Professional Documents
Culture Documents
Advertising objectives
Advertising agency
Advertising Budgets
Personal Selling:
A Promotional activity by which the consumers are personally encouraged and convinced to buy
the goods and services of a manufacturer is called personal selling.
Personal Selling Methods
Any one of the following selling methods may be used in personal selling, depending upon
characteristics of a product or buyer.
1. Tender Selling
The buyer may invite open tenders through newspapers and a company is required to submit
their offers with price, terms of payment and delivery period, etc.
Generally, in all Government purchase, sealed tenders are invited and are opened on a particular
prefixed date and time and orders may be granted to the lowest bidder. Sometimes, purchaser
may negotiate bids and finalize order with a company which may not be the lowest bidder. The
role of a salesman will be quite useful in such negotiations.
2. Selling through discussions
In large companies, orders are finalized following discussions, at the purchaser’s place. The
order is generally issued after verifying seller’s performance, reliability and after sales service.
Generally, private sector companies choose this route as this is faster and many problems and
clarifications could be thrashed out across the table through informal and formal discussions.
3. Door to Door selling
In this method, company’s salesman visits prospective buyers to explore the possibilities of
selling. This method is generally used for household products and for new product introduction.
This method of selling is highly useful in rural, semi urban and even in cities. In India, consumer
products like soaps, shampoo, sarees are sold regularly through door to door selling.
4. Over the Counter selling (OTC selling)
In this method, in all retail outlets, the salesmen sell a company’s products exclusively and this
method is used for all consumer goods. In India and in many Asian countries, this method
employs highest number of salespersons.
Indian companies like Reliance (Only Vimal Showrooms), Bata, Philips, BPL, Sony, Asian
Paints, Zodiac Gwalior Rayon, Bombay Dyeing, Mafatlal, Pierre Cardin sell whole lot of
products ranging from suiting materials, textiles, ready made garments, shoes, colour television,
audio-video electronic products, paints and food products through this method.
ADVERTISEMENT MEANING
The word advertising is derived from two Latin Words Ad and Verto. Ad means towards and
Verto means I turn. It means to turn the people’s attention to a specific thing.
DEFINITION:
According to Stanton, “Advertising consists of all the activities involved in presenting to a group
of non personal, oral and visual, openly sponsored message regarding a product, service or idea.
This message called an advertisement is disseminated through one or more media and is paid for
by the identified sponsor.”
ELEMENTS OF ADVERTISING
1. Non personal Communication: Advertising is a non personal communication reaching a
large group of buyers. The communication is speedy permitting the advertiser to speak to
hundreds or thousands of people with in a shorter period.
2. Matter of Record: It is a matter of record furnishing information for the benefit of the buyers.
It guides them to make a satisfactory purchase.
3. Paid form of publicity: Advertising is a paid form of presentation. The sponsor must pay for
it other person whose media is employed.
4. Persuasion of the Buyers: The advertisement must be capable of persuading the buyers to
purchase the goods advertised. It is an art of influencing the human action, the awakening of the
desire to possess one’s product.
5. Identifiable with the sponsor: Advertisements are identifiable with their sponsor. The
producer sponsors advertisement campaign by employing a suitable media.
FUNCTIONS OF ADVERTISING
1. Cheapening of Prices: Amongst the various modes of selling, advertising is considered as the
cheapest method of selling. The advertiser can appeal to the public on a very wide scale with a
comparatively lesser expenditure.
2. Widening of the Market: Effective advertisement stimulates the demand for the producer to
find out the new markets for his product, by influencing the minds of the public.
3. Reduction of distribution expenditure: Mass advertising brings a reduction in the
distribution costs by relieving the manufacturers from incurring expenditure on sales promotion
staff.
4. Maintenance of better quality and services: Advertising enables the businessmen to build
up the goodwill for his undertakings. It makes him to enjoy high reputation.
5. Promotion of Social Welfare: Advertising not only ensures success to business men but also
brings benefits to the society and thereby promotes the welfare of the society.
