering. If they write
a good review, then their entire audience will be exposed to your
products and may come back to visit your site.

Provide Free Samples


This is a strategy that many businesses avoid, but it can be very
effective. If you want to prove that your products are great, then give
some away and ask for open feedback. If the products are truly great,
then users will spread the word via word of mouth and possibly online
reviews.

Summary
Every ecommerce site will offer different types of products, so some of
these methods might work better for you than the others. The important
part is to keep them all in mind and figure out which ones will be the
most effective for your site.
Q.14. Give sales promotion tools used by any company of your choice.

ANS:- 9 Types of Consumer Sales


Promotion Tools Used by company
1. Samples
Samples are one of the most important tools of sales promotion.
Samples are defined as offers to consumers of a small amount of a
product for trial. Free samples are given to consumers to generate
their interest in the product. Samples help consumers verify the
quality of the product.

Samples are delivered at the doors of consumers. They are also sent
by mail or given to customers in the retail store itself. Sometimes,
samples are attached to another product.

Though sampling is effective, producing numerous samples of a


product is quite expensive. Moreover, distributing samples to
customers also involves expenditure.
Sampling is not justified in case of

 well established product


 a product that is not superior in some way to competing
products
 a product with a slow turnover
 a product with a narrow margin of profit, or
 a highly fragile, perishable or bulky product.
2. Coupons
A coupon is a certificate that fetches buyers a saving when they
purchase a specified product. Coupons are generally issued along
with the product. They entitle the holder to either a specified saving
on a product or a cash refund.

Coupons are designed


 to introduce a new product
 to promote the sale of an established product
 to sell a product in large sizes
 to stimulate customers to switch brands; and
 to encourage repeat sales.
Coupons are used for consumer convenience goods. They may be
distributed door to door, by mail or they may be inserted in
packages. Sometimes, coupons may be part
of magazine or newspaper advertisements.
3. Demonstration
Demonstration is required when products are complex and of a
technical nature. Customers are educated as to how to make proper
use of the product. Demonstration of products induces customers
to buy. Demonstrations are provided free of cost.

4. Contests
Contests are the promotion events that give consumers the chance
to win something such as cash, trips or goods. Contests are
conducted to attract new customers. They introduce new product
by asking the prospects to state the reasons for the purchase of the
product.

The buyer purchases the product and submits the evidence of


purchase with entry form for contest. Entry forms are duly filled by
the buyers. A panel of judges selects the best and buyers are given
prizes.

5. Cash refund offer


Cash refund offers are rebates allowed from the price of the
product. It is an offer to refund part of the purchase price of a
product to consumers who send a proof of purchase to the
manufacturer.
Moreover, if the purchaser is not satisfied with the product, the
whole price or part of it will be refunded. Cash refunded offer is
stated on the package.

6. Premium
Premium refers to goods offered either free or at low cost as an
incentive to buy a product. A premium may be inside the package,
outside it or received through mail. The reusable package itself
serves as a premium.

Premium is generally offered for consumer goods such as soap,


toothpaste, etc. Premium may be of several kinds — direct
premium, reusable container free in mail premium, a self
liquidating premium, trading stamps, etc.
Direct premium can be inside the pack or outside it. A reusable
container can be reused after the product is reused. Free in mail
premium means a premium item will be sent by mail to consumers
who present proof of purchase to the manufacturer.

A self liquidating premium is the extra quantity offered at the


normal price. Trading stamps are given by the seller to consumers.
These are redeemable at the stamp redemption centres.

7. ‘Price off’ offer


Goods are sold at reduced prices during slump season. Reduction
in prices stimulates sale of goods.

8. Consumer sweepstakes
A sweepstakes calls for consumers to submit their names for a
draw. Names of consumers are included in a list of prize winning
contest. The lots are drawn and the winners get prizes.
9. Buy back allowances
Allowances are granted to buyers on the basis of their previous
purchases. In other words, buy back allowances are given for new
purchases, based on the quantity of goods bought previously.
Q.15. How has the FMCG sector used personal selling?

