Index

1. Introduction
2. Objectives of the project
3. Company Profile
4. Literature Survey.
5. Research Methodology
6. Data Analysis and Interpretation
7. Conclusions and Suggestions
References
Annexure – Questionnaire

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INTRODUCTION

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 INTRODUCTION

“Marketing is a social and managerial process by which individuals and groups obtain what
they need and want, through creating, offering and exchanging products of value with
others”.
- Philip Kotler.

Marketing includes all those activities having to do with effecting changes in the ownership
and possession of goods and services. It is that part of economics which deals with the
creation of time, place and possession utilities and that phase of business activity through
which human wants are satisfied, by the exchange of goods and services for some valuable
consideration.
- American Marketing Association.

Marketing is the process of discovering and translating consumer wants into product and
service specifications and then in turn helping to make it possible for more and more of
consumers to enjoy more and more of these products and services.

Marketing consists of analyzing marketing opportunities, researching and selecting target

markets, designing marketing strategies, planning marketing programs and organizing,
implementing and controlling marketing effort.
Companies have to identify long and short term marketing opportunities and research the
selected market by measuring and forecasting attractiveness of the given market. Having
selected the market, the companies need to develop a differentiating and positioning strategy
for the target market. The marketing strategy must be transformed into marketing programs
by deciding on marketing expenditures and the marketing mix. The final step is organizing
the marketing resources and implementing and controlling the marketing plan.

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 Marketing Mix

Marketing mix is the set of marketing tools that a firm uses to pursue its marketing objectives
in the target market.
McCarthy has popularized a four factor classification of marketing tools known as the 4P’s of
the marketing mix. They are:
 Product
 Price
 Place
 Promotion

Product:

Product stands for the firm’s tangible offer to the market, including the product quality,
design, features, branding and packing. It deals with new product development, product life
cycle, product mix, product lines, branding and associated services to a product.

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 From the customer’s point of view, it helps in satisfying the customer’s needs and wants.

Price:

Price is the monetary value of the product. Price deals with selecting the pricing objectives,
setting the price, discounts, allowances, payment policies and credit terms. It is very
important to the customers as it decides the cost the customer has to pay to gain the product
value.

Place:

This marketing tool stands for the various activities the company undertakes to make the
product accessible and available to the customer. It involves market size, channel selection
and management, storage and physical distribution with the ultimate purpose of efficiently
supplying the company’s offer to the target market. To the customer, this marketing tool
refers to convenience.

Promotion:

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Promotion stands for various activities the company undertakes to communicate and promote
its products to the target market. It involves communication programs i.e. direct marketing,
advertising, sales promotions, public relations and motivation of sales force. To the customer
this tool provides knowledge and information.

The Promotion Mix of a company includes the following tools;

Advertising:

It is any paid form of non-personal presentation and promotion of ideas, goods or services
by an identified sponsor.

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Direct Marketing:

It refers to the use of mail, telephone and other non-personal contact tools to
communicate with or solicit a response from specific customers and prospects.

Personal Selling:

Face to face interaction with one or more prospective purchasers for the purpose of
making a sale refers to personal selling.

Public Relations and Publicity:

It refers to the variety of programs designed to promote and or protect a company’s image
or its individual products.

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Sales Promotions:

The short-term incentive to encourage trial or purchase of a product or service refers to

sales promotion. Whereas advertising offers a reason to buy; sales promotion offers an
incentive to buy. Since sales promotion directly push up the sales, increasing number of
companies are undertaking sales promotion activities.

Sales Promotion

Sales promotion refers to the short-term incentives to encourage sales of a product or service.
It consists of a diverse collection of incentive tools, mostly short-term, designed to stimulate
quicker and greater purchase of products or services by consumers.

Purpose of Sales Promotion

Sales promotion tools vary in their specific objectives. They may be used to attract new
customers, to reward loyal customers and to increase the repurchase rates of occasional users.
Sales promotion usually targets brand switchers because non-users and users of other brands
do not always notice a promotion. Sales promotions are thus also seen as a tool for breaking
down loyalty to other products.
Sales promotions also let manufacturers adjust to short term changes in supply and demand
and differences in customer segments. They also let manufacturers to experiment by varying
prices. Sales promotions also lead to greater consumer awareness of prices.
To use sales promotion, a company must set objectives, select the right tools, develop the best
program and implement it and evaluate the results.

Objectives of Sales Promotion

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 The specific objectives set for sales promotions will vary with the type of the target
market. For consumer promotions, objectives include encouraging purchasing of larger sized
units, building trial among non-users and attracting switchers away from the competitor’s
brands. For trade promotions, objectives may include; including retailers to carry new items
and higher level of inventory, encouraging off-seasonal buying, of-setting competitive
promotions, building brand loyalty of retailers and gaining entry into new retail outlets. The
sales force promotions help in encouraging support of a new product or model, encouraging
more prospecting and stimulating off-seasonal sales. But most importantly, sales promotion
should be focused on consumer relationship building.

Sales Promotion Tools

Many tools can be used to accomplish sales promotion objectives. Descriptions of the
main promotional tools are as follows;

Consumer Promotion Tools

The main consumer promotion tools are as follows;

 Samples:

They are offers of a trial amount of a product. It consists of inviting prospective

purchasers to try the product without cost or at a lower cost in the hope that they will
buy the product. Samples may be free or discounted.

 Coupons:

Coupons are certificates that give buyers a saving when they purchase a specified
product. Coupons can be mailed, placed in advertisements or included with other
products.

 Rebates:

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 Rebate is also known as cash refund offers. Rebates are offers to refund part of the
purchase price of a product to its customers who send a proof of purchase to the
manufacturer. These are like coupons except that the price reduction occurs after
the purchase and not at the point of sale.

 Price Packs:

Cents-off deals or price packs offer consumers savings by way of reducing prices
that are marked by the producer directly on the package.

 Premiums:

These are the goods offered either free or at a low cost as an incentive to buy a
product. Premiums may be in-pack or on-pack (outside the pack).

 Prizes:

They are offers of chance to win something such as cash, trips or goods – by luck or
through extra efforts. Contests of talent and sweepstakes or draws the most popular prize
offering promotions.

 Tie-in Promotions:

Tie-in promotions involve two or more brands or companies that team up on coupons,
refunds or contests to increase their pulling powers.

 Cross Promotions:

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 Cross promotions involve using one brand to advertise non-competing brand.

 Advertising Specialties:

These are useful articles imprinted with an advertiser’s name, given as gifts to consumers.

 Patronage Rewards:

They are cash or other awards for the regular use of company’s products or services. They
are values (in cash otherwise) that are proportional to one’s patronage of a certain vendor
or a group of vendors. They aim at building brand loyalty.

 PoP Promotions:

Point of purchase (PoP) includes displays and demonstrations that take place at the point
of purchase or sale.

Trade Promotion Tools

More money is spent by companies on trade promotion (58%) than on consumer

promotions (42%). The major trade promotion tools are as follows;

 Discounts:

It is also known as price-off or off-invoice or off-list. Discounts price cut off the list
price on a particular quantity purchased during a stated time.

 Allowances:

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 They are the amount offered in return for an agreement by the retailer to feature the
manufacturer’s products in some way; displays, advertising or otherwise.

 Free Goods:

Free goods are the extra merchandise offered to middlemen who buy a specific amount of
a product.
Companies also offer push money and specialty advertising items to the middlemen.

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 Business Promotion Tools

Companies spend huge amount on promotions focused on industrial consumers. The

major business promotion tools are as follows;

 Trade Shows and Conventions.

 Sales Contests.

Clearly, sales promotions play an important role in the total promotion mix. To use it well,
the marketer must define the sales promotion objectives, select the best tools, design the sales
promotion program, pretest and implement the program and evaluate its results.

A marketing strategy is a process that can allow an organization to concentrate its limited
resources on the greatest opportunities to increase sales and achieve a sustainable competitive
advantage. A marketing strategy should be centered around the key concept that customer
satisfaction is the main goal.

Key part of the general corporate strategy

A marketing strategy is most effective when it is an integral component of firm strategy,

defining how the organization will successfully engage customers, prospects, and competitors
in the market arena. corporate strategies, corporate missions, and corporate goals. As the
customer constitutes the source of a company's revenue, marketing strategy is closely linked
with sales. A key component of marketing strategy is often to keep marketing in line with a
company's overarching mission statement[4].

Basic theory:

1. Target Audience
2. Proposition/Key Element
3. Implementation

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Sectorial tactics and actions

A marketing strategy can serve as the foundation of a marketing plan. A marketing plan
contains a set of specific actions required to successfully implement a marketing strategy. For
example: "Use a low cost product to attract consumers. Once our organization, via our low
cost product, has established a relationship with consumers, our organization will sell
additional, higher-margin products and services that enhance the consumer's interaction with
the low-cost product or service."

A strategy consists of a well thought out series of tactics to make a marketing plan more
effective. Marketing strategies serve as the fundamental underpinning of marketing plans
designed to fill market needs and reach marketing objectives[5]. Plans and objectives are
generally tested for measurable results.

A marketing strategy often integrates an organization's marketing goals, policies, and action
sequences (tactics) into a cohesive whole. Similarly, the various strands of the strategy ,
which might include advertising, channel marketing, internet marketing, promotion and
public relations can be orchestrated. Many companies cascade a strategy throughout an
organization, by creating strategy tactics that then become strategy goals for the next level or
group. Each one group is expected to take that strategy goal and develop a set of tactics to
achieve that goal. This is why it is important to make each strategy goal measurable.

Marketing strategies are dynamic and interactive. They are partially planned and partially
unplanned. See strategy dynamics.

Strategic models

Marketing participants often employ strategic models and tools to analyze marketing
decisions. When beginning a strategic analysis, the 3Cs can be employed to get a broad
understanding of the strategic environment. An Ansoff Matrix is also often used to convey an
organization's strategic positioning of their marketing mix. The 4Ps can then be utilized to
form a marketing plan to pursue a defined strategy.

Marketing in Practice

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The Consumer-Centric Business

There are a many companies especially those in the Consumer Package Goods (CPG) market
that adopt the theory of running their business centered around Consumer, Shopper &
Retailer needs. Their Marketing departments spend quality time looking for "Growth
Opportunities" in their categories by identifying relevant insights (both mindsets and
behaviors) on their target Consumers, Shoppers and retail partners. These Growth
Opportunities emerge from changes in market trends, segment dynamics changing and also
internal brand or operational business challenges.The Marketing team can then prioritize
these Growth Opportunities and begin to develop strategies to exploit the opportunities that
could include new or adapted products, services as well as changes to the 7Ps.

Real-life marketing primarily revolves around the application of a great deal of common-
sense; dealing with a limited number of factors, in an environment of imperfect information
and limited resources complicated by uncertainty and tight timescales. Use of classical
marketing techniques, in these circumstances, is inevitably partial and uneven.

Thus, for example, many new products will emerge from irrational processes and the rational
development process may be used (if at all) to screen out the worst non-runners. The design
of the advertising, and the packaging, will be the output of the creative minds employed;
which management will then screen, often by 'gut-reaction', to ensure that it is reasonable.

For most of their time, marketing managers use intuition and experience to analyze and
handle the complex, and unique, situations being faced; without easy reference to theory.
This will often be 'flying by the seat of the pants', or 'gut-reaction'; where the overall strategy,
coupled with the knowledge of the customer which has been absorbed almost by a process of
osmosis, will determine the quality of the marketing employed. This, almost instinctive
management, is what is sometimes called 'coarse marketing'; to distinguish it from the
refined, aesthetically pleasing, form favored by the theorists.

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4 Ps

Marketing-mix is a combination of several-mixes. As shown in figure marketing-mix

encompasses product-mix (brand, quality, weight, etc); price-mix(unit price, discount, credit,
etc); promotion mix(advertising, salesmanship and sales promotion); and place-
mix(distribution channels, transport, storage, etc).

A brief description of marketing-mix is given below:

1. PRODUCT:

Product-mix involves planning, developing, and producing the right types of products
and services to be marketed by the firm. It deals with the product range, durability and other
qualities.

With the suite of products that Zenith Infotech are offering and the ever increasing
competitive environment, the sector is trying to enhance tools to cater to the customer
through his life cycle and hence ensuring a larger share of wallet from the customer.

Customers now have ample choice, not just within banks but within segments of
banks – foreign, private sector or public sector banks. While customers approach various
types of banks depending on their requirements, the key to maintaining and increasing market
shares by any bank is to customise themselves to customer needs.

Product planning and development involves decisions about:

 Quality of product

 Size of product

 Design of product

 Volume of product

 Packaging Warranties and after sales services

 Product testing

 Product Range, etc.

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2. PRICE:

It is one of the most difficult tasks of the marketing manager to fix the right
price. Pricing involves establishing policies regarding credit and discounts. The variables
that vitally influence pricing are demand of product, its cost, the buying capacity of various
kinds of customers, actual and potential competition, and government regulation.

The price mix includes following decisions:

 Determination of unit price of the product

 Pricing policies and strategies

 Discounts, rebates and level of margins

 Credit policy and

 Terms of delivery, payment etc.

3. PROMOTION:

Promotion deals with informing and persuading the HDFC bank

customers regarding the HDFC bank’s product. Advertising and personal selling by Bank
executive are important tools to promote the sale of products of the firm. The use of
promotional activities like contests, free internet and mobile banking, etc. is also significant
to fight competition in the market.

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While that may be simply, banks in today’s scenario have to manage a suite of products,
which makes consistent quality of service delivery extremely critical. Hence, the
measurement of service quality is an important ‘health’ vector for a bank. While we might
think this is critical in consumer banking, this is as critical for corporate customers as well.
The vectors that one measures and monitors might vary across customer groups but the
importance of it does not.

Advertising decisions includes:

 Giving free articles on purchase of the particular commodities

 Conducting contests

 Role of personal selling by the salesmen

 Other sales promotional techniques.

4.PLACE OR PHYSICAL DISTRIBUTION:

Ease of transacting has become basic to HDFC banking – hence withdrawing from
any HDFC bank’s ATM or receiving instant messages on your mobile on any transaction in
your account or daily wealth portfolio movement and stock market updates are offered by any
bank now. These are the times that India needs to be abreast with the global environment in
the banking arena thus convenience at banking has to be given prime importance – thus,
banking truly comes under the ‘service’ segment.

All new service channels are evolving, making things easier for the customer; but the
‘HDFC branch’ continues to be in existence and is a popular banking channel for
transactions. Thus, innovations in branch banking are also evolving. Extended servicing
hours, open on holidays/Sundays, premium servicing lounge are customer expectations in
addition to non-branch delivery channels.

. Place-mix details activities that are necessary to transfer ownership of goods

to customers and to make available goods at right time and place. It includes decision about
the channels of distribution and the place at which the product should be displayed and made
available to the customers. It is the management's responsibility to select and manage trade
channels through which the product will reach the customer at the right time and to develop

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physical distribution system for handling and transporting the product through these channels.

The rural markets are not left behind in service innovation. With the quantum of
market share resting in the rural areas, these segments cannot be ignored and hence both the
government and Zenith Infotech are taking ample initiatives to cater to the rural segment. Be
it biometric ATMs or prepaid cards, now even the rural customer is kept in mind while
developing the products to meet his requirement. Truly, Zenith Infotech are coming up with
innovative products and services purely with rural customers in mind.

PROMOTION

Promotional strategies is an important element in over-all marketing strategy. Product-market

strategy, another key element, focuses upon fitting the product and its features to the target
market's needs and wants. Promotional strategy focuses upon making the product flow
through marketing channels to target markets. Thus, promotion concerns activities performed
in communicating both with members of target markets and the middlemen so as to increase
the chances that the planned sequence of sales(i.e., ownership transfers) takes place smoothly
and efficiently.

OVERALL MARKETING STRATEGY AND MARKETING COMMUNICATIONS:

Figure shows the relationship between overall marketing strategy

and promotion as a means for communications. Management combines the four controllables
—product- market, promotion, distribution, and price strategies—into overall marketing
strategy. The main mission assigned to promotion is to established and maintain
communications with target market segments. Promotion sends messages to target markets
and intervening middlemen through different communications media: advertising, personal
selling, point-of-purchase materials, packing, and other media, such as samples and coupons.
The "messages sent" are part of management's efforts to implement the overall marketing
strategy that management intends will elicit favourable buying responses by middlemen and
target market segments. However, as the figure implies, the "message received" are not
necessarily identical to the message sent,"thus emphasing that successful promotion comes
about only through effective communications!

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COMMUNICATIONS AND PROMOTION:

Communications requires a sender (or source), a message, and a receiver. Unless someone
receives a sender's message, no communication takes place. Clearly middlemen and/or those
in target markets must receive a marketer's promotional message if it is to achieve its
objective. Figure shows the communications mix and message flows in an integrated
marketing program.

1. The Communication Process: The communication process, as figure shows, has five
stages. At the first stage, the source originates the communication. In the second stage—
encoding—the message idea is translated into a language or medium of expression suitable
for transmission. During the third stage, the message flows or moves from the source to the
receiver. In the fourth stage, decoding takes place; in other words, the message is interpreted.
In the fifth stage, the decoded message reaches the receiver.

