ASP Study Material 230206 085513

AJK COLLEGE OF ARTS AND SCIENCE
Navakkarai, Coimbatore - 641 105
Subject Title with Code: ADVERTISING AND SALES PROMOTION

Department: MANAGEMENT STUDIES
Class: III BBA CA
Semester: VI
SYLLABUS
UNIT - I Advertising: Meaning-importance-objectives-media-forms of media-press Newspaper trade
journal-Magazines - out-door advertising-poster-banners - neon signs, publicity literature booklets,
folders, house organs-direct mail advertising-cinema and theatre programme-radio and television
advertising-exhibition-trade fair-transportation advertising.
UNIT II Advertising agencies-advertising budget-advertising appeals - advertising organisation-social

effects of advertising-advertising copy - objectives-essentials - types-elements of copy writing: Headlines,
body copy - illustration-catch phrases and slogans-identification marks.
UNIT III Advertising layout- functions-design of layout-typography printing process-lithography-printing

plates and reproduction paper, and cloth- size of advertising-repeat advertising-advertising campaign-
steps in campaign planning.
UNIT IV Sales force Management-Importance-sales force decision-sales force size-recruitment &

selection-training-methods-motivating salesman Controlling - compensation & incentives-fixing sales
territories-quota - Evaluation.
UNIT V Sales promotion: Meaning-methods-promotional strategy-marketing communication and

persuasion-promotional instruments: advertising -techniques of sale promotion-consumer and dealers
promotion. After sales service-packing – guarantee - Personal selling-Objectives - Salesmanship-Process
of personal selling-types of salesman.
REFERENCE BOOKS:
1. Bolen J.H. Advertising
2. Sontakk C.N. Advertising and Sales Management
3. Davar S.K. Salesmanship and advertising
4. Baranikumar, Advertising and Sales Promotion.
AJKCAS – Study Material – Odd Semester 2022 - 2023| 1

UNIT - I
Advertising: Meaning-importance-objectives-media-forms of media-press Newspaper trade journal-

Magazines - out-door advertising-poster-banners - neon signs, publicity literature booklets, folders,
house organs-direct mail advertising-cinema and theatre programme-radio and television advertising-
exhibition-trade fair-transportation advertising.
Advertising:
Definition: “Advertising is any paid form of not personal presentation and promotion of ideas, goods, or
services by an identified sponsor.” by American marketing association.
Objectives of advertising: -
1. To do the entire selling job.

2. To introduce new product.
3. To force middleman to handle the product.
4. To build brand preference.
5. To develop new market for the product.
6. To maintain the existing market.
7. To publicize change in marketing strategy.
8. To compete with competitors.
9. To improve the morale of dealers and salespeople by indicating them that company is doing their
share of promotion.
Factors to be considered in selecting the media:-
1.Nature of product:
Nature of product to be advertised is very important while deciding the medium of

advertisement.
 Consumer goods may be advertised in newspapers, magazines, radio and television and through
other outdoor display.
 Industrial goods can be advertised in the specialized trade, technical and professional journals.
2. Objectives of advertising: -
This is one of most important factor in selection of media. The objective may be
 introduction of new product,

 to increase demand of existing product,
 to avoid competition of rivals during the maturity stage.
If advertising is for mass scale to have big impact a combination of various advertising media
may be chosen.
3. Nature of market:-
Nature of market can be determined by various factors like (i) geographical region, (ii)size of

population and (iii) the purchasing power of the population, thus the market may be either local or
national or international.
 For local market radio channel, paper insert in newspapers can be used.
 For national level newspapers and television network can be considered.
 For international level market worldwide web (www) and television can be used.
4. Circulation of media:-
If the media have greater circulation the message of advertiser will reach a large number of
peoples. Newspaper, radio and television have wide circulation but other media have limited and
selective circulation.
 If it is for local market paper inserts, Boards posters can be used,

 If its is for national wide then advertiser can go for international magazines
5.Financial Consideration:
Financial consideration must be handled very carefully as if the expenses that is made for the
advertisement is low the need of advertisement cannot be statisfied and if the expenses that is made
for the advertisement is more then the money is wasted. This factor should be considered in relation
to amount of funds available and the circulation of the media.
6.Types of Audience:- Out of the total market share
 if the large proportion is illiterates then radio or television media should be used .
 If the large proportion is literate or educated then newspapers, Magazine, displays and
direct mail may be used.
PRINT MEDIA
PRINT MEDIA
Newspaper Magazines Journals
Daily Weekly Weekly Fortnightly
News Papers: News paper are to know about the happenings that are taking place in the four direction
north , east, west and south.. Different types of newspapers are Dailies, Regional Dailies, evening Dailies
etc.,

Merits of newspapers are:-

1. The cost of newspapers is less when compared to its use.
2. Wide publicity is possible.
3. Single paper covers different segments such as men, women, youngster so selection of market is
possible.
Eg:-Business news for men, Magazine for women, and Signpost for youngster, Young world for children
4. It makes quick response

5. Regular and frequent advertisement is possible.
6. It local newspapers, preference is given to advertisement of local products.
7. Effectiveness of advertisement can be estimated.
8. Newspaper has general and wide appeal.
9. Newspaper is flexible and timely.
10. Repeat advertising is possible which makes consumer remember the product helps in retention of
customers.
11. Periodical change in size and contents is available.
12. Colourful and attractive advertisement is possible. Which are best source of market information.
Demerits:
1. They have short closing time. Today’s newspaper is tomorrow’s waste paper.
2. They have short span of life.
3. Illiteracy affects its utility.
4. Readers may ignore the advertisement as they hurry for only news.
MAGAZINES:
Magazines are published periodically viz., weekly – fort nightly or monthly. These are read more
carefully, at great leisure.
Advantage:
1. It can be directed towards a particular class of customers.
2. Exact picture of the product can be portrayed in the advertisement enabling the customers to identify
the product at the time of purchase.
3. Magazines are preserved for a long period of time Advertisement are likely to be read again and again.
Demerits:
1. When compared with newspapers circulation is small.
2. Last minute changes in copy of advertisement is not possible as it should be sent for publication well in
advance.

TRADE JOURNALS:
Trade journals are one among magazine their target customers are very specified like industrial and
finance people etc., It is concentrated to a particular group of professional groups, traders or business
persons.
Eg: Indian Trade Journal.
Merits:
1. It is having longer life than newspapers

2. It is having greater reference value of advertisement.
3. It is published for selected people. As such it is having a high degree of selectivity.
4. Cost is comparatively low hen compare to other promotional tool.
5. Advertisement in standard magazines create a national image for the product
Eg: Readers digest
6. Magazines guarantee uniformity of coverage.
Demerits:
1. It is less flexible
2. Limited circulation. It reaches only limited section of people.
3. It is not suitable of arrival of a product is not possible.
4. It is not suitable for regional advertising.
The greatest merit of trade journal as advertising media is the opportunities they offer for reaching
readers with specific interest.
TRADE JOURNALS & MAGAZINES:
Merits:
1. It is having longer life than newspapers

2. It is having greater reference value of advertisement.
3. It is published for selected people. As such it is having a high degree of selectivity.
4. Cost is comparatively low hen compare to other promotional tool.
5. Advertisement in standard magazines create a national image for the product
Eg: Readers digest
6. Magazines guarantee uniformity of coverage.
Demerits:
1. It is less flexible
2. Limited circulation. It reaches only limited section of people.
3. It is not suitable of arrival of a product is not possible.
4. It is not suitable for regional advertising.

OUTDOOR – ADVERTISING:
Purpose of outdoor advertisement is to attract the attention of the people at busy roads, and
markets. This include
(a) Posters
(b) Banners
(c) Neon signs
(d) Publicity literature
(e) Sky Advertising
(f) Sandwich man.
Posters Or Mural Advertising:
A poster is a sheet of paper pasted on a wooden or card or metal board depicting the advertising
message. Poster is the single largest form of outdoor media. The success of this depends upon two
factors.
1. Design of the poster.

2. Selection of sites
Design of poster
Poster design is outcome of fertile imagination, perfect knowledge of consumer psychology, visualization
and command over the language. It must be brief , clear simple and convincing.
Selection of sites: -
Even most attractive posters are likely to fail if it is not placed at correct site. Best results can be
had if such boards are erected in places like road crossing with traffic signals, over bridge, flyovers, parks
gardens, hotels, cinema houses, bus terminals etc., where people wait and proceed.
This is most common form of advertising. The posters are made in attractive colours in brief and
printed. The posters are nothing but a sheet of paper. The matters are depicted on it, which are pasted
on walls or boards. Nowadays computer educations use this medium for advertising. These are pasted in
bus stops, near colleges mainly to attract their target customer that is students.
The Main Advantages Are:
1. The cost is less
2. It is flexible
3. It attracts many customers
The Disadvantages:
1. It has a short life as because posters pasted in morning disappear as new posters are pasted on them.
2. It is affected by natural calamities.

Boards:
These have higher status than posters. The boards are fixed in area where people frequently
assemble. They have longer life.
Banners:
These are painted displays on clothes. It finds place at entrances of trade fair or exhibition. These
are same as boards in its characteristics. It finds place at crossing, entrances of trade fair, erected
structures built of poles or pillars.
Neon Signs:
These are popularly known as spectacular signs. Spectaculars are non-standardized and large
permanent signs that make use of elaborate light and action effect. These are usually kept at entrance
and exit of cities.
Sky Advertisement: -
Air advertising has got importance in advertising. Sky writing is the kind of publicity where
message is spread in the sky one form or the other.
Eg., Smoke writing, Kite writing.
As these are unusual and distinct they attract the attention of the public easily.
Publicity Literature:
These give information to public it is like social appeal. Small boards are kept at school zones to
indicate any company, which has its name in the board, may sponsor it and that. This is also informative
about the place and the company or shop. This doesn’t explain anything about the company just the
name is given. For example Mahaveer.
Sandwich Men:-
The advertisers hire sandwich men. They move down through busy roads and streets. They dress
in peculiar way with fancy clothes, they create certain type of musical sound and they carry posters of the
products for advertisement.
Merits:-
1. This is the best for local advertising and it has the widest appeal.
2. It speaks to every one.
3. It attracts viewers because of its style and different appearance.
4. It indirectly beatifies the place
5. It is flexible
Demerits: -
1. It has less coverage when compared to other medium

2. It sacrifices completeness for brevity so all public couldn’t understand.
3. The effectiveness cannot be measured.

4. It can be used only as supplement to other media.
Direct advertising:-
The object of direct advertising is to create a direct contact with the customers. The advertiser contacts
them through any means such as sales letter, broucher, pamphlets, etc., Through direct advertising
more or less a direct personal contact can be maintained. This has good reference value as each
customer has a personal copy. Contacts are mainly made through posts.
Sales letter: -
It is the silent ambassador from the firm speaking about the company products and consumer
satisfaction. A sales letter first sells the name of the company then the products or the services. The
success of this depends upon its convincing appealing and impelling capacity. The style of letter and the
quality of stationary and theme of letter are quite important.
These letters follows AIDA principle
Arresting the Attention
Generating Interest
Developing Desire
Actuating the Action
Book-lets:-
Booklet is a very small book consisting of not more than 8 to 10 pages. A book let is usually mailed in an
envelope. It is designed for thorough reading and maintained for further reference. It explains product
feature and product stories. IT gives details about limited number of products.
Catalogues:-
Catalogues is quite similar to the booklet in physical makeup expect it is much eager and presents wider
range of products of the business house. In addition to the details of product information catalogues are
known for giving prices and other condition.
Folders:- These are letters or cards containing details of products. These can be sent without envelope.
Publishers, medical firm, industrialists etc generally adopt these Folders. These folders are usually
attracted.
House Organs:- These are also called as store publications. Some firms may publish periodicals or
magazines, which contains information about the development of the firm, for the purpose of promoting
good wealth and moulding public opinion. These will be distributed to wholesalers, retailers and
customers free of cost. House organs must be separately designed for customer on one hand and dealers,
agents and the employees on the other hand.
Merits
1. A personal relationship with the customers can be maintained.
2. Detailed information can be conveyed.
3. Effectiveness of this system can be measured.
4. This system is elastic, addition or deletion is possible.

5. Privacy can be maintained.
6. It is highly selective.
Demerits:
1. In drafting mail specialized skill is needed.

2. It is difficult to maintain an up to date mailing list.
3. In many cases it fetches no attention of the receiver.
4. It is costly.
Broadcasting Media:
Television advertising:
Nowadays television is widely used for advertisement. As it audio-visual medium appealing to

both eyes and ears its more effective. It is an audiovisual medium of communication. Local companies
shops, IT educational institutions, use it. For all most all consumer goods manufacturers this theatre and
cinema are advantageous, medium. There are two types of television advertising they are sponsored
programme and announcement.
Merits:
1. It can create good impact on audience

2. It covers all classes of people - poor, middle and rich
3. Explanation and demonstration are possible.
4. It has wide appeal.
Demerits:-
1. Effectiveness cannot be measured
2. It is costly
3. The audiences become irritated, when more such advertising films are shown.
4. Only cine goers can be covered.
Radio Advertising:
Radio is quickest medium of advertising when compared to newspapers or magazines. It is more

popular for commercial film. It makes appeal to ears. Consumers are informed about the local
products through local bands. It reaches the place where even newspaper cannot reach so
coverage is wide.
Advantages:
1. Coverage and appeal are wide.

2. It is best means for illiterate people.
3. It is flexible and timely.
4. Spot programme can be arranged

Disadvantages:
1. It is quite costly.
2. Only limited time will be available.
3. Usually audience gets irritated when programmes are disturbed by advertisements.
4. The effectiveness cannot be measured.
Cinema and Theatre Advertising:-

It is an audio-visual medium of communication. Local companies shops, IT education institutions, use it.
For all most all consumer goods manufacturers this theatre and cinema are advantageous medium.
Merits:-
1. It can create good impact on audience.
2. It covers all classes i.e., poor, medium and rich.
3. Explanation and demonstration are possible.
4. IT has a wide appeal
Demerits:-
1. Effectiveness cannot be measured.
2. It is costly.
3. The audience are irritated of such group of advertisement.
4. Only cine goers can be covered by it.
Other Forms
1.Exhibition:
The idea behind the exhibition is to promote sales of goods exhibited. Big or small manufacturer reserves
stalls in the exhibition area to exhibit their products. It is a collection of show rooms of different
manufacturers under a single roof. It is a huge gathering of manufacturer for the purpose of displaying
and demonstrating and booking of orders for their latest product. Exhibitions are to attract dealers and
consumers towards the latest products in the line by providing detailed information and demonstration.
2.Trade Fair
It is a huge fair where the display and demonstration activities are combined with fun or variety of
entertainment. Trade fair is more than an exhibition. The intention of trade fair is to provide more fun
and entertainment to the visitors and then to take full advantage of such gathering for business purpose.
Merits;
1. Variety of product display in one roof.

2. Geographical selectivity is possible .
3. Demonstration is possible.
4. It avoids middleman.
Demerits:
1. Demographic selectivity is not possible.

