PROMOTION MANAGEMENT CHAPTER 1 PROMOTION It is the communication package in marketing which aims to exchange information between buyers and

sellers. Beyond informing, it also accomplishes the task of reminding and persuading the consumers so that they respond to the product or service being offered. COMPONENTS OF PROMOTION There are four broad promotional tools available to a marketer Advertising which is any paid form of non-personal presentation of ideas, goods, or services by an identified sponsor in a Media mix. Personal selling is an oral presentation made to prospective customers so as to generate sales. Sales promotion are those marketing activities excluding advertising, personal selling and publicity which stimulate consumer purchasing ,dealer and sales persons effectiveness. It is a short term activity. Publicity and public relations stimulate demand in a non-personal way. Public relations maintain effective relations of the organisation with different publics like employees, customers, shareholders, suppliers, dealers, government, media and so on. The combination of these four methods of promotion is called promotional mix. It is called direct marketing which uses the above promotional components in a special manner.

COMMUNICATION PLAN Mostly organizations treat advertising, sales promotion, public relations, publicity and direct marketing as separate activities. However, we must integrate them together, and the whole communication package that emerges must be integrated to other elements of the marketing mix and personal selling. Strategic business plan is the starting point which
1 SRAVAN KUMAR REDDY, DEPT OF MARKETING MANAGEMENT, FBE, WOLLEGA UNIVERSITY

generates a strategic marketing plan .Communication plan or promotional plan is subservient to the marketing plan.

STRATEGIC BUSINESS PLAN MARKETING PLAN COMMUNICATION PROMOTION PLAN

ADVERTISIN SALES PROMOTION PERSONAL SELLING

PR

DIRECT MARKETING

PROGRAMS AND BUDGET REVIEW AND EVALUATE Fig: Communication planning MARKETING COMMUNICATIONS Broadly speaking, marketing communications is a continuous interaction between the buyers and sellers in a market place. Thus any gesture or act that helps to attract buyers and satisfy their needs is marketing communication .However marketing communication is the process of presenting an integrated set of stimuli to a target with an intent of evoking a desired set of responses within that target market and setting up channels to receive, interpret and act upon messages and identifying new communication opportunities. Consider the following communication process Source Player Encoding Message Decoding Receiver Response Remarks
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Sender He is originator of communication, his communication objectives must be clear Encoding It should be true to the contents of the communication emerging from sender. The process of arranging the message, in words and pictures is called encoding Message Once there is a choice, a channel or a channel mix that is most effective must be Chosen. Receiver The communication must reach him .on the delivery of the message, the receiver Attempts to interpret the message it is called decoding. Feedback It completes the cycle of communication.

INTERPERSONAL Vs MASS COMMUNICATION

Marketing deals with interpersonal and mass communication .personal selling makes use of interpersonal communication whereas advertising, sales promotion ,and public relations are mass communication techniques.

Comparison between interpersonal and mass communication

Factor Mass

interpersonal

Communication Communication
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Speed fast Coat low

of

reaching

large

audience

slow

of

reaching

large

audience

high

Attention gathering low Content clarity moderate to low Accuracy of message high Message flow traffic one-way Feedback low

High

High

low

two-way

high

SOURCE: Promotional (Irwin,1987)

strategy

by

Engel,

Warshaw

and

kinnear

PROMOTIONAL TOOLS AND CONSUMER RESPONSE:

AIDA is an acronym given to the stages a consumer passes before he buys a product. The stages are: 1. Attention: To get the attention of the consumer
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2. Interest: to arouse interest in the product 3. Desire: to create desire for the product 4. Action: to motivate a consumer to buy the product. This model is further elaborated to cover a number of more steps: awareness, knowledge, liking, preferences, conviction and purchase. It is called hierarchy of effects.

STAGE RESPONSE AIDA HIERARCHY&EFFECTS

Cognitive Awareness

attention

Affective knowledge Liking

interest

Desire preferences

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Behavioural conviction Purchase Outcome Satisfaction level satisfaction

action

level

Relationship of response models While relating them we have put the stages into three broad psychological stages cognitive, affective and behavioural. Cognitive refers to awareness and knowledge it also refers to attention .Affective refers to liking and preference corresponding to interest and desire of AIDA model.behavioral refers to conviction and purchase corresponding to action of the AIDA model. The additional stage of outcome shows the response to the model. These models help us understand the tasks that promotion must perform. We find the effects of different tools of promotion on hierarchy are different. The following diagram shows the effects of various promotional tools on the stages of AIDA. E F F personal selling E C T I V E N sales promotion PR and Publicity Advertising

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E S S

AWARENESS ACTION

INTEREST AIDA

DESIRE

Effect of promotional tools on consumer response

Advertising has the capacity to generate highest awareness. It is also higher in arousing interest however; it is not so effective in leading the consumer action .personal selling works exactly the opposite way. It is highest in making people buy and creating a desire for product .it is however, low in generating awareness. Sales promotion is highest in including action. Public relations and publicity are confined to creating awareness and a low level of interest.

PROMOTION AND PRODUCT-LIFE-CYCLE
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A product passes through several stages .It is developed first in an R&D lab .It is introduced in the market .The sales grow after the distribution and promotional efforts are consolidated. A stage comes when the sales attain a plateau. The product is said to be in maturity stage .the product then shows a decline in sales, as it becomes outdated. Product life cycle thus traces the growth in sales over a period of time .the promotional objectives at each stage of product life cycle are different .consequently the promotional activities are also different at each stage of life cycle the following diagram illustrates this

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maturity

Development decline

introduction

growth

SALES

SALES

TIME

Promotion al objectives

Generate awareness

Improve awareness

Improve awareness

Maintain Phase-out brand the preference product profitabilit y
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SRAVAN KUMAR REDDY, DEPT OF MARKETING MANAGEMENT, FBE, WOLLEGA UNIVERSITY

Motivate innovators adoption

Promote trails adoption Penetrate the market

Promotion al activity

Public relations Introducto ry ads

Primary Ads advertisin phased g out Sales SP phased promotion out for consumers . dealers Personal Personal More sp Sp for selling of selling of for/of dealers dealers dealers dealers phased out

Further Promote brand new preference application s Consolidat Consolidat e e distributio distributio n n Brand Brand advertisin advertisin g g Sales Less SP promotion

DETERMINING THE PROMOTIONAL MIX

How much emphasis should be placed on each tool of promotion? The exact combination of each of these elements promotion is called the promotion mix or blend. There is no one right mix of any company .the factors that guide a marketer while deciding the mix are: • • • The promotional budget available The nature of the product The nature of the target audience
10 SRAVAN KUMAR REDDY, DEPT OF MARKETING MANAGEMENT, FBE, WOLLEGA UNIVERSITY

• •

The product life cycle stage The company policy

DIFFERENCES BETWEEN ADVERTISING AND PUBLICITY ADVERTISING Paid form Maximum control over the message Less credible Subjective Product-brand related message CHAPTER 2 ADVERTISING AND MARKETING We have studied advertising as a process of communication. Marketing is ‘the conception, pricing, promotion and distribution’ of products which satisfy the customers. Advertising as a tool of marketing is employs to highlight the benefits of these products. However, advertising never determines how a product will be designed, how it will be distributed and at what price. The decisions about product, distribution, and pricing must be made before advertising is allowed to play its role. MARKETING MIX PRODUCT Brand Packaging Innovations Life cycle PROMOTION Advertising Personal selling Public relations PRICE pricing strategy price and quality price alternations discounts PLACE channels of distribution physical distribution wholesalers, retailers
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PUBLICITY Non-paid form Less control over the message More credible Objective Message in public interest

PRODUCT A product can be a physical product or service. It includes all the accessories that go with a product .It also include at time additional services, after sales maintenance and servicing. PRICE Price is the value offered in exchange of products in terms of money .prices covers the cost of manufacturing a product; cost of distribution and cost of promotion. It also includes mark-up over costs called profit. Pricing strategies can be skimming or penetrative. In skimming strategy, we charge a high price initially to cover the product development costs. Once the competition enters the market, the price is reduced. In penetration strategy we charge a lower price initially to penetrate the market deeply. DISTRIBUTION (PLACE) The movement of products from manufacturers to the customer is called distribution .distribution is made possible by using a marketing channel say , a product produced by a manufacturer is sold to the wholesaler who intern sells it to the retailer who ultimately sells it to the customer. Physical distribution involves transportation, warehousing and inventory management. PROMOTION Promotion as we are aware is a technique of communication. Advertising is used along with personal selling, sales promotion, direct marketing, and public relations. ADVERTISING WORLD

Advertising world consists of organizations that put the advertising messages through advertising agencies in different media .The organisations who advertise are called advertisers. They have their own advertising departments who interact with the advertising agencies which conceive and execute a campaign on their behalf. The advertising agencies creative department prepares the ad in collaboration with the production department .the production department may be provided
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different services by outsiders-freelance individuals or supplier firms. They provide services like video production, photography and print production. The advertising agencies get their compensation from the media generally 15 percent of the billing. Media has two broad categories-Print media and electronic media. These are supported by POP: Point of purchase materials, sale displays, outdoor hoardings etc. TYPES OF ADVERTISING

ADVERTISING

TARGET AUDIENCE Consumer advertising Industrial advertising
Target audience

GEOGRAPHICAL COVERAGE National Regional Local International

MEDIA USED Print Electronic Direct mail Outdoors Miscellaneous

Advertising is directed to a particular group of customers. Consumer advertising is thus dedicated to users of consumer products, both durables and non-durables. Industrial advertising is directed to institutional and other business organizations, and is for capital goods. Geographical coverage Those firms who do business on a global basis prepare international ads ,e.g. coke,pepsi similarly firms having domestic business do national advertising through mass media like magazines, newspaper and
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tv.regional advertising is restricted to region .generally state level print media and regional channels of TV are used for this. Retailers do local advertising. Media used Advertising is print advertising when it is put in press and magazines. Advertising is electronic when it is put on air either through radio or TV .Hoardings and posters are outdoor advertising and ads on buses and trains are transit ads .when advertisers contact buyers directly it is direct marketing. Many new media options like internet and interactive TV are emerging these days.

