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ADVERTISING AND SALES PROMOTION

UNIT – 1

CONCEPTS OF ADVERTISEMENT

- Advertising is a big business and ranks among the top industries of the world
along with oil, auto, information technology and agriculture.

- The growth of advertising industry in any country is directly related to the level of
business activity and the health of its economy.

- Companies ranging from large global players to small local retailers are
increasingly relying on advertising and other promotions to help sell their
products and services.

- In economies, such as ours, consumers are rapidly learning to rely on advertising
and other promotional messages for information in making purchase decisions.

Communication Model

 What makes an advertisement effective? Below are the key points on the
effectiveness of a message.

1. Attract Attention
2. Secure Interest
3. Build Desire for the product
4. Obtain Action

 The above has been formulated as the AIDA Model. Attention could be the form
of the layout of a print advertisement or the way an advertisement is made in the
form of moving pictures, the colors used, the models used and the copy written,
the movements used and the contrasting element used.

 We are bombarded by so many advertisements that there are a few we see and
while a few we don’t. The advertisement, which arouses interest in us and
provokes us to think or feel about a product, is what an advertiser looks at. It
basically means to catch the eye of the public.

 Desire would mean the buying motive. When you feel that you want to posses the
particular product or be associated with it.

 Action would normally mean the acquisition of the product.

 Within the AIDA framework, Attention would refer to the cognitive stage, both
Interest and Desire would relate to the affective stage and Action would be a
behavioral activity.
 Within the framework of advertisements the following should be kept in mind:

• Understanding the Objective(s) of the advertisement (MISSION)
• Defining the Target Audience (MARKET)
• Understanding the Budget (MONEY)
• Understanding the Message (MESSAGE)
• The Media used for putting the advertisement (MEDIA)
• Seeing whether the advertisement was Effective (MEASUREMENT)

The above would commonly be termed as the 6 M’s of Advertising.

 The Mission statement would refer to the Aim of your advertisement. Is to
improve sales, is to launch a new product, it for recall, is it for some short term
offers, is it to gain attention, etc.

 The Market analysis would incorporate the type of buyer you want to sell the
product to. For a cosmetic company it is but natural they would show women and
not men in their advertisement. For Horlicks they would show children having the
product.

 Money is the amount of budget constraint that the advertiser has in allocating the
money between different medias and the expenditure to be incurred. For example,
Procter & Gamble may allocate Rs. 2 crore for the advertisement of Tide
detergent spread over one year.

 What to say, how to say, who will say it and what type of appeals to be given in
the message is what Message formulation is all about. Shahrukh Khan being the
spokesperson for Hyundai Santro, the colors used in the car, the movements of the
car and what the person should remember the car as are few of the elements to be
kept in mind.

INTEGRATED MARKETING COMMUNICATION

IMC can be defined as:
A concept of marketing communications planning that recognizes the added value of a
comprehensive plan that evaluates the strategic roles of a variety of communication
disciplines. In other words, the message and approaches of general advertising direct
response, sales promotion, public relations, and personal selling efforts are combined to
provide clarity, consistency, and maximum communications impact.
 IMC, thus, calls for a "big picture" approach to planning marketing and promotion
programs and coordinating the various communication functions. It requires firms
to develop a total marketing communications strategy that recognizes what the

sum total of a firm's marketing activities, not just advertising, communicate to its
customers.
 Consumers' perceptions of a firm and/or brands are a synthesis of the messages
they receive from various sources. These include media advertisement, price,
direct marketing efforts, publicity, and sales promotions, as well as interactions
with salespeople and other customer-contact employees.

Marketing-Mix and Advertising

Marketing - mix

Product Price Promotion Place

Advertising Personal Selling Sales Promotion Publicity Direct Marketing

 Marketing-mix is a major concept in modern marketing and includes everything
that the marketer uses to create a blend that would influence the demand for its
products or services.

 Popularly, 4 Ps are used to represent the elements of marketing-mix. Each ‘P’
stands for,
o Product – a product is anything that can be offered to a market for
attention, acquisition, use, or consumption that might satisfy a want or
need.”

o Price – the price is the sum that customer pays in exchange for the
product, or to get a service performed.

o Place (Distribution) – refers to marketing activities undertaken to make the
product or service available to consumers at convenient locations where
they are normally expected to shop for such things.

o Promotion – includes marketing activities used to inform, persuade and
remind the target market of an organization, its products, services and
other activities.

 In the marketing-mix product or service is the most important element.

 Promotion-mix is made up of the specific group of marketing activities, which are
concerned with the communications aspect with existing or potential consumers
and relevant publics.

 An identified sponsor: the sponsor of ideas or opinion is known. goods and services by an identified sponsor. to Influence and to Lead to some action is what advertising is all about. .  It involves many activities. television. its time and direction. such as. goods and services: is used not only to present and promote goods and services with the intent of selling them.  Mass Communications media: a broad group of audience can best be reached by mass media such as newspapers. offering no personal interaction. it is also increasingly used to further the goals of public interest and social causes. radio and outdoor displays and this is what separates advertising from personal selling.  “Salesmanship in print”  “Advertising as a substitute for the human salesman”  “Advertising is the business of creative thinking for commercial advantage” The above are few definitions of what advertising is all about.  To Communicate. delivered through media and often viewed as an intrusion. highly visible.  Controlled: the advertiser controls the content of the advertising message. DEFINITION OF ADVERTISING  Advertising is any paid form of non-personal presentation and promotion of ideas. o Advertising o Personal Selling o Sales Promotion o Direct Marketing o Publicity  Advertising is a powerful communication force. ideas and images etc. services. identifiable information and persuasion by means of mass communications media. magazines.  Non personal presentation and promotion: advertising is totally non-personal. and one of the most important tools of marketing communications that helps to sell products. to Persuade.  Ideas.  Paid form: the paid aspect of the definition reflects the fact that the space or time for an advertising message generally must be bought.  Advertising is controlled.

o Trademark: craftsman. in early times. As a result of this new development. The benefits of advertising are as follows:  Information . love. happiness. BRIEF HISTORY OF ADVERTISING  The recorded history of advertising goes back to about 5000 years including the modern satellite and internet age.  Persuasion: it is the major objective of advertising  It is not neutral it is not unbiased: all ads that appear are controlled by the advertiser and are intended to serve the advertiser’s interest in some way. present in all developed civilizations of the ancient world. and other traders. there were three forms of advertising. Development of Modern Advertising: During 1920s. etc. o Town criers: This system of town criers was perhaps. status. o Signs: Phoenicians. and is an integral part of the entire national international economic system. FUNCTIONS OF ADVERTISING The various functions of advertising can be listed as follow:  Stimulates demand  Strengthens other promotion mix elements  Develops brand preference  Cuts costs  Lower Prices  Competitive Weapon BENEFITS OF ADVERTISING Advertising performs an important economic function for the advertiser.  Before the invention of printing from movable type. advertising in this period started stressing on the outcomes of consumer purchases such as health. modern marketing research entered the world of advertising. painted commercial messages on prominent rocks along trade routes they frequented. wanted to be identified for their skills and placed their individual marks on goods that they crafted. affects economic decisions of the audience.

advertisers consumer advocates and policy makers. Advertising may actually help lower the overall cost of a product and keep down the prices because of economies of scale in production. the opposite is true. which adds to serve the consumer’s self-interest.  Effect on Consumer Demand and Consumer Choice: It is generally agreed that the effect of advertising and other promotions is an increase in aggregate consumption but to what extent it effects consumption.  Brand Image Building  Innovation  Growth of Media ECONOMIC IMPLICATIONS OF ADVERTISEMENTS  Effect on the Value of Products or Services: Advertising sets off a chain reaction of economic events. This is a major area of continuing debate among economists. this view is not totally correct. Advertising can help stimulate demand of new products by communicating relevant information and facts. changing lifestyles etc. they have options of buying less expensive alternatives. level of education. There is a possible that adverting may discourage competition. High costs may inhibit their entry and brands of large firms probably benefit greatly from the barrier. If price is more important to consumers. which have fewer resources. increases in population. This means that if companies stop this expensive advertising. In a free-market system. While some advertised products do cost more than the unadvertised products. is a highly debatable issue. However. consumers have he option of choosing the desired value in the products or services they buy. products would cost less and be available at lower prices. that exert a powerful influence on aggregate consumption. level of income.  Effects of Competition: economists are critical of advertising because it creates a ‘barrier to entry’ of smaller firms. Advertising restricts the choice of alternatives to a few heavily advertised brands. Advertising contributes to the self-interest of both consumers and advertisers by adding value to products and services in a free- market system. and cannot match the power of large firms with huge advertising budgets. Further it encourages competition. and the costs are at least partly borne by consumers.  Effect on Prices: Advertising also adds cost and affects prices. there are other important forces such as technological advances. Besides advertising. SOCIAL IMPLICATIONS OF ADVERTISEMENTS . Others looking for luxury and status may choose more fancy and expensive alternatives.

 The primary criticism of advertising is that it is misleading and deceives consumers.  People from many countries and cultures believe that materialism tends to be negatively related to happiness and hence is considered undesirable. cooking.  Sex appeal and / or nudity used simply to gain consumers’ attention and not even appropriate to the product or service being advertised is in poor taste.  It is generally agreed that advertising exerts a powerful social influence and is criticized for encouraging materialism in society. or they are shown as dependent on men. . subservient. Visuals and copies of ads present stereotypical images of Indian women in settings such as family illness. less intelligent etc. Stereotyping in Advertising: Stereotyping ignores differences among individuals and presents a group in an unvarying pattern. love and intellectual pursuits of society.  Materialism is the tendency to accord undue importance to material interests and this tendency perhaps.  Cigarette smoking. for example.  Many laws and regulations are put into force that determines what is permissible in advertising. Critics often point out that advertising perpetuates stereotyping of women. depicting stereotypes and controlling the media. status. being attractive. The charge is that advertising has failed to portray the changing role of women in society. They are also shown as decorative objects or sexually provocative figures. anxieties and psychological needs.  Advertising is blamed for manipulating consumers to buy things for which they have no real need. which are non-material. children. such as self-esteem. neighbours etc. thus fostering discontent and exploiting them to purchase products and services that they do not need. There is perceptible improvement in this regard as advertisers have started to recognize the role of working women in family affairs and decision making. etc. has been shown to be associated with high levels of lung cancer and other respiratory tract diseases and many people would consider cigarette advertising as unethical. ETHICAL IMPLICATIONS OF ADVERTISEMENTS  Ethics are moral principles and values that govern the actions and decisions of an individual or group. lessens the importance of freedom.  Advertisements should not attempt to persuade consumers by playing on their emotions.

and shall reveal significant facts. 5. Substantiation – advertising claims shall be substantiated by evidence in possession of the advertiser and the advertising agency prior to making such claims.  ASCI guidelines are as follows: o To ensure the truthfulness and honesty of representation and claims made by the advertisements and to safeguard against misleading advertising. for this. Advertising Principles of American Advertising Federation 1. exaggerations or superlatives without stating any facts and. which is unacceptable to society at large. This further complicates the issue of deception. misleading.  “Puffery” is advertising that praises the product or service to be sold with subjective opinions. which are regarded as hazardous to society or to individuals to a degree or of a type.  In India. the . or unsubstantiated statements or claims about a competitor or his products or services. advertisers have a right. 4. It proposes to adjudicate on whether an advertisement is offensive or not. 2. usually higher priced. o To safeguard against indiscriminate use of advertising for promotion of products. o To ensure that advertisements observe fairness in competition so that the consumers’ need to be informed on choices in the market-place and the canons of generally accepted competitive behaviour in business are both served. with sufficient information to apprise consumers of their principal terms and limitations or. Bail advertising – advertising shall not offer products or services for sale unless such offer constitutes a bona fide effort to sell the advertised products or services and is not a device to switch consumers to other goods or service. The council is a non-profit organization set up by 43 founder members and has developed a regulating code. the omission of which would mislead. o To ensure that advertisements are not offensive to generally accepted standards of public decency. it proposes to deal with the government. Advertising Standards Council of India (ASCI) enforces the ethical code for advertisers. The council’s decisions are binding on its members and in case of any disputes. Guarantees and warranties – advertising of guarantees and warranties shall be explicit. when space or time restrictions preclude such disclosure. Truth – advertising shall reveal the truth. Comparisons – advertising shall refrain from making false. 3.

increase in market share and return on investment) and communication objectives. it would be quite simple to evaluate the results of the ad campaign. 8. . or implications that are offensive to good taste or public decency. Communications Objectives  Advertising communications objective can be put in a pyramid form.  Sales. Sales as an Advertising Objective  Sales are a convenient and really attractive advertising objective for many managers.  Many experts recognize that advertising creates delayed or ‘carryover effect’ and no matter how much money is spent on advertising. 6. 7. The Objectives of advertising as explained before are grouped as sales objectives (measured in terms of increase in sales.  In spite of problems that sales objectives pose. Some direct-action advertising attempts to induce a quick response from the members of target audience such as ads offering some kind of incentive. illustrations. it may not necessarily have an immediate impact on sales. SETTING ADVERTISING OBJECTIVES Advertising is a method of communication with a specified objective. as an advertising objective. Testimonials – advertising containing testimonials shall be limited to those of competent witnesses who are reflecting a real and honest opinion or experience. there are certain situations when sales objectives can be appropriate. or encouraging prospects to place orders by phone or through the Internet. Price Claims – advertising shall avoid price claims that are false or misleading. or savings claims that do not offer provable savings.  In case of sales as the advertising objectives. offer little guidance to creative and media people working on the account. advertisement shall clearly reveal where the full text of the guarantee or warranty can be examined before purchase. Taste and decency – advertising shall be free of statements. or ads announcing contests.