Message content:
An advertising message is an idea an advertiser wants to communicate to their target audience.
Its goal is to convince people to perform a certain action, such as registering, purchasing
something, or making a reservation.
Importance of Message Content:
It allows you to skyrocket your brand awareness. Well-thought-out advertising
campaigns go straight to the hearts of your clients. Companies that go beyond selling
enjoy better brand awareness and recognition. For example, Canon launched a #selfieless
campaign on Christmas Eve, which was symbolic. They encouraged people from all over
the world to capture not themselves but their good deeds to share altruistic vibes and
inspire.
It helps keep your customers engaged. Clients can stop buying from you just because
you don’t interact with them. Hence, they simply forget about your company. However,
targeted and highly relevant promotional offers will definitely strike the right chord with
your audience. They will appreciate that you know their problems and offer the best
solutions.
It educates your prospects. Leads are not ready to buy immediately. They may not fully
understand the way your service works or how to make the most out of your products.
Besides, they can get stuck at any stage of the sales funnel. Via an advertising message,
you can offer them solutions to cope with their problems. As a result, you’ll be in the
right place at the right time.
It helps you understand your audience. Analyzing the way your leads and customers
interact and respond to your messages will provide valuable insights. You’ll get to know
which offers, channels, and tactics work better for your audience.
It increases your sales. Each benefit listed above results in a sales increase. If you
communicate your message to the right people via the channels they prefer, you can
boost sales. Advertising during holidays, clearances, and other important occasions will
work in your favor.
Components of an Advertising Message
It doesn’t matter whether you choose online or offline advertising. The structure will be the same
because the nature of human perception predetermines it.
Let’s break it down into five components.
1. A headline. This is the first advertisement element a user notices. It should be eye-
catching and informative since it is usually placed at the top of an ad. A headline conveys
the main idea of an ad, so marketers need to do their best to create a selling headline. It
can be presented as a promise, breaking news, a command, or a question. To make
readers read further, it should be short and unambiguous.
2. A sub-headline. The advertisers sometimes omit this element, but you can’t
underestimate its power. A sub-headline can support and continue your headline. It’s
usually placed right under it, so it’s difficult to leave it unnoticed. If your headline is a
question, a sub-headline can be the answer. These two elements complement each other
perfectly. A sub-headline may be longer than a headline — up to a sentence.
3. Copy. An advertising message copy should answer all the possible questions a user may
have after reading your headline and sub-headline. This is just the place to showcase your
product value. Consider performing a thorough analysis of your target audience to sort
out the most important benefits that can help solve your clients’ problems and sell your
product.
4. Images. This element grabs second place in attracting user attention to an ad after a
headline. Images assist you in visualizing your product, demonstrating its benefits,
creating associations, and keeping your customers interested.
5. Call-to-action. CTA is an action you want users to take after reading your advertising
message. It should tell them directly what they should do next to evaluate the benefits of
your product. It can say “Buy”, “Visit a website”, “Book a seat”, “Reserve a ticket.”
Advertisement Budgets:
An advertising budget is a company’s allocation of promotional expenditures over a specified
time period. It is a measure of a company’s planned expenditure on accomplishing marketing
objectives. The advertising budget is where a company’s strategic marketing objectives and cost-
benefit analysis converge in its operational plans.
The Three Pillars of the Advertising Budget
1. Situational Analysis
A situational analysis identifies the challenges and opportunities facing a company both
internally and externally. The structured analysis breaks down the company, the customers it
serves, and the competition in the market. It relates socio-cultural, technological, economic, and
political-regulatory trends to a company’s operations. Ultimately, the situational analysis sets the
framework for the development of a company’s strategic plan.
2. Segmentation, Targeting, and Positioning (STP)
A segmentation, targeting, and positioning (STP) analysis identifies potential opportunities for
an organization to pursue. Segmentation is the process where customer groups are identified. The
customer groups are formed by sorting through geographic, demographic, and psychographic
variables.
Targeting involves selecting the most attractive customer groups. Factors that influence how
attractive a consumer group can be are market size, spending power, or even customer loyalty.