ANS:- FMCG: Fast-Moving Consumer Goods


FMCG stands for Fast-Moving Consumer Goods which are also known as consumer
packed goods (CPD). These goods refer to the products that are sold quickly and
generally non-durable. It is also known as Consumer Packaged Goods (CPG). The
examples of FMCG products are soft drinks, processed foods, cosmetics like lip balm,
eyeliner, deodorants, soaps, general using products like toilet paper, face towel, shower
cap, toilet soaps and the over-the-counter drugs etc.

FMGC products have a short life and generally replaced or sold over a short period
usually within a few days, few weeks, and few months. Although the profit margin in
FMGC products is comparatively low but they generally sold in the large quantity thus,
the cumulative profit is good. The success of FMCG products largely depends on the
brand equity, marketing, distribution network and understanding of consumer behavior.

Characteristics of FMCG products


1) From the consumers' perspective:

o Mandatory use
o Frequent purchase
o Low cost
o No effort to choose
o Comes in wide range

2) From the marketers' perspective:

o Low margin
o High distribution network needed
o Daily delivery

Top Indian FMCG Companies


o Hindustan Unilever
o Amul
o Pidilite Industries
o Dabur India Ltd.
o Emami
o Britannia
o Parle Agro
o Colgate Palmolive India Ltd.
o Nirma
o Himalaya Healthcare Ltd.
o Haldiram's
o Bikanervala
o Zydus Wellness
o CavinKare
o Marico etc.

The FMCG sector used personal selling

Firms who rely on personal selling for their marketing success will survive and
prosper to the extent they adjust their selling practices to fit the contingencies
and market environment they face.

o There are 5 stages in personal selling. Their characteristics are as follows

Stage and Customer Type of market Nature and intensity Examples


description needs are of competition

1.Provider: Assumed to Sellers None Sales people drivers.


exist.

Accepting and
delivering to buyer.

2.Persuader: Created, Buyers Undifferentiated, Tele marketer.


awakened
slight intensity
Attempting to
convince anyone to
buy available
offerings.

3.Prospector: Considered but Segmented Differentiated and Car insurance salespeople


inferred growing calling on new car buyers.
Seeking out prospects
with need for
available offering as
well as resources and
authority to buy.

4. Problem solver: Diagnosed Participative Responsive and Communication systems


with attention counter active with salespeople for telephone
to customer increasing resources. company.
input.
Matching available
offerings to solve
customer stated
problems.

5.Procreator: Mutually Co active Focused: growing in Materials handling equipment


defined: breadth of market and sales person who designs and
matched with service offerings sells a system to fit a buyers
tailored manufacturing facility.
Creating a unique
offering
offering to match
customers’ needs as
mutually specified
involving any or all
aspects of the sellers’
total marketing mix.

o Analysis and Critique


o As a company’s sales force advances through these stages of evolution, it also seems
clear that the terms “personal selling” and “salesperson” are more and more
unrepresentative of what this function and these people really are. While “selling”
might be broadly interpreted as encompassing the various tasks of the problem
solver and the procreator, it is more likely that persons in this stage those stages
are taking on enlarged responsibilities typically included under marketing and
management. Advanced stages of personal selling are evolving into marketing and
management positions with their mission to benefit each buyer while improving the
firm’s profit.

o When we look at the various stages in personal selling, it is sometimes seen that
companies practice the same according to the type of situation that arises with
prospective customers. Depending on the current mindset of the customers the
stages are interlinked and intertwined in order to achieve the final goal: which is to
bring about mutual benefit. Hence practicing concrete transition between stages
will not work all the time. Each type of business requires a different kind mix
between stages of personal selling.
Q.16. Circulation and readership of newspapers affect the advertisement of
products it in. Justify.