2. Identifying The Target Audience: The first step in planning communication strategy is to
identify the target audience, those to whom the communication will be directed. The audience
will either be current buyers of the product/service or potential buyers, or they exert influence
on actual or potential buyers. In the case of public relations communications, the audience
may be the general public or some special group, such as lawmakers or government
regulators. Identification of the target audience is the first step in communication because this
affects what is said, how, when, and in what medium.

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3. Source Effect: When communication is direct from sender to receiver, it is called one-step.
When there is an intermediary or third party (frequently a marketing opinion leader), it is
two-step. In either case, in determining the source effect, whether the source is a sender or an
intermediary, one should recognize the effect of the source's reputation upon the reception of
the message. The audience's feeling about the message source ( e.g., as to its credibility)
helps to determine the message's effectiveness in stimulaying astion or changing attitudes. If
the source is prestigious or credible, the message is likely to influence the audiences. For
example, an article in Fortune Magazine about the future role of business is more credible for
most people and, hence, more influential than if published in a daily newspaper. This is
Source Effect. The source may exert as strong an influence as the message itself. The more
familiar and prestigious a source is, the more likely it is to influence the receiver.

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PROMOTION MEDIA:

Personal selling and advertising are two best known forms of promotion. They are the
most important in terms of cost and market impact. Personal Selling is an important part of
most promotional programs, and it is commonly supported by advertising. Other forms of
promotion are less important in terms of total dollars spent but often make important
contributions to successful promotional programs. Individual firms, depending upon their
needs, may allocate large sums to other methods of promotion and depend heavily on them
for success. These methods include point of purchase display, packaging, unpaid promotion,
is difficult to control but frequently effective.

THE PROMOTIONAL APPROPRIATION :

The amount of the total appropriation for promotion depends upon the marketer's
promotional objectives. The cost of reaching promotional objectives, in turn, depend upon the
marketer's choice of forms of promotion and in the costs of using each in the required
intensities. The astute marketer works out the appropriations for personal selling, advertising,
and other forms of promotion in conjuction with each other. If the marketer has arrived at an
optimum promotional miz and strategy, it should be easy to determine the appropriations for
the differenct froms of promotion in the mix.

To clarify this, consider the steps sthat the marketer has to undertake: first, in arriving
at an optimum promotional mix, management sets the objectives it expects each form of
promotion to achieve, next is determining what activities have to be perfomed (and in what
volume) in order to attain the objectives then management extimated how much it will cost to
perform the required volume of activities, thus determining the appropriation for each form of
promotions. Note the important point here- the marketer can determine the optimum
promotional appropriation only it is has found the optimum promotional mix, which of
course, requires planning.

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OBJECTIVES
OF
THE STUDY

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 OBJECTIVES OF THE STUDY

1. To study the various promotional strategy adopted by Zenith Infotech

2. To find out the footage of Zenith Infotech With respect to other players in the market.

3. To observe and understand the practice followed by Zenith Infotech

4. To find out the communication linkages and de-linkages in the organization.

5. To study the activities of each and every department of the organization.

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COMPANY PROFILE

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 COMPANY PROFILE
Zenith Infotech
Zenith Infotech Educational Society a center established for Quality Education,
Training & Consultancy Services for the under-graduate and post-graduate Students.
We helped more than 10,000 Student for their career build up. Our alumni are placed
with top I.T. Companies like Infosys, TCS, Wipro, HCl, Tech mahindra & many
more. We have an experienced team of I.T. professional for software training & job
consultancy.
Zenith is also well known name for Engineering & MCA subject coaching in
Bhopal.We are the first subject coaching of Bhopal for multiple engineering Subjects
in different branches like CSE, EC, Mech, EX & Civil.
Our Services Are :-

 1. Online Examination

We have Pearson Authorised Online Exam Center.

2. Skill Development  Training 

We are Training  partner for M.P. Govt. and Central Govt. for  the  Skill
development training in different Sectors.

3. Career Consultancy

So many eperience & professional persons we have for the Career Consultancy of Students.

4. Placement Consultancy

We have clients like BVG, Teleperformance & many more  for  the Placement Services.

We provide our clients with all the necessary skills required to achieve an edge over others in
the corporate setup.

* We ensure that our clients get the right value from their deals.
* They get to take advantage of the multifarious benefits of outsourcing.
* We help them to grow and moreover help them to manage and sustain that growth.
* We make extensive use of the latest technology in our work for giving best results to the
clients.
* We help you make accurate strategies for the desired results.
* We strive to achieve the best results for us and our clients.

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Accounting Services
* Financial Transactions
* Costing Transactions
* Stock & Stores Transactions

Financial Analysis
* Financial Research & Analysis
* Corporate financial statements
* Analysis of financial statements- monthly, quarterly, and annual
  management reports
* Analysis of Portfolio structures
* Analysis of Prospectus, Offer Documents
* Ad-hoc reports, industry reports (fact books, competitor analysis)
* Creation and maintenance of databases and libraries
* Financial ratio analysis, break-even analysis, NPV and IRR analysis

Delivery Centers
At Zenith Infotech, we provide high-quality services at the fastest turnaround time. This has
been made possible with the high-end technology and the best-of-breed infrastructure that we
have at our centers. We have delivery centers located globally as well as in India. Our
primary delivery center is located in the kandivali, Mumbai. All our Delivery Centers are
stationed at advantageous locations and are easily accessible from Airports and Railway
Stations

Our infrastructure includes

* Internet redundancy
* Network security
* Licensed software
* Real time virus protection
* Regular data back up
* 24/7/365 power availability
* Regular preventive maintenance on operating system & software

Global Delivery Centers

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* India
* USA
* Australia

Overview
Zenith Infotech Research is a global outsourcing provider of business research. We employ a
large team of qualified experts for providing accurate and original content. We provide high
value-added KPO services to leading edge clients worldwide in different fields. Zenith
Infotech's business model revolves around leveraging its base in India to deliver cutting-edge
research services in a scalable and cost-effective model. It works on a partnership model by
complementing and extending the in-house teams of its customers.

Zenith Infotech Research is a global outsourcing provider of business research.

* Large team of qualified experts
* High value-added KPO services

Hosted Web Servers for Financial Services Outsourcing

The server has completely secured monitoring systems permitting Zenith Infotech to achieve
a high level of security for secure financial services outsourcing to India. The secured servers
and firewall are monitored at 24/7 basis. Through weekly patch management, Zenith Infotech
constantly is updating the security software to protect against unauthorized access to our
network systems.

Secure Service Centers for Financial Services Outsourcing

Zenith Infotech has in place a comprehensive service center security policy that is
implemented to ensure secure financial services outsourcing. The security measures adopted
include:

1. Restricted physical access to the processing and server environments.

2. Ensure a paperless system so data can not be removed from the facility.
3. Virtually restrict internet access on the computers used in operation and data retrieval and
transmission is done under the supervision of the project manager. Further, medialess
computers ensure files can not be copied and Outlook has been removed from all PC’s.

We provide high quality data management

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 ORGANISATION STRUCTURE

ORGANISATIONAL STRUCTURE

Chair man

General Manager

Accounts Purchase
Departme Productio
Departme n
nts nt Departme
nt

Manages Manages Manages

Assistant Assistant Assistant

Manages Manages Manages

Offices Offices Supervisor

Assistant Assistant Skilled

Labors

Helpers

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LITERATURE SURVEY

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 LITERATURE SURVEY
Advertising-meaning

Advertising is one of the four methods of promotion, via, sales promotion,

personal selling, public relations and advertising.
Advertising is a non personal communication of a sales message. It is also known
as mass selling. It is not an effective as personal selling but it does facilitate
communication with a large no. Of potential buyers at a time. It consists of non
personal forms of communication conducted through paid under clear sponsorship
.
Definition
“advertising is paid, non personal communication through various media by
business firms.”
According to american marketing association “as any paid form of non-
personal presentation and promotion of ideas, goods and services by an identified
sponsor.”

Evolution of advertising
Age of print:
1441 – johannes gutenberg creates movable type
Mid 1400 s printed hand bills
1472 – first ad in english “ pyes of salisburg”
1600’s -- news papers
1622 – 1st ad in london’s weekly relations news.
1655 – first use of the term advertising
1704 – 1st us newspapers to carry ads
1841 – volacy planner becomes first ad sales agent (boston)
Industrial revolution and emergence of consumer society:
1850’s – first branded items
1864 – j. Walter thompson forms agency.
1872 – 1st ward’s illustrated mail order catalog.
1879 – proctor & gamble introduces ivory soap.
1880 – john powers pioneers copywriting focuses on news.
1888 – george eastman creates 1st kodak camera.
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 1890’s – loud and thomas agency forms.
Modern advertising era:
1904 – 1940’s ---- albert lasker pioneers “ reason – why ” copy.
1905 – john e. Kennedy describes advertising as “salesmanship in print”
1905 – 1930’s -- claude hopkins develops scientific mail- under copy testing.
1906 – pure food and drug act.
1908 – beginners of celebrity endorsements – pepsi uses ad famed race car driver
barney old field.
1912 – “truth in advertising” movement
1914 – ftc act passed
Age of agencies:
1917 – american association of advertising agencies formed.
1918 – stanley & helen person develop account services, brand names and status
appeals.
1923 – young & \ \\\ agency formed
1930’s – radio advertising surpasses magazines as leading ad medium.
1932 – john caples applies scientific methods to mail – order copy and head lines
1940 – clyde bedell develops “ selling stratagems”
The creative era:
1950 – tv become important ad medium.
1950’s – posssee peevers develops “unique selling proposition”
1960’s leo bursnett creates brand icons and inherent drama.
Accountability era:
1960’s – bill bernbach focuses on the art of persuasion.
1980’s – 1990’s – mergers & globalization
1990’s – 200’s imc, niche marketing, growth of interactive technology,
relationship marketing, mass customization.
2001 – ad takes on new responsibilities

Nature of advertising
Element of marketing mix: - price, product, promotion and physical distribution.
Promotion mix: - personal selling, sales promotion, publicity and advertising.
Mass communication: - radio, television, news papers, bill boards and magazines etc,
Messages: - it motivates the customers.
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Paid: - charges for the ad agency.
Persuasive: - information passing.
Sponsor: - ad is sponsored by some identifies advertiser, disclosing ideas, messages and
information.

Scope of advertising
Messages- message of the product.
Media- large no of media with those advantages and disadvantages cost and benefits.
Merchandise - demonstration of the attributes of the product.
Advertising functions- demand, promotion, image of the organization.
Advertiser-he helps the peoples to understand the product.
Objectives-increase sales, awareness, interest.

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The 5 players of advertising

The advertiser- person of organization - song writers

The ad agency - printers

The media – channels of communication - market merchants

Vendors: direct- mail production houses

Free lance copy writers - telemarketers

Graphic artists - public relation consultant

The target audience - photographers

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Classification and types of advertising
Product – related advertising
Pioneering advertising
Competitive advertising
Retentive advertising
Public service advertising
Functional classificaiton
Advertising based on demand influence level.
Primary demand (stimulation)
Selective demand (stimulation)
Institutional advertising
Product advertising
Informative product advertising
Persuasive product advertising
Reminder-oriented product advertising
Advertising based on product life cycle
Consumer advertising
Industrial advertising
Trade advertising
Retail advertising
Wholesale advertising
Advertising based on area of operation
National advertising
Local advertising
Regional advertising
Advertising according to medium utilized
1. Product – related advertising
It is concerned with conveying information about and selling a product or service.
Product advertising is of three types, viz,
A. Pioneering advertising
B. Competitive advertising
C. Retentive advertising

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Pioneering advertising:
This type of advertising is used in the introductory stages in the life cycle of a product. It
is concerned with developing a “primary” demand. It conveys information about, and
selling a product category rather than a specific brand. For example, the initial
advertisement for black – and – white television and colour television. Such
advertisements appeal to the consumer’s emotions and rational motives.
Ii. Competitive advertising:
It is useful when the product has reached the market-growth and especially the market-
maturity stage. It stimulates “selective” demand. It seeks to sell aspecific brand rather
than a general product category. It is of two types: direct type: it seeks to stimulate
immediate buying action. Indirect type: it attempts to pinpoint the virtues of the product
in the expectation that the consumer’s action will be affected by it when he is ready to
buy.
Example: airline advertising.
Air india attempts to bid for the consumer’s patronage either immediately - direct action-
in which case, it provides prices, time tables and phone numbers onwhich the customer

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may call for reservations; or eventually – indirect action – when it suggests that you
mention air india’s name when talking to your travel agent.
Iii. Retentive advertising:
This may be useful when the product has achieved a favourable status in the market – that
is, maturity or declining stage. Generally in such times, the advertiser wants to keep his
product’s name before the public. A much softer selling approach is used, or only the
name may be mentioned in “reminder” type advertising.
2. Public service advertising
This is directed at the social welfare of a community or a nation. The effectiveness of
product service advertisements may be measured in terms of the goodwill they generate
in favour of the sponsoring organization. Advertisements on not mixing drinking and
driving are a good example of public service advertising. In this type of advertising, the
objective is to put across a message intended to change attitudes or behaviour and benefit
the public at large.
3. Functional classification
Advertising may be classified according to the functions which it is intended to fulfill.
(i) advertising may be used to stimulate either the primary demand or the selective
demand.
(ii) it may promote either the brand or the firm selling that brand.
(iii) it may try to cause indirect action or direct action.
I. Advertising based on demand influence level.
A. Primary demand stimulation
Primary demand is demand for the product or service rather than for a particular brand. It
is intended to affect the demand for a type of product, and not the brand of that product.
Some advertise to stimulate primary demand. When a product is new, primary demand
stimulation is appropriate. At this time, the marketer must inform consumers of the
existence of the new item and convince them of the benefits flowing from its use. When
primary demand has been
Stimulated and competitors have entered the market, the advertising strategy may be to
stimulate the selective demand.
B. Selective demand stimulation
This demand is for a particular brand such as charminar cigarettes, surf detergent powder,
or vimal fabrics. To establish a differential advantage and to acquire an acceptable sort of
market, selective demand advertising is attempted. It is not to stimulate the demand for
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the product or service. The advertiser attempts to differentiate his brand and to increase
the total amount of consumption of that product. Competitive advertising stimulates
selective demand. It may be of either the direct or the indirect type.
Ii. Institutional advertising
Institutional advertising may be formative, persuasive or reminder oriented
In character. Institutional advertising is used extensively during periods of product
Shortages in order to keep the name of the company before the public. It aims at
Building for a firm a positive public image in the eyes of shareholders, employees,
Suppliers, legislators, or the general public. This sells only the name and prestige of
The company. This type of advertising is used frequently by large companies whose
Products are well known. Hmt or dcm, for example, does considerable
Institutional advertising of its name, emphasizing the quality and research behind its
Products.
Institutional advertisements are at consumers or focus them upon other groups, such as
voters, government officials, suppliers, financial institutions, etc. If it is effective, the
target groups will respond with goodwill towards, and confidence in the sponsor. It is also
a useful method or introducing sales persons and new product to consumers. It does not
attempt to sell a particular product; it benefits the organization as a whole.
It notifies the consumers that the company is a responsible business entity and is patriotic;
that its management takes ecologically responsible action, is an affair- motive-action
employer, supports the socialistic pattern of society or provides employment
opportunities in the community.
When indian oil advertisements describe the company’s general activities, such as public
service work, this may be referred to as institutional advertising because it is intended to
build an overall favorable attitude towards the company and its family of products. Hmt
once told the story of the small-scale industries supplying it with component parts, thus
indicating how it aided the development of ancillary industries.
Iii. Product advertising
Most advertising is product advertising, designed to promote the sale or reputation of a
particular product or service that the organization sells. Indane’s cooking gas is a case in
point. The marketer may use such promotion to generate exposure attention,
comprehension, attitude change or action for an offering. It deals with the non-personal
selling of a particular good or service. It is of three types as follows:-
A. Informative product advertising
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B. Persuasive product advertising
C. Reminder-oriented product advertising
A. Informative product advertising:
This form of advertising tends to characterize the promotion of any new type of product
to develop an initial demand. It is usually done in the introductory stages of the product
life cycle. It was the original approach to advertising.
B. Persuasive product advertising:
Persuasive product advertising is to develop demand for a particular product or brand. It
is a type of promotion used in the growth period and, to some extent, in the maturity
period of the product life cycle.

C. Reminder-oriented product advertising:

The goal of this type of advertising is to reinforce previous promotional activity by
keeping the brand name in front of the public. It is used in the maturity period as well as
throughout the declining phase of the product life cycle.

