A PROJECT REPORT

ON
ADVERTISING AND SALES PROMOTION STRATEGY
IN

Aditya Hyundai Bhubaneswar

(IN THE FULFILLMENT OF THE DEGREE OF MASTER OF BUSINESS
ADMINISTRATION UNDER BIJU PATNAIK UNIVERSITY OF TECNOLOGY)

BY
ESANI BEHERA
REG NO- 1806151021
IN
MARKETING (2018-2020)

UNDER THE GUIDANCE OF

EXTERNAL GUIDE INTERNAL GUIDE

Mr. Deepak nayak dr. c. vijaya

Sales dept.aditya Hyundai dy. Director ,micm

Bhubaneswar bhubaneswar

1
 CERTIFICATE

This is to certify that ESANI BEHERA is

a student of
MICM. She has Succesfully completed her project field work on
the topic ‘’Advertising ana Sales Promotion strategy’’under
my guidance in fulfillment
of MBA Programmes in the Madhusudan Institute of Cooperative
Management
under BPUT University.

She has worked under our guidance and direction. The said
report is based on bonfired information.

EXTERNAL GUIDE
Mr. Deepak Nayak
Sales Dept. Aditya Hyundai
Bhubaneswar
2
 DECLARATION

I hereby declare that the project titled –

Advertising and Sales
Promotion strategy. It is an original piece of research work
carried out by me
under the guidance and supervision of Mr. Deepak Nayak. The
information has been
collected from genuine & authentic sources. The work has been
submitted in
fulfillment of the requirement of MBA in Marketing.

Place: Bhubaneswar
Date:

SIGNATURE OF THE STUDENT

3
 PREFACE

Someone has rightly said that practical

knowledge is far better
than classroom teaching. During this project I fully realized this
and I came to
know about how a retailer chooses among a varied range of
products available
to him.

The subject of my study is Advertising and Sales

Promotion
Strategy of Aditya Hyundai BHUBANESWAR, which has
slowly but steadily
evolved from a beginner to a corporate giant earning laurels and
kudos
throughout.

The report contains first of all brief introduction

about the
4
 company. Finally there comes data presentation and analysis in
the end of
my project report. I also put forward some of my suggestion
hoping that they
will help Aditya Hyundai BHUBANESWAR Move a step
forward to being the very
best.

ACKNOWLEDGEMENT
This satisfaction Euphoria that accompanies the successful
completion of any
Work would be incomplete unless we mention the name of the
person, who made
It possible,whose constatnt guidance and encouragement served
as a beckon of
Light and crowned our efforts with success.’’I consider it a
privilege to express
Through the pages of this report,a few words of gratitude and
respect to those
Who guided and inspired in the completion of this project.

5
 I am deeply indebted to Mr. Deepak Nayak for giving me the
opportunity to
undergo my project in their esteemed organization and their
timely suggestions
& valuable guidance.

My sincere thanks to Dr. C. Vijaya (Internal guide,Madhusudan

Institute of
Cooperative Management, Bhubaneswar) and all the other
faculty members
for guiding me throughout the project.

Last but not the least ; my cordial thanks to my parents and

friends.

However, I accept the sole responsibility for any possible errors

of omission
and would be extremely grateful to the readers of this project
report if they
bring such mistakes to my notice.

EXECUTIVE SUMMARY
Project title: ‘’Advertising and Sales Promotion Strategy’’ of
ADITYA HYUNDAI
Name of the student: ESANI BEHERA
Registration no: 1806151021
6
 This project entitled ‘’Advertising and Sales Promotion Strategy
of Aditya
Hyundai BHUBANESWAR’’undertaken as a partial completion
of my Master
Degree Program from Madhusudan Institute of Cooperative
Management,
Bhubaneswar.

The invention of the automobile has brought more positive and

negative effects
than any other invention throughout transportation history.As the
most widely
accepted method of transportation, cars have changed the way
people live all
over the world. They have affected all aspects of society such as
family life, the
economy, and even the environment. It is hard to find a movie,
book, or TV show
that does not have some type of automobile in it. The
advancement of society
as a whole. Over the generations have influenced every aspect of
society in many
ways and have changed to keep up with the times.