ANS:- Advantages of Newspaper Advertising:


Why Newspapers are Still King
Top Benefits of Newspaper Advertising
Newspapers offer better targeting.
Newspaper advertising can target specific demographics that are traditionally more difficult to
reach through other mediums. This allows advertisers to more effectively reach smaller, niche
audiences, including those in specific geographical areas. This targeted advertising can range from
simple inserts to regular weekly sections in local newspapers and other special publications.
Newspaper advertising is more flexible.
Newspapers offer more flexibility than any other advertising medium. Advertisers choose the exact
size and location of the ad (including section and page), as well as design. Unlike other mediums,
such as the Internet, they also choose the exact time the ad appears and its frequency, ensuring
that readers will see the same information, in the same format, in the same location. Advertisers
also have more control over the final product, by working directly with newspaper staff.
Newspaper advertising can also integrate print-to-web features, such as QR codes, to link readers
with relevant web-based information, including special offers and more. In addition, the short lead
times of newspapers allow for quick changes to any ad, while still meeting the necessary deadlines.
Newspaper advertising is more affordable.
Newspaper advertising typically costs less per thousand readers than television, radio, and direct
mail advertising. In addition, newspaper staff members will work directly with advertisers to create
ads at no additional costs.
Newspaper advertising can also be customized to meet any budget. The decline in newspaper ad
revenue means fewer print and digital ads are included in each circulation. This is a significant
benefit, as advertisers have less competition for ad space (and customers) than other mediums.
Additional discounts can be provided for increased ad coverage and frequency.
Related: Integrate Your IT Solutions in the Cloud for Superior Cross-Device Ad Targeting
Newspaper advertising reaches more customers.
Though declining in readership, an average issue of a daily or Sunday newspaper reaches more
adults than an average half-hour prime time television show. Readers also remove and/or save
information, including special events, features on family and friends, coupons, and more. Whereas
the average attention span of an Internet user is 8 seconds, readers spend considerably more time
reviewing information in newspapers, including advertising.
Newspaper readers are also more affluent. According to Mansi Media, approximately 75% of all
households with incomes of at least $100,000 read newspapers. These are households with
significantly more purchasing power, who are also more likely to be influenced by newspaper ads.
Leveraging the CORE.
Mediaspectrum’s CORE Platform provides a premiere cloud-based solution for your advertising
needs. From proposal generation to billing, we provide a full-scale solution that
streamlines multichannel publishing from a single web-based platform, integrates advertising
and editorial content management, and reduces your IT costs while increasing ad sales.
While advertising mediums continue to expand with technology, the flexibility, targeting,
affordability, and reach of newspapers make them the most trusted and reputable source for
effectively reaching customers. Mediaspectrum’s CORE Platform ensures that you are able to not
only capitalize on new advertising opportunities, but also maximize your ad sales in the process.

Circulation and readership

The number of copies distributed, either on an average day or on particular days (typically
Sunday), is called the newspaper's circulation and is one of the principal factors used to set
advertising rates. Circulation is not necessarily the same as copies sold, since some copies
or newspapers are distributed without cost. Readership figures may be higher than
circulation figures because many copies are read by more than one person, although this is
offset by the number of copies distributed but not read (especially for those distributed free).
In the United States, the Alliance for Audited Media maintains historical and current data on
average circulation of daily and weekly newspapers and other periodicals.
According to the Guinness Book of Records, the daily circulation of the Soviet
newspaper Trud exceeded 21,500,000 in 1990, while the Soviet weekly Argumenty i
Fakty boasted a circulation of 33,500,000 in 1991. According to United Nations data from
1995 Japan has three daily papers—the Yomiuri Shimbun, Asahi Shimbun, and Mainichi
Shimbun—with circulations well above 5.5 million. Germany's Bild, with a circulation of
3.8 million, was the only other paper in that category. In the United Kingdom, The Sun is the
top seller, with around 3.24 million copies distributed daily. In the U.S., The Wall Street
Journal has a daily circulation of approximately 2.02 million, making it the most widely
distributed paper in the country.[44]
While paid readership of print newspapers has been steadily declining in the
developed OECD nations, it has been rising in the chief developing nations (Brazil, India,
Indonesia, China and South Africa), whose paid daily circulation exceeded those of the
developed nations for the first time in 2008.[45] In India,[46] The Times of India is the largest-
circulation English newspaper, with 3.14 million copies daily. According to the 2009 Indian
Readership Survey, the Dainik Jagran is the most-read, local-language (Hindi) newspaper,
with 55.7 million readers.[47] According to Tom Standage of The Economist, India currently
has daily newspaper circulation of 110 million copies.[48]
Q.17. How can a company promote its sales force?

