UNIT I

INTRODUCTION TO ADVERTISEMENT:

Advertising is a paid of non-personal communication. Advertising promotes ideas, goods and services of identified sponsors. The main purpose of advertising is to create sales. If advertisement doesn’t increase sales, we may conclude that advertisement is not effective. It may be called salesmanship on print.

The five important message form the above definition are as follows:

i. Advertising is a paid form of communication- It is paid, because the advertiser has purchased time and space.

ii. It is non-personal in nature, because it is not directed towards an individual i.e., no face-to-face presentation.

iii. Purpose of advertising is to promote ideas about products and services.iv. Advertising is done to create interest in goods and services.v. Advertising is issued by an identified sponsor-advertising is done by the source.

Brief History

The record book tells that history of advertising is about 5,000 years old. There were three forms of advertisements before the print advertisement:

Trade Mark Town Criers Signs

Trade markArtisan and craftsman placed their mark on the goods to get identified with respect to the skill they possess. Even today we can see this practice.

Town CriersThe town criers are paid to go around streets of the town and make announcement. This practice is followed even today in some parts of rural India.

SignsIn this methods, the product name is displayed on a rock by painting. People who pass by notice it. This type of outdoor advertising is common even today. See this while traveling on a highway.

Hand bill was the first printed from of advertisement across the U.K. The first advertisement in U.S.A was printed in Boston news letter.

Today, there are professional bodies at home which represent the advertiser, the agency and the media. They are:

1. Indian Society of Advertisers – ISA2. Indian Newspapers Society – INS3. Advertising Agencies Association of India AAAI

Some of the important personalities to be remembered, who laid the foundation for modern advertisement are – David Ogilvy, J Walter Thompson.

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CONCEPT, DEFINITION AND OBJECTIVES

Definition of Advertising. (Or) Discus about the term advertising.

Advertising is the paid, non-personal communication of information about products or ideas by an identified sponsor through the mass media in an effort to persuade of influence behavior.Analysis:

Advertising is non-personal because it’s directed to groups of people rather than to specific individuals.

Advertising communicates information about products or ideas with a main intention to either inform or persuade people to buy a particular product.

More importantly an identified sponsor such as a company selling a product or a non profit group seeking donations communication pays for the advertisement message to be placed in the mass media.

Advertising can be defined as any paid form of non-personal promotion transmitted through a mass medium. The sponsor should be clearly identified and the advertisement may relate to an organization, a product or a service. The key difference, therefore, between advertising and other forms of promotion is that it is impersonal and communicates with large numbers of people through paid media channels.

Discus the various types of advertising (or) Explain the various classification of advertising.

Severl categories of organizations are large users of advertising, most important among them being the manufacturing, trading and service firms, non-profit institutions and government agencies. It is conceptually more interesting and analytically more important to classify advertising.

By target Audience:

One way to classify advertising is according to the group it targets. Whether it’s in print, on television, or on billboards, every advertisement is aimed at a specific group of people, known as target audience. Advertisements are generally addressed to one of the two broad audience categories: consumers or businesses.Consumer advertising: Much of the advertising around us is aimed at consumers, the individuals and families who buy goods and services for personal or family use known as consumer advertising. For example, pepsi and coke persuade consumers to consume their bottled drinks.Business advertising: In contrast to the messages aimed at people who buy goods for household use, business advertising directs messages toward people and/or organizations that buy or use products in businesses. This broad category can further be classified into four distinct sub-categories-

a) Industrial advertising – It targets people who buy or use the materials and services needed to conduct business or to manufacture other products. For example Epson advertises business houses to buy their printer cum fax machine that would facilitate their business communication.

b) Trade advertising-targets intermediaries such as wholesalers and retailers that buy goods for resale to consumers.

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By target audienceConsumerBusiness

IndustrialTradeProfessionalAgricultural

By geographic areaInternationalNationalRegionallocal

By media usedPrintElectronicOut-of-homeDirect mailDirectoriesOther media

By purposeProduct or non-product Commercial or non-commercialPrimary or selective demandDirect action or indirect action.

c) Professional advertising-is directed toward licensed professional practitioners such as lawyers, accountants, doctors, and engineers. This category of advertising may be used to persuade professionals to buy a particular product useful in their work or to recommend that product to their patients or clients. For example Tally advertises its software to all accountants and businessmen to use its multi utility software in preparation and maintenance of accounts.

d) Agricultural advertising- is used to sell products such as tractors and insecticides.

By Geographic areaA second way to classify advertising is its geographical coverage

a) International advertising-when an organisation crosses national borders to advertise in more than one country. For example Pepsi-Cola uses international advertising in dozens of countries.

b) National advertising- when an organisation advertises in more than one region of a single country. For example Bajaj, Hero Honda are all considered national advertisers since they use television, national magazine, and other media to reach large numbers of people in multiple markets across the country.

c) Regional advertising- advertising in a specific region without covering the entire country. For example Aircel uses regional advertising when it targets people of Tamilnadu to use its cellphone.

d) Local advertising-is a much narrower, concentrating on a more confined area such as a city. For example AVR and ANS uses cable network to influence people to shop artistic designs in gold jewelry.

By MediaA third way to classify advertising is according to the medium or media used. Popular forms of media advertising include newspaper, magazine, radio, television, outdoor (posters, billboards), and transit (on or inside buses). Because of its ability to reach huge audiences across large geographic regions, television and radio are the most powerful advertising media and do often national advertisers use the primary medium. Many organisations also advertise through direct mail or in the yellow pages and other directories; the list of media options grows longer as newer medias such as FM radio, Internet become commonplace.By purposeA fourth way to classify advertising is by purpose. Each advertiser has its own goals, but the purpose behind each message can be classified according to four dimensions: Product versus institutional advertising

Commercial versus non-commercial advertising

Primary demand versus selective demand advertising

Direct action versus indirect action advertising

a) Product versus institutional advertisingAdvertising normally conforms to one of two basic types: product oriented or institutional. A product-orientated advertising focuses, as the term suggests, on the product or service being offered, whether for profit or not. Its prime task is to support the product in achieving its marketing goals.Product-orientated advertising can itself take one of three alternative forms, pioneering, competitive, or reminder and reinforcement advertising.

Pioneering advertising

Pioneering advertising is used in the early stages of the life-cycle when it is necessary to explain just what the product will do and the benefits it can offer. The more innovative, technically complex and expensive the product is, the more essential this explanation becomes. Depending on the product's newness, the prime emphasis might well be on stimulating basic generic demand rather than attempting to beat competition.

Competitive advertising

Competitive advertising is concerned with emphasizing the special features of the product or brand as a means of outselling the competition. Usually the seller seeks to communicate the

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unique benefits, real or imaginary, that distinguishes the product and gives it its competitive edge. Given that most markets are mature and often crowded, this type of advertising is veryCommon and very important.

Comparative advertising

A form of competitive advertising that has grown in significance in recent years is comparative advertising. This means making a direct comparison between one product and another, showing the advertiser’s product in a much more favorable light, of course, alternatively, the comparison may be more subtle, referring to other leading brands, and leaving it up to the target audience to decide which rival product is intended. Initially, it was thought unwise to use a direct comparison approach as it gave a free mention to competitors and was likely to bring about a “ knocking copy” reaction. However, advertisers have now realized that in a competitive world even if they do make a comparison with the market leader, which already has high awareness levels, the effect need not be negative.Through careful selection of the benefits and judgment and criteria to be emphasized, a comparative advertisement might encourage a perception of relative superiority.

Reminder and reinforcement advertising

Reminder and reinforcement advertising tends to operate after purchase. It reminds customers that the product still exists and that it has certain positive properties and benefits. This increases the chances of repurchase and sometimes might even persuade consumers to buy larger quantities. The main emphasis is not on creating new knowledge or behavior but on reinforcing previous purchasing behaviour, and reassuring consumers that they made the right choice in the first place.Institutional advertising In contrast, institutional advertising is not product specific. It aims to build a sound reputation and image for the whole organization to achieve a wide range of objectives with different target audiences. These could include the community, financial stakeholders, government and customers to name but a few.

Commercial versus non-commercial advertisingMuch of the advertising around us is commercial advertising, placed by a business that expects to make a profit. In contrast, non-profit and political organizations use non-commercial advertising to promote causes or candidates rather than profit-making products.Primary demand versus selective demand advertisingThe purpose of primary demand advertising is to stimulate demand for a particular product category, not for any one brand. Associations that represent many manufacturers or service firms generally place this type of advertising. For example Tourism Development Corporation of India encourages people to visit India. Once primary demand advertising has paved the way, individual promoters/ producers to build demand for their own brands use selective demand advertising. For example Taj group of Hotels persuades people to board in their suites while visiting India.Direct action versus indirect action advertisingWhen advertising is geared toward getting the audience to respond immediately, it’s called direct-action advertising. Messages that include a toll-free number, a coupon, or a limited-time offer are forms of direct-action advertising. The advertiser can quickly see whether the advertisement is working by counting the responses. On the other hand, when advertising is used simply to build the awareness of a product, boost product’s image, explain product benefits, or show where the product may be purchased, it’s indirect action advertising.

What are the Objectives of advertising?

A successful ad is more than just a "pretty picture." It must be developed to meet very specific goals, and it must spring from a sound understanding of the dynamics of the market.Every ad and every advertising campaign should have clearly defined objectives. These should grow out of the company’s overall marketing strategy and the jobs assigned to advertising. It isn't enough for management to say, "Promote the product." Management must decide in general terms what they want their

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advertising to do, and then specify what each ad should accomplish. Detailed objectives are necessary to focus the power of advertising on meeting the company’s overall goals. Advertising should have one or more of the following specific objectives: To Aid in the introduction of new products to specific target markets. To help obtain desirable representatives and distributors. To Prepare the way for salespeople by putting the company's name and the merits of its products in front

of the prospects on a regular basis. To Provide ongoing contact and re-assurance for customers, even when a salesperson isn't available. To generate an immediate buying action. To generate an immediate inquiry which starts the purchasing process (for more complex products). To help buyers confirm their purchasing decisions, reinforcing the idea that they made the right choice.

Discus the role of advertising (or) explain the benefits of advertising.

The role of advertising in the modern business world cannot be undermined since it adds value to various participants in the market. The role of advertising can be analyzed from five distinct angle namely-manufacturers, middlemen, sales-force, consumers, and the society.Advertising benefits the manufacturers- To create awareness, customer interest or desire To boost sales (moving the demand curve to the right) To build brand loyalty (or to maintain it at the existing level) To launch a new product To change customer attitudes – perhaps trying to move a product more “up market” or to dispel some

widely held perceptions about the product To build the company or brand image To reminds and reassure customers To offset competitor advertising – businesses may defend market share by responding to competitors’

campaigns with their own advertising To boost public standing: companies can boost their public standing with advertisements that link them

with generally approved campaigns such as care for the environmentAdvertising benefits the middlemen- It guarantees quick sales-

Advertising informs the consumer about the availability of products with the retailer. It quickens the pace of sales thereby enabling the retailer to reduce losses in holding stock over longer period, reduces capital lock-ups and even increases profits through increased sales volume. It acts as a salesmen-

Advertising creates a favorable impression and image of the firm and its products. Retailers are willing to spend on advertising, which attracts consumers to the stores. It saves retailers to employ, train and control separate sales team.

It makes possible retail price maintenance-Very often advertisers publish prices of the product so that it will enable the consumers to budget their spending. It also reduces unnecessary bargaining by the consumers at the retail stores. Consumers, on the other hand is satisfied that he is charged reasonable price for the product and not cheated by the unscrupulous vendors.

Advertising benefits the salesmen- It creates a favorable background-The efforts of tactful and persuasive salesmen have value, esteem and glamour only when he has a matching backdrop. He may be active and versatile but the extent of his success is resting heavily on the colorful background created by the advertising. It is the advertising that makes the consumers to come to him and then he can prevail upon them. It lightens his burden of job-In the absence of advertising a salesmen has to perform a much tougher job of both advertising and selling. Advertising provokes the public interest, wins confidence, and promotes conviction. With such a task already achieved, the salesmen are at ease to close the sales with limited deliberations.

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Advertising benefits the consumers- It acts as a driving force in decision making-Advertising, through its various forms, disseminates useful information about the relative merits and special features of the products and services in terms of prices, quality, utility, durability, convenience and the like thus guiding the consumers to shop for a product with relative ease. It ensures better quality product at reasonable prices-The objective of every firm is to maintain quality and price of the product so as to win customer satisfaction. By imprinting price, ingredients and the date of manufacture and the date of expiry on the product promises the consumers that they are getting value for their money. It saves good deal of time-Advertising educates the consumers about the availability, utility, specialty of a product. As the consumers know about the product and services of different producers through advertisements, these goods are pre-sold. The only thing that is to be done is to visit the prospective store and pick the goods. Thus, they save good deal of time which otherwise would have been lost in locating, identifying, comparing and deciding about the product or service.Advertising benefits the society-

It uplifts the living standards- . It generates gainful employment opportunity- It provides new horizons of knowledge- It upholds the culture of a nation-

What are Characteristics of the elements in the promotional mix?

Advertising Public relations Personal selling Sales promotionMode of communication

Indirect and impersonal

Usually indirect and non personal

Direct and face to face

Usually indirect and non personal

Communication control our situation

Low Moderate to low High Moderate to low

Amount of feed back

Little Little Much Little to moderate

Speed of feed back Delayed Delayed Immediate VariesDirection of message flow

One way One way Two way Mostly one way

Control over message content

Yes No Yes Yes

Identification of sponsor

Yes No Yes Yes

Speed in reaching large audience

Fast Usually fast Slow Fast

Message flex Same message local audience

No direct control over message

Tailored to prospective buyer

Same message to varied target audience.

Bring out the Comparison of advertising / sales promotion and personal selling:

Personal selling is more important if.. Advertising / sales promotion is more important if..

The product has a high value.It is custom made product.There are few customers.The product is technically complex.Customers are concentrated.E.g.: insurance policies, custom windows,

The product has a low value.It is a standardized product.There are many customersThe product is simple to understandCustomers are geographically dispersed.E.g.: soap, magazine subscriptions, and

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airplane engines cotton T- shirts.

Difference between advertising and sales promotion:

Advertising Sales promotion

1. A reason is offered to buy.

2. Theme is to build up brand loyalty.

3. Aim is to attract the ultimate consumers.

4. Effective in the long run.5. Customers response is slower.6. Heavy advertising makes the brand image of the product and according to the perception of higher quality

An incentive is offered to buy.

Theme is to break down the loyalty to competing brand.Aim is to attract consumers but retailers, wholesalers, and sales forces also.Effective in the short run.Customer’s response is faster.Heavy sales promotion leads to the product being perceived as having a brand image of cheaper and lower quality.

Discus the Relative strengths and weakness of various promotional tools:

Element Strength Weakness

Advertising

* Reaches many potential customers.* Effective way to create images.* Flexible in terms of time and markets* Variety of media to choose from.* Relatively low cost per person exposed to message.* Appropriate for achieving many types of communication objectives.

* Reaches many people who are not potential buyers.* Ads are subject much criticism.* Exposure time is usually short.* People tend to screen out advertisement.* Total cost may be high.

Personal selling

* Sales people can be persuasive and influential* Two-way communication allows for questions and other feed back.* Message can be targeted to specific individuals.* In some situations, such as for complex products, buyer may expect personal sales.

* Cost per contract is high.* Sales people may be hard to recruit or motive* Presentation may vary among sales people.* Poor presentation may damage image as well as lose sale.

Sales promotion

* Supports short-term price reductions designed to stimulate demand.* Variety of sales promotion tools available.* Effective in charging behaviour.* Easy to link to other communication.

* Risks are during brand loyal customers to stock up while not influencing others.* Impact may be limited to short terms.* Price related sales promotion might hurt brand image.* Easy for competition to copy.

Publicity

* Total cost may be very low.* Media – generated message seen as more credible than marketer sponsored messages.* Potential buyers may be less apt to screen out publicity messages.

* Media may not co-operate.* Competition for media attention is heavy.* Marketer has little control over message.* Messages tend not to be repeated

Write about types of advertising?

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The important classification of advertising are: Product and Institutional.

1. Product advertising: it aims at selling a particular product. This is the common way. A particular product with its brand is promoted through advertising. For eg, Horlicks, Hamam, Bournvita, Viva etc., This types again divided into primary and selective.(a). Primary advertising (pioneer): this is a type of advertising used at the stage of introducing a new product to the market with the aim to inform the public as to its birth and other details. Eg: pressure cooker, bi cycles, scooter etc.(b) Selective advertising: this type of advertising is used when the market is loaded with similar products. There will be stiff competition among the producers. This generally happens in the growing stage of a products life cycle. Since competition is there, the advertisers aim to capture the market by influencing the demand for a specific product, probably supported by promotion activities. This type is also known as competitive advertising. Eg: prestige pressure cookers, HMT watches, rallie cycles etc.

2. Institutional advertising: this type of advertisement is displayed to create goodwill for the firm rather than to sell its products. Its aim is to make people, members of the advertiser’s firm. It gives importance to the firm and wants to create a good impression about a particular manufacturer or a shop keeper. Eg: Parry & co; godrej etc., this may further be divided into 3(a) In patronage: in it, consumers are informed about the firm, its product and policies.(b) Public relations: It tries to create a favourble image about the firm, dealing strike periods etc.(c) Public service: Here, the advertiser tries to create on image on public support, social services etc.