7
 CONTENTS
CHAPTER:1 INTRODUCTION PAGE NO:9-16
1.1 INTRODUCTION OF THE TOPIC
1.2 GROWTH OF SALES PROMOTION
1.3 OBJECTIVES OF THE STUDY
1.4 NATURE OF THE STUDY
1.5 IMPORTANCE OF THE STUDY
1.6 SCOPE OF THE STUDY

CHAPTER:2 COMPANY PROFILE PAGE NO:17-28

2.1 COMPANY PROFILE AND OVERVIEW
2.2 HYUNDAI MOTOR INDIA LIMITED
2.3 HISTORY
2.4 HYUNDAI PRODUCTION CAPACITY IN INDIA
2.5 HYUNDAI INDIAN SALES VOLUME
2.6 HYUNDAI ACHIEVEMENTS AWARDS

CHAPTER:3 ADVERTISING AND SALES PROMOTION PAGE NO:29-

47
3.1 THE MARKETING COMMUNICATION MIX
3.2 CHANNELS OF SALES PROMOTION
3.3 ADVERTISING OBJECTIVES
3.4 SETTING ADVERTISING BUDJETS
3.5 ISSUE IN SELECTING ADVERTISING MEDIA
3.6 ADVERTISING EVALUATION

8
CHAPTER:4 CONCLUSION PAGE NO:-48-50
4.1 FINDING
4.2 SUMMARY
4.3 CONCLUSION

CHAPTER:5 BIBLIOGRAPHY PAGE NO:51-52

5.1 BIBLIOGRAPHY
5.2 REFFERED BOOKS
5.3 WBSITES
5.4 NEWSPAPERS

9
 INTRODUCTION

INTRODUCTION

Sales promotion is one level or type of marketing aimed either at the consumer or at the distribution
channel (in the form of sales–incentives) It is used to introduce new product, clear out inventories ,
attract traffic, and to lift sales temporarily. It is more closely associated with the marketing of products
than of services. The American Marketing Association (AMA) , in its web based’’ Dictionary of
10
 Marketing Terms’’ defines sales promotion as “media and non-media marketing pressure applied for a
predetermined, limited period of time in order to stimulate trial, increase consumer demand, or improve
product availability.’’

Business pundits and academic students of business have developed almost fancifully sophisticated
views of sales promotion. In down-to-earth terms it is a way of lifting sales temporarily by appealing to
economic motives and impulse-buying behavior.The chief tools of sales promotion are discounts
(sales),distribution of samples and coupons, the holding of sweepstakes and contests, special store
displays,and offering premiums and rebates. All of these techniques require some kind of
communication. Thus sales promotion and advertising are difficult to distinguish.

The need for promotion arises from the intensity of competition. Sellers must somehow attract
customers attention. In the open markets of old (and farmers markets of today),sellers did and do this
by shouting, joking with customers, and sometimes by holding up a squealing piglet for everyone to
see. Priya Raghubir and his coauthors, writing in California Management review,identify “three faces” of
consumer promotions:these are information,economic incentive,and emotional appeal.Information may
take the form of advertising the availability of something, incentives are offered in the form of
advertising the availability of something, incentives are offered in the form of discount, and emotional
appeals are made by displays and, ofcourse, by the low price itself.

Precisely because sales promotions must provide incentives-whether to the distribution channel,
company’s own sales people, or to the consumer- they cost money by definition must produce
produce additional volume to pay for the expenditures. A grand sales clears out the inventory but, with
added advertising costs factored in, reduces margin too is a failure. Sales promotions therefore must be
carefully calibrated to achieve the purpose. Holding promotions too frequently will habituate customers
to buy only when promotions are in effect. Avoiding promotions altogether will let competitors draw
customers away. Alas, business never fails but to challenge the participant.’

GROWTH OF SALES PROMOTION:

Craig Endicott and Kenneth wylie,writing for Advertising Age in the magazine’s 62nd annual
And agency report, indicate a continued shift of revenues in advertising from traditional to
New forms of media.They label the new forms as “marketing services”and comment as
Follows: “Marketing services- identified as all forms of interactive, sales promotion and
Direct marketing in this report- grew 11.3% to $7.66 billion in revenue in the U.S [in 2005]

11
traditional advertising and its media component advanced to $12.02billion,a 5.1% advance
that was slightly stronger than last year.” The growth of sales promotion, a significant portion
of total marketing services expenditures,is no doubt in part due to the proliferation of media
channel by cable,the availability of the internet to channel direct marketing messages, and
simply the fact that advertising has become so ubiquitos it has become less effective: people
tune(or mute) it out.