ANS:- company promote its sales force

Promoting the development and ongoing efforts of your sales team can be a full-
time job. You want to make sure your sales people are knowledgeable, outgoing, and
interested in their customers and the product they're selling. You also want to be
sure your sales team is using industry best practices, and that they constantly
develop their skills and grow as professionals so that they can use their talents to
effectively promote your product or service

Motivational Seminars and Classes

Motivational seminars and training classes are commonly employed by small businesses to
promote sales team development. For example, you could send your staff to a sales training seminar
conducted by expert salespeople in your industry, or you could conduct in-house training and
seminars taught by professionals or by high-performing senior sales staff in your organization. By
constantly exposing your sales team to proven practices, such as sales concepts like "Always be
Closing," (a technique in which they consistently take active steps to close a sale with each customer
interaction) they will gradually begin to learn new methods and techniques that work for them and
that will help them grow as salespeople. You might also consider online classes or seminars to assist
in the professional development of your sales team.

Internal Competition
Fostering a sense of healthy internal competition is another method for developing a sales team. The
availability of incentives and rewards for performance will spur most salespeople involved in the
competition to seek out new and creative methods to improve on their own, and attempt to learn best
practices from high-performing team members. For example, you might offer a cash bonus for the
highest sellers in a given period or create a contest in which the entire sales team attempts to hit a
certain goal, with a reward of a company sponsored retreat. Those who are excelling at sales can help
those who are less effective by sharing techniques and tips, and performing role-playing training
exercises. It is important to keep internal competition light-hearted and friendly, so as not to destroy
the sense of teamwork.

Positive Motivation
As the sales manager of your organization, it is important that you provide positive, rather
than negative motivation. Focus on the good points of each salesperson’s individual style,
and compliment them when they are successful. Try to frame necessary criticism in such a
way that it is not derogatory or personally hurtful. For example, if one salesperson is not
aggressive enough at making cold calls, you might comment that you know they have a
strong sense of boundaries and professionalism that makes them hesitant to bother busy
executives, but that it is important to be aggressive with repeat phone calls. By creating a
team atmosphere in which your sales team feels that they are supported by their
supervisors, you will create a group of willing individuals who genuinely enjoy their work and
want to do better at it.
Q.19. What is meant by contests and buyback offers?

ANS:- contest
Promotional scheme in which (unlike in a sweepstake) participants compete for
prizes by accomplishing something that requires skill. Although (unlike in a lottery)
no fee is charged for participating in a contest, a certain number of proof-of-purchase
tokens (such as bottle caps or empty packages) are often required to accompany
each entry.

A market structure that allows for entry and exit at any given time period. A
contestable market typically only consists of a few businesses, but doesn't prevent
any new firms from entering the market. Firms experiencing rising profits in the
contestable market will usually see the influx of new firms entering during this time.

Time during which the validity of an agreement or contract may be challenged. It is


typically two years in case of life insurance policies.

Economics: Rivalry in which every seller tries to get what other sellers are seeking at
the same time: sales, profit, and market share by offering the best practicable
combination of price, quality, and service. Where the market information flows freely,
competition plays a regulatory function in balancing demand and supply.

Circumstances in which another over-the-counter agent has executed with a financial


institution providing various client services, at the stated market level prior to a
bid/ask. The strategy is often used when the stock in a company being acquired is
bought at the same time the stock of the acquirer is sold.