3. Commercial advertising: Commercial advertising or business advertising is concerned with selling products or ideas to increase the sales volume. They may be:Trade advertising – relating to tradeIndustrial advertising – relating to industrial goodsProfessional advertising – relating to professions (doctors, accountant etc)Farm advertising – relating to farm products.

4. Non- commercial advertising:Non – profit organizations adopt this type of advertisement for instance, inviting donations, financial aid etc.

5. Rational and emotional advertising:If the advertising explains the specialty of a product. Such as use the B.K. Soap. Kumari powder etcIt is a case of rational type. When publicity is made to effect a lady look like a cinema star, associated with a charming beauty, it is a case of emotional type

6. National & local advertising: when advertising is sponsored by manufacturers or producers. It is a case of national (general) advertising. When the advertising is done by retailers, it is a case of local (retail) advertising.

Write about the Role and functions of advertising?

1. Communication with consumers:Advertising is a major way to establishing communication between manufacturers and other organizations providing services or trying to put across ideas and concepts, on the one hand and customers, buyers and potential accptions on the other. It is a reminder to the existing consumes and it aims at cultivating need prospects as well. Advertising has, therefore, been described as, effective communication with the larger audience.2. Persuasion: Advertising attempts to persuade prospective buyers to by a product / service. In modern makers, the producer who is content with advertising that merely identifies or informs may soon fine himself in a vulnerable position. The consumer shout be aware of the advertisers persuasive interest no matter how restrained or information the message may be

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3. Contribution to economic growth: Advertising contributes to economic growth by helping to expand the market, particularly for new products, and by helping to develop new market segments.4. Catalyst for change: Creativity inherent in advertising loads to the discovery of new relationships that can change the perception of a prospect. Two aspects are of special significance: the originality of the message communicated, and the eventual effect on consumer’s standards of living. The ability to bring about changes comes from originality, intngenity, innovation & imagination in advertising. The contribution of advertising in bringing about a change is special relevance to developing countries.

Write about the characteristics of effective advertisement?

It is important to note that the study of effectiveness of advertising is the joint responsibility of the advertiser and his advertising agency, regardless of who is paying for research and under what head of account it is allocated. A proper understanding of the various aspects of effectiveness requires continuity of observation and use of appropriate research as and when called for. There can be a strong temptation to pass superficial judgment on the so-called effectiveness of an advertisement or a campaign. It is however, quite possible that a campaign may have proved effective owing to its intrinsic merit and appropriateness, or favorable conditions, or a combination of both.

Advertising effectiveness should not be confused with the winning of awards such as those given by the advertising club, Bombay in co-ordination with the commercial Artists’Guid. These All India awards for excellence in advertising have the following guidelines for judging the entries.

1. attention value2. comprehensibility 3. credibility4. technical execution5. overall impact6. originality

SOCIAL, ECONOMIC AND LEGAL IMPLICATIONS OF ADVERTISEMENTS

How do you define ethics? Cite an example of message that offends you?One of the most common reasons for criticisms of advertising is that, it does not promote the society well being. The following are some of the criticisms against advertising from social and ethical point of view.

Ethics: It is a moral code of conduct of an individual or group.

There are restrictions to the fact what is permissible in advertising. Eg. Cigarette advertisement is considered unethical, science it is injurious to health, so also alcohol.

1. Advertising is Untruth or Deceptive: One of the major complaints is that many ads mislead are untruthful and therefore, deceive the consumer. The advertiser must have sufficient back up for making a claim about the product performance and S (he) is required to produce evidence to support claims. Eg. HLL claims that its shampoo Clinic All Clear has ZPTO technology, but fails to provide evidence, on the same line, Liril advertised that it has lemon contents, but lacks in reality.

2. Sometimes, the advertisers fail to award prizes promoted in a contest associated with advertising. There are instances of participant going to consumer courts.

3. Most advertisers seldom design their message with an intention to award the prizes. These practices are unethical and the company will lose its reputation and risk in getting prosecuted in the court. This will tarnish the brand image of the company and is likely to lose the hard won customer trust and confidence.

4. Most of these unethical practices observed in advertising are through telemarketing or mail orders.5. The most important criticism of advertisement is that, advertisers usually present only information which

is favorable to their position but not the whole truth about the product or services.

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Cite a few criticisms against advertising and explain how advertisers defend them?

1. Advertisement is only informative in nature. It should not be taken word by word. Advertisers also argue that, they have the right to present the most favourable case for their products and services without being objective to justify the information. The advertisers feel it as the prerogative of consumers to get convinced or otherwise.

2. The advertisers feel enough protection to the consumer through courts and governmental body which protects against any misleading advertisement by the manufacturer.

It is contended that advertisements have harmful effects on the society. Eg.Bad habits, stereo-type culture, sex, nudity etc. All these are considered under-taste and appeal.

Taste: Sometimes, it is observed that advertisement is done in bad tasted. The sense of bad taste are follows:

i. Comparison: Advertisements should not be compared with its products and services with others without having sufficient back-up.

ii. Guarantee and warranty: The guarantee and warranty should be explicit with sufficient information. The terms and conditions of such warranty and guarantee shall be clearly disclosed.

Price claims: Advertisements should not mislead by announcing saving claims which does not exist. Eg. “Brand X petrol gives more economy. More economy means what? The claim has no defense. The type of advertisement can be misleading.Taste and Decency: In order to promote a product, certain public decency should not be sacrificed by the advertisers. Effect on children: Advertisement makes a great impact on children who are susceptible to deceptive advertisement due to ignorance. They are unable to ascertain the advantages and disadvantages of the product. Many advertisers exploit their innocence to create impression for new products. On account of this, children trouble their parents to purchase those articles, irrespective of its value and utility.Confuse the people: Advertising creates confusion I the minds of the people. This confusion occurs because of the claims made in the advertisement or because of repetitive advertisements which change the opinions of the individuals. Sometimes, emotional advertising brings irrationality among the individuals and forces them to go in for products and services. Eg: Let us considered an example of emotional application of a “After shave lotion”. The audience will be highly impressed with the antiseptic nature of a particular brand of after shave lotion. This information is quite rational. But advertiser will not stop at this. He will claim that this after shave lotion is “a hit with girls”. When the advertisers does this, he is to enter the motional domain of the viewer. Eg: It is informative to tell an audience that S(he) will lose several kilograms instantly. The methodology to be adopted for wight reduction will be known only after the participant registers with the weight reduction clinic. To the surprise of a participant, S(he) will find the dieting is necessary or wight reduction. But advertising does not convey this message and hence ‘such message are misleading.

Habits: Advertisement may inculcate bad habits among the viewers. Eg: Advertising for distinguished products People may tend to buy products which are not desirable. Sometimes, advertisement exploits the sentiment of “status symbol’. This unnecessarily creates a desire for satisfaction with ego protracted of the individual. Advertisement acts a motivator to realize the same. The passion to reach higher status is stimulated by advertising.

ADVERTISING AGENCY

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Write about advertising agency?Advertising agency is an independent organization that provides one or more specialized advertising and promotion related services to assist companies in developing, preparing and executing their advertising and other promotion programmes Most large and medium-sized companies usually use an advertising agency.

The advertising agency performs the following useful services.1. They develop attractive and cheaper ideas for advertising.2. The specialized agency, who has all facilities, such as artists, painter, photographers, export

personnel etc, can offer the best advantageous services to the advertisers.3. They posses a closer relation with media owners and this facilitates in obtaining space and timely

presentation at a competitive rate.4. The burden of advertiser is undertaken by them, so that they are freed and can attend to other jobs.5. The expenditure met by the advertiser for advertising can be tuned into productive expenditure with

the help of agencies.6. Generally advertiser fined difficulty in the preparation of advertisement copy. Often they make

wrong copy. But the agency prepares the copy quickly and correctly. This relieves the burden of advertiser.

7. The agency also does the work of special packing, designing, sales training, research, test marketing etc for their clients.

Types of Advertising agencies:Advertising agencies come in all sizes. They include everything from one or two person

shops(which rely mostly on freelance talent to perform most fractions) small to medium sized agencies, large independents and multi-national, multi-agency conglomerates such as Omnicom group, WPP group, Interpublic group of companies and Haves.

An agencies size should not necessarily be considered a barometer of their billing or ability to handle large accounts. Indeed, these days smaller boutique agencies are just as likely to count very large corporations amongst their accounts.Full service or media-neutral advertising agencies have the talent and ability to produce creative and advice clients for a full range of media for virtually any type of account, company. Some agencies specialize in particular fields such as medica, charitable, FMCA, white goods, retails etc. Other agencies specialize in particular media, such as print ads or television commercials. Other agencies especially layer one, produce ark for many types of media (creating integrated marketing communications or through the line (TTL) advertising). The ‘line’, in this case, is the traditional market between media that pay a (traditionally 15%) commission to the agency (mainly broadcast media) and the media that do not.Lately, search engine marketing (SEM) and search engine optimization (SEO) firm have been classified by some as ‘agencies’ due to the fact that they are creating media and implementing media purchase of text base (or image based in some instance of search marketing) ads. This relatively young industry has been slow to adopt the term ‘agency’ however with the creation of ads(either text or image) and media, purchases they do quality technically as an ‘Advertising Agency’ as well as recent studies suggest that but SEO and SEM are set outpace magazine spending in the next 3-5 years.

Not all advertising is created by agencies. Companies that create and plan their own advertising are said to do their work in house.

Inside the Agencies:Creative department: The creative department- the people who create the local ads.-form the core of an advertising agency. Modern advertising agencies usually form their copy writers and cut directors into creative teams. The cut director and copy writer report to a creative director, usually a creative employer with several years of experience. Creative departments frequently work with outside design or production studios to develop and implement their ideas. Creative departments may employ production artists as entry level position, as well as for operations and maintenance.

Account services:The other major department in ad Agencies is account series or account management. Account

services or account management is some of the sales arm of the advertising agency. An account executive

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(one who within the account service department) meets with the client to determine sales goals and creative strategy. They are then responsible for co-coordinating the creative, media, and production staff behind the campaign. Throughout the creative process, they keep in touch with the client to update them on the ad’s progress and gain feedback.

Creative services:The creative services department may not be so well known, but their employees are the people who

have contacts with the suppliers of various creative media. For eg., they will be able to advice upon and negotiate with printers if an agency is producing flyers for a client. However, when dealing with the major media (broadcast media, outdoor, and the process), this work is usually outsourced to a media agency which can advise on media planning and is normally large enough to negotiate prices down further than a simple agency or client.

Other departments and personnel:Advertising interns are typically university juniors and seniors who genuinely interested in and have an aptitude for advertising. Internships at advertising agencies most commonly fall into one of six areas of expertise: account service, creative interactive, media, public relations and traffic.Famous advertising agencies:

1. AKQA- clients include Coca-cola, Nike, Microsoft, Yell.com2. BBDO- clients have included Visa and Pepsi-co.3. BBH (Bartle, Bogle & Hegarty)- know for Audi, Hohnnie Walker, British Airways.4. JWT (formerly J> Walker, Thompson)- clients have included Kellogs, Unilever, Diageo.5. WPP group, PUblicis, Omnicom group etc.

Mention some Top 25 AD Agencies.

1. O&M2. McCann Erickson3. Lowe Lintas4. JWT5. Leo Burnett6. Mudra7. Gery Worldwide8. FCB-Ulka9. Contract10. Rediffusion DYR11. RK Swamy BBDO12. Saatchi & Saatchi13. iB & W14. Euro RSCG15. Bates Enterprises16. Ambience Publicis17. SSC&b Lintas18. Everest 19. Dentsu20. Interface21. Publicis India22. Triton23. Percept H24. Equus Red Cell25. TBWA

ROLE OF SALES PROMOTION

What is the role of sales promotion?

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In advertising sales promotion - it is apparent that companies communicate with their customers in a number of ways. It is important that we distinguish between the two main varieties of communication.

1. Impersonal communication – e.g. point of sale, promotions,

advertising, promotions and public relations;

2. Personal communication (or direct person to person) e.g. the face to face meeting between a sales person and the customer.

The problem faced by the company planning a communication plan is that firstly there usually is more than one person responsible for making the purchase decision; secondly, there is the important fact that the buyer is influenced by more than one form of communication. For example, the buyer might use the following four sources of information:

1. Trade and technical press2. Salesperson calls

3. Exhibition

4. Direct mail

A review of the facts above reveals the following:

1. More than one person in the purchasing company has an influence on what is bought2. Sales people do not see all the influencers

3. Companies get the information for their decisions from a variety of sources.

It can be seen then that the buying process is quite complicated.

1. The purchasing manager in an organization realizes the need for a specific product to be purchased as a solution to a problem identified;

2. The characteristics and quantity of what is needed are worked out. This is the outline design process such as deciding performance, weight, size, operating conditions, and so on;

3. A specification has to be drawn up based on the above;

4. A search is made for suppliers. This may merely involve the browsing through of a suppliers’ catalogue;

5. Potential suppliers will submit products and plans for evaluation;

6. After the necessary trials the suppliers are selected;

7. The supplier delivers the product after the order is duly executed;

8. The goods delivered are checked against specification;

Not all of these steps are followed in every buying decision. When something is being bought for a new project, all the phases would be followed. Where it is simply the replacement of something that has been bought before, the search and even the tender processes may not be necessary. The newness of the product being purchased also plays a role in the product being purchased. The newness of the product is determined by;

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1. The complexity of the product;2. The commercial uncertainty surrounding the outcome of the purchase.

Explain sales promotion in practice

Sales promotion is a problem-solving activity designed to get customers to behave more in line with the economic interests of the company.

Typical tasks for sales promotion are: rectifying slow stock movements; counter-acting competitive activity; encouraging repeat purchase; securing marginal buyers; getting bills paid on time; inducing trial purchase etc.

However, it is important to realize that, on its own, sales promotion will not replace selling, change long term trends, or build long term customer loyalty.

Types of Sales Promotion

Money Goods Services

Target market Direct Indirect Direct Indirect Direct Indirect

ConsumerPrice reduction

coupons vouchers money equivalent competitions

Free goods premium offers free gifts trade-in offers

Stamps coupons vouchers money equivalent competitions

Guarantees group participation events special exhibitions and displays

co-operative advertising stamps coupons vouchers for services

Trade

Dealer loaders loyalty schemes incentives 

Extended credit Delayed invoicing sale or return coupons vouchers money equivalent

Free gifts Trial offers Trade-in offers

Guarantees group participation events Free services Risk reduction schemes

Stamps, coupons Vouchers for services Competitions

Sales forceBonus commission

Coupon vouchers Points system Money equivalent

Free gifts

Coupons Vouchers Points systems Money equivalent

Free services Group participation events

Coupons Vouchers points systems for services Event admission Competitions

Strategic role of sales promotion

Because sales promotion is essentially used as a tactical device, it often amounts to a series of unconnected gimmicks to lacking any coherence. Contrary to this advertising has been always considered as a strategic process of building brand value over the longer term. Compare this against sales promotion which is commonly used to help the company retain a tactical advantage.

There is no reason why there should not be a strategy for sales promotion, so that each promotion increases the effectiveness of the next.

ETHICS IN ADVERTISING

Write about the Advertising Ethics, Legal and regulating environment in India?

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Ethics are moral principles and values that govern the actions and decisions of an individual or group. Many laws and regulations are put into force that determines what is permissible in advertising. However not every issue is enrolled by rules. There is considerable overlap between what many consider to be ethical issues in advertising and the issues of manipulation, taste and the effects of advertising on values and lifestyles. Certain actions may be within the law but still unethical. Cigarette smoking, for example, has been shown to be associated with high levels of lung cancer and other respiratory tract diseases and many people would consider cigarette advertising as unethical.

Advertising is a highly visible business activity and any lapse in ethical standards can often be risky for the company. Consumer protection groups question the sponsorship or support of sports events by companies selling alcoholic beverages or tobacco products.

In India advertising standards council of India (ASCI) enforces the ethical code for advertisers. The council is a non-profit organization setup by 43 founder members and has developed a regulating code. It proposes to adjudicate on whether an advertisement is offensive or not. The council’s decisions are binding on its members and in case of any disputes it proposes to deal with the government.

The code of Advertising standards council of India is similar to the Advertising Standards Authority (ASA) code of UK and seeks to achieve the acceptance of fair advertising practices in the best interests of the consumer.

In case of a complaint from a consumer, a 14-member sub-committee (consumer complaint council) consisting of people from various walks of life such as medicine, media, law etc, hears the complaint. Eight of these members must be from professions and activities not related to advertising. The council meets twice a month and a minimum of 5 members have to be present for any decisions to be taken. In the light of the code, the council asks the agency or the advertiser to comment and submit the substantiation. If the complaint is upheld by ASCI, it asks the advertiser to withdraw the concerned advertisement. This procedure is completed in 2 months. ASCI guidelines are as follows:

1. To ensure the truthfulness and honesty of representations and claims made by the advertisements and to safeguard against misleading advertising.