CONSUMER 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, such as computer systems , cleaning
supplies, and machinery. In contrast,trade sales promotions target resellers – wholesalers
and retailers—who carry the marketer’s product. Following are some of the key techniques
used in consumer-oriented sales promotions.

Price Deals:
A consumer price deal saves the buyer money when a product is purchased
The main types of price deals include discounts,bonus pack deals,refunds or rebates,and
coupons. Price deals are usually intended to encourage trial use of a new product, or to
convince existing customers to increase their purchases, accelerate their use,or purchase
multiple units. Price deals work must effectively when price is the consumer’s foremost
criterion or when brand loyalty is low.

Buyers may learn about price discounts either at the point of sale or through advertising.
At the point, of sale, price reductions may be posted on the package, on signs near the
product , or in storefront windows. Many types of advertisements can be used to notify
consumers of upcoming discounts, including fliers and newspaper and television ads.
price discounts are especially common in the food industry,where local supermarkets run
weekly specials. Price discounts may be initiated by the manufacturer,the retailer,or the
distributor. For instance, a manufacturer may “pre-price”a product and then convince the
retailer to participate in this short term discount through extra incentives. For price reduction

12
Strategies to be effective,they must have the support of all distributors in the channel.
Existing customers perceive discounts as rewards and often respond by buying in larger
quantities. Price discounts alone,however,usually do not induce first time buyers.

Another type of price deal is the bonus pack or banded pack.When a bonus pack is offered,
an extra amount of the product is free when a standard size of the product is brought at the
regular price. This technique is routinely used in the marketing of cleaning products, food
and health and beauty aids to introduce a new or larger size. A bonus pack rewards present
users but may is when two or more units of a product are sold at a reduction of the regular
single-unit price. Sometimes the products are physically banded together, such as in tooth
Brush and toothpaste offers.

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. Refunds aim to
increase the quantity or frequency of purchase, to encourage customers to “load up” on the
product. This strategy dampens competition by temporarily taking consumers out of the
market, stimulates the purchase of postponable goods such as major appliances, and
creates on-shelf excitement by encouraging special displays. Refunds and rebates are
generally viewed as a reward for purchase, and they appear to build brand loyalty rather
than diminish it.

TRADE PROMOTIONS:

A trade sales promotion is targeted at resellers—wholesalers and retailers—who

Distribute manufactures products to he ultimate consumers. The objectives of sales
Promotions aimed at the trade are different from those directed at consumers. In general,
Trade sales promotions hope to accomplish four goals

1) Develop in store merchandising support ,as strong support at the retail store level
Is the key to closing the loop between the customer and the sale.
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 2) Control inventory by increasing or depleting inventory levels, thus helping to

eliminate seasonal peaks and valleys.

3) Expand or improve distribution by opening up new sales areas (trade promotions

are also sometimes used to distribute a new size of the product.

4) Generate excitement about the product among these responsible for selling it.
some of the more common forms of trade promotions—profiled below—include
point of purchase displays, trade shows, sales meetings, sales contests, push

money, deal loaders, and promotional allowances.

ADVERTISING ALLOWANCES:
An advertising allowance is a dividend paid by a marketer to a reseller for
advertising its product. The money can only be used to purchase advertising—for
example, to print flyers or run ads in a local newspaper. But some resellers take advantage of
the system, so many manufacturers promotional allowance. Some manufacturers pay retailers
extra to highlight their display form of cash or goods.