2. Time constrain.
3. People come for entertainment so concentration on products is deviated.

3.Transportation Advertising:
There are two types of Transportation advertising.
1. Inside transit
2. Outside transit
(a) Inside Transit:
This is used in bus and trains. The cost is medium it is quarterly half yearly or annual basis.
Geographical selectivity is possible.
Merits
1. Expense incurred is comparatively low when compared to broadcast media.
2.Geographical selectivity is possible.
Demerits.
1. Reach is low.
2. Does not give quick result.
3. Demographic selectivity is not there.
(b) Outside Transit:
The outside of the vehicle such as bus and train are used as board to advertise their product. This attracts
both the traveler of the vehicle and the public in the surrounding area where the vehicle move.
Merits:
1.Low cost
2.Geographical selectivity is possible.
3.Reaches diverse audience.
Demerits:
Lack demographic selectivity and only through repeated reference it has effectiveness.
Possible objective type question
1. Advertising is defined as communication that is -------
2. Advertisement has longest life is in ------ media
3. An ‘earpanel’ advertisement can be found in ------
4. Promotion is one of the components of --------
5. ------is unpaid form of communication
6. Television is ------ type of media

7. In product life cycle , heavy advertising is necessary in -------------- stage
8. Posters are also called as---------------
9. Sandwich men is a form of --------- advertising
10. In A-I-D-A model ‘D’ refers to --------

Unit – II
Advertising agencies-advertising budget-advertising appeals - advertising organisation-social effects of
advertising-advertising copy - objectives-essentials - types-elements of copy writing: Headlines, body
copy - illustration-catch phrases and slogans-identification marks.
ADVERTISING AGENCIES:
An advertiser firm may organize the advertising campaign through its own advertising department or may
give the whole or part of advertising work to a group of experts known as advertising agency.
This advertising agency is an independent concern acting as a specialist in advertising.
It is the organization that provides specialized knowledge skills and experience needed to produce effective
advertising campaign.
According to American advertising agencies association, An advertising agency is
 An independent business organization.

 It is composed of creative and business people.
 It contains individuals specialized in developing, preparing, and placing advertising or advertising
media.
 It serves the sellers seeking to find customers of their goods and services.
Features of advertising agency:
1. It is an independent organization.
2. It is composed of creative and business people.
3. It develops prepares and places advertising.
4. It works for sellers.
Functions of advertising agency:-
 The client and the media owners are served by the advertising agency.
 To perform such functions of marketing ,advertising agency warrants a keen understanding of the
complete marketing and selling problem of advertiser as well as a clear knowledge of the markets
media and consumer psychology.
1. Functions for the clients 2. Functions for the media owners
Functions of advertising agency
Functions for the clients Functions for the media owners

Functions for the clients

1.It replaces the advertisement department
2. It provides expert viewpoint
3. It brings in economy and excellence
4. It shares its rich experience
Functions for media owners:-

1.It assures risk free business
2.It takes the sales job
3. It undertakes the advertising scheduling
Functions for the clients: -
1. It replaces the advertisement department:- An advertisement agency ,practically eliminates the need for
an independent advertising department that is costly to start and operate. Agency does all the work based
on clients feed back or requirements. This makes the advertising manager concentrate on other important
problems.
2. It provides expert viewpoint:- Advertising agency is an outside organization with professional touch. It is
paid for most accurate and reliable results, so it analyses the client’s problem with no bias towards any
particular organization. As it has team of experts with independent research mind, it puts companies’ issue
in actual situation and analyses it.
3. It brings in economy and excellence:- An agency is capable of doing the advertising job more economically
and with excellence as it is professional organization. It has many experts and creative people in it. It can
also hire the services of talented men and women for framing layouts, production supervision, space and
time buying planning etc., All these work are done by people with creative mind and professional touch.
4. It shares its rich experience:- Big agencies have branch all over the country or world and are placed to
solve the problem of clients. What ever may be the problem, the experienced agency has ready and
effective solution. It is because the agency has been handling thousands of such units with unique problem
under different conditions
Functions for media owners:-

1. It assures risk free business:- As agency is the intermediary between the clients and the media owners ,it
is the media owner who are benefited buy the services of agency that buys space and time for large
number of clients. As the agency pays the media owners in the first instance there is absolutely no credit
risk for the media owners as it is shifted to the agency.
2. It takes the sales job:- Clients accounts are taken care by advertising agency so it is no more problem for
media. All these jobs are done by advertising agency itself in an economic and effective way. The media
approaches the advertising agency for details about their clients as agency maintain ready accounts of
hundreds and thousand of individual advertiser. It is the wholesaling of buying space and time by the
agency that is worth appreciating.
3. It undertakes the advertising scheduling:- The time for the release of advertising is important from the
angel of advertiser who is naturally interested in getting best for the amount spent. Advertising agency
take the responsibility of time with ease and interest.

Advertising budget: -
A budget is any estimate of future needs arranged according to an orderly basis covering some or all the
activities of an enterprise for a definite period of time
Characteristics of advertising budget:-
1. It is prepared in advance and is based on a future plan of actions.

2. It relates to a future period and is based on objective to be attained.
3. It is a statement expressed in monetary units prepared for the implementation of policy framed by
the top management.
Process of Advertising budget:- The advertising budget is a statement of the advertising plan in financial
terms. It is allocation of available funds to various advertising function after determining the total funds
available for advertising purpose during specific process
(A)Preparation:- The estimate of total expenditure on advertising is based on
 Information of market
 Product
 Pricing
 Media etc.,
Budget appropriation is first step in budgeting. Budget appropriation is determination of total funds
required. This determination depends upon existing sales, units of sales,. expenditure on advertising
and affordable capacity. Next step is to specify expenditure to be incurred on each function of advertising.
This allocation of appropriation is based on contribution to advertising and the attitude of the management.
Thus total budget is cut into small budget for each advertising function. Advertising budget are prepared for
each market segment time and geographical area.
(B) Presentation: - The budget prepared by advertising manager is presented to marketing manager and he
will decide about the contribution to each budget components . The budget is modified on the basis of
prevailing marketing condition and management requirements. Then the financial manager is consulted to
fix budget and budget components. It is modified in light of sales forecast, sales opportunities and the role
of advertising in capturing market share.
(C) Budget execution:- Cost of advertising, production, purchase of advertising time and space are
considered. Constant analysis and periodical checks to determine whether advertising norms are
implemented and budgets are properly utilized. As budgets are prepared in normal marketing condition
when there are changes, budgets are changed accordingly. Contingency funds are provided which are used
when changes prevail.
(D) Control of Budget: - The advertising budget should not be less than advertising expenditure. No excess
amount should be spent unless the advertiser is constrained to do so in the light of existing condition. The
planned expenditure and the actual expenditure should be on parallel line. The budgeted expenditure on
advertising should be used only for advertising purpose and not for other sales promotion strategies. When
the budget is used for other promotion like sales promotion then it is called as budget attrition.

Factors influencing the size of Advertising budget:-
There are several factors that form the basis for arriving at the advertising budget and its size. The major
factors are,
1. The objectives to be attained,

2. The coverage Expectations,
3. Product class,
4. The stages in product life cycle,
5. The prevailing economic conditions,
6. Age of the company
7. The size of the company,
8. The funds available,
9. The competitive activities
1. The Objectives to be attained:- Objective acts as standards for advertising. Different objectives brings
about increase in sales, introduction of new product, supporting sales force or promotion reaching
inaccessible consumers, entering a new market, improving dealer relations, expanding industry’s sales,
building up goodwill, counter acting competition and so on. It is particular sales objective on the set of
objectives that shapes advertising budget. Higher the importance given to a goal or a set of goals more
will be the willingness to spend the funds in achieving them.
2. The coverage expectations:- Advertising coverage means number of person to be reached. It depends
upon the reach ability of target audience through different media and media vehicles. The coverage
depends upon the nature of market enjoyed by the product i.e highly concentrated market or widely
scattered market. Industrial goods market are usually highly concentrated and limited to certsin
geographical area. In such cases journals take care of identifying, maintaining and extending the
demand. When consumer durable are considered the market are widely scattered and very large so the
budget also will be huge.
3. Product class:- When consumer goods are considered it is classified into three categories namely
convenience, shopping and specialty. In case of convenience goods it needs large advertising
expenditure because of their intensive distribution and heavy dependence on mass advertising to sell in
advance to prospect before the purchase. Fashion goods require less advertisement as buyer judge the
quality of these products themselves while they move for purchase from shop to shop, service goods
such as automobile, fridges, washing machine etc., needs heavy advertising and personal selling effects.
For specialty goods normal spending on advertising is needed.
4. Stages in product cycle:- The four phases of life-cycle are introduction, growth, maturity and decline. In
introduction stage and growth stage more amount is spent on advertisement so, the budget is usually
high. At maturity and saturation stage the price appeal that works the more than the advertisement so
the budget size is usually small..
5. Prevailing economic condition:- The economic system faces brisk and slack phases which are referred as
boom and slump phase of business cycle. During slump phase majority of company cut back the
advertising budget and during the boom period they expand their budget. Only few companies view
advertising as investment having long-term long term encouraging effects. Thus demand and supply
situation decides size of budget.
6. Age of the company:- A company that is know to the people have advantage in introducing new product
as people readily accept it in the light of its past dependable performance. But a new company, to
introduce a product needs high advertising budget to introduce it to the people. An experienced
company can decide precisely how it should spend on advertising based on past experience.
7. Size of company: - Bigger company with vast financial resources have definitely liberal advertising
budget. If big company decides to spend only 3% of its sales for advertising it will be substantial and
thus desired results can be obtained, but for a small company it would be 24% to30% of its sales to make

the amount equal to that of big company. This will be great strain for small company. Thus advertising
budget depends upon the size of the company.
8. Funds available:- Irrespective of a companies age and size, the absolute limits for advertising budget
depending upon the affordability of the company. Finance is a major key factor or principal that decides
the size of advertising budget.
9. Competitive activities:- The success of the advertiser depends on strategic approach and spending. This
is possible only when advertiser knows how much is his competitors spending? Most of the companies
use the competitor’s budget as model for budget purpose
METHODS OF DECIDING ADVERTISING BUDGET:-

Determining the appropriate advertising outlay is the most difficult part. So to decide the
advertising budget following methods are used.
(1) The percentage of sales method,

(2) Objective and task method,
(3) Competitive parity method,
(4) Affordability method,
(5) Unit of sales,
(1) The percentage of sales method:- This method is widely used for appropriation purpose. But there
are several variations in the actual application of this method. The percentage may be based on (a) last
year’s sales or (b) On the estimated sales for coming year (or) period or (c) combination of these two. In this
method the advertising funds required are equal to rupees sales multiplied by expected percentage.
Example: - It estimated sales is for 20 million and the expected percentage is 3 then the funds to be decided
for advertising will be Rs 0.6 million.
Merits:-
1. It is simple to calculate.
2. It works on affordability.
3. It is acceptable to tax authority.
Demerits:-
1.It is static as it does not respond to changing marketing condition.
2. It does not consider competitor activity.
3. IT does not consider stages of advertising.
2. Objective and task method:- This method is gaining importance as it directs the attention to the
objectives to be attained. It decides the appropriation of advertising fund on the basis of the objectives to
be attained and the tasks involved to attain it. This method consists of three steps.
1. Defining the objective in quantitative term,

2. Outlining the tasks to achieve the objectives,
3. Estimating the cost of performing these tasks.

Merits :-
1.It is base on objective,
2. It provides concentrate means for evaluation so actual can be measured with standards so corrective
action can be taken.
Demerits:-
1. It does not consider the relationship between gains of advertising and cost incurred which is most
important to be considered.
2. It does not consider the affordability of the company.
(3) Competitive parity method:- This method sets its appropriation by relating it to expenditure pattern of
major competitor or competitors. It may be matter of matching the actual expenditure of competitor or to
maintain same set or relationship between the expenditure of the firm and that of its competitors.
Merits: It is simple and it has the advantage of using the competitors who has rich experience in the field.
Demerits:-
The competitor objective may be different from their own objective so it becomes misfits. It sets up
competitive war.
4.Affordability method:- This method considers the affordability of the company tp spend on advetising in
the light of prevailing business condtions and the resources that are available. This implies that
advertisement appropriation is possible only when the other more important and urgent need are met.
Merits:- It is practical, simple and flexible
Demerits:- It is short-sighted. It considers advertisement expense as expenditure than investment. It does

not consider the objectives and competitors.
6.Unit of sales:- The unit of sales determines the size of budget. A fixed amount per unit is allocated for
advertising purpose. The unit of sales is the basis of budgeting for durable and industrial goods. The unit of
forecast sales is basis for appropriation.
Merits:- 1 It is simple to calculate.
2. It makes accurate prediction of the advertising to sales ratio.
Demerits:-
1 It is inflexible.
2. It does not consider competition or economic condition.

Selection of advertising agency:
Today all goods starting from convenience goods to luxury goods need advertisement. Most of the
firms get the assistance of advertising agency to advertise their products because of its experience in

particular field. Now there are many agencies that are emerging and selection among them is an important
decision. To take appropriate decisions following factors are considered.
1. Full service agency and part-time agency:- Full service agency is involved completely in the
advertising functions. It has large number expert employees. The organization is typically useful for
performing advertising activities.
 Part-time agency offers service on project basis. The agencies perform various outside activities and
co-ordinate the activity of advertiser and media men.
(2) Compatibility:- The selection of an advertising agency depends upon the compatibility of the agency.
The need of the company should co-ordinate with the service provided by advertisement agency.
The advertiser visits several agencies and chooses the best agency on the basis of its merits, its
method of serving customers and using available opportunities.
(3) Agency Team:- The agency team includes management, specialists, market researchers copywriters,
media experts and production managers. The attitude, thinking, experience and personalities of the
team members should be co-operative in attaining the objective that will create positive
effect on selection process.
(4) Agency stability and reputation:- The agency that has been in existence for longer period is usually
selected as because the stability of existence prove the quality of service that is rendered. Any
advertiser with a sense of self-respect and status is naturally concerned with reputation. So
reputation plays as an important factor in selecting the agency.
(5) Services:- The services rendered by the agency are evaluated and plays vital part in choosing best
advertising agency. Cost-accounting, general agreements, project-estimates and other services
performed by the advertising agencies are considered to evaluate their efficiency in performing
advertising jobs. The greater the range of agency services the more effectively it can serve the
client’s needs. The agency serves its clients by its potential capacity for advertising, sales promotion,
media placement, public relations and market research.
(6) Creativity:- Creativity is important feature of advertising. If an advertising agency is capable of great
creative effects it is sure to be selected out of other agencies. Style, clarity, impact, memorability
and action are taken into consideration while selecting an advertising agency.
(7) Problem solving approach:- The agency that has problem solving approach is considered to be
superior and useful. The importance of choosing the right agency depends on its problem solving
approach, compatibility, balanced services, responsiveness talent and reasonable compensation.
(8) Suitability:- Suitability of an agency depends upon
(a) Competing account:- No advertiser will give his advertising work in the hands of agency that has its
competitors accounts.
(b) Location:- Majority of advertiser prefer that agency that has its office in the vicinity for
administrative convenience.
(c) Size of agency:- large or small agency.
Large agency have perfection wider range of skills and numerous facilities and services. Limitation are
smaller advertiser are not attended costly service and lack of personal touch.
On the other hand small agencies are more ambitious and eager, more responsive than the large ones.
The merits are quick response to needs and they give personal attention to each customer, as the
number of customers is less. The limitations are lack of specialization and lack of quality service.
(9) Record:- Success of advertising agency is best reflected by its records. The records include both
present past clients’ records. The details that are considered about Clients Record:- Success of
advertising agency is best reflected by its records. The record includes both present and past clients.
The details that are considered about present clients are

 Who are present clients?

 What are their problems?
 What service the agency did to solve the problem?
 How big are the advertisers?
 How long are they with the agency?
 Why only this agency
The details about the past clients are: -
 Who are they?

