Project Report on Advertising Effectiveness [Advertising/Sales Promotion/Sales Management

]

ADVERTISING EFFECTIVENESS
CONCEPTUAL STUDY OF PROMOTION MIX People no longer buy shoes to keep there feet warm and dry. They buy them because of the way the shoes make them feel masculine, feminine, rugged, different, sophisticated, young, glamorous, "in" buying shoes has become an emotional experience . Our business now is selling excitement rather than shoes. - Francis C. Rooney Modern marketing calls for more than developing a good product it attractively and making it accessible to target customers. Companies must also communicate with their present and potential customers. Every company is inevitably cast into the role of communicator and promoter. What is communicated however should not be left to change. To communicate effectively; companies hire advertising agencies to develop effective ads; sales promotion specialists to design sales incentive programmes and public relations firms to develop the corporate image. They train their sales people to be friendly and knowledgeable. For most companies, the question is not whether to communicate but rather what to say, to whom. Promotion influences demand by communicating product and company message to the market. A promotion Techniques involves the co-ordination of all communication efforts aimed at a specific audience; consumer and shareholder. The most critical promotional question is the proper mix of advertising, personal selling, sales promotion and publicity. The promotion mix is usually co-ordinate on a campaign basis; taking the campaign may efforts include a total campaign with one unified theme. All promotion messages tie in to this theme in one way or the the, rather than conflicting with it.

It is directed at a mass audience and not directed at the individual as in personal selling. Advertising is non-personal. Advertising is identifiable with its sponsoring authority and advertiser. the following points emerge: Advertising is a paid form and hence commercial in nature. as Jones defines it is "a sort of machine made mass production method of selling which supplements the voice and personality of the individual salesman. Advertising thus is : 1. goods and services. This any sponsored communication designed to influence buyer behavior advertising." It is thus a process of buying/sponsor/identified media space or time in order to promote a product or an idea. From a careful scrutiny of the above definition. written or visual). The advertising. Impersonal . Unlike personal selling.ADVERTISING The word µAdvertising¶ has its origin from a Latin word µAdventure¶ which means to turn to. such as manufacturing the machine supplements the hands of the craftsman. Although most advertising is designed to help sell goods. it is being used increasingly to further public interest goals. The dictionary meaning of the word is µto announce publicity or to give public concerned to a specific thing which has been announced by the advertiser publicity in order to inform and influence them with the ideas which the advertisement carries. In business world the terms in mainly used with reference to selling the product of the concern. It discloses or identifies the source of opinions and ideas. advertising is done in a nonpersonal manner through intermediaries or media whatever the form of advertisement (Spoken. Advertising promotes idea.

3. it may persuade with emotion: more frequently. it endeavors to persuade with some mixture of both. If we eliminate the requirement of an "identified sponsor". Moreover TV does not have much coverage in our country. the resulting communication is propagandistic. Advertising may persuade with information. When T. which appeal to local audience consumers have responded very favorably to this approach. It is important for us to emphasize that advertising may involve the communication of ideas or goods of service. B) Television : .V. If we eliminate the elements of the "paying sponsor" (The paid requirement) we would have the element of publicity left : For publicity is technically speaking. became a factor in the advertising scene. By a paying sponsor. The radio serves principally local rather than national or large regional markets. (A) Radio : Advertisers using the medium of radio may also be classified as National or Local advertisers. So do some large organizations. Aimed at mass audience 4. This has not been so. The two forms of mass communication that are something confused with advertising are publicity and propaganda. (1) Electronic Media Advertisers use two types of media to reach target consumers over the airwaves. The radio is a prominent vehicle of advertising in our country and accounts for a large sum of the total advertising budget.V. We are all aware that advertising attempts to sell goods and services. advertisement without payment. radio or T.2. But we may overlook the more important fact that it often sells ideas. A communication of ideas. some industry observers felt that radio advertising might become insignificant or even disappear. Many small advertisers use the radio. for radio operators have responded to the challenge by offering programmes that features music etc. In a similar manner.