OBJECTIVES OF SALES PROMOTION:

Sales promotion is a tool used to achieve most of the five major promotional
Objectives discussed in the promotion decisions tutorial;
 Building product awareness – Several sales promotion techniques are highly
Effective in exposing customers to products for the first time and can serve as
Key promotional components in the early stages of new product introduction.
Additionally,as part of the effort to build product awareness, several sales promotion
techniques possess the added advantage of capturing customer information at the
time of exposure to the promotion.
 Creating interest – Marketers find that sales promotions are very effective in creating
interest in a product. In fact, creating interest is often considered the most important
use of sales promotion. In the retail industry an appealing sales promotions can
significantly increase customer traffic to retail outlets. Internet marketers can use
similar approaches to bolster the number of website visitors. Another important way
to create interest is to move customers to experience a product. Several sales
promotion techniques offer the opportunity for customers to try products for free or
at low cost.
14
 Providing information – Generally sales promotion techniques are designed to move
customers to some action and rarely simply informational in nature. However, some
sales promotions do offer customers access to product information. For instance,
A promotion may allow customers to try a fee—based online service for free for
several days. This free access may include receiving product information via email.
 Stimulating Demand – Next to building initial product awareness, the most important
Use of sales promotion is to build demand by convincing customers to make a purchase.
 Reinforcing the brand – Once customers have made a purchase sales promotion can
be used to both encourage additional purchasing and also as a reward for purchase
loyalty (see loyalty programs below).Many companies ,including airlines and retail
stores ,reward good or “preferred” customers with special promotions, such as email
“special deals” and surprise price reductions at the cash register.

NATURE:

In today’s competitive environment, marketers find sales promotion to be a

very useful tool that comes handy to overcome various short-term obstacles. It is
short-term in nature since the results are not as durable and long lasting as compared
To the results of personal selling and advertising.This tool of marketing communication
Mix is by and large a catalyst that acts as a support to advertising and personal selling.
It embraces all kinds of activities and materials that are used to promote goods and
Services;other than advertising publicity and personal selling. Due to its emphasis on
Short term profits,it has gained hug importance in the last ten years. Money that is
Generally set aside for advertising is diverted towards sales promotion.

IMPORTANCE:

There are several factors that have contributed to the fast growing importance of
Sales promotion.
 The product managers are always under pressure to bring an upward shift in the
Level of sales, sales-promotion being a short-term sales tool is an added advantage.
 Increasing competition demands differentiation between different competing brands.
Companies are using promotion as a tool to differentiate their products from those of
Their competitors.
 The ever-increasing cost of advertising, media clutter has made advertising a less
Efficient tool these days.The organizations are therefore turning towards promotion.
 Today’s customer has become very demanding, he demands great deals from the
Retailers and retailers in turn are demanding more form manufacturers. These
Deals are the result of sales promotion.

15
 Sales promotion can be used to meet several needs. These could range from
introduction of new products,meeting competition head on, getting rid of accumulated
inventory, overcoming seasonal dips in sales , reviving lost accounts, supporting
advertising and personal selling,convincing the sales force to sell full line of products
to finally persuading the consumers to buy more or increase the size of the order.
SCOPE:
Sales promotion is the live advertising of a product or service face to face
Between a person(promoter)and a prospective client or user of a product or
Service.
This spectrum of promotions may vary:
 Promotion programs such as sampling, couponing, sales inducing etc. carried
out through various locations(S/Ms,H/Ms,cafetarias,beaches,exhibitions,theaters
etc.
 Exploitation of existing events organized by third parties.
 Creation and implementation of new promotional events
 Leaflet distribution.

During any promotional material activity the following key factors are considered of
utmost importance.

 Detailed on the product training of promotion teams

 Sales oriented character of any promotion
 Focus on the targeted group
 Effective management of promotional material and free product handling
 Close control of promotion teams in compliance to client’s specifications
 Follow up of any promotional activity
 Detailed filing in of the promotion activity report and synchronizations with the
Central application of sales promotion field force

16
PROFILE OF THE COMPANY

17
The Hyundai motor company was set up in 1967 as a subsidiary of the Hyundai engineering
& Construction company. The company started off by assembling cars and trucks for the FORD
Company in their car factory. In 1975 they produced their first car called the Hyundai Cortina
Which was produced in partnership with the FORD motor company? Within these next two years
They had become the 13th largest automaker in the world with 2% share in the world retail
Market.