 How long they stayed with the company?
 Why did they leave the agency? These details of present and past clients are of great assistance to
advertiser to assess the experience of the agency.
(10) Suitability: - Suitability of an agency depends upon

(a) Competing account: - No advertiser will give his advertising work in the hands of agency that has its
competitor’s accounts.
(b) Location: - Majority of advertiser prefers that agency that has its office in the vicinity for
administrative convenience.
(c) Size of Agency: - Large agency and small agency.
Large agency: - These have perfection, wider range of skills and numerous facilities and services.
The greatest disadvantage is smaller advertiser smaller advertisers are not attended, it is usually costly
and lacks personal touch.
The small agencies are more ambitious and eager, more responsive than the large ones. The merits
are quick response, attentive to personal needs. The limitations are lack of specialization, lack of
quality in service.
(11)Clients Record:- Success of advertising agency is best reflected by its records. The record includes
both present and past clients.
The details that are considered about present clients are
 Who are present clients?

 What are their problems?
 What service the agency did to solve the problem?
 How big are the advertisers?
 How long are they with the agency?
 Why only this agency
The details about the past clients are: -
 Who are they?

 How long they stayed with the company?
 Why did they leave the agency?
These details of present and past clients are of great assistance to advertiser to assess the experience of the
agency.

Thus after considering all these factors the advertiser selects the agency that best suits his requirement.
Advertising appeal:-
Appeal is the central idea of an advertisement. An appeal is earnest request or a plea to the prospects.
Every advertisement is an appeal to buy and use the product of services supported by reasons to buy and
use.
Essentials of good appeal:-
a. It should be thematic: - A good appeal should have good theme behind it. Making an appeal is telling
the product or service story. The stuff of the story is important that the way it is told. The specific
features, benefits and performance superiority are to be presented not necessarily in high sounding and
decorative words.
b. It should be communicative:- When an appeal succeeds in telling what it intends to convey it is said to
be communicative. A message is said to be well communicated if there is no difference between what it
wants to say and what it said.
c. It should be interesting:- An appeal should be capable of creating curiosity and interest and that
interest is to be restrained longer. Prospects interest in advertisement depends on the way the appeal
is made or the manner in which story is told.
d. It should be believable: - The theme should be credible. It is the truth that increases the validity and
believability of an advertisement. Even while talking the truth one is to be very careful to avoid its
negative side of impact on the prospect.
Different types of appeal: - There are three types of appeal they are
1. Rational appeal,
2. Emotional appeal &
3. Moral appeal.
1. Rational appeal: - This appeal is to audience self – interest. They show that the product will produce
the claimed benefits . Message demonstrating a products quality, economy, value or performance.
It is widely believed that industrial buyers are most responsive to rational appeal.
(12)Emotional appeal:- Attempt to stir up negative or positive emotions that will motivate purchase
,arketers search for the right emotional selling proposition. The product may be similar to the
competition but have unique associations for consumers. Communication should appeal to these
associations. In addition, communicators have worked with negative appeal such as fear, guilt, shares
to get people to do thins they should. Eg., Prudential ICICI, Banish
(13)Moral appeals:- These are directed to the audience in sense of what is right and proper. They are often
used to support social causes such as cleaner environment, better race relations and equal right for
women. Eg ., All documentary films
Classification of advertising appeals:-

Product or service related appeal:- By its nature product or service related appeal focus on the product or
service features. Some or all aspects of product characteristics are described. This can be intensively divided
into three as
(a)Product competitive advantage appeal:- These are very common appeal used in health drink
advertisements. In such advertisement competitive product or services is referred indirectly. Competitive
advantage depends upon the performance of the product.,
(b)Product features appeal:- All the advertisement that talk of product or service features dominantly comes
under this category of appeal. However these advertisements neither compare themselves with those of
competitors nor they talk about their popularity or price. Eg, Vanish (strain remover)Goodnight coils that
work for 9 hours while other coils work for 6 hours.

(c)Product price appeal:- In retail advertisement product price appeal are made. The advertiser come out
with an offer at a particular price or reduced price. The outstanding feature of such advertisement is that
price appeal constitutes single most significant appeal when compared with other appeal. Eg . Festival
discount offers
(d)Product news appeal:- This appeal do provide news about the product and this news spells out that the
product are new or modified or that they are improved in some way or the other.
(e)Product popularity appeal:- Such appeals insist in saying that the product or service is one which is widely
used by a large majority and it is very popular and is right on top of all the competitive products, Such
appeals intend that the reader or listener or viewer should use it because it is proven product or service. Eg,
Metal furniture = Godrej, Baby products= Johnson & Johnson
(f)Product generic appeal:- Product generic appeal means general appeal made by the industry or a specific
group of producers in common . These advertisements are designed to create primary demand rather than
selective demand. Eg, National egg co-ordination committee.
2.Consumer related appeal: - These appeals are directly made to consumer benefits. The basis emphasis is
what the product or service does for consumer. These appeals mainly emphasis on consumer satisfaction.
Five such appeals are
(a)Consumer service appeal: -The advertisements with service appeals instruct the consumer as to how to
use it for best results. Either they tell the consumer as to what to do with the product or the service or
explain clearly various ways in which product or service may be used for increased satisfaction. Eg, Pressure
cooker
(b)Consumer saving appeal:- The consumer savings appeal extend the consumers the opportunity of saving
money or reduce expense on the product though its use. These appeals do not emphasis on price aspects.
They stress the service the consumer gets by using two units can be obtained by using one unit of the
advertiser product.
(c)Consumer self enhancement appeal:- The advertisement with this type of self-enhancement appeals
asserts that the use of particular product enhances or improves some inherent quality of the user . These
appeals suggest that the product deliver value not because of their benefits but because of their benefits but
because of their ability to add personal dimension to user. Eg, Fair ever-Cosmetic cream.
(d)Consumer fear appeal:- Consumer fear appeals are fruitfully used in advertisement by portraying the
threatening situation which can be resolved through the use of a product or service. The fear appeal
advertisement shows some sort of fear-provoking situations and assures protection against such fear. Eg,
LIC
3.Non consumer and non product related appeal:- There are two types under this category(a)Corporate
citizenship appeal: - Advertisement with such appeals attempts to portray the company’s achievements or
contributions to the mankind.
(b)Investor Solicitation appeals: - It is kind of advertisement addressed to investment community. The
purpose is to appeal to the potential investor as to why he or she should invest his or her fund in the
company.
SOCIAL ASPECTS OF ADVERTISING: -

1. Advertising and cultural value. Culture is the most fundament al determinant of a person’s wants and
behaviors. The child growing up in a society learns a basic set of values, perceptions, preferences and
behaviors through a process of socialization, involving the family and other key institutions. Culture
shapes our attitude towards products. These cultural values distinguish one social group from another.
Each culture contains small groups of sub-cultures that providemore specific identification and
socialization for its members. Four types of ub-culture are nationality groups, religious groups, racial
groups and groups by geographical area. Advertisement, which is not consistent with our culture, is said
to be bad taste. According to Indian culture we expect advertising to promote socially oriented
objectives such as physical fitness, the elimination of drug abuse, prohibition of alcohol as these are
basic of our culture. Yet there are commercials of mass media that are against good taste. Some time
sub-cultural values become outdated. Eg, Getting married is core cultural value whereas getting married
at early age is sub cultural value. Forces like advertisement can change this type of sub cultural values.

Thus it is implied that cultural values can be changed by advertisement and care should be taken to
make positive changes.
2. Development perspective: Goal of mass advertising is to capture the national and international market.
This goal acts as the link between the national and international market. From advertisement masses
learn about appliances used in the home that, the changing style of clothes, the books to read and film
to see. It is not about the product and services alone the people learn from advertisements. They also
tend to change the life style. i.e. A particular material possession is elevated to social norms so that
people without it are made to feel deprived. Advertising thus reinforces a ‘consumerist culture’, which is
marked by the urge to spend and to acquire. Advertising does reflect the changing cultural values of a
society. At times, advertisement induces people to change life style and thus create development
perspective.
3. Advertising and standard of living;- The product used by people in their day- to- day life is an index of
standard of living. It refers to the consumption pattern of the people reflecting the conditions of living in
a country. While spreading information and stimulating a desire for better things in life, advertising is
doing a great service. IT generates demand and purchasing power and enhanced income. Increased
economic activity thus indirectly leads to higher standard of living. The modern office, which now use
products unheard a decade ago are a silent testimony to what advertising can do to improve our
standard of living.
4. Ethical issues in advertising;- Ethics is concerned with good and bad, with reference to a particular
culture at a given point of time. It represents a set of moral principles and values. Ethical advertising
contains truth not absolute truth but socially accepted standards of honesty as truth. Business morality
is derived from social morality. Truth in ethical advertising is valued because if an advertiser indulges in
false, it will be spotted soon or later which will definitely give negative impact.
5. Harmful effects in advertising: - Advertising has harmful effects on society by introducing illegitimate
relationship, bad habits such as smoking, drinking etc., Some advertisements are usually of bad taste i.e.
it has adverse effect on social tradition. The bad taste is indicated in presentation technique of
advertising. Taste is reflection of the prevailing standards of society thus they offend the public and
create bad taste. Some advertiser adulterate norms of society thus they offend the public and create bad
taste. The advertisements that have bad taste usually make people want things that they should not
have. Advertisement has more harmful effects on children who are innocent and they couldn’t
differentiate real from imaginary things. To avoid harmful effects advertisers should abide by the
accepted rules of decency and taste of majority of audience.
6. Confuses the people:- Advertisement has ability to manipulate consumers. Advertisers employ
sophisticated and psycho- scientific methods to exploit the sentiments and emotions of consumers.
Developments in product line and advertising have led to proliferation of brands of product. Thus
multiple brands use multiple aspect of advertising behavior, which often confuses consumer.
7. Forceful selling: - Advertiser try to sell those goods which are not required and also inferior products to
consumers. The advertiser creates wants and converts the needs into wants. They have the power to
awaken desires and add it to subconscious wants. These wants created by advertisement are not really
felt by customer.
ADVERTISING COPY
Copy is the soul of advertisement. An advertisement copy is all the written or spoken matter in an
advertisement expressed words or sentences and figures designed to convey the desired message to target
customers. Written content of advertisement is called as copy and visual part is called as illustration.
OBJECTIVES OF ADVERTISING COPY:-

Objectives of copy is of two type (a) Direct action & (b) Indirect action

(a) Direct action:- Direct action objective of a copy is to cause immediate direct action on part of
consumer. As soon as advertisement is read by the prospect he respond to it and decides to buy the
advertised product or service. Retail advertisement and direct advertising aims at direct action. USP’s
(Unique sales proposition) are used to generate quick and instant buying action.
(b) Indirect action: - Indirect action on part of prospect establish favorable attitude towards the co., and
such favorable response may be delayed. It prints brand or the company name on the mental frame
of prospect that they are to buy the product of advertiser than the competitors. The prospect knows
about the product and the company and will buy it in course of time.
Qualities of good advertisement copy:-
1. It must be simple:- It must be simple and easy to understand. A copywriter must use short, simple
and understandable word and sentences. Intelligent person and non-intelligent person must
remember the words or sentences used. It should arrest their attention.
2. It must be informative:- The copy must give information which the reader wants to know about the
product in order to buy. Hence it must give real fact. The information must be natural and
straightforward.
3. It must be concise and complete:- The copy must be complete and brief. If it is incomplete the
advertisement does not fulfill its objective. Brevity is essential. Completeness should never be
sacrificed for brevity.
4. It must be enthusiastic:- Written form of salesman’s talk is copy so it must be enthusiastic. The copy
must tell the reader what the product or merchandise will do for him.
5. It must be honest:- It must be honest and truthful towards the public. It the copy is untrue then the
confidence and value of publicity go down. The publics who are final user of the products are the
witness of the product quality. If firm hides the fact not exposing the real position, the product tells
its own weakness to the user . Which will make the product disappear from the market and firm will
be closed.
6. It creates an urge:- IT must reveal unknown or unseen features of the products. The public should
be informed of product’s use and merits by advertiser. Its aim must be to make the prospect trust
the firm and its product.
Types of advertisement copy:-

1. Institutional copy
2. Reason why copy
3. Human interest copy
a. Humorous copy
b. Fear copy
c. Story copy
d. Predicament copy
4. Suggestive copy
a. Direct suggestive copy
b. Indirect suggestive copy
5. Expository copy
Effective advertisement copy is one that arrests, informs, impress and impels the reader.
1. Institutional copy:- Institutional copy sells neither the product nor the service but the name of the
business house or the advertiser. The aim is to build the sound reputation for a selling house or its
departments. It seeks to build goodwill through its philosophies, objectives, policies toward
consumers, employees, government and the company with a favorable attitude.

2. Reason why copy:- IT offers the reasons as to why he or she is expected to buy or go in for a
product or a service of advertiser. By stressing the product points of difference and superiority it
attempt to convince and persuade the reader in reference to those of rivals. It appeals straight to
intellect or the judgment of an individual rather than emotion or impulses. IT tries to prove the
product superiority by means of evidence in the forms of performance test, record, testimonial etc.,
3. Human-interest copy: - Human-interest copy appeals to the emotions and the senses rather than the
intellect and judgment. Sympathy affection, love, fear, humors, curiosity and other emotional
appeals are used to the sense of sight, touch, taste, smell and hearing. Human-interest copy tells
about the products. Human-interest copy takes several forms but four are very important.
(a) Humour copy,
(b) Story copy,
(c) Fear copy, &
(d) Predicament copy
(a) Humorous copy:- A humour copy fully exploit the sense of humour. Humour is that quality which
produces amusement, laughter, wit, fun and excess laughter. It can be most successful in
advertising provided it is used carefully. Even the slightest carelessness I writing such copy will turn
it offensive and vulgar having repelling response.
(b) Fear copy:- Fear is normally caused by a feeling of insecurity. A fear copy appeals to the sense of
fear and arouses keen interest in protecting property, life and day to day needs.
(c) Story copy:- Telling stories is an art. Copy writer is creative and hence very effective story teller.
This story, rather interesting, is of product or a service and hence of a particular producer or the
house of the advertiser. A copy worth calling story copy must be capable of creating dramatic and
vivid impact about the product or service or the institution so advertised.
(d) Predicament copy:- Predicament copy usually overlaps the other three kinds of human interest
copy. It highlights a consumer predicament discovers a solutions, resolves the predicament and
suggests the product use.
4. Educational copy:- The copy designed to educate the prospects is known as educational copy. It
may be introductory or missionary. When product is introduced for the first time copy used is teaser
copy, such an advertisement has series of advertisements run in newspapers at close intervals and
containing little or no identification of the advertiser. The purpose is to arouse the curiosity of the
reader and to stimulate interest in the forthcoming new arrival or event. On the other hand
missionary or remainder copy depicts possible improvement in existing product in terms of
structure, colour, size and utility. As the product is known it is sufficient to remind the prospect or
consumers of its existence and improvement.
5. Suggestive copy:- Suggestive copy tries to suggest to suggest or pinpoint or convey the message of
the advertiser directly or indirectly to the reader.
(a) Direct suggestive copy: - Direct suggestive copy makes statement about the product or service
straight to the target audience. Rather it appeals to prospect directly. It does not tell him or her
to buy it.
(b) Indirect Suggestive copy:- The advertising theme or message is not addressed directly to the
reader. It talks on behalf of readers who read and grasp in their own interest. It indirectly
suggest to buy the product.
6. Expository copy:- In this copy facts are given in very simple and clearway so that there is no need for
interpretation.
STRUCTURE OF AN ADVERTISING COPY:-