• Creating favorable attitudes (persuasion).  First the lower level objectives. • Maintenance of loyalty (reinforcement) One of the tasks which is often forgotten is that of maintaining loyalty of existing customers who will almost always represent the main source of future sales. The next stage and the one that preoccupies most advertisers. trial.  It is easier to accomplish ad objectives located at the base of the pyramid than the ones towards the top. generating more sales leads.  Irrespective of the fact whether the brand is new or established. such as awareness.  Subsequent objectives may focus on moving the prospects to higher levels in the pyramid to elicit desired behavioural responses such as associating feelings with the brand. which will eventually lead the consumers to switch their purchasing pattern. knowledge or comprehension are accomplished. .  There are general objectives of advertising that covers goals like encouraging increased consumption of a product by current users. or regular use etc. is to crate the favorable attitude to the brand. the pyramid can be used to determine appropriate advertising objectives. Communication-effect Pyramid 5% Repurchase/ Regulare use 10% Trial 20% Preference 40% Liking 60% Knowledge / Comprehension 80% Awareness The communication objectives of advertising can be grouped in to the following: • Building awareness (informing): The first task of any advertising is to make the audience appreciate that the product or service exists and to explain exactly what it is.

Colgate Dental Cream campaign about 20% extra was to increase volumes through a sales promotion campaign. “a new refill pack for might perceive a minor packaging change Nescafe” 4. Two recent examples are the launching of “Pepsi Blue” soft drinks during the world cup and launch of “Mountain Dew” in subsequent period. “improved”. Announcement of a Special Offer: Because of competition. advertising is used to make a special offer. slack season. In the case of innovative products (totally new to the market) such as Laptop Computers. is used as prefixes to the brand name. declining Sales. the advertisement also carries information about the availability of the product and facilities for demonstration/trial etc. For example. Expansion of the Market to Include the New Users: Advertising can be used to tap a new segment of the market. generally. Sometimes the customer as a modified product e. The same products have now been directed towards the adult market for their personal use. Similarly new brands of existing product categories are also promoted quite aggressively. For example. This technique can be used to show new users for a well-established product. etc. security systems and educational purposes. To Educate Customers: Advertisement of this type is “informative” rather than persuasive”. For example. air-conditioners. Hotels offer special rates during off.g. Announcement of a Product Modification: For such advertising. In addition. the terms “new”. fans.season. 2. 5. “Excel” etc. increasing repeat purchases and supporting the personal selling efforts. hitherto left unexplored. It can also be used to educate the people about an improved product e. Some of the broad advertising goals are explained as per the following: 1. 3. Johnson’s baby oil and baby cream were originally targeted to mothers. space may be taken to list the names and addresses of stockiest and dealers. the introduction of new products and brands can give the seller a tremendous opportunity for increasing his sales. To Announce Location of Stockiest and Dealers: To support dealers. Milkmaid was originally promoted as a substitute for milk. Launch of New Products and Services: In a saturated market. For example TV and Video Camera manufacturers who have been concentrating on domestic users and professionals can direct their advertising to the government institutions and large organization for closed circuit TV networks. to encourage selling of stocks and to urge action on the part of readers. 6. Similarly. although there may be no tangible difference between the earlier brand and the new one. . “Surf Excel” gives the impression of an advanced detergent powder.g. a great deal of advertising has to be done over an extended period of time to make people aware of “What the product is” and What it does” and “How the customers would find it useful”. increasing brand awareness. etc. offer off-seasons discounts to promote sales. It is now being advertised as an ingredient for making sweet dishes and also as a sandwich spread for children. Similarly many products like room heaters. Another way of expanding the consumer base is to promote new uses of the product.

The Product and its virtues. For example. The advertisement is aimed at remaining the customer to ask X for the same brand again. the product or brand acquires a ‘personality’ associated with the user. soft drinks. advertisements discourage the consumption of liquor and drugs. Few other objectives: Advertising also helps to boost the morale of sales people in the company. Advertisers send “display” material to dealers for their shops. It pleases sales people to see large advertisements of their company and its products. cigarettes. Defining Advertising Objective you must proceed from: a. takes the form of comparison between two brands and proves why one brand is superior. which gives the brand a distinctive ‘image’. . Campaigns against unsafe sex and AIDs are sponsored by government and voluntary agencies. particularly for those who have limited shelf space for a wide variety of products. blades. 7. Occupation. etc. To Create Brand Preference: This type of advertising does two things: (I) it creates a brand image or personality (ii) It tells the target audience why Brand X is better than Brand Y. c. Issues like Social class. Similarly. In this type of advertisement. or those products. Values and ambitions. Attitudes to Product. 10. Reminder Campaigns: This type of advertising is useful for products. b. The second type of advertising also known as ‘comparative advertising’. which are bought frequently e. Other uses of advertising could include recruiting staff and attracting investors through “Public Issue” advertisements announcing the allotment of shares etc. Step II: Define the Stage of the Communication task. Dealer support is critical. Pearl Pad odor free jars and bottles. Income. What is the Specific Communication task? Communication is a process of acting on the mind of your audience. The Competition. apart from helping the retailer with local advertising. “We must create a state of mind conducive to purchase". which have a high rate of repeat purchase. The campaign of “Dil Maange More” during television breaks of cricket matches is to have a top of mind recall. and they often boast about it. You must understand that an Advertising Objective is a Communication Objective "An Advertising goal is a specific communication task. Step I: Define the audience. to be accomplished among a defined audience to a given degree in a given period of time". To Sought Dealer Cooperation and Motivation: A successful retail trader depends upon quick turnover so that his capital can be reused as many times as possible.g. Sometimes societal advertising is used to educate people on the usefulness or harmful effects of certain products. 8. The segment of the Market aimed at all of which should be set down in the marketing objective. 9.

In a military campaign. DAGMAR APPROACH  Russel H Colley (1961) prepared a report for the Association of National Advertisers titled “Defining Advertising Goals for Measured Advertising Results” DAGMAR. you set an objective like "Capture the Kargil back" or "March through McMohan Line".Step III: Define Consumer Preference or Resistance. share of mind or brand awareness. Then you know when the campaign is over and whether you have won or lost. you get answers like. such as increasing advertising objectives with specific goals.  The truth is that if you are spending Rs 10 lakhs or Rs 10 crores.  Successful advertising campaigns have the same kind of criteria.  The important thing to understand about setting advertising objectives is that most advertisers do not set sensible ones.  If you ask them how their campaign is going. 1.  Advertising campaigns are in one sense like military campaigns. "All of our people like it very much" or "It's a bit early to tell. It must concentrate on this unique claim or the Unique Selling Proposition (USP). Step IV: Define the product promise or claim. you need parameters that can be measured. "Advertising is the art of getting a Unique Selling Proposition into the heads of the most people at the lowest cost" Step V: Define the Brand Image: What will be the brand's 'Personality?' i. you ought to be able to tell with a much greater degree of accuracy what it is doing for you. What do consumers like about Brand? What do they dislike? This is where you need research into consumer attitudes. . It must be a distinctive – unique claim. It must be meaningful and of value to consumer 2. What character or association does it evoke?  After you have answered the above questions it is then that we are moving ahead where the setting of objectives are concerned. but we think it's going to be very successful". 3.  To do this. or you shouldn't be spending it. But then these same advertisers are not sure if their advertising is paying off either.e.

 According to this model. preparing and executing their advertising and other promotion programmes. Palmar – first known person who worked on a commission basis to sell space in newspapers.  Colley proposed that communications objectives be based on a hierarchial model with four stages: o Awareness: involves making target audience aware of the existence of brand or company. o Conviction: create a mental disposition among target audience members to buy the product. ADVERTISING AGENCY • Advertising agency is an independent organization that provides one or more specialized advertising and promotion related services to assist companies in developing.  He developed a model for setting advertising objectives and measuring the results of an ad campaign. o Action: to motivate the target audience to purchase the product or service.  One important contribution of DAGMAR was its ability to clarify what consititutes a good objective. o Specify a target audience.  According to the DAGMAR approach. advertising objectives involve a communications task that is specific and measurable. . the advertising objectives should have the following features: o Stated in terms of concrete and measurable communication tasks. o Indicate a benchmark or standard starting point and the degree of change sought. and o Specify a time period for accomplishing the objective or objectives.  According to Colley. How Advertising Agencies Developed? 1840 – Volney B. communications effects are the logical basis for setting advertising objectives and goals against which results should be measured. • Most medium and large-sized companies usually use an advertising agency. o Comprehension: develop an understanding among audience of what the product is and what it would do for them.

The major changes in the structure. • The account executives responsible for acquiring knowledge about the client’s business. each responsible for providing inputs needed for performing various functions to serve the client.1850s – George P. publicity and public relations. Rowell in Philadelphia – bought large blocks of space from publishers. • Follow-up and effective communication is required for the account executives to perform well in this function. and ad objectives. • Other services offered by the ad agency to the advertising may include strategic marketing planning. Marketing Services . • Composed of various departments. trade shows. media selection. and research. event management. profit goals. budget. FULL-SERVICE AGENCIES • Offer full range of services in the area of marketing communications and promotions. • There are five functional areas: o Account management o Creative services o Media services o Support services Account Management • Responsible for the relationship between the agency and the client. marketing problems. 1917 – Newspaper publishers set 15% as the standard agency commission. rough ads or story boards. 1870s – Charles Austin – begun writing advertisements for anyone who wanted them. sales training. and the range of services provided by advertising agencies evolved mainly in the later part of 20th Century. sales promotions. package design. functioning. • He is responsible to help formulate the basic and strategies recommended by the agency and obtain client approval for media schedules. • Those services also include planning. 1980s – There was a wave of acquisitions and mergers of advertising agencies and support organizations to form super agencies. creating and producing the advertising.

2. human resource and office management. AD. determine theme or basic appeal of the ad campaigns. • An advertising campaign includes seven essential steps: o Appraisal of advertising opportunity o Market analysis o Setting advertising objectives o Setting budget and necessary control systems . OTHER TYPES OF AGENCIES 1. Creative talent only provided to the client and rest of the services by the client organization themselves will be completed. CAMPAIGNS • According to Dunn and Barban “ An advertising campaign includes a series of ads. Management and Finance • Administration head who takes charge of functions such as finance. and body copy. • The ‘research department’ is maintained by the full-service agency to gather and interpret data for situation analysis which is useful in developing ad for their clients. • The responsibility of the agency’s ‘media department’ is to develop a media plan which can reach the target audience effectively in a cost effective manner. placed in various media. Media Buying Services – buy space in bulk with less cost and sell to clients. subheads. • The creative specialists are known as ‘copywriters’. Creative Services • Success of an advertising agency depends on the creative services department which is responsible for the creation and execution of the ads. accounting. • Creation of ad message is the responsibility of copywriter and the advertising department decides how the ad should look. • They are the ones conceive the ideas for ads and write headlines.” • The ad campaign is guided by the promotion and advertising plans which evolve from marketing objectives and strategy. that are designed to meet objectives and are based on an analysis of marketing and communication situations. Creative Boutiques – provides creative services.