Once market segments are ordinally ranked, the most valuable are targeted.
Positioning requires developing strategies pandering the target markets. The previously
completed situational analysis provides background information to build a positioning strategy.
The purpose of the positioning strategy is to ensure that the value proposition connects with the
targeted market.
A thorough STP analysis is critical in maximizing the impact of an advertising campaign. In
addition, it is important to formulate streamlined strategies to reduce excess costs.
3. Return on Investment
Quantifying an advertising campaign’s impact on a company’s operating income is critical to
understanding the relationship between advertising expenditure and revenue generation. A cost-
benefit analysis is commonly conducted to assess the net financial benefit of a project
undertaken.
The cost-benefit analysis discounts forecasted after-tax operating cash flows to its Net Present
Value (NPV). For any given expenditure on advertising, a company should aim to maximize the
NPV of advertising expenditure.
Industry-Normal Advertising Budget Practices
Common advertising budget methods include:
1. Percentage of Sales Method
Commonly, a company’s advertising budget is a percentage allocation of projected revenues.
Accurately budgeting advertising expenditure requires an in-depth analysis of historical data to
better understand the relationship between advertising and revenues.
Business-to-business companies generally spend between 2%-5% of their revenues on
advertising. On the other hand, business-to-consumer companies generally spend between 5%-
10% of their revenues on advertising.
2. Competitive Parity Method
The competitive parity method is a common strategy utilized by companies that wish not to be
out-advertised by the competition. The strategy involves using competitor advertising spending
as a benchmark for a company’s own spending.
However, budgeting the same amount of money does not guarantee the same outcome for a
company. Therefore, the competitive party method comes with limitations.
3. Objective and Task Method
The objective and task method is commonly used by large corporations. It brings forth is a strong
correlation between advertising spending and overall marketing objectives. The method is only
as useful as its underlying strategic objectives.
Measuring Advertising Effectiveness:
The marketing manager is deeply interested in knowing how far his advertising has succeeded in
achieving its objectives. He needs to evaluate the effectiveness of advertising for three purposes:
(i) To improve the effectiveness of advertising by making changes in advertising message,
media, timing, etc. Such an evaluation provides him invaluable guidance in planning the
optimum media mix.
(ii) To convince management about the instrumentality of advertising in improving the firm’s
profitability so as to get the required level of budget appropriation for advertising.
(iii) To determine the optimum level of advertising expenditure. Measurement of advertising
effectiveness has turned out to be an extremely complex and challenging task. Sales are the result
of such a large number of variables including the product, price, distribution channels,
advertising, personal selling, etc., that it is impossible to determine what proportion of it is due to
effective advertising. However, marketing researchers have developed some tools for measuring
the communication as well as sales effectiveness of advertising.
Measures used for measuring advertising effectiveness: A number of tests have been developed
for measuring the communication effectiveness of advertising. It is generally assumed that there
is a positive relationship between communication and sales effect of advertising but it is not
known how strong is that relationship.
Recall tests: Recall tests of measuring advertising effectiveness are aimed at determining how
many people saw or heard the advertisement and how many of them remember it. The
respondents are shown some or all of the previously run advertisements, and they are asked what
part of it they remembered and could they recall its sponsor. The assumption underlying this test
is that larger the number of people who remember the advertisement, the larger the number of
people who will buy the product. Recall tests are also called rectgniti9n, readership and
viewership tests.
Response Tests: Both consumer and industrial product advertisements sometimes include a
response coupon urging the reader to place order or seek more information. Television and radio
commercials similarly urge the viewers/listeners to respond at the specified address or telephone
number. Effectiveness of such advertisements is measured in terms of responses received.
Attitude and Opinion Tests: A number of tests have been devised for measuring the impact of
advertising in modifying the attitude or opinion of potential customers. Axelord has listed the
following tests of this nature. The Lottery Measure: The respondents are asked which brand in
the product class would they prefer to have if they were to win a lottery.