In print media, the advertisement copy is made up of the components like, headline, sub head lines,
body of the copy, illustration, slogan , etc.,
Copy of head line:- Head line is the first door or the main door to the entire advertisement. Mr. Loyd
Herald had defined headlines as “the name given to the display line which appears at the top or near top of
the advertisement, it acts as a sign post in stopping the reader and impelling him to read the message. IT is a

word or phrase or a sentence printed in large size letters and implying the message underlying the
advertisement”. Headline is a due or signal and not a caption to the whole advertising message.
FUNCTIONS OF HEADLINES:- Head- line is so important that it makes clear distinction between the success
or failure of an advertisement. It is the single most important element as it plays a role of most important
element when compared to all other element.
Eg., Full of happiness at half the price (Kovai Kumaran Silk)
(a) To attract the attention of readers:- The first and foremost function of advertisement is to attract
the valuable attention of readers. Headline is the most widely read chunk of the advertisement. It
links the advertiser and the prospect by arresting the attention of stopping him at it.
(b) To induce the reader to read the text:- Head line is the telegram that decides the reader whether to
read or not to read the text or the details of the message. It pulls the readers through the subject
matter of an advertisement. A true headline is one rthat impels the reader to go through the script
or read between the lines with its pulling power.
(c) To give concise selling message:-Head line strikes at very roof of message and conveys the gist of the
detailed advertisement. IT is the summary account reduced to a sentence a phrase or a word. Those
readers who have neither time nor patience to go through the entire text can make it out by just
reading the headlines.
(d) To suggest easy selling message.
(e) To create self interest among the readers.
(f) Some new information that is news about the product is provided to customer.
(g) Having brand name in headline can create brand image.
(h) The USP’s can be used in headline, which differentiate the product form competitors.
(i) It creates curiosity about the product.
(j) It induces the reader to read the text.
GUIDELINES FOR EFFECTIVE HEADLINE:-

1. Headlines must create self-interest.
2. Headlines should be framed such as it gives easy solution to satisfy the need of customer.
3. News should be included in headline.
4. The headline should always target prospective customers.
5. Selling promise must be included in the headline.
6. Headline should arouse curiosity towards the product.
7. It should be clear
8. It should be brief.
9. It should be original
10. It should be relevant.
11. It should be specific.
TYPES OF HEADLINES:-
1. Informative headline:- Informative, news or message headline feature the most important selling
point of the product or service. The news headline summaries the details of fact. Facts about
the product or service are new as long as a substantial number of prospects are not aware of
them.
2. Provocative headline:- Whenever a product or a service is introduced for the first time, a
provocative headline makes the readers curiosity to a degree not possible with other type of
headlines. An advertisement that gets the reader’s interest by arousing his curiosity should
proceed immediately to satisfy it else the reader feels that he has been tricked.
3. Selective headlines:- IT is addressed to a particular segment of the total readership of a
publication. Selective headline is directing their appeals to those for whom the product holds a

special interest. By reducing the size of the audience that it addresses, it improves the chances
of attracting a particular group. Eg. After graduation what?
4. Label headlines:- These headlines identify and name the product with its price. IT is used when a
prior interest in the product has been so established that the name and the price alone are
sufficient to remember. a label headline is sufficient to capitalize on points of name and price of
the product in a very limited place or space..
Functions of slogan
1. IT replaces headline :- Slogan sunnarise the text natter. The gist is reduced to a word or a phrase or
a sentence at the most.
2. It communicates faster:- Slogans have the power of presenting the idea rapidly and concisely. IT has
a great remainder value, it can be retained for longer period. Slogans are easy to remember as it is
catchy and piercing.
3. It speaks of company personality:- Slogans are normally given at the end of the advertisement and
projects nature of company, its philosophy its objectives, its sense of social responsibility, its sense
of belonging its efforts and its contribution.
Characteristics of good slogans are:-

1. The slogan is simple and straightforward.
2. IT should carry some pleasing sales idea.
3. IT conveys more in a compact form.
4. Good slogan finishes the job in 7 to 8 words.
5. Many ideas give rise to one slogan.
Slogan’s value depends on what it makes the reader to understand. a fresh slogan is well accepted
when repeated several time.
BODY OF THE COPY:-

Body of the copy is the textual matter. IT explains and develops the ideas hidden in the headline.
The headline captures the reader’s attention, likewise text matter convert that interest into product interest.
Prospect with reat intention of buying the product will be interested in sales message. Mains guidelines to
be followed in framing text are.
1. The language used in text matter should be simple that is understandable for average person.
2. Ideas should be arranged in order of priority with repetition of key ideas in various guises.
3. Full and specific information must be present within the space or time limits.
ILLUSTRATIONS:- Illustration is the picture, it may be drawing a photograph, a chart, a diagram or a printing
used to gain attention, comprehension and behavior change. Pictures are nearest thing to universal
language. Pictures express things what a word cannot. A picture stands for the artwork. Illustration is the
powerful force that shapes the character, personality and the tone of the advertisement.
Functions of illustrations:-
1. attracting the attention;- The first function of illustration is to get attention this illustrations attracts
readers by creating interest and curiosity through realism, sentiment, adventure, humor and
maturity. When an illustration obtains prospects attention it is implied that the whole
advertisement had obtained attention.
2. Stimulating the audience:- An illustration should be closed to individuals self interest to make him
stimulate to buy that product. An illustration that serves for decorative purpose is costly and futile.

3. Selecting the audience:- The prospect’s interest in picture is dependent on the subject matter of
picture so presented. Audience selection depends factors like are, education status, personal taste
and philosophy. Since an illustration can depict images upon different factors it is helpful in selecting
the audience.
Essentials of good illustration:-

1. It should be simple:- Simple illustration is one that is understood by the prospects without much
thinking. An illustration to be memorable and inspiring should reveal the situation and the meaning
at a glance.
2. It should be suggestive:- Suggestive illustration is onw which pinpoints and projects the meaning at
once without making it too detailed. Every human being has capacity to understand and perceive
things. So an illustration must be suggestive but not too detailed.
3. It creates interest:- An attractive illustration creates interest and curiosity. Beauty of an illustration
is based on background setting, credibility, shape, size, position, weight, style and action.
4. It should be relevant
5. It should be credible.
Techniques or types of illustration:-

1. Comparison Illustration:- Comparison technique used in illustration is simple yet effective. It
compares the product with other products. IT is a wise device to introduce a product by highlighting
its merits and features. Effective comparison diverts the reader’s attention to the new one from the
already existing product.
2. Contrast :- IT works in opposite way to comparison technique. Contrast illustration emphasis the
dissimilarities or differences between the products or service idea. Such illustrations are suited to
bearing benefits of the product. The care should be taken while using this technique is not to overdo
the contrast.
3. Magnification:- Magnification technique is used to emphasis a particular section in detail. It is
normally used in industrial products like consumer durables such as sewing machine, washing
machine etc,
4. Product:- Product technique is one that use picture of a product in isolation. Both in introductory
advertisement and normal campaign it is essential and normal to include product picture. Product
picture is large in case of introductory copy and small in teaser copy.
5. Product in setting;- Meaning full setting or background is capable of adding information and the
grace to objects pictured against them.
6. Product in action:- Demonstration of product and services is done through illustrations
7. Product result:- Consumer is more interested in the satisfaction that a product gives rather than the
product itself.
IDENTIFICATION MARKS:-
It is the last part of advertisement copy. Advertiser who want to speak to his prospects about
product or service merit, features and benefits must use some identification marks on product or
container. These identification marks enables the prospect to know from which product or service he is
getting information. Such marks separate the product from similar manufacturer i.e competitor. there
are three types of identification marks. They are
1. Trade name:- It is name of the company that makes the product. Only reputed concerns have the
benefit of using trade name as identification mark for other small concerns it is not of that important
Eg, Godrej, Johnson&Johnson

2. Trademark:- IT is a word, symbol or a device used to identify a manufacturer’s goods or services and
distinguish them from those of others. These are usually registered. Trademark is broader than
trade name because trademark may contain trade name.
3. Brand name:- IT is the name or a word or words used as a means of identification and distinction.
The brand differs from other assets such as patent and copyright, which have expiration date. But
this has the facility of extension.
4. Logo:- It is the distinctive symbol representing the name or initial of an organization. IT is lettered or
coloured in characteristic way and often boxed with special shapes. It may be registered as
trademark. IT is the condense form of company name or a symbol or the combination of both used
to identify the producer or a product or a product range.
Important questions:-
1. Analyze important ingredients of a good copy.
2. Functions of an advertising agency.
3. Role of headlines in advertising.
4. Common methods of setting advertising budgets
5. Role of slogans in advertising
6. Distinguish between advertising and sales promotion
7. Factors influencing size of budget.
8. Factors to be considered in selecting an advertising agency
9. Effectiveness of an advertisement depends on the headline, do you agree? Explain your answer.
10. Merits of advertising agency over advertising department.
11. Functions of symbols and logos

UNIT III
Advertising layout- Functions- designs of layout- typography- printing- printing process- lithography-
Typograpgy- printing process- lithography- printing plates and reproduction paper and cloth- size of
advertising – repeat advertising- advertising campaign- steps in campaign planning.
ADVERTISING LAYOUT
A complete and finalized advertisement is the combination of a number of units such as headline, subhead
line, text matter, slogan identification mark, the white space, decoration and the border including
illustration. Each element is so arranged or blended that the desired result is brought about. The layout
then is a visual expression of the ideas of the creator of an advertisement. The visual composition of and
advertisement is the layout. Mr. ‘Otto klepper a renowned advertising consultant explained layout as two
things.
1. It means the total appearance of the advertisement its design and the composition of element.
2. It means physical rendering of the design for the advertisement i.e. its blue print for production purpose.
A layout plan indicates:-

(1) The shape, size and the location of an illustration.
(2) The style and the size of the type to be used .
(3) The space each headline and the mass of the type is to occupy.
(4) The border style.
(5) Width of the margin of the white space.
(6) Colours used for the type or the illustration or the border.
(7) Additional directions to the typesetter for executing the designer’s plan.
Functions of the layout:-

Layout does the fine job of assembling the different parts into a unified pack of communication of
advertiser’s message.
1. It organizes all the elements:-
 Layout arranges or organizes all the element of given advertisement.

 Layout dictates the size, the shape and the position of each such element as headline, sub headline,
illustration, copy text, slogan, logotype or the identification mark.
 Layout organizes and arranges each element, which makes the advertisement clear and easy to read.
 By its well-planned organized function it makes the advertisement attract the attention of the prospect
and holds their interest.
2.It brings together copy writer and the art director:-
 Layout serves as basis of discussion between the copywriter and the art director to see whether the
objectives of the advertisement are person who create headline, subhead line, slogans, illustration and
art director arrange the component and make advertisement copy to a visual expression. These
copywriter and art director are brought together in layout.
3.It enables the advertiser to visualize his future advertisement:-The actual drawing of the layout makes the
advertiser to see in advance the appearance of the advertisement that is to be published or produced.

The client see his advertisement in advance of its final production which helps him in making
necessary changes before it is published or produced with least difficulties and cost.
Thus lay out helps advertiser to view his advertisement before it is published or produced
4.It acts as a copy specialists:-
 Layout serves as a reliable guide to the specialists such as type setters, engravers, printers and other
craftsmen as it gives the location of each element in advertisement.
 This layout avoids the misunderstanding between the advertiser and the specialists by providing clear
instruction to everyone to work accordingly.
 Idea visualized is realized only when layout
TYPES OF LAYOUT:-
1. Thumb-nails:-
 Minimum layout sketched quickly to present several alternative solution to the arrangement of the
elements of an advertisment.
 Many are sketched but only one among that is selected of them.
 It is a form of visualization
 The size is ¼ th of usual or actual advertisment
 This indicates just a trial sketch.
2. Roughs:-
 These are visuals and are those having size dimension of proposed advertisment.
 These are actual size layout with headlines and subheadlines being lettered are and photographs drawn
and position are indicated.
3. Comprehensive:- or finished layout:-
Comprehensive layout are duplicate of the final actual advertisements. These are mainly, used as a selling
tool in presenting them to the client for their perusal and approval as they simulate the final advertisement.
This is finished type of layout that is perfect in all respect subject to approval of client for final print.
FACTORS OR ESSENTIALS OR PRINCIPLES OF GOOD LAYOUT:-
Basic principles of layout are:
1. The principle of balance

2. The principle of Rhythm
3. The principle of emphasis
4. The principle of proportion
5. The principle of unity
6. The principle of simplicity.

The principle of balance:-
 Balance in advertisment is related with weight distribution. Weight means darkness or lightness of an
element
 Balance involves the location of sizes shapes and tones in relatin ot optic centre. Optical centre is that
spot where the eyes or reader come to rest or concentrate.
 Balance is relation that exist between the right and left hand side of an advertisement
 This balance is of two type
1. Formal or symmetric balance
2. Infomarl balance
1.Formal balance:-
Formal balance places elements of like weight on each side of an imaginary line going through the
advertisement from top to bottom.
Result of formal balace arethat the advertisement looks dignified, formal and easier to read.
2.Informal balance:-
Informal or a symmetrical balance place the element of different weights at different distances from
optical centre.
The objects are placed seemingly paced at random on the page in relation to one another so that the
page as a whole gives feeling of balance.
Informal balance is more different relaxed and refreshing and therefore interesting.
The principle of rhythm:-
 Principle of rhythm governs the movement of eyes form one part of design to another
 The principle of rythmis also called as principle of ‘movement ‘ or ‘gaze motion’ or ‘sequence’.Here the
movement is the principle of design that carries the readers eye from element to element in the
sequence desired for effective communication of advertising message.
 Eye movement is achieved by mechanical devices like pointing fingers, lines, arrows, dotted line or
shading to push the attention form one unit to another.
 Designers take the advantage of usual eye movement from top left point and end in right down point,
big to small, dark to light, colour to non colours units.
The principle of emphasis:-
 This is also called as principle of contrast. This principle believes in emphasizing the important element
of an advertisement to make it outstanding and enchanting.
 In an advertisement all elements are important byt all are not of equal importance, it is emphasizing as
per its position and the contribution.
 Different ways of getting such an emphasis are
1. Contrast:-
 Contrast is difference
 Contrast is variety that gices life to the entire composition and adds emphasis to the significant
element
 Contrast is possible by variation in size, shape, tone, type, colour and density including closeup shots.

2. Isolation:-
 Isolation implies separation of one element from another. Isolation requires white space.
3. Radiation:-
 Radiation is achieved by drawing line from a circle all around like rays of sun, or coy that gives or a shine.
The principle of proportion:-
 This principle concentrates at providing required space and position to each element depending on its
proportionate significance.
 Proper proportion avoids monotony of advertisement.
 The layout men use white space or black space to express this ideas of proportion in making the
advertisement really outstanding.
Principle of unity:-
 The principle aims at making the advertisement to appear as a unified single whole rather than a series
of disconnected parts.
 This principle creates an impression or completeness or totality or the entirely.
 Unity of layout is achieved through continuity or harmony. Harmony means the elements are only duly
emphasized or contrasted.
The principle of simplicity:-
 simplicity is indispensable in layout to achieve clarity. Design simplicity makes possible easer
comprehension.
 A simple advertisememnt is one that harps on a single significant selling point and a single illustration
 Simplicity in layout design can be achieved through the clear combination of logo-type trademark
slogans and the company name to a single compact block.
 Clear illustration and standard type faces will also help in keeping the advertisement layout very simple
yet effective.
TYPOGRAPHY
Definition:- Typography is the art of selecting type faces of which there are hundreds of designs; blending
different typefaces; casting off the number of words to fit spaces and marking up copy for type setting using
different sizes and weights.
Good typography leads to legibility and attractiveness and certain designs of type can create style
and character or be characteristic of the advertised subject.
Companies with corporate identity schemes specify a particular typeface for all print including
advertisements, thus establishing a house style. It is important that the particular typeface is universally
available from all printers and publishers , unless this problem can be overcome by providing camera-ready
copy.
PHOTOENGRAVING:- Graphical elements in an advertisement can be reproduced through camera and

chemical method in which there is no need of composing.