Media plan is developed simultaneously with creative plan. Determining the Advertising Budget – the budget controls all proposed expenditures by fixing a limit. pretest and release ads o Evaluate final results (post-testing) • The steps are not necessarily sequential and are individual activities. Products have hidden or not readily noticeable qualities. . What do they really buy c. image. 7. 6. Who buys the product b. Setting Advertising Objectives – set objectives for an advertising campaign and also for each ad in each medium used. Deciding the central theme. used before the ads are placed in the media. Deciding Media and Creative Strategy – involves decisions about media and creation of advertisements. advertises undertake two or more of them simultaneously. These results are concerned with measuring the campaigns effectiveness. Analyzing and defining the target market – good advertising starts with a clear understanding of marketing goals based on a thorough market analysis. focus groups. Creative strategy concerns what message to deliver to the audience for accomplishing the objectives. Presence of powerful emotional buying motives e. idea. How do they use the product 3. various techniques such as market tests. Good chances of product differentiation c. in practice. compute simulation tests. Evaluating the final Results (post-testing) – is done to evaluate the final results of the ad campaign. surveys. pre-test and Release Ads – pretesting advertising strategy and execution. a. Presence of position primary demand b. 5. When do they buy d. 4. The advertising budget is basically a plan to allocate financial resources to advertising for future operations. Creating Ads. or position is a critical part of the creative process which becomes the cornerstone of all individual ads that constitute the campaign. Availability sufficient funds 2. Appraisal of Advertising Opportunity – the marketer must determine whether advertising is suitable in his particular marketing situation. o Determining media and creative strategy o Create ads. a. etc. Planning an Advertising Campaign 1. d.

storming sessions. They spend all their time with themselves' (AI Ries and JackTrout). Our strategy should give us a competitive edge. (i) Strategy Development Phase. The team throws up the ideas.. The agency is supposed to brief itself. The brilliant in the team pick up one or two ideas from the total ideas generated and develop them. There should be . the copywriter and visualiser work together and it is difficult to attribute the final product to either of them.lateral thinkers. Creative campaigns are creative due to a good brief. Briefs should have clarity and single-minded objective. logical. All briefs must suggest a benefit or a product plus.I. That's the first principle. most of the time this does not happen. What most companies do is they think like themselves. The Creative Phase • Here the lateral thinkers come on the scene. you have to think like a consumer. If you want to catch a consumer. • The strategy formulation leads to an advertising brief. Great briefs inspire great work. They are briefed about how to create the advertising the product needs. It analyses the research data and decides positioning of a brand. II. The strategy formulation is in modern day's agencies a team effort. Good brief ensures good work. These ideas ultimately make up the strategy. The strategy formulated is communicated to the creative people. They rearrange the order of things. There are brain. However.e. Within the creative team. If you want to catch fish. They make connections that had not existed before. Advertising Brief to the Creative • As a matter of fact. The strategist should be a good motivator for the creative team. Bad brief to the creative team results into bad work. i. They should aim at a target person. III. They create abruptions in the consumer mind. They leap from a single unidirectional idea of the strategist to an advertising idea that will add value to the product/brand. The strategy should be communicated with clarity. you have to think like a fish. The creative persons are supposed to be right-brained . The idea is to have the desired response. • Proper briefing is going halfway as far as creativity is concerned. irrational thinkers as against the accounts director who is left brained.Three Phases of Campaign Creation There are three phases involved in the creation of any campaign. The creative persons form a part of this team not as creative persons but as a mind. the client has to brief the agency about the strategy. (ii) The Briefing Phase and (iii) The Creative Phase . Strategy Development Phase • This phase decides the objectives and contents of communication.

. He participates in research and has active role in positioning. He does not remain content with a clever copy or stimulating visuals. • The creative director's post has become a more responsible one. He is required to understand the product and its market completely. He is now an overall ad man. an all-rounder.a beautiful marriage between the strategy and the lateral thinking by the creative people.

posters and cinema are often referred as ‘above-the-line media’. broadcast media. outdoor media. sales promotion. outdoor. • ‘Frequency’ refers to the number of times the audience is exposed to a media vehicle in a given period of time. • Direct mail. • Broadcast. • Media Vehicle – is the specific message carrier within a medium. • ‘Reach’ is a measure o the number of different audience members exposed at least once to a media vehicle in a given period of time. etc. press. ADVERTISING AND SALES PROMOTION UNIT – II • Media Class – refers to the general category of delivery systems available to carry advertising messages to a selected audience such as print media. . merchandising. are referred to as ‘below-the-line-media’ • ‘Media Planning’ refers to a series of decisions that need to taken in delivering the ad message to the largest number of the target audience in the most effective manner at the lowest cost. The plan specifies ‘media objectives’ and ‘media strategies’ to accomplish the objectives. exhibitions. such as computer at home and Business today magazines are vehicles in print media. sales literature. etc. • ‘Coverage’ refers to the potential audience that might get exposed to the ad message through a media vehicle.

account executives. the media planner may need some secondary or primary data regarding the audience size. Steps in the Development of Media Plan Market Set the Media Media Strategy Evaluation and Analysis Media development and follow-up Objectives implementation (i) Market Analysis and Identifying the Target Market . it is equal to reach multiplied by average frequency. (ii) Establishing Media Objectives – media objectives are formulated to help accomplish the advertising communications task and marketing objectives. the media planner works with the client. • The basic goal of a media plan is to formulate a particular combination of media that would enable the advertiser to communicate the message successfully and effectively to the maximum number of potential and existing customers in the target market at the lowest cost. Media objectives are translated into specific goals for the media programme . • Continuity – refers to message deliveries over a period of time or a season. At this stage.The key questions at this stage: (1) who is the target audience for advertising. • Gross Rating Points (GRPs) – refers to the total weight of a media effort. To decide which specific groups need to be addressed. composition and exposure figures. etc. quantatively. (2) what internal and external factors may influence the media plan? (3) where and when to focus the advertising effort? The market analysis may reveal more than a few target markets. It refers to the timing of the media insertion. marketing department and the creative directors.

Scheduling is concerned with timing the insertion of advertisements in the selected media. with lighter emphasis in earlier months. and individual preferences are some of the factors that may influence choice of media combination. staring May. c.or every month. b. Scheduling – media schedule is the calendar of advertising plan. Geographic Coverage – geography is an important consideration in the media planning process. Use print media to provide coverage of 80% of the target market over a six-month period. b. Continuity – refers to a continuous pattern of advertising. Media Mix and Target Market Coverage – once media objectives are established. the media planner determines the segments that should get the maximum media emphasis. ii. There may be regional differences in consumption and accordingly media planners select secondary localized media to supplement their national media schedule. the media objectives can be stated as. Concentrate heaviest advertising between October and December. planners develop suitable media strategies to accomplish these objectives. Flighting – refers to a less regular schedule of advertising messages and is quite popular. Reach 60% of the target audience at least three times over the same six- month period. and are limited to those that can be achieved through media strategies. There are three approaches to scheduling: i. The demand for certain types of products depends on the geographic locations of the markets. (iii) Develop and Implementing Media Strategies a. The product characteristics. a. . every week. For examples. c. objectives. To effectively cover the target market. size of the media budget. There are intermittent periods of advertising and no advertising. which can mean every day.

it is likely that even an ambiguous ad close by will be interpreted being in mind. frequency and the number of advertising cycles in the planning period. the level of advertising stepped up. Media Reach and Frequency – media planners face the essential task of ensuring optimal use of media budget while deciding about the reach. There are at least six attributes that should be considered while choosing a media vehicle: i. “programme rating” is a measure of potential reach of broadcast media and is expressed as a percentage. ii. iii. Editorial “fit” – in a media vehicle. frequency and the number of advertising cycles affordable for the year. . ii. Prestige – for some products the prestige of a media vehicle is considered to be important. iv. i. Pulsing – is a combination of continuity and flighting. Expertise – degree of expertise associated with its area of interest is important. The continuity is maintained as a base throughout but. as the editorial matter makes discussed attribute readily accessible in the memory. “gross rating points (GRP)” is a numerical figure indicating how many potential audience members are likely to be exposed to a series of commercials. e. GRP = Reach x Frequency iii. Qualitative Aspects of Media Vehicle Source – this concept refers to the qualitative value of the media vehicle and there is general agreement that vehicle source effect exists. Media planners make compromises and strike a balance between reach. d. when the editorial matter discusses some attribute. “Impact” is the instrusiveness of the ad message which means whether the ad message was actually perceived by the audience. “Target Rating Points (TRPs)” refer to the number of times and the number of individuals in the primary target audience that the media will reach. during certain periods. iii.

iv. Mood created – media vehicles can enhance the creativity of a
message by creating a mood that affects the impact of a
commercial communication.
v. Involvement – the involvement of target audience members in a
media vehicle should generate more impact of an ad message as
compared to another vehicle that is less interesting to audience.
vi. Unbiased approach – it is also important that advertiser do not
attempt to influence the media objectivity.

Determining the relative cost of media:
 Cost per thousand:
Magazine space is sold primarily on the basis of pages or some
increment of a page. It has been used by the magazine industry as a standard method to
provide cost break downs on the basis of cost per page per thousand circulation.

 Cost per rating points:

This is used to compare cost figures of same medium broadcast vehicles and is also
referred as cost per point. One rating point means 1% of a broadcast station’s coverage
area.

 Milline rate:

Media buyers use the milline rate to compare the costs of space in newspapers. A milline
rate is the cost in rupees per line of standard dimensions to reach a newspaper circulation
of one million.

ADVERTISING AND SALES PROMOTION

UNIT – III

Message Design and Positioning
Message design identifies the consumer’s perceptions about the products. The following
questions give a good insight:
(i) What is the nature of the product: its generic category?
(ii) For whom it is meant: the segment.
(iii) What are the special characteristics of the product? How is the consumer
going to be benefited?
(iv) Who are the competitors? What is their promise?
(v) Is the product different from the other available products? How? Is it a
technological breakthrough?
(vi) On which occasions will the product be used? How often?
(vii) What would you like your consumer to perceive this brands as? What position
it would take?
The answer to these questions is given by marketing research and by the advertiser and
his agency. The creativity of the agency matters more here.

Message Presentation
• Message are to be structured keeping the objective of the communication and the
audience in view.
• Messages are presented either centrally or peripherally.
o A central message takes a direct route to persuasion. It is a well
documented ad. It compares advantages and disadvantages of a product.

This central presentation provokes active cognitive information
processing.
o Peripheral presentation provides pleasant association, scenic background,
and favorable inferences about the product. These are distinct, rational
and emotional appeal ads.

Advertising Message Structure
The important aspects of message structure are:
• Drawing conclusions: The question often raised is whether definite conclusions
should be drawn for the audience in the ad for quick understanding or should they
be left to them. In many instances, it is best to let the receivers of the promotion
message draw their own conclusions.
• Repetition: repeating an ad message is often beneficial, for it develops a
continuity of impression in the minds of the target audience, and may increase the
predisposition to think and act favorably towards the products advertised. A
repeated message increases awareness and knowledge on the part of the prospect.
• One-versus-two-sided arguments: This raises question whether the advertiser
should only praise the product of should also mention some of its shortcomings.
The most common approach in sales and advertising is a one-sided approach.
Two-sided arguments go well when audiences have an unfavorable opinion about
the communicator’s position.
• Comparative Advantage: here a product is directly or indirectly compared with a
competitive product to show the advertised product to advantage. This trend has
been seen more and more in some recent campaigns.
• Order of Presentation: Whether to put the strongest argument first or las in the
advertiser’s presentation is equally important. Sometimes this is considered a part
of copywriting strategy.

Message Format
Message format an important step in message development. By format, we mean the
organization, plan, style or type of ad message. The message format is the scheme by

subjects the message through filtration process. Perhaps there is over-communication. The message must get through. A number of companies advertise their products. We have therefore a lot of communication in all directions—direct. the string of commercial before the feature film and the number of hoardings on highways. indirect. therefore. and how to overcome it. MESSAGE DEVELOPMENT There are so many media that carry the ad messages. zigzag and all-sided.g. cough syrups. This leads us to the concept of clutter. razor blades etc. The number of message being beamed at us is far more than the audience can absorb. (ii) The number of me-too products e. tonics. The following factors can be helpful: • Impact and memorability • Great ideas rather than mere techniques • Creative strategy.which the message content and structure strategy are implemented. toilet soaps. creative differential • Copy platform • Visual style • Innovation space buying: freak positions and shape • ‘how to say’ is as important as ‘what to say’ • Use of white space. pages after pages in a medium. The individual. detergents. It is characterized by the type of media vehicle in which the message is delivered. This is the challenge to the planners and creative persons. The problem of Clutter: The problem of clutter has two dimensions: (i) The number of ads. slice-of-life photography . There are so many products which are advertised in these media.