4. Advertising based on product life cycle

A. Consumer advertising
B. Industrial advertising

A. Consumer advertising
Most of the consumer goods producers engage in consumer product advertising.
Marketers of pharmaceuticals, cosmetics, scooters, detergents and soaps, cigarettes and
alcoholic beverages are examples. Baring a few, all these products are all package goods
that the consumer will often buy during the year. There is a heavy competition among the
advertisers to establish an advantage for their particular brand.
B. Industrial advertising
Industrial executives have little confidence in advertising. They rely on this form of
promotion merely out of fear that their competitors may benefit if they stop their
advertising efforts. The task of the industrial advertiser is complicated by the multiple
buying influence characteristics like, the derived demand, etc. The objectives vary
according to the firm and the situation. They are:
to inform,
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to bring in orders,
to induce inquiries,
to get the advertiser’s name on the buyer’s list of sources,
to provide support for the salesman,
to reduce selling costs,
to help get items in the news column of a publication,
to establish recognition for the firm or its product,
to motivate distributors,
to recognition for the firm or its products,
to motivate distributors, to create or change a company’s image,
to create or change a buyer’s attitude, and
The basic appeals tend to increase the rupee profits of the buyer or help in achieving his
non-monetary objectives. Trade journals are the media most generally used followed by
catalogues, direct mail communication, exhibits, and general management publications.
Advertising agencies are much less useful in industrial advertising.

5. Trade advertising
A. Retail advertising
B. Wholesale advertising

A. Retail advertising
This may be defined as “covering all advertising by the stores that sell goods directly to
the consuming public. It includes, also advertising by establishments that sell services to
the public, such as beauty shops, petrol pumps and banks.” Advertising agencies are
rarely used. The store personnel are usually given this responsibility as an added task to
be performed, together with their normal functions. The result is that advertising is often
relegated to a secondary position in a retail store. One aspect of retail advertising is co-
operative advertising. It refers to advertising costs between retailers and manufacturers.
From the retailer’s point of view, co-operative advertising permits a store to secure
additional advertising that would not otherwise have been available.
B.wholesale advertising
Wholesalers are, generally, not advertising minded, either for themselves or for their
suppliers. They would benefit from adopting some of the image-making techniques used
by retailers – the need for developing an overall promotional strategy. They also need to
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make a greater use of supplier promotion materials and programmes in a way
advantageous to them.
6. Advertising based on area of operation
It is classified as follow:
A. National advertising
B. Regional advertising
C. Local advertising
A. National advertising
It is practiced by many firms in our country. It encourages the consumer to buy their
product wherever they are sold. Most national advertisements concentrate on the overall
image and desirability of the product. The famous national advertisers are:
Hindustan levers, dcm, itc, jay engineering, tisco
B. Regional advertising
It is geographical alternative for organizations. For example, amrit vanaspati based in
rajpura claims to be the leading hydrogenated oil producer in the punjab. But, until
recently, it mainly confined itself to one of the vegetable oil brands distribution to
malihabad district (in u.p. Near lucknow).
C. Local advertising
It is generally done by retailers rather than manufacturers. These advertisements save the
customer time and money by passing along specific information about products, prices,
location, and so on. Retailer advertisements usually provide specific goods sales during
weekends in various sectors.
7. Advertising according to medium
The most common classification of advertising is by the medium used. For example: tv,
radio, magazine, outdoor, business periodical, newspaper and direct mail advertising.
This classification is so common in use that it is mentioned here only for the sake of
completeness.

Economic implications of advertisements

Effect on the value of products or services: advertising sets off a chain reaction of
economic events. In a free-market system, consumers have the option of choosing the
desired value in the products or services they buy. If price is more important to

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consumers, they have options of buying less expensive alternatives. Others looking for
luxury and status may choose more fancy and expensive alternatives. Advertising
contributes to the self-interest of both consumers and advertisers by adding value to
products and services in a free-market system. Further it encourages competition, which
adds to serve the consumer’s self-interest.

Effect on prices: advertising also adds cost and affects prices. This means that if
companies stop this expensive advertising, products would cost less and be available at
lower prices. This is a major area of continuing debate among economists, advertisers
consumer advocates and policy makers. However, this view is not totally correct. While
some advertised products do cost more than the unadvertised products, and the costs are
at least partly borne by consumers, the opposite is true. Advertising may actually help
lower the overall cost of a product and keep down the prices because of economies of
scale in production.

Effect on consumer demand and consumer choice: it is generally agreed that the effect
of advertising and other promotions is an increase in aggregate consumption but to what
extent it effects consumption, is a highly debatable issue. Besides advertising, there are
other important forces such as technological advances, level of education, increases in
population, level of income, changing lifestyles etc. That exert a powerful influence on
aggregate consumption. Advertising can help stimulate demand of new products by
communicating relevant information and facts. Advertising restricts the choice of
alternatives to a few heavily advertised brands.

Effects of competition: economists are critical of advertising because it creates a ‘barrier

to entry’ of smaller firms, which have fewer resources, and cannot match the power of
large firms with huge advertising budgets. High costs may inhibit their entry and brands
of large firms probably benefit greatly from the barrier. There is a possible that adverting
may discourage competition.

Social implications of advertisements

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It is generally agreed that advertising exerts a powerful social influence and is criticized
for encouraging materialism in society.

Advertising is blamed for manipulating consumers to buy things for which they have no
real need, depicting stereotypes and controlling the media.

Materialism is the tendency to accord undue importance to material interests and this
tendency perhaps, lessens the importance of freedom, love and intellectual pursuits of
society, which are non-material.

People from many countries and cultures believe that materialism tends to be negatively
related to happiness and hence is considered undesirable.

Advertisements should not attempt to persuade consumers by playing on their emotions,

anxieties and psychological needs, such as self-esteem, status, being attractive, etc, thus
fostering discontent and exploiting them to purchase products and services that they do
not need.

Stereotyping in advertising: stereotyping ignores differences among individuals and

presents a group in an unvarying pattern. Critics often point out that advertising
perpetuates stereotyping of women. The charge is that advertising has failed to portray
the changing role of women in society. Visuals and copies of ads present stereotypical
images of indian women in settings such as family illness, children, cooking, neighbours
etc. Or they are shown as dependent on men, subservient, less intelligent etc. They are
also shown as decorative objects or sexually provocative figures. There is perceptible
improvement in this regard as advertisers have started to recognize the role of working
women in family affairs and decision making.

Ethical implications of advertisements

Ethics are moral principles and values that govern the actions and decisions of an
individual or group.

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Many laws and regulations are put into force that determines what is permissible in
advertising.

Cigarette smoking, for example, has been shown to be associated with high levels of lung
cancer and other respiratory tract diseases and many people would consider cigarette
advertising as unethical.

Sex appeal and / or nudity used simply to gain consumers’ attention and not even
appropriate to the product or service being advertised is in poor taste.

The primary criticism of advertising is that it is misleading and deceives consumers.

“puffery” is advertising that praises the product or service to be sold with subjective
opinions, exaggerations or superlatives without stating any facts and, for this, advertisers
have a right. This further complicates the issue of deception.

In india, advertising standards council of india (asci) enforces the ethical code for
advertisers. The council is a non-profit organization set up by 43 founder members and
has developed a regulating code. It proposes to adjudicate on whether an advertisement is
offensive or not. The council’s decisions are binding on its members and in case of any
disputes; it proposes to deal with the government.

Asci guidelines are as follows:

To ensure the truthfulness and honesty of representation and claims made by the
advertisements and to safeguard against misleading advertising.
To ensure that advertisements are not offensive to generally accepted standards of
public decency.
To safeguard against indiscriminate use of advertising for promotion of products,
which are regarded as hazardous to society or to individuals to a degree or of a
type, which is unacceptable to society at large.
To ensure that advertisements observe fairness in competition so that the
consumers’ need to be informed on choices in the market-place and the canons of
generally accepted competitive behaviour in business are both served.
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Advertising principles of american advertising federation

Truth – advertising shall reveal the truth, and shall reveal significant facts, the omission
of which would mislead.

Substantiation – advertising claims shall be substantiated by evidence in possession of

the advertiser and the advertising agency prior to making such claims.

Comparisons – advertising shall refrain from making false, misleading, or

unsubstantiated statements or claims about a competitor or his products or services.

Bail advertising – advertising shall not offer products or services for sale unless such
offer constitutes a bona fide effort to sell the advertised products or services and is not a
device to switch consumers to other goods or service, usually higher priced.

Guarantees and warranties – advertising of guarantees and warranties shall be explicit,

with sufficient information to apprise consumers of their principal terms and limitations
or, when space or time restrictions preclude such disclosure, the advertisement shall
clearly reveal where the full text of the guarantee or warranty can be examined before
purchase.

Price claims – advertising shall avoid price claims that are false or misleading, or savings
claims that do not offer provable savings.

Testimonials – advertising containing testimonials shall be limited to those of competent

witnesses who are reflecting a real and honest opinion or experience.

Taste and decency – advertising shall be free of statements, illustrations, or implications

that are offensive to good taste or public decency.

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Ad agency
Ad agency is an independent organization that provides one or more specialized
advertising and promotion related services to assist companies in developing, preparing,
and executing their advertising and other promotion programmes. Large and medium size
agencies used ad agencies.
Definition
“an ad agency is a service organization that specializes in planning and executing
advertising programs for its clients”
Types of ad agency
Full service agency: it offers a full range of marketing, communication, and promotion
services, including planning; creating and producing the ads performing research. Various
departments in full service agency.
Account services
Marketing services
Creative services
Management and finance – organization and structure
In house agencies:
It is an ad agency that is setup, owned and operated by the advertisers.
Creative boutiques:
It is an agency that provides only creative services.
Media buying services:
Media buying services are independent companies that specializes in the buying
of media, particularly radio and television time.

Agency compensation
Commission from media 15%
Fee, cost and incentive based system.
Fee arrangement
Fixed fee method
Fee commission combination
Cost plus agreement-cost + profit
Incentive based compensation sales on market store.

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 Percentage charges
Why agencies lose clients
Poor performance on service
Poor communication
Unrealistic demand by the client
Personality conflicts
Personnel charges
Changes in the size of the client on agency
Conflicts of interests
Changes in the clients corporate on marketing strategy declining sales
Conflicting compensation philosophies.
Changes in policies.
How agencies gain clients
Referrals Objective and unbiased viewpoints to the
Solicitations solution of advertising and other
Presentations Marketing problems.
Public relations 5. The discounts that the media offer to

Image and reputation agencies are also available to advertisers.

ADVANTAGE OF USING AGENCIES This is a strong stimulus to them to use an

1. The marketer gains a number of benefits agency, for the media cost is not much

by employing agencies. An agency Affected thereby.

6. The company normally does not have as
Generally has an invaluable experience in
many types of specialists as a large or
dealing with various advertising and
Medium-sized advertising agency has
Marketing issues.
because an agency can spread the costs or its
2. The lessons which agency learned in
Staff over many clients. It can do more for
working with other clients are useful
the same amount of money.
inputs
7. The company can also get an objective,
For the marketer.
outside viewpoint from an agency,
3. An agency may employ specialists in the
Assuming that the agency representatives
various areas of preparation and
are not acting as “yes man” in order to
Implementation of advertising plans and
Keep the advertiser’s account.
strategies.
8. A related point is that the company can
4. The personnel are not members of the
benefit from the agency’s experience
marketer’s management team. They bring

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With many other products and clients.
9. Another advantage is that agency feels a
greater pressure than the company’s
Own department to produce effective results.
The relations between an agency and a
Client are very easy to terminate; but it is
difficult to get rid of an ineffective
Advertising department.
10. The manner in which agencies are
compensated, the use of an agency may not
Cost the advertiser a single paisa.

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SELECTING AN AGENCY
While selecting an advertising agency, the importance of compatibility should be borne in
mind. An agency takes a long time to grasp the problems and accumulate the facts that
are necessary for the smooth functioning of a client. Though this investment period is
long, it pays rich dividends. Therefore, an agency
Should not be frequently changed. Here are some points that can help the advertiser to:
(i) choose an agency ; and
(ii) get the best out of an agency.
(i) choosing an agency
The agency should be able to think independently on various problems, and not solve
them by pre-conceived notions which it is unwilling to change. The agency should have
experience in selling goods and ideas. It should be able to bring in more results than
anticipated. The company should be financially sound and should be able to cover both
local and national advertising campaigns.
The size of the agency should not be seriously taken into account. A big agency is not
necessarily a better than a small agency.
The agency should not be one that hesitates to correct the advertiser if it feels that he is
wrong. The agency should be able to use both research and brains to solve problems.
An agency that plans to make a profit on an account should be chosen, rather than one
that maintains that it will work on a no-profit-no-loss basis.
Advertising campaign management
“managing an advertising campaign is the process of preparing and
integrating a specific advertising program in conjunction with the overall
imc message”
“an ad campaign includes a series of ads placed in various media, that are
designed to meet objectives and are based on an analysis of marketing and
communication situations”

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Steps / process involved in ad campaign

SETTING ADVERTISING OBJECTIVES

Advertising is a method of communication with a specified objective. The Objectives

of advertising as explained before are grouped as sales objectives (measured in terms
of increase in sales, increase in market share and return on investment) and
communication objectives.

Sales as an Advertising Objective

 Sales are a convenient and really attractive advertising objective for many
managers.

 In case of sales as the advertising objectives, it would be quite simple to

evaluate the results of the ad campaign.

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  Many experts recognize that advertising creates delayed or ‘carryover effect’
and no matter how much money is spent on advertising, it may not necessarily
have an immediate impact on sales.
 Sales, as an advertising objective, offer little guidance to creative and media
people working on the account.

 In spite of problems that sales objectives pose, there are certain situations
when sales objectives can be appropriate.

 Some direct-action advertising attempts to induce a quick response from the

members of target audience such as ads offering some kind of incentive, or ads
announcing contests, or encouraging prospects to place orders by phone or
through the Internet.

Communications Objectives

 Advertising communications objective can be put in a pyramid form.

 First the lower level objectives, such as awareness, knowledge or

comprehension are accomplished.

 Subsequent objectives may focus on moving the prospects to higher levels in

the pyramid to elicit desired behavioural responses such as associating feelings
with the brand, trial, or regular use etc.

 It is easier to accomplish ad objectives located at the base of the pyramid than

the ones towards the top.

 Irrespective of the fact whether the brand is new or established, the pyramid
can be used to determine appropriate advertising objectives.

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Communication-effect Pyramid

5%
Repurchase/
Regulare use

10% Trial

20% Preference

40% Liking

60% Knowledge / Comprehension

80% Awareness

The communication objectives of advertising can be grouped in to the following:

• Building awareness (informing): The first task of any advertising is to make the
audience appreciate that the product or service exists and to explain exactly what it is.

• Creating favorable attitudes (persuasion). The next stage and the one that
preoccupies most advertisers, is to crate the favorable attitude to the brand, which will
eventually lead the consumers to switch their purchasing pattern.

52
• Maintenance of loyalty (reinforcement) One of the tasks which is often forgotten
is that of maintaining loyalty of existing customers who will almost always represent
the main source of future sales.

 There are general objectives of advertising that covers goals like encouraging
increased consumption of a product by current users, generating more sales
leads, increasing brand awareness, increasing repeat purchases and supporting
the personal selling efforts. Some of the broad advertising goals are explained
as per the following:

1. Launch of New Products and Services: In a saturated market, the introduction

of new products and brands can give the seller a tremendous opportunity for
increasing his sales. In the case of innovative products (totally new to the
market) such as Laptop Computers, a great deal of advertising has to be done
over an extended period of time to make people aware of “What the product
is” and What it does” and “How the customers would find it useful”. In
addition, the advertisement also carries information about the availability of
the product and facilities for demonstration/trial etc. Similarly new brands of
existing product categories are also promoted quite aggressively. Two recent
examples are the launching of “Pepsi Blue” soft drinks during the world cup
and launch of “Mountain Dew” in subsequent period.

2. Expansion of the Market to Include the New Users: Advertising can be used to
tap a new segment of the market, hitherto left unexplored. For example TV and
Video Camera manufacturers who have been concentrating on domestic users and
professionals can direct their advertising to the government institutions and large
organization for closed circuit TV networks, security systems and educational
purposes. Another way of expanding the consumer base is to promote new uses of
the product. For example, Johnson’s baby oil and baby cream were originally
targeted to mothers. The same products have now been directed towards the adult
market for their personal use. Similarly, Milkmaid was originally promoted as a
substitute for milk. It is now being advertised as an ingredient for making sweet
dishes and also as a sandwich spread for children.

53
3. Announcement of a Product Modification: For such advertising, generally, the
terms “new”, “improved”, “Excel” etc. Is used as prefixes to the brand name. For
example, “Surf Excel” gives the impression of an advanced detergent powder,
although there may be no tangible difference between the earlier brand and the
new one. Sometimes the customer as a modified product e.g. “a new refill pack
for might perceive a minor packaging change Nescafe”

4. Announcement of a Special Offer: Because of competition, slack season,

declining Sales, etc, advertising is used to make a special offer. For example,
Colgate Dental Cream campaign about 20% extra was to increase volumes
through a sales promotion campaign. Hotels offer special rates during off- season.
Similarly many products like room heaters, fans, air-conditioners, etc, offer off-
seasons discounts to promote sales.

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5. To Announce Location of Stockiest and Dealers: To support dealers, to
encourage selling of stocks and to urge action on the part of readers, space may be
taken to list the names and addresses of stockiest and dealers.