The words are executed as peace of artwork and shot with a camera to make a negative
The offset negative is then stripped into the type and a plate is prepared
There is a transfer of the impression of a graph from that plate to a suitable surface for printing with
the help of a photochemical process.
LITHOGRAPHY:-
Alois semfelder discovered lithography
It is a special type of printing from smooth surfaces leaving no impression on the paper.
In this method a metal plate, cast from each set page was curved and attached to the press and as it
revolved printing, inking and paper feeding were done simultaneously.
It is also called as planography
It is expensive method used extensively for direct mail advertising and point of purchase advertising.
HINTS FOR EFFECTIVE POSTER COPY:-
1. It should be short.
2. It should use single idea
3. It should be simple
4. It should give product name and package
5. It should be visible.
PROCESS OF STRUCTURING A RADIO ADVERTISEMENT:-
1. The production of radio commercial starts with script that contains copy, sound effects and other
instructions for the participants .
2. The script is passed on to advertiser for approval.
3. After approval, a radio producer arranges for hiring of performers, sound effects and music and
conducts rehearsal for recording.
4. When the producer is satisfied with rehearsal a master tapr of final performance is made
5. Duplicate of these original commercial are made on an acetate record or by means of an electric
device called electric transcriber. Electric transcription are economical as large number of duplicates
can be made.
STRUCTURING OF TELEVISION ADVERTISEMENT
1. Television commercial production starts with the script that states clearly and specifically the video
and sounds that are to take place in a shot
The script is written in two columns
(i) Audio on one side

(ii) Video on other side.
2. This audio and video script are sketched out sequence by sequence on sequence of layout forms
called as story board. Storyboard is a visual plan for advertising message and this gives a rough idea
of commercial with sequence of illustration.

Storyboard depicts the advertiser a visual idea of what is planned and the base to agency and producer
to meet the minds of viewers and estimating the cost.
3. When the storyboard is approved by the client it is passed on to the producer to give it a final stage.
4. The producers conduct rehearsal till he succeeds in giving final form to the commercial.
5. Advertiser gets the commercial filmed or taped to avoid the serious and costly errors associated with
live telecasting. After viewing it.
6. The advertising manager approves it which makes advertisement executive to send the tapes to
various television center.
CAMPAIGN PLANNING:
In advertisement the term campaign planning is used in the sense of organized and carefully planned
use of paid publicity for the accomplishment of a definite purpose.
Campaign planning means deciding in advance what is to done and how the resource
allocated to the advertising campaign should be critisied in organizing various media of paid publicity
for the accomplishment of different business purpose and how to reconcile business objectives and
opportunities.
MAJOR VARIABLES UNDER WHICH THE CAMPAIGN CONSULTANTS OPERATE

1. The socio –economic cum demographic profile of the customer.
2. The total advertising appropriation
3. Media availability space or time on the media.
4. The client and the product or service profile.
5. The campaign period short term or long-term
6. The timing of the campaign day or night or once twice thrice a day.
7. The marketing advertising objectives
8. The distribution set-up through agencies or wholesalers or direct supply to retailers or direct sale to
consumers through multiple chain system
9. The competitor activities
10. A review of past advertising
11. The new plans
12. The creative requirements taking consumer attitude and market behaviour into consideration.
OBJECTIVES OF CAMPAIGN PLANNING:
1. To determine the market for the product:-
* The size of the market
* Who are the target customers
* Who buys the product
* Interval of purchase
* Size of the package.
2. To determine the channel of distribution:-
the campaign organisermust satisfy himself about the working of present trade channels. If they are satisfacto
should be strengthened else a fresh channel or modification should be made in order to secure the regular supply
product in market.

3. To determine the scope of the campaign:-
Which part of whole of the country are tp be served by the campaigh
Who will organise the campaign in target market.
4.To determine the media:-
The campaign planning is to determine the media best suited to the purpose of the campaign and to the pur
the business at minimum cost per contact.
If campaign is for country wide then broad cast media else pf local or regional print media can be used.
5. To discover ccentral idea:-
Campaign planning aimes at discovering the central idea or unique selling proposition(USP) . Upon which the
appeal oof advertisement should be based
The effectiveness of advertising campaign depends upon strength appeal
6.To determine the time:-
The data and time of appearance of appeal should be decided upon by the planner.
7.Preparing advertisement copy:-
The objective of the campaigh should be to prepare the advertising copy using the central selling idea.
To make the campaign effective the copy should be presented scientifically so as to appeal to the motives and
be consistent.
8. To prepare and use the budget:-
Preparing advertising budget with its classification is one of objective of campaign
STEPS IN CAMPAIGN PLANNING:-

1.APPRAISAL OF ADVERTISING OPPORTUNITY:-
This is first step in planning the campaign. To evaluate the advertising opportunity should consider fo
conditions.
(a) Presence of a favourable proimary demand:-
Trend of primary demand of the product category must be in maturity or growth stage then it is favourable t
advertisement.
If the trennd of primary demand is in decline stage then it is not favourable to make advertisement.
(b) Good chance for product differentiation must be there:-
Product differentiaion provides opportunity to consumer to prefer one brand over another by distinguishing
or exclusive qualities
(c)There must be hidden q ualities in the product:-

If the key property ofthe product are hiddn it can be emphasised in advertisement because when some thing
to consumer he shows interest on the product and advertisment can get attention by using this interst.
(d)A powerful emotion buying motive must be present:-
The advertsing message should concentrate and speak about core of what the consumer sreally wants t
advertising is sure to succeed.
(e)Adequacy of funds:-
A minimum amount of funds must be provided by the company for advertising purpose if the company w
achieve the sufficient impact on target market.
2.ANALYSING THE MARKET:-
* the most critical decision at this step is to define target market for the product.
* Advertising camapign to suit those target people should be designed
* Advertisers overall marketing plan provides the basis for a current analysis of target market and a proje
current market conditions.
*External fa ctors and internal factors should be considered.
External factors
 Total deman over a period of time, the advertisers share in total turnover, competitors share in total deman a
constraints
 Internal factors :-
Firms financial and production capabilities.
 Most critical decision in advertising planning is to establish the target market for the product market segmentatio
in establishing target market.
3.DETERMINIG ADVERTISING OBJECTIVE:-
 planning of any business activity starts with the selling of objectives by upper management.
 broad corporate objectives are used to create objectives for each unit of the firms.
 advertising objectives are framed on basis of marketing objective and marketing objective are framed on basis o
objective.
 Market objective and advertising objective should be defined separately because it enables the evaluation of adv
campaign.
 Statement of objectives for new advertising campaign should contain
1. basic message to be delivered
2.Audience
3.Intended effect.
4.Specific criterial to measulre success of campaign later.
 Company must determine short term objective in order to achieve longterm marketing objectives.

 Developing the advertising objective is function of advertising manager but the performance may be by others
4. ESTABLIHING BUDGET AND NECESSARY CONTROL SYSTEM:-
 After fixing objectives next step is to determine the fund needed to attain objective.
 To spent large sum on advertising wisely the management assigns specific amount of money to various
departments
 Plan to allocate amount to each department is called as budget. This budget are reviewed in
terms of changing marketing situation
 The appropriation fund on advertising is complex part and depends upon experience and judgement of
management
 size of business and the extent of its market are considered while deciding size of budget.
5. DEVELOPING THE STRATEGY:-
 Advertising strategy is creativity applied to knowledge for the purpose of finding most effective way of
achieving an end.
 strategy is concerned with (i)Slelecting media (ii) creating advertisements
 An effective message should answer
(i) What business goal we seek to accomplish?
(ii)Who are our present prospect ?
(iii)Who are our future prospect.
(iv)What impression should be created on these people
(v)What tone will make them believe and hear us.
 The campaign themeshould reflect campaign objective.
6. CO-ORDINATING ADVERTISING WITH OTHER PROMOTIONAL METHOD:-
 Advertising to be effective needs active support from channels of distribution and other non advertising
component of market ofganisation
 To make advertising programmes successful there should be integration among production delivery and
inventory
 Greater co-operation must be sought from distributors, dealers and sales people. This is called as
merchandising the advertising.
7. MEASURING ADVERTISING EFFECTIVENESS:-
 Testing or evaluation of advertising effectiveness is also known as advertising research.

 It is the research activitiy undertaken to measure the worth of the programme.
 It is an attempt to know whether the message designed properly has reached the greatest number of
prospect at the least practical cost.
There are two types of test

(i) Pre-testing
(ii) Post-Testing
Pre Testing of advertisement

Consumer jury:-. Consumer reactions have greated validity than the reactions of non-concumers. It is
assumed that consumers can provide true information about the product .So few customers are selected
and they may be asked to evaluate an advetrtisement or rate two or more advertisement and the best
advertisement can be considered for further final commercial.
(b) Story board test:-
The storyboard prepared for television advertising is tested before it is used. The storyboard pictures are
transformed to a filmstrip and the audio section onto a tape. Vision and sound are synchronised and shown
to an audience for evaluation. Reducing the unnecessary part of storyboard can cut the costs involved. The
important part of advertising is accepted for telecasting.
(c) Tachistoscope:- The tachistoscope is a projector that can project objects on to a screen at rates so fast
that the viewer cannot detect the message. It is slowed down to a level where the message can be
perceived easily. The respondent should understand and appreciate the message, interesting words,
slogans, headlines etc., they can be esily segregated from less interesting message. This process can be
separate the messages which are less effective from those which are less effective. Quicker an
advertisement is perceived the more effective it is for carrying the message.
(d) Psycho galvanometer: -
The psychogalvanometer is a mechanical device that measures the amount of perspiration. The change in
perspiration rate in a respondent is supposedly indicative of a change in emotional reaction. The
psychogalvanometer measures a respondent’s reaction to new records and slogans. Electrodes are attached
to his palm to detect changes in electrical resistance arising from perspitation. If the machine registers lower
electrical resistance it is stated that a tension exists as a result of advertisement.
(e) Eye camera:- The eyecamera measures the viewing behaviour of the audience. It records the activity of
the eye by its movement. The audience is asked to look at a series of pictures on a screen while being
unaware that their eye actions are being photographed. The eye movements are recorded by video camera.
It a commercial is interesting and if he is attracted by it, his eyes will be fixed on that. It shows that the path
taken by the eye over an advertisement and discovers which part produced the initial attention.
(f) Pupil dilation:- The size of the pupil changes as people see different advertisement. It becomes wider as
greater interest is aroused. The pupil shrinks if the eye is not interested. A pupilometer is used to measure
the size of the pupil. It records the dilation, which is voluntary and measures the interest shown by the
respondent.
(g) Depth interview:-
Depth interviewing is concerned with getting respondent to react freely to the brand, organisation and
product. By suitable questions the interviewer brings out his unconscious reaction to the surface. The
reaction to communication stimuli is noted to bring out the facts for the advertisers. Depth interviewing
involves non-structured questions.

Post testing techniques:-These are applied after the advertisement has ended. These techniques are used to
find out how far advertising has been successful. The immediate objective of advertising is to arouse
consumer awareness, his interest, desire and develop his attitude to the product. Therefore post-testing
techniques are recognition test, recall test attitude change and sales test.
1.recognition test:- It is also called as readership test. They organise research activity to findout howmany
readrs went through printed magazine advertisement. A particular advertisement may be examined by
sending the whole newspaper or magazine where in it is published. After a fewdays readers are approached
to findout whether they have read the advertisement or not. Those who read the advertisemet are counted
from among the total number of persons given the advertised publication and percentae of readership is
calculated accordingly. Recognition tests have been helpful in determining the actual percentage of persons
who”recognised’ the advertisement. The demerit of this method is it is based on the assumption that high
correlation between the reading of the advertisement and the purchase of product. The advantage of the
recognition test is that it measures something, which has been realised under normal condition.
2. Recall test:- A recall test depends on the memory of the respondents. This test is applied to measure the
penetration of or the impression made by an advertisement on the reader’s mind.
This recall test is of two types (a) aided recall test and (b) unaided recall test.
(a)Aided recall test:- The aided test is used mainly to measure television advertising. The interviewer may
approach the respondents over the telephone or in person to find out something about their recall of the
commercial. The recall test may be administers immediately or two or three days after the exposure.
(b)Unaided recall:-
Under the unaided recall, little or no aid is given because the purpose is to measure the penetration of the
advertisement. Respondents are asked whether the advertisement included a particular picture or message.
The name of the product is not given to the audience. They have to recall it themselves. If they do
remember, it is established that there was some impact of the advertisement.
(3)Attitude change:- Attitude measurement test measures advertising effectiveness. It measures the extent
to which favourable opinions have been created about the product image and company loyalty, acceptance,
preference, intent etc., these are measured with following techniques
(1)Likert scale:- A series of statements are described to measure the atributes of the advertisement. Each
statement is measured on five-point scare.
Ex:- Radio advertising has been heard by majority of the population!
(a)Strongly agree (b) Agree (c) Uncertain (d) Disagree (e) Strongly disagree.
(2) Ranking techniques:- The preferences to several type of advertisement are ranked to find out the place
of a particular advertisement among the several advertisements
(d) Sales test:- Advertising and sales functions are correlated, although there are a large number of
variables that affect sales.
(3) Measures of past sales:- Advertising and sales are correlated by using the past sales data. Brandwise
sales data are collected and tabulated. The product and company sales in the past ten years and the
advertising expenses are considered and correlation between the sales volume and advertising expenses are
formed. All other factors influencing sales are also correlated with sales.

(4)Field experiments:- The whole market may be divided into test and control areas. One treatment may be
randomly administered to each area. This will show how a particular factor has influenced sales in that area.
Unit IV
Sales Promotion – Meaning, Methods, Promotional Strategy – Marketing Communication and Persuasion,
Marketing Promotional instruments – Advertising Personal Selling – Functions and Process of Personal
Selling – differences between salesmanship and sales promotion – techniques of sales Promotion –
Consumer and dealer Promotion – After sales service – packaging – guarantee – sales territory – Sales
Quota.
PROMOTIONAL INSTRUMENTS:
Promotion mix is also called as promotional instruments or promotional tools.
1. Advertising: It is mass communication and is transmitted through the mass media. Advertising has an
identified sponsor. It has objectives, issues, message development and is characterized by media
selection and evaluation of advertising effectiveness. The main qualities are:
a) Public Presentation:
- It is highly public made of communication
- Its public nature confers a kind of legitimacy on the product and also suggests a standardized
offering.
b) Pervasiveness: (Pass through)
- Advertising is a pervasive medium that permits the selter to repeat a message many times
- It allows the buyer to receive & compare the messages of various competitions
- Large-scale advertising by a seller says something positive about seller size, power & success
2. Amplified Expressiveness:
- Advertising provides opportunities for dramatizing the company & its product through the
outful use of print, sound & colour.
3. Impersonality:
- Advertising cannot be as compelling as a company sales representative. Advertising is able

to carry on only monologue in front of not a dialogue with audience.
4. Sales Promotion:
Sales promotion aims directly at including purchases to buy a product. It involves demonstration
contests, price-off, coupons, free samples, special packaging and away refund offer. These are designed to
encourage resellers and sales people to sell the product.
- It differs from personal selling and advertising in the sense sales promotion is non accurate in nature
and is for short period. These offer three distinctive benefits.

a) Communication: They gain attention & usually provide information that may lead the consumer to the
product.
b) Incentive: They incorporate some concession, inducence or contribution that gives value to the
consumer.
c) Invitation: They include a distinct invitation to engage in the transaction now.
- Companies use sales-promotion to create a stronger and quicker response.