2. To ensure that advertisements are not offensive to generally accepted standards of public decency.3. To safeguard against indiscriminate use of advertising for promotion of products, which are regarded

as hazardous to society or to individuals to a degree or of a type which is unacceptable to society at large?

4. To ensure that advertisements observe fairness in competition so that the consumer’s need to be informed on choices in the market-place and the canons of generally accepted competitive behaviour in business are both served.

Code for commercial advertising on Doordarshan suggests 33 Do’s and Dont’s for advertiers and was presented before the Parliament in 1987. it incorporates the Indecent Representation of Women Act and the consumer Act, which were passed by the Parliament in 1986.Advertising principles of American Advertising Federation:1. Truth2. substantiation3. comparisons 4. Bait advertising5. guarantees and warranties6. price claims7. testimonials 8. Taste and decency.

Write about current issues in advertising and today’s challenges and opportunities of advertising?

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Advertising continues to grow in both importance and complexity. Challenges and opportunities for today’s advertisers include better targeting, enhanced creativity, new media horizons, and results – driven advertising.

Better local and global targeting:More advertisers are reaching out to many smaller markets through micro marketing, which offers an

opportunity to focus only on those people interested in their products. The information that fuels micromarketing is growing and much of it is already available .with insight and the computing power to analyze this information advertiser will be better able to locate and communicate with customers and potential customers by tailoring both message and medium to each individual.Enhanced creativity through technology:

From hologram to the computer- manipulated are used in print and electronic media, the creative side of advertising is reaping the benefits of new technology to give advertisers the opportunity to break through clutter and capture attention. New media horizon:

new advertising media are all around, opening new opportunities for advertisers to grab our attention at home or away advertisers are learning how to use the opportunities provided by place-base3d advertising ( also known as in-your-advertising), a form of advertising that reaches the target audience when they are away from home and where they cannot help but notice the message.Result- driven advertising:

If there is one world that sums up advertising’s direction in the 1990’s and beyond, it’s accountability. Advertising can be intriguing, exciting, even suspenseful, but if they don’t achieve the advertiser’s goals, they are not good making the drive for results a major challenges. Creativity is only one part of the advertising equation and advertisers and agencies must continue to work toward combining the message and the media to most effectively influence each target audience.

ROLE OF ADVERTISING IN MODERN BUSINESS WORLD

Explain the structure and role of a full-fledge service Ad agency? (Or) What factors are considered before choosing an agency?

1. Client search for a suitable Ad Agency to launch a product2. Approach by Accounts Executives of different lead agencies.3. Negotiation with various Agencies4. Finalize one Agency5. Client explains the motive behind the launch with the proposed budget6. Client choses a particular service offered by Ad Agency such as M.R. or selection of the particular

media etc.7. If M.R. is chosen, conduct market research and find out customers attitude and suggest appropriate

commercials accordingly.8. Selection of the media such as broadcast or print media.9. Preparation of the Advertisement specimen/spot (Theme. Appeal, Endorsement of the Celebrity)10. Focus on individual media.

a. Regional/national channelb. Print Media/English/Vernacularc. Media buyingd. Buying prime timee. Broadcast during Sports Programmef. Buy space in magazines and dailiesg. Evaluation of the commercial through actual sales.

11. Media buyinga. Broadcast mediab. Buy Prime timec. Broadcast during Sports programme

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d. Buy space in Magazines and Dailies12. Evalution of the campaign through market research and its correlation with sales.

Cont...ADVERTISING CAMPAIGNS

How does advertising affect brand management and development? If building brand loyalty is one goal, can you identify several examples of business that have successfully used advertising campaigns to create strong brand equity?

An advertising campaign is a series of coordinated advertisements that communicate a reasonably cohesive and integrated theme. The theme may be made up of several claims or points but should advance an essentially singular theme. Successful advertising campaigns can be developed around a single advertisement placed in multiple media, or they can be made up of several different advertisements with a similar look, feel, and message. Another example is represented by the Altoids ads through Notice the excellent use of similar look and feel in this advertising campaign. Advertising campaigns can run for a few weeks or for many years. The advertising campaign is, in many ways, the most challenging aspect of advertising execution. It requires a keen sense of the complex environments within which a company must communicate to different audiences.And think about these important aspects of advertising campaigns. Most individual ads would make little sense without the knowledge that audience members have accumulated form previous ads for a particular brand. Ads are interpreted by consumers through their experiences with a brand and previous ads for the brand. When you see a new Nike ad, you make sense of the ad through your history with Nike and its previous advertising. Even ads for a new brand or a new product are situated within audiences’ broader knowledge of products, brands, and advertising. After years of viewing ads and buying brands, audiences bring a rich history and knowledge base to every communications encounter.

END OF UNIT I

UNIT IIMEDIA MANAGEMENT

WHAT DO YOU MEAN BY MEDIA PLANNING?

The customer watch TV, they read newspapers and magazines. They reached on the Internet and read E-mails and millions of advertising messages reach them through all of these media. But which ones work best for brand or client to reach them? And how many should some use? What is the reach? What is the cost per thousand (CPT).

Media planning are those activity that after having received an objective, defines targets, identifies key factors and elements essential in attaining these objectives while keeping in mind these factors; and then selecting various media based on part experience (either by self, through research or through external help) while sticking to a reasonable budget. This process, in its entirely forms the entire spectrum of media planning activities.

WRITE ABOUT MEDIA PLAN AND STREATEGY DEVELOPMENT ACTIVITIES?

The ‘media class’ refers to the general category of delivery systems available to carry advertising messages to a selected audience such as print media, broad cast media, outdoor media etc. within these categories are media sub-classes such as newspapers, magazines, TV, radio and so on. The ‘media vehicle’ is the specific message carrier within medium, such as computer @ home and Business today magazines are vehicles in print media.

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Broad cast, press, outdoor, posters and cinema are often referred to as ‘above – the – line’ media. Direct mail, sales promotion, exhibitions, merchandising, sales literature etc are referred to a ‘below-the-line-media’. The distinction in media type is based on whether the agency gets a commission or not.In case of the former category, the agency gets a commission, while in the later there is no commission.

Some basic terms associated with media planning need to be mentioned. ‘Media planning’ refers to a series of decisions that need to taken in delivering the ad message to the largest number of the target audience in the most effective manner at the lowest cost. The plan specifies ‘media objectives’ and ‘media strategies’ to accomplish the objectives.

‘Reach’ is a measure of the number of different audience members exposed at least once to a media vehicle in a given period of time.

‘Coverage’ refers to the potential audience that might get exposed to the ad message through a media vehicle.

Reach refers to actual audience exposed to the message and coverage relates to the potential audience likely to be exposed to the message.

‘Frequency’ refers to the number of times the audience is exposed to a media vehicle in a given period of time (usually figured on a weekly basis for ease in schedule planning)

The basic goal of a media plan is to formulate a particular combination of media that would enable the advertiser to communicate the message successfully and effetely to the maximum number of potential and existing customers in the target market at the lowest cost. Any mistakes in the function may result in wastage of substantial amounts of money.

MEDIA STRATEGY AND SCHEDULING

MEDIA PLAN AND STRAGEGY DEVELOPMENT ACTIVITIES

SITUATION ANALYSIS

Analyze and define the marketing problem. What are the company’s and competitions strengths and weakness? What are the opportunities and threats?

MARKETING STRATEGYFormulate activities that will solve concerned marketing problems:

- marketing objectives - target market segments- marketing mix decisions.

ADVERTISING STRATEGYDecide what message to communicate through advertising

1. detailed profiling of target audience2. product and its positing decision3. communications media to be used.4. advertising message and appeal.

SETTING MEDIA OBJECTIVESSet media goals that can achieve advertising objectives

DETERMINING MEDIA STRATEGYSet guidelines for the selection & use of media, select the best strategy alternations.

SELECTION OF MEDIAComparing & selecting the media, class that best fulfills the criteria. Such as TV, newspapers, magazines, radio or others. Audience size a characteristics are used in making inter-media comparisons. Media planners will specify particular names of magazines newspaper, TV, programme etc.

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WRITE ABOUT MEDIA OBJECTIVES?Media objectives are formulated to help accomplish the advertising communications task and marketing objectives. Media objectives are translated into specific goals for the media programme and are limited to those that can be achieved through media strategies. For eg, the media objectives can be stated as;

1. Use print media to provide coverage of 80% of the target market over a six-month period starting July.

2. Reach 60% of the target audience at least 3 times (frequently) over the same six months period. 3. Concentrate heaviest advertising between October and December with lighter emphasis in earlier

months.

WRITE ABOUT MEDIA STRATEGY AND SELECTION?Several internal and external factors may influence the media strategies and include media budget,

capabilities of agency personnel, rising costs of media and the competitive environment.

EXPLAIN ABOUT THE CHANGES IN MEDIA BUYING?

Media are constantly changing, often reflecting economic, social, ethnic, and political changes. The press, while losing some circulation among the more sensational tabloids and the politically boring heavies, predominates chiefly because of its long life, portability and ability to reach any required target audience.

Radio both local and national is acquiring a new importance in the UK, which suits tight budgets.Posters, because of the rationalization of sites and sizes and the offering of strategically planned

campaigns, has resumed its former position.Direct mail continues to boom inspirit of the inefficiency of the post office but thanks to the growth of

direct response marketing. Cinema has shown a marked increase in audience figures. Transportation advertising does not seem to appeal to advertisers judging by the number of buses one sees naked of posters.

Exhibition have had mixed fortunes according to the location and extent, if any of government support. Exhibitions and trade fairs are popular but most exhibitions are seeking export markets which has meant showing in Asia, Europe and the Gulf rather than in Britain.

But the medium which is really losing favor is television, partly because its audience has the least spending power and partly because of the proliferation of channels plus the temptation to zap from one channel to another when the commercials come on. Moreover some of the commercials are so obtuse it is difficult to know what they are saying while the detergent ads of 90s have been the dullest ever imposed on TV audience already bored by endless repeats. Just as cinema advertising used to be seen by large audience at 3000 seated cinemas so too is television advertising heading for the history books. This is now such a clutter of commercials scattered over numerous channels that the audience has become fractured.

MEDIA SELECTION

Explain media selection?Media selection specifies the media in which advertising message will be placed to reach the desired target audience. Media class refers to a broad category of media such as Radio or T.V. Media vehicle is a particular option for placement within the media class. Media plan includes objectives, strategies, media choice for placing the message. There are two primary media objectives, reach and frequency. Reach is the percentage of audience exposed to the message. Frequency is the average number of times reached. Circulation refers to copies sold, while readership refers to number of persons actually reading the publication. There are four problems of media planning. Also there are factors to be considered by the media planner before emphasizing reach, frequency and continuity.Media strategies are decisions made to deliver the media objective. Media planner use several competitive indicators such as CPM and CPRP of vehicles in the same medium. Media planners use index method to find proper location. BDI and CDI are the indicators. Media schedule is based on consideration of seasonality and timing. Scheduling methods vary from continuity, flighting and pulsing. Good media strategy decisions help ensure that good message are placed in the right media.

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MEDIA PLAN

Write notes on Media Planning.

MEDIA PLANNINGMedia planning involves a series of decisions in delivering the ad message to the largest number of

the target audience in the most effective matter at the lower cost. Three important steps involved are media objectives, media strategy and media selection.

After closely analyzing the media habits of target audience, geographic area, and media timing, the planners formulate a particular combination that would serve the reach, frequency and impact objectives successfully and effectively. Media Class: is the general category of message delivery system for carrying the ad message to a selected audience, such as print media, broadcast media, or outdoor media etc. Media Vehicle: is the specific message carrier within a medium, such as Times of India, Outlook, Star Sports. Media Reach: is a measure of the number of different audience members or households exposed at least once to a media schedule within given period of time. Reach is also called Opportunity To See. (OTS).Media Frequency: is the average number of times that an individual or household is exposed to a message carrying media vehicle within the specified time period. Media Impact: refers to the qualitative value of an exposure through a given media vehicle. It is the intrusiveness of the ad message, such as the ad for a ladies perfume is likely to have more impact in Femina than in Computer Magazine. Media Scheduling: is concerned with timing the insertion of ads in the selected media vehicles. There are three major media scheduling approaches. Continuity refers to a continuous pattern of advertising that can mean every day, every week etc. during an advertising cycle.

State the various factors influencing the selection of media in media planning.

Selection among major media typesMedia planners consider certain factors in making their choices among major media to achieve the

desired reach, frequency and impact. Media planners consider the following factors. target audience media habits

For instance to reach younger urban audiences, TV, magazines and FM radio are more effective. Product Characteristics

Products that require demonstration or want to be presented in slice-of-life format need TV as the medium. Women dresses are best presented in glossy magazines that reproduce good colour quality.

Message CharacteristicsA product message involving a great deal of technical data might require some specialized magazines.

Media costs:Television is considered as most expensive. With the rising number of advertisers seeking to reach

their customers through TV, cost of TV time is rising rapidly. Newspaper is relatively less expensive, and considering the coverage, radio is least expensive. For Broadcast Media

Costs are compared in terms of Gross Rating Points(GRP). This is a numerical figure indicating howMany potential audience members are likely to be exposed to a series of commercials.

This combines programme rating (Indicates percentage of households owning a TV who view a programme) and the average number of times(Frequency) these households are reached during a given period.

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Magazine space is sold primarily on the basis of pages or some increment of a page and calculate on the basis of cost per page-per-thousand circulation. The Cost Per Thousand (CPM) is calculated as under:

GRP= Reach * Frequency

GENERAL CHARACTERISTICS OF MAJOR MEDIA TYPES

Media Advantages Disadvantages

Television

Offers mass coverage. High level of reach combined

impact of sight, sound & motion, prestige value.

Low cost per exposure. Attracts attention.

Offers low selectivity. Short span of message life. High cost. High production costs. Creates Advertising Clutter. Wastage coverage.

Radio

Local Coverage. Lower Cost. High Frequency, Focused Segment Selection. Low Production Costs.

Only audio. Noise. Low on attention getting. Message short lived.

Newspapers

Mass Coverage, Low Cost, Large Space, Short Lead time for ad

placing. Ad position choice possible, Good for current ads, Reader controls exposure, Coupons can be inserted.

Short life of advertisement Clutter.

Low Attention getting. Poor Production Quality. Selective Exposure.

Magazines

Potential for focused segmentation.

Very good production quality. Longevity of message. High information content. More readers per copy.

Long lead time for ad placing. Only Visual. Low frequency. Lack of flexibility.

Outdoor Good for specific location. High repetition. High visibility.

Short exposure time. Short message. Poor image.

Direct Mail High level of selectivity. Reader controls exposure. High information content.

High cost per contact Clutter often thrown as joint

mail.

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CPM= Cost of Space/ Circulation * 100

GRP= 1000,000* Rate Per Agate Line Circulation

Opportunity for repeat exposures.

Internet User controlled. Increased attention and

involvement.

Limited creative capabilities.

REACH AND FREQUENCY OF ADVERTISEMENTS

Discuss - Reach and Frequency Of Advertisements.

There are two kinds of reach:1. Numerical 2. Percentage

Numerical reach is the number of persons (or households, or adult females, or whatever your target population happens to be) that will be communicated to by your advertising. Numerical reach is usually rounded, so you may try to reach 8 million male teens or 1.5 million households.Percentage reach is the percent of all the persons (or, again, households, or working females, or whatever you target) that you will reach with your campaign. If there are 35 million college students in the United States and you will reach 10 million of them, you will reach about 28.6 percent of them. Because percent reach is often rounded to the nearest integer (whole number), you would have 29 percent reach.Reach is often abbreviated as “R” in tables and informal report.

Frequency:There are also two kinds of frequency: frequency of insertion and frequency of exposure.

Frequency of insertion describes the number of times that your advertisement appears in the media. Often, frequency is described on a per-week basis, rather than the frequency per year or the frequency during the course of a campaign. So you might be running your advertising twenty-five times a week on a radio station during your thirteen-week campaign.Just because you run advertising insertion frequently does not mean that the audience will see or hear your advertisement every time it runs. In fact, it is unlikely that any member of your advertisement every time it runs. If you have a frequency of insertion of twenty-five times per week, the average audience member will see or hear that advertisement only three or four times each week, which would be your frequency of exposure.When scheduling multiple advertisement insertions, you are likely to reach your audience members with varying degrees of frequency. If you schedule, say, ten advertisements, perhaps only 10 percent of the audience members will see all ten and 30 percent will see only one. One method that a media planner uses to analyze the impact of an advertising media schedule is to look at a frequency distribution of the impressions.There are different schools of thought on how many times a consumer must see or hear and advertisement before it registers. The concept of effective frequency pegs a specific frequency number, such as 3+ (persons who see or hear the advertisement three or more times), which is when it is believed that a consumer will retain the message.Frequency is often abbreviated as “F” in informal plans and tables. Because no single week may be completely representative or average, we often count up the frequency over a four-week period and then divide the figure by four to come up with the weekly average. That way, a week that is higher or lower than average will not skew the figures.

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Frequency and Repetition Some people believe that frequency and repetition are the same thing, but they are not. Frequency is the number of times you advertise, whether the same message is repeated or not. Repetition is using the same advertising message over and over again, whether it is done frequently or not.A local store buys twenty-five spots per week on a local radio station and has the messages delivered impromptu by one of the station’s on-air personalities. The advertising is appearing frequently, but it is unlikely that any of the messages is repeated exactly. Here we have frequency without repetition.A large insurance company runs its Christmas message in magazines every December, using the same message every year. Advertising one time per year is definitely not frequent advertising, so here we have repetition without frequency.