What Is a Buyback?
A buyback, also known as a share repurchase, is when a company buys its
own outstanding shares to reduce the number of shares available on the
open market. Companies buy back shares for a number of reasons, such
as to increase the value of remaining shares available by reducing the
supply or to prevent other shareholders from taking a controlling stake.
Understanding Buybacks
A buyback allows companies to invest in themselves. Reducing the number
of shares outstanding on the market increases the proportion of shares
owned by investors. A company may feel its shares are undervalued and
do a buyback to provide investors with a return. And because the company
is bullish on its current operations, a buyback also boosts the proportion of
earnings that a share is allocated. This will raise the stock price if the
same price-to-earnings (P/E) ratio is maintained.

The share repurchase reduces the number of existing shares, making each
worth a greater percentage of the corporation. The stock’s EPS thus
increases while the price-to-earnings ratio (P/E) decreases or the stock
price increases. A share repurchase demonstrates to investors that the
business has sufficient cash set aside for emergencies and a low
probability of economic troubles.

Another reason for a buyback is for compensation purposes. Companies


often award their employees and management with stock rewards and
stock options. To make due on rewards and options, companies buy back
shares and issue them to employees and management. This helps avoid
the dilution of existing shareholders.

How Companies Perform a Buyback


Buybacks are carried out in two ways:
1. Shareholders might be presented with a tender offer, where they
have the option to submit, or tender, all or a portion of their shares
within a given time frame at a premium to the current market price.
This premium compensates investors for tendering their shares rather
than holding onto them.
2. Companies buy back shares on the open market over an extended
period of time and may even have an outlined share repurchase
program that purchases shares at certain times or at regular intervals.

A company can fund its buyback by taking on debt, with cash on hand or
with its cash flow from operations.

An expanded share buyback is an increase in a company’s existing share


repurchase plan. An expanded share buyback accelerates a company’s
share repurchase plan and leads to a faster contraction of its share float.
The market impact of an expanded share buyback depends on its
magnitude. A large, expanded buyback is likely to cause the share price to
rise.
The buyback ratio considers the buyback dollars spent over the past year,
divided by its market capitalization at the beginning of the buyback period.
The buyback ratio enables a comparison of the potential impact of
repurchases across different companies. It is also a good indicator of a
company’s ability to return value to its shareholders since companies that
engage in regular buybacks have historically outperformed the broad
market.

Example of a Buyback
A company's stock price has underperformed its competitor's stock even
though it has had a solid year financially. To reward investors and provide a
return to them, the company announces a share buyback program to
repurchase 10 percent of its outstanding shares at the current market price.

The company had $1 million in earnings and 1 million outstanding shares


before the buyback, equating to earnings per share (EPS) of $1. Trading at
a $20 per share stock price, its P/E ratio is 20. With all else being equal,
100,000 shares would be repurchased and the new EPS would be $1.11,
or $1 million in earnings spread out over 900,000 shares. To keep the
same P/E ratio of 20, shares would need to trade up 11 percent, to $22.22.
Q. 20. How refunds, rebates and price deals help a company in its
positioning?

ANS:- Rebate (marketing)


A rebate is an amount paid by way of reduction, return, or refund on what has already been
paid or contributed. It is a type of sales promotion that marketers use primarily
as incentives or supplements to product sales. The mail-in rebate (MIR) is the most
common. A MIR entitles the buyer to mail in a coupon, receipt, and barcode in order to
receive a check for a particular amount, depending on the particular product, time, and often
place of purchase. Rebates are offered by either the retailer or the manufacturer of the
chosen product. Large stores often work in conjunction with manufacturers, usually
requiring two or even three separate rebates for each item. Manufacturer rebates are
sometimes valid only at a single store. Rebate forms and special receipts are sometimes
printed by the cash register at time of purchase on a separate receipt or available online for
download. In some cases, the rebate may be available immediately, in which case it is
referred to as an instant rebate. Some rebate programs offer several payout options to
consumers, including a paper check, a prepaid card that can be spent immediately without
a trip to the bank, or even PayPal payout.

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