• Communication style that stops. we talk about the art in advertising. coupon 7. price 8. headline. the most important activity is visualization—a process which starts the design of the advertisement and results into the development of a finished ad layout in print. intrigues and then informs • Production quality. seal of approval 10. At the second step. The basic elements with which a visualizer works are: 1. he forsee their relevance to each other. to one another. A visualiser decides about the inclusion of different elements at the beginning of his work. sub-heads 2. border 11. The visualizer one he becomes clear about the components or elements he will include. the illustration 4. he foresees how all these elements will be appearing in the copy. When we talk of visualization. The ultimate outcome of the process of visualization is the layout. quality of marks etc. How they would be placed in the copy? How the final product will look like? . logo signature 5. the body copy 3. slogans 6. Visualisation and Development of Ad In developing the ad. Visualisation in the most words is the process of designing the advertisement. package 9.

Each element is positioned and there is visual evidence on paper. Each element is assigned a weight. Very often this happens while sitting in a cafeteria. 3. 4. Creative process demands free exchange of ideas. Deliberation: a perfect knowledge of the environment and attendant data is essential for creativity. The steps in the visualization process are those involved in any creative process. . Creative Process in Visualization The following are the five principal stages in creative process: 1. group understanding and lack of conditioned thinking. 2. Accommodation: the original idea is modified. Incubation: the subconscious activity precedes a fresh approach. application of imagination to problems. we require a flow of ideas.Transformation from Visualisation to Layout Once the visualizer exercises himself mentally and puts his pencil to paper. Visualization and Creativity In the visualization process. depending upon its overall significance. driving a vehicle or in some such state of relaxation. The creative mind forms a pattern of the problem by combining the scattered data. Saturation: the manger becomes very intimate with the problem and its environment. reframed or polished and made to practical use. When the consicious mind is relaxed the subconsicious mind works to give some of the best ideas. the shape of layout begins to emerge. Illumination: here an idea actually flashes across mind of the decision-maker. 5. those ideas are obtained from many sources and using many techniques.

TYPES OF ADVERTISING I. (ii) Local advertising – small firms may like to restrict their business to State or regional level. (ii) Industrial Advertising – refers to those advertisements which are issued by the manufacturers/distributors to the buyers of industrial products. This category would include machinery and equipment. These advertisements are intended to promote sale of the advertised products by appealing directly to the buyers/consumers. industrial intermediates etc. established firms belong to this category. they spread out to wider horizons. (iii) Trade Advertising – advertisements which are directed by the manufacturers to the distribution channel members. advertising may be classified as (i) Consumer Advertising – a substantial portion of total advertising is directed to buyers of consumer products who purchase them either for their own use or for their household’s. advertising can be classified as (i) National advertising – some manufacturers may think that their target is the entire country. II. Generally large. The objective of such advertising is to promote sales by motivating the distribution channel members to stock more or to attract new retail outlets. (v) Public Awareness Advertising – by its very nature. (iv) Professional Advertising – there are certain products for which the consumer themselves are not responsible for the buying choice. such as wholesalers or retailers. They select media with a countrywide base. The classic examples are pharmaceuticals where the decision is made by doctors while the consumers are the patients. (iii) Global Advertising – multinational firms treat the world as their market. Target Group: On the basis of target groups aimed at. the marketing of causes is emotional. Some firms first localize their marketing efforts and once success has been achieved. Geographical Spread: on the basis of geographical spread. .

When we talk of visualization. Really’ speaking.AD LAYOUT In developing an ad. Slogans 2. At the commencement of his work he becomes intimate with the copy. His questions are: · Whether my advertisement will have headline? · Whether there will be a sub-headline? · Whether there would be a body copy? Whether to have illustration or a photograph? · Whether to include slogan? Etc. Quality marks etc. will there be a background? Which type? · Should photos be used? · Or line illustrations and sketches? · How large the headline should be? · What components should make the final copy: the product? . Headline. The basic elements with which a visualizer works are: 1. it is the process of designing the ad. Border 7. In terms of print ad. Coupon 3. what they would be doing. we talk about the art in advertising. At the second step. sub-heads 2. It is a process. the visualisation process is shared by the copywriter and the creative director of visualization. The illustration 4. which starts the design of the advertisement and results into the development of a finished ad layout in print. They decide: · Whether the product should be featured? · Whether people should be featured. Price 4. Seal of approval 6. A visualiser decides about the inclusion of different elements at the beginning of his work. The body copy 3. he foresees how all these elements will be appearing in the copy. the most important activity is visualization. Logo signature There may be elements like: 1. Package 5. The ultimate outcome of the process of visualization is the layout.

• Many thumbnails when made. whether it is black and white or color advertisement. and we are moving from abstract ideas to concrete shapes. • The various possibilities are drawn separately. They indicate the elements and their positions. • It is very difficult to say where the process of visualisation ends and where the shape of layout begins.we call them thumbnail sketches or first roughs. depending upon its overall significance. Visualizer operates under certain constraints: the space available. for example. Brand stimulates an association of the benefit. On paper. • Each element is assigned a weight. he foresees their relevance to each other. • It is a smooth transition however. But this very association is the benefit. to one another. a USP is · The creation of a distinct Brand position in the mind · The product differentiator becomes the Brand differentiator · Each ad must make a proposition to the customer. Dove soap. the shape of layout begins to emerge. USP or Unique Selling Proposition • USP makes the consumer identify the brand with a particular benefit. The benefit to the consumer should be said in the message. · The competitors should not have made that promise or proposition. contains ¼ moisturizer. Hence the benefit offered is that the skin will not dry up. give us an idea which one or more will best suit us.· The address and the name of the company? The picture? • Once he becomes clear about the components or elements he will include. How they would be placed in the copy? How the final product (advertisement copy) will look like? • Essentially it is a mental process of creating mental images of a well balanced whole made up of different elements. This paper work is the starting point of the process of layout. According to Rosser Reeves. Transformation from Visualisation to Layout • Once a visualiser exercises himself mentally and puts his pencil to paper. the type of paper on advertisement will be printed. . so that they can be made into larger sizes called roughs. the p technology employed etc. he makes ‘thumbnails’ which are rough sketches of the various alternatives.

. The main picture tries to position the picture. It tells the story quickly. • Coupon: This is a part of the advertisement that enables a consumer to get in touch with the advertiser.INGREDIENTS OF A GOOD LAYOUT The following are the ingredients of a good layout. Could be. Both rectangular and triangular ones are in popular use. or a sales pitch then it could be used. The offer or the request must follow in close heal. but could be four. People showing the product could be a better picture than the product itself. Although in most of the advertisements it normally lies at the end. o · Heavy o · Light o · Obvious o · Unobtrusive o · Plain o · Fanciful o · Useful o · Useless The practice you must know is the elimination of border in today’s context. clearly and decisively. blocks. Heavy or light would be at the discretion of the layout person. • Decoration: Greater interest for the applicability of decoration is in the fact that it should supplement or emphasize the message of the advertisement as a whole. and graphics but should not overshadow the foreground. Words in the heading should be short and verbs should be used to attract attention. It is normally on the right hand side keeping in mind that most people are right handed. tiles. Except when you have to present a key point. • Caption: Used to describe the sub-title. Should be short. • Background: Could have picture. Large pictures are preferred than small ones but it is not a hard and fast rule. It can attract the right target audience by showing the right picture. The illustration should show the benefit offered by the product. Sometimes difficult to locate. • Border: Is the frame of the advertisement. The obligation of the customer is given by their signature space. No hard and fast rule is there regarding the position of the coupon in the layout. The name and postal address is an integral part of any coupon. five or even six decked. • Illustration: It is the dominating picture in the ad. It could be the product itself or a model. • Heading: This is the title of the ad. But it is an important part of the layout. Small pictures are to make the copy comfortable.

Toyota. You should Remember What the Logo does for the Company · The difference and distinction aid recognition. what does the company or the brand stands for? A Corporate Identity is Important Because it • · Gives an image to the company and the brand in question. The consumer should look at other features in the layout . · Ownership logically follows. Wipro name is beneath it. Care free white surf across the bottle with red background. · It represents the personality of the company and its products. • Mascot: It is also known as the ‘Trade Character’ or ‘Trade Figure’. The popular logos of Tata. except when a discount or sale is mentioned. Star TV network. A logo is the image your business portrays. • Logo or Name Plate: This is the signature of the advertisement. The other issues in the layout that you must look upon are: · Price: Price is seldom the dominating feature in a layout. • · Gives a sense of pride to the employees. · Coca Cola: It is the complete name with a wave like image.’ · Tata: It is solidity. It is more or less associated with the cheapness of the product when a price is shown in the advertisement. etc are a good example. The logo goes on to make the Corporate Identity i. ‘Applying Thought. followed by a phrase. Maharaja of the Air India is a suitable example. The inclusion of the company’s name and address is not always important hence the logo or a specially designed image of the brand or the company can replace that. It sets the potential clients position and interpretation of your company. · There is pride in ownership. It may be defined as an illustration of either real or an imaginary figure or personality introduced into the advertisement to personalize the sales message or the name of the product or service.e. • · Reduces the cost of communication by standardizing thesystem. • · Positive influence on the ‘publics’ of the company. Mercedes Benz. Few Examples of Logos · Wipro: Sunflower with five colors of rainbow. The image is that of the letter ‘T’ and seems to engulfing the entire world. • · Audiences think of the company as per the desired image. · Corporate signature reinforces the pride of the company. • · Attracts the talented people to the company.

· Sub-heading: It is a secondary heading. It may be employed to either supplement and upport the heading or to ‘pick out’ the various selling points contained in the text. it may dominate the heading or the nameplate. Whether it is half a page or it is 30-second spot on television. · Product: It refers to the representation of the product for sale. But it is advised to show it in practice. • Appeals are broadly classified as rational. • In fact. 2 guidelines should be followed for the inclusion of subheading. Lower case letters are better that capitals. Firstly. It is especially important in outdoor advertising. Its importance is in relation to the advertiser’s message. · Trademark: It is the word or design by which the commodity is defined. or do. You must understand that a particular balance must be brought out in the layout so that there is a flow in the sequence of the various elements of the layout. the message content ultimately formulates some kind of benefit. something. Spacing is very critical. to use them to pick out the selling points in the text only when the text is too ‘heavy’ to invite attention otherwise. thrown up against heavy or futuristic background or by decoration. motive or reason why the audience should respond to. an idea or a unique selling proposition. It may be an appeal. to use them sparingly and secondly. A registered trademark should always be included in the layout. A number of photographs could be so put so as to form a well laid out composition. · Slogan: As described earlier it is a ‘Tabloid’ sales argument. The usage of price should be as minimal as possible. expanded letters better than condensed and roman letters better read than italic. The consumer should be able to read the copy with ease. It should not be too wide neither should it be too narrow. · Text: The copy or the reading matter is termed as text. It may form the background or be embodied in the border.that will make it desirable for him to look at the price naturally and would not associate negatively with it. a time. It could be featured in isolation. AD APPEAL Appeals and Advertising Message • The message content refers to what the advertiser has to say to the target audience that will produce the desired response. · Space: It goes on to describe the entire space that the advertiser has bought for sale. . emotional and moral appeals.