FUNCTIONS OF ADVERTISING 1. To differentiate the product from their competitors 2. To communicate product information 3. To urge product used 4. To expand the product distribution 5. Too increase brand preference and loyalty 6. To reduce overall sales cost 7. Creates new demands To differentiate the product from their competitors An important function of advertising is the identification function, that is, to identify a product and differentiate it from others; this creates an awareness of the product and provides a basis for consumers to choose the advertised product over other products this creates an awareness of the product and provides a basis for consumers to choose the advertised product over other products. The identification function of advertising includes the ability of advertising to differentiate a product so that it has its own unique identity or personality. There are four additional ways to differentiate your offering from the competition and increase your differentiation: leveraging the brand,
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innovating your service offering, as well as designing product and packaging in a way that creates an aesthetic beyond the functional. None of these methods are expensive. All are ways that can increase your perceived value to the customer and increase your market share. Example: GARNIER FRUTICS (shampoo) the shampoo bottle have the different colour from all other shampoo available in the shelf. The bottle of the shampoo is unique from all others. Example: apple laptops make them different from others as the WHITE colour and logo of APPLE on back of the screen. To communicate product information Another function of advertising is to communicate information about the product, its attributes, and its location of sale; this is the information function. Product information communicated to the customers in manner that meets their information needs. Most consumers tend to discount the information in advertising because they understand that the purpose of the advertising is to persuade. Making an advertising message believable is not easy; though often it is sufficient to make the consumer curious enough to try the product. Such curiosity is often referred to as interested disbelief. Advertisers use a variety of devices to increase the believability of their advertising: celebrities or experts who are the spokespersons for the product, user testimonials, product demonstrations, research results, and endorsements. Example: Ponds age miracle, in that ad the celebrity HADIQA KAYANI is informing the consumers about the benefits of it. That how the old women can look younger by using it continuously. It will make you fair cream plus it reduces freckles plus it can be used as a sun block as well it will make you look young. To urge product used The third function of advertising is to induce consumers to try new products and to suggest reuse of the product as well as new uses; this is the persuasion function. The basic function of advertising is to provide constant reminders and reinforcements to generate the desired behaviour the advertiser wants from them. This is a particularly effective function in the long run as reminders and reinforcements register in the consumers' minds, becoming the base on which they shape their future decisions. Sampling in the way to urge the product using.
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Example: Fair and lovely as we know that it will make a girl look fair and prettier in 4 weeks. Example: Neutrogena acne treatment cream will remove your pimple is 24 hours. NEUTROGENA say no to pimples!! To expand the product distribution When the consumer comes to know about the particular product from the advertisement he/she wants to try that new product. They go to shops to buy the product; if the new product is not available in a shop then the shopkeeper consults the distributor to make that product available in his shop. It is basically to provide the product all over market. It is necessary to make sure that product should be accessible to everyone. Availability of product effect the distribution. Example: Wateen telecom and Motorola Partner to Expand Distribution of Videoconferencing Product Line in Pakistan. So as many people are getting to know about this facility they are running towards the franchises to avail it. So for that Wateen should expand their distribution all around the cities. Accessibility is major factor for successful product To increase brand preference and loyalty Marketing is a moving thing. As your needs are changed your preferences are changed. When the product delivers the promised quality, service and value, it creates satisfied customers who become instrumental in spreading a favourable word-of-mouth. Satisfied customers also develop brand preference; each product features and uses are written on the product. Example: 99% girls who are not married will not look at the ad of pampers or any milk powder for children but when they will get married their interest will automatically move towards such ad' Brand loyalty Brand loyalty is a long-term customer preference for a particular product or service. Brand loyalty can be produced by factors such as customer satisfaction with the performance or price of a specific product or service, or through identifying with a brand image. It can be encouraged by advertising.

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People often make purchasing decisions based on how a brand makes them feel emotionally rather than based on quality or other objective evaluations. If "Just Do it" strikes a chord with an athlete, he'll buy Nike; the decision may have little to do with quality. Example: For instance, when one buys a tube of Colgate toothpaste and finds it ok, one will not have to spend any valuable time on looking for other toothpaste brands. To reduce overall sales cost When a product is selling you have to teach the people about the product. Like if we would advertise through newspapers, TV, broachers and internet, it would cater huge sum of masses and if you do individually it would be more costly and time consuming. Example: Coke targets their consumers on a very large scale through mass media whereas Makka cola advertise on smaller scale or go door to door to advertise their product. Creates new demands Advertising have to create new demands they should educate the people about more and more new things coming up in the market. Each year new products, including line extensions and new brands are introduced into groceries and drugstores. Example: Wateen telecom is offering wireless internet chips, video conferencing and WIMAX services as they are introducing new services in market its creating new demands.

ADVERTISING EXPOSURE MODEL Awareness Information Brand image brand purchase behaviour Emotional band Peer/expert and group norm link
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Attitude

towards

Reminder trial inducement This represents another model of the advertising and persuasion process wherein the various processes that can occur after consumers are exposed to an advertisement. 1. First, exposure to the advertisement can create awareness about the brand, leading to a feeling of familiarity with it. 2. Second, information about the brands benefits and the attributes on which the benefits are based can register with the consumer can also result from exposure to the ad. 3. Third, advertisements can also generate feelings in an audience that they begin to associate with the brand or its consumption. 4. Fourth, through the choice of the spokesperson and various executional devices, the advertisement can lead to the creation of an image for the brand, often called “brand personality” 5. Fifth, the advertisement can create the impression that the consumer’s peers or experts- individuals favour the brand and groups the consumer likes to emulate. This is often how products and brands are presented as being fashionable. These five effects can create a favourable liking, or attitude towards the brand, which in turn should lead to the purchasing action. Sometimes the advertiser will attempt to spur purchasing action directly by providing a reminder or by attacking reasons why the consumer may be postponing that action. The above model helps us to understand how and why consumers acquire process and use advertising information. It’s also important at the planning stage to develop a good understanding of where advertising fits into the total pool of information and influence sources to which a consumer is exposed. Understanding information processing invariably leads to the need for understanding a wide range of other important psychological constructs, such as perception, learning, attitude formation and chance, source effects, brand personality and image, cognitive and affective response and social factors such as group influence.
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BRAND COMMUNICATION In recent years, there are dramatic changes in brand communication. The company as a sender tells the consumer good things about the brand .the consumer as receiver accept this message gratefully. He then expresses his gratitude by being a loyal brand user for a long time. This model is a highly simplistic. Even in such one way communication, we have to consider the element of consumer participation. Consumer does not accept everything g directed towards them, challenge the proposition; and sometimes even dispute it. They can interpret, modify or reject brand messeges.the whole model affected by a variety of factors. The media stand fragmented .internet has emerges as a big interactive medium. Attitudes of consumers have changed; A TV commercial of a few seconds cannot become a primary medium of brand communication. The consumers also form their opinions in number of ways .a consumer forms his image of the brand through every conceivable encounter hardly matters. INTEGRATED MARKETING COMMUNICATION (IMC) Integrated marketing communication is not just a jargon used by academicians and practitioners of communication package consisting of advertising, personal selling, data-base marketing, public relations and sales promotions. It involves two major dimensions-consistencies of positioning, message and tone across these different media and simultaneous achievement of several specific communication goals and leading to behavioural action. In other words, marketing communications must have one voice and must not restrict to just one or two goals like raising awareness or building image. Integrated communication achieve major communication goals at one the same time .thus, a sales promotion campaign that leads to short-term rise in sales but dilutes brand equity in the long-term is not the practice of integrated communication.

