CHAPTER: 6

PRODUCT PROMOTION
Promotion
Promotion is a marketing tool, used as a strategy to communicate
between the sellers and buyers. The aim of promotion is to increase
awareness, create interest, generate sales, or create brand loyalty.
Definition
According to Philip Kotler “Promotion includes all the activities of the
company undertake to communicate and promote its product to the
target market”.
Types of promotional blend
Push blend: -
In a push strategy, the manufactures force the dealersto carry the
product and promote it to the customers, i.e. convince the potential
buyers to buy it. Here personal selling and trade promotion are likely to
be more effective.
Pull blend: -
In a pull strategy, the consumers ask the dealers to carry the product, i.e.
customers themselves purchase the product. Here, Advertising and
consumer promotion are more appropriate.
Forms of promotion
1. Personal selling: -
It is the most important, the most effective and the most costly form
of promotion. It is the best means of oral or face to face or direct
communication.
2. Advertising: -
It is an impersonal method of communication as well as an
impersonal salesmanship for mass selling and it is a means of mass
communication. Advertising is also an important form of promotion
and it costs less than personal selling.
3. Sales Promotion: -
The marketing activities other than advertising, publicity and
personal selling are known as sales promotion. It serves as a bridge
between personal selling and advertising. It is an aggressive method
of a selling.
 4. Public Relation: -
It is a form of promotion. It creates, develops and maintains a bright
image of an organization on the public. Thus, the goodwill of the
seller increases and leads to good selling and promotes the sale of
goods. Under competition and consumer-oriented marketing it is
very effective.
5. Publicity: -
It is a non-personal stimulation of demand as advertising. It
stimulates demand for a product or service or a business unit by
making publicity in radio, television or stage.
6. Point of Purchase Display: -
Display serves to examine the product and make buying decision.
Promotion at the point of purchase is more effective. Proper display
of products is done by manufacturers or distributors.
Example; -Automobile show-room with promotional literature and
pricing information helps the buyers to test the products.
7. Packaging: -
It differentiates and protects a product. It plays two critical
promotional roles.Package provides product protection, ease of
handling, selling ability, convenience and information. It attracts
the customers.
8. Direct Mail: -
Direct mail is marketing material or product mailed directly to the
homes of consumers or offices of business buyers.
Examples: - postcards with an offer, catalogs that display goods,
coupons, free samples sent by businesses.
9. Other Forms of Promotion: -
Sampling is one form of special promotion. Sampling of new food
products, and other consumer products, especially sample medicines
to doctors are to introduce the new products to the consumers.
Couponing is yet another form of promotion.
Promotion mix
A business’s total marketing communications programme is called the
“promotional mix”. It consists of a blend of advertising, personal selling,
sales promotion and public relations tools. The particular way in which
a marketer combines promotional activities is known as promotion mix.
Elements of promotion mix
1. Advertising: -
 The advertising is any paid form of non-personal presentation and
promotion of goods and services by the identified sponsor in the
exchange of a fee.
2. Personal Selling: -
This is one of the traditional forms of promotional tool. It is a face to
face interaction between the company representative and the
customer with the objective to influence the customer to purchase the
product or services.
3. Sales Promotion: -
The sales promotion is the short-term incentives given to the
customers to have an increased sale for a given period. Generally,
the sales promotion schemes are floated in the market at the time of
festivals or the end of the season. Discounts, Coupons, Payback
offers, Freebies, etc. are some of the sales promotion schemes.
4. Public Relations: -
The marketers try to build a favorable image in the market by
creating relations with the general public. The public comprises of
the customers, employees, suppliers, distributors, shareholders,
government and the society as a whole.
5. Direct Marketing: -
With the intent of technology, companies reach customers directly
without any intermediaries or any paid medium. The e-mails, text
messages, Fax, are some of the tools of direct marketing
Factors influencing promotional mix
1. Nature of the Product: -
Promotion mix will vary according to the nature of the product.
Consumer goods require mass advertisement.
Industrial goods require personal selling, advertising, displays etc.
Complex and technical products like computer need personal selling.
2. Nature of the Customer: -
The nature of the customer, whether he is urban or rural.
If the target customer belongs to the urbanmasses, he can be easily
reached through traditional means of marketing, but if the target
 customer belongs to rural India, the company would have to
approach him using a different marketing tactic.
3. Product Life Cycle: -
The marketing objectives and strategies are different at each stage
of the product in its life cycle.
During the introductory stage intensive advertising and personal
selling are required for effecting product awareness.
During growth stage advertising should be extended to maximize
the market share.
During maturity stage persuasive advertising and sales promotion
techniques are beneficial.
But at the declining stage advertisement and sales promotion are
reduced to the minimum.
4. Availability of Funds: -
The amount of funds available for the purpose plays a vital role in
deciding the combination of promotional tools. If the funds are
adequate the firm can spend more for advertising and sales
promotion. But small firms with limited resources can depend on
personal selling.cc
5. Market size: -
If there is limited number of buyers, direct selling is enough. But if
the market size is large the promotional tool is mainly advertising.
6. Distribution Strategy
If the products are directly sold by the manufacturer personal
selling is the tool of promotion. If the product passes through a
longer channel more importance should be given to advertising.
7. Pricing Strategy
Pricing influences promotion strategy. If the brand is priced higher
than the competitor’s price, personal selling is used. If the price is
comparatively low only little promotion is needed.
8. Cost of Promotion
The cost of the media of advertising and sales promotion tools