• People are ready and willing to give rational motives if asked why they have made a particular [purchase. that of nationally reputed brands at higher price. They attempt to show that the product would yield the expected functional benefit. food items.000 kms. are bought for their quality.. A rational ad becomes believable and effective. in the operating expenses of some brands of refrigerator is greater because they consume less electricity. or a timer in the kitchen mixer which switches off automatically after a predetermined time period. furniture. such as clothing. or style. • The following are some buying motives. In this case. (vi) Performance. (vii) Ease of use. • Rationality has come to be equated with substance. Many consumer goods. as of a ballpoint pen that won’t release excessive ink or skip under any circumstances. • Emotional appeals are those appeals. as of a car tyre that will give 30. (ix) Economy. as long he believes this to be true. (v) Long Life. a person. . They involve some sort of a deliberate reasoning process. • Consumer durables of high value ‘are also often bought on the basis of rational appeals. as of a screwdriver with a magnetized tip which clings to the metal head of the screw. kitchenware and a host of consumer durables for their high quality. which are normally. stereophonic music systems. too. considered rational under ordinary circumstances: (iii) High Quality : People buy television. he is exhibiting a rational motive. beverages. electric gadgets. thinks his reason will be accepted as a “good” one by his social group. which are not preceded by careful analysis of the pros and cons of making a buying. as of a two-wheeler scooter. refrigerators. (viii) Re-sale Value. or slightly inferior to. Many two-wheeler vehicles claim a better mileage per litre consumption of fuel than similar other vehicles. which a person believes would be acceptable to other members of his social group. etc. Whether this is true or not. (iv) Low Price : Many people buy low-priced locally made air conditioners for their homes because they believe that these products will show a product performance similar to.• Rational appeals are those directed at the thinking process of the audience. before its utility has been exhausted. “Bajaj” has a better re-sale value than any other make. and not merely because of their taste or fashion. Although there may be some disagreement regarding which motives are rational and which are emotional. • Emotions are those mental agitations or excited states of feeling which prompt us to make a purchase.

and then suggest the use of a specific brand of toothpaste to get rid of such fears. . They present the fear of tooth decay or unhealthy gums or bad breath. The use of fear appeal in getting people to start doing things they should is very common. • For example. a positive appeal stresses the positive gains to a person from complying with the persuasive message. Fear Appeals • The fear appeal is most important among emotional appeals. The level of emotionality should not exceed that experienced by the consumer. and may not be recognized by a person. these two should be compatible. while negative appeals use the strategy of “increasing” a person’s anxiety about “not using” a product or service. which are particularly important from the advertising point of view. (ii) There should be a natural flow of feelings. (iii) Execution should not be exaggerated. Preferably. Precautions While using the Emotional Route (i) The advertising should have relevance. therefore. he is unwilling to admit it to others because he feels that it would be unacceptable as a “proper” reason for buying among his associates and colleagues. • In general. It is said that the message’s effectiveness increases with the level of fear it generates. name the negative appeals first. • We shall also. the negative appeal stresses his loss if he fails to comply. • Negative Emotional Appeals: An advertiser may try to induce a particular behavioral change by emphasizing either positive or negative appeals. or even if he is fully aware that such a motive is operating. We give here the different dimensions of emotional appeals. • Emotional appeals are designed to stir up some negative or positive emotions that will motivate product interest or purchase. Positive appeals use the strategy of “reducing” a person’s anxiety about “buying and using” a product. • Many ad messages of toothpaste employ this appeal. and so on. are listed below. • Following several motivation research studies. and also the most effective. an advertising campaign to get the target audience to buy fire insurance may stress the positive aspect -low cost relative to other investment.the danger of losing one’s possessions or the ravages of fire. (iv) There is a difference between a consumer’s emotions associated with the product / brand and a consumer’s emotional reaction to the ad copy itself. the services the insurance company provides. or it may stress the negative aspect of not getting insurance . • Emotional motives may be below the level of consciousness. it has been found that negative emotional appeals are more effective than positive ones. or a combination of both. • Different emotional appeals. emotional appeals should be avoided. If the product needs attribute-based rational advertising. early settlement of claims.

” It further. • Sex appeals in contraceptive ads have become explicit. humor.” In the closing sentence. Sex Appeals in Advertising • Sex appeal is being increasingly used in Indian advertising to overcome the culture in the print as well as broadcast media and to grab attention. the sex of the models and the target segment also affect the effectiveness of the ad. as in the case of teenage boy and girls who want to be “in jeans” because all their friends wear jeans. Because Johnson & Johnson care for your baby almost as I much as you do. and swimsuits. Appeal that are consistent with the product. as shown by a person who buys the most expensive automobile (Mercedes. undergarments.) he can afford in order to impress his friends. • Functional sex appeals have highest recall and so also symbolism. • The sexual appeals are justified in case of products like personal products. (iii) Desire to attract the opposite sex. as illustrated by people who build an ultra modem home in an area of traditional homes.Positive Emotional Appeals • Positive appeals highlight product benefits and attributes capable of influencing consumer behavior. It says: “Gentle as a kiss on your baby’s tender skin. as shown by a teenage girl who buys a new cosmetic in order to make her skin more beautiful. goes on to say: ‘’Johnson’s Baby Soap. Most baby food products have a mother’s love appeal. etc. (iv) Desire for prestige. Toyota. They may not go well with industrial products. and are more visual than verbal. Inappropriate sex appeals have lowest recall. (ii) Desire to confirm. . • Females may find the sexual ad offensive and so its use for a female targeted product runs a risk. Love for family is perfectly employed in an ad of Dettol soap that has been called “The Love & Care Soap. pride. • There might be gender-related responses to sex appeal. panties. The manner of sex portrayal. lead to a higher recall. • The relevance of the appeal to the product is very important. prestige and joy.” Mother’s love for the baby has been appealed to in ad of Johnson’s baby soap. • Does sex really sell? Or is it a negative influence on consumer? • The answer is not either affirmative or negative for these questions. bras. the ad appeals by saying: “Give your family the Loving Care of Dettol Soap.” Other emotional motives are illustrated in the following list: (i) Desire to be different. and depends upon a number of factors. They are love. • Fantasies are also used as sex appeals.

‘’Promise. in consumer advertising. • Media clutter may be one reason that leads to the explosion of sexual imagery in advertising. gloves. Feature-oriented Appeals: The basic message is about product features. region to region. Product-Oriented Indirect Appeals: They are Grouped into three Classifications i. followed by a message that extols the advertised brand as a product that satisfies that need. iii.ad message discards other methods of hair removing . alcohols. characteristics and attributes. The. and society to society. For Calvin Klein. • Blatant references to sex are suddenly the in-thing in American advertising. Direct and Indirect Appeals Another way of classifying ad appeals. some ads may have a direct appeal. jeans. country to country. they leave some ambiguity in the message so that the consumers may be free to interpret it and the need to which the advertiser is appealing. Product Comparison Appeals: “The basic message emphasizes the differences between the advertised brand and the competing brands. Indirect Appeals • Indirect appeals are those that do not emphasize a human need. of course. Cherry shoe polish. Direct Appeals • Direct appeals are those that clearly communicate with the consumers about a given need. Then it goes on to inform you how gently hair is removed with Anne French. but. Because advertisers understand the influence of needs upon selective perception. but allude to a need. . sex has always been a favorite selling point. waxing. Even the same person reacts to them differently at different stages of his life cycle.’’ the unique toothpaste with the time-tested clove oil. has a net advantage over those with which it is compared. otherwise the whole exercise becomes futile. The advertised brand. and threading. Examples: Instant Shine. Examples: Anne French hair remover ad: “How much cruelty can a woman’s skin bear?” The headline is a searching question.they are shaving. • In Industrial advertising. Marketers promoting perfumes. the direct appeal plays a very limited role. Use-oriented Appeals: The basic message emphasizes specific in-operation and/or post-operation advantages of the brand advertised. Sex appeals are interpreted differently from time to time. person to person. watches and cars are resorting to this route. ii. comes about whether we they are linked directly or indirectly with consumer needs. • Ads of perfumes have traditionally focused on the sensuous. satisfying the customer’s technical need.

Example: The ad series by Shriram group. It must be interesting. (iv) Sub-conscious-oriented Appeals: The basic message is distinguished and is directed at the consumer’s subconscious or unconscious) need. The ad says: “Some possessions define a character. Essentials of an Advertisement Appeal i. The Shriram Experience. The group may be a reference group. Selling Points and Appeals . namely: “Indian Corporate Evolution. This message refers indirectly to Maslow’s esteem need. makes an effort to mould a brand image.Consumer-Oriented Indirect Appeals: They are Further Divided as Follows (i) Attitude-oriented Appeals: The basic message is one that is in line with the consumer’s attitude . the image oriented approach is distinct in the sense that here the advertiser. but are veiled in some manner by messages appealing to the buyer’s conscious mind. you discover the epitome of international fashion. vi. a social group. A cigarette so distinguished. There is an intention to create a specific brand image. it says: “we are Indians. consciously and purposefully. These messages are aimed at the buyer’s dream world. ii. We must remember our roots. Example: ‘Petals’ brassieres of VIP are advertised with a dreamy message: “As you flower into a woman. One strategy is to create a brand image that “fits” either the self-image or self-ideal image of the target market. it’s by appointment to your Majesty.” In one of the ads. a “strong” cigarette can only give relaxation. (ii) Significant Group-oriented Appeals: The basic message emphasizes the kind of group that uses or approves of the advertised brand. or any other group that is significant for the consumer target. It must have credibility.” Then it goes on to state the group’s belief in Indian traditions and the advantages it shares with the country.” (iii) Life Style-oriented Appeals: The basic message emphasizes an identifiable life style relevant to a defined target market.” (v) Image-oriented Appeals: Although all advertising appeals create a brand image in the minds of consumers. One needs a Charminar. It must have finality and be complete. iii. particularly after a day’s hard work.his value – belief structure. iv. It must be communicative. Discover Petals. v. For some hard smokers. or a peer group. It must contain truthful” information. Some distinguish it. Example: An ad of Charminar cigarette making an appeal with its strong taste. It must be thematically sound.

milk alone cannot give him the iron he needs. Farex. it systematically develops the benefits and promise offered by the product. • A perfectly worded headline can create the required excitement. the job of the sub-head is easier. • Each headline must relate clearly and specifically to the intended audience and to the rest of the advertisement. composition statements. quality statements. and gives convincing arguments in favor of. Some selling points are primary selling points and the rest are subsidiary selling points. explains.Selling points are those product attributes that are listed in the advertisement copy to impress upon the consumer the significance of a product to him. both emotional . Sub-heads should further carry the idea of theme and should help readers to have more knowledge of the product and services. and statements from celebrities. • The words and pictures should be complementary to each other. which is enriched with iron.” The supportive sub-heads say. warnings and appeals. “After 3 months. highlighting the product features and its USP. • Headlines may be in many forms . • The ad copy may be a word-message. descriptive or narrative or performance statements. One of the ads of F AREX. features and product values. and the sub-head suggests that the product. After the Sub-head Comes the Body Copy It stimulates liking and preference for a product.they may be questions. Copy of Ads in Print The most Important Copy Element is the Headline Idea • If the headline idea fails to attract the prospect to the message and the product. the remaining parts of the ad are wasted. Give him Farex enriched with iron. the claims made about the superiority of the advertised product. a sensational” scene most appealing to prospects. Selling points in order to be effective must have the force to appeal to a particular buying motive. or it may have pictures with a short message or a slogan. has its headline: “Your baby is born with a 3-months’ gift of iron. news flashes. They could be specifications. • There is no right or wrong length or form for an effective headline. a baby food item. In the body copy.” The headline has highlighted the problem of necessarily giving iron to the baby 3 months after its birth. is the right solution of the problem. Several such examples may be given of the headline and its supportive subheads. for they (subheads) generally expand or amplify the headline idea. and evidence in support of. So selling points successfully touch upon the buying motives. logically and rationally. After the Headline Come the Sub-heads If the headline has already rightly suggested the product’s value to the consumers. product attributes.

” “send enquiries immediately to. it is mainly filled with news. Due care should be exercised while handling emotional appeals. It should come sentence by sentence to fulfill the promise made in the headline. but not the least. Moreover. the market and competition. Therefore. Since an ad is a one-way communication. Our body copy should contain the required reasoning to convince the customers to spend their money on our product. There are varying types of closing an idea “call to action. or have the time to read.” etc. if over done. it is incorrect to say that either the short or the long copy enables us to make the right approach in an ad. there is the possibility that the entire credibility of the ad message would be lost. Emotional appeals are generally useful when advertising “convenience or style goods” rather than consumer durables. and a reference list of customer patronizing the product all these are given in the body copy. guarantees of satisfactory performance. it should be closed with enough information and motivation for the buyer to act. Nothing more and nothing less. The copy of a . testimonials.” “buy now. The length of the body copy should be just enough for you to say all that has been promised in the headline. Abram Games advocates ‘maximum meaning. minimum words. A rational appeal is appropriate for industrial goods. depending upon the nature of the product. information and local gossip.and rational reasons are put forward to persuade consumers to buy a particular brand. It is primarily a source of news and information. it may be mentioned here that the closing idea in an ad copy is as important as closing the sale in personal selling. its test results.’ A short copy may not be fully communicative at times. Facts and figures about the product.” “visit today our dealer/ stockist. We should always be able to make the right emotional appeal. The appeals may be both objective and emotional. Copywriting for newspaper ads is different from copywriting for magazine ads because the newspaper has a different editorial environment. Last.” “announcement of festival discount. and is hardly read for entertainment. But readers may not often like. the lengthy body copy of an ad unless the headline is so attractive and persuasive that they automatically begin to read it. and more details can be presented in it to the reader. Long Copy versus Short Copy A long copy looks impressive. Sometimes you communicate better by writing short copy instead of being verbose. facts. . It is not read the way your favorite magazine is read.