CHAPTER3
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MARKETING AND PROMOTION PLANNING Marketing plan The company generates the sales only through marketing and as such it is the most important plan. This plan contains information about four important aspects of the organisation. 1 .The situational analysis Here the organisation current situation is considered, and is related to its past activities. This is a lengthy portion in a marketing plan. All trends and factors both internal and external – that effect future aspects are identified .the history of the organisation, and the journey it has undertaken to reach its position is considered. products, services, sales, market shares, competitive position, markets served, distribution system, past advertising programmes, marketing research findings,strenghts and weaknesses of the company –all these pertinent facts contribute to the situational analysis. The external environmental factors also considered. 2. Marketing objectives Total sales volume; Sales volume by product, market segment, customer type; Market share; Growth rate of sales volume; Gross profit; Product line – to add or to delete; Develop pricing policies; Training objectives for sales persons; Social objectives. 3. Marketing strategy It is the next important element of marketing plan. It spells out a company plans to realise its marketing objectives, objectives leads to strategies. Objectives are what we want to achieve. Strategies guide us how to go about achieving them. In other words strategies again leads to objectives further down the line. In a marketing strategy we have to select the target
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market, determine the marketing mix for this market, and position the product in each market. 4. The action plan

Promotion plan, as is obvious, is derived from the marketing plan. It is prepared on the same lines. It first considers the situational analysis which is narrower than that in the marketing plan .it then sets out the advertising objectives and advertising strategy along with details about message design and media plans, sales promotion and event management tie-ups.it also considers the advertising budget, and schedule. Let us see how marketing plan and advertising plan are integrated. Marketing plan Situational analysis action plan marketing objectives Advertising plan Situational analysis ad strategy marketing and promotional Strategy ad objectives marketing strategy

Sales objectives creative strategy Communication objectives media strategy

INTEGRATED MARKETING COMMUNICATION MODEL Hierarchy of effects has certain short-comings.to overcome these, professors Schultz,tannenbaum and lauterborn has devised another model called integrated marketing communication model. Consider the following diagram Buying toward brand intent to buy brand relationship attitudes

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Instead of the starting communication, we first consider the buying behaviour. When difficult to measure it, we move backwards to measure intention to buy. When this is difficult tom isolate, we move further backward to assess brand affinity/when this cannot be assessed, we go farthest to the attitudes a consumer has at the beginning of the process. We can isolate advertising effects at any level in the IMC model. The same is considered the foundation on which advertising objectives are established.

FCB MODEL Richard Vaughan of the Foote, Cone and Belding advertising agency has created a grid based on level of involvement and whether the decision making concerns mainly thinking (rational motives) or feeling (emotional motives). The FCB grid explains the consumer response process and presents possible implications for advertising.

Thinking Informative High nt strategies

Feeling for Affective strategies for

products that are technical in products that provide nature and purchased based on psychological benefits (affect, thinking and cars, motives cognition, conation. For house, jewellery, fashion etc. (cognition, affect, and conation). example, cosmetics, For examples, computers, etc. involveme rational

22 SRAVAN KUMAR REDDY, DEPT OF MARKETING MANAGEMENT, FBE, WOLLEGA UNIVERSITY

Habit Low nt

formation that

strategies are -

for Self-satisfaction strategies for

products involveme purchase affect).

bought products seen as "life's little routine cognition). For example, tomato impulse items, etc.

repeatedly after researching first pleasures" (conation, affect, decision For purchases (conation, cognition, lollies, biscuits, magazines, example sauce, soap, toothpaste, etc.

the FCB grid provides for decision making for high involvement products that do not follow the traditional (learn-feel-do) models .The FCB model has been developed by advertising practitioners as the basis of developing promotional messages which reflect a focus either primarily on rational (thinking) or psychological (feeling) motives, and explains why some high involvement products are advertised using primarily emotional appeals, while some low involvement products are advertised on more rational appeal. DAGMAR APPROACH Russell Colley (1961) developed a model for setting advertising objectives and measuring the results. This model was entitled ‘Defining Advertising Goals for Measured Advertising Results- DAGMAR.’ DAGMAR model suggests that the ultimate objective of advertising must carry a consumer through four levels of understanding: from unawareness to Awareness—the consumer must first be aware of a brand or company Comprehension—he or she must have a comprehension of what the product is and its benefits; Conviction—he or she must arrive at the mental disposition or conviction to buys the brand; Action—finally, he or she actually buy that product. Awareness of the existence of a product or organization is necessary before the purchase behaviour can be expected. Once the awareness has been created in the target audience, it should not be neglected. If there is neglect, the audience may become distracted by competing messages and the level of awareness of focus product or organization will decline. Awareness needs to be created, developed, refined or sustained, according to the characteristics of the market and the particular situation facing an organization at any one point of time.
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Awareness grid Involvement High Sustain current levels of HIGH awareness Low Refine awareness

Awaren ess LOW

Build awareness Create quickly. association of awareness of product with product class need

In situations where: Buyer experiences high involvement: Is fully aware of a product’s existence, attention and awareness levels need only be sustained and efforts need to be applied to other communication tasks. Sales promotion and personal selling are more effective at informing, persuading and provoking consumption of a new car once advertising has created the necessary levels of awareness. The LG golden eye ads that are repeatedly shown in spite of high awareness to ensure top of mind awareness and retain the existing awareness levels. Where low levels of awareness are found, getting attention needs to be the prime objective in order that awareness can be developed among the target audience.

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Sahara Homes ad that features Amitabh Bachhan saying “jaha base Bharat”. Awareness level is low; however it is a high involvement decision. Thus adequate attention is required and awareness levels are raised with use of well-known and trusted celebrities. Buyer experiences low involvement: If buyers have sufficient level of awareness, they will be quickly prompted into purchase with little assistance of the other elements of the mix. Recognition and brand image may be felt by some to be sufficient triggers to stimulate a response. The requirement in such a situation would be to refine and strengthen the level of awareness so that it provokes interest and stimulates greater involvement during recall or recognition. Parle G ad that talks about it being the largest seller “ Duniya ka sabse Zyada bikne waala biscuit”. Parle G as a brand already enjoys high levels of awareness and requires low involvement decision, thus communication is mainly intended to refine awareness. If buyers have low level of awareness, the prime objective has to be to create awareness of the focus product in association with the product class. When coils were popular in use and then the different repellents etered the market, awareness had to be created about their benefits and use. Comprehension Awareness on its own may not be sufficient to stimulate a purchase. Knowledge about the product or the organization is necessary. This can be achieved by providing specific information about key brand attributes. In attempting to persuade people to try a different brand of water, it may be necessary to compare the product with other mineral water products and provide an additional usage benefit, such as environmental claims. The ad of Ganga mineral water, featuring Govinda, which banked on the purity aspect. They related the purity of the water with that of river Ganga.

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Conviction The next step is to establish a sense of conviction. By creating interest and preference, buyers are moved to a position where they are convinced that a particular product in the class should be tried at the next opportunity. To do this, audience’s beliefs about the product have to be moulded and this is often done through messages that demonstrate the product’s superiority over a rival or by talking about the rewards as a result of using the product. Many ads like Thumbs Up featured the reward of social acceptance as ‘grown up’. It almost hinted that those who preferred other drinks were kids. Action Communication must finally encourage buyers to engage in purchase activity. Advertising can be directive and guide the buyers into certain behavioural outcomes, Use of toll free numbers, direct mail activities and reply cards and coupons.Tupperware, Aqua Guard, are famous in Indian cities as a result of its personal selling efforts. For high involvement decisions, the most effective tool in the

communication mix at this stage in the hierarchy is personal selling. Through the use of interpersonal skills, buyers are more likely to want to buy a product than if personal prompting is absent. Characteristics of Objectives A major contribution of DAGMAR was Colley’s specification of what constitutes a good objective. Four requirements or characteristics of good objectives were noted Concrete and measurable—the communications task or objective should be a precise statement of what appeal or message the advertiser wants to communicate to the target audience. Furthermore the specification should include a description of the measurement procedure Target audience –a key tenet to DAGMAR is that the target audience be well defined. For example –if the goal was to increase awareness, it is
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essential to know the target audience precisely. The benchmark measure cannot be developed without a specification of the target segment Benchmark and degree of change sought—another important part of setting objectives is having benchmark measures to determine where the target audience stands at the beginning of the campaign with respect to various communication response variables such as awareness, knowledge, attitudes, image, etc. The objectives should also specify how much change or movement is being sought such as increase in awareness levels, creation of favourable attitudes or number of consumers intending to purchase the brand, etc. a benchmark is also a prerequisite to the ultimate measurement of results, an essential part of any planning program and DAGMAR in particular. Specified time period—a final characteristic of good objectives is the specification of the time period during which the objective is to be accomplished, e.g. 6months, 1 year etc. With a time period specified a survey to generate a set if measures can be planned and anticipated. Written Goal - finally goals should be committed to paper. When the goals are clearly written, basic shortcomings and misunderstandings become exposed and it becomes easy to determine whether the goal contains the crucial aspects of the DAGMAR approach. ADVERTIAING STRATEGY Advertising strategy combines the task of selecting the media and designing an effective message. These two-tasks are in fact interrelated .an effective message seeks to answer the following questions: What are our business goals? What kind of people do we now sell to? What kind of people should we sell to? How do these people think, feel and believe, our product, our organisation and our competition. What do we want these people to think, fell and do?
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Which key thought should we put into the minds of those people to make them feel, think, do and believe the way we want them to? What tone of voice will get these people to hear and believe us?