6. To Educate Customers: Advertisement of this type is “informative” rather than

persuasive”. This technique can be used to show new users for a well-established
product. It can also be used to educate the people about an improved product e.g.
Pearl Pad odor free jars and bottles. Sometimes societal advertising is used to
educate people on the usefulness or harmful effects of certain products. For
example, Campaigns against unsafe sex and aids are sponsored by government
and voluntary agencies. Similarly, advertisements discourage the consumption of
liquor and drugs.

7. Reminder Campaigns: This type of advertising is useful for products, which have
a high rate of repeat purchase, or those products, which are bought frequently e.g.
Blades, cigarettes, soft drinks, etc. The advertisement is aimed at remaining the
customer to ask X for the same brand again. The campaign of “Dil Maange More”
during television breaks of cricket matches is to have a top of mind recall.

8. To Sought Dealer Cooperation and Motivation: A successful retail trader

depends upon quick turnover so that his capital can be reused as many times as
possible. Dealer support is critical, particularly for those who have limited shelf
space for a wide variety of products. Advertisers send “display” material to
dealers for their shops, apart from helping the retailer with local advertising.

9. To Create Brand Preference: This type of advertising does two things: (I) it
creates a brand image or personality (ii) It tells the target audience why Brand X is
better than Brand Y. In this type of advertisement, the product or brand acquires a
‘personality’ associated with the user, which gives the brand a distinctive ‘image’.
The second type of advertising also known as ‘comparative advertising’, takes the
form of comparison between two brands and proves why one brand is superior.

55
10. Few other objectives: Advertising also helps to boost the morale of sales people in
the company. It pleases sales people to see large advertisements of their company
and its products, and they often boast about it. Other uses of advertising could
include recruiting staff and attracting investors through “Public Issue”
advertisements announcing the allotment of shares etc. You must understand that
an Advertising Objective is a Communication Objective "An Advertising goal is
a specific communication task, to be accomplished among a defined audience to a
given degree in a given period of time".

AD. CAMPAIGNS

 According to Dunn and Barban “ An advertising campaign includes a series of

ads, placed in various media, that are designed to meet objectives and are
based on an analysis of marketing and communication situations.”

 The ad campaign is guided by the promotion and advertising plans which

evolve from marketing objectives and strategy.

 An advertising campaign includes seven essential steps:

o Appraisal of advertising opportunity
o Market analysis
o Setting advertising objectives
o Setting budget and necessary control systems
o Determining media and creative strategy
o Create ads, pretest and release ads
o Evaluate final results (post-testing)

 The steps are not necessarily sequential and are individual activities; in
practice, advertises undertake two or more of them simultaneously.

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Planning an Advertising Campaign

1. Appraisal of Advertising Opportunity – the marketer must determine

whether advertising is suitable in his particular marketing situation.
a. Presence of position primary demand
b. Good chances of product differentiation
c. Products have hidden or not readily noticeable qualities.
d. Presence of powerful emotional buying motives
e. Availability sufficient funds

2. Analyzing and defining the target market – good advertising starts with a
clear understanding of marketing goals based on a thorough market analysis.
a. Who buys the product
b. What do they really buy
c. When do they buy
d. How do they use the product

3. Setting Advertising Objectives – set objectives for an advertising campaign

and also for each ad in each medium used.

4. Determining the Advertising Budget – the budget controls all proposed

expenditures by fixing a limit. The advertising budget is basically a plan to
allocate financial resources to advertising for future operations.

5. Deciding Media and Creative Strategy – involves decisions about media and
creation of advertisements. Media plan is developed simultaneously with
creative plan. Creative strategy concerns what message to deliver to the
audience for accomplishing the objectives. Deciding the central theme, idea,
image, or position is a critical part of the creative process which becomes the
cornerstone of all individual ads that constitute the campaign.

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 6. Creating Ads, pre-test and Release Ads – pretesting advertising strategy and
execution, various techniques such as market tests, focus groups, surveys,
compute simulation tests, etc. Used before the ads are placed in the media.

7. Evaluating the final Results (post-testing) – is done to evaluate the final

results of the ad campaign. These results are concerned with measuring the
campaigns effectiveness.

Three Phases of Campaign Creation

There are three phases involved in the creation of any campaign.

(i) Strategy Development Phase,

(ii) The Briefing Phase and
(iii) The Creative Phase

.I. Strategy Development Phase

 This phase decides the objectives and contents of communication. It
analyses the research data and decides positioning of a brand. The strategy
formulation is in modern day's agencies a team effort. The creative persons
form a part of this team not as creative persons but as a mind. There are brain-
storming sessions. The team throws up the ideas. These ideas ultimately make
up the strategy. The brilliant in the team pick up one or two ideas from the
total ideas generated and develop them. Our strategy should give us a
competitive edge.

 The strategy formulation leads to an advertising brief. If you want to

catch fish, you have to think like a fish. If you want to catch a consumer, you
have to think like a consumer. That's the first principle. What most companies
do is they think like themselves. They spend all their time with themselves'
(AI Ries and jacktrout).

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II. Advertising Brief to the Creative
 As a matter of fact, the client has to brief the agency about the strategy.
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 the product needs. The
strategy should be communicated with clarity. The strategist should be a good
motivator for the creative team.

 Proper briefing is going halfway as far as creativity is concerned. Bad

brief to the creative team results into bad work. Good brief ensures good work.
Within the creative team, the copywriter and visualiser work together and it is
difficult to attribute the final product to either of them. Creative campaigns are
creative due to a good brief. Great briefs inspire great work. Briefs should
have clarity and single-minded objective. They should aim at a target person.
The idea is to have the desired response. All briefs must suggest a benefit or a
product plus.

III. The Creative Phase

 Here the lateral thinkers come on the scene. They leap from a single
unidirectional idea of the strategist to an advertising idea that will add value to
the product/brand. The creative persons are supposed to be right-brained -
lateral thinkers, irrational thinkers as against the accounts director who is left
brained, i.e., logical. They make connections that had not existed before. They
rearrange the order of things. They create abruptions in the consumer mind.
There should be a beautiful marriage between the strategy and the lateral
thinking by the creative people.

 The creative director's post has become a more responsible one. He

does not remain content with a clever copy or stimulating visuals. He is
required to understand the product and its market completely. He is now an
overall ad man, an all-rounder. He participates in research and has active role
in positioning.

Advertising planning framework

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Plans are nothing, planning is everything.
- dwight d. Eisenhower
The advertising management is mainly concerned with planning and
Decision making. The advertising manager will be involved in the development,
implementation, and overall management of an advertising plan. The development of an
advertising plan essentially requires the generation and specification of
Alternatives. Decision making involves choosing from among the alternatives. The
alternatives can be various levels of expenditure, different kinds of objectives or strategy
possibilities, and kinds of options with copy creation and media choices. Thus, the
essence of planning is to find out the feasible alternatives and reduce them
To decisions. An advertising plan reflects the planning and decision – making process and
the decisions that have been arrived at in a particular product and market situation.
Planning framework
Advertising planning and decision making depends on internal and external factors.
Internal factors are situation analysis, the marketing program, and the advertising plan.
The three legs of advertising planning concern are the
objective setting and target market identification,
message strategy and tactics, and
media strategy and tactics.
The advertising plan should be developed in response to a situation analysis, based on
research. Once developed, the advertising plan has to be implemented as an advertising
campaign, in the context of social and legal constraints and with the involvement of
various facilitating agencies. Let us discuss these factors one after another.
1. Situation analysis
It involves an analysis of all important factors operating in a particular situation. This
means that new research studies will be undertaken on company history and experience.
At&t, for example, developed a new strategy for its long-distance telephone services –
based on five year of research. The research encompassed market segmentation studies,
concept testing, and a field experiment. The field experiment increased on testing a new
advertising campaign called “cost of visit”. An existing “reach out” campaign although
successful, did not appear to get through to a large group of people who had reasons to
call but were limiting their calls because of cost. Research based on annual surveys of
3,000 residential
Telephone users showed that most did not know the cost of a long-distance call or that it
was possible to make less expensive calls in off-peak periods. Five copy alternatives were

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subsequently developed and tested, from which “cost of visit” was chosen. This campaign
was credited with persuading customers to call during times that were both cheaper for
them and more profitable for at&t
And, overall, was more effective that the “reach out” campaign. One estimate was that by
switching 530 million in advertising from “reach out” to “cost of visit”, an incremental
gain in revenue of $22 million would result in the first year and would top $100 million
over five years. This example highlights that a complete situation analysis will cover all
marketing components and involve finding answers to many questions about the nature
and extent of demand, competition, environmental factors, product, costs, distribution,
and the skills and financial resources of the from.
2. Consumer and market analysis.
Situation analysis begins by looking at the aggregate market for the product service, or
cause being advertised, the size of the market, its growth rate, seasonality, geographical
distribution. Whereas consumer and market analysis is concerned with the following
factors:
* nature of demand
- how do buyers (consumer and industrial) currently go about buying existing products or
services?
- can the market be meaningfully segmented or broken into several homogeneous
Groups with in respect to “what they want” and “how they buy”?
* extent of demand
- what is the size of the market (units and dollars) now, and what will the future hold?
- what are the current market shares, and what are the selective demand trends?
- is it best to analyze the market on an aggregate or on a segmented basis?
* name of competition
- what is the present and future structure of competition?
- what are the current marketing programs of established competitors?
- why are they successful of unsuccessful?
- is there is opportunity for another competitor? Why?
- what are the anticipated retaliatory moves of competitors?
- can they neutralize different marketing programs we might develop?
* environmental climate
- what are the relevant social, political, economic, and technological trends?
- how do you evaluate these trends? Do they represent opportunities or problem?
* stage of product life cycle

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- in what stage of the life cycle is the product category?
- what market characteristics support your stage-of –life-cycle evaluation?
* cost structure of the industry
- what is the amount and composition of the marginal or additional cost of supplying
increased output?
Skills of the firm
- do we have the skills and experience to perform the functions necessary to be in the
business?
- how do our skills compare with those of competitors?
* financial resources of the firm
- do we have the funds to support an effective marketing program?
- where are the funds coming from, and when will they be available?
3. Competitive analysis:
Advertising planning and decision making are affected by competition and the
competitive situation facing the advertiser. Competition is such a pervasive factor that it
will occur as a consideration in all phases of the advertising planning and decision
making process. It should include an analysis of what current share the brand now has,
what shares its competitors have, what share of a market is possible, from which
competitors the increased share of a market is possible? The planner also has to be aware
of the relative strengths and weaknesses of the different competing companies and their
objectives in the product category. It is important to look at competition as a precursor to
the planning process.

DAGMAR APPROACH

 Russel H Colley (1961) prepared a report for the Association of National

Advertisers titled “Defining Advertising Goals for Measured Advertising
Results” DAGMAR.

 He developed a model for setting advertising objectives and measuring the

results of an ad campaign.

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 According to this model, communications effects are the logical basis for
setting advertising objectives and goals against which results should be
measured.

 According to the DAGMAR approach, advertising objectives involve a

communications task that is specific and measurable.

 Colley proposed that communications objectives be based on a hierarchial

model with four stages:

o Awareness: involves making target audience aware of the existence of

brand or company.
o Comprehension: develop an understanding among audience of what
the product is and what it would do for them.
o Conviction: create a mental disposition among target audience
members to buy the product.
o Action: to motivate the target audience to purchase the product or
service.
 One important contribution of dagmar was its ability to clarify what
consititutes a good objective.
 According to colley, the advertising objectives should have the following
features:

o Stated in terms of concrete and measurable communication tasks.

o Specify a target audience.
o Indicate a benchmark or standard starting point and the degree of
change sought, and
o Specify a time period for accomplishing the objective or objectives.

 ADVERTISING INDUSTRY
 THE ADVERTISING INDUSTRY CONSISTS OF THREE PRINCIPAL GROUPS:
 (A) SPONSORS;
 (B) MEDIA ; AND

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  (C) ADVERTISING AGENCIES OR ADVERTISING DEPARTMENTS.
 ADVERTISING AGENCIES ARE OF TWO BASIC TYPES, VIZ., INDEPENDENT; AND

HOUSE.

 AN INDEPENDENT AGENCY IS A BUSINESS THAT IS FREE TO COMPETE FOR AND

SELECT ITS CLIENTS.

 A HOUSE AGENCY IS OWNED BY ITS MAJOR CLIENT. A HOUSE AGENCY IS NOT

COMPLETELY FREE TO SERVE OTHER CLIENTS. THE ADVERTISING DEPARTMENT

AN INTEGRAL PART OF THE ORGANIZATION IT SERVES.

 THE ADVERTISING AGENCY PROVIDES FOR THE CLIENT A MINIMUM OF:

UNIT – II
Media Planning
“Media Planning is the series of decisions involved in delivering the
promotional message to the prospective purchasers and or on users of the product or
brand”
“Media planning is a process, which means a number of decisions are made,
each of which may be altered on abandoned as the plan develops”.
Medium:
The Medium is the general category of available delivery systems, which
includes broadcast media (like TV and Radio). Print media (like Newspapers and
magazines), direct mail, outdoor advertising, and other support media.
Media Vehicle
Media vehicle is the specific carriers within a medium category.
The Media Plan / Activities
The media plan determines the best way to get the advertiser’s message to the
market. In a basic source, the goal of the media plan is to find that combination of
media that enables the marketer to communicate the message in the most effective
manner to the largest no. Of potential customer at the lowest cost.

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 Situation Analysis Marketing Creative strategy
strategy plan plan

Setting media
objectives

Determine media
strategy

Selecting broad
media class

Selecting media
within class

Broad cast Print Other media

Problems in Media Planning

1. In sufficient information
2. In sufficient terminology
3. Time pressure
4. Difficulty measuring effectiveness

Steps / Process / Stages involved in Developing the Media Plan

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 Media analysis Establishment of Media strategy
media objectives development and
implementation

Evaluation and
follow up

1. Market Analysis & Target market identification.

 To whom shall we advertise?
Index = Percentage of users in a demographic segment / Percentage of
population in the same segment *100
 What internal and external factors are operating?
 Where to promote-Using Indexes to determine where to promote.
a) The Survey of buying index.
b) Brand development index (BDI).
It helps Marketers factor the rate of product usage by geographic area in to the
decision process.
BDI = % of brand to total country sales in the market / % of total country
population in the market *100

c) The Category Development Index (CDI)

CDI = % of product category total sales in the market / % of total country
population in market *100

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2) Establishing Media Objectives
Just as the situation analysis leads establishment of marketing and
communication objectives, the media situation analysis should lead to determination
of specific media objectives.
Setting Media Objectives
1. Finding target audience
2. Sales geography
3. Timing
4. Duration: How long to advertise?

3) Developing and Implementing Media Strategies

Criteria / Factors to be considered in the development of media plans:

a) The Media Mix:

The wide variety of media vehicles are available to advertisers,
while it is possible that only one medium and /vehicle might be employed, it is much
more likely that no of alternatives will be used.
b) Target Market Coverage:
 Full market coverage
 Partial market coverage
 Coverage exceeding target market.

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 C) Geographic coverage
D) Scheduling:
The primary objective of scheduling is to time promotional effects so that
they will coincide with the highest potential buying times.

Types of scheduling

E) Reach Vs. Frequency:

Since advertise have a variety of objectives and face budget constraints, they usually
must trade off reach and frequency. They must decide whether to have the message be
seen /heard by more people (reach) / by fewer people more often (frequency). Reach
is the percentage of the target population exposed at least once to the advertiser’s
message during a specific time frame. Equally as important as the percentage of
people exposed (reach) is the number of times they are exposed. This rate of exposure
is called frequency.
Average Frequency – the average number of times the reached audience is exposed
to the media vehicle during a specified period of time.
 How much reach is necessary?
Determinants of reach
1. More prospective customers are reached by a media schedule using multiple
media rather than a single medium
2. Another influencing factor is the number and diversity of media vehicles used
2. Reach can be increased by diversifying the day parts used to advertise

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 What frequency level is needed?

 Media Class – refers to the general category of delivery systems available to

carry advertising messages to a selected audience such as print media,
broadcast media, outdoor media, etc.

 Media Vehicle – is the specific message carrier within a medium, such as

computer at home and Business today magazines are vehicles in print media.

 Broadcast, press, outdoor, posters and cinema are often referred as ‘above-the-
line media’.

 Direct mail, sales promotion, exhibitions, merchandising, sales literature, etc.

Are referred to as ‘below-the-line-media’

 ‘Media Planning’ refers to a series of decisions that need to taken in

delivering the ad message to the largest number of the target audience in the
most effective manner at the lowest cost. The plan specifies ‘media
objectives’ and ‘media strategies’ to accomplish the objectives.

 ‘Reach’ is a measure o the number of different audience members exposed at

least once to a media vehicle in a given period of time.

 ‘Coverage’ refers to the potential audience that might get exposed to the ad
message through a media vehicle.

 ‘Frequency’ refers to the number of times the audience is exposed to a media

vehicle in a given period of time.

 Gross Rating Points (grps) – refers to the total weight of a media effort,
quantatively, it is equal to reach multiplied by average frequency.

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  Continuity – refers to message deliveries over a period of time or a season. It
refers to the timing of the media insertion.