should also be considered while deciding the promotional mix.
9. Market Penetration
 A product having good market penetration is well-known to the
buyers. In that situation, middlemen are motivated to spend more
an advertising.
10. Promotional strategy
The promotional mix largely depends on the company’s promotional
strategy, i.e. whether it accepts the push strategy or a pull strategy.
In a push strategy, the manufactures force the dealers to carry the
product and promote it to the customers.in the case of pull strategy,
the consumers ask the dealers to carry the product.
Advertising
Advertising is any non-personal promotion of ideas, goods or services
of an identified businessman known as sponsor. The message which is
presented is known as “advertisement”. The costs of advertisement are
borne by its sponsor.
Definition
 According to Philip Kotler “advertising is any paid form of non-
personal presentation and promotion of goods, services or ideas by
an identified sponsor.
 American Marketing Association has defined advertising as “any
paid form of non-personal presentation and promotion of ideas,
goods and services of an identified sponsor.”
Features of advertising
 It is a paid form of communication.
 It is a non-personal presentation of message.
 Advertisement is issued by an identified sponsor.
 The purpose of advertising is to promote idea about the products
and services of a business.
 Tool for market promotion.
Objectives or importance of advertising
 To educate the public
 To build primary demand
 To build overall company image
 To increase the share in the market
 To inform about the availability of products
 To increase sales and profit
  To reach new users or market for the product
Functions of advertising
1. Promotion of Sales:
Advertising promotes the sale of goods and services by informing
and persuading the people to buy them. A good advertising
campaign helps in winning customers and generating revenues.
2. Identifying Brands and Products
Products, services and ideas are sold through businesses that are
differentiated by their brand identities. Brand identity is
communicated to the public via advertising.
3. Providing Information to Consumers: -
Advertising supplies the necessary information to consumers so that
they know what is available and where to buy it. It broadcasts
information on products, services and ideas sold on the open market
through a variety of media portals.
4. Generating Product Demand
The demand generated by advertising, public relations, and sales
promotion "pulls" the goods or services through channels of
distribution.
5. Building a Customer Base
Consistent quality advertising increases consumer loyalty for a
product, service or idea. Advertising seeks to maintain the current
customer base by reinforcing purchasing behavior with additional
information about the benefits of brands.
6. Increasing Standard of Living:
Advertising educates the people about the products and their uses. It
is advertising which has helped people in adopting new ways of life
and giving up old habits. It has contributed a lot towards the
betterment of the standard of living of the society.
7. Support to Media: -
Advertising sustains press. Advertising provides an important
source of revenue to the publishers of newspapers and magazines
and the producers of T.V. programmers.
Advantages of advertising
  Introduces a new product in the market.
 It enables the manufactures to expand his market.
 Advertisement facilitates mass production to goods and increases
the volume of sales.
 Fights competition
 Enhances good-will
 Educates the consumers
 Elimination of middlemen
 Better quality products
 Supports the salesmanship
 Advertising provides and creates more employment opportunities
 Advertising is immensely helpful in reducing the cost of the
newspapers and magazines etc.
 Higher standard of living
Types of advertising
1. Display Ads
This includes digital and newspaper advertising. Digital ads are the
updated version of newspaper advertising. It means buying ad
space on sites that are of interest to your target demographic.
2. Social Media Ads
Pinterest, Instagram, Facebook and pretty much all social media
sites offer relatively inexpensive advertising. Paid social media ads
are the kind of advertisement that focuses on reaching your target
audience with how much you pay adjusted to how many see it and
engage with it.
3. Newspapers and Magazines
These kinds of advertisements are traditional yet no less effective.
Combining this type of advertisement between local, statewide and
national print media is a great marketing campaign strategy.
4. Outdoor Advertising
Outdoor advertising also known as out-of-home advertising, is
advertising that reaches consumers when they are outside their
homes.
Examples: -Billboards, walls capes,Transitand posters.
5. Radio and Podcasts
Verbal promotion is a type of advertisement that can be repeated
often as part of radio or podcast shows. You can have a traditional
type of ad recorded to be played or there is also the chance of
sponsorship.
 6. Direct Mail and Personal Sales
Direct mail, or the art of sending a compelling sales letter by snail
mail to your target audience, can offer a healthy return on
investment for small businesses.
7. Video Ads
This type of advertisement engages with your target customers on a
digital level. Create a short video and post it on your social media or
pay to have it run on sites like YouTube, Hulu and blogs.
8. Product Placement
This kind of advertisement is seen more and more. If you pay for a
podcast host to mention using your product or pay a television show
to feature a character talking about or using your service, that is
product placement. You can also talk to popular YouTube channel
hosts about this type of advertisement.
9. Email Marketing
A kind of advertisement that is focused on your existing customers,
email marketing involves them signing up for promotional sales or
newsletters focused on your brand.
10. Event Marketing
Paying to sponsor a sports team or a charity benefit falls under
event marketing.
Limitation of advertising
 Absence of personal touch makes advertising less forceful.
 It is very difficult to judge the effectiveness of an advertising
message.
 Lack of feedback.
 Advertising message is standardized and hence cannot be changed
according to the requirements of different customers.
 Pushes out small businesses.
 Misleads consumers.
 Eliminates the middle person
Advertisement copy
Advertisement Copy is the soul of an advertisement. An advertisement
copy is all the written or spoken matter in an advertisement expressed in
words or sentences and figures designed to convey the desired message to
the target consumers.
Features of good advertisement copy
 1. It should be simple: -