In 1975, the company decided to build its own car which it would sell under the brand name
‘Hyundai’. They hired five of the best car engineers from Britain, who designed their first car,
‘Hyundai Pony’. The car soon became the number one selling car in South Korea because of
Its small size and economical pricing. Next the Hyundai Pony entered the Canadian market
and within 9 months became the top-selling car there . By 1985, their production had
exceeded more than 1 million cars.

In 1986, they entered the U.S. market with their new ‘Hyundai excel’ car. This car
also proved to be a best seller because of its quality and low pricing. In 1986

18
 more than 160,000 units were sold and the next year it crossed 260,000. Now
Hyundai had established itself as one of the top competitors in the world automobile
industry. Their next release was the midsize Sonata in the year 1988. This model did
not click in the U.S. market but by then Hyundai was already producing 4,000,000 units
per year.

HYUNDAI MOTOR INDIA LIMITED:

Hyundai Motor Ltd is a wholly owned subsidiary of the Hyundai motor company in India.
It is the second largest automobile manufacturer in India.

Hyundai motor India ltd was formed on 6 may 1996 by the Hyundai motor company of
when Hyundai Motor company entered the Indian automobile market in1996 the Hyundai
brand was almost unknown throughout India.During the entry of Hyundai in 1996, there
were only five major automobile manufactures in India, i.e. Maruti,Hindustan,Premiere,
Tata, and Mahindra. Daewoo had entered the india automobile market with Cielo just
three years back while Ford, Opel and Honda had entered less than a year back.
For more than a decade till Hyundai arrived, Maruti Suzuki had a near monopoly
over the passenger cars segment because Tata motors and Mahindra & Mahindra were
solely utility and commercial vehicle manufacturers, while Hindustan and premier both
built outdated and uncompetitive products.

Hyundai Motor India Limited currently the largest auto manufacturing in India
It is making India the global manufacturing base for small cars.
Hyundai sells several models in India, the most popular being the i10,Hyundai EON
And the i20.On 3 September 2013,Hyundai launched its much awaited car,Grand i10
In petrol and diesel variants. Other models include the Accent, Creta, Elantra, 5 th
Generation Verna. Hyundai has two manufacturing plants in India located at
Sriperumbudur in the Indian state of Tamilnadu. Both plants have a combined annual

capacity of 600,000 units. In the year 2007, Hyundai opened its R&D facility in

19
 Hyderabad, employing now nearly 450 engineers from different parts of the country.
Hyundai’s main R&D Centre in Namyang , Korea. In 2014,Hyundai launched Xcent,
a sedan based on successful Grand i10.Recently, on 11 august 2014, Hyundai india
Motor limited launched the Elite i20 in petrol and diesel variants.

In 2007,Hyundai started its support engineering centre with CAD/CAE Teams

In Hyderabad, India. Hyundai expanded its engineering activities in India with vehicle
Engineering team in 2010. In 2011, Hyundai started its design activities at Hyderabad
R&D centre with styling, digital design & skin CAD Teams and packaging team.Indian
engineers are heavily involved in making of Indian vehicles like Grand i10, Elite i20
along with other Global cars.

HISTORY:
HMIL’S First car,the Hyundai Santro was launched on 23 september 1998 and
was a run away success. Within a few months of its inception HMIL became the
second largest automobile manufacturer and the largest automobile exporter in India.
Hyundai Motor India Limited is a wholly owned subsidiary of Hyundai Motor Company
(HMC), South Korea and is the largest passenger car exporter and the second largest
Car manufacturer in India. HMIL presently markets 10 models- Eon, Grand i10,Xcent
Elite20, i20 Active, Verna, Elantra and Creta.

As HMC’s global export hub for compact cars, HMIL is the first automotive company
In India to achieve the export of 10 lakh cars in just over a decade.HMIL currently export
Cars to more than 87 countries across EU,Africa,Middle East, Latin America, Asia, and
Australia. It has been the number one exporter of passenger cars of the country for the
Eighth year in a row.

To support its growth and expansion plans, HMIL currently has 550 strong dealer
network and more than 1,226 strong service points across India, which will see further
expansion in 2017.