A D V E RT I S I N G - S E T T I N G T H E A D V E RT I S I N G B U D G E T

Introduction It is notoriously difficult to measure the effect of advertising on a business’ sales. Advertising is just one of the variables that might affect sales in a particular period. These include • • • • • Consumer and business confidence Levels of disposable income Availability of product (e.g. does the retailer actually have stock to sell?) Availability of competing products the weather (often blamed by retailers for poor sales!)

How can a business know whether a specific advertising campaign was effective? As a percentage of sales, advertising expenditure varies enormously from business to business, from market to market. For example, the leading pharmaceutical companies spend around 20% of sales on advertising, whilst business such as Ford and Toyota spend less than 1%. An average for fast-moving consumer goods markets (“FMCG”) is around 8-10% of sales. In practice, the following approaches are used for setting the advertising budget:

Approaches to setting the advertising budget

Method (1) Fixed percentage of sales
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In markets with a stable, predictable sales pattern, some companies set their advertising spend consistently at a fixed percentage of sales. This policy has the advantage of avoiding an “advertising war” which could be bad news for profits. However, there are some disadvantages with this approach. This approach assumes that sales are directly related to advertising. Clearly this will not entirely be the case, since other elements of the promotional mix will also affect sales. If the rule is applied when sales are declining, the result will be a reduction in advertising just when greater sales promotion is required! Method (2) same level as competitors This approach has widespread use when products are well-established with predictable sales patterns. It is based on the assumption that there is an “industry average” spend that works well for all major players in a market. A major problem with this approach (in addition to the disadvantages set out for the example above) is that it encourages businesses to ignore the effectiveness of their advertising spend – it makes them “lazy”. It could also prevent a business with competitive advantages from increasing market share by spending more than average. Method (3) Task The task approach involves setting marketing objectives based on the “tasks” that the advertising has to complete. These tasks could be financial in nature (e.g. achieve a certain increase in sales, profits) or related to the marketing activity that is generated by the campaigns. For example: • Numbers of enquiries received quoting the source code on the advertisement • Increase in customer recognition / awareness of the product or brand (which can be measured) • Number of viewers, listeners or readers reached by the campaign Method (4) Residual The residual approach, which is perhaps the worst of all, is to base the advertising budget on what the business can afford – after all other expenditure. There is no attempt to associate marketing objectives with levels of advertising. In a good year large amounts of money could be wasted; in a bad year, the low advertising budget could guarantee a further low year for sales. ADVERTISING CAMPAIGN
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Campaign is a military expression which indicates organised and planned operations of armed forces in war. In advertising it is used to mean organised and planned use of advertising for accomplishing a definite purpose. An advertising campaign is an organised series of advertising messages with identical or similar message over a particular period of time. It is an orderly planned effort consisting of related but self-contained and independent advertisements. The independent ads used in a campaign are similar to one another, and this is deliberate. There is a psychological continuity due to a unified theme. The physical continuity is provided by similarity of visuals and orals. In a broad sense, a campaign is a coordinative effort of promotion of a particular product/service during a particular period of time to attain predecided objectives. BASIS OF A CAMPAIGN The geographical spread of a campaign can be the basis. The campaign can be limited to a local market, or one entire region .it can be national campaign too. National campaign is ruled out for test marketing and for small-budget companies. Pioneering campaigns introduce new products. Competitive campaign emphasise competitive superiority to retain the present market and to expand it either by increasing the products consumption or by weaning the customers away from a competitive brand. Campaigns can be classified in terms of media e.g., direct mail, news paper ,TV campaign etc. campaign’s purpose can be the basis of classification, e.g., direct action campaign where a customer is expected to buy a product or indirect-action campaign .some campaigns promote products, while some build up a corporate image. CAMPAIGN PLANNING The basis of any campaign is the consumer behaviour and the market profile. The demographic and psychographic study of consumers constituting a market is a must to create advertisements for the right target audience with the right type of appeals. Campaigns are governed by the following parameters: 1. 2. 3. 4. The The The The total advertisement budget media availability consumer profile product profile
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5. The campaign duration and its timing 6. The advertising and marketing objectives 7. The distribution channels 8. The marketing environment 9. A review of previous advertisements 10. The creative considerations 11. The new plans The following points need to be kept in the mind while planning an advertisement campaign:

Identify the problem: why have sales fallen? What do you expect from campaign? Higher sales or image for the company? Answers to these questions would help in determining the unique selling proportion (USP) and to position the product. The budget: how much is a client prepared to spend on the campaign? Are his funds limited? Pre-testing: consumer and product research to find out the habits of the customer, their needs,values,living standards, their present reactions to the product and how is it advertised. What feedback is available from the target audience? Target audience: children? Teenagers? Upperclass house Working women? Middle class households? The aged and retired? Media-selection: which is the most effective media? The language: which is the most effective language? The visual and the copy: would they be ‘read’ as you intend them to be by the target audience? Timing and duration: choose appropriate seasons for launching new products .use ‘reminder’ ads during other seasons. Post-testing: this is necessary to gauge the consumer reaction to the ad campaign Effect on sales: this is the acid test of the success of any campaign. WHY TO PLAN CAMPAIGNS Campaigns are to be planned with the following objectives in mind:
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wives?

• • • • • • • • • • • • • • •

To determine the market and its potential To obtain the consumer profile To study the consumer psychology To know the frequency or size of buying To decide about channels and their satisfactory operation To bring about product modifications To determine the geographical scope of the campaign To do the media planning To develop a central idea or core idea around which the selling points involve. The idea has to be discoverd.the strength of this idea forms the basis of effective campaign planning. To determine the fundamental human desire to which the advertisement will appeal. To determine the type of copy To determine the scheduling and space buying The placement of the copy in the media to run the campaign To do the budgeting for the campaign To coordinate with general administration, sales staff and other promotional staff.

BASIS OF CAMPIAGN PLANNING

The three word recipe of campaign planning as given by sir William Crawford is concentration, domination and repitation.marketing research provides quantitative guidelines for campaign and motivational research provides qualitative guidelines for a campaign. Research feedback also makes review and retrospection possible.

THREE PHASES OF CAMPIAGN CREATION

Strategy development phase This phase decides the objectives and contents of communication. It analysis the research dada and decides positioning of a brand .the strategy formulation is in modern days agencies team effort. The creative persons form a part of this team .there are brain storming sessions .the ideas are thrown up by the team .these ideas ultimately make up the strategy.
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Al ries and jack trout started focusing on the strategy side of advertising business in the late 60’s when they first started writing about positioning. Everybody else was talking about creativity whereas they decided to talk about strategy. They found that clients did not want to buy strategy from an ad agency. The strategist is the left-brain oriented, very linear thinking, very logical in deduction. The strategy formulation leads to advertising brief. ‘If you want to catch the fish, you have to think like a fish. If you want to catch a consumer, you have to think like a consumer. That is the first principle many companies do is they think like themselves.

ADVERTISING BRIEF TO THE CREATIVE As a matter of fact, the client has to brief the agency about the strategy. The time honoured is that the clients brief the client servicing executives, who in turn proselytise to the creative’s. However most of the time this does not happen. The agency is supposed to brief itself. The strategy formulated is communicated to the creative people. They are briefed about how to create the advertising according to the product needs. The strategy should be communicated with the clarity. The strategist should be a good motivator for the creative team.

THE CREATIVE PHASE Within the creative team. The copywriter and visualiser work together and it is difficult to attribute the final product to either of them. When they are working, there are personal sparks of creativity. Creative campaigns are creative due to good brief. Edward de bono was one of the geniuses of advertising, though he was not in advertising. He taught us that lateral thinking was the way to go. It is not always good to go from A to B .You may be required to go from A to R, and from to sun. We cannot restrict over selves to a box of thinking. It is behaving like a machine. The creative director position has become more responsible one. He has not remained content with a clever copy or stimulating visuals. He is required to understand the product and its market completely.