The first important ingredient of an advertisement copy is that it
should be written in simple language. It should be capable of proper
understanding. It should not use ornamental and tough words
rather short, simple and properly understandable words.
2. It should be capable of holding the reader’s attention: -
An advertisement copy should be capable of holding the attention of
the reader. It should be presented in such a manner which attracts
the consumer immediately.
3. It must be suggestive: -
The advertisement copy should be capable of suggesting the reader
about the utility and use of the product. Effective slogans can be used
to give suggestions to the people.
4. It should educate the people: -
An advertisement copy containing information with regard to use,
sources from where the product can be obtained, price and services
available along with the product is greatly helpful in enhancing the
demand and enlarging the sales.
5. It Should have memorisingvalue: -
The advertisement copy should be prepared in such a manner that a
reader gets ever lasting impression about the product. It can be
successfully created by repeating the advertisement time and again.
Repetition projects the permanent image about the product on the
reader’s mind.
6. It should be true: -
An advertisement copy should be truthful. It should not misrepresent
and conceal the true facts about the product. Rather it should clearly
lay down the limitations in the product.
Example: - a cloth merchant should clearly specify about the fading
of colour and shrinkage of yarn, if it is so.
7. It should have conviction value: -
The advertisement copy shall be able to have ever lasting impression
on the reader, if the suggestions are backed by convincing
arguments. The reader should not have any doubt on the quality of
the product. He should be fully convinced and satisfied understand
easily.
Types of advertisement copy
1. Scientific copy
 Scientific copy is of technical nature and it provides details
regarding the producer and the product.
(This type of copy is generally used by engineering and drug &
pharmaceutical firms.)
2. Descriptive Copy
This copy is non-technical in nature and is prepared in such a
manner that a layman can understand it. It gives detailed
information about the product in very simple language.
(This type of advertisement copy is generally used for the products
which are purchased as a matter of routine.)
3. Topical Copy
Topical copy is that advertisement copy which is intended to appeal
the target prospects by establishing a connection between the
product and a particular recent happening. This type of copy
commands good deal of interest because of that sensational event
which are fresh in the minds of the prospects. For example –
advertising copy of Adidas during sports.
4. Narrative Copy
Under this of copy, appeals are made to the prospects with the help
of fictitious stories which narrates the benefits of purchasing the
product.
5. Personality Copy
This type of advertisement copy attempts to encash the opinion of an
important personality about the product. Personality advertisement
copies are quite popular now a day on television.
6. Questioning Copy
Questioning copy includes a number of questions expected to be
answered by the prospects. The answer of these questions lies in the
use of the product so advertised.
7. Suggestive Copy
Suggestive copies are those advertisement copies which try to
suggest the audience directly or indirectly for pursuing them to
purchase a particular product.
8. Reason why copy
In this type of advertising copy advertised message explains why it
is necessary to have the product. It gives definite positive points in
favour of a particular product.
9. Fear Copy
 Those advertising copy which appeal to the sense of fear of prospects
come under this category. These copies arouse deep interest in
prospect for protecting their valuables.
Essentials of advertisement copy
1. Attention Value: -
An advertising copy must attract the attention of the prospective
customers, otherwise all the efforts and expenses on advertisement
will go waste. For holding attention use of illustrations, colours,
novelties and display are useful.
2. Interest Value: -
Only gaining attention of the prospects will not induce them to buy
the product. Therefore, an advertising copy must be such that it
arouses interest value in the customer.
3. Suggestive Value: -
The third essential of a good advertising copy is its suggestive value.
For this purpose, the advertising copy must include the merits of the
product.
4. Reception Value: -
All three values stated above i.e. attention, interest and suggestive
cannot give desired result of advertisement if people forget it.
Therefore, the advertising copy layout should be such that it makes
permanent impression in the mind of the public.
5. Sentimental Value: -
Sales of certain product heavily depend upon the sentiments of the
buyers. It is especially true in case of food products. People patronize
the place where they find good and clean food with satisfactory
service.
6. Educative and Creative Value: -
Another important essential of a good advertising copy is that it
must be educative and creative. Educative and creative value of an
advertising copy is particularly important in case of products which
are meant for replacing existing products.
Advertising media
Advertising media are the devices by which and through which the
advertising messages are transmitted by the advertisers to the prospective
and existing customers. The message regarding the product or service is
passed on to the consumers or persons concerned through the media.
OR
Advertising media, also referred as ad media, can be defined as:
Advertising media are the means or vehicles through which advertiser
communicates his message to prospective customers to influence their
behavior.
Selection of advertising media
The selection of a media is very important. It will influence the impact and
cost of advertising. The target audience should also be identified.The
selection of media involves the selection of a particular source or vehicle of
advertise-ment and its utilization over a period of time.
 The financial allocation for advertising.
 The nature of the product and the demand for it.
 The type of prospects, their location and other characteristics,
 The nature of competition and the extent of coverage required,
 Cost of media, co-operation and promotional aids offered by media,
media circulation.
Classification of advertising media
I. Indoor advertising
When advertising is made through newspapers, magazines, radio,
T.V. programs or cinema programs in Video etc., so that people can
get the message at home, it is known as Indoor advertisement.
People read or listen to the advertisement when they are indoor.