5. Publicity & Public relation:
Publicity is non-personal communication about the product. It reaches people because it is news
worthy. The manager may plan a press release and external communication publicity generates more
inquiries than advertising. The qualities are
6. High credibility :- News stories and features are more authentic and credible to readers than ads.- Ability
to catch buyers off guard:- Public relation can reach many prospects who prefer to avoid salespeople and
advertisement. The message reaches the buyer as news rather than as a sales directed communication.
Public-relation program co-ordinate with other promotion-mix elements can be extremely effective.
7. Personal selling:- Personal selling involves interpersonal communication, which aims at informing and
persuading customers to know and buy products. It is face-face relationship between seller & potential
customers. It provides immediate feedback which helps sales to the needs of the situation.
Personal confrontation:-
p.s involves an alive, immediate and interactive relationship between two or more persons. Each
party is able to observe others need and fulfil it immediately.
-cultivation:- P.S permit all kinds of relationship to spring up ranging from a matter- of-fact selling relation to
deep personal friendship. This helps the customer retained to the firm for long-run.
Response:- The feedback or response is obtained immediately.
Direct marketing:- Forms of direct marketing are telemarketing, electronic marketing main characteristics
are
Non public :- specific to a person
Upto-date :- A message can be prepared very quickly for delivery to an individual.
Interactive :- The message can be altered depending on person’s response.
Personal selling :-
Personal selling involves oral presentation in a conversation with one or more prospective by
Philip kotler.
Process of personal selling :-

Personal selling aims at oral presentation by talk or conversation between a salesman and a
prospect. The salesman endeavors to convert the prospect into a buyer. The following are process involved
in personal selling.
1.Prospecting: -
A prospect means a probable buyer. Prospecting means searching for persons to whom sales can be
affected. Prospect is a person, who has want to be satisfied and has first step in identifying and locating of

prospects , either from company’s past record or customer or advertisement. A list of such prospect is
prepared and this helps in planning the whole selling efforts so as avoid waste calls.
2.Pre approaching :- It involves developing an understanding about the prospective buyers or qualified
buyer as to their needs , problems, buying motives , preferences , personal character etc., This pre-approach
is effective for making a ground of approach.
3.Approaching and attention :- This is a sales interview. This stage is important and vital. The first
impression of the salesman may bring long-run-benefit-repeated sales. This step is based on AIDAS formula.
4.Demonstration: -The mid satisfying characteristics of the product are to be presented or demonstrated.
The prospect may be made to understand the benefits of the product. He may also be informed of the
special features , merits , benefits etc., of the products. The prospect must be convinced and an interest in
possessing the product must be aroused.
5.Handling objections :-When one shows interest in buying the product , generally every salesman faces
objections from the prospective buyers. When a buyer purchases products at a price, buyer asks questions
and explanations. The salesman must face the buyer by giving satisfactory answers, sincerely and
underviedly.
6.Closing the sales :- It aims at taking an order for the products from the prospective buyer. The salesman
also asks questions as to the products – choice of colour, period of delivery, quantity, leams, etc., At the final
stage the prospects place orders with the salesman.
7.Follw up :-Satisfaction of the buyer is important as a source of publicity. This stage is important to have
information from buyer regarding the product-use-problems, if any. The salesman keeps contact to know the
problems, if any. After sales, service should be followed strictly.
Functions of personal selling :-

Qualitative functions:
1. To do entire selling job. To serve the existing customer. To search out and obtain new customer.To
secure & maintain customers co-operation in stocking & promoting product line.To keep customers
informed of changes in the product line. To assist customer in selling product line.To provide technical
advice and assistance to customers. To handle the sales personal of middlemen.To provide advice and
assistance to middlemen whenever needed.To collect & report market information on interested
matters to company management.
Quantitative or short-terms objectives: -

1. To obtain a specific sales volume. To obtain sales volume in way that contributes to profit objective, by
selling proper mix of products. To keep personal selling expense within specified limit. To secret retain
specific share of market.
Techniques of sales promotion towards consumer and dealer promotion:
Sales Promotion:
Sales promotion is defined as “Those marketing activities, other than personal selling, advertising
and publicity, that stimulate consumer purchasing and dealer effectiveness, such as displays, shows and
demonstrations, expositions and various non-current selling efforts, not in ordinary routine. Sales promotion

activities are impersonal and usually non-recurring and are directive to ultimate consumers, industrial users
and middle-men.
Basic goals of sales promotion are:
1) To introduce new products: To induce buyer to purchase a new product, free samples may be
distributed, or money and merchandise allowance may be offered to business to stock and sell the
product.
2) To attract new customers: New customers may be attracted through issue of free samples,
premises, contests and similar devices.
3) To induce present customer to buy more: As sales promotion is only for short period the present
customer are induced to avail the offer so they buy more.
4) To help firm to remain competitive:
5) To increase sales in off-season: Buyers may be encouraged to use the product in off season by
showing them the variety of uses of the product.
6) To increase the inventories of business buyers: Retailers may be induced to keep in stock more
units of products, so that more sales can be effected.
Definition of American marketing association: Sales promotion, in a specific sence, refers to “ those sales
activitie that supplement both personal selling and advertising and co-ordinate there and help to make them
effective, such as displays, shows and exposition, demonstration, and other non-recurrent selling efforts are
in the ordinary routine.”
Techniques of sales promotion or kinds of sales promotion:
1. Consumer sales promotion

2. Dealer sales promotion
3. Sales force promotion
Consumer Sales Promotion: Activities aimed at reaching the consumer at his home or in his office may be
called consumer sales promotion. Aimed to inform or educate the consumer and to stimulate the
consumers. Consumer sales promotion increased the use of the product by the consumers, attract new
customer and stand straight among the conmpetition, to introduce new products & to promote established
products.
(i)Sampling: Free samples are given to cunsumers to increase their interest in the product, to introduce a
new product and expand the market. It is an effective device when the product is pruchased often eg: soap,
detergent. It is method of demand cuation. Sampling gives a chance to the consumer to compare the
products with other substitutes. Specimen copies of books are given to professors, the idea behind this is
that they recomand their products for use to students. Samples may be delivered door to door, sent by mail,
picked up in a stone, attached to another product etc., It is costly to produce samples.
(ii)Coupons: Coupons are supplied along with a product. It is certificate that reduce prices. Coupons can be
mailed, enclosed in the packets or printed in the advertisements. The coupons are used
 to introduce new products

 to increase sales of established product
 to sell new & large size of product.
 to encourage repeated sales

 to swithc on consumer from one brand to another brand.

 It is short run stimulus.
(iii)Demonstration: It is the instructions to educate the consumer in manner of using the product.It is
promotional tool to attract attention of the consumers. It is necessary for product of complex of technical
nature. It is done in front of consumers.
(iv)Contest: These are conducted to attract new customers or to introduce new products. The consumers are
asked to state in a few works why they prefer a particular product. To enter into contest the consumer must
purchase a product and submit the evidence (a label or package or a card attached to the product) with the
entry form of contest. Through such contests even the person who are not inclined to purchase also
(v)Money Refund Offer: In this salespromotion technique if the purchaser is not satisfied with the product, a
part or all of the purchasess money will be refunded. It will be stated on the package. It will create new
users and strengthen the brand loyalty.
(vi)Premium Offers: It is a temporary price reduction which increase the instinct of buyers. Products are
offered face or at a reduced cost as an inducement for purchasing.It is offered to consumers for consumers
goods like soap, brush etc., Eg: when the customer buys two soaps, a soap box is given free along with the
soaps. The soap box is premium. In certain cases price is reduced, then reduced amount is premium. Types
of premium are:
Direct premium: -– A with pack premium accompanies the product inside the package or outside on the
package. Eg: Spoon inside the tea packet.
A re usable container: - It is a conainer which can be reused after the product is used.
Free in mail premium :-The company sends premium items by mail to consumers who are requested to send
the proof of their purchase.
A self liquidating premium : -It is an item sold below its normal retail price to consumers. The cost of
additional product is collected from buyer at a confessional rate.
vii)Price off offer: It stimulates sales during a slump season. It gives temporary discount to the consumers
i.e., goods are offered at a rate less than the laselled rate.
1) Consumer swepstakes: Consumer submit their names for inclusion ie a list of prize-winning contest. A
ticket is given to the consumer of specific brand. At specific time lots will be drawned. The prize winner
gets the prize.
2) Buy back allowance: Allowsance is given following a previous deal. Trade deal offers a certain amount of
money for new purchases based on the purchased quantity.It prevents in post trade deal. Buyers
motivation is incuased because of their co-operation on the first trade deal.
3) Free trials: It consists of inviting prospective purchase to try the product without cost, in the hope that
they will buy the product. Buyers are encouraged free trials to stimulate purchase interest.
II Dealer sales promotion: The other name for dealer sales promotion is trade promotion. Manufacturers
use a number of techniques ot secure the co-operation of whole sales, retailers or the middle men. These
activities which increase the interest and enthusiasm of dealers and istribuors are called dealer or distributor
sales promotion.

1) Buying allowance: It is an offer of money off or temporary reduction to dealers for purchasing in
stipulated period of time.It is very effective method ot introduce new products in the market.It
encourages the dealer to buy a quantity that they will not buy in ordinary time.
Eg: A producer of wet grinder will give one grinder free if one purchases five wet grinder at time.
2) Merchandise allowance: An advertising allowance is given to the dealers for advertising the features
of manufacturers product. A display allowance is given to them for arranging special displays of the
product. After veryfying the promotional work of the dealer, the manufacturers will give a certain
amount of money for promotional activities. Some manufacturers as an encouragement offer
additional quantities of merchandise.
3) Price deals: Apart from the regular discount, special discounts are also allowed to the dealers for a
specified quantity of purchase. This special discount is over and above regualr discount.
4) Push money or premium: Push money is a payment in cash or gifts given to dealers or to their sales
force to push the manufacturers will offer free speciality item that carry company’s rates, such as
pens, pencils, calendars, match boxes etc., This is a device for aggressive selling.
5) Co-operative Advertising: Dealers spend money in advertising manufactures product with the
consent of manufactures. The dealer can claim an allowance by giving the proof of advertisement.
This is indirect advertising for the manufacturer. It will increase sales of manufacturers product.It is
burden to manufacturers budget.
6) Dealers sales contest: This is indirect way of boosting sales. This type of contest is conducted at the
level of retailess and wholesales. This is inform of window display, store display, sales etc.,Prize is
awarded to outstanding achivement. This method is aimed at stimulating and motivating
distributors, dealers, sales-staff etc.,
7) Dealer’s Listed Promotion: Listing dealers is an advertisement. It gives a list of dealers or retailes
who stock the product or who are engaged in its promotion. The consumer can buy the product from
anyone of listed dealers. This method induces the dealers to stock the products and the consumers
are encouraged to buy the products from the listed dealers.
8) Dealers Gift: Manufacturers give attractive and useful article to dealers against their order. The
article are transistor, radio etc.,Some manufacturers offer free holiday family tours to dealers who
place more orders.
9) Point of purchase: This plays the role of silent salesman. This is also known as dealer-aids, dealer
displays.The competition among the retailers on traders has encouraged pop advertising, which is a
significant method for sales promotion. It means that6 advertising at the pop by consumers.
Retailers adopt this method to draw the attention of customer and create an interest in the mind of
the prospect. This method is suitable for consumer goods as well as inductrial goods.
III Sales force promotion:
The activity of sales force must be induced. The idea behind sales force promotion is to make the salesman’s
effort more effective.
1) Bonus to sales force:The manufacturer sets a target of sales for a year. If the sales force sells the
products above the targeted sales, bonus is offered to them.This is an encouragement in untire given to the
sales people to sell more products to cross the quota or targeted sales.
2) Sales force contests:To increase the interest and efforts of sales by sales force over a specified time,
these contests are announced.The prizes are given to saleman who secure the maximum sale contests.It
stimulates salesman to sell more products.
3) Salesmen meetings and conferences: The idea behind these is to educate, inspire and reward salesman.
Encouragement is given to them during the discussion. New selling tichniques are discribed to them and
discussed in the conference.

After sales services:
- Providing services particularly after-sales services to customers is important in all type of selling.
- After sales service builds goodwill between the salesmen and the consumer directly and creates
indirect good will between company and the consumer.
- An after sales service relationship with an account or a customer leads to increased total and
selected brands of sales, better distribution on the wide range of products and much desired
customer co-operation in promoting the company products.
- To serve the customer best the salesman is to concertrate of account penetration i.e. to contact
each customer frequently and regularly making sure that he handle the complaints promptly;
assures his cooperation.
- A professional sales man is service oriented because, follow-up and after sales service greatly helps
him in maximising the company sales.
Packaging: Packaging means wrapping of goods before they are transported or stored or delivered to a
consumer. Packaging has been defined as “can activity, which is concerned with protction, economy,
convenience and promotional condidered.
Functions of packaging:
1) Product protection: Fundamental idea of packaing is protection of product.

Package prevents breakage, contamination, pilferage, chemical chart, insect attack etc.,Packging keeps the
product in safe condition when it is transported from the manufacturer to consumer.
2) Product-attractiveness: The size and shape of the package, its colour, printed matter on it etc., must
make the package attractive to look at. The psychological feeling is that a good package contains
good quality product in it. Attractiveness is major consideration in modern packaging.
3) Demonstration of product: A pictorial labels depicting the steps to use a product will help in
demonstration of using the product.
4) Product identification: Package differentiate similar products. Packaging & labelling are inseparable
and are closely related to branding. Package has more significance, then the product cannot quality
cannot be judged by seeing it eg: milk, fruit juice etc., Package give them the expiry dat and
manufacturdate which helps customer to judge the quality of the product.
5) Procuct convenience:- The design and size of the package must be in accordance with the contents.
I.e., product package must be convenient to ultimate customers.
- Package which can be easily handled, opened etc., is prefered by customes.
6) Effective sales tool: A good package stimulate sales. A designed and attractive package invites
customers. Package that are attractive and innovative has value, as many people buy the products,
for the sake of containers.
Kinds of packaging:
1) A consumer package Tooth pasts, soap
2) Family package Dore soap & Lakme clenser
3) Re use package Container of horlicks
4) Multiple package Mack-up box

Protection
Effective
Packaging Attractiveness
Sales tool
Convenience Identification
General functions:
1) It is an advertising medium
2) It encourage repurchase
3) It facilitates retaiter’s functions
4) It creates product image and individuality
5) It enables easy display
6) It protects the contents
7) It facilitates easy storing, transporting
8) It becomes easy to identify the products
9) It helps in remembering and recognition the product.
10) It provides economy, convenience, adjustability, etc.,
Sales Territory: S. T is a geographical area containing present and potential customers, who can be served
effiectively an economically by a single salesman.
Factors to be considered in determining sales lerritory

1) Ability of sales force
2) Nature of sales effors
3) Sales effictiveness
4) Sales potential
Objectives:
1) To prevent duplication of effors

2) To provide of proper and efficient routing of salesman.
3) To equalise as far as possible, sales possibilities and the work of each salesman.
4) To enable the sales manager to make exact comparisons of the selling psooibilitie of each teritory
and the accomplishmene of each salesman.
5) To enable the sales manager to control his sales ofrce intelligently and to the best advantage in
meeting compretition.
6) To secure mamimum coverage of market
7) To equalies opportunities for all sales people employed by the company.
8) To meet competition more effictively, because salemen can concentrate their effors in area assigned
to them.
9) To save time and expense, by giving salemen territory of proper size to each salesmen to ensure
economical coverage

10) To facilitate marketting research.

