NAME - RAJAN KUMAR

ROLL NU. - 2214501673

PROGRAMME - BBA
SEMESTER - 3
COURSE NAME- ADVERTISING AND SALES
CODE - DBB2105
Ques.1 Discuss the concept of Advertising along with its five basic components. Throw
some light on the history of the Advertising.
Ans. Advertising is a form of communication used to persuade an audience (viewers, readers or
listeners) to take some action with respect to products, ideas or services. Most commonly, the
desired result is to drive consumer behavior with respect to a commercial offering, although
political and ideological advertising is also common. Advertising messages are usually paid for
by sponsors and viewed via various media; including traditional media such as newspapers,
magazines, television, radio, outdoor or direct mail or new media such as websites and text
messages.
"Advertising is the non-personal communication of information usually paid for, and usually
persuasive in nature about products, services or ideas by identified sponsors through the various
media to reach broad audiences”.
According to this definition, advertising has five basic components:
i) Paid form of communication: Advertising is a paid form of communication, although
some forms of advertising such as Public Service Announcements (PSAs), use donated
space and time.
ii) Identified Sponsor: Not only is the message paid for, but the sponsor is also identified.
Influence over consumer: Most advertising tries to persuade or influence the consumer to
do something, although in some cases the point of the message is simply to inform
consumers and
iii) Reach: Advertising reaches a large audience of potential consumers.
iv) Media: The message is conveyed through many different kinds of mass media, which
are largely non-personal. What that means is that advertising isn’t directed to a specific
person, although this is changing with the introduction of the Internet and more
interactive media.
Que.2 Write a detailed note on Hierarchy-of-Effects Model of advertising in detail.
Ans. In developing an advertisement for an advertising campaign, several theoretical
frameworks are useful. The first theory is the hierarchy of effects model. The second is a means
to an end chain. Both-the hierarchy of effects model, and a means to an end chain can be used to
develop leverage points. Hierarchy-of-Effects Model Among advertising theories, the hierarchy-
of-effects model is predominant. It helps clarify the objectives of an advertising campaign as
well as the objective of a particular advertisement. It also aids the marketing team in identifying
the best communications strategy.
The model suggests that a consumer or a business buyer moves through a series of six steps
when becoming convinced to make a purchase. These six steps are as follows:
Awareness – If most of the target audience is unaware of the object, the communicator’s task is
to build awareness, perhaps just name and recognition with simple messages repeating the
product name. Consumers must become aware of the brand.
Knowledge – The target audience might have product awareness but may not know much more;
hence this stage involves creating brand knowledge. This is where comprehension of the brand
name and what it stands for become important. What are the brand’s specific appeals, its
benefits? In what way is it different from competitor’s brands? Who is the target market? These
are the types of questions that must be answered if consumers need to have brand knowledge.
Liking – If target members know the product, how do they feel about it? If the audience looks
unfavorably towards the product, then the communicator has to find out why. If the unfavorable
view is based on real problems, communication campaigns alone cannot do the job of erasing it.
For product problem, it is necessary to first fix the problem and only then can you communicate
its renewed quality.
Preference – The target audience might like the product but not prefer it to others. In this case,
the communicator must try to build consumer preference by promoting quality, value,
performance and other features. The communicator can check the campaign’s success by
measuring audience preference before and after the campaign.
Conviction – A target audience might prefer a particular product but not develop the confidence
about buying it. The communicator’s job is to build conviction among the target audience.
Purchase – Finally, some members of the target audience might have conviction but not quite
get around to making the purchase. They may wait for more information or plan to act later. The
communicator must need these consumers to take the final step, perhaps by offering the product
at a low price, offering a premium or letting consumers try out. This is where consumers make a
move to actually search out information or purchase.
Ques.3 Discuss the Print Advertising. Also, to explain the Characteristics of the Press, include
suitable examples to support your answer.
Ans. Print advertising includes printed advertisement in newspaper, magazines, brochures and
on other printed surfaces, such as posters and outdoor boards. Readers find that reading
publication is more flexible than watching or listening to broadcast because they can stop and
re-read, read sections out of order or move through the publication at their own speed. As the
print message format is less fleeting than broadcast and more concrete, people tend to spend
more time with print and absorb its message more thoroughly. Print provides more detailed
information, rich imagery and a longer message life. That is why advertisers trying to reach a
teenaged audience with an advertisement.
The power and dominance of the press is explained by the following special characteristics:
In depth coverage and permanence Both radio and television are short-lived and usually brief,
but newspaper and magazines can provide detailed reports that can be read, re-read and retained,
if required. This is true even though the life of a city newspaper may be only a few hours but
many publications survive for some time. Items can be cut out and kept for posterity as well.
Magazines have a large pass–on readership and are read almost everywhere. Variety of subjects
covered Newspapers represent class–political, religious, ethnic and language groups. Magazines
represent every sort of special interest. This is perhaps where the press best demonstrates its
strength because by selecting the right journals, it is possible to reach particular and well defined
sections of the reading public. This cannot be done with mass media like radio and TV. Mobility
Newspapers and magazines can be carried and read almost anywhere. For example, in the house,
while traveling, at the place of work, in a waiting room or a library.