ADVERTISING RESEARCH
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Advertising research is a specialized form of marketing research conducted to improve the efficiency of advertising. According to MarketConscious.com, “It may focus on a specific ad or campaign, or may be directed at a more general understanding of how advertising works or how consumers use the information in advertising. It can entail a variety of research approaches, including psychological, sociological, economic, and other perspectives.” History 1879 - N.W. Ayer conducts custom research in an attempt to win the advertising business of Nichols-Shepard Co., a manufacturer of agricultural machinery. 1895 - Harlow Gale of the University of Minnesota mails questionnaires to gather opinions about advertising from the public. 1900s - George B. Waldron conducts qualitative research for Mahin’s Advertising Agency 1910s - 1911 can be considered the year marketing research becomes an industry. That year, J. George Frederick leaves his position as editor of Printer’s Ink to begin his research company, the Business Bourse with clients such as General Electric and the Texas Co. Also in 1911, Kellogg Co.’s ad manager, R.O. Eastman creates the Association of National Advertisers which is now known as the Association of National Advertising Managers. The group’s first project is a postcard questionnaire to determine magazine readership. The results introduce the concept of duplication of circulation. In 1916, R.O. Eastman starts his own company, the Eastman Research Bureau which boasts clients such as Cosmopolitan, Christian Herald, and General Electric. 1920s - In 1922, Dr. Daniel Starch tests reader recognition levels of magazine and newspaper advertisements and editorial content. In 1923, Dr. George Gallup begins measuring advertising readership. 1930s - In 1936, Dr. George Gallup validates his survey methodology by using the same tools polling voters during public elections. This allows him to successfully compare and validate his study's results against the election’s results. 1940s - Post World War II, the U.S. sees a large increase in the number of market research companies. 1950s - Market researchers focus on improving methods and measures. In their search for a single-number statistic to capture the overall performance of the advertising creative, Day-After-Recall (DAR) is created.
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1960s - Qualitative focus groups gain in popularity. [7] In addition, some advertisers call for more rigorous measurement of the in-market effectiveness of advertising in order to provide better accountability for the large amounts being spent on advertising. In response, Seymour Smith and Associates, using Advertising Research Foundation data as a jumping-off point, develops the Communicus System, a comprehensive approach to isolating the in-market impact of advertising across media. 1970s - Computers emerge as business tools, allowing researchers to conduct large-scale data manipulations. (Honomichl p. 175) Multiple studies prove DAR (Recall) scores do not predict sales. The measure, persuasion, also known as motivation, is validated as a predictor of sales. [8] The measure known as “breakthrough” is re-examined by researchers who make a distinction between the attention-getting powers of the creative execution (attention) and how well “branded” the ad is (brand linkage). [9] Herbert Krugman seeks to measure non-verbal measures biologically by tracking brain wave activities as respondents watch commercials. (Krugman) Others experiment with galvanic skin response, voice pitch analysis, and eye-tracking. 1980s - Researchers begin to view commercials as a “structured flow of experience” rather than a single unit to be rated on the whole, creating moment-by-moment systems such as the dial-a-meter. 1990s - Ameritest Research creates Picture Sorts to provide accurate nonverbal measurements in a moment-by-moment system. Picture Sorts results are graphed to visually represent commercial viewers' moment-bymoment image recognition (Flow of Attention), positive and negative feelings (Flow of Emotion), and brand values (Flow of Meaning).[12] Trends in in-market tracking include a greater focus on the multimedia nature of entire advertising campaigns. 2000s - Global advertisers seek an integrated marketing research system that will work worldwide so they can compare results across countries. [13] For a look at trends predicted for advertising research in the 21st century, see Seven Trends for the Future. Dr. Robert Heath publishes the seminal and controversial monograph “The Hidden Power of Advertising” which challenged the traditional models used in advertising research and shows how most advertising is processed at an emotional level (not a rational level). His monograph leads to re-examination of in-market research approaches that compare the behaviours of those who have seen advertising versus those who have not, such as the Communicus System, and the development of brand new pretesting systems such as the OTX AdCEP system.

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Types of Advertising Research There are two types of research, customized and syndicated. Customized research is conducted for a specific client to address that client’s needs. Only that client has access to the results of the research. Syndicated research is a single research study conducted by a research company with its results available, for sale, to multiple companies. Pre-market research can be conducted to optimize advertisements for any medium: radio, television, print (magazine, newspaper or direct mail), outdoor billboard (highway, bus, or train), or Internet. Different methods would be applied to gather the necessary data appropriately. Post-testing is conducted after the advertising, either a single ad or an entire multimedia campaign has been run in-market. The focus is on what the advertising has done for the brand, for example increasing brand awareness, trial, frequency of purchasing. Pre-testing Pre-testing, also known as copy testing, is a form of customized research that predicts in-market performance of an ad, before it airs, by analyzing audience levels of attention, brand linkage, motivation, entertainment, and communication, as well as breaking down the ad’s Flow of Attention and Flow of Emotion.[16] Pre-testing is also used on ads still in rough form – e.g., animatics or ripomatics. Pre-testing is also used to identify weak spots within an ad to improve performance, to more effectively edit 60’s to 30’s or 30’s to 15’s, to select images from the spot to use in an integrated campaign’s print ad, to pull out the key moments for use in ad tracking, and to identify branding moments. Campaign pre-testing A new area of pre-testing driven by the realization that what works on TV does not necessarily translate in other media. Greater budgets allocated to digital media in particular have driven the need for campaign pretesting. The first to market with a product to test integrated campaigns was OTX in association with Sequent Partners with the introduction of MediaCEP. The latest generation of this product incorporates one of the leading media planning tools developed by a media modelling and software company Point logic. The addition of a media planning tool to this testing approach allows advertisers to test the whole campaign, creative and media, and measures the synergies expected with an integrated campaign Post-testing Post-testing/Tracking studies provide either periodic or continuous inmarket research monitoring a brand’s performance, including brand
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awareness, brand preference, product usage and attitudes. Some posttesting approaches simply track changes over time, while others use various methods to quantify the specific changes produced by advertising —either the campaign as a whole or by the different media utilized. Overall, advertisers use post-testing to plan future advertising campaigns, so the approaches that provide the most detailed information on the accomplishments of the campaign are most valued. The two types of campaign post-testing that have achieved the greatest use among major advertisers include continuous tracking, in which changes in advertising spending are correlated with changes in brand awareness, and longitudinal studies, in which the same group of respondents are tracked over time. With the longitudinal approach, it is possible to go beyond brand awareness, and to isolate the campaign's impact on specific behavioural and perceptual dimensions, and to isolate campaign impact by medium.

CHAPTER4 Promotion - personal selling Introduction Personal selling can be defined as follows: Personal selling is oral communication with potential buyers of a product with the intention of making a sale. The personal selling may focus initially on developing a relationship with the potential buyer, but will always ultimately end with an attempt to "close the sale" Personal selling is one of the oldest forms of promotion. It involves the use of a sales force to support a push strategy (encouraging intermediaries to
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buy the product) or a pull strategy (where the role of the sales force may be limited to supporting retailers and providing after-sales service). MAIN ROLES OF THE SALES FORCE
1. Prospecting - trying to find new customers 2. Communicating - with existing and potential customers about the

product range
3. Selling - contact with the customer, answering questions and trying

to close the sale
4. Servicing - providing support and service to the customer in the

period up to delivery and also post-sale
5. Information gathering - obtaining information about the market to

feedback into the marketing planning process
6. Allocating - in times of product shortage, the sales force may have

the power to decide how available stocks are allocated what are the advantages of using personal selling as a means of promotion? • Personal selling is a face-to-face activity; customers therefore obtain a relatively high degree of personal attention • The sales message can be customised to meet the needs of the customer • The two-way nature of the sales process allows the sales team to respond directly and promptly to customer questions and concerns • Personal selling is a good way of getting across large amounts of technical or other complex product information • The face-to-face sales meeting gives the sales force chance to demonstrate the product • Frequent meetings between sales force and customer provide an opportunity to build good long-term relationships

Main disadvantages of using personal selling The main disadvantage of personal selling is the cost of employing a sales force. Sales people are expensive. In addition to the basic pay package, a business needs to provide incentives to achieve sales (typically this is based on commission and/or bonus arrangements) and the equipment to make sales calls (car, travel and subsistence costs, mobile phone etc). In addition, a sales person can only call on one customer at a time. This is not a cost-effective way of reaching a large audience.
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THEORIES OF SELLING AIDA’s theory of selling The popular AIDAS theory is based on the initials of the five letters which stands for attention, interest, desire, action and satisfaction. Attract attention: In order to attract the attention of the prospect and to open up the presentation several approaches are tried. The most common approach is to greet the prospect, and inform them who you are what you are selling. If the sales person has approached the prospect through a reference the presentation may starts with mentioning the name of the reference. Sustain interest and create desire Once the attention of the prospect is attracted, a sales person tries to sustain his interest and desire for the product in the introduction itself. No readymade formula can be given for this step. Perhaps, a product may be demonstrated .the emphasis is always on what benefits will flow to the prospect if he uses the product. Inducing action Once the explanation about the product and the benefits that it gives are over, it become necessary to close the sale and take order. A hint to close the sale may be given to ascertaining prospects willingness to buy. Building satisfaction A sale does not end with an order. We have to build goodwill for the company after that. That proves for a permanent relationship with the customer.post-sale activities will include installation and maintenance .all the activities which reduce the anxiety of the customer after making a purchase-psychologically called ‘cognitive dissonances’-are post-sale activities. RIGHT SET OF CIRCUMSTANCES THEORY This theory can be summarized as ‘everything was right for that sale. ‘It is called situation-response theory also. In particular circumstances, we respond in a particular way. The more skilled a sales person is in handling the circumstances the better is the response. The set of circumstances refer to both the internal and external factors working on the prospects ‘this theory however fails to handle the internal factors affecting the prospect. It puts the sales men in charge of the situation without paying any heed to the response generated.
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BUYING FORMULA THEORY This is buyer oriented theory which seeks answer to why a consumer buys what he does. It emphasises the problem-solving job of salesman. This theory takes into account the internal factors, and does not place all the importance on external factors. It is simply a problem, solution, purchase theory. The purchase must lead to satisfaction to continue the buyer and seller relationships. In the present context the problem solution can be either a product or brand. The schematic diagram of the buyer theory as follows: Product Need or Problem Brand Product or brand must be considered as adequate in solution must induce pleasant feelings. Both adequacy and pleasant feelings can be simultaneously present. BEHAVIOURAL EQUATION THEORY Howard explains buying behaviour as phases of learning process resulting into purchasing. Basically, this is modified stimulus-response (SR) model. Drivers, cues and re-enforcement are the four elements of the learning process. Drivers are strong internal feeling which can be innate like hunger,pain,sex,thirst etc.Cues are weak stimuli which decides when the buyer will respond. Cues provide information of symbolic nature about the product. Response is what a buyer does. Any event that strengthens this response is called re-enforcement. Howard put forward this as an equation: B= P*D*K*V Where B=response or purchasing P=force or habit D=drive level or motivation K=value of the produce to provide satisfaction V=intensity of all cues
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OR