Advantages of indoor advertising

 Increase brand awareness

 Guaranteed impression
 Spontaneous decision
 Less competition
 It is more effective for all purpose

A. Press advertising: -
Press media are also called print media. Print media are popular
and widely used for commercial advertising. A number of people
can be addressed by print media.Press media mainly involves
newspapers, magazines, and other publications.
 a. Newspaper: -
Newspapers are a popular medium to contact or inform a large
number of customers.
Advantages Disadvantages
 Wide coverage  Misleads consumers
 It is flexible  It has a very short life
span
 It can be given  It will not reach illiterate
continuously & regularly people
 Creates employment  Discourage small business
opportunities
 Eliminates the "middle  The quality of the paper
person" used is low

b. Magazines: -
Magazine ads is the ads that people see placed throughout
publications. Magazines and ads advertisements in Magazines
offer reader's inspiration and inspiration often leads to purchase.
Advantages Disadvantages
 High segmentation  Limited flexibility
 The magazine has a  Less population read
longer life compared to magazine compared to
newspaper newspaper.
 Proper magazine if  Magazines are
selected, reaches the right expensive compared to
type of target audience. newspapers.
 The paper and image  High cost
quality are generally
good
B. Radio advertising: -
Radio has been a traditional medium of advertising.Radio
advertising offers you the opportunity to deliver a simple yet
powerful message to a targeted group of consumers that may be
interested in your product or service.
Advantages Disadvantages
 It is flexibility and timely  Only limited time will be
allowed
  It is suitable even for
illiterate people.
 It can be broadcast at the
regional, national,
international
 Advertisement matter
can be presented as a
song or as a short story.
 Products requiring
technical knowledge
cannot be advertised
successfully through
radio.
 Visual effects are totally
absent, the advertiser
cannot expect the
desired impact.
 Not possible to measure
the effectives of radio
advertising

C. Television: -
Tv advertising is the latest medium of mass communication and
widely used for advertisement.it is an audiovisual medium because
one can see and hear at a time.