Statistics available In industrialized countries and increasingly in others, net sales are audited,
and readerships are researched so that a wealth of statistical information about a large number of
newspapers and magazines exists. The media planner can confront the media salesperson with
computer calculations to justify the media schedule of recommended space and airtime
bookings. Improved printing The majority of newspapers and magazines are printed offset–litho.
Today, picture quality, even in black and white is very good since the dot screen used in offset–
litho is usually nearly twice as fine as that formerly used for letterpress printing. Magazines
printed in the offset litho are usually better printed than those produced by photogravure,
halftones being produced more sharply and the paper having a better finish.
SET-2
Ques.4 Explain Sales Management Strategies in detail, include the suitable examples to support
your answer.
Ans. According to American Marketing Association (AMA), Sales Management includes
“Planning, direction and control of personal selling, including recruiting, selecting, equipping,
assigning, routing, supervising, paying and motivating as these tasks apply to the sales force”. It
can most easily be defined as planning, implementing, and controlling personal contact
programs designed to achieve sales and profit objectives of the firm. In addition to management
of personal selling, Sales Management means management of all the functions which include
advertising, sales promotion, market research, pricing and physical diatribution.
A sales strategy consists of a plan that positions a company's brand or product to gain a
competitive advantage. Successful strategies help the sales force to focus on target market
customers and communicate with them in relevant, meaningful ways. Sales representatives need
to know how their products or services can fill customer needs and expectations. A successful
sales strategy conveys this so that the sales force spends time targeting right customers at right
point of time. As such, planning and creating an effective sales strategy requires looking at long-
term sales goals and analyzing business sales cycle, as well as meeting with salespeople
regarding their personal career goals. Going through these exercises help business owners and
managers gain a more intimate knowledge of the sales intervals, seasonal changes and what
motivates the sales team. After creating a long-term sales strategy based on long-term goals,
sales managers should create monthly and weekly strategies based on the long- term strategy.
We will now have a look at different types of strategies employed by a sales organization in
general. 1. Direct Strategy With a direct sales strategy, salespeople attack their competitors when
talking to a customer. They talk about each feature of the competitor’s product and compare it to
theirs. The term ‘Negative Selling’ refers to a direct sales approach where sales take place based
on a downbeat of the opponent players. 2. Indirect Strategy Indirect sales approaches apply more
subtle techniques by demonstrating features and benefits not available with the competitor’s
products or services, without ever mentioning them by name. This more sophisticated, positive
sales strategy requires research and analysis of the competition. 3. Relationship Strategy This
strategy insists upon establishing and maintaining a partnership-type of relationship with the
customers where mutual support, trust and goals are nurtured over time. Here, customer is
treated as a partner. 4. Double-Win Strategy It is simply a win-win situation and both the
customer and salesperson come out of the sale deal with a sense of satisfaction. Neither seems to
take advantage of the other and both benefit personally and professionally from the deal. 5.
Integrated Strategy Integrated sales strategy is nothing but consolidation of selling and
distribution strategies. 6. Client Centered Strategy It focuses entirely on selling process and
efforts on the client’s needs, problems and successes. The strategy demands full knowledge of
the client as an individual and as a member of the professional network involving everyone who
may interact with him/her in his/her work. It also demands an understanding of the client’s
personal outlook, attitude, views, opinions, reactions to current situations, etc. 7. Hard Sales Vs
Soft Sales Strategy The main purpose of a sales team is not just to make sales, but to identify
potential customers and create new customers, which are important aspects of a sales strategy. In
the process of identification, the salesperson may use two strategies as depicted below:
Que.5 Discuss the concepts of Personal Selling. Detail the objectives of Personal Selling.
Ans. Personal selling can be defined as an oral communication with the potential buyers of a
product with the intention of making a sale. It may focus initially on developing a relationship
with a prospect, but ultimately ends with an attempt to close the sale. Personal selling is one of
the most important methods to contact the prospective buyer personally and to persuade him or
her to buy the products. It involves the use of a sales force to support a push strategy
(encouraging intermediaries to buy the product) or a pull strategy (where role of the sales force
may be limited to supporting retailers and providing after-sales service). The objective is not
only to sell the product to a buyer, but to make the buyer a permanent customer. This can be
achieved by putting things to the prospective buyer in such a way that the buyer is convinced
that the products being presented for sale can well satisfy all needs. This art and skill of
convincingly presenting goods/services and persuading customer to buy the products/services is
called personal selling. For example, a company wants to sell a washing machine. It sends its
salesperson to a homemaker. The salesman talks to the homemaker and explains how important
it is for her to own a washing machine. Then, the salesperson tells her about the product
explaining how it functions and how it is better than other brands. He also provides information
on the price and guarantee period. The salesperson applies every skill in persuading her to buy,
and then closes the deal. This is personal selling. Think about the people who come to you to sell
goods and commodities. What do they do? They show certain variety of goods to you, try to
explain features of the products, and if required, demonstrate functioning of the items, inform
you about the price and concession available, persuade you to buy the product and also in some
cases promise you to bring certain items of your choice in future. So, not only do they inform
and explain to you about the product, but also persuade you to buy those items and make you
want to buy from them in future too. On the other hand, you also gather more information about
the product, see and handle it personally to judge it better. The person who sells goods to you in
this way is called a ‘Salesperson’ and the technique of selling is known as ‘personal selling’.