MANUFACTURING FACILITIES:
HMIL has two manufacturing plants in
Irungattukotai,
Sriperumbadur, Chennai, Tamilnadu. HMIL’s manufacturing plant near Chennai claims

20
to have the most advanced production, quality, and testing capabilities in the country.
To cater to rising demand, HMIL commissioned its second plant in February 2008, which
produces an additional 300,000 units per annum,raising HMIL’s total production capacity
to 600,000 units per annum. Current production capacity with these 2 plants in
Irungattukotai, Siperumbadur,Chennai increased to 700000 cars per year.

R&D CENTRE:
Hyundai motor India engineering (HMIE) is afully owned subsidiary of
Hyundai Motor Company,South Korea, which is located at Hyderabad, Telangana.
HMIL established HMIE in November 2006 and contributed to the development of
Hyundai Motors’ popolar new models for the Indian market starting with the Eon and
Followed now by the “I” series,and also in SUV segments like the Creta.

Hyundai Motors’ other overseas R&D centres are located in the United states
Germany, Japan, Korea, and China.

GLOBAL QUALITY CENTRE:

Named Indian quality(INQC), The centre is one of the five quality centre
Worldwide after U.S. ,China, Europe, and Middle east. The India centre located at
Faridabad, Haryana will conduct durability study of existing models and benchmark parts
And systems for constant improvement.The key activity of India quality centre would be
to “contribute in new car development from pilot stage to create quality product with
Zero defect”. Besides, the centre will also be responsible for ensuring “top level safety
Quality” through proactive customer oriented management system and understanding
Feedback from them to eliminate potential risks.The centre also has an objective to
Study market conditions and other Asia pacific regions to develop new car and adapt
Strategies for continuous product quality improvement.
The company also opened a training centre at same facility. It will have its own
body and paint unit , The new service training will ensure overall skill development
of entire service profile of dealer manpower.

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MODELS:
1) Hyundai Eon (launched 2011)
2) Hyundai Grand i10 facelift (launched feb-2017)
3) Hyundai Xcent facelift (launched april-2017)
4) Hyundai Elite20 (launched 2014)
5) Hyundai i20 Active(launched 2015)
6) Hyundai Elantra (launched 2016)
7) Hyundai Creta (launched 2015)
8) Hyundai Tucson (launched 2016)
9) Hyundai 5th Gen-Verna (launched 2017)

HYUNDAI MAKE HIS CAR IN 10 COUNTRIES:

1. KOREA
2. CHINA
3. RUSSIA
4. SLOVAKIA
5. CZECH REPUBLIC
6. BRAZIL
7. INDIA
8. TURKEY
9. USA
10. MEXICO

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HYUNDAI PRODUCTION CAPACITY IN INDIA:
 Production capacity per year 6.45 lakhs

HYUNDAI GLOBAL SALES VOLUME 2016:

V.W

TOYOTA

GM

RENAULT

HYUNDAI

0 20 40 60 80 100 120

(In Lakhs)

23
HYUNDAI INDIAN SALES VOLUME LAST 6 YEAR:

600000

500000

400000

300000

200000

100000

0
2015-16 2014-15 2013-14 2012-13 2011-12 2010-11

(In lkh)

24
 YoY Growth :

IN(%)
16

14

12

10

8
Column2

0
201 201 201 201 201 201

-2

-4

DEALERSHIP-SALES NETWORK IN INDIA:

 DEALERSHIP—550+

 SALES SHOP—900+

 SERVICES CENTER—1226+

45 lkhs Car on Indian Roads

Achievements award:

Hyundai is the only company in India won 5 ICOTY Awards

(Indian car of the year)
About Icoty:
It all started back in 2005,when senior and eminent journalists from all the leading
25
Automobile magazines in India got together and decided to create and confer the
Indian car of the year (ICOTY) award.
This award is an expert and independent judgement of the best new car.the highly
Experienced jury members are responsible for selecting a single decisive winner, and the
Voting process has been designed to be very fair and tamper-proof. Criteria like price,
fuel-efficiency,styling,comfort,safety,performance,practicality, technical innovation, value for
money, and suitability for Indian driving conditions are particularly important factors while
deciding on the winner.
The ICOTY is the most credible and coveted award, and almost like the “Oscar”
of Indian car awards. It is gaining prominence with each passing year, and credit for this
must go to JK Tyres, which have been supporting this award and supporting this award and
Sponsoring the grand award ceremonies right from the inception.
 2008---- I10
 2014---- Grand I10
 2015---- Elite I20
 2016---- CRETA
 2018---- VERNA

ADVERTISING

AND

SALES PROMOTION STRATEGY

26
The Marketing Communications Mix

27
sA
verti
gd
in
PROS
Advertising

 Message can be repeated for exposure.