ADVERTISEMENT COST

Explain Advertisement Cost?Media costs are a major consideration. Some media are expensive while others are less so; television has high advertising rates for air time, and the cost of producing a television commercial may also be steep. Radio, on the other hand, is much less expensive. Although costs are are important, the cost must be balanced against all the other factors. Does an inexpensive medium have the same audience impact, or is there a trade-off for the less expensive media outlet?Most advertising media also offer discounts, which can be based on the amount of advertising purchased – a “quantity discount” – or on regular purchase of advertising – a “frequency discount.”

Compare – Media Cost.

In addition to selecting media that reach out target, we often must judge how efficient the media are, often comparing the cost of one media vehicle with another on the basis of cost efficiency. Because costs vary so much form one medium to another, these cost comparisons are usually made for one vehicle versus another, rather than one medium versus another. Only a person who is highly skilled and experienced selecting and comparing media uses these cost comparisons to compare one medium with another. It is difficult to know whether a full-page, four-color bleed advertisement I a national magazine is equivalent to a thirty-second network television commercial (a “:30”), or a sixty-second commercial (:60), or perhaps a: 15. It is safest, then, not to use these cost comparison figures for intermediate comparisons.

Explain cost per thousand.In advertising, the number 1,000 can be abbreviated as K (kilo) or M (mille). Most often, K is used for money and M is used for audiences. Because 1,000 x 1,000 equals a million, we use MM to mean a million. (Don’t get confused by newspaper headlines, which often use M to mean million).So the term “cost per thousand” is abbreviated as CPM. It is difficult to compare the cost efficiency of, say, one magazine with another because, in addition to having different advertising prices or rates, they also have different circulations. Say that Magazine A, with a circulation of 2.1 million, charges $23,500 for a full-page advertisement, and that Magazine B, with a circulation of 1.2 million, charges $13,500. you would expect the magazine with the larger circulation to charge more, but it is difficult to determine which magazine is more economical.

That is where CPM comes in. instead of trying to compare the costs and circulation at the same time, we assume that each magazine has a circulation of only 1,000, and we then compare the cost for each 1,000 circulation. We do this by dividing the advertising rate by the circulation, to get the cost of advertising in a single copy of the publication, then multiplying by 1,000 to compare the cost of a thousand-copy circulation.

Here is the CPM for Magazine A.

$23,500 x 1,000 = $11.19 CPMMagazine A = ---------

2,100,000Doing the same for the other publication gives a comparison CPM.

Magazine B = $ 13,500 x 1,000 = $11.25 CPM-----------

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1,200,000

So if both magazines had the same circulation, magazine A would be charging less for advertising. Saying that another way, magazine A charges less for advertising for each 1,000 circulation than does Magazine B.As we have just seen, for publications we often compare cost per thousand on the basis of circulation. But remember that the term “circulation” does not mean the same thing for broadcast media, so instead of circulation, we use audience numbers for CPM calculations in broadcast media. Because the number of people in an audience is usually much larger than the print circulation, CPM figures come out lower for broadcast media than they do for print media-another reasons not to use CPM for intermedia comparisons.

Explain cost per point?We can also compare costs among media vehicles on the basis of how much it costs to reach 1 percent of the audience. Remember that 1 percent reach is the same a s a rating point, so we call this comparison cost per rating point; it is sometimes abbreviated as CPR (cost per rating) or CPRP (cost per rating point), but most of the time it si simply called CPP (cost per point).

If radio commercial costs $5,300 and it reaches 2.2 percent of the audience, we simply divide the cost by the rating to derive the cost per point.

Cost per rating point = $ 5,300 = $2,409 CPP----------

Rtg

Just as with CPM, you can use CPP to compare the advertising rates of one media vehicle with another. If another radio station charges $6,200 and achieves a rating of 2.5 percent, its CPP would be:

Cost per rating point = $6,200 = $2,480 CPP---------

Rtg

So the first radio station is slightly more efficient in reaching a rating point ( 1 percent of the audience).

Cost comparisons are an important way to compare media vehicles, but we also need to compare one medium with another. Most of the time, these intermediate comparisons are based on a number of factors, other than price.

What are Ratings?

The concept of rating has a unique meaning in the advertising industry unlike the meaning used in everyday talk. When people typically use the word rating, they are referring to a judgement about something. For example, a movie (or restaurant, CD, etc.) might be rated on a five-star scale from terrible (=1 star) to wonderful (= 5 stars.). However, in the context advertising, the term ratings simply refers to the percentage of an audience that has an opportunity to see an advertisement placed in that vehicle. Let us illustrated the meaning of ratings using television as an example. As of 2005, the ACNielsen company, which is well-known in the area of measuring television ratings, estimated that there were approximately 109.6 million households in the United States who had television sets. Therefore, a single rating point during this period represents 1% (1,096,000) of all television households.

What is Gross Rating Points (GRPs)?

Gross Rating Points, or GRPs, reflect the gross weight that a particular advertising schedule has delivered. The term gross is the key. GRPs indicate the total coverage, or duplicated audience exposed to a particular advertising schedule. Compare these terms with the alternative terms given earlier for reach – that is, net coverage and unduplicated audience.

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Returing to our hypothetical example of an advertisement for the Esuvee in Sports Illustrate, the reach was 90, meaning that nine of the 10 households in our mini audience were exposed to at least a single issue of SI magazine. The gross rating points in this example amount to 200 GRPs because audience members were exposed multiple times (2.22 times on average) to the vehicles that carried the Esuvee advertisement during the four-weel ad schedule.It should be apparent from this discussion that GRPs represent the arithmetic product of reach times frequency.

GRPs = Reach ( R ) x Frequency ( F )= 90 x 2.22=200

By simple algebraic manipulation the following additional relations are obtained:

R = GRPs / FF = GRPs / R

What is TRps?

Target Rating Points (TRPs):A slight but important variant of GRPs is the notion of target rating points. Target rating points, or TRPs, adjust vehicle ratings to reflect just those individuals who match the advertiser’s target audience. Returing to the Esuvee example, let us assume that the advertising target for this SUV model is primarily men between the ages of 18 and 49 who have incomes of $45,000 or more. Considering the 10 TV programs listed previously, assume that, as a matter of simplicity, only 35% of the total audience exposed to each of these programs actually match Esuvee’s target market. Hence, although placing a single ad in each of these programs yields 119.8 gross rating points, this same schedule produces only 41.9 target rating points (i.e., 119.8 x .35 = 41.9). it should be obvious from this simple illustration that GRPs represent some degree of wasted coverage insofar as some adudience members fall outside the target audience the advertiser wishes to reach. Comparatively, target rating points, TRPs, represent a better indicator of a media schedule’s non-wasted weight. GRPs equal gross seight, some of which is wasted; TRPs equal net weight, none of which is wasted.

MEDIA MIX

Mention some factors to be considered in Media Mix?

Media mix: Media mix refers to the combination of media that is used. The following factors are considered in the media mix. There is a possibility that an advertiser can use the combination of broadcast and print media for the same product. Housing loan – give only a brief outline in the broadcast media, such as the name of the bank and interest rates. Announce the details of the housing loan available in the print media and the name of the newspaper which the customer could refer.

1. Match the media to the target market: The media planner should know the degree of interest that people have in a particular meida. Eg. In a particular geographical location, there may be many illiterates, Here, the print media will be more effective. Therefore, it is necessary to match the media mix with the target market.

2. Relative efficiency of the media: Cost efficiency has to be calculated before choosing a media. Cost efficeiency is defined as the cost at which the media reaches the target audience effectively. The most common measure of cost efficiency is the “cost per thousand”, CPM, which is the cost of reaching one thousand people in the target market. Eg. Take two newspapers, The Times of India and the Statesman. Let us calculate the cost efficiency as follows:

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Time of India StatesmanPer page cost Rs. 1,56,000/- Rs. 1,44,000/-Circulation 4 million 3.1 millionCalculation of CPM 1,56,000 x 1,000

40,00,0001,44,000 x 1,000 31,00,000

CPM 39 46.45

From the above, it is evident that the Times of India is cost efficient even though its absolute cost is higher.

3. Match the media type to its objective: Eg. If reach is the main objective, then newspaper can be used, since it has got a bigger reach compared to other media.

4. Media type used by competitor: The media planner may like to avoid the same medium as that of competitor. He may choose some other innovative medium. Eg. API Polymer, manufactures of sports shoes under the brand name “Action” targeted the lower-end of the market. Initially, they were pitted against gaint global brands such as-Adidas, Puma, etc. the global multinationals use heavy TV commercial to promote their product.

Through innovative media planning, API Polymer used celebrity cricketers on point of purchase material (like posters, cut outs) instead of going into expensive TV commercial. This appealed to the mass audience and created high brand awareness. Besides POP they also put up sign boards in shopping centres. TV advertising was kept minimal.

5. Nature of the product: Media Mix will depend on the nature of the product. If it is technical product, the magazine would be ideal. If it is perfume, a celebrity on TV serial would be ideal etc.

6. Traget market coverage: Where more than one target market is defined, the media planner must determine the relative importance of each. This is known as “Weighting” Weighting classifies the target into primary target and secondary target.

7. Scheduling: Three scheduling methods are available for media planner namely a) Continuity: Continuity refers to a continuous pattern of advertising which may be every week or every day. The key is that, there is no non-advertising period. Such a strategy is used for advertising food products, laundary detergents etc. b) flighting: Eg Flighting employs intermittent periods of advertising and non-advertising. At some periods, there are heavier promotional expenditure and at other times, there is no advertising. Eg. Educational Institutions an example of flighting, some of the consumer durables like ridge etc. c) pulsing: Plusing is a combination of both the methods. In the pulsing strategy, continuity is being maintained. But at certain times, promotion efforts are stepped up. Eg. Automobiles such as car has advertisements which peaks during January – March. Because, depreciation advantage can be taken and most of the corporate buy vehicles during this time. Also, during Diwali and Dussehra, an advertisement for consumer durable follows pulsing.

d) Reach Vs. scheduling: While establishing the reach, care must be taken to see that there is no duplication. If one ad is placed in two different serials for the same population, there will be duplication and wastage. This has to be avoided. It is here that was would like to distinguish the Gross Rating Point (GRP) Vs. Target Rating Point (TRP). TRP does not include waste coverage.

e) Flexibility: An effective media strategy requires certain degree of flexibility. This is because, the marketing environment changes rapidly and strategies need to be modified. Flexibility may be needed to sort out the following:

1. Market opportunities: Sometimes, when the market opportunity arises, the advertiser wishes to take advantage. For development of a new advertising media such as Internet, it may offer an opportunity that was not previously available. Eg. House rentals, Tutorials.

2. Market threats: A competitor may alter his media strategy. If it is not responded properly by the marketer, could create problem.

3. Availability of media: Sometimes, a desired medium is not available or the medium currently used is inaccessible, alternative media vehicle must be considered.

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What is Budget consideration?

One of the most important decisions in the development of media strategy is cost estimation. The value of any strategy is cost estimation. The value of any strategy can be determined by “How well it is delivers the message to the audience at the lowest possible cost”. There are two types pf costs to be considered

a) Absolute Cost: Total cost require by using only one media. Relative cost – Refers to comparative cost for different mediums (Example shown between Times of India and Statesman may be quoted). The relative cost is determined as follows:

Magazines = CPM = Cost of advertising space X 1000 / Circulation

TV = Cost per rating points = Cost of commercial time / Rating points Rating point = No. of people who watch a particular programme / Total no. of people owing TV in that area.

Newspaper = Cost per line / Inch = Cost X 1000 / Circulation.

List out the table - Media Planning in India.

Electronic Media Print Media Outdoor / Other media

Doordarshan – 24 channels private satellite channels – 95 Cinema – Mass media that reaches large population TRP – Television rating points used to evaluate private channels DART – Doordarshan audience research television rating

Newspaper – National, Regional, English or Vernacular Magazines – National, Regional, English or Vernacular.

Bill Boards Wall paintings Point of purchase display Ballon advertising In-stadium advertisement Transit advertising through local train, bus, tram etc.

END OF UNIT II

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UNIT III

DESIGN AND EXECUTION OF ADVERTISEMENTS

MESSAGE DEVELOPMENT:

Write about creativity strategy?

Advertising strategy consists of 2 major elements:

1. creating advertising messages and 2. selecting advertising media.

Messages and media should blend harmoniously to create an effective overall advertising campaign.

Creating the advertising message:

Two advertisers can spend the same amount on advertising, yet have very different results no matter how big the budget, advertising can succeed only if commercials gain attention and communicate well.The changing message environment:

Good advertising messages are especially important in today’s costly and cluttered advertising environment.

Today’s viewers avoid ads by watching commercial free cable channels. They can ‘zap’ commercials by pushing the fast-forward button during taped programs. With remote control, they can instantly turn off the sound during a commercial or ’zip’ around the channels to see what else is on.

Thus, just gain and hold attention, today’s advertising messages must be better planned, more imaginative, more entertaining and more rewarding to consumers. Today we have to entertain and not just sell, because if you try to sell directly and come off as boring or obnoxious, people are going to press the remote on you, ”points out one advertising executive”. When most TV viewers armed with remote channel switches, a commercial has to cut through the clutter and seize the viewers in one to 3 seconds or they’re gone,”comments another. Creative strategy will play an increasingly important role in advertising success.

Message strategy: The first step in creating effective advertising messages is to decide what general message will be

communicated to consumer to place a message strategy. The purpose of advertising is to get consumers to think about or react to the product or company in a certain way. People will react only if they believe that they will benefit from doing so.

Thus, developing an effective message strategy begins with identifying customer benefits that can be used as advertising appeals. In searching for benefits to feature, many creative people start by talking to consumers, dealers, expects and competitors. Others try to imagine consumers buying or using the product to figure out the benefits they seek.

Ideally, advertising message strategy will follow directly from the company’s broader positioning strategy.

Usually a copywriter and act writer will team up to generate many creative concepts, hoping that one of these concepts will turn out to be the big idea. The creative concept will guide the choice of specific appeals to be used in an advertising campaign. Advertising appeals should have 3 characteristics.

1. They should be meaningful-pointing out benefits that make the product more desirable or interesting to consumers

2. Must be believable –consumers must believe that the product or service will deliver the promised benefits.

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3. Appeals should also be distinctive they should tell how the product is better than the competing brands.

Message execution:The impact of the message depends not only on what is said, but also on how it is said. The

advertiser now has to turn the”big idea” into an actual ad execution that will capture the target market’s attention and interest.The creative people must find the best style, tone, words and format for executing the message. Any message can be presented in different execution style, such as the following

slice of life life style fantasy mood or image musical personality symbol technical expertise scientific evidence testimonial evidence

Finally, format elements make a difference on an ad’s impact as well as on its cost. A small change in ad design can make a big difference on its effect. The illustration is the first thing the reader notices it must be strong enough to draw attention. Next, the headlines must effectively entice the right people to read the copy. Finally, the copy-the main block of text in the ad must be simple but strong and convincing. Moreover, these 3 elements must effectively work together.Selecting Advertising Media

The major steps in media selection are 1) Deciding on reach, frequency and impact, 2) Choosing among major media types, 3) Selecting specific media vehicles, 4) Deciding on media timing.

1. Reach is a measure of the % of people in the target market who are exposed to the ad campaign during a given period of time.

Frequency is a measure of how many times the average person in the target market is exposed to the message.

Media impact- the qualitative value of a message exposure through a given medium2. The major media types are newspapers, TV, direct mail, radio, magazines, outdoor and online. Each

medium has advantages and limitations.3. The media planner now must choose the best media vehicle-specific media within each general

media type, such as specific magazines, television shows or radio programmes. E.g. magazine vehicle include Newsweek, people and sports illustrated.

4. The advertisers must also decide how to schedule the advertising over the course of year.Effective creativity:

1. Measuring the communication effects of an act copy testing-tells whether the ad is communicating well.

2. After the ad is run, advertise can measure how the ad affected consumer recall or product awareness, knowledge and preference.

3. Measure the sales an effect of advertising is to compare part sales with part advertising expenditure.

What do you mean by creativity and write about creative process?

Creativity is probably one of the most frequently used terms in advertising circles. Perhaps so much attention to creativity is given because people consider the specific challenges of developing an advertising message as the domain of creative people. Individuals and advertising agencies often build up reputations for their creativity.

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The word ‘create’ denotes organizing or conceiving an idea or a thing that did not exist before. Typically, though creativity involves combing previously unconnected ideas or objects into something new. There is general belief that creativity emerges directly from human intuition, but the reality is that creativity can be learned and used to generate original ideas.

The creative process:Most ads are the result of much sweat, tears and persistence, many advertising professionals are of

the opinion that creativity in advertising can best be viewed as a process and that creative success is mostly achieved by following an organized approach.

No one really knows why one person can consistently create successful ads and why the other person meets repeated failures. A creative individual is most likely to be one.