) Descriptive copy: In a non-technical manner. it has a high impact headline. DIFFERENT TYPES OF COPY  S cientific copy (Technical specifications are specified. Humorous copy: Humor has been heavily used in advertising-especially in TV commercials. the same unique selling proposition (USP) and even the same appeal . When a national or international exhibition is held.newspaper ad is generally short. Newspaper ads are generally placed in. companies do participate by exhibiting their products. which mostly concentrates on one strong selling idea. companies release newspaper ads saying: “Meet us at CHEMTECH ’82. Endorsement copy here a product is endorsed by an opinion . we find the colloquial copy. Pavilion No. you had ads like – ‘Britannia Khao. first newspaper ads had copy based on this great sports event. the product attributes are described. World Cup Jao’. the narrative is humorous. For example.” Many examples can be given to drive home the point that the copy of a newspaper ad has to be different from that of the magazine ad even for the same product. Especially during the world cup days. It looks very commonplace announcement. Hall-2. and to synchronize with the inauguration of this great extent. on the sports page. The copy of such ads has to be different from that of magazine ads even for the same product. when the first satellite was launched. E. High involvement goods or durable goods or industrial goods. etc. The copy uses direct active sentences. Maybe.g. Topical copy comes about when a copy is integrated to a recent happening or event. The benefits of the product emerge from the story. It should make an imprint on our memory. it has strong appeal. many companies released newspaper ads mentioning their association with such a great national event by Way of supplying their’ products and services to make it a success. Again. a particular place in the classified columns.4. It could even become a dialogue. It is just as heavily suspect. when Asiad ’82 was held. Colloquial copy: Here informal conversational language is used to convey the message. But effective humor makes the advertisement noticeable. There are short and pithy sentences. the investment page. In many TV advertisements. Narrative copy: Here a fictional story is narrated.objective or emotional. you have to tie up your copy with the current news event. Or else.

Only a distinguished and favorable atmosphere is created for the sale of the product. Comparative copy here two brands are compared either in good light or in a way to belittle the other.leader who has a large following. several questions are put forward not to seek answers but to emphasize a certain attribute. One attribute may be chosen and repeated for several times. These are the words that will be read first and draws the readers’ most attention. and its benefit to the consumer. e. Each reason illustrates a particular attribute. The cola war can be an excellent example of this type. Prestige Copy The product is not directly advertised. Disruptive copy comes about when there is a disruption in the way of thinking or conventional thinking. Sub heads: It is an additional headline that may appear above or below the main headline. Advertorial is a newspaper or magazine feature that appears to be edited but is really an ad. Body copy: . It is considered as the most important part of the print ad. “Reason Why” Copy It is known as an explanatory copy where the reasons for a purchase are explained. each time an occasion is given to justify it. I shall be discussing this at length in a later lecture.g. The copy is used to build an image. Questioning Copy: In this copy. They are longer than the headline. Intentional copy comes about when advertisers copy elements from rival creatives in the same product category in order to create dissonance with a view to secure competitive foothold. Wordless Advertisements: There are at times billboards with only an inscription like Amul. Otherwise they are totally wordless. more like sentence and serve as a stepping stone from headline to body copy. Wordless advertising is an example of non-verbal communication (NVC) and are pictorially. AD PRODUCTION Creating print ads: Headline: It contains the words in the leading position in the advertisements. Liril Vs Cinthol ads both emphasizing lime freshness.

this includes the rental of equipment and production facilities. company image or theme. Signature is the name of the company. catering. Selecting key production personnel: At this point the production personnel are bought on board. Seals. Deciding on locations: Selecting the location for the ad is the next step Deciding on talent: Depending upon the type of production. . they appear in all the company ads are immediately recognized. It contains the complete sales story and is the logically continuation of the headline and sub heads. In addition to the producer and writer the personnel includes the production manager and director and in general the key creative team members. Too many copy points can confuse the listener. It covers the attributes. auditions may take place at the point as part of selecting the people for the various roles.The main text portion included in the advertisement is called the body copy. Deciding on the remaining production personnel: At this point arrangements can be made on key technical personnel equipment facilities. logos and signatures: A seal is awarded when a product meets standards established by a particular agency or institute. to plan and develop the systematic schedule for production. Slogans / theme lines/tag lines: It is a clever phrase that serves as a reminder of a brand. transportation. Logo is distinctive mark that identifies brand or company. benefits and utility of the product or services. Radio Commercials: Keep it simple and short (KISS): Build the commercial around one central idea. Once decisions are made contracts can be negotiated and signed. TV commercials: Developing a production schedule: This is the first step. Maintain Clarity: At the end of the commercial. (food and refreshment trucks) and on location accommodations (for over night stays) must also be arranged. the listener should understand the message points.

While concluding the message repeat the product promise and register the brand name. Make it interesting: It is the manner of presentation that makes the product and services interesting or fascinating. . Rehearsals and shootings: Depending on the type-e of production. Black type on a high contrast background usually is most suitable. Selecting video inserts still photos and graphics: During this phase arrangement can be made for shooting. Post production follows up: Final bills have to be paid and financial statements are suppose to be totaled. Creating web ads: Web site pages should be designed like posters in which the graphics are eye catching but not demanding too much downloading time. Create distinctiveness: The first few seconds are critical in capturing or loosing the listeners’ attention. rehearsal may take place either minutes or days before the actual shooting. Frequently address the listeners. Initial decisions on music are made at this point.Create rapport: The tone of voice should be warm and personal as if talking to a friend. Copyrights clearances and royalties must be worked out for music and visual inserts. Obtaining permits. insurances and clearances: In major cities and in many foreign countries it is not possible to just go to the location of their choice and start tapping. licenses. The editing phase: After shooting is completed the producer. Necessary access permits. director and video tape editor review the tapes and decisions are made. Make it believable: Each production has its good points but avoid making over statements and obvious exaggerations. Everything should be big enough to be seen on the smallest screen. security bonds: Insurance policies must be arranged.

Should be convenient for the users to move more the the site and find easily the information they look for Websites and banners should include instructions such as “click here” It would be of added advantage if users can customize the site in case they wish to visit it regularly A major strength of internet sites are feedbacks communications. It is valid and reliable and it measure what is really needed Conducting research to measure advertising effectiveness: Source factor: An important question is whether the spokes person being used is effective and how the target market will respond to him/her (eg: Brittney spears had been as effective spokesperson for pepsi) the question was whether she would be able to retain this relationship as she got older Message variables: Both the message and the means by which it is communicated are bases for evaluation(eg: in beer example the message may not be strong enough to pull readers into the ad by attracting their attention or clear enough to help them to evaluate the product. So the marketing objective considers that advertising communications objectives are not a good measure of advertising effectiveness. An effective site collects information from visitors in a systematic manner Essential of effective testing: Establish communication objectives: With very few exceptions it is almost impossible to show any direct relationship between advertising and sales. Use consumer response model: Use both pretest and post test: Pre test is nothing but ad campaigns Post test may be essential to determine the real effectiveness of advertising campaign. . Understand and implement proper research: It is important to understand research methodology to determine what constitute a good research design. Use multiple measures: Ad may influence the consumers in a number of ways. some of which can be measured by using traditional methods and other may require more advanced methods such as psychological responses.

Product Characteristics o Complexity: How much information must be communicated.)/Sales promotion (free samples) o Growth: Persuade Differentiate from competitors offering o Maturity: Remind Reminder advertising. Research may be designed to determine which media class [broad caste verses print} sub class [news papers verses magazines] or within a particular medium [front page verses back page] Budgeting decisions: Finally. special publics or the general public. greater need for personal selling 4. the greater the need to use personal selling. Identify the Stage of Product Life Cycle o Introductory: Inform Publicity/Advertising/Sales force (interm. or incentive for the product. Identify the Audience Individuals. test drives Selecting Promotional Tools A marketer must do the following while planning and sending communications to a target audience: 1. Intermediaries vs Consumer 2. . cocktail parties. to resellers. Cirrus. groups. The more complex the message. Sales promotion (coupons) o Decline: Cut budget 3. sales persons or consumers. and what state they need to be moved to.Media strategies: Media strategies need to be evaluated. but purchase is the result of a long process of consumer decision making.” Designed for immediate (short term) increase in product sales. offering added value. decisions for making clear budgets are done..Sweepstakes. Stages of Buying Decision In many cases the final response sought is purchase. o Risk: Greater risk. Need to know where the target audience now stands (in the process). ADVERTISING AND SALES PROMOTION UNIT – IV Definition: “Materials that act as a direct inducement..

which are used only in particular seasons. intention is to create a strong consumer demand. gift. primarily advertising and sales promotion. Adoption Process o Not Aware--Advertising/Publicity o Aware--no knowledge Advertising/Publicity o Interest--how do they feel? Personal Selling/SalesPromotion/Advertising o Evaluation--should they try? sales promotion/personal selling o Trial--test drive/sales promotion o Adoption--do they purchase? Reminder/reinforce--advertising Communication programs goal must lead consumers to take the final step. Stresses personal selling. can use sales promotions and advertising used in conjunction. refrigerator. etc on buying. room heater. (i) To introduce new products: Have you ever heard about distribution of free samples? Perhaps you know that many companies distribute free samples while introducing new products. glycerin soap etc. and at the same time it also attracts some new customers to buy the product. o Pull-promotes directly to consumers. The consumers after using these free samples may develop a taste for it and buy the products later for consumption. Thus. These are some of the tools used to encourage the customers to buy the goods. Channel Strategies -Push Vs Pull Policy o Push-promotes product only to the next institutions down the marketing channel. customers are generally attracted towards the product that offers discount. winter clothes. it helps to retain the existing customers. sunscreen lotion. (iii) To maintain sales of seasonal products: There are some products like air conditioner. Since consumers are persuaded to seek products in retail stores. 5. (ii) To attract new customers and retain the existing ones: Sales promotion measures help to attract or create new customers for the products. prize. retailers will in turn go to wholesalers etc (use channels overhead) Objectives of Sales Promotion (i) To introduce new products (ii) To attract new customers and retain the existing ones (iii) To maintain sales of seasonal products (iv) To meet the challenge of competition Let us learn about these objectives in details. fan. cooler.. While moving in the market. To maintain the sale of .

sales promotion is important to increase the sale of any product. From the point of view of manufacturers Sales promotion is important for manufacturers because i. the consumer gets all information about the quality. Similarly you may get discount on winter clothes during summer. So sales promotion measures have become essential to retain the market share of the seller or producer in the product-market. A business cannot survive if its products do not sell in the market. New products frequently come to the market and at the same time improvement also takes place. From the point of view of consumers Sales promotion is important for consumers because i. all marketing activities are undertaken to increase sales. So incentives need to be offered to attract customers to buy the product. it stabilizes sales volume by keeping its customers with them. it helps to increase sales in a competitive market and thus. Various incentives under sales promotion schemes help to retain the customers. For example. increases profits. when a new product is introduced or there is a change of fashion or taste of consumers. iii. iv. features and uses of different products. Thus. certain schemes like money back offer creates confidence in the mind of customers about the quality of goods. it gives financial benefit to the customers by way of providing prizes and sending them to visit different places. these types of products normally the manufactures and dealers give off-season discount. iii. Still the product may not sell. ii. Thus. it helps to introduce new products in the market by drawing the attention of potential customers. existing stocks can be quickly disposed off. you can buy air conditioner in winter at a reduced price. the consumer gets the product at a cheaper rate. Importance of Sales Promotion • The business world today is a world of competition. In the age of competition it is quite much possible that a customer may change his/her mind and try other brands. (iv) To meet the challenge of competition: Today’s business faces competition all the time. iv. ii. and . • Producers may spend a lot on advertising and personal selling. • Let us discuss the importance of sales promotion from the point of view of manufacturers and consumers.