11) To attend property to customers need
12) To facilitate training and selection of salesman.
Sales Quota: Sales quota is the goal of sales accomplishment, a task objective or a standard that sales
organisation stires to attain.
Objectives:
1) To establish a scientifc method of planning and controlling sales.

2) To set up performance and efficiency standard for salesman
3) To provide a basis for remuneration of salesman.
Sales quata may be defined as estimated volues of sales that a company expects to secure within a
definite period of time.
Use of Sales Quota:
1) It becomes easier to locate weak and underdeveloped market area in terms of sales quotas for such
territories.
2) It helps in controlling a salesman’s activities so as to provide adequate emphasis on te nature of the
salesman’s effors.
3) It is useful for evaluating the effectiveness and productivity of salesman.
4) It can result in devising a more effective compensation plan as quotas can be used to supply the
necessary incentives for better and more adequate action from the salesman.
Factors to be considered while setting the quotes

1) Estimate perchasing power
2) Study the past sales
3) Consult facts and opinion
4) Investigate sales policies.
Promotionn meaning:- Promotion is the process of marketing communication to inform, persuade, remind
and influence consumer or user in favour of advertisers product or service.
Promotion has three specific purposes
1. It communicates marketing information to consumers, users and resellers.

2. Promotion persuades and convinces the buyer and influences his behaviour to take the desired
action.
3. Promotional efforts act as powerful tool of competition providing the cutting edge of its entire
marketing programme.
Definition:-
Promotion is defined as “ the co-ordinated self-initated efforts to establish channels of information and
persuassion to facilitate or foster the sales of goods or services or the acceptance of ideas or points of view”

Promotion strategy:-
Strategy lays down the broad principles which a company hopes to secure an advantage over competitors,
exhibit attractiveness to buyers and lead to full exploitation of companys resources.
Promotion strategy depends upon
 The company
 The product
 The buyer &
 The channel.
Promotion strategy deals with following decision:-
1. The blend of promotional activities

2. The amount allocated for the various forms of promotion particularly to the advertising media such
as press, radio television and so on.
3. The kind of promotion to be used.
The two main strategies in promotion are pull strategy and push strategy:-
Pull strategy:-
 Pull strategies depend upon mass communication.
 Here the manufactures make advertisement and sales promotion targeting the ultimate customer. This
creates end user demand. Customer force the retailer , the retailer force for the wholesaler and the
wholesaler force the manufactrer for the product. Thus their objective of manufacturer is attained
 In this strategy importance is given to ultimate customers
 Personal salesmanship plays a secondary role in pull promotion.
 Dealer margin are low in pull promotion
 The request for the products starts form consumer upto producer.
Pust strategy: -
 Push strategy is also called as presure strategy.
 Here the manufacturer makes their promotion efforts towards wholesaler and retailer.
 Flow of goods and flow of promotion move form producer to wholesaler and form wholesater to
retailer and from retailer to ultimate consumer.
 It place heavy emphasis on personal selling.
 Industreial marketing strategies are relying primarily on personal selling.
 In push strategy personal selling expenses are considerable and dealer margin is also high.
Push stragegy can be followed when:-
1. We have high quality product with unique selling points.

2. We have high priced product.
3. We can offer adequate incentive middleman and their salesmen.
Push and pull strategy: -

 Many consumer goods manufacturers generally employ a push pull strategy to sell their products.

 The ratio of push to pull may differ according to the requirement of market situation
 Salesmen are used to push the goods through the marketing channel while advertising and sales
promotion will support personal selling to accelerate sales.
 Here all tools of promotion work together.
QUESTIONS:-
1. What are promotion strategies.
2. What is the process of personal selling.

UNIT V
Sales promotion: Meaning-methods-promotional strategy-marketing communication and persuasion-

promotional instruments: advertising -techniques of sale promotion-consumer and dealers promotion.
After sales service-packing – guarantee - Personal selling-Objectives - Salesmanship-Process of personal
selling-types of salesman.
Buying Motive
Professor D.J. Duncan defined, "buying motives", as those influences or considerations which
provide the impulse to buy, induce action or determine choice in purchase of goods and services.
Classification of Buying Motives

Buying Motive
Product Motive Patronage Motive
Emotional Rational Emotional Rational
A. Product Motive
Product buying motives are those that induce and impel to buy because of physical and psychological
product attributes.
 The product might be applicable to his eyes, nose, ear, tongue and skin and matching to his mind.
 These physical and psychological attraction may be designed, size, colour, taste, package, price,
performance, pride, affection, durability, suitability, safety, comfort, economy, convenience and so
on.
 These product buying motive may be either emotional or rational.
(a)Product Emotional Buying Motives
 Emotion is the excited state of feeling or mental agitation.

 Emotional action is more quick without much thinking or reasoning being applied.
 Emotional decisions is not based on detailed survey on plan but it is outcome of the spur of the
moment.
 Emotional buying motive pertaining to product can be pride, jealousy, fashions and imitations,
habits, love and affection, comfort and praise.
(b)Product Rational Motive
Rational motives are based on reasoning or judgement. Individual has product rational buying
motive based on
Safety or fear, Suitability - depending on his affordability, size of the family, size of the house, etc.,
Durability, Economy, Convenience - Speaks of saving of valuable time, mental and physical exertion and
guarantees, accurate and efficient work. Versatility - The quality which permits user to put the product to
alternative uses.

B. Patronage Motive
Patronage motive speak of the choice of a particular person - a shopkeeper or outlet for purchase.
This may be emotional or rational.
(a)Patronage Emotional Motives
1. Appearance of the store

2. Recommendation of friends and relatives
3. Imitation
4. Prestige
(b)Patronage Rational Motives
1. Proximity - Convenience
2. Widest assortment - Widest choice of goods
3. Credit facilities
4. Treatment - Hospitality
5. Service offered - Additional services on request of the customer.
Importance of Buying Motives

1. They are the basis in product planning and development
Product strategies are the outcome of buying motives. A seller and therefore a manufacturer works
decisions regarding colour, size, dimensions, design, packaging weight, taste and the like on the basis of
buyer's psychology.
2. They are determinant of buying policies
If consumer are moved by rational motives, the price should be lowest or competitive while can be pretty
high if moved by emotional motives because people pay high price.
3. They are helpful in designing promotional policies
(Role of knowledge of buyer behaviour in framing promotional strategy)
Personal selling, advertising and sales promotion are important tools of promotion. These three are
deeply and greatly influenced by buying motive.
Psychological Theories
Psychology explains how consumers learn about a product and how they can recall from the
memory, the development of buying habits. Psychology directs towards satisfying certain needs and
usually customer satisfy their needs in following order
Maslow’s Hierearchy of needs.
Basic physiological needs:-The need that are taken as the starting point for motivation are so called
physiological needs. These needs relate to survival and maintenance of human life.

Self fulfilling Needs
Ego Needs
Social
Needs
Safety Needs
Physiological
Needs
These needs include such things as food, clothing, shelter, air, water and other necessaries of
life.
2. Safety and Security Needs
After satisfying the physiological needs people want the assurance of maintaining a given economical level.
They want security in all aspects from job to old age and risk.
3. Social needs
Man is social being. He is therefore, interested in conversation, sociability, exchange of feelings and
grievances, companionship recognition, belongingness, etc.
4. Esteem and status needs
Self confidence, independence, achievement, knowledge and success. These are egoistic needs. These are
concerned with prestige and status of individuals.
5. Self fulfilment needs
Fulfil what a person considers to be his mission in life - Personal achievement. Maslow felt that need have
definite sequence of dominance. Second need does not dominate until first need does not fulfil. Once a
need or a certain order of needs is satisfied it cease to be motivating factor.
Training of Salesman
Importance or need of sales training

Training is the process of perfecting the performance by plugging the gaps in the field of doing a given task.
It is the act of increasing the knowledge and skill of an employer for doing a particular job. Training a
salesman is to increase his knowledge about his firm products, markets for easy and smooth gliding.
1. To better the sales performance
 Bettering sales performance means increasing the sales volume, decreasing the selling costs and
increasing the profits through improved productivity and profitability.

 When sales people are trained, they reduce the waste expenses and thus reduce the cost which
simultaneously will increase the profit.
 By proper sales training, wastage can be avoided and efficiency can be improved.
2. To provide expert knowledge
 The sales training cuts, shapes and polishes the sales people to acquire essential knowledge about
his products, customers, his company, his competitors, so that he achieves the maximum of sales
target with confidence.
 Even in case of experienced salesmen, it provides him with perfect knowledge about the
fundamentals and advanced aspects of successful selling through refresher course.
 Training is essential for both new and existing salesmen because the sales line is dynamic and ever
changing.
3. To curb wastage in the unit
 A well trained salesman is sure to cause least amount of waste of time, talent and treasure.
 He handles goods with utmost care, needs no supervision, no instruction as he is the self starter, he
needs, less time to adjust on a productive basis, supervision gets simplified and more effective and
intangible losses like damaging the brand image are avoided.
4. To influence the people favourably
Sales training teaches the best ways of influencing the people particularly dealing with customers, handling
complaints, opening new accounts, negotiating at top and obtaining sales appointment, planning the
growing and diversifying work, preparing quotations and talks, answering objections and closing the sales.
5. To improve the earnings
 Effective sales training makes it possible for a salesman to increase his sales and earning to win
recognition and to qualify for promotion to a supervisory position, his attitude and interest in his work
greatly changes and improve.
 His knowledge get enriched as it turns multi-disciplined as he is to know engineering, manufacturing
market research advertising, financial economics, psychology and so on.
Advantages of sales training

1. A trained salesman always wins customers by systematic approach.
2. Salesman acquires better understanding of the firm, as to its past history, policies procedures and this
helps
the salesman for effective dealing.
3. A trained salesman takes less time in concluding a sale.
4. A trained salesman brings increased volume of sales, in turn more profit to the firm and himself.
5. A trained salesman is able to meet consumer's demand and help in solving problems.
6. Increased volume of sales facilitates reduction in cost of production i.e. sales rise faster than expected.
The cost per unit of order or per prospect can be minimized.
7. A better relationship is created among the customers through reducing customer's complaint, increasing
brand loyalty, etc., customer satisfaction is gained.
8. The ability of salesman is used by expert knowledge
9. Controlling of salesman becomes easy.
Areas of training
1. The company's policies, practices and products.
2. The customer's needs and demands.
3. Sales techniques.
4. The knowledge of competitors, and

5. The duties of a salesman pertaining to day to day work.
ESSENTIALS OF GOOD SALESMAN
a. Knowledge of self
This is partly inherent quality and partly to be developed by constant training. Every individual has certain
weaknesses and limitations. In order to become effective salesman he should constantly bear in mind his
own defects. The assessment of his own personality will better equip the salesman to fear and deal with
customers. He should avoid the display of weakness
b. Knowledge of the product
One of the basic requisites for a sales job is to have a perfect knowledge of the product one handles. In a
competitive market, if the customers are to be persuaded and if the supremacy of the product is to be
proved, the salesman must have a thorough knowledge of the product. A salesman must have a detailed
knowledge regarding
1. Nature of the product

2. Methods of production
3. Materials used (ingredients)
4. Method of packing
5. Uses of the product
The salesman could gain this knowledge only through properly organised training.
c. Knowledge of the company
It was earlier stated that selling is a process where one's ideas in the form of product are sold. In this sense,
a modern salesman sells his company, its prestige, its reliability and its experience. This makes it necessary
for a salesman to know all about the company he represents.
The following are the required details
1. History of the company

2. Achievements/records
3. Sales policies
4. Distribution policies
5. Consumer services provided by the company, and
6. Selling outlets
d. Knowledge of the customers
A salesman must have a perfect knowledge of customers to whom the product is to be sold. In any field, one
should acquire in advance their tendencies, defects, strong points, etc. This aspect is highly required in
salesmanship in order to overcome sales resistance. Furthermore consumers are human being and their
behaviour differ between one another. Their buying motive also would be different from one another, their
moods may change and often their temperaments too. All these necessitate the salesman to acquire the
knowledge of "consumer psychology". He should know atleast three factors.
1. What motivates the customer to buy?

2. What is the nature and requirement of customer?

3. How to deal with different types of customer?
e. Knowledge of technique of selling
This knowledge also could be acquired only through training. Just as the consumers are different, the
products are also different. For example, the selling technique to be adopted for a consumer product will
not be relevant to industrial product. The AIDA formula used would be different for different products.
In order to become a perfect effective salesman a person must have all the knowledge and also following
qualities.
a. Physical : Health, Appearance, Voice, Dress and Neatness
b. Mental : Alertness, Initiative, Self-confidence, Imagination, Memory.
c. Social : Courtesy, Refinement, Patience, etc.
d. Human : Maturity, Tactfulness, Straightforward, and Loyalty.
e. Character : Honesty, Reliability, and Stability.
Methods of sales training
A. Individual method
Individual sales training methods are micro level training from the angel of each salesman. It is
individualistic approach - highly personalized involving direct interaction between the trainer and the
trainee. These methods are must where sales-force to be trained is limited and needs individual intensive
attention.
Sales training
Individual methods Group training methods
On the job Programmed Lectures Discussion Role Sensitivity Sales
training instructions playing training demons-
tration
1. On the job training
It is that method which salesman is given the opportunity of observing and performing the selling job of a
typical salesman. Keen observation and active participation are the tenets of learning on the job. The
trainer observes the performance of trainee. The trainer corrects the trainee when he does some mistakes.
This method being on the job is also known as the field training.

2. Programmed instruction
Programmed instruction or learning is a linear programme or instruction in which the total subject matter of
training is broken down into chunks called 'frames' - the numbered instructions units. Each frame explains
specific points, questions, problems and solutions. The trainee is expected to learn through these frames by
solving the problems and then verifying with model solutions. He repeat the frame till he gets correct
solution to his problem.
B. Group training method

Group training methods are those that are employed in training a group of salesmen. Here, the trainee may
be passive observers or listeners or can be active participants.
1. Lectures
Lectures by the trainers or branch managers to a group of say 15 to 25 salesmen is the most common
method of group training. It is more suited to teach actual information. Current examples, visual aids,
authentic information make lecturing interesting and inspiring. The special merits of lecture as a method of
sales training are saving in time, economy, ability to teach large group and comprehensive and organised
presentation it is one way approach where trainee are passive listeners or observers.
2. Discussion
Discussions are possible in sales training conferences. There can be group discussions and panel discussions.
Group discussions
15 to 25 persons come together who are to exchange ideas, pool and share experiences and work out
solutions to common problem. The discussion matters include current selling problems such as meeting
price competition, meeting objections, closing sales, handling claims and adjustments and so on. Only
experienced salesman are to be allowed to participate.
Panel discussion
There will be a leader and four or more salesmen on a panel who follow planned discussion of a sales
problem in response to questions set by the leader. The leader presents and explain the sales problem, calls
upon each member of the panel by rotation to comment, closes the discussion and summarizes the views of
panel.
3. Role playing
The trainer and another salesman or salesmen together assume and play the roles of say salesman and
different types of customers showing the most effective method of demonstrating, clearing the doubts or
making complete sales presentation. The criticism and comments by the trainer and the members are
dramatized to look like real situation. It helps to develop skills and confidence through participation where
he leaves by doing.
4. Sales demonstration
Under this method, the trainer shows the salesman or a group of salesmen how to present facts, meet
competition, open interview, answer objections and conduct demonstrations. Each salesman is expected to
present information effectively about his company, products, policies and know as to how to close the sales.