Who can produce a large number of ideas quickly(conceptual fluency) Is original Is capable of separating source from content in evaluating information Suspends judgement and avoids early commitment Is inclined to be loss authoritative Accepts personal impulses. Is capable of judging independently Possess a rich, bizarre fantasy life.

According to Alex F. Osborn the creative process involves the following 7 steps:

1. Orientation : pointing out the problem2. Preparation : gathering pertinent data.3. Analysis : Breaking down the relevant materials.4. Ideation : Piling up alternative ideas5. Incubation : Putting the problem aside to invite spontaneous ideas at some later, unguarded time.6. Synthesis : putting the pieces together and7. Evaluation : judging the resulting ideas.

Young’s five-step model:1. Immersion: Gathering raw material information through background research and immersing yourself in the problem.2. Digestion: Taking the information, working it over and wrestling with it in the mind.3. Incubation: Putting the problem out of your conscious mind and turning the information over to the subconscious do the work.4. Illumination: The birth of an idea the phenomenon, Eureka! I have it!”5. Reality or verification: Studying the idea to see it still looks good or solves the problem, then shaping the idea to practical usefulness.

Four-step approach suggested much earlier by Graham Wallas, an English sociologist. The 4-step approach is,

1. Preparation : Gathering background information needed to solve through research and study2. Incubation :Gathering away and letting ideas develop3. Illumination : Seeing the right or solution.4. Verification :Refining and polishing the ideas and seeing if it is an appropriate solution.

Roger Von Oech describes four essential activities that every act direction and copywriter has to perform at some point in the creative process. They have assumed the imaginary roles of the explorer, the artist, the judge and the warrior.

The explorer gather new information and looks for any unusual patterns The artist considers many different approaches to come up with an original idea.

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The judge evaluates the results of these approaches and selects the most practical one. The warrior overcomes hurdles and idea killers to bring a creative concept to reality.

MEDIA RESEARCH

Explain about the advertising research?Advertising research is a subset of marketing research. It systematically gathers and analyses

information to help develop or evaluate advertising strategies, individual ads, or whole advertising campaigns. The advertiser needs to know how consumers receives its products or services, what are their views about the competition and what image of the brand or the company would be most appropriate to build.Purpose of Advertising Research:

1. Used to determine the product positioning, to assist in the selection of the target markets, advertising messages, or media vehicles.

2. Creative concept research is used to assess the extent of the largest audience’s acceptance of different creative ideas at the concept development stage.

3. Pre-testing of ads is done to diagnose any possible communication problems before beginning an ads campaign,

4. Post testing of ads helps advertise to evaluate the campaign results.

Discuss - advertising strategy research.

The major purpose of conducting ‘target audience research’ is to develop a precise profile of a brands target markets and consumers. It is critically important to know which customers can be classified as the primary uses of the product category and then carefully study their geographic, demographic, Psychographic and behavioral characteristics. The research may reveal which are the most potential market segments and target them to achieve advertising objectives.

To develop an effective ‘positioning strategy’ for the brand, the advertiser needs to know how consumers receive their brands and those of the competitors. They also need information on what qualities, features or benefits associated with the product or service lead to initial purchase and ultimately to brand loyalty.

‘Communication media research’ helps develop media strategies and select media vehicles from among different media class and type (TV, newspapers, magazines, radio, outdoor etc). Ad agencies subscribe to syndicated research series such as NRS & IRS that monitor and publish information on the research, audience profiles and effectiveness of different media vehicles.

Advertisers undertake research to study and identify what the consumer’s likes and dislikes are with respect to brands or products and hope to fine the big idea and develop promising advertising messages. Research has use concept testing to determine which message-element option to most likely to prove successful.

Creative concept research:It prepares several tentative ad concepts in the form of rough copy platform or the story bard.

Researchers conduct focus group in the agency’s developmental lab, which combines intensive qualitative interview with quantitative techniques. A discussion leader moderates the conversation and each group views the roughs (copy platform, storyboard or animatic). The reactions of these groups are measured, videotaped and observed by researches behind a one-way mirror. This helps in identifying the most promising creative concept among the ones that have been seen and discussed by the focus groups.

Pre-testing or evaluative technique research:Advertisers use pre-tests and post-tests to ensure that advertising money is used wisely to achieve the

predetermined objectives-testing can help in judging the effectiveness of the advertising strategy or medium.Pre-testing is used to increases the likelihood of creating the most effective advertising messages.

This helps in spotting any communication groups or flavor in the ad message content before the account

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executive recommends it to the client. Advertisers are often interested in concurrent testing to assess the audience response while the ad campaign is under way.

POST-TESTING (also called ad-tracking) is important to evaluate the success, or otherwise of an individual ad or the whole campaign after it has run.Basic approaches for testing Ads:

Pre-testing (also known as evaluative research) methods.

Methods: 1. Print advertising

Direct questioning Focus group Portfolio testPaired comparison testOrder of merit test Mock magazine testDirect mail test

2. Television and Radio Advertising:

1. Central location test2. clutter test3. trailer test4. theatre test 5. live telecast test6. live telecast test7. sales experiment

2. Physiological testing:

1. Pupillometeric device2. Eye-movement camera3. Galvanic skin response4. Voice-pitch analysis5. Brain-pattern analysis6. Hemispheric lateralization.

Post-testing methods:Most post-testing methods can be part into five broad categories:

1. aided recall2. unaided recall 3. attitude tests4. inquiry tests5. Sales tests.

List the common research methods used in Advertising. (or) Discuss the methods to measure Advertising Effectiveness.MEASURING ADVERTISING EFFECTIVENESS Survey Research is used to amass quantities of responses from consumers about their attitudes and

behaviours In-depth Interviews probe the reasons and motivations consumers give to explain their attitudes and

behaviour

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Focus Groups are group interviews that operate like conversations directed by a researcher Observation is research that happens in the store or home where researchers watch how consumers

behave Ethnographic Research is an anthropological technique that involves the researcher in participating in

the day-to-day lives of consumer Diaries are records of consumers’ behaviour, particularly their media use. A number of other qualitative

methods are used to creatively uncover patterns in the way consumers think and actTYPES OF ADVERTISING EVALUATIONPRE-TEST EVALUATION

The evaluation prior to the running of ads in the media is called pre-test evaluationPOST-TEST EVALUATION

The evaluation after the ads have been run in the media is called post-test evaluationPre-testing increases the likelihood of preparing most effective ads, by allowing us an opportunity to

detect and eliminate weakness or flaws. Post testing is elaborate, expensive and is more realistic since ads are tested in real-life setting. Post-testing guides us to future, advertising strategy.

PRETESTING ADSSome popular techniques used to pre-test the ads are as follows.

(1)CONSUMER JURY TESTHere a group of consumers (say 12 to several hundred individuals) act as jury to show their

preferences for one or two ads out of several being considered. The jury members have to rank the ads. The jury members respond to the questions like:

(a) Which of these ads interested you most?(b) Which of these ads provoke you to buy the product?(c) Which of these ads received your attention first?(d) Which of these ads are easily readable and understandable?(e) Which of these ads are credible?Consumer Jury is conducted by two methods:

(a) Order Of Merit Rating(b) Paired Comparison

ORDER OF MERIT TESTHere, the ads are ranked as per preferences by the jurors or potential prospects. Reasonably, six ad

copies can be tested with accuracy by this method; later the accuracy decreases. The consensus emerges about the best ad copy at the end. But the best may be the best among the worst ones. In case the number of ads increases, the accuracy decreases. PAIRED COMPARISON

Here at a time two ad copies are compared. It is one-to-one comparison amongst test ads. More than six ad copies can also be compared by this method. Every single ad is compared with all others. Sources are recorded on cards. They are summed up. Comparison can be made using the following formula.

N= number of ads to be tested

AD EFFECTIVENESS(Testing)

POST-TESTING OF MEDIA,

MESSAGES,MARKETS AND OVERALL RESULT

PRE-TESTING OF MEDIA, MESSAGES,

MARKETS, BUDGETING AND

SCHEDULING

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Number of comparisons=n(n-1)/2

PORTFOLIO TESTHere some dummy ads are mixed with regular ads. A number of dummy ads are put in a folio along

with the ad copy to be tested. The consumer-sample sees the folio. The consumer is then asked about what he has seen in each ads. The ad giving maximum playback is considered the best. It is verified whether the adjudged ad is dummy or regular. In case it is dummy, the actual ad is improved on the same lines. MOCK MAGAZINE TEST

It uses a real magazine. It introduces test ads in a magazine to an experimental group to read. The control group is also exposed to the same magazine, but is without test ads. Later a recall test is conducted to assess the effectivenss of test ads. PERCEPTUAL MEANING STUDIES(PMS)

This method uses time exposure to test the ads. Tachistoscope is an instrument that may be used in this test. The respondent see the ad for a pre-determined time, and then are subjected to a recall test-product, brand illustration and the main copy.

PRETESTING BROADCASTING ADSThe techniques used for pre-test broadcast media ads are as follows.

(1)IN-HOME PROJECTION TESTA videotape is taken into the homes of target customers, who then view the commercials. The

consumer is questioned before and after exposure.(2)TRAILER TESTS

In a trailer in a shopping center, shoppers are shown the products and given an opportunity to select a series of brands. They then view commercials and are given coupons to be used in the shopping center. Redemption rates indicate commercials influence on purchase behaviour.(3)THEATRE TESTS

Consumers are invited to a theater to view a potential new television series along with some commercials. Before the show begins, consumers indicate preferred brands in different categories, after the viewing, consumers again choose preferred brands. Preference changes measure the commercial’ persuasive power. (4)LIVE TELECAST/ON-AIR TESTS

Respondents are recruited to watch a program on a regular TV channel during the test commercial or are selected based on their having viewed the program. They are asked questions about commercial recall.

ADDITIONAL PRE-TESTING TECHNIQUESSome of these are :

(1)SALES EXPERIMENTBefore going national, a small ad company is run. It consists of either one or more ads. Two or more

test centres are selected to do so. The period for which the ads run is fixed(say one to four months). The sales responses are noted. It is useful for those products which are frequently purchased and those ads who aim to motivate buyers to immediate sales action. (2)DIRECT MAIL TESTS

Prospects from the mailing list randomly selected are sent different test ads and the orders against each lot are noted. (3)PHYSIOLOGICAL TESTING

Here physiological reactions of the respondents are noted, rather than what they have to say. Three Principal instruments to do so are (a) EYE MOVEMENT CAMERA

It measures both the horizontal and vertical movements of a respondent’s eye. The route taken by the eye is noted. The pauses are noted. The areas of attention and interest can be judged.(b)PSYCHOGALVANOMETER

It is another devise to measure galvanic skin responses to advertisements. We try to measure the physiological reactions like perspiration on a palm of a hand of the respondent while seeing the ad. If the perspiration is more, person is reacting to the ad. It is useful only for the ads of very sensitive nature. (c) PERCEPTOSCOPE OR PUPILOMETRIC DEVICES

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This instrument records changes in the pupil size of the respondent’s eye. The principle involved is that pupil dilation is indicative of interest and pupil contraction indicative of lack of interest in what is being viewed.

Dilation indicates reading and attention. Contraction shows his dislike to what is being read.(4) SIMULATED SALES TEST

The test exposes the consumers to alternative copies of the ad through the point-of-purchase displays or direct mail. Suppose, two copies A and B are to be tested. A is displayed in one group of showrooms and B is displayed in another group of showrooms. The increase in sale is noted in each group of stores. The group having more sales is supposed to have the best copy of the ad.

In the similar manner, through direction mail the different copies are sent to different group of customers and effect on sales due to these groups of customers is noted. A group making maximum purchases after receipt of the ad, is supposed to carry the best copy of the advertisement.

The advantage is that this method is simple and economical. On the other hand, it suffers from the limitations of being artificial and misleading in practice. Because the increase in sales at the point-of-display does not ensure similar increase in the sales when the ad is actually released in the media.

POST-TESTING THE ADSMost commonly used post-testing techniques are (1)Penetration Tests: Recognition / Recall (2)

Progress Tests or Sales Effects Tests.(1)PENETRATION TESTS(a)RECOGNITION TESTS

These tests are also known as Recognition/ Readership / Viewership tests. They are more widely known as the “Starch Advertisement Readership Rating”. Starch tests have been conducted by the Daniel Starch Organisation U.S.A. since 1932. Here, the respondents are shown the issues of magazine they claim to have read. The results are put into three categories(i)NOTED(N) is a person who remembers having seen the ad in the issue under study(ii)SEEN-ASSOCIATED(A)is a person who has not only noted the ad, but also seen or read some part of it. He may associate the ad with the product or advertiser.

(iii)READ-MOST(RM) is a person who has read half or more of the written material in the ad. The above categories of readers are expressed in percentage terms. This method is also applicable to

broadcast ads where commercials on tape are played. McGown(1979) gives the following formula to calculate readers per rupee.

The drawback of this method is the phenomenon of fable claims on the part of the reader. (b)RECALL TESTS

It deals with asking the respondent what he/she can recall or remember about an ad. These tests differ from the recognition tests in that the respondent in recall tests is not shown the ad in advance. For conducting the recall tests, we ask only the qualified readers i.e. those who are able to describe atleast one editorial feature of the magazine issue in which the ad in question has appeared. From these qualified readers, “ recall is obtained – using both aided and unaided recall techniques. The respondents are asked to playback everything they can remember. Recall tests can be conducted in three different ways namely(i)UNAIDED RECALL

The respondent is not helped in anyway in recalling the ad, by the interviewer(ii)AIDED RECALL

In this test respondents are shown certain ads and then asked whether their previous exposure was through reading, viewing or listening. The test respondents are given some clues for recalling the ad.

(iii)TRIPLE ASSOCIATION TESTHere, the respondent is asked to recall the ad and associate that with the product, brandname and

copy theme. The Triple Association Test measures the awareness about the product created by the ad. Eg:- “Which toothpaste advertises super whitening paste and mouthwash in one?”. If the respondent says “Close

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Readers Per Rupee = Per cent noted* Magazine’s Primary Readers Space Cost

Up” then it is correct to say that he has made the right association between the brand name of the toothpaste and its advertisement theme. MERIT-Recall tests are simple to conduct and economical too. They measure to what extent the ad has penetrated(its ability to communicate) in the consumer’s mind. DEMERIT-A high recall store does not necessarily lead to the buying of the product. It shows only that the customer is impressed by the ad and so has limited value. P.C.R.B METHOD

Crisp has developed this P.C.R.B(Penetration, Comprehension, Recall, Believability) Method to test whether the ad has penetrated in the mind of consumer. This method allows the respondent to take as much time as he wants to read the ad. Immediately after reading, questions are asked what he remembers about the ads of similar products.This provides comparability of data. In order to find what impact or retention the ad has, the respondent is asked about his experience with regard to specified discriminants among the P.C.R.B factors of an ad. This may provide an overall picture of the relative impression that the ad makes on the reader. The test is applicable to T.V. commercials as well. (2)PROGRESS TESTS

These assess the various stages of buyer awareness, preference, buying intention and the actual purchase in relation to ad effort. They are called sales effect tests. INTEND-TO-BUY TEST

The readers of a magazine are asked what the effect of ad is on their intention to buy. Once they express an intention to buy, a further probe of the element of ad that influenced them most to do so is assessed. It is assumed that an intention to buy will be converted into actual purchase sooner or later. SALES RESULT TESTS

The additional sales generated by the ads are recorded, taking several routes. Past sales before the ad and sales after the ad are noted. The difference is attributed to ad impact. CONTROLLED EXPERIMENT

In experimental market, any one element of marketing mix is changed. It is compared with the sales of another similar market. The elements presence or absence is a reason for difference in sales. Instead of two markets, the experiment can be carried on the two groups of consumers. The Inventory Audit is dealers inventory before and after the ad is run. INQUIRY TESTS

These are couponed advertisements of consumer durables and they invite the consumers to seek more details / demonstration. The number of enquiries reveal the effectiveness of the ad. By this method, the organization offers to send something complimetary to the reader, if he writes for it. Eg:- Goodlas Nerolac offers a book, “All about Paints”, to whose who put in a request for it, generally by filling up a coupon. ATTITUDE TESTS

This is an indirect measurement of the post-testing effects of ads on attitudes towards the advertised product or brands. The change in attitude as a result of advertising is assessed through rating scales.

DIFFERENT TYPES OF ADVERTISEMENTS

Explain different types of advertisement.

The different types of advertisements are as follows:1. Print2. Radio3. T.V.4. Web advertisements5. Magazines and Journals

Write about forms or types of Television Advertising?A television advertisement, advert or commercial is a form of advertising in which goods, services,

organizations, ideas etc., are promoted via the media of television. Most commercials are produced by an

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outside advertising agency. The first TV ad was broadcast in the United States 14:29 on July 1 st ,1941 for BULOVA watch company.

TYPES OF TV ADVERTISEMENTS

1. Political TV advertising2. Infomercials3. Product Placement4. Television Commercial Donut5. Sponsorship6. Network or Local station Promotional Advertising (also known as Promo)

1. Political TV advertising:A Political campaign is an organized effort to influence the decision making process within a

group. In democracies, political campaign often refer to electoral campaign were in representative are chosen or reference are decided. Political campaigns also include organised efforts to alter policy within any institution.