a growing class of advertising media has been the TV. The TV is a unique combination timing of sight and sound and achieves a deeper impact than the other media do. TV appeals to both the senses of sound and of sight . Finally. marketers can easily use them to reach particular markets. they are local in content and appeal and provide opportunity for direct communication between a product and its local dealers or distributors. the fact that product or service is promoted on TV may build a prestigious image of the product and its sponsor. This is particularly advantageous for advertisers whose product require demonstration. Advertisers can reach a very broad audience through newspapers which offer great flexibility. There are hardly any TV sets. Moreover. In our country not everyone has a TV set. Since newspapers are local. in rural India where 76. except at the community centers where electricity is available. From the viewpoint of the advertiser. (ii) Print Media The print media carry their massages entirely through the visual mode. magazines and direct mail. Some are in the twelve-hour range. TV programmes in our country do not offer much selectivity. The pleasure derived from watching TV is at least potentially transferable to the advertising message delivered through the medium. As a result is combines the two to produce high-impact commercials. An organisation may approach national markets . This selectivity is easily rigorous.31% of our population lives. The advertisers may choose the specific area to be covered and the advertisement can be placed in newspapers at very short notice as compared with other media. Newspapers in our country virtually reach most of the homes in the cities. they offer an atmosphere of factual information and of currency that may be favourable for some advertising situations. newspaper offers several advantage. (A) Newspaper : A sizable share of the total advertising budget is spent on advertising in newspapers. (B) Magazines: Magazines are also mean of reaching different market. repetition. mass coverage. flexibility and prestigious. any centers do not have TV towers. Because newspapers supply news.Late in India. In our country. These media consist of newspapers. TV advertising offers advantage of impact. Moreover. therefore it does not reach everyone. both original and matinal and of general and specific interest. The translation is limited. commercial advertising on TV is severely limited because broadcast timings are only in the evenings.

Transport advertising is useful in reaching consumers at an advantageous point which they are embarking on a shopping trip. illuminated. industrial consumers. Famina. Others are highly specialised. educational level and interest magazines. posters or displays (such as those that appear on a building¶s wall) and electric spectacular (large. Some marketers divide their market on the basis of such variable as age. India Today. buses. Some offer news or together "General Interest" content to huge audience.through such publication as Business India. Sings are usually smaller than billboards and are erected and maintained by the marketer rather than by the advertising media. sports etc. This form of advertising has the advantage of communication quick and simply ideas of repetition and of the ability to promote products that are available for sales. Here the number of billboards is would attract approximately 50% of the local population about 20 times during a month. (B) Transport Advertising : Transport advertising appears on the inside or outside of taxis. Repeat exposure is possible for a majority of the people in our country use public transport basis. Sportsweek. The diversity of magazines is tremendous. . Advertisers may utilize this medium to economically reach a large mass of people or small local markets. This medium is a low cost medium. railways and other modes of passenger transportation. A showing indicates the percentage of the total population of a particular geographic area that will be exposed to it during one month period. technical or even exotic. Business World and Filmfare. In general. Marketers may use transit advertisement to attain high exposure to particular groups consumers on theory way to and from work and tourists. Outdoor advertising is particularly effective in metropolitan and other can use this medium to bring the products to the attention of consumers or to remaining them of the product. magazines offer advertiser the opportunity to reach highly selective audience. sometime animated sign and display). The marketers may purchase billboards on the basis of showings. The highest showing is 100. iii) OUTDOOR AND TRANSIT MEDIA (A) Outdoor Advertising : Outdoor advertising involves the use of sign and bill-boards. ladies. while they are on shopping trips or area disposed towards shopping. Magazines are divided into those parts that serve business.

PERSONAL SELLING .SALES PROMOTION According to the American Marketing Association. the editor or broadcast station programme director may choose to throw the release in the waste paper basket. Sales promotion activities are impersonal and usually non-recurring and are directed at the ultimate consumers. such as displays shows and expositions. The most common type of publicity are news release (also know as press release). store displays are an important sales promotion device. or print or broadcast it in the original form. premiums. store displays. Some products and brands have received bad publicity. PUBLICITY Publicity is a means of promoting the mass market and is similar to advertising. For many organisations. Such exposure is especially important for items that are bought on impulse. Display exposes the promotion messages to consumers at the time and place of purchase. industrial consumers and middlemen. coupons and trade shows. trading stamps. with the media in order to minimise bad publicity. wings. except that it is free. Many a companies and trade association officials attempt to develop favourable working relationships. demonstration and various non-recurrent selling efforts not in the ordinary routine. These activities tend to supplement the advertising and personal selling efforts. Upon receiving a news release. for instance. Sales Promotion consists of those marketing activities other than personal advertising and publicity that stimulate consumer purchasing and dealer effectiveness. personal selling and sales promotions messages. photographs and feature stories. Numerous consumers products are purchased in stores that use self-service selling method's. The disposition of the news release is entirely in the hands of the media and cannot be dictated by the marketer. is found in the editorial portion of news media and pertains to newsworthy events. including the marketers of food. Examples of sales promotion are free product samples. Publicity may be negative as well as positive. Marketers of such items need effective display in order to distinguish their products from those of their rivals. toys and clothing. They realize that such communications to the public may have every adverse impact upon the image of the organisation. change the hording. Marketers have less control over the nature of the publicity that their organisation and products receive than they have over their advertising. artificial sweeteners have been branded unsafe or unhealthy in the publicity which they would rather have done without. for example cigarettes.