Thus, personal selling refers to a presentation of goods to the potential buyers and persuading
them to purchase it. It involves face-to-face interaction and physical verification of the goods to
be purchased. You may also find personal selling in some shops where salesmen are employed
by the shopkeeper to use this technique. For example, you will come across such salesmen in
jewelry stores, consumer goods stores, saree houses, etc. Personal selling is simply a process of
convincing or persuading prospective customers to purchase the final product which is ready for
sale.
Personal selling is one of the expensive parts of promotional mix in sales tool. A firm may
decide to adopt personal selling strategy when the market is relatively small or when it wants to
gather market information including customer’s reactions, competitor’s activities, etc. or when a
firm is seeking out new prospect or customer or market publicity. Thus, personal selling is used
to meet five objectives of promotion in the following ways:
i) Building product awareness A common task of salespeople, especially when selling in
business markets, is to educate customers on new product offerings. In fact, salespeople
serve a major role at industry trade shows where they discuss products with show
attendees. Thus, building awareness using personal selling is very significant in
marketing of products and services.
ii) ii) Creating interest Personal selling involving person-to-person communication makes
it a natural method for getting customers to experience a product for the first time. In
fact, creating interest goes hand-in-hand with building product awareness as sales
professionals can often accomplish both objectives during the first encounter with a
potential customer.
iii) Providing information When salespeople engage with customers, a large part of the
conversation focuses on product information. Marketing organizations provide their
sales staff with large amount of sales support including brochures, research reports,
computer programs and many other forms of informational material that help the
customers in their purchasing decisions.
iv) Stimulating demand By far, the most important objective of personal selling is to
convince customers to make a purchase. This is possible only when demand is
stimulated and created with various selling tactics.
v) Reinforcing brand Most personal selling is intended to build long-term relationship with
customers. A strong relationship requires regular communication with a customer and
can only be built over time. Meeting with customers on a regular basis allows
salespeople to repeatedly discuss their company’s products and by doing so, helps
strengthen customers’ knowledge of what the company has to offer.
Ques.6 Write a detailed note on types of Sales Organization Structures, include suitable
examples to support your answer.
Ans. If sound practices are followed in setting up the sales department, the resulting structure
takes on features of one or more of four basic types: line, line & staff, functional and committee.
The grouping of activities into positions and the charting of relationships of positions causes the
organization to take on structural form. The first two types (line and line & staff) are the most
common. Functional and committee organizations are rare. Most sales departments have hybrid
organizational structures with variations to adjust for personalities and to fit specific operating
conditions. Following are the four basic types of sales organization structures: 1. Line sales
organization 2. Line and staff sales organization 3. Functional sales organization 4. Committee
sales organization 1. Line sales organization: The line sales organization is the oldest and
simplest sales organizational structure. It is widely used in smaller firms. For instance, smaller
companies that cover a limited geographic area or sell a narrow product line, use this structure.
The chain of command runs from the top sales executives down through subordinates. All
executives exercise line authority and each subordinate is responsible only to one person on the
next higher level. Responsibility is definitely fixed and those charged with it also make
decisions and take action. Lines of authority run vertically through the structure. And, all
persons on any one organizational level area are independent of that level. The line sales
organization sees its greatest use in companies where all sales personnel report directly to the
chief sales executive. In these companies, this executive often is preoccupied with active
supervision and seldom has much time to devote to planning or to work with other top
executives. Occasionally, however, the line sales organization is used where more than two
levels of authority are present. Theoretically, there is no cross communication between persons
on the same level. Contacts between persons on the same level are indirect and are affected
through the next higher level. The basic simplicity of line organization is the main reason for its
use. Because each department member reports to only one superior, problems of discipline and
control are small. Lines of authority and responsibility are clear and logical, and it is difficult
for individuals to shift or evade responsibilities. Definite placement of authority and
responsibility save time in making policy changes, in deciding new plans and in converting
plans into action. The simplicity makes it easy for executives to develop close relations with
salespersons. The greatest weakness of the line sales organization is that much depends upon
the department head. The head needs outstanding ability and rare qualifications and should be
well versed in all phases of sales management. This helps when there are no subordinates with
specialized skills and knowledge. Thus, there is often over dependency on the department head.
For rapidly growing concerns and for those with large sales staffs, the line organizational
structure is inappropriate.