2. Infomercials:Infomercials are television commercials that run as long as typical television programme

(roughly 28 minutes, 30 seconds). Infomercials also known as paid programming (or teleshopping in Europe).

3. Product Placement:Product Placements ads are promotional ads placed by marketersusing real commercial

products and services in media where the presence of a particular brand is a result of an economic exchange. When featuring a product is not part of an economic exchange, it is called a product plug. Product placement appears in plays, film, television service, music videos, video games and books. The most common form is movie and television placements and more recently computer and video games. Recently websites have experimented with in-site product placement as a revenue model.

4. Television Commercial Donut:A television commercial donut is a template for a television commercial. It contains all the

specialized elements necessary to create finished commercials, but does not contain any specific product, pricing and logo. It is named, some what humorously, after the donut, a pastry with a hole in the middle.

5. Sponsorship:A Sponsor is the individual or a group that provides the support similar to a benefactor.

Sponsorship typically benefits both the recipient as well as the sponsor. Sponsorship may be an arrangement to exchange advertising for the responsibility of funding

a popular event or entity. Eg: a corporate entity may6 provides equipment for a famous athlete or sports team in exchange for brand recognition.

This type of sponsorship known as cause-related is prominent in the sports, arts, media and charity sectors.

Audience measurement is any method of measuring how many people are in an audience, usually in relation to radio lisetenership and television viewership. It often also includes demographic and sometimes psychographic information, to help broadcasters determine who is listening, rather than just how many. This broader meaning is called audience research.

Methods:

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1. Diaries: the diary was the first and until recently the only method of recording information. However, this is prone to mistakes and forgetfulness as well as subjectivity.

2. Electronic: more recently, technology has been used to take listening and viewing habits. Arbitror’s portable people meter uses a microphone to pickup and record subaudible tones embedded in broadcasts by an encoder at each station or network.

PRINT, RADIO. T.V. AND WEB ADVERTISEMENTS

Write about Print media?Advertisement in newspapers, magazines, journals etc can be called as press advertising. It is the

most popular and widely used means of advertising. It is most economical media of advertisement.A. Newspaper:

There is no doubt that the newspapers are the best and popular medium for advertising. It reaches every nook and corner of the country. In India there are many languages. Newspapers are being published in 91 languages.

Different types of newspapers are existing. They are National Dailies, Regional Dailies, evening dailies, National weeklies etc. When the literacy rate is increasing, this medium can easily be adopted for good result through advertising.

Merits:1. These are having a large demand and wide coverage.2. The cost is less3. wide publicity is possible4. It contains interesting matter for everybody. ‘Business News’ for men, Ladies page for women, ‘

fashion pages’ for youngster, ‘comics and puzzles’ for children etc5. Speedy preparation and publication of advertising is possible.6. It makes quick results the public response is quick7. Regular and frequent ad is possible 8. It is flexible i.e., number of pages and shape of the ad can also be changed9. It is suitable for direct and indirect selling10. In local Newspapers, preference is given to the advertisement of local products.Demerits1. It is having the shortest life. Today’s newspaper is Tomorrow’s waste paper.2. Frequent advertisement is required lees it should become ineffective3. Newspaper advertising is affected by the illiteracy of the public. It affects the utility of

newspapers also, the effectiveness is questionable4. Chances for display and demonstration are much rare.5. People read newspapers in a hurry. Hence they do not take notice of the advertisement. Hence

advertisement becomes a waste.

B. Magazines and Journals:

These are periodically published. They are published weekly, fortnightly or monthly. Magazines are read leisurely. There are different types of magazines.

a) General magazines: General magazines are read in easy-chairs. There is generally a lengthy advertisement. The standard of reproduction is also in a better way. They give more interesting and a longer duration. Eg. Illustrated weekly, blitz etc.

b) Specialists Magazines: They are technical and professional journals. Technicians read technical journals. Doctors, lawyers, accountants etc. read professional journals. There are special magazines for industry, banking, politics, religion, agriculture, insurance, transport, literature etc. Special magazines for women and children are also available

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c) Special issues: Dipawali malar, Directory (Telephone directory) are also published which contain a large number of advertisements along with articles, stories, special features etc. Some magazine enjoys national & international circulations.

Merits:

1. It is hearing longer life then newspaper.2. It is having greater reference value of advertisement.3. Color advertisement attracts the people very much.4. It is published for selected people.

E.g. famina is meant for women, medical journal for doctors etc.5. Cost is also comparatively low.6. Advertisement in standard magazines creation a national image for the product. E.g. Readers

digest, illustrated weekly.7. If satisfies the need of or particular class of people say ‘commerce ‘for business.8. Magazines guarantee uniformly of coverage.

Demerits: 1. It is less flexible. 2. Limited circulation. If reaches only a limited section of people. 3. It is costly. High quality paper4, colours and preparation cost of magazines are high. As such the cost of advertising is also high. 4. Introduction of a new product is ineffective, as it takes time to advertise the new products. Hence timely information of arrival of a product is not possible. 5. Advance planning is needed to advertise in the magazine. As such advance submission of advertisement is necessary. 6. It is not suitable for regional advertising. For e.g. Readers Digest is Unsuitable for regional advertising

Explain about the Television and Radio broadcast?

(a) Radio: It is the quickest medium of advertising when compared to Newspapers or magazines. Sound moves faster then other media. It Is also popular in India and the radio has started playing an important role as one of the media of advertising. It plays its role well, especially in rural areas where newspapers can not reach. Merits: 1. Coverage and appeal are wide. 2. It is the best means for illiterate people. 3. Spoken words are more effecting than written words. 4. It is flexible and timely. 5. It adds to the prestige’s of the advertises 6. Spot programmes can be arranged. Demerits:

1. It is quite costly.2. Only limited time will be allowed.3. In many cases, listeners may be irritated corn the commercial advertisements.4. The effectiveness of advertising can not be measured.

(b) Television:It is of recent origin. Television advertising is the latest medium of mass communication and

is widely used for advertisement. It is an audio-visual medium, because one can see and hear.

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Merits:

1. It appeals to the eye and the ear.2. People are impressed by pictorial presentation.3. Interest is further boosted by introducing color televisions.4. It has the characteristics of a salesman.

Demerits:

1. It is an expensive medium.2. The impact of advertising can not be measured.3. It is suitable only for large firm

Write about out-of-name or outdoor advertising?Outdoor advertising passes the message to these people who are moving audience. Generally

almost all the people go our on some purpose or other-office, walk, sight-seeing, journals, pack visit etc.

1. Mural advertising (posters)2. Advertising Boards.3. Vehicle advertising.4. Painted Display.5. Traveling Display.6. Electric Display.7. Sky advertising.8. Sandwich-men.9. Hand bills (leaf lets).

Write about Internet Advertising?

It is being claimed that internet is going to be the hottest media if the future. Internet is a worldwide means of exchanging information through a series of interconnected computers. Internet represents e-mail, e-commerce, information and entertainment Internet is now accessible to anyone with a computer, a modem, a cellular phone and an Internet account.

Types of Internet Advertising:Internet advertising is seen in many forms and as the medium matures, the variety would increase.

Present day advertising on Internet can be classified as Banners, websites, ad button, sponsorships, interstitials and classified ads.

1. Ad banner: this is the most basic type of Internet advertising. It is like a billboard that appears across the top or bottom of a web page and when clicked upon by the user, it sends him/her to the advertiser’s site. The size of the banner is about four and half inches wide by one and a half inch.

2. Website: A web site is in fact a location on the Internet rather than an ad where anyone can come to find out about the company, its products and/or services. It is used as a brochure to promote the companies product or service. There are some companies who use their websites as a source of information and entertainment and encourage internet uses to visit often some other companies use the web as an online catalogue sore, conduction business right on the internet.

3. Ad button: and ad button is a smaller version of a banner that of ten locks likes an icon and usually servers to provide a like to the advertiser’s home page. Software technologies such as java, acrobat, Enliven and shockwave, have greatly enhanced the effectiveness of banners and ad buttons with full motion and animation. Some search engines, like web crawler and excite offer audio features to advertise that accompany a click on the banner.

4. Sponsorship: Internet advertising of this from is becoming popular. Companies’ sponsor the total section of or publisher’s webpage or sponsor single events for a connected period of time.

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Companies get considerable recognition on the web site in the form of integrating sponsors brand with the publisher’s content as an advertorial, or with ad banners and buttons on the webpage, in exchange for their sponsorship.

5. Interstitial: This is more recent form of Internet advertising and is who referred to as the interstitial. This is an animated ad that pops up on the computer screen while downloading a web site by the user. Advertising age has reported that there type of ad is twice as effective as ad banners at generally higher levels of brand awareness.

6. Classified ad: This type of Internet advertising offers an excellent opportunity for local advertises and is becoming popular among them. Many of the classified user sister offer free classified advertising opportunities as ad banners of other advertises already support these sites. A classified ad is quite similar to the one that are seen in the names papers.

Sl. No Advantages Disadvantages1. Internet is a truly interactive medium

that allows customers to directly interact with an advertiser and establish a relationship

The internet is plagued by a lack of knowledge of advertising effectiveness, market research and standard methods of measurements for both ad exposure and pricing.

2. Internet is the only true global medium, providing information and commerce that is immediately accessible from around the world.

Targeting costs can be very high compared to any other medium because of precise selectivity criteria. The more precise the targeting, the higher the costs.

3. Except personal selling no other customer contact method can generate an immediate are available to customers on demand.

Slowness of downloads and connectivity prob infrastructure improves, internet would remain very costly alternative to other media

4 Internet provides highly selective targeting by purchasing keywords and reach potential customers when they are ready to purchase

The cost of personal computer is still very high for middle class families and the technology discourage a large no of people in developing countries

5. Internet users mostly have higher incomes and more buying power, which is a favorable factors for all the advertisers, particularly of high priced products.

Doubtful security and privacy concerns discourage online purchases. So far internet has not proved safe for financial transactions, and this limits its viability.

6. Commercial website provide detailed indepth information about products and services to customers

Although internet advertisers can easily reach the international market. Internet is not really as pervasive in most developing and under developed countries as in united states or other developed countries.

7 Internet increases business to business users while they are still at work. Consumer advertising can also reach these internet users.

Many countries have outdated telephone lines, and high cost local telephone services or the infrastructure is inadequate.

Explain about E-Marketing or Internet Marketing.

INTERNET MARKETINGMany people believe that the Internet enables businesses, respondents, and customers close to real-

life like interaction. The Internet emerged from a U.S. Government project in 1970. The purpose was to develop some system of communication that would link researchers all over the world and allow them

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access and exchange of information. In 1989 World Wide Web (WWW) was developed. Web makes it possible for its users to share a complete range of communications including text, graphics and audio messages.

Anyone with a computer and the Internet connection can access websites sitting anywhere in the world and buy or sell products and services. Electronic networking refers to the linking of companies or individuals and can be accomplished by using some form of telecommunications. Companies or individuals can create an electronic network to share a variety of ideas, information, views, data and perform various tasks.

In business firms, when computers of company employees or departments are linked via Internet, this arrangement is known as intranet or local electronic network.

EFFECTS OF THE INTERNET ON MARKETSAudience Freedom

Prior to the usage of the Internet by marketing companies, communications were traditionally under the control of the sellers. Of course companies kept in mind the target audiences, but the decision was always theirs, about when, what and where with respect to messages they used in their communications with customers.

The picture seems to be reversed with respect to marketing related interactions online. It is the Internet user who decides to use the computer, locate a website, and also decides what pages to consider or ignore. For example, a potential customer for a laptop computer, may visit any one or more number of computer seller websites and choose which pages to read or ignore, including accessories, independent software sellers, and service facilities and on every page there would be direct and indirect promotional messages. Quantity And Quality Of Information

The available information on the Internet about any item is extensive in terms of quantity and quality and a customer is in a much better position to compare various alternatives, to choose what is more suited to her/ his specific needs and wants.

A buyer can look at various sites and choose the one with right price, sitting at home. Customers are in a much better position to compare prices and make use of this information in negotiating with traditional sellers. Speedy Customization

Few years back, customisation in case of consumer items was rare and limited to made-to-ordery jewelry watches or cars etc. and these were expansive products. Now companies, such as Dell Computers and some others, offer buyers the choice of speedy customization. Flexible Prices

In case of certain consumer products and services, the norm of fixed prices is becoming flexible. Internet makes it possible for customers to post their specifications with respect to the product or service and at what price it would be acceptable, and then sellers make offers to buyers. Internet auction sites are available where a prospective customer can record her/ his bid. eBay is the largest online auctioneer with about 40 million registered sellers and buyers selling or bidding for more than 125 million diverse items, including retired ships or submarines. Air travelers post their travel details and specify ticket prices and sellers make offers. These are no fixed prices, buyers and sellers interact in real time and prices are determined. Distribution Channels are Becoming Shorter

Unlike traditional marketing channels that involve more levels, Internet has made it possible to ship one or more levels or create direct-to-customer channel in case of many durable and non-durable product categories and services. In case of direct marketing, we have seen how Internet is changing the shopping scenario. Many large retail chain stores are buying direct from the manufacturers thus, eliminating wholesaler’s roles. Customer Communication

Promotional Messages from producers are viewed as biased as firms have self-interest with regard to selling a product or service. Independent information sources are viewed as objective and credible because the independent third party gains or loses nothing from a buying decision. The Internet has tremendously enlarged the scope of exchanging word-of-mouth information from third parties. The Internet makes

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available unlimited information through chat rooms, forums and independent evaluations from other users of a product or service. Many firms make the individual evaluations from the users of a product or service. Many firms make these individual evaluations and opinions available on their sites for customer convenience and as a tool in building customer confidence.

COPY STRUCTURE

Write about copywriting?Copywriting is a specialized form of communicating ideas that are meant to serve the requirements

of modern marketing. It helps in establishing links between advertisers and their prospects. It may also be used to promote the acceptance of an idea, as in the case of non-commercial advertising. It utilizes words to convey messages having commercial, informative or persuasive value through various media and its success is indicated by the acceptance by the audience of the idea or claims made for goods or services.Strategy in copywriting:

A copywriter performs a highly responsible role of fully understanding the marketing strategy and integrating it, through creative strategy, in the copy. The job also involves coordinating with visualizes for bringing in suitable illustrations which will highlight the effect of the copy and make if appealing and completely comprehensible. A copywriter must, therefore be totally familiar with the marketing goals of the advertiser and specific advertising objectives. Copy writing skill requires command over language and an intellectual and creative mentality. It may also be necessary at times to assume the role of a salesman, for instance to understand the marketing perspective from the advertiser’s angle as well as from the audience’s appoint of view.

Write about Direct marketing strategy?Direct marketing:

Direct communications with carefully targeted individual consumers to obtain an immediate response.

The major forms of direct marketing include face-to-face selling, direct mail marketing, catalog marketing, telemarketing, direct-response television marketing kiosk marketing and online marketing. Face-to-face selling:

The original and oldest form of direct marketing is the sales call. Today most business-to-business marketers rely heavily on a professional sales force to locate prospects, develop them into customers, build lasting relationships and grow the business. Or they hire manufacturer’s representatives and agents to carry out the direct selling task. In addition, many consumer companies use a direct-selling force to reach final consumers, insurance agents, stock brokers and salespeople working part or full-time for direct-sales organizations such as Avon, Amway, Mary Kery etc.Direct-mail marketing

Direct marketing through single mailings that include letters, ads, samples. Foldouts and other ‘Sales people with wings’ sent to prospects on mailing lists.

Recently however, 3 new forms of mail delivery have become popular.1. Fax mail2. E-mail3. voice mail

Catalog marketingDirect marketing through catalogs that are mailed to a select list of customers or made available in

stores.Telemarketing:

Using the telephone to sell directly to consumers.Direct response television marketing

Direct marketing via television, including direct response television, including direct response television advertising or infomercials and home shopping channels.Kiosk marketing:

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Some companies place information and ordering machines called kiosks (in contrast to vending machines which dispense actual products) in stores, airports and other locations.Online marketing and Electronic commerce

Marketing conducted through interactive online computer systems, which link consumes with sellers electronically.Commercial online services to subscribers who pay a monthly fee such as America online, compuserve and prodigy.Internet (or the Net)

The vast and burgeoning global web of computer network that links computers around the world.World Wide Web (or the web)

The user-friendly internet access standard.

Write about Integrated Direct marketing?Direct marketing campaigns that use multiple vehicles and multiple stages to improve response rates

and profits.Although direct marketing and online marketing and online marketing have boomed in recent years,

many companies still relegate them to minor roles in their marketing and promotion mixes. Too many direct marketers use only a ‘one-shot’ effort to reach and sell a prospects or a single vehicle in multiple stages to trigger purchases. For eg: a magize publisher might send a series of four direct-mail notices to a house hold to get a subscriber to renew before giving up.

More elaborate integrated direct marketing campaigns can be used. Consider the multimedia, multistage campaign. Here the paid ad creates product and stimulates inquiries. The company immediately sends direct mail to those who inquire. Within a few days, the company follows up with a phone call seeking an order. Some prospects will order by phone; others might request a face to face sales call. In such a campaign, the marketer seeks to improve response rates and profits by adding media and stages that contribute more to additional sales than to additional costs.