The Rating Scale: The respondents are given a rating scale for indicating the degree of their like
or dislike for the advertiser’s brand. The Predisposition-to-Buy Scale: The respondents are asked
to indicate their brand preference by choosing one of the statements provided to them. These
statements read something like this: I will surely buy X brand; I will never buy X brand.
The Constant Sum Scale: The respondents are given a list including the advertiser’s brand and
its competing brands. There is a pocket beside each brand name. Respondents are asked to
distribute cards in these pockets to indicate the likelihood of their purchase of the brand
concerned. A respondent may put several or no cards in front of any brand.
Paired Comparison: The respondents are given advertiser’s brand along with its two
competitive brands at a time. They have to indicate their preferred brand from each pair until
they arrive at their most preferred brand.
Forced Switching: This method is similar to lottery method with the only difference that the
respondents are asked to indicate that if they win the lottery, what brand except their regular
brand, they would prefer to receive as a gift.
Advertising Recall: The respondents are asked to recall what advertisements they have read,
seen, or heard during the past three months.
First and Second Choice: The respondents are asked to indicate the brand they would buy if
they were to go shopping immediately. Then they are asked that if their preferred brand was not
available, what other brand they would buy.
Awareness: The respondents are asked to tell the brands of the advertiser’s product class.
Buying Game: The respondents are given a number of cards with each card describing a unique
shopping situation they might possibly encounter if they went out shopping. They are asked to
indicate the brand they would buy in each of these situations.
2. Build up your brand on social media: The simplest way to promote your business on social
media is to start building your brand on your platform of choice.
The idea is to have a place on social media that provides enough information about you and your
brand. When you promote on social media, people will want to know more about your brand’s
personality and identity.
3. Complete your profile
Your profile contains information about your business, and it’s where users will go when they
want to know more details about your business. To do social media promotion successfully, you
need to have your business information readily available on your profile.
The type of information you can add will vary with the platform, but generally, you should
include:
Your brand name
A branded profile picture
Your company’s location
A link to your website
A link to your website
A short description of what your business does
Links to any other social media accounts you may have
4. Integrate your logo
Your logo is what your audience will use to identify you on social media. Think about Target’s
logo, the red bulls eye (along with their cute terrier mascot, Bulls eye), people can recognize it
anywhere.
On social media, your profile picture will stand out more than your profile name, so it’s essential
to have a well-branded logo.
Your logo helps you improve brand identity. It helps give your brand a personality, making it
much easier for people to form a connection with your brand. It can also provide you with a
source for the social media promotional material that people are excited to follow and engage
with.
5. Use hashtags with your content
Hashtags are a lot like keywords in search engine optimization (SEO). Users on social media use
hashtags to find content that they find interesting. Using an industry-appropriate hashtag like
#UrbanOutfitters or #coldbrewcoffee can help your audience find your brand on social media.
Additionally, if you’re running a social media promotion campaign, use brand hashtags so users
can easily find your promotional content. You also get free advertising whenever anyone else uses
your branded hashtags.
For example, If Urban Outfitters was running a contest as promotional content, they could use
hashtags like #UOGiveaway and #UOContest to promote it.
Hashtags are most active on platforms like Twitter and Instagram. If you’re using either of those
networks, you’ll want to ensure you use the right hashtags to promote your business.
6. Post content on your social profiles
If you want to gain followers on social media, you must post content frequently and consistently.
Consistency ensures your content reaches your audience, while high-quality, relevant, and
authentic content gets your audience to engage.
Every social media promotion campaign needs content. From text posts to videos, your content is
a reflection of your business and brand. The content you post on social media showcases your
brand personality, so make sure that everything you post has a consistent look and feel.
7. Use social media buttons to promote your profiles
Social media buttons are a great way to promote your social media presence outside of social
media.
You can add buttons for your social media networks to a wide variety of places. Some great areas
for social media buttons include:
Emails
Blog posts
Website footer or sidebar
About pages
You’ll want to keep the size of your social media links in mind. In most cases, you want your
social media links to be small but identifiable so people can easily navigate to the social page of
interest.