 The basic goal of a media plan is to formulate a particular combination of

media that would enable the advertiser to communicate the message
successfully and effectively to the maximum number of potential and existing
customers in the target market at the lowest cost.

Steps in the Development of Media Plan

Market Set the Media Media Strategy Evaluation and

Analysis Media development and follow-up
Objectives implementation

(i) Market Analysis and Identifying the Target Market - The key questions
at this stage: (1) who is the target audience for advertising, (2) what
internal and external factors may influence the media plan? (3) where and
when to focus the advertising effort? The market analysis may reveal
more than a few target markets. To decide which specific groups need to
be addressed, the media planner works with the client, account executives,
marketing department and the creative directors. At this stage, the media
planner may need some secondary or primary data regarding the audience
size, composition and exposure figures, etc.
(ii) Establishing Media Objectives – media objectives are formulated to help
accomplish the advertising communications task and marketing objectives.
Media objectives are translated into specific goals for the media
programme and are limited to those that can be achieved through media
strategies. For examples, the media objectives can be stated as,
a. Use print media to provide coverage of 80% of the target market over a
six-month period, staring May.
b. Reach 60% of the target audience at least three times over the same
six-month period.

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 c. Concentrate heaviest advertising between October and December, with
lighter emphasis in earlier months.
(iii) Develop and Implementing Media Strategies
a. Media Mix and Target Market Coverage – once media objectives are
established, planners develop suitable media strategies to accomplish
these objectives. The product characteristics, objectives, size of the
media budget, and individual preferences are some of the factors that
may influence choice of media combination. To effectively cover the
target market, the media planner determines the segments that should
get the maximum media emphasis.
b. Geographic Coverage – geography is an important consideration in the
media planning process. The demand for certain types of products
depends on the geographic locations of the markets. There may be
regional differences in consumption and accordingly media planners
select secondary localized media to supplement their national media
schedule.
c. Scheduling – media schedule is the calendar of advertising plan.
Scheduling is concerned with timing the insertion of advertisements in
the selected media. There are three approaches to scheduling:
i. Continuity – refers to a continuous pattern of advertising,
which can mean every day, every week,or every month.
ii. Flighting – refers to a less regular schedule of advertising
messages and is quite popular. There are intermittent periods
of advertising and no advertising.
iii. Pulsing – is a combination of continuity and flighting. The
continuity is maintained as a base throughout but, during
certain periods, the level of advertising stepped up.
d. Media Reach and Frequency – media planners face the essential task
of ensuring optimal use of media budget while deciding about the
reach, frequency and the number of advertising cycles affordable for
the year. Media planners make compromises and strike a balance
between reach, frequency and the number of advertising cycles in the
planning period.

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 i. “programme rating” is a measure of potential reach of
broadcast media and is expressed as a percentage.
ii. “gross rating points (GRP)” is a numerical figure indicating
how many potential audience members are likely to be exposed
to a series of commercials. GRP = Reach x Frequency
iii. “Target Rating Points (trps)” refer to the number of times and
the number of individuals in the primary target audience that
the media will reach.
iv. “Impact” is the instrusiveness of the ad message which means
whether the ad message was actually perceived by the
audience.
e. Qualitative Aspects of Media Vehicle Source – this concept refers to
the qualitative value of the media vehicle and there is general
agreement that vehicle source effect exists. There are at least six
attributes that should be considered while choosing a media vehicle:
i. Expertise – degree of expertise associated with its area of
interest is important.
ii. Prestige – for some products the prestige of a media vehicle is
considered to be important.
iii. Editorial “fit” – in a media vehicle, when the editorial matter
discusses some attribute, it is likely that even an ambiguous ad
close by will be interpreted being in mind, as the editorial
matter makes discussed attribute readily accessible in the
memory.
iv. Mood created – media vehicles can enhance the creativity of a
message by creating a mood that affects the impact of a
commercial communication.
v. Involvement – the involvement of target audience members in
a media vehicle should generate more impact of an ad message
as compared to another vehicle that is less interesting to
audience.
vi. Unbiased approach – it is also important that advertiser do not
attempt to influence the media objectivity.

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

 Cost per rating points:

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

 Milline rate:

Media buyers use the milline rate to compare the costs of space in newspapers. A
milline rate is the cost in rupees per line of standard dimensions to reach a newspaper
circulation of one million.
FREQUENCY
The term frequency refers to the number of advertisements of the same size appearing in
an individual medium for a given period such as per day, per week, per month, or per
campaign. There is no formula to determine the ideal frequency. The two factors are the
size of the advertising fund and the size of the advertisement to be run. If these are
known, frequency can be derived. The two other factors are the Number of media and the
advertising period. As the number of media increases, there is pressure for a lower
frequency, or to shorten the advertising period. The other possibilities are to enlarge the
fund, or to reduce the size of the advertisement. Manufacturers cannot ignore the fact that
what the competitors are doing in respect Of frequency. The more often a message is
repeated, the greater the proportion of it the consumer remembers.
Message Design and Positioning
Message design identifies the consumer’s perceptions about the products. The
following questions give a good insight:
(i) What is the nature of the product: its generic category.

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

Message Presentation
 Message are to be structured keeping the objective of the communication and
the audience in view.
 Messages are presented either centrally or peripherally.
o A central message takes a direct route to persuasion. It is a well
documented ad. It compares advantages and disadvantages of a
product. This central presentation provokes active cognitive
information processing.
o Peripheral presentation provides pleasant association, scenic
background, and favorable inferences about the product. These are
distinct, rational and emotional appeal ads.

Advertising Message Structure

The important aspects of message structure are:
 Drawing conclusions: The question often raised is whether definite
conclusions should be drawn for the audience in the ad for quick
understanding or should they be left to them. In many instances, it is best to
let the receivers of the promotion message draw their own conclusions.
 Repetition: repeating an ad message is often beneficial, for it develops a
continuity of impression in the minds of the target audience, and may increase
the predisposition to think and act favorably towards the products advertised.

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 A repeated message increases awareness and knowledge on the part of the
prospect.
 One-versus-two-sided arguments: This raises question whether the advertiser
should only praise the product of should also mention some of its
shortcomings. The most common approach in sales and advertising is a one-
sided approach. Two-sided arguments go well when audiences have an
unfavorable opinion about the communicator’s position.
 Comparative Advantage: here a product is directly or indirectly compared
with a competitive product to show the advertised product to advantage. This
trend has been seen more and more in some recent campaigns.
 Order of Presentation: Whether to put the strongest argument first or las in
the advertiser’s presentation is equally important. Sometimes this is
considered a part of copywriting strategy.

Message Format
Message format an important step in message development. By format, we mean the
organization, plan, style or type of ad message. The message format is the scheme by
which the message content and structure strategy are implemented. It is characterized
by the type of media vehicle in which the message is delivered.

MESSAGE DEVELOPMENT
There are so many media that carry the ad messages. There are so many products
which are advertised in these media. A number of companies advertise their products.
We have therefore a lot of communication in all directions—direct, indirect, zigzag
and all-sided. Perhaps there is over-communication. This leads us to the concept of
clutter, and how to overcome it.
2.1 MEANING
Layout is the logical arrangement of components of an advertisement in the copy. It refers
to the overall structure, the position assigned to the various elements of the copy and
illustrations. It is deciding on the placement of headlines, copy,
Illustrations, marketer’s name, logo and the amount of free space in an advertisement
copy. Thus, the physical arrangement of all the elements of advertisement is called layout.
It is concerned with placing all the elements of the advertisement more attractively within

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the allotted space and time. The pattern of layout varies according to the medium to be
used.
DEFINITION
According to sandage and fryburger, “the plan of an advertisement, Detailing the
arrangement of various parts and relative spatial importance of each is referred to as
layout”.

INGREDIENTS OF A GOOD LAYOUT

The following are the ingredients of a good layout.

 Background: Could have picture, tiles, blocks, and graphics but should not
overshadow the foreground.
 Border: Is the frame of the advertisement. Could be,
o · Heavy
o · Light
o · Obvious
o · Unobtrusive
o · Plain
o · Fanciful
o · Useful
o · Useless
The practice you must know is the elimination of border in today’s context.
Except when you have to present a key point, or a sales pitch then it could be
used.

 Heading: This is the title of the ad. Should be short, but could be four, five or
even six decked. Words in the heading should be short and verbs should be
used to attract attention.

 Illustration: It is the dominating picture in the ad. It could be the product itself
or a model. Large pictures are preferred than small ones but it is not a hard and
fast rule. Small pictures are to make the copy comfortable. The main picture

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 tries to position the picture. It can attract the right target audience by showing
the right picture. People showing the product could be a better picture than the
product itself. The illustration should show the benefit offered by the product.

 Caption: Used to describe the sub-title. It tells the story quickly, clearly and
decisively. Sometimes difficult to locate. But it is an important part of the
layout.

 Coupon: This is a part of the advertisement that enables a consumer to get in

touch with the advertiser. The name and postal address is an integral part of
any coupon. The offer or the request must follow in close heal. The obligation
of the customer is given by their signature space. No hard and fast rule is there
regarding the position of the coupon in the layout. Although in most of the
advertisements it normally lies at the end. Both rectangular and triangular ones
are in popular use. It is normally on the right hand side keeping in mind that
most people are right handed.

 Decoration: Greater interest for the applicability of decoration is in the fact

that it should supplement or emphasize the message of the advertisement as a
whole. Heavy or light would be at the discretion of the layout person.

 Mascot: It is also known as the ‘Trade Character’ or ‘Trade Figure’. It may be

defined as an illustration of either real or an imaginary figure or personality
introduced into the advertisement to personalize the sales message or the name
of the product or service. Maharaja of the Air India is a suitable example.

 Logo or Name Plate: This is the signature of the advertisement. The inclusion
of the company’s name and address is not always important hence the logo or
a specially designed image of the brand or the company can replace that. The
popular logos of Tata, Mercedes Benz, Toyota, Star TV network, etc are a
good example. The logo goes on to make the Corporate Identity i.e. What does
the company or the brand stands for?

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FUNCTIONS OF AN ADVERTISING LAYOUT
An advertisement layout is a blueprint. The main functions of layout are:-
(i) assembling different parts – the main function of layout is to
Assemble and arrange the different parts or elements of an advertisement illustration,
headline sub headlines, slogans, body text and the identification mark etc. And
boarder and other graphic materials – into a unified presentation of the sales message.
In all the layouts present these elements in the same size, form, shape, position and
proportion as desired by the advertiser in the final ad, proof , thus layout gives both
creative personals (copywriter and artists ) and the advertiser who pays for it a good
idea of how the finished ad will finally appear.

(Ii) opportunity of modification - the layout offers an opportunity to the creative teams,
agency management and the advertiser to suggest modification before its final approval
and actual construction and production begins.
(iii) specification for costs – the layout provides specification for Estimating costs and it
is a guide for engravers typographers and other craft workers to follow in producing the
advertisement.

Principles of design and layout

It is not necessary that all elements of advertisement copy must form part of the copy.
They appear in today’s ads with varying degree of frequency. The components of the
copy must be decorated or positioned on the basis of certain basic principals regardless of
the number of elements in an add. The following five principles of good composition are
important to anyone who creates or evaluates
The advertisement - (1) balance ; (2) proportion (3) contrast and emphasis, (4) eye –
movement , and (5) unity.
(1) balance – a layout may be called balanced if equal weight or forces are equidistant
from a reference point or a light weight is placed at a greater distance from the reference
point than a heavy weight. Balance is the law of nature. The reference point or fulcrum is
the optical centre of the advertisement. The artists with a given area or space, are to place
all the elements with in this space. Optical centre of fulcrum of the ad is often a point
approximately two – thirds of the distance forms the bottom. It is the reference of the
layout.

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(2) proportion- proportion is closely related to balance since it refers to the division of
space among layout elements for a pleasing optical effect. Good proportion in an
advertisement requires a desired emphasis on each element in terms of size and position.
If the major appeal in an advertisement is product’s price. The price should be displayed
in proportionate space position.
(3) contrast and emphasis – contrast means variety. It gives life to
The whole composition and adds emphasis to selected important elements. An advertiser
always looks to advertisements from completion point of view and desires the policy of
the most important elements to attract the attention of the people. An advertisement with
good contrast may attract the attention of customers contrast maybe visible in a number of
ways. It may be witnessed through sizes, shapes and colours. Different colours sizes and
shapes of elements in an advertisement add contrast. The varying directions, of design
elements (vertical trees, horizontal pavements arched rainbows) add contrast; too there
must be sales
Communication purpose behind every layout decision made.
(4) eye movement – eye movement is the design principle which helps
Move the eyes of the readers from element to element in the order given in the hierarchy
of effects model for effective communication of the message in advertising. An effective
ad uses movement to lead its reading audience from initial message awareness through
product knowledge and brand preference, to ultimate action (intent to purchase).
Direction and sequence are two terms for the same element and artists may perform it in
many ways. Mechanical eye direction may be created by devices such as pointing fingers
lines arrows or even a bouncing ball that moves from unit to unit. Planned eye movement
should follow the established reading patterns too, such as the tendency to start to top left
corner of a page and read through to the lower right corner. The eyes also moves naturally
from large items to small from dark to light and from colours to not – colours.
(5) unity or harmony – unity or harmony is another important design
Principle. Although each element should be considered as a separate unit in striving for
balance, proportion, contrast and eye movement. The complete layout or design should
appear as a unified composition. Common methods of securing unity in layouts are (i) use
of consistent typographical design. (ii) repetition of the same
Shapes and motifs, (iii) the overlapping of elements (iv) use of a boarder to hold elements
together and (v) avoidance of too much which space between various element. Although
unity and contrast seem conflicting but they function quite smoothly together if they
operate at cross purposes – if the artists strive for balance

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Here too as well as in the layout overall. Unity contributes orderliness to elements – a
state of coherence. And if they are properly placed. Contrasting size shapes colours and
directions can flow together beautifully.
2.1.5 elements of a layout
An advertising copy is the means by which the advertiser’s ideas are
Given expression to in a message to readers. Regardless of its length and brevity copy
refers to all the reading matters of an advertisement, including the headline, sub-
headlines, text or body, and the name of the firm or the standard initials of the advertiser.
As we have seen that advertising has so many immediate purposes but
Its ultimate goal is to stimulate sales. As a reader turns the pages of a magazine or
newspaper, he notices so many advertisements but a great variation in copy. Some copy
may be so sticking that the reader takes immediate action and rush to the nearest dealer to
purchase it while there may be some other copy or copies that he does not like or it does
not click to his mind. The first copy conforms to the requisites of a good copy. A
copywriter must take pains in making up a sound
Advertisement copy containing its various components i.e. Headlines, subhead lines,
illustrations etc. The following are the main components of an advertisement copy
1. Background 9. Name plate
2. Border 10. Price
3. Caption 11. Product
4. Coupon 12. Slogan
5. Decoration 13. Space
6. Heading 14. Sub-heading
7. Illustration 15. Text
8. Mascot 16. Trademark16. Trademark
1. Background
The background for the advertisements should be somewhat catchy and colourful. The
arrangement of background differs from medium to medium and advertisement to
advertisement. In short, background should be suitable for the contents of the
advertisement.
2. Border
It is defined as the frame of the advertisement. Border is employed to impart the reading
atmosphere. The border may be light or heavy, obvious, plain or fanciful. The border may
also contain a logo.
3. Caption

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It refers to the subtitle. But in most of the advertisement it is converted into heading or
sub-heading.
4. Coupon
Coupon is that part of the advertisement which is intended for the
Convenience of the prospective customer in communicating with the advertiser. The
coupon must contain the name and full postal address of the firm followed by the offer.
The offer should be brief and clear. There should be space for name and address of the
prospective customer. The usual shape of the coupon is triangular or rectangular.
5. Decoration
Advertisement decoration is the ornament of the advertisement. This is done to emphasis
the advertisement message.
6. Heading the heading or headline is defined as the title of the advertisement. The words
in the heading should be short.
7. Illustration
Illustrations are the part of layout that pictures the basic theme of the advertisement. It has
the power to capture the attention of the reader. The advertisements become richer by the
use of illustrations.
8.mascot
It is known as the trade character or trade figure. It is an illustration of either a real or an
imaginary figure or personality given in the advertisement.
9. Name plate (logo)
The name plate or name block is the signature of the advertiser. It represents the
personality of the company and its product.
10. Price
It is another part of layout. The price of the product should be featured clearly. The price
is usually taken in the concluding lines of the copy.
11. Product
It refers to the representation of the product offered for sale. A very popular practice is to
show the product in use with illustrations.
12. Slogan
Slogan is a sales argument. The arrangement of slogan in the layout is determined by the
importance of its relation to the advertising message.
13. Space
Space refers to the entire space left in the space hired by the advertiser. This depends on
the design of the copy.