What do you mean by Ad copy? Concept of Ad copy:

An advertising copy may be defined as all the written (or) spoken matter including figures etc. Aimed at conveying some desired message to target customers. Thus the advertising message is printed (or) broadcast. It includes the headings, sub-headings, picture captions, slogans and body etc. Define Advertisement Copy:

Advertising copy includes all the written (or) spoken elements of the messages including headlines, the advertisers name and address, coupons and the message in an advertisement to target customers.

Classification of Advertising Copy.

What are the forms of advertising copy? Explain.There are various objectives of preparing an advertising copy. Hence there are various types forms

or styles of advertising copy. The important styles, types or forms of advertising copy are as follows:

Scientific Copy: Scientific copy is of a technical nature and produces detailed information about the product and the producer. It aims at forming the ordinary people in general, and professional men in particular about the merits and value of the product so that they may be stimulated a to buy a particular

Paid ad with a response channel

Direct mail Outbound telemarketing

Face-to-face sales call

Continuing communication

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product. Engineering and drug and pharmaceutical firms elaborating the propositions of properties and constituents of the product generally use it.

Descriptive copy: This type of advertising is of non-technical nature and is presented in a manner, which any layman can easily understand. It gives detailed information about the product in a very simple language. Good examples are to be found in mail order, catalogues, and departmental stores advertising and in the advertising of tools and machines. It trends to select logical customer and eliminate others. It may safely be used when there is a clear established want for the goods, which a purchased as a matter of routine or necessity motley on a price or a convention basis. For example, “Lifebuoy for health, where is lifebuoy there is health.”

Topical Copy: Topical copy of an advertisement is intended to appeal to prospects by establishing a connection between the product and a particular recent happening, which should not look absurd. It commands a goof deal of interest because of that sensational event which lives absolutely fresh in the minds the prospects. For example, H.M.T. Watch Company may advertise its watches by informing the prospects in a topical copy that the group of Indian women who were successful in climbing Mount Everest recently has with them the watch of the company, thus providing their excellent quality. Narrative Copy: Under narrative copy, an appeal is made to prospects with the help of a fictitious story, which is narrated, to bring home to the public, the advantages of purchasing the product. The story is humorous and carries the message in an appealing manner, which will be remembered easily by the public.

Institutional Copy: Institutional copy aims at selling the name of the advertiser or the firm, which is producing or selling the products. The main objective of such type or advertisement is to create, maintain or increase the goodwill of the product or of brand or of the department of the firm as a whole. Institutional copy invites the target customer to the selling outlet. Such a copy creates confidence in the minds of the general public about the product superiority. For example. An advertisement from ACC cement reads, as “It is good, if it is ACC”.

Personality Copy: The personality copy attempts to encash the opinion of an important personality about the product. Such a copy includes the certificate, testimonial, photograph or the statement of influential persons. He may be an eminent political leader, expert cricket star or film star. Personality copy advertisements are quite popular on television these days. Questioning Copy: Questioning copy includes a series of questions expected to be answered by the readers. The question arouses the curiosity in the minds of the readers and makes them to think of it. The statement or reasons of its own so as to persuade the readers to buy the product. For example, such questions may be asked. Are you worried of facing the forthcoming university examinations? (Read Ratan Guess Papers).Are you worried about protecting your valuables? (Purchase Godrej steel Almirah)

Educative Copy: educative copy is designed to educate the general public about the qualities of a particular product. Such an advertising copy depicts the specialties of the product in contrast to the existing brands in the same product category. The purpose of this type of advertising copy is to maintain or increase the demand of the advertiser product.

Humorous Copy: This type of advertising copy attracts the attention of their renders by its humorous appeal. Whether this will be effective or not depends on the style and theme of the copy. The preparation of a humorous advertisement is not everyone’s cup of tea. A slight oversight on the part of the copywriter or a little overdose of humour will makes the advertisement vulgar and offensive, and repel the reader from the product that is advertised. As a matter the humor makes the reader smile. Prestige Copy: This type of advertising copy does not advertise directly but creates a favorable atmosphere about the product or the firm for its sale.

Colloquial or Conversational copy: The colloquial copy presents the message in the form of conversation. It uses informal language and conversation takes place in terms of “Y” “You” with personal reference to

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reader and the advertiser. For, example, two persons converse about the advantages of Insurance or Buying a Particular Book.

Suggesting Copy: A suggestive copy tries to suggest the readers directly or indirectly to peruse them to purchase a particular product. It is useful where the reader is confused about the quality of a product brand and is not in a position to take necessary decision about the purchase of the product or brand.

Reasons-Why Copy: This type of advertisement copy explains the readers as to why it is necessary to purchase a particular product. It gives definite positive point in amour of a particular product. For example, why a student should purchase the advertisement copy may explain a particular book. Announcement copy: This type of advertisement copy is used to introduce a new product or the new uses of the product or changes in the product or price changes or changes in the policies of the firm. The main purpose is to inform the public.

Human-interest copy: Human interest copy appeals to the emotions and the serves of the readers. Sympathy, affection, love, humor, curiosity, fear and other emotional appeals are used to appeal to the senses of sight, touch taste, smell and hearing etc. Human-interest copy tells about the product in relation to the people instead of conforming to the fact about the product.

Fear Copy: A fear copy appeals to the sense of fear and arouses deep interest in protesting property, life and day-to-day needs. Fear is normally cause by a feeling of insecurity. Competitive Copy: It aims at putting for the special features of a product. It promotes to differed one brand from competitors brads. It meets the challenges of the competitors.Institutional copy: It sells the products of the institution but the name of the institution. Also known as prestige (or) corporate advertising, this is the type of advertisement used to present the company’s image. ‘Good will Copy: Is one which does not two to sell a product but aims to sell the public some idea on the firm in general, on the quality of its product, its utility etc. Selling copy: It is used y the retailer to make an immediate sales of the goods, which he may have to stock.

COPY WRITING

Meaning:Copy writing is a specialized form of communication ideas that are meant to serve the requirement of

modern marketing. The purpose is to inform (or) persuade (or) recollect (or) remind. But before copy writing the objective of the copy should be well defined.

The Copywriter must be totally familiar with the marketing goals of the advertiser and specific advertising objective. Copy writing skill requires command over language and an intellectual and creative mentality.

Explain Steps in Copy Writing.

Creative is of paramount importance in initiating the process of copywriting. Creative ideas have to be combined with purposeful thinking.

According to Clarke there are SDC steps in copy writing.

Abstracting: Relevant data are to be obtained from the market situation, prospects and relevant media.Synthesizing: Elements are blended and combined, idea and approaches accepted, rejected, revised etc. Hypothesizing: Ideas formulated into experimental patterns culminating is a working statement.Gestation:-Objections and difficulties are resolved by involving discussion with others or reference to source of information.Coalescence:- Decisions all made for transference of ideas to physical expression (i. e) writing.Performance:-Action taken in the form of action writing.

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Structure or Element of an advertising copy?

The attainment of advertising objectives largely depends on the way the advertising copy is designed. The advertising copy should be designed in such away that it is in apposition to attract the attention of the prospects.Headlines: - The most important element (or) component of an advertising copy is its headlines. The headlines come first. If the headlines fail to attract the prospect to the message and the product, the remaining parts of the advertisement are wasted. Thus the main purpose of the headlines is to attract attention, arouse curiosity (or) interest and thereby induce further reading. It should be as short as possible and pleasantly worded so as to appeal to any of the instincts. A perfectly worded headline can create the required excitement, a sensational scene most appealing to prospect. Each headlines must relate clearly and specifically to the intended audience and to rest of the advertisement, high lighting the product features. Some example of popular headlines are in below:-

How women over 35Can look younger [PONDS CREAM]

(2) Sub-headlines:If the headlines have already rightly suggested the product value to the customers, the job of the sub

headlines becomes easier. These carry the reader’s interest a step further. These help the reader to simplify the headlines idea purpose are:-

These gain attention and interest of the readers.These direct the interest of the customer to important points.

(3) Illustrations (or) Pictures:These consist of Photographs, charts, paintings, drawings graphs and other pictorial devices. The

object of using illustration (or) pictures in an advertising copy is to attract the attention as well as to secure the interest of the reader.

Illustration is the best and more effective way of communication of ideas at a glance. They make the advertising copy more attractive, interesting and make the appeal powerful and there by more effective.

(4) Slogans:A slogan is a very simple and equally effective word (or) a group of words regularly used by

advertiser to impress up on the readers a basic idea about the product and the producer. To be effective, a slogan should be simple, short and rhythmic enough to be catchy. It is the most popular method to attract and hold attention of the reader.

(5) Body (or) Text:In the body of the advertising copy, both emotional and rational reasons are put forward to persuade

consumers to buy a particular brand. Facts and figures about the product, it stets, results, guarantees of satisfactory. Performance, testimonials and a reference light of customers patronizing the product, all these are given in the body of the advertising copy, depending up on the nature of the product, the market and extent of competition etc

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TESTING VALIDITY AND RELIABILITY OF ADVERTISEMENTS

Discuss - testing validity and reliability of advertisements.Advertisement is subjected to more testing and reliability of advertisements. This is because, a lot of money is being spent in preparing the advertisement, but its effect is not obvious. There are several ways of measuring the effectiveness of advertisement. There are companies which give a number of reasons for not measuring the effectiveness of advertisement. Cost, research problem and disagreement on what to test are the reason for this. There are three ways of testing (a) Pre-testing (b) Pilot testing in the market and (c) Post testing. There are factors such as celebrity, message, media, and timing to be taken into consideration for measuring advertising effectiveness.

Methods adopted in pre-testing are Consumer Jury method, portfolio test. There are copy test based on psychological response such as galvanic skin response, pupil dilation response, eye movement tracking. Post –testing of advertisement includes enquiry test and sales effect test. Also tests based on respondent’s memory. They are called recognition and recall test. In recall, we can have aided / unaided recall.

Media research is an important aspect, since the advertiser has to choose the most efficient media. To decide which media to be used and the time of exposure, whether regional or national channel calls for media research.

MEASURING IMPACT OF ADVERTISEMENTS

What is advertising effectiveness?

Advertising effectiveness is an important aspect of communication. Issue raised in effectiveness are – a) reach, b) coverage c) ability to motivate the customer to buy products and d) relationship with sales. How much the advertisement is able to achieve the above purpose is referred to as effectiveness of advertising.

What are the reasons for measuring impact of advertisements?

Avoid costly mistakes: Companies spend huge amount of money on advertising and certainly would like to know whether the money spent on advertising is effective or not. Suppose, if that ad does not create any effect, then it would turn out to be a costly mistake. In order to avoid such hiccups, the companies would prefer to check the effectiveness periodically.

Evaluating alternative strategies: A company has a number of strategies under consideration. Eg. There may be some question as to which medium should be used or whether one message is more effective than the other. Therefore, companies often test alternative versions of ad in different cities and different media to determine which ad communication is most effective.

To increase the efficiency of advertising: A famous proverb goes as follows: “Can’t go to forest to look at the trees” Similarly, sometimes, the advertiser loses sight of, “what he is seeking” or “what he wants to convey”. Advertiser may sometimes use technical puzzle (Eg. SMILE).

What are the reasons not to measuring impact of advertisements? Cost Research problem Disagreement on what to test

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LAYOUT

What is layout?Meaning: Layout is nothing but arrangement of various elements within an advertisement. How these elements are conceived is known as visualization. Once the artist conceives, he decides to put up the ad either at the top, or middle or bottom and decides whether it should be large or small. Visualization gives crystallization of thought and layout results in drawing of that thought on paper. Visualization and layout put together constitutes an ad. Visualization comes first and them the layout.

Layout has many purposes to serve:

1. Attract the reader2. Clear message delivery to the target audience3. Provide logical starting and end points4. Draw favorable reaction from the reader.

Layout provides value to the advertisement. Layout may turn out to be good or bad. If good, the perception of the reader is that the product and the company are good. If bad, the perception is that the product/service is of poor quality.

Mention some laws to create an effective layout.

1. Law of unity: This refers to how a visualiser puts all the various elements of the ad together.2. Law of contrast: Contrast makes an ad to standout and it will draw the attention of the reader.3. Law of movement: Movement is the principle that cause the reader to read the materials in the

desired sequence.4. Law of rhythm: It is a repetition of various elements.5. Law of Emphasis: This can be achieved by placing the most important element at the optical centre.6. Law of simplicity: Simplicity promotes clarity.

How to prepare a Layout?

A layout go through several stages before it is finalized, the designer uses thumbnails sketch followed by a rough layout. This is followed by finished layout comprehensive. This is to establish the ad look and feel. In the next stage, the designer works with artist to prepare mechanical, which is the final phase incorporating the visuals. The entire process may be compared to a traffic movement oon the street, one following the other.

1. Thumbnail sketch2. Rough layout3. Semi-compos stage layout4. Comprehensive stage5. Mechanical stage6. Alignment7. Management of white space8. Use of contrast to distinguish9. Balancing of visual weight10. Simplification

What are the different types of layout?

1. Conventional layout: This is a standard layout where in 70% to 80% of the space is allotted to illustration. Headline and body copy is arranged below. Alternatively the headline and copy could be superimposed over the picture background. Message in this type of layouts are usually straight forward.

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2. All type layouts: This type of layout contains no pictorial material. It is used to communicate large amount of detailed information. When a shop is doing clearance sales of hundereds of items, often run ads with a sales headline. Most of them carry discount.

3. Poster layout: A large visual covers all the ad and no message in it. (Eg. Clothing, furniture)4. Comic strip layout: This is an arrangement of pictures and captions, using a humorous approach.

This is difficult to execute.

Explain the various importance of Layout in visual communication.

1. Attracting attention2. Communicating a relevant idea quickly and effectively3. Interest the audience in the headlines and copy4. Make the message believable.

DESIGN APPEAL

Examine the various advertising appeals and execution styles.

The appeal of an advertisement refers to the approach used to attract the attention of television and radio audiences. Appeals tend to grouped into either rational / informationtional appeals or emotional appeals depending on the message being sent and the approach needed to gain the attention of the audience.Rational appeals tend to focus on the practical, functional or utilitarian aspects of the product or service. This appeal also used sports but only if there is a serious message to be sent: e.g. ‘Don’t use performance enhancing drugs in sport!’ Many advertisements use a combination of the two appeals to gain consumer attention, particularly where serious need to be communicated.Emotional appeals on the other hand focus on the social or psychological needs for purchasing a product or service and tend to use feelings or psychological states in their approach. Most sports related advertisements used this appeal because sport is such an emotional product. Feelings such as joy, nostalgia, excitement, fear, pride, sorrow, grief, arousal, anger, belonging and status can all be relevant in the sporting arena.Advertising execution refers to the way an advertising appeal is presented. How yoy say the message can in some case become as important as what you are trying to say. Generally there are a number of ways that advertising message can be presented or executed and some of these are shown below.

END OF UNIT III

UNIT IV

INTRODUCTION TO SALES PROMOTION

CONCEPT, DEFINITION AND OBJECTIVES:

CONCEPT

Sales promotion is primarily designed to motivate people to act by offering incentives.

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DEFINITION

American Marketing Association (AMA) offered this definition of sales promotion:“Media and nonmedia marketing pressure applied for a predetermined, limited period of time in order to stimulate trial and impulse purchases, increase consumer demand, or improve product quality.”

The council of Sales Promotion Agencies offered a somewhat broader definition: “Sales promotion is a marketing discipline that utilizes a variety of incentive techniques to structure sales-related programs targeted to consumers, trade, and/ or sales levels that generate a specific, measurable action or response for a product or service.”

What is sales promotion? State the objectives of sales promotion.

Sales promotion is a collection of demand-stimulating tools, mainly short-term, designed to produce quicker sales of the product/ services of the company, supplement advertising, and facilitate personal selling. Examples of sales promotion tools can be samples, discount coupons, price cuts, contests, prizes and so on.

OBJECTIVES

What are the objectives of sales promotion?Following can be the specific objectives of a sales promotion program:

(1) To induce trial for a new productMany companies distribute free coupons, which can be redeemed with the free sample of the product

at a retailer’s shop. This induces trial for a new product. (2) Brand Switching

A consumer may be buying a particular brand. A competitor can offer heavy discounts or attractive schemes to disrupt the existing buying habits of the consumer, and to switch over to his brand. (3) Attracting new customers

The size of target market may be increased, and new customers may be attracted with the help of sales promotions. (4) To counter competition

A sales promotion program by a company may be introduced just to counter the competitor’s promotional activity.(5) To induce more purchasing

A bigger pack of a product may be introduced at a promotional price to induce more purchases by the customers. (6) To induce impulse buying

On seeing an attractive scheme with a product on the retailer’s shelf, many consumers take an impulsive decision to purchase. (7) To push goods among the trade channels

The trade promotions like extra incentives, free schemes, display schemes are introduced to push the goods among the trade channels.

Discuss the importance of sales promotion.