Advantages Disadvantages
 Reaches a wide, targeted
audience.
 Television advertising can
reach every one including
the illiterate people.
 Both audio as well as
visual effects can be
created through
television.
 People are impressed by
pictorial presentation
 Personal appeal
 Television advertising is
very expensive
 Short message life
 It is suitable only for
large firms.
 The impact of advertising
cannot be measured
 High production cost

D. Film Advertising: -
Short film on various consumer products and services are prepared
by the marketers. These films are screened in cinema theaters
usually before movies.
 Advantages
 It offers wider coverage
 Short film offers scope
for demonstration.
 With audio-visual effects,
best impact is created.
II. Outdoor advertising: -
Outdoor advertising, also known as out-of-home advertising, is
advertising that reaches consumers when they are outside their
homes.
Advantages
 It helps in building your
brand.
 It is less expensive.
 Outdoor advertisements
are the best medium to
inform the moving
population
 Ability to create
awareness.
 Its effect is permanent
Disadvantages
 The cost of production is
veryhigh
 Its coverage and
effectiveness cannot be
measured
 Too many
advertisements at a time
may not give prominence
for anyone.
Disadvantages
 It conveys limited
information
 Effectiveness cannot be
measured.
 Outdoor advertisements
can create only visual
effects
 It can only supplement all
other media of
advertising.
 Although outdoor
advertising provides
attention and memory
value, it is doubtful
whether it will provide
action value.
 a. Posters
Advertising posters are a common print promotional technique
used by small businesses. A poster includes a visual design,
images, colors and copy. It provides a message intended to
promote brand awareness or call attention to a company event.
b. Vehicular advertising
The advertisement matter may be print both inside and outside
vehicles such ad van, buses, train and so on.Vehicle advertising or
transit media is an efficient and economical method to advertise
your brands.
c. Advertisement boards
These are kept at certain fixed places where people frequently
assemble like bus stops, railway stations, etc.
d. Electrical display
Many advertisers useadvertisement use advertisement boards
illuminated with color lights these days particularly in big cities
and town. But these are expensive to install and operate.
e. Field sign
These are large boards placed along the railway route and can be
seen from the windows of the train. The field sign is merely used
as reminder and these contain just the brand name.
f. Sky advertising
Aerial advertising is a form of advertising that incorporates the
use of flogs, manned aircraft, or drones to create, transport, or
display, advertising media. The media can be static, such as a
banner, logo, lighted sign or sponsorship branding.
g. Sandwichmen
They are hired person who move in a procession carry placards
and distributing notices in busy places. They also play musical
instruments sometimes to attract the attention of the passersby.

III. Direct advertising

 Direct marketing involves engaging with leads or customers
directly. For example, sending a customer an email that contains a
promotional offer.
Advantages
 The advertisement material can be sent only to the prospective
customers.
 It is economical.
 It is easy to measure the effectiveness of advertisement.
 It can be sent at the appropriate time.
 It also helps to maintain personal relationship with the
customer
IV. Promotional advertising
Promotional advertising is a tool used to attract interest in a
product or service through offering additional incentives for making
a purchase.
a. Window display
A display window, also shop window or store window, is a
window in a shop displaying items for sale or otherwise designed
to attract customers to the store. Usually, the term refers to
larger windows in the front façade of the shop.
b. Interior display
Large concern uses this type of display. Glass-doored cup boards,
sunglass show cases etc. are used for interior or internal display.
Good are displayed inside the shop.
c. Showrooms
A showroom is a large space used to display products for sale,
such as automobiles, furniture, appliances, carpet or apparel. It is
a retail store of a company in which products are on sale in a
space created by their brand or company.
d. Exhibition
Exhibitions are powerful marketplaces. They are an experiential
marketing channel that engages an active and highly motivated
audience in a face-to-face environment. The people who attend
exhibitions choose to be there and want to connect with the
products or services on show.
Advertising budget
An advertising budget is an estimate of a company's promotional
expenditures over a certain time period. More importantly, it is
the money a company is willing to set aside to accomplish its
marketing objectives.
 The market share enjoyed by the firm
 Allocation for advertising can be made as a percentage of
sales made in the past
 The specific objectives of advertising
 The allocation done by a competing firm
 The ratio of advertisement to profit may also help.
Evaluation of advertising
Evaluation of advertising refers to the assessment of the effectiveness of
the advertisement.
1. Pre-testing methods:
Pre-testing, also known as copy testing, is a specialized field of
marketing research that determines an ad's effectiveness based
on consumer responses, feedback, and behavior. Pre-testing is
conducted before implementing the advertisement to customers.
a) Readability test:
Respondents drawn from different economic and
geographical back grounds are tested in finding out the
levels of ease and effectiveness that have been achieved
when reading the advertisement.
b) Eye movement test:
when advertisements are shown to the prospects on a
screen, the movements of their eyes are recorded and
analyzed.
2. Post-testing methods:
a) Inquiry tests:
It is controlled experiment conducted in the field. In inquiry test, the
number of consumer inquiries produced by an advertising copy or
the medium is considered as to the measure of its communication
effectiveness.