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14. Subheading
It is a secondary heading. It is given to support the heading or to pick out the various
selling points given in the text.
15. Text
Text or body of the advertisement refers to the general reading matter. It is the subject
matter of the copy. It should be neither too wide nor too narrow.
16. Trade mark
It is a word or design by which a product is defined. If the trade, marks are registered it
can be included in the layout.
Importance of measuring the effectiveness of advertising
(1) it acts as a safety measure
Testing effectiveness of advertising helps in finding out ineffective
Advertisement and advertising campaigns. It facilitates timely adjustments in advertising
to make advertising consumer oriented and result oriented. Thus waste of money in faulty
advertising can be avoided.
(2) provides feed back for remedial measures
Testing effectiveness of advertising provides useful information to the advertisers to take
remedial steps against ineffective advertisements.
(3) avoids possible failure
Advertisers are not sure of results of advertising from a particular
Advertising campaign. Evaluating advertising effectives helps in estimating the results in
order to avoid complete loss.
(4) to justify the investment in advertising
The expenditure on advertisement is considered to be an investment. The investment in
advertising is a marketing investment and its objectives should be spelt out clearly
indicating the results expected from the campaign. The rate and size of return should be
determined in advance. If the expected rate of return is
Achieved in terms of additional profits, the advertisement can be considered as effective
one.
(5) to know the communication effect
The effectiveness of the advertisement can be measured in terms of their communication
effects on the target consumers or audience. The main purpose of advertising is
communicated the general public, and existing and prospective consumers, various
information about the product and the company. It is therefore desirable to seek post
measurements of advertising in order to determine whether advertisement have been seen

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or heard or in other words whether they have communicated the theme, message or
appeal of the advertising.
(6) compare two markets
Under this procedure, advertising is published in test markets and results are contrasted
with other. Markets – so called control markets – which have had the regular advertising
programme. The measurements made to determine results may be measurements of
change in sales, change in consumer attitudes, changes in dealer display. And so on
depending upon the objectives sought by the advertiser.
AD APPEAL
Appeals and Advertising Message

 The message content refers to what the advertiser has to say to the target
audience that will produce the desired response. It may be an appeal, a time,
an idea or a unique selling proposition.

 In fact, the message content ultimately formulates some kind of benefit,

motive or reason why the audience should respond to, or do, something.

 Appeals are broadly classified as rational, emotional and moral appeals.

 Rational appeals are those directed at the thinking process of the audience.
They involve some sort of a deliberate reasoning process, which a person
believes would be acceptable to other members of his social group. They
attempt to show that the product would yield the expected functional benefit.

 Rationality has come to be equated with substance. A rational ad becomes

believable and effective. Although there may be some disagreement regarding
which motives are rational and which are emotional.

 The following are some buying motives, which are normally, considered
rational under ordinary circumstances:

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(i) High Quality : People buy television, stereophonic music systems,
furniture, refrigerators, electric gadgets; kitchenware and a host of
consumer durables for their high quality. Many consumer goods, too, are
bought for their quality, such as clothing, beverages, food items, etc., and
not merely because of their taste or fashion, or style.
(ii) Low Price : Many people buy low-priced locally made air conditioners for
their homes because they believe that these products will show a product
performance similar to, or slightly inferior to, that of nationally reputed
brands at higher price. Whether this is true or not, a person, as long he
believes this to be true, thinks his reason will be accepted as a “good” one
by his social group. In this case, he is exhibiting a rational motive.
(iii) Long Life, as of a car tyre that will give 30,000 kms, before its utility has
been exhausted.
(iv) Performance, as of a ballpoint pen that won’t release excessive ink or skip
under any circumstances.
(v) Ease of use, as of a screwdriver with a magnetized tip which clings to the
metal head of the screw, or a timer in the kitchen mixer which switches off
automatically after a predetermined time period.
(vi) Re-sale Value, as of a two-wheeler scooter. “Bajaj” has a better re-sale
value than any other make.
(vii) Economy, in the operating expenses of some brands of refrigerator is
greater because they consume less electricity. Many two-wheeler vehicles
claim a better mileage per litre consumption of fuel than similar other
vehicles.

 Consumer durables of high value ‘are also often bought on the basis of
rational appeals.
 People are ready and willing to give rational motives if asked why they have
made a particular [purchase.

 Emotional appeals are those appeals, which are not preceded by careful
analysis of the pros and cons of making a buying.

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 Emotions are those mental agitations or excited states of feeling which prompt
us to make a purchase.
 Emotional motives may be below the level of consciousness, and may not be
recognized by a person; or even if he is fully aware that such a motive is
operating, he is unwilling to admit it to others because he feels that it would be
unacceptable as a “proper” reason for buying among his associates and
colleagues.
 Emotional appeals are designed to stir up some negative or positive emotions
that will motivate product interest or purchase.
 Different emotional appeals, which are particularly important from the
advertising point of view, are listed below.
 Following several motivation research studies, it has been found that negative
emotional appeals are more effective than positive ones.
 We shall also, therefore, name the negative appeals first.
 Negative Emotional Appeals: An advertiser may try to induce a particular
behavioral change by emphasizing either positive or negative appeals, or a
combination of both.
 For example, an advertising campaign to get the target audience to buy fire
insurance may stress the positive aspect -low cost relative to other investment,
the services the insurance company provides, early settlement of claims, and
so on; or it may stress the negative aspect of not getting insurance - the danger
of losing one’s possessions or the ravages of fire. Positive appeals use the
strategy of “reducing” a person’s anxiety about “buying and using” a product,
while negative appeals use the strategy of “increasing” a person’s anxiety
about “not using” a product or service.
 In general, a positive appeal stresses the positive gains to a person from
complying with the persuasive message; the negative appeal stresses his loss if
he fails to comply. We give here the different dimensions of emotional
appeals.

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Precautions While using the Emotional Route

(i) The advertising should have relevance. If the product needs attribute-based
rational advertising, emotional appeals should be avoided.
(ii) There should be a natural flow of feelings.
(iii) Execution should not be exaggerated. The level of emotionality should not
exceed that experienced by the consumer.
(iv) There is a difference between a consumer’s emotions associated with the
product / brand and a consumer’s emotional reaction to the ad copy itself.
Preferably, these two should be compatible.

Fear Appeals
 The fear appeal is most important among emotional appeals, and also the most
effective. It is said that the message’s effectiveness increases with the level of
fear it generates. The use of fear appeal in getting people to start doing things
they should is very common.
 Many ad messages of toothpaste employ this appeal. They present the fear of
tooth decay or unhealthy gums or bad breath, and then suggest the use of a
specific brand of toothpaste to get rid of such fears.

Positive Emotional Appeals

 Positive appeals highlight product benefits and attributes capable of

influencing consumer behavior. They are love, humor, pride, prestige and joy.
Most baby food products have a mother’s love appeal. Love for family is perfectly
employed in an ad of Dettol soap that has been called “The Love & Care Soap.” In the
closing sentence, the ad appeals by saying: “Give your family the Loving Care of
Dettol Soap.” Mother’s love for the baby has been appealed to in ad of Johnson’s
baby soap. It says: “Gentle as a kiss on your baby’s tender skin.” It further, goes on to
say: ‘’Johnson’s Baby Soap. Because Johnson & Johnson care for your baby almost
as I much as you do.”
Other emotional motives are illustrated in the following list:

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 (i) Desire to be different, as illustrated by people who build an ultra modem
home in an area of traditional homes.
(ii) Desire to confirm, as in the case of teenage boy and girls who want to be
“in jeans” because all their friends wear jeans.
(iii) Desire to attract the opposite sex, as shown by a teenage girl who buys a
new cosmetic in order to make her skin more beautiful.
(iv) Desire for prestige, as shown by a person who buys the most expensive
automobile (Mercedes, Toyota, etc.) He can afford in order to impress his
friends.

Sex Appeals in Advertising

 Sex appeal is being increasingly used in Indian advertising to overcome the
culture in the print as well as broadcast media and to grab attention.
 Sex appeals in contraceptive ads have become explicit, and are more visual
than verbal.
 Does sex really sell? Or is it a negative influence on consumer?
 The answer is not either affirmative or negative for these questions, and
depends upon a number of factors.
 Functional sex appeals have highest recall and so also symbolism.
Inappropriate sex appeals have lowest recall.
 Fantasies are also used as sex appeals. Appeal that are consistent with the
product, lead to a higher recall.
 There might be gender-related responses to sex appeal.
 Females may find the sexual ad offensive and so its use for a female targeted
product runs a risk.
 The sexual appeals are justified in case of products like personal products,
panties, bras, undergarments, and swimsuits. They may not go well with
industrial products.
 The relevance of the appeal to the product is very important. The manner of
sex portrayal, the sex of the models and the target segment also affect the
effectiveness of the ad.

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  Blatant references to sex are suddenly the in-thing in American advertising.
Marketers promoting perfumes, jeans, alcohols, gloves, watches and cars are
resorting to this route.
 Media clutter may be one reason that leads to the explosion of sexual imagery
in advertising.
 Ads of perfumes have traditionally focused on the sensuous. For Calvin Klein,
sex has always been a favorite selling point. Sex appeals are interpreted
differently from time to time, region to region, person to person, country to
country, and society to society. Even the same person reacts to them
differently at different stages of his life cycle.

Direct and Indirect Appeals

Another way of classifying ad appeals, comes about whether we they are linked
directly or indirectly with consumer needs.

Direct Appeals
 Direct appeals are those that clearly communicate with the consumers about a
given need, followed by a message that extols the advertised brand as a
product that satisfies that need.
 In Industrial advertising, some ads may have a direct appeal, satisfying the
customer’s technical need; but, in consumer advertising, the direct appeal
plays a very limited role.

Indirect Appeals
 Indirect appeals are those that do not emphasize a human need, but allude to a
need. Because advertisers understand the influence of needs upon selective
perception, they leave some ambiguity in the message so that the consumers
may be free to interpret it and the need to which the advertiser is appealing.

Product-Oriented Indirect Appeals:

They are Grouped into three Classifications

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I. Feature-oriented Appeals: The basic message is about product features,
characteristics and attributes. Examples: Instant Shine, Cherry shoe polish,
‘’Promise,’’ the unique toothpaste with the time-tested clove oil.

Ii. Use-oriented Appeals: The basic message emphasizes specific in-operation and/or
post-operation advantages of the brand advertised. Examples: Anne French hair
remover ad: “How much cruelty can a woman’s skin bear?” The headline is a
searching question. The- ad message discards other methods of hair removing - they
are shaving, waxing, and threading. Then it goes on to inform you how gently hair is
removed with Anne French.

Iii. Product Comparison Appeals: “The basic message emphasizes the differences
between the advertised brand and the competing brands. The advertised brand, of
course, has a net advantage over those with which it is compared; otherwise the whole
exercise becomes futile.

Consumer-Oriented Indirect Appeals:

They are Further Divided as Follows

(i) Attitude-oriented Appeals: The basic message is one that is in line with the
consumer’s attitude - his value – belief structure. Example: The ad series
by Shriram group, namely: “Indian Corporate Evolution. The Shriram
Experience.” In one of the ads, it says: “we are Indians. We must
remember our roots.” Then it goes on to state the group’s belief in Indian
traditions and the advantages it shares with the country. This message
refers indirectly to Maslow’s esteem need.
(ii) Significant Group-oriented Appeals: The basic message emphasizes the
kind of group that uses or approves of the advertised brand. The group
may be a reference group, a social group, or a peer group, or any other
group that is significant for the consumer target. The ad says: “Some
possessions define a character. Some distinguish it. A cigarette so
distinguished, it’s by appointment to your Majesty.”

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 (iii) Life Style-oriented Appeals: The basic message emphasizes an identifiable
life style relevant to a defined target market. Example: An ad of Charminar
cigarette making an appeal with its strong taste. For some hard smokers, a
“strong” cigarette can only give relaxation, particularly after a day’s hard
work. One needs a Charminar.
(iv) Sub-conscious-oriented Appeals: The basic message is distinguished and
is directed at the consumer’s subconscious or unconscious) need. These
messages are aimed at the buyer’s dream world, but are veiled in some
manner by messages appealing to the buyer’s conscious mind. Example:
‘Petals’ brassieres of VIP are advertised with a dreamy message: “As you
flower into a woman, you discover the epitome of international fashion.
Discover Petals.”
(v) Image-oriented Appeals: Although all advertising appeals create a brand
image in the minds of consumers, the image oriented approach is distinct
in the sense that here the advertiser, consciously and purposefully, makes
an effort to mould a brand image. There is an intention to create a specific
brand image. One strategy is to create a brand image that “fits” either the
self-image or self-ideal image of the target market.

Essentials of an Advertisement Appeal

I. It must be thematically sound.
Ii. It must be communicative.
Iii. It must be interesting.
Iv. It must have credibility.
V. It must have finality and be complete.
Vi. It must contain truthful” information.

Selling Points and Appeals

Selling points are those product attributes that are listed in the advertisement copy to
impress upon the consumer the significance of a product to him. They could be
specifications, quality statements, composition statements, descriptive or narrative or
performance statements. Some selling points are primary selling points and the rest

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are subsidiary selling points. Selling points in order to be effective must have the
force to appeal to a particular buying motive. So selling points successfully touch
upon the buying motives.

SALES PROMOTION TECHNIQUES /TOOLS

CONSUMER-ORIENTED SALES PROMOTIONS

 Consumer sales promotions are steered toward the ultimate product users—
typically individual shoppers in the local market—but the same techniques can
be used to promote products sold by one business to another, such as computer
systems, cleaning supplies, and machinery. In contrast, trade sales promotions
target resellers—wholesalers and retailers—who carry the marketer's product.
 Following are some of the key techniques used in consumer-oriented sales
promotions.

PRICE DEALS

 A consumer price deal saves the buyer money when a product is purchased.
The main types of price deals include discounts, bonus pack deals, refunds or
rebates, and coupons.
 Price deals are usually intended to encourage trial use of a new product or line
extension, to recruit new buyers for a mature product, or to convince existing
customers to increase their purchases, accelerate their use, or purchase
multiple units. Price deals work most effectively when price is the consumer's
foremost criterion or when brand loyalty is low.
 Price Discounts: Buyers may learn about price discounts either at the point of
sale or through advertising. At the point of sale, price reductions may be
posted on the package, on signs near the product, or in storefront windows.
Many types of advertisements can be used to notify consumers of upcoming
discounts, including fliers and newspaper and television ads. Price discounts
are especially common in the food industry, where local supermarkets run
weekly specials. Price discounts may be initiated by the manufacturer, the

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 retailer, or the distributor. For instance, a manufacturer may "pre-price" a
product and then convince the retailer to participate in this short-term discount
through extra incentives. For price reduction strategies to be effective, they
must have the support of all distributors in the channel. Existing customers
perceive discounts as rewards and often respond by buying in larger quantities.
Price discounts alone, however, usually do not induce first time buyers.

 Bonus Pack or Banded Pack: Another type of price deal is the bonus pack or
banded pack. When a bonus pack is offered, an extra amount of the product is
free when a standard size of the product is bought at the regular price. This
technique is routinely used in the marketing of cleaning products, food, and
health and beauty aids to introduce a new or larger size. A bonus pack rewards
present users but may have little appeal to users of competitive brands. A
banded pack offer is when two or more units of a product are sold at a
reduction of the regular single-unit price. Sometimes the products are
physically banded together, such as in toothbrush and toothpaste offers.
 Refund or Rebate: A refund or rebate promotion is an offer by a marketer to
return a certain amount of money when the product is purchased alone or in
combination with other products. Refunds aim to increase the quantity or
frequency of purchase, to encourage customers to "load up" on the product.

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 This strategy dampens competition by temporarily taking consumers out of the
market, stimulates the purchase of postponable goods such as major
appliances, and creates on-shelf excitement by encouraging special displays.
Refunds and rebates are generally viewed as a reward for purchase, and they
appear to build brand loyalty rather than diminish it.
 Coupons: Coupons are legal certificates offered by manufacturers and
retailers. They grant specified savings on selected products when presented for
redemption at the point of purchase. Manufacturers sustain the cost of
advertising and distributing their coupons, redeeming their face values, and
paying retailers a handling fee. Retailers who offer double or triple the amount
of the coupon shoulder the extra cost. Retailers who offer their own coupons
incur the total cost, including paying the face value. In this way, retail coupons
are equivalent to a cents-off deal. Manufacturers disseminate coupons in many
ways. They may be delivered directly by mail, dropped door to door, or
distributed through a central location such as a shopping mall. Coupons may
also be distributed through the media—magazines, newspapers, Sunday
supplements, or free-standing inserts (FSI) in newspapers. Coupons can be
inserted into, attached to, or printed on a package, or they may be distributed
by a retailer who uses them to generate store traffic or to tie in with a
manufacturer's promotional tactic. Retailer-sponsored coupons are typically
distributed through print advertising or at the point of sale. Sometimes,
though, specialty retailers or newly opened retailers will distribute coupons
door to door or through direct mail.

CONTESTS/SWEEPSTAKES

 The main difference between contests and sweepstakes is that contests

require entrants to perform a task or demonstrate a skill that is judged in
order to be deemed a winner, while sweepstakes involve a random drawing
or chance contest that may or may not have an entry requirement.
 At one time, contests were more commonly used as sales promotions,
mostly due to legal restrictions on gambling that many marketers feared
might apply to sweepstakes.