• Second. 4. 3. Attracting customer traffic. . and not as a replacement for other tools. C. Nature of Sales Promotion  Encompasses all promotional activities and materials other than personal selling. the increasing tendency of businesses to focus on short-term results has helped spur growth in sales promotion. GROWTH OF SALES PROMOTION • Sales promotion has grown substantially in recent years. it helps to raise the standard of living of people. 4. Consumers may not make purchases when the items are sold at regular prices. The image of the firm may be lessened if it always runs promotions. Sales promotion must be viewed as supplementary. which can provide an immediate boost in sales. Use of such goods improves their image in society. • First. Offering quick results. Generating customer enthusiasm and patronage. 3. By exchanging their old items they can use latest items available in the market. advertising and publicity. A. Sales promotion also has several disadvantages. Increasing impulse purchases and volume sales. as follows: 1. The advantages of sales promotion include the following: 1.  Often used in conjunction with other promotional efforts. Developing channel member cooperation. Maintaining brand or company loyalty. 5. Sales promotion may shift attention away from the product and onto secondary factors. Providing customer value and a reminder function.  Grown dramatically in the last ten years due to short term focus on profits. It provides reluctant decision makers with an incentive to make choices by increasing the value offered by a particular brand. 6. B. Consumers may perceive a decline in product quality. 5.  Funds are usually earmarked for advertising are transferred to sales promotion. 2. Profit margins are often lower for a firm. 7. There are several reasons for this dramatic growth in sales promotion. consumers have accepted sales promotion as part of their buying decision criteria. 2. Product managers also tend to view sales promotion as a way to differentiate their brand from that of competitors in the short term. v.

cleaning supplies. match books etc. the emergence of computer technology has enabled manufacturers to get rapid feedback on the results of promotions. o Balance between short term sales increase and long term need for desired reputation and brand image. . the manufacturer held the power in the channel of distribution. T Shirts. o Shift focus away from the product itself to secondary factors. customers may stock up during the promotion. Mass marketers utilized national advertising to get directly to consumers. however. Many sales promotions are designed to provide benefits to the retailers. SALES PROMOTION TECHNIQUES /TOOLS CONSUMER-ORIENTED SALES PROMOTIONS • Consumer sales promotions are steered toward the ultimate product users— typically individual shoppers in the local market—but the same techniques can be used to promote products sold by one business to another. Sales Promotion Opportunities and Limitations o Increase in sales by providing extra incentive to purchase. such as computer systems. • Finally. With consolidation and the growth of major retail chains. Redemption rates for coupons or figures on sales volume can be obtained within days. therefore no product differential advantage. • Third. o Objectives must be consistent with promotional objectives and overall company objectives. with high payoffs. o Impulse purchases increased by displays o Contests generate excitement esp. an increase in the size and power of retailers has also boosted the use of sales promotion. represent decline in the product quality. o Attract customer traffic and maintain brand/company loyalty. May focus on resellers (push). o Reminder functions-calendars. trade sales promotions target resellers—wholesalers and retailers—who carry the marketer's product. In contrast. consumers (pull) or both. retailers have gained the power to demand incentives from manufacturers to carry their products. Historically. creating a demand for the heavily advertised brands that stores could not afford to ignore. and machinery. Limitations o Consumers may just wait for the incentives o May diminish image of the firm. o Reduces profit margins. • Following are some of the key techniques used in consumer-oriented sales promotions.

Sometimes the products are physically banded together. Price discounts may be initiated by the manufacturer. They grant specified savings on selected products when presented for redemption at the point of purchase. • Refund or Rebate: A refund or rebate promotion is an offer by a marketer to return a certain amount of money when the product is purchased alone or in combination with other products. For instance. A bonus pack rewards present users but may have little appeal to users of competitive brands. the retailer. For price reduction strategies to be effective. or in storefront windows. Retailers who offer double or triple the amount of the coupon . they must have the support of all distributors in the channel. price reductions may be posted on the package. a manufacturer may "pre-price" a product and then convince the retailer to participate in this short-term discount through extra incentives. and creates on-shelf excitement by encouraging special displays. When a bonus pack is offered. on signs near the product. accelerate their use. Price deals work most effectively when price is the consumer's foremost criterion or when brand loyalty is low. refunds or rebates. or the distributor. stimulates the purchase of postponable goods such as major appliances. or to convince existing customers to increase their purchases. • Bonus Pack or Banded Pack: Another type of price deal is the bonus pack or banded pack. The main types of price deals include discounts. and paying retailers a handling fee. or purchase multiple units.PRICE DEALS • A consumer price deal saves the buyer money when a product is purchased. usually do not induce first time buyers. bonus pack deals. This technique is routinely used in the marketing of cleaning products. A banded pack offer is when two or more units of a product are sold at a reduction of the regular single- unit price. food. and they appear to build brand loyalty rather than diminish it. including fliers and newspaper and television ads. • Price deals are usually intended to encourage trial use of a new product or line extension. • Coupons: Coupons are legal certificates offered by manufacturers and retailers. Refunds aim to increase the quantity or frequency of purchase. At the point of sale. and health and beauty aids to introduce a new or larger size. Refunds and rebates are generally viewed as a reward for purchase. Manufacturers sustain the cost of advertising and distributing their coupons. and coupons. Price discounts alone. • Price Discounts: Buyers may learn about price discounts either at the point of sale or through advertising. however. an extra amount of the product is free when a standard size of the product is bought at the regular price. Many types of advertisements can be used to notify consumers of upcoming discounts. to recruit new buyers for a mature product. Price discounts are especially common in the food industry. redeeming their face values. to encourage customers to "load up" on the product. Existing customers perceive discounts as rewards and often respond by buying in larger quantities. This strategy dampens competition by temporarily taking consumers out of the market. where local supermarkets run weekly specials. such as in toothbrush and toothpaste offers.

First. Second. specialty retailers or newly opened retailers will distribute coupons door to door or through direct mail. Sometimes. mostly due to legal restrictions on gambling that many marketers feared might apply to sweepstakes. or they may be distributed by a retailer who uses them to generate store traffic or to tie in with a manufacturer's promotional tactic. In fact. events tend to attract a homogeneous audience that is very appreciative of the sponsors. if a product fits well with the event and its audience. such as booths. SPECIAL EVENTS • According to the consulting firm International Events Group (IEG). compared to producing a series of ads. CONTESTS/SWEEPSTAKES • The main difference between contests and sweepstakes is that contests require entrants to perform a task or demonstrate a skill that is judged in order to be deemed a winner. event sponsorship often builds support among employees—who may receive acknowledgment for their participation— and within the trade. Many elements of event sponsorship are prepackaged and reusable. dropped door to door. They may be delivered directly by mail. Coupons can be inserted into. and ads. • Finally. as well. shoulder the extra cost. since they require some sort of skill or ability. contests were more commonly used as sales promotions. though. Therefore. participation in contests is very low compared to sweepstakes. attached to. Manufacturers disseminate coupons in many ways. or distributed through a central location such as a shopping mall. Sunday supplements. In this way. large companies like RJR Nabisco and Anheuser-Busch have special divisions that handle nothing but special events. while sweepstakes involve a random drawing or chance contest that may or may not have an entry requirement. • At one time. newspapers. including paying the face value. Special events’ marketing is available to small businesses. or free-standing inserts (FSI) in newspapers. through sponsorship of events on the community level. retail coupons are equivalent to a cents-off deal. • Furthermore. Retailer-sponsored coupons are typically distributed through print advertising or at the point of sale. businesses spend over $2 billion annually to link their products with everything from jazz festivals to golf tournaments to stock car races. event management is relatively simple. PREMIUMS . Coupons may also be distributed through the media—magazines. Retailers who offer their own coupons incur the total cost. • Special events marketing offer a number of advantages. displays. or printed on a package. the impact of the sales promotion will be high.

The stamp company provided redemption centers where the stamps were traded for merchandise. are prime examples. • Incentives that are given for free at the time of purchase are called direct premiums. hotels' frequent-traveler plans. • Trading stamps. Other types of direct premiums include traffic builders. and bonus-paying credit cards are common continuity programs. Mail premiums. • The premium may be given for free. airlines' frequent-flyer clubs. continuity programs sometimes prove a deciding factor among those competitors. or saving bar codes or proofs of purchase. • Today. Some examples of premiums include receiving a prize in a cereal box or a free garden tool for visiting the grand opening of a hardware store. The premium is still valuable to the consumer because they cannot readily buy the item for the same amount. . retailers' frequent-shopper programs. unlike direct premiums. popularized in the 1950s and 1960s. • Continuity programs demand that consumers keep buying the product in order to get the premium in the future. For example. a homeowner may receive a free clock radio for allowing an insurance agent to enter their home and listening to his sales pitch. The garden tool is an example of a traffic-builder premium—an incentive to lure a prospective buyer to a store. an electronics manufacturer might offer free software to an office manager who agrees to an on-site demonstration. Similarly. and referral premiums. require the customer to perform some act in order to obtain a premium through return mail. The final category of direct premiums. • A premium is tangible compensation that is given as incentive for performing a particular act—usually buying a product. referral premiums. • A catalog listing the quantity of stamps required for each item was available at the participating stores. or may be offered to consumers for a significantly reduced price. A door-opener premium is directed to customers at home or to business people in their offices. plus there is no confusion about returning coupons or box tops. continuity programs also reduce the threat of new competitors entering a market. These offers provide instant gratification. • By rewarding long-standing customers for their loyalty. An example might be a limited edition toy car offered by a marketer in exchange for one or more proofs-of-purchase and a payment covering the cost of the item plus handling. CONTINUITY PROGRAMS • Continuity programs retain brand users over a long time period by offering ongoing motivation or incentives. door openers. rewards the purchaser for referring the seller to other possible customers. • When competing brands have reached parity in terms of price and service. Consumers usually received one stamp for every dime spent at a participating store.

• An alternative is door-to-door distribution. either free or for a small fee. some retailers resent the inconvenience and require high payments for their cooperation. particularly when a product is new or is not a market leader. • In general. but increases in postage costs and packaging requirements have made this method less attractive. or through retailers using special displays or a person hired to hand out samples to passing customers.SAMPLING • A sign of a successful marketer is getting the product into the hands of the consumer. or even people. dwellings. hotels. The most popular has been through the mail. An ad may include a coupon that the consumer can mail in for the product. trade sales promotions hope to accomplish four goals: o Develop in-store merchandising support. • There are several means of disseminating samples to consumers. an effective strategy is giving a sample product to the consumer. • A final form of sample distribution deals with specialty types of sampling. For instance. or dormitories and include a number of different types of products. particularly when the items are bulky and when reputable distribution organizations exist. • Sometimes. • Another method is distributing samples in conjunction with advertising. • Though this last technique may build goodwill for the retailer. TRADE-ORIENTED SALES PROMOTIONS • A trade sales promotion is targeted at resellers—wholesalers and retailers—who distribute manufacturers' products to the ultimate consumers. . thus helping to eliminate seasonal peaks and valleys. such as newlyweds. some companies specialize in packing samples together for delivery to homogeneous consumer groups. • The objectives of sales promotions aimed at the trade are different from those directed at consumers. o Expand or improve distribution by opening up new sales areas (trade promotions are also sometimes used to distribute a new size of the product). or it may include an address or phone number for ordering. students. But in order for sampling to change people's future purchase decisions. the product must have benefits or features that will be obvious during the trial. or tourists. • Direct sampling can be achieved through prime media using scratch-and-sniff cards and slim foil pouches. new parents. Such packages may be delivered at hospitals. o Control inventory by increasing or depleting inventory levels. as strong support at the retail store level is the key to closing the loop between the customer and the sale. This method permits selective sampling of neighborhoods.

companies spend over $9 billion yearly on these shows. trade shows. • For resellers and salespeople. sales contests can also be an effective motivation. signs. display cartons. and a $20 bonus for each unit of model B. • For example. to explain the product or the promotional campaign. such as the product's name. • Trade shows provide a major opportunity to write orders for products. push money (PM)—also known as spiffs—is an extra payment given to sales-people for meeting a specified sales goal. Some of the most common forms of trade promotions—profiled below —include point-of-purchase displays. a manufacturer of refrigerators might pay a $30 bonus for each unit of model A. High product visibility is the basic goal of POP displays. • Probably the most effective way to ensure that a reseller will use a POP display is to design it so that it will generate sales for the retailer. and be compared directly to competitors. disseminate information. In fact. o Generate excitement about the product among those responsible for selling it. sold between March 1 and September 1. anything increasing product visibility is valuable. • Related to trade shows. price cards. a prize is awarded to the organization or person who exceeds a quota by the largest percentage. The meetings may be used to motivate sales agents. • In industries such as the grocery field where a shopper spends about three-tenths of a second viewing a product. push money. deal loaders. sales meetings. • POP displays also provide or remind consumers about important decision information. Whereas trade shows are open to all potential customers. answer questions. sales contests. PUSH MONEY • Similarly. appearance. or simply to answer questions. and sizes. • The forms of POP displays include special racks. Typically. and promotional allowances. They also provide a chance to demonstrate products. and mechanical product dispensers. TRADE SHOWS • Thousands of manufacturers display their wares and take orders at trade shows. These meetings are usually conducted regionally and directed by sales managers. but on a smaller scale. POINT-OF-PURCHASE (POP) DISPLAYS • Manufacturers provide point-of-purchase (POP) display units free to retailers in order to promote a particular brand or group of products. banners. • The theme of the POP display should coordinate with the theme used in ads and by salespeople. . are sales meetings sponsored by manufacturers or wholesalers. sales meetings are targeted toward the company's sales force and/or independent sales agents.