Therefore, the number of inquiries is the test of effectiveness which

can be produced only when the ad copy or the medium succeeds in
attracting and retaining reader or viewer attention. To encourage
inquiries, the advertiser offers to send something complimentary to
the reader or the viewer, if he replies.
2) Split-run test:
A split-run test is a technique that makes possible testing of two or
more ads in the same position, publication, issued with a guarantee
of each ad reaching a comparable group of readers. It is an
improvement over the inquiry test in that the ad copy is split into
elements like appeal layout headline and so on. Here also, the
readers are encouraged to reply the inquiries to the keyed or the
given address.

c) Recognition tests:
Recognition is a matter of identifying something as having seen or
heard before. It is based on the memory of the respondent. It
attempts to measure the ad effectiveness by determining the
number of respondents who have read or seen the ads before. To
arrive at the results, readership or listenership surveys are
conducted.

d) Recall tests:
Recalling is more demanding than recognizing as a test of memory.
It involves respondents to answer as to what they have read, seen
or heard without allowing them to look at or listen to the ad while
they are answering.
There are several variations of this test. One such test is Triple
Association Test which is designed to test copy themes or the
slogans and reveals the extent to which they have remembered.

e) Sales tests:
Sales tests represent controlled experiment under which actual field
conditions than the simulated are faced. It attempts to establish a
direct relationship between one or more variables and sales of a
product or service. It facilitates testing of one ad against another
and one medium against another.
Evaluation of advertising
Evaluation of advertising refers to the assessment of the effectiveness of
the advertisement.
2. Pre-testing methods:
Pre-testing, also known as copy testing, is a specialized field of
marketing research that determines an ad's effectiveness based
on consumer responses, feedback, and behavior. Pre-testing is
conducted before implementing the advertisement to customers.
c) Readability test:
Respondents drawn from different economic and
geographical back grounds are tested in finding out the
levels of ease and effectiveness that have been achieved
when reading the advertisement.
d) Eye movement test:
when advertisements are shown to the prospects on a
screen, the movements of their eyes are recorded and
analyzed.
2. Post-testing methods:
a) Inquiry tests:
It is controlled experiment conducted in the field. In inquiry test, the
number of consumer inquiries produced by an advertising copy or
the medium is considered as to the measure of its communication
effectiveness.

Therefore, the number of inquiries is the test of effectiveness which

can be produced only when the ad copy or the medium succeeds in
attracting and retaining reader or viewer attention. To encourage
inquiries, the advertiser offers to send something complimentary to
the reader or the viewer, if he replies.
2) Split-run test:
A split-run test is a technique that makes possible testing of two or
more ads in the same position, publication, issued with a guarantee
of each ad reaching a comparable group of readers. It is an
improvement over the inquiry test in that the ad copy is split into
elements like appeal layout headline and so on. Here also, the
readers are encouraged to reply the inquiries to the keyed or the
given address.

c) Recognition tests:
Recognition is a matter of identifying something as having seen or
heard before. It is based on the memory of the respondent. It
attempts to measure the ad effectiveness by determining the
number of respondents who have read or seen the ads before. To
arrive at the results, readership or listenership surveys are
conducted.

d) Recall tests:
Recalling is more demanding than recognizing as a test of memory.
It involves respondents to answer as to what they have read, seen
or heard without allowing them to look at or listen to the ad while
they are answering.
There are several variations of this test. One such test is Triple
Association Test which is designed to test copy themes or the
slogans and reveals the extent to which they have remembered.

f) Sales tests:
Sales tests represent controlled experiment under which actual field
conditions than the simulated are faced. It attempts to establish a
direct relationship between one or more variables and sales of a
product or service. It facilitates testing of one ad against another
and one medium against another.

To sum-up, ad effectiveness testing is a must to avoid costly

mistakes, to select the best alternative from the apparently equal
alternatives, to resolve the differences of opinion and to add to the
store of knowledge having deep bearing on advertising
 effectiveness and efficiency. Ad effectiveness testing can be at three
levels namely, prior to, during and after the release of an ad.