employees. Testing for the effectiveness of ad. The most effective method of promotion probably is to have sales person call upon every target consumers. they employ mass marketing techniques such as advertising. These "other" include the public at large labour unions. while personal selling aims at individuals the right approach. Unlike advertising. the general public and the society in which the organisation operates. sales persons receive immediate feedback on the extent to which their messages are getting across. They direct this activity to parties other than target consumers.Personal selling consists of persons to communication between the sales persons and their prospects. will lead advertisement testing must . Further. personal selling is very important in industrial marketing. Sales persons are in the position to tailor their messages according to the unique characteristics of each prospect. As a result. whether or not it has a formalized (organised. by observing and listening. Advertising aims at grouping the shotgun approach. effectiveness. it involves personal interactions between the sources and the destination. the government. The critical point is that every organisation. The term public relations refers to a firm's communication and relationships with the various sections of the public. the press and environmental groups. programme. but every advertiser is keenly interested in measuring or in evaluation of ad. should be concerned about its public relations. These sections include the organisation customers. The most effective method of promotion probably is to have sales person provided that the organisation has sufficient funds. PUBLIC RELATIONS Marketers engage in public relations in order to develop a favourable image of their organisation and products join the eyes of the public. the sales person may quickly adjust it or the method of its presentation. Personal selling may be a very intense means of promotion. Public relations activities include sponsoring. share holders. especially those that appeal to the mass market. Public relations programme may higher be formal or informal. Effectiveness of which cannot be measured with a mathematical or empirical formula some advertisers argue that advertising efforts go to waste. lobbying and using promotion message to persuade members of the public to take up a desired position. for many institutions. ADVERTISING EFFECTIVENESS Advertising is an art not a science. ignore a store display. If feedback indicates that the message is not getting across. Consumers can easily leave the room-during a TV commercial. suppliers. this would be terribly inefficient.

It is of two types. buying intention and the actual purchase in relation to ad. such as the product's features. has been launched and one is referred to as cost testing which is done after launching the advertising campaign. preference. What sales are generated by an ad that increases brand awareness by 20% and brand preference by 10%? Advertising's sales effect is generally harder to measure than its communication effect. a few methods have ben discalled in the following paragraphs which are generally used to measure the sales response to advertising. This method. Measuring Sales Response to Advertising : Though increase in sales in the true measure of advertising effectiveness. effectiveness feed back is always useful even if it costs some extra expenditure to the advertiser. requires the measurement of both readers and non-readers who purchased and who did not . They are called sales effect tests. Sales are influenced by many factors besides advertising. in reality it is difficult to measure the increase that is due to a particular advertisement. Sales-Effect : Communication-effect advertising research helps advertisers assess advertising's communication effects but reveals little about its sales impact.be done either before or after the ad has done in the media. the easier it is to measure advertising's effect on sales. PROGRESS TESTS These assess the various stages of buyer awareness. which has been developed by Daniel Starch and Staff company. However. pretesting which is done before the ad. to predict the relative strength of alternative strength of alternative advertising strategies and to increase their efficiency. The Netapps Method : The term Netapps has been framed from the term net-ad-produce-purchases. In measurement of ad. The fewer or more controllable these other factors are. has been launched and one is referred to as cost testing which is done before the ad. The sales impact is easiest to measure in direct-marketing's effect on sales. effort. The sales impact is easiest it is to measure in direct-marketing situations and hardest measure in brand or corporate-image-building advertising. price. The basic purpose of advertising effectiveness is to avoid costly mistakes. It is rather difficult to correlate the response in sales with the advertising programme. availability and competitors' actions.

we have considered advertising influence as the only factor which results in a purchase. The assumption is that favorable attitude towards the product may lead to purchases. Attitude Tests This is an indirect measurement of the post-testing effects of ads on attitudes towards the advertised product or brands. and often are. The element's presence observance is a reason for difference in sales. The change in attitude as a result of advertising is assessed. The difference is attributed to ad impact. Controlled Experiment : In experimental market. The inventory audit is dealers inventory before and after the ad is run. . other variables which affect purchases. any one element of marketing mix is changed. An attitude is a favorable or unfavorable feeling about a product.purchase the brand under investigation. taking several routes. Past Sales before the ad and sales after the ad are noted. the experiment can be carried on the two groups of consumers. Moreover. The netapps method is useful in the relative measurement of the sales-effectiveness of various advertising approaches. But the method is subject to a high level of false reporting and open to interviewer bias. It is compared with the sales of another similar market. Instead of two markets. Most ads are designed to either reinforce or change existing attitudes. Sales Results Tests : The additional sales generated by the ads are recorded. There may be.