• Trade deals include a group of tactics having a common theme—to encourage sellers to specially promote a product. Two types of deal loaders are most typical. • The first is a buying loader. Some marketers try to discourage forward buying. for a limited time. • There are two main types of trade deals: buying allowances and advertising/display allowances. some retailers engage in "forward buying. which is a gift given for making a specified order size.00 off per case. they order more merchandise than is needed during the deal period. In order to take advantage of a buying allowance. TRADE DEALS • Trade deals are special price concessions superseding. The payment may take the form of a check or a reduction in the face value of an invoice. • At the end of that period. • The second is a display loader. the salesperson would send evidence of these sales to the manufacturer and receive a check in return. superior in- store locations. In exchange. many manufacturers offer it. For example. The slotting allowance is a controversial form of buying allowance. General Electric may have a display containing appliances as part of a special program. or greater advertising effort. o BUYING ALLOWANCES A buying allowance is a bonus paid by a manufacturer to a reseller when a certain amount of product is purchased during a specific time period." In essence. DEAL LOADERS • A deal loader is a premium given by a manufacturer to a retailer for ordering a certain quantity of product. the retailer receives all the appliances on the display if a specified order size was achieved. This assumes that the savings gained through the buying allowance is greater than the cost of warehousing and transporting the extra merchandise. • The marketer might receive special displays. and so forth. which means the display is given to the retailer after the campaign. When the program is over. In many industries. larger-than-usual orders.00 off per case. Slotting allowances are fees retailers charge manufacturers for each space or slot . trade deals are the primary expectation for retail support. then store the extra merchandise to sell later at regular prices. or money. • Although some people see push money as akin to bribery. since it reduces profit margins and tends to create cyclical peaks and troughs in demand for the product. while a purchase of at least 20 cases would result in $7. a reseller who purchases at least 15 cases of product might receive a buying allowance of $6. the normal purchasing discounts given to the trade. and the marketing funds spent in this area are considerable. the retailer might receive special allowances. goods. discounts. • For instance.

at eye level or near the end of aisles. on the shelf or in the warehouse that new products will occupy. o ADVERTISING ALLOWANCES An advertising allowance is a dividend paid by a marketer to a reseller for advertising their product. The payment can take the form of cash or goods. . to print flyers or run ads in a local newspaper. A display allowance is the final form of trade promotional allowance. Some manufacturers pay retailers extra to highlight their display from the many available every week. The controversy stems from the fact that in many instances this allowance amounts to little more than paying a bribe to the retailer to convince them to carry your company's products. The allowance takes the form of free merchandise rather than money. Retailers must furnish written certification of compliance with the terms of the contract before they are paid. so many manufacturers require verification. But many marketers are willing to pay extra to bring their products to the attention of consumers who are pressed for time in the store. The final type of buying allowance is a free goods allowance. the manufacturer offers a certain amount of product to wholesalers or retailers at no cost if they purchase a stated amount of the same or a different product. In this case. Slotting allowances sometimes buy marketers prime spaces on retail shelves. The money can only be used to purchase advertising—for example. But some resellers take advantage of the system. Retailers are most likely to select displays that yield high volume and are easy to assemble.

5. and getting cooperation in sales promotion expenditures. They may be related to channel members and to consumers. and the objective is achieved at minimum cost. encouraging repurchases. 2. rather than advertising alone. The promotion should be clear and uncomplicated: simple and clear language must be used in communicating with the consumers. Maximum effect at minimum cost: when the nature of promotion objective is such that is can best be achieved by sales promotion. hiking average purchases. 3. Promotion should be highly visible: the offer must draw attention of target consumers. Consumer sales promotion objectives include boosting brand awareness. . Effective promotions draw attention from high visibility and from creative qualities. B. Goals are generally demand-oriented. 2. 1. increasing product trials. Motivates consumers to buy now: successful sales promotions induce a sense of urgency to buy now and avoid postponing purchases. Unit v DEVELOPING A SALES PROMOTION PLAN SETTING OBJECTIVES A. Channel-member sales promotion objectives include gaining distribution. emphasizing novelty. 4. obtaining impulse sales. raising sales. Offers what the consumers want: sales promotion must not attempt to push any offer that is not regarded as desirable by target consumers. receiving adequate shelf space. increasing dealer enthusiasm. CHARACTERISTICS OF SUCCESSFUL SALES PROMOTION Some aspects that are important to consider in marking sales promotions successful are as follows: 1. and supplementing other promotional tools.

Promotion must be implemented efficiently: proper arrangements must be made with handling houses and premium suppliers to avoid any complications. is related to the objects that are set. questionnaire mailed to consumers. which can be obtained on weekly or monthly basis. Concurrent testing is conducted in terms of sales data. there are no exaggerations. Promotion must be believable and honest: it makes reasonable and believable claims. 8. The simplest way is to visit several important retailers and wholesalers and discuss the programme and seek their opinion and suggestions. in any are of business activity. telephone calls. 9. Post-testing: post-testing done after the promotion period is over. 7. and one month after the promotion ends. 2. Pre- testing consists of experimenting certain markets or individual stores in a market. Promotion should benefit all concerned: usually promotions involve cooperation of sales force and channel members. and personal interviews can be used. SALES PROMOTION EVALUATION Measurements of results. Pre-testing: how sales promotion is to be communicated and what would be communicated to the target groups is important and can be pre-tested. tells the truth. To asses the change in consumer awareness and attitude. They need to be motivated to make the efforts successful. To measure the sales effect. and it respects public’s intelligence. Concurrent Testing: this testing is done when the sales promotion is in progress. The sales promotion can be evaluated at three different stages: 1. sales figures before the promotion period can be compared with figures at the end of promotion. Promotion must be legal: the marketers must check the legality of promotion before announcing it. 6. . 3.

The Lime Coke is a new product in the market. relate to life’s more light-hearted and fun experiences. The nature of product is revolutionary. There’s strong growth in bottled water. It is a drink of choice for people who are younger and more exciting. Channel Distribution Strategy . juices. they are calorie conscious especially in their 20s and 30s. such as LIME COKE Background Information The cola market is a mature market with lots of variety. The Lemon Cola drinkers. sports drinks and energy drinks.DESIGN AN INTEGRATED SALES PROMOTION PROGRAM Design an integrated Sales Promotion Program for the following channel of distribution: Manufacturer-to-Independent Sales Rep-to-Retailer-to-Consumer A new product in a mature category. Consumers are conscious cola drinkers. it should create emotional connection with the consumers. Objectives New distribution of Lime Coke products through the channel distribution by motivating top 20% of the Manufacturer’s independent salespeople to move more Lime Coke products to Retailers in order to generate an ultimate 40 to 50% sales during the Christmas season by attracting consumers. Consumers are trying new and innovative products. driven by youthful liberation. Sprite. Coca-Cola’s ‘solid’ performer continues to be a great success as a strong competitor to this new product.

needs additional explanation and education for the sales reps to have that carried over to the retailer to gain maximum consumer exposure in this dominant market position. The product is new in a matured market. Free good deals.The distribution system has only two divisions (Independent Sales Rep and Retailer) before it reach the consumer. The retailer will run advertisement and manufacturer . retailers have an opportunity to stockpile the products at the reduced price to sell at the regular price latter.since this is a new product and competitive market. there is a competition for distributor resources in order to get attention. Off-allowance or Buying allowance – is a good option for this new product. physical distribution and post sales services. certainly. inventory support.Give free packs of Lime Coke instead of money at no cost. Promotion Mix Trade Promotions for Retailer’s – objective is new product distribution SELL-IN Devices Encourage wholesalers or retailers to carry Lime Coke product. The channel function will only be selling. it makes sense to have long-term contract with the retailer. There is a competitor product such as Sprite. The allowance is deducted directly from the invoice of the product SELL-OUT Devices Induce retailers to promote Lime Coke through advertising and displays. Cooperative advertising.

advertisement and sales promotion are methods of the promotional methods. Incentive to ‘PUSH’ sales Stimulate retailers and their channel members to ‘push’ Lime Coke product rather that of competitor product e. If information are to be . Spiffs will be a great compensation for the retailer store clerk rewarded for selling Lime Coke. Dealer listing – Great opportunity to have manufacturer to place advertisement in different medias ( TV. Industrial goods with high technology will need much of personal selling and cosmetics. Dealer Loader – the purpose is to gain new product distribution. Sprite. Advertising needs the support of personal selling or display to increase the sales. Nature of the product: This will decide the promotional mix. magazines or news papers) for the Lime Cola product and announcing the retailers (name and addresses) who stock Lime Coke.g.Sales Incentive plans (reward for achieving sales Quota) and sales aids in combination to assist sales persons in selling situations. then personal selling will be more effective and very little spending on advertisement will do. During most of the situation two or more promotional methods are to be used for each campaign. radio. Nature of the customer: If the communication are mostly to middlemen. For consumer goods advertisement and dealer display will have more effect.pays an allowances based on the quantity and retailer orders . gifts in return for an order or premium for special price display. Motivation the Independent Sales Rep (Sales Promotion) to supplement their regular compensation. Various Aspects under Promotional Strategy Deciding Promotional mix: Personal selling.

passed to consumers and when the number of consumers is large. then advertisement is more suitable. Online sales promotion: Encourage impulse buys: Associate linked products.only specials: Many web users prefer to gather information about products online. So give customers an incentive to purchase more at one time. . games or other peripherals. Those are items the customer may forget to purchase of might to expire not realize are available. ask if he’d alswo like to buy some batteries. They visit a few sites to get an idea of what’s available and at what cost. Its more efficient for you to pack more items in each order. Offer online . If the funds are available are less than maximum portion and such funds will be allocated for personal selling in limited areas. many log off and head directly for nearest brick mortar store to make their actual purchase. But they don’t complete the sales online instead. If the market for a product is available at national level. Nature of Market: If market for a product is only local then personal selling alone will be sufficient. it is better to advertise. If a customer buys a video game. The companies having huge funds for promotion will favor advertisement and try to cover wider market. Ship larger orders for free: it doesn’t take much more time and effort to pack and ship 5 items than to pack and ship 1 item. Availability of funds: The amount of funds available for promotion will decide the promotional mix.

Format your content to reflect how people read online and consult the copy writer’s handbook for instruction on how to write persuasive. Visitors quickly note the design. Provide great customer service: You don’t want onetime customers. That simple concept seems to be forgotten in these days of anonymous email and the torture of automated phone system. It takes far more effort to attract new customers than it does to keep existing ones. Raise your profit margin and encourage larger orders form. Most users will leave a site without completing their purchase if the site doesn’t show total cost including shipping. but design only takes you so far. Have complete product information and photos: Information pages Create thumbnail images Use gift to optimize images .Be honest about pricing: People want to know the total price to deal with. but then look for content. Create compelling website copy: Website design is an important component of website credibility.