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  Furthermore, participation in contests is very low compared to
sweepstakes, since they require some sort of skill or ability.

SPECIAL EVENTS

 According to the consulting firm International Events Group (IEG), businesses

spend over $2 billion annually to link their products with everything from jazz
festivals to golf tournaments to stock car races. In fact, large companies like
RJR Nabisco and Anheuser-Busch have special divisions that handle nothing
but special events.
 Special events marketing offer a number of advantages. First, events tend to
attract a homogeneous audience that is very appreciative of the sponsors.
Therefore, if a product fits well with the event and its audience, the impact of
the sales promotion will be high. Second, event sponsorship often builds
support among employees—who may receive acknowledgment for their
participation—and within the trade.
 Finally, compared to producing a series of ads, event management is relatively
simple. Many elements of event sponsorship are prepackaged and reusable,
such as booths, displays, and ads. Special events’ marketing is available to
small businesses, as well, through sponsorship of events on the community
level.

PREMIUMS

 A premium is tangible compensation that is given as incentive for performing

a particular act—usually buying a product.
 The premium may be given for free, or may be offered to consumers for a
significantly reduced price. Some examples of premiums include receiving a
prize in a cereal box or a free garden tool for visiting the grand opening of a
hardware store.
 Incentives that are given for free at the time of purchase are called direct
premiums. These offers provide instant gratification, plus there is no confusion
about returning coupons or box tops, or saving bar codes or proofs of
purchase.

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Other types of direct premiums include traffic builders, door openers, and referral
premiums. The garden tool is an example of a traffic-builder premium—an incentive
to lure a prospective buyer to a store. A door-opener premium is directed to customers
at home or to business people in their offices. For example, a homeowner may receive
a free clock radio for allowing an insurance agent to enter their home and listening to
his sales pitch. Similarly, an electronics manufacturer might offer free software to an
office manager who agrees to an on-site demonstration. The final category of direct
premiums, referral premiums, rewards the purchaser for referring the seller to other
possible customers.

Mail premiums, unlike direct premiums, require the customer to perform some act in
order to obtain a premium through return mail. An example might be a limited edition
toy car offered by a marketer in exchange for one or more proofs-of-purchase and a
payment covering the cost of the item plus handling. The premium is still valuable to
the consumer because they cannot readily buy the item for the same amount.

CONTINUITY PROGRAMS

 Continuity programs retain brand users over a long time period by offering
ongoing motivation or incentives.

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  Continuity programs demand that consumers keep buying the product in order
to get the premium in the future.
 Trading stamps, popularized in the 1950s and 1960s, are prime examples.
Consumers usually received one stamp for every dime spent at a participating
store. The stamp company provided redemption centers where the stamps
were traded for merchandise.
 A catalog listing the quantity of stamps required for each item was available at
the participating stores.
 Today, airlines' frequent-flyer clubs, hotels' frequent-traveler plans, retailers'
frequent-shopper programs, and bonus-paying credit cards are common
continuity programs.
 When competing brands have reached parity in terms of price and service,
continuity programs sometimes prove a deciding factor among those
competitors.
 By rewarding long-standing customers for their loyalty, continuity programs
also reduce the threat of new competitors entering a market.

SAMPLING

 A sign of a successful marketer is getting the product into the hands of the
consumer.
 Sometimes, particularly when a product is new or is not a market leader, an
effective strategy is giving a sample product to the consumer, either free or for
a small fee. But in order for sampling to change people's future purchase
decisions, the product must have benefits or features that will be obvious
during the trial.
 There are several means of disseminating samples to consumers. The most
popular has been through the mail, but increases in postage costs and
packaging requirements have made this method less attractive.
 An alternative is door-to-door distribution, particularly when the items are
bulky and when reputable distribution organizations exist. This method
permits selective sampling of neighborhoods, dwellings, or even people.

96
  Another method is distributing samples in conjunction with advertising. An ad
may include a coupon that the consumer can mail in for the product, or it may
include an address or phone number for ordering.
 Direct sampling can be achieved through prime media using scratch-and-sniff
cards and slim foil pouches, or through retailers using special displays or a
person hired to hand out samples to passing customers.
 Though this last technique may build goodwill for the retailer, some retailers
resent the inconvenience and require high payments for their cooperation.
 A final form of sample distribution deals with specialty types of sampling. For
instance, some companies specialize in packing samples together for delivery
to homogeneous consumer groups, such as newlyweds, new parents, students,
or tourists. Such packages may be delivered at hospitals, hotels, or dormitories
and include a number of different types of products.

TRADE-ORIENTED SALES PROMOTIONS

 A trade sales promotion is targeted at resellers—wholesalers and retailers—
who distribute manufacturers' products to the ultimate consumers.
 The objectives of sales promotions aimed at the trade are different from those
directed at consumers.

 In general, trade sales promotions hope to accomplish four goals:

o Develop in-store merchandising support, as strong support at the retail
store level is the key to closing the loop between the customer and the
sale.
o Control inventory by increasing or depleting inventory levels, thus
helping to eliminate seasonal peaks and valleys.
o Expand or improve distribution by opening up new sales areas (trade
promotions are also sometimes used to distribute a new size of the
product).
o Generate excitement about the product among those responsible for
selling it. Some of the most common forms of trade promotions—
profiled below—include point-of-purchase displays, trade shows, sales

97
 meetings, sales contests, push money, deal loaders, and promotional
allowances.

POINT-OF-PURCHASE (POP) DISPLAYS

 Manufacturers provide point-of-purchase (POP) display units free to retailers

in order to promote a particular brand or group of products.
 The forms of POP displays include special racks, display cartons, banners,
signs, price cards, and mechanical product dispensers.
 Probably the most effective way to ensure that a reseller will use a POP
display is to design it so that it will generate sales for the retailer. High product
visibility is the basic goal of POP displays.
 In industries such as the grocery field where a shopper spends about three-
tenths of a second viewing a product, anything increasing product visibility is
valuable.
 POP displays also provide or remind consumers about important decision
information, such as the product's name, appearance, and sizes.
 The theme of the POP display should coordinate with the theme used in ads
and by salespeople.

TRADE SHOWS

 Thousands of manufacturers display their wares and take orders at trade

shows. In fact, companies spend over $9 billion yearly on these shows.
 Trade shows provide a major opportunity to write orders for products. They
also provide a chance to demonstrate products, disseminate information,
answer questions, and be compared directly to competitors.
 Related to trade shows, but on a smaller scale, are sales meetings sponsored by
manufacturers or wholesalers. Whereas trade shows are open to all potential
customers, sales meetings are targeted toward the company's sales force and/or
independent sales agents. These meetings are usually conducted regionally and
directed by sales managers. The meetings may be used to motivate sales
agents, to explain the product or the promotional campaign, or simply to
answer questions.

98
  For resellers and salespeople, sales contests can also be an effective
motivation. Typically, a prize is awarded to the organization or person who
exceeds a quota by the largest percentage.

PUSH MONEY

 Similarly, push money (PM)—also known as spiffs—is an extra payment

given to sales-people for meeting a specified sales goal.
 For example, a manufacturer of refrigerators might pay a $30 bonus for each
unit of model A, and a $20 bonus for each unit of model B, sold between
March 1 and September 1.
 At the end of that period, the salesperson would send evidence of these sales
to the manufacturer and receive a check in return.
 Although some people see push money as akin to bribery, many manufacturers
offer it.

DEAL LOADERS

 A deal loader is a premium given by a manufacturer to a retailer for ordering a

certain quantity of product. Two types of deal loaders are most typical.
 The first is a buying loader, which is a gift given for making a specified order
size.
 The second is a display loader, which means the display is given to the retailer
after the campaign.
 For instance, General Electric may have a display containing appliances as
part of a special program. When the program is over, the retailer receives all
the appliances on the display if a specified order size was achieved.

TRADE DEALS

 Trade deals are special price concessions superseding, for a limited time, the
normal purchasing discounts given to the trade.
 Trade deals include a group of tactics having a common theme—to encourage
sellers to specially promote a product.

99
 The marketer might receive special displays, larger-than-usual orders, superior
in-store locations, or greater advertising effort. In exchange, the retailer might
receive special allowances, discounts, goods, or money. In many industries,
trade deals are the primary expectation for retail support, and the marketing
funds spent in this area are considerable.
 There are two main types of trade deals: buying allowances and
advertising/display allowances.
o BUYING ALLOWANCES A buying allowance is a bonus paid by a
manufacturer to a reseller when a certain amount of product is
purchased during a specific time period. For example, a reseller who
purchases at least 15 cases of product might receive a buying
allowance of $6.00 off per case, while a purchase of at least 20 cases
would result in $7.00 off per case, and so forth. The payment may take
the form of a check or a reduction in the face value of an invoice. In
order to take advantage of a buying allowance, some retailers engage
in "forward buying." In essence, they order more merchandise than is
needed during the deal period, then store the extra merchandise to sell
later at regular prices. This assumes that the savings gained through the
buying allowance is greater than the cost of warehousing and
transporting the extra merchandise. Some marketers try to discourage
forward buying, since it reduces profit margins and tends to create
cyclical peaks and troughs in demand for the product. The slotting
allowance is a controversial form of buying allowance. Slotting
allowances are fees retailers charge manufacturers for each space or
slot on the shelf or in the warehouse that new products will occupy.
The controversy stems from the fact that in many instances this
allowance amounts to little more than paying a bribe to the retailer to
convince them to carry your company's products. But many marketers
are willing to pay extra to bring their products to the attention of
consumers who are pressed for time in the store. Slotting allowances
sometimes buy marketers prime spaces on retail shelves, at eye level or
near the end of aisles. The final type of buying allowance is a free
goods allowance. In this case, the manufacturer offers a certain amount

100
 of product to wholesalers or retailers at no cost if they purchase a
stated amount of the same or a different product. The allowance takes
the form of free merchandise rather than money.

ADVERTISING ALLOWANCES An advertising allowance is a dividend paid by a

marketer to a reseller for advertising their product. The money can only be used to
purchase advertising—for example, to print flyers or run ads in a local newspaper.
But some resellers take advantage of the system, so many manufacturers require
verification. A display allowance is the final form of trade promotional allowance.
Some manufacturers pay retailers extra to highlight their display from the many
available every week. The payment can take the form of cash or goods. Retailers must
furnish written certification of compliance with the terms of the contract before they
are paid. Retailers are most likely to select displays tha CHARACTERISTICS OF
SUCCESSFUL SALES PROMOTION
Some aspects that are important to consider in marking sales promotions successful
are as follows:
1. Maximum effect at minimum cost: when the nature of promotion objective is
such that is can best be achieved by sales promotion, rather than advertising
alone, and the objective is achieved at minimum cost.
2. Motivates consumers to buy now: successful sales promotions induce a sense
of urgency to buy now and avoid postponing purchases.
3. Offers what the consumers want: sales promotion must not attempt to push
any offer that is not regarded as desirable by target consumers.
4. The promotion should be clear and uncomplicated: simple and clear
language must be used in communicating with the consumers.
5. Promotion should be highly visible: the offer must draw attention of target
consumers. Effective promotions draw attention from high visibility and from
creative qualities.
6. Promotion should benefit all concerned: usually promotions involve
cooperation of sales force and channel members. They need to be motivated
to make the efforts successful.
7. Promotion must be believable and honest: it makes reasonable and
believable claims, tells the truth, there are no exaggerations, and it respects
public’s intelligence.

101
 8. Promotion must be legal: the marketers must check the legality of promotion
before announcing it.
9. Promotion must be implemented efficiently: proper arrangements must be
made with handling houses and premium suppliers to avoid any
complications.

SALES PROMOTION EVALUATION

Measurements of results, in any are of business activity, is related to the objects
that are set. The sales promotion can be evaluated at three different stages:

1. Pre-testing: how sales promotion is to be communicated and what would

be communicated to the target groups is important and can be pre-tested.
Pre-testing consists of experimenting certain markets or individual stores
in a market. The simplest way is to visit several important retailers and
wholesalers and discuss the programme and seek their opinion and
suggestions.
2. Concurrent Testing: this testing is done when the sales promotion is in
progress. Concurrent testing is conducted in terms of sales data, which can
be obtained on weekly or monthly basis.
3. Post-testing: post-testing done after the promotion period is over. To
asses the change in consumer awareness and attitude, telephone calls,
questionnaire mailed to consumers, and personal interviews can be used.

To measure the sales effect, sales figures before the promotion period can be
compared with figures at the end of promotion, and one month after the promotion
ends.

102
DESIGN AN INTEGRATED SALES PROMOTION PROGRAM

Design an integrated Sales Promotion Program for the following channel of

distribution: Manufacturer-to-Independent Sales Rep-to-Retailer-to-Consumer

A new product in a mature category, such as LIME COKE

Background Information

The cola market is a mature market with lots of variety. Consumers are trying new
and innovative products. There’s strong growth in bottled water, juices, sports drinks
and energy drinks. Consumers are conscious cola drinkers; they are calorie conscious
especially in their 20s and 30s. The Lime Coke is a new product in the market. Sprite,
Coca-Cola’s ‘solid’ performer continues to be a great success as a strong competitor
to this new product.

The nature of product is revolutionary; it should create emotional connection with the
consumers. The Lemon Cola drinkers, driven by youthful liberation, relate to life’s
more light-hearted and fun experiences. It is a drink of choice for people who are
younger and more exciting.

Objectives
New distribution of Lime Coke products through the channel distribution by
motivating top 20% of the Manufacturer’s independent salespeople to move more
Lime Coke products to Retailers in order to generate an ultimate 40 to 50% sales
during the Christmas season by attracting consumers.

Channel Distribution Strategy

103
The distribution system has only two divisions (Independent Sales Rep and Retailer)
before it reach the consumer.

The product is new in a matured market, needs additional explanation and education
for the sales reps to have that carried over to the retailer to gain maximum consumer
exposure in this dominant market position.

There is a competitor product such as Sprite, certainly, there is a competition for

distributor resources in order to get attention. The channel function will only be
selling, inventory support, physical distribution and post sales services.

104
 RESEARCH
METHODOLOGY

105
 RESEARCH METHODOLOGY

Statement of the Problem

The project is mainly undertaken to study the sales promotional strategies at
Zenith Infotech The intention of the study is to find what attributes needs further
improvement in order to make the product more preferable in the market.

The main aim of the study is to uncover new relationship and identify any problem
that may arise in future. Hence, exploratory research is been conducted. Exploratory
research as its name implies endeavors of exploring the possibility of doing research
on a subject where due to lack of existing knowledge framing and testing the
hypotheses is difficult. In today’s crowed marketplace where products and services
are touting themselves to be the best, it is vital to stand out in the crowd. The study
was undertaken to explore how a company or brand can ensure a store that stands out
and not get lost in the crowd.

Scope of the Study

This project was undertaken for a specific period in Zenith Infotech, It is an
exercise that is well planned into the curriculum giving the researcher a valuable
opportunity to understand the working dynamics of the organization and to
experiment and exhibit the recently acquired management and administration skills.

106
 LIMITATIONS OF THE STUDY

Every study is bound by limitations and as such this is no exceptions.

1. “Change is Constant” rule of nature. Hence, the study undertaken may not
hold good for longer duration.

2. The study was conducted under the assumption that the information given by
the respondents is authentic.

3. The analysis and suggestion are given only with respect to marketing aspects
as technical suggestion with respect to the product could not be given.

4. Confidential matters were not disclosed by the company.

5. There were time constraints.

107
 METHODOLOGY OF THE STUDY

A variety of methods of study have been adopted by the researcher to fulfill the
objectives of the study.

 In order to have a better grasp of the study, the researcher chose to become
a keen observer, studying the various aspects of the organization.

 To have a broader perspective of the study, the researcher attended the

Lifestyle Exhibition at Palace Grounds wherein the products of Zenith
Infotech were displayed.

 In order to fund out the market realities, the researcher visited the
showrooms of certain companies having almost similar product profile as
that of Zenith Infotech To name a few Quezel, Veneto Cosines, Trident
Inter Wood, etc.

 With a view to understand the crunch of the matter and to find out the
ground realities, the researcher formed a schedule specifically for the set of
respondents. The researcher met the respondents personally, interviewed
them and made them to fill the questionnaire.

The researcher has done the research in the following manner;

a) Type of the research undertaken is analytical.
b) Technique used is random sampling.
c) Sample size taken is 30.
d) Sources of data used include both primary as well as secondary data.
e) Tool used for the research is questionnaire.
f) Plan of analysis are tables and graphs.

108
 DATA COLLECTION METHODS

In this study, the foremost data collection instrument used is the questionnaire
method. The questionnaire has been designed with both open ended and closed ended
questions. Apart from this, the research instrument consists of primary and secondary
data collected for the study.

Primary Data:
Here first hand information is obtained by distributing printed questionnaire to the
marketing executives of the company. Data was also obtained from the observation
and interview technique adopted by the researcher. Moreover, information was
disseminated by the departmental heads.

Secondary Data:
Here the information is obtained from the brochure of Zenith Infotech, books,
websites, newsletter, journals, magazines, newspapers, etc.