purchase

satisfaction

OBJECTIVES OF PERSONAL SELLING a. To service the existing customers by maintaining a relationship with them, and by filling up their orders b. To get new customers c. To carry out the selling task entirely, if other elements of promotional mix are not at work d. To help the trade sell the company’s products line. e. To make the customer aware of our marketing strategy f. To act as technical consultants for complex products. g. To provide feedback to the company about the markets and customers h. To help the middlemen’s sales force i. To help the trade in their administrative problems.

CHAPTER5 DIRECT MARKETING

Direct marketing is a sub-discipline and type of marketing. There are two main definitional characteristics which distinguish it from other types of marketing. The first is that it attempts to send its messages directly to consumers, without the use of intervening media. This involves commercial communication (direct mail, e-mail, and telemarketing) with consumers or businesses, usually unsolicited. The second characteristic is that it is focused on driving a specific "call-to-action." This aspect of direct marketing involves an emphasis on traceable, measurable positive (but not negative) responses from consumers (known simply as "response" in the industry) regardless of medium. If the advertisement asks the prospect to take a specific action, for instance call a free phone number or visit a website, then the effort is considered to be direct response advertising. History The term direct marketing is believed to have been first used in 1967 in a speech by Lester Wunderman, who pioneered direct marketing techniques
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with brands such as American Express and Columbia Records. The term junk mail, referring to unsolicited commercial ads delivered via post office or directly deposited in consumers' mail boxes, can be traced back to 1954.[1] The term spam, meaning "unsolicited commercial email", can be traced back to March 31, 1993,[2] although in its first few months it merely referred to inadvertently posting a message so many times on UseNet that the repetitions effectively drowned out the normal flow of conversation. Although Wunderman may have been the first to use the term direct marketing, the practice of mail order selling (direct marketing via mail) essentially began in the U.S. upon invention of the typewriter in 1867. The first modern mail-order catalogue was produced by Aaron Montgomery Ward in 1872.[citation needed] The Direct Mail Advertising Association, predecessor of the present-day Direct Marketing Association, was first established in 1917. Third class bulk mail postage rates were established in 1928. Direct marketing's history in Europe can be traced to the 15th century. Upon Gutenberg's invention of movable type, the first trade catalogs from printer-publishers appeared sometime around 1450. Benefits and drawbacks Direct marketing is attractive to many marketers, because in many cases its positive effect (but not negative results) can be measured directly. For example, if a marketer sends out one million solicitations by mail, and ten thousand customers can be tracked as having responded to the promotion, the marketer can say with some confidence that the campaign led directly to the responses. The number of recipients who are offended by the junk mail/spam, however, is not easily measured. By contrast, measurement of other media must often be indirect, since there is no direct response from a consumer. Measurement of results, a fundamental element in successful direct marketing, is explored in greater detail elsewhere in this article. Yet since the start of the Internet-age the challenges of Chief Marketing Officers (CMOs) are tracking direct marketing responses and measuring results. While many marketers like this form of marketing, some direct marketing efforts using particular media have been criticized for generating unwanted solicitations. For example, direct mail that is irrelevant to the recipient is considered junk mail, and unwanted email messages are considered spam. Some consumers are demanding an end to direct marketing for privacy and environmental reasons, which direct marketers, are able to provide by using "opt out" lists, variable printing and more targeted mailing lists.
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Channels Some direct marketers also use media such as door hangers, package inserts, magazines, newspapers, radio, television, email, internet banner ads, digital campaigns, pay-per-click ads, billboards, transit ads. And according to Ad Age, "In 2005, U.S. agencies generated more revenue from marketing services (which include direct marketing) than from traditional advertising and media. Direct mail The most common form of direct marketing is direct mail, sometimes called junk mail, used by advertisers who send paper mail to all postal customers in an area or to all customers on a list. Any low-budget medium that can be used to deliver a communication to a customer can be employed in direct marketing. Probably the most commonly used medium for direct marketing is mail, in which marketing communications are sent to customers using the postal service. The term direct mail is used in the direct marketing industry to refer to communication deliveries by the Post Office, which may also be referred to as "junk mail" or "ad mail" or "crap mail" and may involve bulk mail. Junk mail includes advertising circulars, catalogs, free trial CDs, preapproved credit card applications, and other unsolicited merchandising invitations delivered by mail or to homes and businesses, or delivered to consumers' mailboxes by delivery services other than the Post Office. Bulk mailings are a particularly popular method of promotion for businesses operating in the financial services, home computer, and travel and tourism industries. In many developed countries, direct mail represents such a significant amount of the total volume of mail that special rate classes have been established. In the United States and United Kingdom, for example, there are bulk mail rates that enable marketers to send mail at rates that are substantially lower than regular first-class rates. In order to qualify for these rates, marketers must format and sort the mail in particular ways – which reduces the handling (and therefore costs) required by the postal service. Advertisers often refine direct mail practices into targeted mailing, in which mail is sent out following database analysis to select recipients considered most likely to respond positively. For example a person who has demonstrated an interest in golf may receive direct mail for golf related products or perhaps for goods and services that are appropriate for golfers. This use of database analysis is a type of database marketing. The United States Postal Service calls this form of mail "advertising mail" (admail for short).
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Telemarketing The second most common form of direct marketing is telemarketing, in which marketers contact consumers by phone. The unpopularity of cold call telemarketing (in which the consumer does not expect or invite the sales call) has led some US states and the US federal government to create "no-call lists" and legislation including heavy fines. This process may be outsourced to specialist call centres. In the US, a national do-not-call list went into effect on October 1, 2003. Under the law, it is illegal for telemarketers to call anyone who has registered themselves on the list. After the list had operated for one year, over 62 million people had signed up.[3] The telemarketing industry opposed the creation of the list, but most telemarketers have complied with the law and refrained from calling people who are on the list.[citation
needed]

Canada has passed legislation to create a similar Do Not Call List. In other countries it is voluntary, such as the New Zealand Name Removal Service. Email Marketing Email Marketing may have passed telemarketing in frequency at this point, and is a third type of direct marketing. A major concern is spam, which actually predates legitimate email marketing. As a result of the proliferation of mass spamming, ISPs and email service providers have developed increasingly effective E-Mail Filtering programs. These filters can interfere with the delivery of email marketing campaigns, even if the person has subscribed to receive them, as legitimate email marketing can possess the same hallmarks as spam. Door to Door Leaflet Marketing Leaflet Distribution services are used extensively by the fast food industries, and many other business focussing on a local catchment Business to consumer business model, similar to direct mail marketing, this method is targeted purely by area, and costs a fraction of the amount of a mail shot due to not having to purchase stamps, envelopes or having to buy address lists and the names of home occupants. Broadcast faxing A fourth type of direct marketing, broadcast faxing, is now less common than the other forms. This is partly due to laws in the United States and elsewhere which make it illegal.

