Basics of Advertising

What is Marketing
• Marketing refers to the activities of a business related to buying
and selling a product or service
• The marketing mix has been defined as the "set of marketing
tools that the firm uses to pursue its marketing objectives in the
target market
• product, price, place, and promotion.
Marketing Mix
• A product is any good or service that fulfills consumer needs or
desires. It can also be defined as a bundle of utilities that comes
with physical aspects such as design, volume, brand name, etc
• The price of a product directly influences sales volume and,
consequently, business profits. Demand, cost, pricing trends
among competitors, and government regulations are crucial
factors that determine pricing
• involves making decisions in terms of the basic price, discounts,
price alteration, credit terms, freight payments, etc. It is also
important to analyze when and if techniques like discounting are
required or appropriate.
• The primary aim of promotion is to spread awareness about
the product and services offered by a company. It helps in
persuading consumers to choose a particular product over
others in the market.
• decisions related to advertising, salesforce, direct marketing,
public relations, advertising budgets, etc.
• Placement involves choosing the place where products are
to be made available for sale. The primary motive of
managing trade channels is to ensure that the product is
readily available to the customer at the right time and place.
Promotion Mix
• Advertising
• PR
• Sales Promotion
• Personal Selling
• Publicity
Advertising and Product

- PLANNING: highlights superiority over competitor’s products, informs

about new uses
- POSITIONING: position it in the minds of consumers , eg Airtel TV, Big
Bazaar
- PACKAGING: affects designing of ads, eg purple colour in Cadbury’s
ads ; packaging used for recognition- eg Maggie
Advertising and Place
• Physical distribution for availability of product
• Advertising may increase demand > retailers and distributors keeping
stock in advance
• Informs about the availability > customers reach out for it
• Ex- Shoppers’ Stop 50% off
PROMOTION MIX (Advertising and
Promotion)
• Advertising, paid form of non-personal presentation and promotion of
goods, services and ideas by an identified sponsor
• Publicity: source unknown , no payment, no control over content
• Personal Selling: reach to a limited no of people, personal in nature,
direct and immediate feedback
• Sales Promotion: to increase immediate sales, focus on customer
buying and dealer effectiveness- free sample, coupon, contest,
exhibitions etc
• Public relations: focused on image building via communication with
internal and external public, may or may not be paid (kind)
Advertising and Price
• Right pricing important- Low pricing gives loss, high pricing may not
stand competition
• Highlights price, price-quality relationship, economical or premium
nature , ensures right pricing by retailers
• Ex- paanch matlab chota Coke (rural positioning)