 Very expressive—can be used to create image
 Can reach a geographically diverse audience.

CONS
 Can be tuned out
 Can be expensive
 Hard to measure results.
28
 Personal selling

PROS
 Interactive –can be purchased.
 Allows a relationship to develop
 Better understanding of customer needs
 Buyer will pay more attention to the message

CONS
 Expensive
Can only reach a small number of consumers


Publicity

PROS

 Very believable
 “Free advertising”

CONS

 Hard to implement
 Hard to control
 Hard to measure its effectiveness

PROS
Sales Promotion
 Attract attention
 Strong incentives will induce consumers to act
 Quick response
 Encourages trial of product

CONS

 Can create price sensitive customers

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 Can be costly
 Easy for competition to imitate
 Channels of Sales Promotions

MANUFACTURER

Push Consumer Promotions Pull

Trade promotions

RETAILER

Push Retail promotions

CONSUMER

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Start by describing with demographic data

Target market of a national chain of child day-care centers:

“Female household heads aged 25 to 34 employed outside the

Home who have one or more children under age 6 at home and live
Or work within 10 miles of a current center.”

Target market selection

This is the single most important decision, because all other decisions build upon it.

Is the budget sufficient?

Is the media message correct?
Are the media outlets appropriate?

All of these questions will depend upon the target audience’s size, motivations,
concerns , etc.

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But need to add life-style and psychographic profile data

“This group aspires to have both a successful career and family. These
women are serious about child-rearing responsibilities and are avid readers
of books and articles on the subject. They are primarily outer-directed emulators
and achievers in terms of VALS categories. They are concerned about where
and with whom they leave their children. Here child’s “experience” is of crucial
Importance, while cost of the service is an important, but secondary, concern”.

32
33
 Problem with using $ of revenue or units sold as an
Advertising objective

1. Advertising is only one of many factors impacting whether a sale

occurs.
2. Advertising has a carryover/delay effect that extends beyond a
calender or fiscal year.

AIDA Hierarchy of Innovation Communications

Stages model
model effects model adoption
model
Cognitiv
Attenti Awareness
e stage Awareness Exposure
on
Reception
Affectiv knowledge Cognitive response
Interest
e stage Liking Interest
Desire Attention
Preference
Behavior Intention
Action Conviction
evaluation
stage
Purchase Trial Behavior
Adoption

34
 Advertising objectives
 Specific communication task
 Accomplished with a specific target audience
 During a specific period of time

Example advertising objective

To increase from 12% to 35% within one year, the number
of homemakers, age 25-55,that list our brand in unaided recall
when asked to name 5 different instant coffee brands.

Advertising objectives

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 Advertising platform

A statement of the basic idea or issues to be

Communicated in the advertisement.
A general notion of the media type (e.g., TV, radio, newspapers, etc.)

36
Issues to consider in setting advertising budget

Product life cycle

Market share
Competitive clutter
Product substitutability

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 Setting Advertising Budgets

Affordable Method Percentage of Sales Method

Setting promotion budget
at the level the company
Setting promotion budget at a
thinks they can afford
certain % of current or
forecasted sales.

Competitive –parity Method Objective-and-Task Method

Setting promotion budget Setting promotion budget by
to match competitors’ defining objectives, tasks &
outlay. costs.