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Voicemail Marketing A fifth type of direct marketing has emerged out of the market prevalence of personal voice mailboxes, and business voicemail systems. Due to the ubiquity of email marketing, and the expense of direct mail and telemarketing, voicemail marketing presented a cost effective means by which to reach people with the warmth of a human voice. Abuse of consumer marketing applications of voicemail marketing resulted in an abundance of "voice-spam", and prompted many jurisdictions to pass laws regulating consumer voicemail marketing. More recently, businesses have utilized guided voicemail (an application where pre-recorded voicemails are guided by live callers) to accomplish personalized business-to-business marketing formerly reserved for telemarketing. Because guided voicemail is used to contact only businesses, it is exempt from Do Not Call regulations in place for other forms of voicemail marketing. Couponing Couponing is used in print media to elicit a response from the reader. An example is a coupon which the reader cuts out and presents to a superstore check-out counter to avail of a discount. Coupons in newspapers and magazines cannot be considered direct marketing, since the marketer incurs the cost of supporting a third-party medium (the newspaper or magazine); direct marketing aims to circumvent that balance, paring the costs down to solely delivering their unsolicited sales message to the consumer, without supporting the newspaper that the consumer seeks and welcomes. Direct response television marketing Direct marketing on TV (commonly referred to as DRTV) has two basic forms: long form (usually half-hour or hour-long segments that explain a product in detail and are commonly referred to as infomercials) and short form which refers to typical 0:30 second or 0:60 second commercials that ask viewers for an immediate response (typically to call a phone number on screen or go to a website). TV-response marketing—i.e. infomercials—can be considered a form of direct marketing, since responses are in the form of calls to telephone numbers given on-air. These both allow marketers to reasonably conclude that the calls are due to a particular campaign, and allow the marketers to obtain customers' phone numbers as targets for telemarketing. Under the Federal Do-Not-Call List rules in the US, if the caller buys anything, the marketer would be exempt from Do-Not-Call List restrictions for a period
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of time due to having a prior business relationship with the caller. Major players are firms like QVC, Thane Direct, and Interwood Marketing Group then cross-sell, and up-sell to these respondents. One of the most famous DRTV commercials was for Ginsu Knives by Ginsu Products, Inc. of RI. Several aspects of ad, such as its use of adding items to the offer and the guarantee of satisfaction were much copied and came to be considered part of the formula for success with short form direct response TV ads (DRTV) Direct selling Direct selling is the sale of products by face-to-face contact with the customer, either by having salespeople approach potential customers in person, or through indirect means such as Tupperware parties. Integrated Campaigns For many marketers, a comprehensive direct marketing campaign employs a mix of channels. It is not unusual for a large campaign to combine direct mail, telemarketing, radio and broadcast TV, as well as online channels such as email, search marketing, social networking and video. In a report conducted by the Direct Marketing Association, it was found that 57% of the campaigns studied were employing integrated strategies. Of those, almost half (47%) launched with a direct mail campaign, typically followed by e-mail and then telemarketing. ATTRIBUTES OF DIRECT MARKETING There are four attributes which makes DM distinct from any other communication Focus: it targets a message to a well defined target audience, selected on the basis of segmentation. Measurability: it counts the number of responses as a result of each communication exercise. Personalization: it communicates with a person directly, addressing him/her by name. Immediately: it makes an offer in such a way that it generates an immediate response.

PRODUCTS SOLD BY DIRECT MARKETING
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The following products elicit a response through direct marketing:           Ready-to-wear garments Credit cards Shoes, slippers and other footwear Cosmetics, beauty aids, and health products. Kitchen equipments and household products. Music and film products. Travel plans, package tours, holiday resorts, time-share plans Banking and financial products including insurance Stationary, sporting goods Direct marketing is an iceberg. Only a small part is visible, and a large part is underneath, it is to marketers to explore it.

SALES PROMOTION Sales promotion is one of the four aspects of promotional mix. (The other three parts of the promotional mix are advertising, personal selling, and publicity/public relations.) Media and non-media marketing communication are employed for a pre-determined, limited time to increase consumer demand, stimulate market demand or improve product availability. Examples include:
a. b. c. d.

contests point of purchase displays rebates free travel, such as free flights

Sales promotions can be directed at the customer sales staff, or distribution channel members (such as retailers). Sales promotions targeted at the consumer are called consumer sales promotions. Sales promotions targeted at retailers and wholesale are called trade sales promotions. Some sale promotions, particularly ones with unusual methods, are considered gimmick by many.

CONSUMER SALES PROMOTION TECHNIQUES
• •

Price deal: A temporary reduction in the price, such as happy hour Loyal Reward Program: Consumers collect points, miles, or credits for purchases and redeem them for rewards. Two famous examples are Pepsi Stuff and Advantage. Cents-off deal: Offers a brand at a lower price. Price reduction may be a percentage marked on the package.

47 SRAVAN KUMAR REDDY, DEPT OF MARKETING MANAGEMENT, FBE, WOLLEGA UNIVERSITY

Price-pack deal: The packaging offers a consumer a certain percentage more of the product for the same price (for example, 25 percent extra). Coupons: coupons have become a standard mechanism for sales promotions. Loss leader: the price of a popular product is temporarily reduced in order to stimulate other profitable sales Free-standing insert (FSI): A coupon booklet is inserted into the local newspaper for delivery. On-shelf couponing: Coupons are present at the shelf where the product is available. Checkout dispensers: On checkout the customer is given a coupon based on products purchased. On-line couponing: Coupons are available on line. Consumers print them out and take them to the store. Mobile couponing: Coupons are available on a mobile phone. Consumers show the offer on a mobile phone to a salesperson for redemption. Online interactive promotion game: Consumers play an interactive game associated with the promoted product. See an example of the Interactive Internet Ad for tomato ketchup. Rebates: Consumers are offered money back if the receipt and barcode are mailed to the producer. Contests/sweepstakes/games: The consumer is automatically entered into the event by purchasing the product. Point-of-sale displays:       

• • • • • • •

• • •

Aisle interrupter: A sign that juts into the aisle from the shelf. Dangler: A sign that sways when a consumer walks by it. Dump bin: A bin full of products dumped inside. Glorifier: A small stage that elevates a product above other products. Wobblers: A sign that jiggles. Lipstick Board: A board on which messages are written in crayon. Necker: A coupon placed on the 'neck' of a bottle. YES unit: "your extra salesperson" is a pull-out fact sheet.

Trade sales promotion techniques Trade allowances: short term incentive offered to induce a retailer to stock up on a product.  Dealer loader: An incentive given to induce a retailer to purchase and display a product.  Trade contest: A contest to reward retailers that sell the most products.

48 SRAVAN KUMAR REDDY, DEPT OF MARKETING MANAGEMENT, FBE, WOLLEGA UNIVERSITY

Point-of-purchase displays: Extra sales tools given to retailers to boost sales.  Training programs: dealer employees are trained in selling the product.  Push money: also known as "spiffs". An extra commission paid to retail employees to push products.

Trade discounts (also called functional discounts): These are payments to distribution channel members for performing some function. SALES REPRESENTATIVE LEVEL PROMOTION Incentives: there are motivational tools linked to sales that achieve a certain level, or cross that level. These rewards can be given for individual performance and for special achievements. Some basic reasons for their extensive use are:         Morale boosters Increase units sold per representative Increase sales per representative Launch new products Increase sales on average per account Boost-recession period sales Upgrade existing accounts to high ticket products Review old products

Sales representative contests Here sales representatives are made to complete amongst them to motive them to achieve higher goals and benefit the organisation. Used positively, they are a great device. But used improperly, they demoralize the representatives. Themes The themes could be creatively chosen Some novel themes could be:     Let’s hunt for the hidden treasure (find new customers) Make your customer fat (sell more to existing customer) Planting the gold (sell more profitable product mix) Healthy customers, healthy sales (more profits per customers) etc.
49 SRAVAN KUMAR REDDY, DEPT OF MARKETING MANAGEMENT, FBE, WOLLEGA UNIVERSITY

Rules Everything must be specific. What constitutes a sale-whether an order or a delivery or a payment received? What constitutes a new order? What about sales returns after the context period? Every achievement must be rated in terms of points. All these will help avoid hard and bitter feelings later. Participation Large sales force with a hierarchical order calls for contests for different groups, and eligibility criteria restrict the participation to each group. In a contest, individuals should not be pitted against each other. A variety of contests/a variety of prizes do help in this direction. EVALUATION OF SALES PROMOTION Monitoring during implementation collects data on the following:        Product movement Territory wise sales Outlet wise sales Goals set vs. past result Competitive moves Market mood Problems encountered.

Post testing is basically analytical. Here performance is measured with respect to:

     

Redemption rate of coupons Sales attained Cost effectiveness Redemption of trading stamps Sales turnover of special packs Number of entries received for the consumer contest etc.

Post testing is done by
50 SRAVAN KUMAR REDDY, DEPT OF MARKETING MANAGEMENT, FBE, WOLLEGA UNIVERSITY

 Market research studies  Observation method in the stores  Desk analysis of collected data

Studies on SP give us the following guidelines

 Short purchase cycles means short term effects  The earliest redemption are incremental sales  Incremental sales are difficult to obtain for brands having a large market share  A coupon with a sample is twice as effective as a coupon alone.

Hidden costs of promotion are:

 High level of inventory with trade  Competitors rise up with their sales promotion  Discounts offered during promotion period become the base – line for future promotions.

SP designed to suit local market conditions is more effective.