There are many methods to choose. The final results depend on the
validity, reliability and the relevance of each method employed.
Testing, if done in good faith, can payout its costs and rich
dividends too.
Advertising agency
A firm engaged in providing services of advertisement for clients to create
awareness and market for them is known as advertising agency.
These agencies involve people with specialized skills and knowledge who
are well versed in marketing, advertising and consumer behavior.
Merits of advertising agency
 It promotes sales.
 Make advertising more attractive
 Effective utilization of the fund provided for advertising.
 The work becomes quick and satisfactory.
 Benefit of economies of large scale goes to the advertiser.
Sales promotion
Sales promotion is the process of persuading a potential customer to buy
the product. Sales promotion is designed to be used as a short-term tactic
to boost sales – it is rarely suitable as a method of building long-term
customer loyalty. Some sales promotions are aimed at consumers.
Examples: - flash sales-buy one, get one, coupons or discounts.
Definition
Objectives of sales promotion
 To attract new customers
 To create brand image
 To meet the competition of another firm
 To effect off season sales to boost sales
 To capture the major market share
 To create favorable attitude towards the product.
Advantages of sales promotion
  Creates differentiation
 Creates greater revenue
 Helps create awareness of new products
 Creates a source of information
 Used to Support Other Promotions
Limitation of sales promotion
 Short-term orientation
 They are non-recurring in nature

Kinds of sales promotion
1. Rebate:
It refers to a product being sold at special prices, less than the
original price for a limited & very short period of time. The main
aim is to clear off excess inventory.
For example, offer of LG to sell 28″ colored television at a discount
of Rs 5000/- for a limited period.
2. Discount:
Certain percentage of price is reduced as discount from the list price.
For example, at the end of the season, brands like Allen Solly, TNG,
Peter England etc. offer their product at discount to clear off the
stock.
3. Refunds:
This refers to refunding a part of price paid by customer on some
proof of purchase.
For example, Rs. 3 on return of empty bottle of Pepsi.
4. Product Combination:
It involves offering another product as gift on purchase of a product.
For example, a tooth brush free with a 200gm of Colgate toothpaste
or 100 gm Parle biscuit free with purchase of 1kg of Kissan Tomato
Sauce etc.
5. Quantity Gift:
It refers to offering extra quantity of the same product.
For example, 1 soap free on purchase of 3 soaps or Tata Tea offer of
40% extra quantity etc.
6. Instant Draws and Assigned Gifts:
 Under this scheme, some gifts are given on the basis of draws or
some events.
7. Lucky Draw:
Under this scheme, some coupons bearing distinct numbers are
issued on the purchase of some products. At the end of a day, week
or month, draws are taken and the winner is awarded some gifts.
For example, gift of computer to the lucky winner declared on the
basis of draw taken out from tickets of visitors to India International
Trade Fair.
8. Usable Benefits:
For example, a holiday package of Rs 5,000 free with purchase of
goods worth Rs 5,000.
9. Full Finance @ 0%:
In case of consumer durable goods like electronic goods or
automobiles, the seller offers easy financing scheme at 0% interest.
For example, payment of Rs 45,000 for a bike can be done as Rs
15,000 immediately and balance in 15 installments of Rs 2,000 each.
10. Samples:
Free samples of product are distributed among the customers. The
main aim is to persuade the customers to try it.
For example, when Godrej company introduced ‘Ezee’ it distributed
its samples as it wanted the people to try them.
11. Contests:
It refers to the competitive events organized by the companies for
promoting their products. For example, Bourn-vita Quiz Contest etc.
Difference between advertising and sales promotion
Advertising Sales promotion
 Advertising is a  Sales promotions have a
permanent strategy that limited time frame
involves marketing and
sales
 Impersonal approach  Both personal and
impersonal and personal
approach.
 Policies are long term  Policies are short term
  Slow response  Response is immediate.
 It is economical  It is costly