Issues in selecting advertising media

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 Reach , frequency , and impact

Major media type options

Media habits of target consumers

Nature of the product

Specific media vehicles

Specific media within a given type (e.g., E.R)

Balance media cost against media factors:

Audience quality & attention , editorial quality

Media timing
Scheduling of advertising over the course of a year

Pattern of ads: continuity or pulsing

Profiles of Major Media Types

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 Newspapers

Advantages: flexibility, timeliness; good local market coverage

Limitations : Short life; poor reproduction quality; small pass along

audience

Television

Advantages : combines sight, sound, motion; high attention; high

reach; appealing to senses

Limitations : high clutter; fleeting exposure; less audience

Direct mail

Advantages: audience selectivity; flexibility, no ad competition

within same medium; allows personalization

Limitations : relative high cost; ”junk mail’’ image

Radio

Advantages: mass use; high geographic and demographic

selectivity; low cost

Limitations: audio only; fleeting exposure; lower attention

Magazines

Advantages: high geographic and demographic selectivity; long life;

good pass-along readership

Limitations: long ad purchase lead time; no guarantee of position

Outdoor

Advantages: flexibility; high repeat exposure; low cost; low

message competition

Limitations: little audience selectivity; creative limitations

Factors impacting the receipt of a message

Selective attention 40
 Selective distortion

Selective retention

Issues to consider in designing the message

Message content

Rational appeals

Emotional appeals

Message structure

Draw conclusions

Argument type

Message source

Expertise

Trustworthiness,likeability

Typical Message Execution Styles

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 Real or animated
symbol
Comparisons

Mood or image
Slice of life

Lifestyle Demonstration

Spokeperson
Musical

Fantasy
Scientific evidence

Humor

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e
u
m
h
a
w
fc
p
v
fi
lrd
ity
n
s
ti
o
g
/ Stylistic approaches

 Can present many points quickly

 Cost less than drama to produce
 Audience can become distracted
 Discount all or part of the facts

v
o
e
l x
s e
LECTURE
COMBINATION

Common Appeals
DRAMA

 Characters speak to each other not

the audience
 Consumers must infer lessons
 Conclusions are more likely to be
accepted

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Advertising Evaluation

Advertising program evaluation

Communications effects Sales effects( to the extent

possible)
Is the advertisement
meeting the specific
Is the ad increasing sales?
communication objective

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CONCLUSION

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FINDINGS:
 Hyundai motor India has clocked its highest ever financial year domestic sales
Of 484324 units in the just ended 2015-16.

 Growth is up 15.1% over FY2014-15 when it had sold a total of 420,668 units
In march 2016, the carmaker registered domestic sales of 41,201 units and
export of 10,251 units with cumulative sales of 51,452 units.

 Hyundai motor India, said,’’for FY2015-16, Hyundai has achieved its all time
Highest volume and highest-ever market share of over 17% thanks to the strong
performance of models like the Creta, Elite i20 And Grand i10.”

 The Hyundai motor YoY growth in decrease -0.88% in financial year (2013-14).

 The company not only reported the highest ever volumes in 2015-16, it also
Achieved its higher ever growth rate (15.1%) in the year as well.

 The Creta, launched in July 2015,became a true game changer for the company
In India, and took the SUV market by storm. With average monthly sales of
Around 7000 units the Creta was a regular feature among the top 10 most sold
Cars in the country throughout the year and established Hyundai as a force to
Reckon with in the fast growing SUV market in India.

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SUMMARY :

 Sales promotion is short-term oriented.

 Three kinds of promotions exist.

 Customer promotions are often price-related.

 Trade promotion provide incentives to channel member.

 Retailer promotion involve both price and special displays.

 Evaluating sales promotion is important.

 Promotions are being run on the web.

CONCLUSION

The importance of sales promotion has increased in modern marketing

on account of its ability in promoting sales and preparing the ground for future
expansion. The main objective of sales promotion is to attract the perspective
Buyer towards the product, and induce him to buy the product at the point of
purchase .At the salesman’s level, its object is to achieve more sales. At the
Dealer’s level,the purpose is to sell a particular product of manufacturing. At
the consumer’s level, the main idea is to enable the consumer to buy more a
product more frequently and also to introduce new uses for the product. Thus,
It is a “catch-all” method and is used as an effective tool of marketing.

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BIBILIOGRAPHY

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 Books

 Marketing management, Author- RANJAN SAXENA3

 Services marketing, Author- K.Rama Mohana Rao
 CAR Dealer marketing, Author- EHSAN ZAREI

Sales promotion

 Sales report of Hyundai year of 2010 to 2016

Website
 www.HYUNDAI LTD .com
 www.Marketing promotion.com
 www.Digital market.com

Newspapers

 The economic times

 Times of India

 Economics times

 Business Today

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