CHAPTER 6 PUBLIC RELATIONS Public relations is popularly known as PR.As a profession ,it means as Frank Jefkins says, creation of understanding or better mutual understanding.PR is a continuous process and it is not restricted to the period of crisis. It is different from advertising ,in sense that advertising is persuasive in content ,and its basic objective is to achieve marketing and sales goals.PR is present informally in all organisation as communications of human relations.PR address itself to different
51 SRAVAN KUMAR REDDY, DEPT OF MARKETING MANAGEMENT, FBE, WOLLEGA UNIVERSITY

publics starting from employees, shareholders, distributors, customers, government ,local bodies, pressure groups, media etc. According to Jayanthi ghosh,Ogilvy PR worldwide “public relations has moved beyond the realm of media relations into areas such as reputation management, corporate image building, stakeholder outreach,KOL key opinion leader management, mergers and acquisitions and crisis communications. CORPORATE IMAGE A business has to build a favourable corporate image. We feel tempted to apply for a job in any Tata firm; through we do not know their financial position, all the details about their management structure, all the details of their product range etc.Our decision to deal with them is solely on the basis of their image. Citi bank in India has an image of efficiency and customer friendliness .corporate image is earned over a period of time. It is based on our experience of dealing with organisation. It is also based on our knowledge about that organisation. We may project a good or bad or indifferent image. It is the job of PR to communicate what we stand for.we has to behave responsibly as a corporate citizen. CORPORATE IDENTITY The concept of corporate image leads us to corporate identity. Image is mostly a matter of perception amongst the different audiences of the corporation. Identity is, however, more of a physical nature – it is the audible or the visible part of the corporate image. Elements of corporate identity:       The name of the organisation Communicative name if different Names of divisions, subsidiaries and products The corporate mark The corporate signature Graphic representation of a mark or signature

 Slogan, phrase etc  Typography ,curly letter of coco cola  Corporate colours MEDIA COVERAGE

52 SRAVAN KUMAR REDDY, DEPT OF MARKETING MANAGEMENT, FBE, WOLLEGA UNIVERSITY

Advertising as we have already observer is any paid form of non-personal communications. PR, by contrast, uses media without paying for it. kotler calls this planting of commercially significant news’ in media. It creates a favourable image of the corporation as a whole, or any of its products and services. Such media coverage is called publicity. Al ries and laura ries in their latest book 22 immutable laws of branding recommended publicity to build new brands. According to them, advertising is used generally to maintain existing brands. For new brands, concepts are thrown into the environment .press coverage and media coverage is improved. Publicity helps in creating perceptions.inn the past, advertising might have worked in the new brand building. Today it is not true. There is the element of clutter in out over-communicated society. Without favourable publicity in the media, the brand cannot be a winner. INTERVIEWS We have to know the media scene well. There are several different kinds of media newspapers, magazines, and electronic media. Specially media and niche media. Each media has a certain geographical spread, and demographic spread. Thus, savvy is a woman’s magazine being mostly by upwardly mobile urban women. Media are rated on the basis of their circulation and editorial environment.

As a person who receives a request for an interview, one has to be aware about the media scene and their special characteristics. A request for an interview is to be handled positively. One has to anticipate the kind of questioning one will be subjected to and the kind of responses one will offer. All strengths and weakness of the subject might be touched upon in the interview. Each interview session should be preceded by some homework. For a press interview it is good idea to educate the journalist by taking him around the plant and organisation. Tips on media management  Insist to run story without any change including the headline.  Label the story as ‘exclusive’ through all the media organisations are likely to receive the same story.  Point-out that the story is ‘cover-story’ material.  Though media is a bit unfair, they are being given a chance to handle the story.  Claim secrecy regarding data to avoid unnecessary facts.  Enquiry repeatedly about the status of the story.
53 SRAVAN KUMAR REDDY, DEPT OF MARKETING MANAGEMENT, FBE, WOLLEGA UNIVERSITY

 Ask them for a copy of the story after it is run.  Point out your advertising and marketing clout.  It is not necessary to show your gratitude for a great story. It is their job.

Sponsorship

First let us discuss the business consideration of a sponsorship, ranging from an award of a trophy to the sponsorship of a sports tournament.

It gives tremendous media coverage to the company and its product. It facilitates PR. the company becomes known internationally. The goodwill generated goes a long way in building a favourable corporate image. The company creates awareness about its name; it also allows a company to enter a new market segment.

Sponsorship gives an opportunity to the company to extend hospitality to valuable guests. Coverage on TV of a sponsored event is an added advantage. A sponsored event may be more effective than advertising in certain situations.

Event marketing:

Inspired by the success of femina’s beauty pageants, many companies now make use to event marketing, e.g. Screen Panasonic awards, Mahindra & Mahindra squash tournament, femina miss India pageant etc

54 SRAVAN KUMAR REDDY, DEPT OF MARKETING MANAGEMENT, FBE, WOLLEGA UNIVERSITY

Merits      The brand message is taken a long way. Media and market clutter is bypassed It builds long-term corporate image These are cost effective Media coverage of the event is an added advantage.

Adventure marketing

Adventure like skating, mountaineering, swimming which are risky sports/expeditions is being sponsored by corporate organisations to get publicity. Adventure marketing proves cost effective too since the events get televised and sponsors logo gets flashed on the screen without paying the prohibitive as tariff rates of TV commercials.

Sports marketing

Nothing sells like sports. Once relegated to the ghetto of cigarette, beer and auto companies, sports’ marketing has taken a firm hold on the corporate world. Tennis, for one, has become a business that can fetch a fortune. Even school going players are making as much money in a year as their parents made in a decade. The big three in the business of sports are the international management groups (IMG) preserve and advantage international. They are premier firms in the representation of sports celebrities.

IN-HOUSE-PR

PR being an important function, in large organisation it is delegated to an independent PR department. A person in charge of PR department must have

55 SRAVAN KUMAR REDDY, DEPT OF MARKETING MANAGEMENT, FBE, WOLLEGA UNIVERSITY

 As much knowledge about organisation as possible  Good qualification like management training, PR advertising, journalism or mass communications diploma.  Good experience  Personal traits suitable to work as PR executive  Managerial skills of planning, organising and controlling  Imagination and innovation  Computer literacy  Personal integrity

diploma,

Corporate advertising

Corporate advertising also called institutional advertising does not seem to sell anything but it is used to build an image of the organisation .It states what organisation has to say about itself, lays stress on its mission and its philosophy .It says everything very boldly .It may have a social message for a specific target audience. It presents the view point of an institute for a national cause.

CUSTOMER RELATIONS

The very bed-rocking of marketing, PR and business is customer relations .customer relations are an essential part of any PR programme. It is necessary that customer should actually like the company and its products .A product that performs satisfactorily is the beginning of good customer relations. There may be number of problems a customer may come across while using the product .there should be systematic approach in handling customer complaints.PR techniques try to maintain and sustain customer interest . We can think of ways and means to make people use our product, and further to make it used more and more.

PR AND MARKETING

PR and marketing have a symbiotic relationship. To begin with PR is considered as just a part of marketing. It is open to the firm to have pr or
56 SRAVAN KUMAR REDDY, DEPT OF MARKETING MANAGEMENT, FBE, WOLLEGA UNIVERSITY

not. It just supports advertising and thus is a part of promotion. Advertising is paid for, and pr is free publicity. Pr has however, strong linkage with marketing. The marketing operation of any business are guided by its marketing plan, which has the best possible mix of four variables namely, the nature of the product, the price of the product, the channels of distribution which take the product from the producer to the customer, and promotional activities. Let us how PR is related to these four elements of the marketing mix.

PRODUCT

A company marketing products and services has a name. The name of the company itself stands for entire identity and image. It should enable others to identify a company, and create an understanding about it. The company name must be easy to remember .explicit names are preferable. A company name has PR connotations. The changes in name is called for when the nature of business or mission of the company changes. The change will be well communicated. It should not confuse the public.

A company’s products are branded. Branding ads value to the product .a brand name is also necessary for identification and communication purposes. It facilitates marketing communication.

Whether the name of the company or its brands, the name should be distinctive, suggestive, appropriate and memorisable. Besides in these days of globalization, the name must be internationally acceptable.

PACKAGING OF THE PRODUCT

Package of the product also has communicative functions. A package may generate goodwill or may create ill feeling. Packages are made for the convenience of the customers. A slight change in package creates problem of acceptance. Coke has learnt that consumers have a liking for its green countered bottle. It is trying to shape even its cans in such a mould. Packaging is another name for being shown to the customer.
57 SRAVAN KUMAR REDDY, DEPT OF MARKETING MANAGEMENT, FBE, WOLLEGA UNIVERSITY

PRICE

Price is charged to cover all costs leave some surplus. Price, however, has psychological dimensions. In indicates what people can afford to pay, and what they would like to pay. Price paid should provide value for money spent. Money can be put to alternative uses. An organisation stakes its goodwill on price. Price has a great role to play in the overall satisfaction of the customers and the feeling they have towards the organisation .price has, PR implications. Change in price must be brought to the notice of all concerned.

CHANNELS OF DISTRIBUTION

There should be communication between the trade channels and PR .while selecting a channel, we have to consider the other 3 ps-product, price and promotion. Channels must be educated about the company’s product. There are dealer’s conferences, training sessions and dealer magazines.

PROMOTION

Promotion brings us closer to the customer. It has PR implications since both have the ultimate aim of customer satisfaction. As SP scheme affects the goodwill of a company in the long run and the bottom-line of the company in the short- run should be considered in relation to the trade conveniences.

THE END
58 SRAVAN KUMAR REDDY, DEPT OF MARKETING MANAGEMENT, FBE, WOLLEGA UNIVERSITY

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