Personal selling
personal selling is also known as face-to-face selling in which one person
who is the salesman tries to convince the customer in buying a product. It
is a promotional method by which the salesperson uses his or her skills
and abilities in an attempt to make a sale.
Definition
In the word of Professor William J. Stanton, “Personal selling consists in
individual; personal communication, in contrast to mass relatively
impersonal communication of advertising; sales promotion and other
promotional tools”
Features of personal selling
 It is a face to face communication between buyer and seller.
 It is a two-way communication.
 It is an oral communication.
 It persuades the customers instead of pressurizing him.
 It provides immediate feedback.
 It develops a deep personal relationship apart from the selling
relationship with the buyers and customers.
Objectives of personal selling
(i) Attracting the Prospective Customers:
The first and foremost objective of a salesperson is to attract the attention
of people who might be interested to buy the product he is selling.
(ii) Educating the Prospective Customers:
The salesman provides information about the features, price and uses of
the product to the people. He handles their queries and removes their
doubts about the product. He educates them as to how their needs could be
satisfied by using the product.
(iii) Creating Desire to Buy:
The salesman creates a desire among the prospective customers to buy the
product to satisfy specific needs.
(iv) Concluding Sales:
The ultimate objective of personal selling is to win the confidence of
customers and make them buy the product. Creation of customers is the
index of effectiveness of any salesperson.
(v) Getting Repeat Orders:
A good salesperson aims to create permanent customers by helping them
satisfy their needs and providing them product support services, if
required. He tries for repeat orders from the customers.
Salesmanship
Salesmanship is an elaborative process of meeting a potential buyer,
convincing him about the company’s product and persuading him to buy
it. It is a creative job
Definition:
According to W.G Carter, “Salesmanship is in attempt to induce people to
buy goods.”
Duties of salesman
 The principal duty is to make sales of products or services.
 All complainants must be satisfied peacefully.
 He has to attend sales meetings.
 He must maintain a good relation with the customers.
 He must assist the customers to make good selection
 He must develop a goodwill for the firm and the products.
 He must have cooperative habits.
 He has to do the assigned duty
 He has to make collection of bills relating to sale.
 He has to make report-Sales made, Calls made, Services rendered,
customers lost, competition and any other matters, relating to firm.
Qualities of a successful sales man
 Establishing good relationship with a variety of people.
 Learning quickly and adapting smoothly.
 Planning ahead and efficiently managing his time and efforts.
 Working hard to achieve his goals, dedicating himself to provide
long-term service, rather than having a get-rich-quick attitude.
 Communicating clearly both in speech and in writing.
  Thinking analytically and learning to break problems down to their
basic components.
 Producing constantly both in quality and quantity rather than
performing erratically.
 Persisting steadily his goal and not giving up easily.
 Possessing and living up to high moral characteristics that enable
people to admire, respect and trust him.
Kinds of salesmanship
1. Creative salesmanship
Creative salesmanship is required to create a new market for old
products or a market for a new product. Creative selling requires
the buyers to be informed as well as persuaded. Such an approach
is required under the following situation.
a. To sell intangible like banking and insurance.
b. To sell a new models of television refrigerators etc.,
c. To sell a product that required technical knowledge like
computers, photo copying machines.
2. Competitive salesmanship
Competitive salesmanship is required to overcome competitive
pressures. The market for almost all consumer product is a highly
competitive one.
Kind of salesman
1) Manufacturer’s Sale
He is appointed by the manufacture to supplement the effort of the
wholesalers and retailers
a. Pioneer Salesman:
He is primarily concerned with the sale of the new product.
He is very competent and creative in his job.
b. Dealer Serving Salesman:
He supplies goods of his manufacturer to various dealers. He
also imparts training to the salesmen of the dealers.
c. Specialty Salesman:
 He sells the manufacturer’s products directly to the
consumers. He usually undertakes costly items like washing
machines, televisions and calculators etc. He tells the
consumers about the use of the product by giving practical
demonstration. He should be expert and well trained in his
job.
2) Wholesaler’s Salesman: -
He is appointed by the wholesaler and deals with the retailers. He
informs the retailers about the availability of various products
with the wholesaler and helps them in selecting the articles.
3) Retailer’s Salesman:
He is appointed by the retailer and deals directly with the
consumers. He also distributes free samples of the goods to the
consumers and also gives them practical demonstration of the
products.Retailers generally employ two types of salesman,
(1) The “indoor” or retail store salesman who works inside the
store,
(2) The “outdoor” or “travelling” salesman
4) The Industrial Salesman
He usually sells to small number of buyers who purchase in large
quantity goods of high value.
5) Trade salesman
They usually perform the order taking function. They direct their
effort towards helping customers promote the product, especially
within retail stores.
6) Detail salesman
The medical representatives fall under this category. They do not
deal with the customers directly.
7) Service salesman
He is a salesman selling intangibles, e.g., insurance agents, small
saving agents
8) Staple salesman
 He sells goods that are already desired buy the buyers.no special
selling efforts are required to sell such gods,
Examples: -food items, readymade-clothes, etc.
9) Exporter’s salesmen
He helps to find overseas buyers for a company’s product.
10) Technical salesman
Technical service is generally required in case of the sale of technical
products. It is often the salesman’s job to communicate technical
innovation.