After the demonstration the trainee salesman may be asked questions to verify whether they have really
understood the implications of demonstrations.
Need for motivation

1. Willing co-operation towards objectives of the organisation.
2. Loyalty to the organisation and its leadership.
3. Good discipline i.e. voluntary conformity to rules and regulations.
4. High degree of employees interest in their jobs and organisation.
5. Pride in the organisation.
6. Reduction of rates of absenteeism and labour turnover.
Methods of motivation
1. Individual basis
Individual motivation is most effective in stimulating his interest and getting best response for no two
salesmen are equally identical. Personal and casual relationship between sales manager and his salesmen
provide regular opportunities to motivate salesmen by showing them respect for personal dignity.
a. Personal conference
Personal conference between sales manager, supervisor and salesman provide salesman with a medium of
self-expression and an outlet of his likes and dislikes. It is an opportunity to share information, discuss the
issues, assure security, review the work progress and generate a sense of belongingness. These conferences
are to be held at regular intervals.
2. Personal correspondence
Writing of personal letters to salesmen and getting replies from them is really very effective method of
motivating the sales force as it grants individual salesmen consideration, praise and recognition. To get the
best of such letters, the tone must be positive, optimistic and encouraging that builds mutual trust and
confidence.
II. Group Basis

Salesmen are also motivated in groups of batches through conventions and conferences, publications,
booklets and handbooks, etc.
1. Conventions and conferences
These refers to group meetings of salesmen that provide unique opportunities for them to participate, gain
social satisfaction and express their views on all the matters influencing their work. These meetings
conducted properly, create interest, inspire and raise their morale to new heights.
2. Periodicals/publications
A periodical devoted totally to a salesman is an effective dose of motivation. It gives salesman a real sense
of participation in the enterprise as it keeps on informing them of company policies and programs. Salesmen
are invited to write articles sharing their rich and varied experiences for the benefit of others. These
publications motivate salesmen to a great loyalty and performance by keeping salesmen informed about

company's expansion, addition of new products, research and developmental achievements, diversification
and improved competitive position.
3. Sales contests
Salesmen are looking for an opportunity to exhibit their abilities to out-selling their associates. This is
possible through sales contests. It is one that appeals to the desires of salesmen to excel, to enjoy the
esteem of others, to be recognised and to belong to a winning group. The aims of sales contest are
1. To maintain and increase sales volume

2. To use it as motivating factor to do the job more effectively
3. To clear off the old stock or to introduce new products
4. To improve personal performance of competitive spirit, and
5. To develop group consciousness or team spirit.
4. Participation programs
Sense of participation is very strong motive of majority of salesmen. They desire to voice in the matters that
affect their work. They do not want to remain on pay-rolls as employees. They want to feel that they are
part of business. So they want to get all information about their business and its problems, they want to
express their views in planning and implementing sales policies and programs. This is done through
meetings with management that clears gaps and fosters sounder human relations. A committee consisting
of salesmen and the representative of management solves this problem of participation.
5. Financial security programs
Financial security is more important for majority of sales people. Among all the securities, financial security
is the strongest motivating force that stimulates salesman's interest, improves efficiency and boosts morale.
Companies recognise this fact and have granted various financial benefits to the salesmen such as group life
insurance, health hospitalisation, rates, retirement plans, vacation with pay, credit facilities, educational aid,
etc.
Customer survey
Customer survey is the systematic gathering of information from respondents for the purpose of
understanding and predicting some aspects of the behaviour of population of interest.
Customer survey
1. Problem formulation
2. Determining source of information
- Primary source
- Secondary source
3. Preparation of data collection forms
- Preparation of questions
1. Open end questions
2. Closed end questions
4. Sample design
1. Random sample

2. Systematic
3. Cluster
4. Stratified
5. Purposive sample
5. Data collection
6. Report writing
Consumer survey:- Cosumer research seeks answers to a variety of questions in respect of cosumer
characteristics and behaviour. The aim of this research is to develop an understanding about consumers,
both current and potential, and the level of satisfaction expected and derived by them from company’s
products. Broadly the areas of consumer research include the following
(i) Determining the demographic characteristics of both existing and potential consumers:
(ii) Identify the consumer needs and product expectation levels;
(iii) Identifying the factors influencing purchase decisions: and
(iv) Ascertaining the levels of consumer satisfaction.
Steps in customer survey:-
Step 1: - Problem formulation:-

The first and foremost step in any research procedure is problem formulation. It involves developing
an understanding of the problem which requires the attention of researchers and composing it after
considering all factors impinging on the problem. It means, each subject to be studied should be defined as
carefully as possible so that its scope and dimensions may be clear before further steps are contemplated.
The research problem may be either to identify the marketing problem area or to develop possible solutions
or both. It is wrong to suppose that the job of marketing research is only to find solution to problems: it may
be required to identify problems also.
Step 2:- Frame research objectives and develop the appropriate hypothesis:-
Research objectives are a frame of ends to be achieved by the research study. Researchers address
themselves to the “why of the study. Why do we want to study the problem? What do we expect form the
study? These are relevant questions. Whose answers provide a clear direction to formulate appropriate
objectives of research? Research hypothesis is a statement of tentative supposition or a possible solution to
a problem based on the marketing experience judgment or some documentary evidence. For seeking
answers relevant information will have to be collected form different sources. Therefore a researcher has to
d4evelop a catalogue of information to be sought and then determine the sources from which these may be
collected.
Step 3: - Determining source of information:-
In terms of source the information may be secondary or primary. The secondary sources provide
secondary data, which are collected not for a specific research objective of the company but for other
purposes. These are readily available in company records and are also published by different government,
quasi-government and private organizations. Internal company records are a treasure cove of such data,
which are no doubt collected for control and other purposes but are often useful sources of research
relevant information. Salesmen’s periodic reports, call-reports, sales orders, dealer accounts, consumer
complaints, etc. are some such examples of company records which provide such useful information.
Although data gathered and published by other organizations are not collected for specific company

objectives, they do meet specific data requirement of the research after necessary treatment, if any
requires.
Step 4:-
Preparation of data collection forms:- In case primary sources of information are to be tapped for
collecting information, the questions to be asked will have to be presented to the respondents in a
comprehensible acceptable form. For this purpose, usually a structured questionnaire is prepared which lists
all relevant questions in a serial. But, there cannot be a uniform questionnaire for all studies it will vary
according to the needs of study. The form of questionnaire depends on the nature of information sought
the kind of respondents and the data collection method used by the company.
Step 5: Sample designing:- After preparing data collection forms, the researchers have to identify the
respondents to be contacted. For this purpose, two alternatives are available, first the whole population or
universe of respondents may be contacted and answers sought. However, it may not be always possible and
even necessary to seek answers from all the respondents. Besides, it may be very costly and time
consuming. Therefore, researchers usually choose the second alternative of selecting a sample of
respondents from the universe. A sample is a small number of items, parts, or respondents (sample)chosen
at random form a large number(universe) of items, and tending to have similar characteristics nearly in the
same proportion as in the universe.
There are different way of selecting a sample they are:

Random sample:- If a sample is drawn in such a manner that each time an item is selected, each item in the
population or universe has an equal chance of being drawn, the sample is said to be a random one. All the
element in the universe have equal chance to occur in a sample.. This is also called as simple random
sampling.
Systematic sample:- When a sample is obtained by drawing every say tenth item on a list or in a file, the
sample is a systematic one. However, the first item is selected at random. For example, the sample of
respondents may be drawn for the census, voter’s list or telephone directory in this fashion.
Cluster sample:- It is sometimes referred to as area sample also. Where it is not possible or necessary to
prepare or get a full list of the population, the researcher, might instead get the list of blocks of residents.,
select a sample of these blocks, at random and then interview all or some residents of the blocks falling in
the sample.
Stratified sample:_ When a universe or population is known to be heterogeneous and when that
heterogeneity has a bearing on the characteristics being studied, the population may b divided into strata
and random samples of units drawn from each stratum.
A probability sample is one in which it is possible to ascertain the chance, probability of an individual item
being included in the sample. In this kind of sample it is also possible to measure with some degree of
mathematical exactness the reliability of the research results.
Non-probability samples include the purposive and the quota samples. In purposive sample, the researcher
set out to make a sample agree with the population in regard to certain characteristics, say, average income,
size of family, etc.,
In quota sample, the researcher first decides the characteristics of the items that should serve as the basis of
the quota and then determines the proportion in which these characteristics occur in the universe.

Step6: Data collection :- After selecting the sample for investigation, the next immediate job of the
researcher is to deploy investigators in the fiekld so as to carry investigation. Their job is to contact
respondents and gather data according to the method suggested and directions given. IT is, therefore
necessary that before the investigators spread out, the whole data gathering operation is planed,
investigators are properly selected and trained and methods are evolved to control their operations. Since it
is in this area that carelessness and bias creep in it is important not only to recruit the right kind of
investigators but also to direct and control their data collection work. In brief, it may be said that data
collection has to be a well-managed operations to ensure the success of all the preceding steps.
Step7: Report writing:- The end result of all the above described exercise is the report to be submitted to
the marketing executive. Broadly, the report contains analysis and conclusions based on the research data.
However, there are variations in the nature of reporting. Some reports narrate the whole research
procedure whereas others simply concentrate on the analysis and conclusions and give recommendations
relevant to the research objectives and hypothesis.
Methods of compensation
1. Straight salary method:_ Straight salary method is the oldest and most commonly used method of
compensating the sales- force. IT works on the principle of lapsed time and provides a salesman with a
predetermined sum for a period of say a week or a month. Salary scheme has three components namely
basis, variable dearness allowance and other allowances such as rent, compensatory, medical, traveling
and so on. He is due for annual increment in time- scale and advanced increments for excellence.
2. Straight commission method:- Commission method believes in payment by results than by time. It is
incentive oriented. It is productivity than the time spent that counts. Commission, as remuneration, is
linked to sales volume or profit invoicing, collection of outstanding dues as a percentage. The actual
calculation of commission may be on flat rate or sliding scale basis. The rate of commission may be
progressive or regressive as sales volume increases.
3. Salary Plus commission method:- Hybridization of the pure concepts of salary and commission methods
help in having the best of the two and worst none. IT is because, as observed earlier the merits of one
are the demerits of another. Crossbreeding has the benefits of both the methods. It works as a via
media between two extremes. It guarantees minimum for non-achievement and extra for those who
work hard. It distinguishes clearly between efficient and the inefficient. It takes the sales-force loyalty to
the organization.
(a) Drawing account and commission method:- A drawing account is a money advanced to a salesman to
be deducted from his total commission earned. The drawing account is cleared or paid each week like a
salary. Under the arrangement, any salesman failing to reach or earn high commission to cover his
drawing account is expected to reimburse the owner for his over draft before recurring his additional
commission.
(b) Salary, Expenses and commission method:- This is another possible variation of salary and
commission method. Under this method, the expenses are advanced to salary and commission. In some
cases, the salary and expenses allowance is later deducted from the amount of commissions earned by
the salesmen. In most cases, the expenses are paid outright to the salesman on all compensation plans
so designed and implemented. Further, it is customary to reimburse the traveling expenses to enable
the salesman to cover the territory incentive.
4. Bonus methods:- A bonus is a sum paid for extra effort or merits or for results beyond normal
expectations. IT is a non- contractual payment. A bonus that represents a fixed percentage of the
volume, profit or expenses over a pre determined quota is nothing but commission. The distinction
between commission and bonus is that commission is paid on total sales volume or profit while the

bonus is paid only on that portion over and above the predetermined quota. There can be two
variations of such plans namely, salary and bonus method (b) Salary bonus and commission methods.
Methods of controlling sales force;
1. Personal observation by sales executive
2. Merit rating
3. Customer opinion of salesmen
4. Analysis of sales records and reports
5. Comparison of salesman’s performance with quotas.
6. Ratio analysis
7. Profit and loss statement analysis
Qualitative Vs. Quantitative survey

Quanlitative
1. It is an attempt to observe or determine statistically the behaviour of different customer behaviour.

2. It probes them at conscious level -what, how much, etc.
3. Emphasis is on gathering statistics and analysing them by the application of various statistical
techniques.
4. It doesn't find out an answer for 'why' of customer behaviour.
Quantitative
1. To find why customer have behaved in particular manner, it probe at subconscious and unconscious.

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AJK COLLEGE OF ARTS AND SCIENCE

Navakkarai, Coimbatore - 641 105

Subject Title with Code: ADVERTISING AND SALES PROMOTION

UNIT II Advertising agencies-advertising budget-advertising appeals - advertising organisation-social

UNIT III Advertising layout- functions-design of layout-typography printing process-lithography-printing

UNIT IV Sales force Management-Importance-sales force decision-sales force size-recruitment &

UNIT V Sales promotion: Meaning-methods-promotional strategy-marketing communication and

1. Bolen J.H. Advertising

2. Sontakk C.N. Advertising and Sales Management

3. Davar S.K. Salesmanship and advertising

4. Baranikumar, Advertising and Sales Promotion.

AJKCAS – Study Material – Odd Semester 2022 - 2023| 1

Advertising: Meaning-importance-objectives-media-forms of media-press Newspaper trade journal-

1. To do the entire selling job.

Factors to be considered in selecting the media:-

Nature of product to be advertised is very important while deciding the medium of

 introduction of new product,

AJKCAS – Study Material – Odd Semester 2022 - 2023| 2

 If it is for local market paper inserts, Boards posters can be used,

6.Types of Audience:- Out of the total market share

Newspaper Magazines Journals

Daily Weekly Weekly Fortnightly

AJKCAS – Study Material – Odd Semester 2022 - 2023| 3

Merits of newspapers are:-

4. It makes quick response

2. They have short span of life.

3. Illiteracy affects its utility.

1. It can be directed towards a particular class of customers.

1. When compared with newspapers circulation is small.

AJKCAS – Study Material – Odd Semester 2022 - 2023| 4

1. It is having longer life than newspapers

6. Magazines guarantee uniformity of coverage.

TRADE JOURNALS & MAGAZINES:

1. It is having longer life than newspapers

6. Magazines guarantee uniformity of coverage.

AJKCAS – Study Material – Odd Semester 2022 - 2023| 5

Posters Or Mural Advertising:

1. Design of the poster.

The Main Advantages Are:

1. The cost is less

3. It attracts many customers

2. It is affected by natural calamities.

AJKCAS – Study Material – Odd Semester 2022 - 2023| 6

Eg., Smoke writing, Kite writing.

1. It has less coverage when compared to other medium

AJKCAS – Study Material – Odd Semester 2022 - 2023| 7

4. It can be used only as supplement to other media.

These letters follows AIDA principle

Arresting the Attention

Actuating the Action

2. Detailed information can be conveyed.

3. Effectiveness of this system can be measured.

4. This system is elastic, addition or deletion is possible.

AJKCAS – Study Material – Odd Semester 2022 - 2023| 8

5. Privacy can be maintained.

1. In drafting mail specialized skill is needed.

Nowadays television is widely used for advertisement. As it audio-visual medium appealing to

1. It can create good impact on audience

Radio is quickest medium of advertising when compared to newspapers or magazines. It is more

1. Coverage and appeal are wide.

AJKCAS – Study Material – Odd Semester 2022 - 2023| 9

Cinema and Theatre Advertising:-

3. The audience are irritated of such group of advertisement.

4. Only cine goers can be covered by it.