109
 SOURCES OF DATA

Primary Data Secondary Data

Questionnaire Newsletter
Observation Journals
Interviews Magazines
Visits to other Newspapers
Companies Information Books
Through Departmental heads Websites

110
LIMITATIONS OF STUDY

Certain limitations that were encountered during the survey were:

1). Limitation of time: Time was not enough considering the amount of work
to be done. Thus limitation of time was one of the major drawbacks of the study.
2). Sample size: Since it was a sample survey and not a census survey, the
number of respondent was too small to draw any conclusion from the research and
hence the out come of analysis cannot be considered as absolutely correct.
3). Non co-operation of employees: Reluctance on part of certain employees
to show their interest on the survey and give their true opinion regarding different
parameters.
4). Biased information: The study is based on the information gathered from
the employee. Therefore in such case it is possible that the information supplied might
be biased because the employee might have shown partiality towards their company
and superiors.
5). Limitation of Language: The questions were asked to the employee that
was easy to understand but most of the employees were not able to understand
because of the language problem & illiteracy.

111
DATA ANALYSIS AND
INTERPRETATION

112
 DATA ANALYSIS AND INTERPRETATION
Table No. 1
Table representing the gender of the marketing executives

Gender No. of Respondents Percentage

Male 6 20%
Female 24 80%
Total 30 100%

Analysis

 80% of the respondents are male.

 20% of the respondents are female.

Interpretation

 Majority of the marketing executive are male.

113
 Graph 1

Gender of the Marketing Executives

114
 Table No. 2

Table representing the pricing of products

Prices No. of Respondents Percentage

High ─ ─
Reasonable 16 54%
Competitive 14 46%
Low ─ ─
Total 30 100%

Analysis

 54% of the respondents are of the opinion that the products are
reasonable.
 46% of the respondents are of the opinion that the prices of the products
are competitive.
 None of the respondents feel that the prices of the products are either high
or low.

Interpretation

 Majority of the respondents opine that the prices of the products are
reasonable.
 The prices of the products are reasonable though they are competitive.

115
 Graph 2
Pricing of Products

116
 Table No. 3

Table representing the major competitors of Zenith

Infotech with regard to Products

Major Competitor No. of Respondents

No dominant player 24
Other 6
Total 30

Analysis

 Majority of the respondents i.e. 80% opines that there is no dominant

player in the market.
 20% of the respondents are of the opinion that the Other company is the
major competitor.

Interpretation

 Though brand names came into the picture but the fact reveals that there
is no dominant player in the market. So everyone is competing with each
other.

Graph 3
117
 Major Competitors

25

20

15 No dominant
player
10 Other

0
No. of Respondents

Table No. 4

118
 Table representing the competitor’s strength

Strength No. of Respondents Percentage

Quality ─ ─
Brand Image 24 80
Pricing ─ ─
Promotional Activities 6 20
Total 30 100

Analysis

 80% of the respondents are of the opinion that the competitor’s strength is
brand image.
 20% of the respondents opine that promotional activities are the strength
of the competitors.
 None of the respondents feel that quality and pricing are the strength of
the competitors.

Interpretation

 Majority of the respondents opines that brand image is the strength of the
competitors.

Graph 4

The Competitor’s Strength

119
Table No. 5

120
 Table representing the quality of the products of
Zenith Infotech with respect to other competitors

Rating No. of Respondents Percentage

Good 17 57
Very good 13 43
Fair ─ ─
Poor ─ ─
Total 30 100
Analysis

 Majority of the respondents i.e. 57% are of the opinion that the products
are of good quality with respect to other competitors.
 43% of the respondents opine that the products are of very good quality
with respect to the other competitors.
 None of the respondents are of the opinion that the products are of fair or
poor quality with respect to other competitors.

Interpretation

 Majority of the respondents is of the opinion that the products are of good
quality and is at par with other competitors having brand names.

Graph 5
Quality of the products of Zenith Infotech with
respect to other competitors

121
Table No. 7

122
 Table representing the merits of the products of
Zenith Infotech that differentiates it from others

Merits No. of Respondents Percentage

Reasonable price 10 33
Quality 7 24
Customized product 10 33
Finishing 3 10
Total 30 100

Analysis

 33% of the respondents are of the opinion that reasonable pricing and a
customized product differentiates the products of Zenith Infotech from
that of others.
 24% of the respondents are of the opinion that quality is the differentiating
factor.
 10% of the respondents are of the opinion that finishing is the
differentiating factor.

Interpretation

 Reasonable pricing and customized products differentiates the products of

Feror dek from that of others.
 In fact, all the merits such as reasonable pricing, customized products,
quality and finishing contributes in differentiating the products from
others.

123
 Graph 7

Merits that differentiates the products of Zenith

Infotech

12

10 10
10

8
7
Reasonable price
6 Quality
Customized products
4 Finishing
3

0
No. of Respondents

Table No. 8

124
 Table representing the factors which play a major
role in demand generation

Factors Ratings

5 4 3 2 1
Price of the product 4 3 0 1 1

Awareness about the product 3 1 0 4 1

Delivery of the product ordered 1 0 5 1 2
Presentation about the product 0 2 0 3 4
Design of the product 1 3 4 0 1

5 - Very important, 4 - Important, 3 - Makes little difference,

2 - Not important, 1 – Does not make any difference.

Analysis
 Price of the product gets the maximum of 5 rating.
 Design of the product and the price of the product get the maximum of 4
rating.
 Delivery of the product ordered gets the maximum of 3 ratings.
 Awareness about the product gets the maximum of 2 rating.
 Presentation about the product gets the maximum of 1 rating.

Interpretation
 Price of the product plays a major role in the demand generation.
 Design of the product plays an important role in demand generation.
 Delivery time of the product ordered can make a little difference in
demand generation.

Graph 8

125
 Factors playing a major role in demand generation

5
5

4 4 4
4

Price of the product

3 3 3 3 Awareness about the product
3
Delivery of the product ordered
Presentation about the product
2 2
2 Design of the product

1 1 1 1 1
1

00 0 0 0 0
0
1 2 3 4 5

Table No. 9

Table representing the promotion of the products of

Zenith Infotech

Promotions No. of Respondents Percentage

Paper insertion 7 24
Telemarketing 10 33
Display stalls ─ ─
Participating in exhibition 10 33
Direct mail ─ ─
Presentations ─ ─
126
Showrooms 3 10
Total 30 100

Analysis

 24% of the respondents are of the opinion that paper insertions are used as
promotion of the product.
 33% of the respondents opine that telemarketing is the means of
promotion of the products.
 33% of the respondents feel that participating in exhibition has promoted
the product.
 10% of the respondents are of the opinion that showrooms are used as
promotion of the product.

Interpretation

 The company adopts a variety of promotional methods such as paper

insertion, telemarketing, display stalls, participating in exhibition, direct
mail, presentations and showrooms.

Graph 9

Methods of promoting the products

127
 Table No. 10

Table representing the discount if given on repeat

purchase

Discounts Given No. of Respondents Percentage

Yes 27 90
No 3 10
Total 30 100

128
Analysis

 90% of the respondents are of the opinion that the discount is given on
repeat purchase.
 10% of the respondents are of the opinion that discounts are not given on
repeat purchase.

Interpretation

 Majority of the respondents is of the opinion that discounts are given on

repeat purchase.

Graph 10

Discounts given on repeat purchase

129
 Table No. 11

Table representing the percentage of discounts given

on repeat purchase

Percentage of Discount No. of Respondent Percentage

130
2 – 5% 20 66
6 – 10% 5 17
11 – 15% ─ ─
16 – 20% ─ ─
None 5 17
Total 30 100

Analysis

 66% of the respondents are of the opinion that 2-5% discount is given on
repeat purchase.
 17% of the respondents opine that 6-10% of discount is given on repeat
purchase.
 17% of the respondents are of the opinion that no discount is given on
repeat purchase.

Interpretation

 Majority of the respondents are of the opinion that 2-5% discount is given
on repeat purchase.
 The company does not adhere to any stringent norm while giving discount
on repeat purchase as there is difference of opinion among the
respondents.

Graph 11

Percentage of discount given on repeat purchase

131
 Table No. 12

Table representing the way of marketing of the

products
132
 Way No. of Respondents Percentage
Direct marketing 30 100
Retailers ─ ─
Dealers ─ ─
All of the above ─ ─
Total 30 100

Analysis

 100% of the respondents are of the opinion that the marketing of products
are through direct marketing.

Interpretation

 The products are marketed through direct marketing and dealers and
retailers are not involved in the marketing process.

Graph 12

The way of marketing of the products

133
35
30
30

25

20 Direct marketing
Retailers
15
Dealers

10 All of the above

5
0 0 0
0
No. of Respondents

134
 Table No. 13

Table representing the target consumers

Target No. of Respondents Percentage

Upper class 27 90
Middle class 3 10
Lower class ─ ─
Total 30 100%

Analysis

 90% the target customers are from upper class.

 10% of the target customers are from middle class.

Interpretation

 The target consumers are the upper class and the middle class.

135
 Graph 13
The target consumers

136
 Table No. 14

Table representing the kind of incentives received by

the employee

Kind of incentives No. of Respondents Percentage

Commission ─ ─
Schemes ─ ─
Free gifts ─ ─
Recognition 17 57
Nothing at present 13 43
Total 30 100

Analysis

 100% of the respondents are of the opinion that no incentives are given at
present.

Interpretation

 No incentives are given to the marketing personnel at present.

Graph 14

137
Kind of incentives received by the marketing
personnel

138
OBSERVATIONS AND
FINDINGS

139
 FINDINGS
A Summary of Findings:
The finding can be grouped together into two broad categories such as;

Specific Findings:

 This is pertaining to the objectives of the study.

General Findings:

 This is with regard to the market dynamics and visits made by the
researcher to companies having almost similar products profile.

Specific Findings:

1. The company adopts a variety of promotional methods such as paper

insertion, telemarketing, display stalls, participating in exhibitions, direct
mail, presentations and showrooms.

2. Though brand names like Other company came into the picture but the fact
reveals that there is no dominant player in the market. So every player is
vying with each other to capture a larger pie in the markets.

3. Transparency is maintained at the levels of the organization.

4. The products are marketed through direct marketing and dealers are not
involved in the marketing process so far.

5. The activities carried out by each and every department of the organization is
systematic.

140
General Findings:

1. Foreign companies can invest up to 100% in most of the industries in India.

2. With the vast array of modular option available in market, the consumer isn’t
really strapped for choice.

3. Many branded companies outsource the products because of which the

delivery time of the product ordered is stretched. In this respect, Zenith
Infotech has an added advantage.

4. “Quality never comes cheap”. This is true but at the same time, it is also true
that quality can come at a reasonable price. With regard to the quality,
products of Zenith Infotech are at par with the other players having brand
names and at the same time the products are reasonable priced.
5. With regard to products, most of the companies have standardized products
but the products of Zenith Infotech are customized. This can be rightly marked
as the strength of the company.

6. Majority of the marketing executives are male.

7. The prices of the products are reasonable though they are competitive.

8. The products are of good quality and are at par with other competitors having
brand names.

9. Modular kitchens are sold more per month. So, this area needs greater focus.

10. Reasonable pricing, customized products, quality and finishing contributes in

differentiating the products of the organization from that of the others.

141
11. Apart from price of the product, design and delivery time of the product
ordered play a crucial role in triggering out demand generation of the product.

12. Discount is given on repeat purchase.

13. The company does not adhere to stringent norm while giving discount on
repeat purchase.

14. The target consumers are the elite and upper middle class.

15. No incentives are given by the company to its marketing personnel at present.

142
RECOMMENDATIONS

This chapter lists the various recommendations and suggestions with respect to the
findings and in congruence with the objectives of the study.

Recommendations:
1. It’s overwhelming to find out that the organization works in a systematic
manner. A blend of co-ordination will definitely enhance the performance of
the company.

2. Quality clubbed with reasonable pricing and quick delivery made the product
of the company stand apart. The marketing campaign should focus on this
aspect and made according to its line.

3. The strength of the company is its customized products. This very fact must be
highlighted in the marketing campaign.

4. As the products are reasonably priced, the ambit of the target consumers
should be stretched so that middle class consumers also fit into it.
5. The company must stick to a norm while giving discounts on repeat purchase.
This will certainly help in sales promotion in order to create repeat purchase.

6. In order to have a rapid market access, the company can include dealers, if not
retailers at the moment.

7. The company should focus the marketing strategies on Modular kitchens in

the products arena as it is moving in the market rapidly.

8. The company can introduce some reward schemes so that a person is benefited
after the fulfillment and over achievement of the target. This is predominantly
done to motivate the sales force and enhance their performance.

9. The need of the hour is aggressive marketing.

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Suggestions:

1. Everyone is aware of the growth in wealth and change in lifestyle among

city’s novae riche. So the marketing campaign should be designed to woo the
customers.

2. The company should explore all possible ways in order to aggressively sell its
products. So, the company can register itself in as it is India’s biggest online
B2B plan with largest virtual directory.

3. In today’s crowed market place in order to increase the size of the pie, the
Company can adopt innovative promotional strategies. One of them can be
suggested as ‘Dream House’ road shows. It will help in creating and
reinforcing the Company’s identity in the minds of the consumer.

4. In order to be extra ordinary, the Company has to walk the extra mile. A
method named ‘Experimental Marketing’ can be adopted by the Company
wherein the prospective consumers can be invited to visit the showroom and
touch and feel the products.

5. Since the competition is intense, so there should be some value addition so as

to make the Company stand apart in the market. One such way is to improvise
the customer service.
6. Consumer is the king in the market. This fact should be deeply rooted in the
minds of the employees. The Company can adopt some ways to listen to the
customer’s feedback which should be noted in writing so that it will help in
continual improvement and make the company to be in the right track always.
Moreover, a sense of involvement will be felt by the customers whish can give
the company a cutting edge.

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CONCLUSION

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 CONCLUSION

“No man has the right to dictate what other men should perceive, create or produce,
but all should be encouraged to reveal themselves, their perceptions and emotions
and builds confidence in their creative spirit!”

This inspiring thought of Ansell Adams is well appreciated by new style marketing
organizations which understand that “boxes and lines” structures can’t drive value in
fast moving environments. No doubt, Zenith Infotech is one of them because they
believe in teamwork. Today, the need of the Indian consumer evolves beyond “roti,
kapada aur makaan”. The game in the new-breed industry is no longer furnishing. It is
about “home dressing”. To capture opportunities continually, the company must have
a continual flow of ideas. Transforming a pipeline full of ideas into a value –
generating portfolio of products and services is hard. Herein, lays the importance of
co-ordination.

In today’s crowded market place, where products and services are touting
themselves to be the best, it is vital to stand out in the crowd. From the various
channels of advertising, point of sale displays and how the employees are relating to
the customers. It is important for Zenith Infotech to establish and reinforce an
unmistakable brand and corporate identity in all channels of fickle minded consumers.
Herein, lays the importance of the Japanese proverb which says – “Thinking without
action is a daydream and action without thinking is a nightmare”.

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BIBLIOGRAPHY

147
 BIBLIOGRAPHY

1. An article of Experiential Marketing on Economic Times dated 11th

September, 2006.

2. Journal on Emotional Marketing published by ICFAI University Press,

September 2006 issue.

Websites Referred:

1. www.google.com
2. www.indianfoline.com
3. www.queszel.com
4. www.attitude.in
5. www.tridentinterwood.com

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ANNEXURE

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 QUESTIONNAIRES
1) Name:
2) Address:
3) Designation:
4) Gender:
a) Male
b) Female
5) Type of products dealing with
a) Products
b) Office furnishing
6) How are you priced?
a) High
b) Reasonable
c) Competitive
d) Low
7) Who is your major competitor?

8) What is your competitor’s strength? / What makes you ahead of him?

a) Quality
b) Brand image
c) Pricing
d) Promotional activities

9) With respect to other competitors how do you rate yourself in terms of

quality?
a) Good
b) Very good
c) Fair
d) Poor
10) Which products are sold more per week/per month?

150
11) What specific merits do you think will differentiate your products from
others?
a) Reasonable price
b) Quality
c) Customized products
d) Finishing

12) How important do you feel that the following factors play a major role in
demand generation on a scale of 1-5?
a) Price of the product
b) Awareness about the product
c) Delivery time of the product ordered
d) Presentation of the product
e) Design of the product

5- Very important
4- Important
3- Makes little differences
2- Not important
1- Does not make any difference

13) How do you promote your products?

a) Paper insertion
b) Telemarketing
c) Display stalls
d) Participating in Exhibition
e) Direct mail
f) Presentations
g) Showrooms
h) All of the above

14) A) Do you give any discount on repeat purchase?

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 a) Yes
b) No
B) If yes how much discount do you give?
a) 2-5%
b) 6-10%
c) 11-15%
d) 16-20%
e) None

15) How are you marketing your products?

a) Direct marketing
b) Retailers
c) Dealers
d) All the above
16) Who are your target consumers?
a) Elite class and upper middle class
b) Middle class
c) Lower middle class
d) Corporate

17) What kind of incentives are you getting?

a) Commission
b) Schemes
c) Free gifts
d) Recognition
e) Nothing at present

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