Importance of sales promotion:

(1) Brand ProliferationAs companies are increasingly using brand to identify a product from competing products the

number of brands has increased tremendously. Brands become less distinctive and product features cannot

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be advertised very effectively. Companies adopt sales promotion to ensure their share of the limited shelf space with the retailers. (2) Trade Pressures

There is now greater pressure on manufacturers to provide support and allowance due to the growth of super markets, chain stores and other forms of retailing. Many firms now use sales promotion to assist retailers and thereby secure their cooperation. (3) Growing Competition

When one manufacturer adopts aggressive promotional strategy to create a brand image, the sales of other manufacturers are affected. In order to maintain their sales, other manufacturers also start sales promotion activities leading to virtually a ‘promotion war’. (4) Recession

During a recession, consumers can be persuaded to buy through rebates, bonus offers and other sales promotion activities. Therefore, manufacturers make use of these activities. Therefore, manufacturers make use of these activities to reduce inventory and to improve cash position. (5) Quick Returns

Sales promotion activities are launched quickly and yield faster results. These activities also motivate the over burdened and lethargic sales force. Therefore, there is widespread use of sales promotion schemes. (6) Competent Staff

Due to specialization, new staff positions have been created in several companies. Executives with specialized qualifications have greater faith in modern techniques of sales promotion. (7) Change In Attitudes

Earlier senior managements were of the view that sales promotion spoiled the image of their brand. But the success of competitors in sales promotion have made sales promotion more acceptable to such managements.

DIRECT MARKETING AND INTERACTING MARKETING

What is Direct Marketing? State the factors promoting the attractiveness of direct marketing. DIRECT MARKETING

It is the use of consumer-direct (CD) Channels to reach and deliver goods and services to customers without using marketing middlemen.

They often seek a measurable response, typically a customer order, through direct-order marketing. Today, many direct marketers build long-term relationships with customers. They send birthday

cards, information materials, or small premiums. Airlines, hotels and other businesses build strong customer relationships through frequency reward programs and club programs.

A number of factors are promoting the attractiveness of direct marketing. The main factors are: Availability of consumer credit cards. Availability or professional agencies. Competitive Pressures, Rising Media Costs, and Market Fragmentation. Increasing Family Incomes, including dual-income families. Technological advances.

What are the advantages of direct marketing?

Advantages Of Direct Marketing Direct marketing offers the advantage of reaching large number of well-defined target

customers and almost eliminates waste coverage. Good quality databases are available from independent suppliers and the marketer can

segment customer groups with considerable precision. Direct marketer can personalize the message. Direct marketing can deliver almost perfect offers to customers. Marketer can build desired frequency level based on media. Direct marketer can quickly develop a list of specific profiles for direct mail. Direct marketing is more effective in building customer relationship.

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It is very cost effective considering the sale generated per contact. The result can be measured most accurately.

What is interactive marketing? State its advantages and disadvantages.

Interactive MarketingThe newest channels for communicating and selling directly to customers are electronic. The Internet

provides marketers and consumers with opportunities for much greater interaction and individualization. Few marketing programs are considered complete without some type of prominent online component.

ADVANTAGES AND DISADVANTAGES OF INTERACTIVE MARKETING

AdvantagesInteractive marketing offers unique benefits. Companies can send tailored messages that engage

consumers by reflecting their special interests and behaviour. The internet is highly accountable and its effects can be easily traced.

Online, advertisers can gauge response instantaneously by noting how many unique visitors or “UVs’ click on a page or ad, how long they spend with it, where they go afterwards, and so on.

The Web offers the advantage of contextual placement and buying ads on sites that are related to the marketer’s offerings. Marketers can also place advertising based on keywords from search engines, to reach people when they have actually started the buying process. Light consumers of other media, especially television, can be reached online. The Web is especially effective at reaching people during the day. Young, high-income, high education customers’ total online media consumption exceeds that of TV. Maruti Suzuki India Limited, the largest manufacturer of cars in India, launched a program called “Dil Se”, meaning ‘from the heart’, targeted at Indians living abroad to facilitate their gifting a car to their close relatives and friends in India.Disadvantages Using the Web also has disadvantages. Consumers can effectively screen out most messages. Marketers may think their ads are more effective than they are if bogus clicks are generated by softwared-powered websites. Advertisers lose some control over what consumers will do with their online messages and activity. Consumers could place a video in undesirable or unseemly places.

Different people have different attitudes and experiences with the web. Hence the company has to decide whether it can implement direct marketing or indirect marketing.

PUBLICITYWhat is publicity? Explain its advantages. PUBLICITY

Publicity is any communication about an organization, its products or policies through the media that is not paid by the organization.

Publicity can be in the form of a news story appearing in media or an endorsement provided by an individual either informally or in a speech or interview.

Publilcity is a special form of public relations.

Publicity has the following advantages. (1) It costs less than advertising as there are no media costs involved, no media time constraints, and no

other related costs. It’s a win-win situation for both media and the company. Media gets the news story and company gets the public attention.

(2) There is no problem such as advertising clutter. As publicity is usually presented as a news material, it gets greater viewership.

(3) The credibility of publicity is more in the public’s mind as compared to advertising because the news is carried by an independent entity not perceivably paid by the company.

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Define Public Relations. Discuss about managing public relations.

Public RelationsInstitute of Public Relations, UK defines Public Relations as follows:

“Public Relations practice is the deliberate, planned and sustained effort to establish and maintain mutual understanding between an organization at its public.”

Well planned public relations offer some advantages that include: Can be very effective in new product launch. It is a highly targeted way of reaching the desired audience. It is far more cost effective than advertising. It get endorsements from independent, objective third party having no association with the produt or

company. It is viewed as highly credible. It breaks through advertising clutter. It supports advertising campaigns. It by passes consumer resistance to company sales efforts. It helps image building. It can generate immediate inquiries about new products. The disadvantages include:

It has no control over media. There is no guarantee of media time or space. Lacks standard effectiveness measures.

MANAGING PUBLIC RELATIONSCoporations exist in communities. They are very concerned about public attitudes towards them.

Negative attitudes tarnish the company image, adversely affect sales and employee morale and no company wants to be viewd as socially unacceptable. Many organizations and independent research firms conduct surveys to assess public attitudes. Findings can furnish important inputs to determine MPR objectives and develop targeted programmes.

Scott M. Cutlip, Allen H.Center, and Glenn M. Broom recommend four steps for planning a public relations programme:

(1) Identify and define public relations problem,(2) Develop a plan and programme, (3) Implement the programme, (4) Evaluate the programme effectiveness. Many firms have internal public relations officer or department. Other companies hire independent outside professional PR agencies to handle specific projects or all public relations functions. The first step is to determine the target audience because the objectives could be totally different for each different public segment. The target audiences may be internal or external.

INTERNAL AUDIENCESThey are employees of the company, company shareholders, and unions. All these groups have their

stakes in the company and are also referred as internal stakeholders. Employees in different locations, unions and shareholders should receive relevant information regularly about company activities.

Internal Audiences Extermal Audiences

EmployeeUnionsShareholders

Channel Members Customers MediaFinancial InstitutionsSpecial-Interest groupsGovernmentLocal Community

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External audiences include channel members and other important groups. Customers may be strongly influenced positively or negatively by promotional campaigns or publicity. Channel members can directly affect a company’s operations and mass media promotions, and company sales people maintain relevant information flow. Media may or may not report publicity, and great care should be taken to release interesting information to print and audiovisual media. Financial institutions lend money and are interested, in financial well being of the company and also the goodwill company can generate. Lastly, government, special interest groups, and communities help a watch than concerns environmental pollution, harassment of women employees, or any other unfair treatment of employees.

SCOPE AND ROLE OF SALE PROMOTION

Explain the scope and role of sales promotion.

Role of Sales Promotion To communicate with individuals, groups or organizations to directly or indirectly facilitate

exchanges by informing and persuading one or more audiences to accept an organization’s products. Companies must communicate with their customers; this communication should not be left to

chance.Design communication to your specific target audience:

o Target Marketo Part of Target marketo Different stakeholders of your organization

Scope of sales promotion 323 billion coupons were distributed 1993 nationally annually (3,200/household), only 2.3% are

redeemed. 9000 trade shows containing 10 exhibits or more/year. New York auto show attracts more than a

million people per year. Companies are looking to get a competitive edge. Quick returns are possible for short term profits More consumer are looking for promotions before purchase Channel members putting pressure on mf. For promotions Advance in tech. make sp easier (i.e. coupon redemption) Increase in sales by providing extra incentive to purchase. May focus on resellers (push), consumers

(pull) or both. Objectives must be consistent with promotional objectives and overall company objectives. Balance between short term sales increase and long term need for desired reputation and brand

image. Attract customer traffic and maintain brand / company loyalty. Reminder functions-calendars, T-Shirts, match books etc. Impulse purchase increased by displays Contests generate excitement esp. with high payoffs.

SALES PROMOTION TECHNIQUES

Define promotion and sales promotion techniques. Promotion involves disseminating information about a product, product line, brand, or company. It

is one of the four key aspects of the marketing mix. Sales promotion is any initiative undertaken by an organization to promote an increase in sales,

usage or trial of a product or service (i.e.initiatives that ate not covered by the other elements promotions are varied. Often they are original and creative, and hence a comprehensive list of all available techniques is virtually impossible (since orginal sales promotions are launched daily!).

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Give the nature of sales promotion

Encompasses all promotional activities and materials other than personal selling , advertising and publicity.

Grown dramatically in the last ten year due to short term focus on profits. Funds are usually earmarked for advertising are transferred to sales promotion.

Explain the need for sales promotion activities.

Need For Sales Promotion Activities

To introduce a new product in the market. To influence the public with the help of new uses of the product. To increase the frequency of purchase by each buyer. To encourage dealers to stock more goods. To withstand in the competitive field. It helps to increase sales in a competitive market and thus, increase profits; It stabilizes sales volume by keeping its customers with them.

TRADE ORIENTED AND CONSUMER ORIENTED

Explain trade oriented and consumer oriented in sales promotion.

Sales promotion uses various incentives to motivate the consumers, traders and business buyers. A great deal of money has to spend on promotion to meet the sales target. Sales promotion directed towards consumer may be done with several goals in mind. It can be to stimulate trial or repeat purchase etc. several incentives include coupons, discount, price off etc. sometimes, contest and sweepstakes are beign offered. These are excellent motivators. Sales promotion directed towards trade has sole objective of improving the sale of the product. Point of purchase is an excellent tool in retail-setting. Co-operative advertising programmes are devices to get retail support. In business-to-business marketing, several promotions are adopted. Among them, the trade show is most popular.

There are many risks involved in sales promotion. It is quite possible that by offering incentives, future sales are borrowed. A second risk is that no sooner the promotional offer is withdrawn, the customer might drop the brand. Sometimes, there may be a perception that quality is poor, product is slow moving, which affect the drive for promotion. Thirdly, sales promotions are expensive. Therefore sales promotion should be done on a selective basis.

Compare and contrast conventional and non-conventional sales promotion tools.

Consumer-oriented Trade-oriented

Catalogues Samples Coupons Contests / Sweep Demonstration at different places Discounts Bonus packs –Bigger quantity Price – off – 25% Event sponsorship – Pepsi, Coca Cola

sponsoring cricket matches.

Dealer incentive Volume discount – Buying allowance Training programme to dealers Trade show Road show Exhibition Best display award and reward Trips abroad Free gift Slotting allowance

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Easy installment scheme Exchange offers – Exchange old for new

Tools and Techniques Non-conventional

Nowadays, most of the companies use non-conventional tools that are very innovative and induce the target group.

Game show: Eg. “Family fortune’, ‘Khul jaa sim sim’ Quiz programme: Sponsored by companies – Milka biscuits. Surprise visit by celebrities to consumer’s house (Eg.”Pepsi uses actor “Madhavan”). Domestic tour: Sun TV conduct promotional effort every year during summer in collaboration with

bond’s “3 Roses Tea Powder” Foreign trips: This type of promotion is conducted by “Maruti, Hyundai” automobile

manufacturers. Surprise gifts to existing customers: Eg. Passport scheme by “Hero Honda”

Explain Pull and Push Strategy.

Pull strategy is a direct interaction between the company and the customer these include. Consumer promotion such as rebates, contests, sweepstakes. In this case consumer demand to “Pull” the product from the channels, subjects him/her to demand the product from retailer. This in turn makes the retailer place the order on the manufacturer.

Manufacturer Resorting to Pull Strategy:1. When there is a product differentiation or2. When the brand loyalty is high

Push strategy involves going through the retailers. Here, the manufacturer has to depend heavily on the initiative and skill of the intermediary. The retailer may be required to offer discounts or demonstrate appropriate.

Manufacturer Resorting to Push Strategy 1. When the brand loyalty is low or2. When many alternatives are available in the market or3. When the product is new or4. If the purchase depends on shelf or stores display or5. The consumer is aware of the product.

UNIT IV

SALES PROMOTION CAMPAIGN

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REQUIREMENT IDENTIFICATION:

Sales promotion campaign are complicated in that it may be necessary to evaluate both trade and consumer promotions. Marketers are finding that promotions are most effective when they catch consumers’ interest. They are also finding that the best way to listen to consumers may be through qualitative tests. By using focus groups and in-depth interviews, for example, researchers can identify the level of interest the target market has for certain sports and events and analyze how that interest might work in a future brand promotion.

Explain the principles that drive the use of sales promotion and discuss why advertisers are spending increasing sums of money on sales promotion campaign.

Sales promotion campaign offers an “extra incentive” to take action. It gives the product or service additional value and motivates people to respond. Sales promotion is growing rapidly for many reasons. It offers the manager short-term bottom-line results; it’s accountable; it is less expensive than advertising; it speaks to the current needs of the consumer to receive more value from products; and it responds to marketplace changes.

DESIGNING OF SALES PROMOTION CAMPAIGN:

Explain design of sales promotion campaign.

In the design of sales promotion campaign is preparing a proposal stating how the campaign will be evaluated. Evaluation is the final and, in some respects, the most important step in an advertising campaign because it determines whether the campaign effort was effective.A campaign evolution will assess the campaign’s performance in terms of its message and media objectives. It employs either internal performance data or result form an outside research organization that monitors brand performance.The reason why advertisers run campaigns rather than one-shot ads. Synergy is difficult to evaluate, so usually it is done in terms of the overall brand position and brand perception. In othr words, has the image become stronger on critical dimensions of the image, such as personality and positioning cues, because of the campaign design.

INVOLVEMENT OF SALESMEN AND DEALERS

How will you select the specific sales promotion tools? Explain.

Selecting the specific sales promotion tools for trade promotion:

The various tools for trade promotion can be (1) Special Discounts on Price List

A Special discount is offered on the usual price to the distribution for a limited period to encourage more sales. (2) Allowances

An allowance is an amount offered in return for the retailers agreeing to feature the manufacturer’s products in some way. (3) Dealer Contests

Selected dealers are offered free trips, free gifts and so on depending upon the sales targets they achieve. (4) Free Schemes

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Distributors and retailers are offered free schemes with purchases to promote sales. The common trade language is 4+1, 5+1 and so on, which means that on purchasing four units of a particular product, one unit will be supplied free of cost.

Tools for consumer promotion

The various tools for consumer promotions can be(1) Free Samples

The companies offer a free sample, so that consumers can use the product and feel the benefits. (2) Cash Rebates

Cash rebates are often beneficial in the short run only. If carried on a long-term basis, the reduced price will be perceived as the actual price of the product by the customers, and the manufacturer may never be able to increase the price to the actual level. (3) Discount Coupons

These are certificates entitling the bearer to a stated saving on the purchase of a specific product. (4) Free Gifts

A lot of companies offer free gifts along with their products to promote sales. (5) Promotional Packs

A company can create a special promotional pack of two related products at less than the actual M.R.P. of both. For example, a shaving cream with M.R.P. Rs. 35 can be combined with a razor with Rs. 15 to create a promotional pack. (6) Prizes

A marketer may offer prizes to the consumers in the form of lucky draws, contests, scratch coupons, submission of jingles and so on. (7) Loyalty Rewards

Many companies reward their loyal customers in the form of loyalty points which can be redeemed with gifts or discounts. For eg:- An Airline offering a free ticket to a person traveling more than 10 times in a year to different destinations. (8) Point Of Purchase Displays

Many companies create attractive point of purchase displays, fix posters and danglers at retail points to increase their visibility while a customer in purchasing a product. (9) Product Warranties

This is an important tools for technical and high value products. However, since the competitors generally match on the duration of the warranty, the quality of services is often the deciding factor. (10) Low Interest Rates

Companies offer 0% interest or low interest rates to give easy credit and payment options to the customers. With the availability of easy finance, the relative sales of automobiles and consumer durables have shown a steep increase.

PERSONAL SELLING

Define Personal Selling. What are the types of Personal Selling. According to American Marketing Association, ‘salesmanship’ (Personal Selling) is the process of

inducing and assisting a prospective buyer to buy a commodity or service or to act favourably upon an idea that has commercial significance to the seller.”Types of Personal Selling(1) Industrial Selling

This is the selling process followed to satisfy the industrial customers and big organizatios including the government establishments. (2) Retail Selling

This is the front-door sales process that a customer encounters when he visits a retail store. (3) Service Selling

This is the selling process where the sales people sell services to customers.

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Discuss the nature of Personal Selling.

Nature of Personal SellingSome important aspects of personal selling are

(1) It enhances customer’s confidence in the seller(2) It promotes long-term business relations through personal intimacy(3) It provides a human touch to business transactions (4) It helps facilitate the seller to understand each customer’s needs and preferences more clearly(5) It helps to satisfy a customer by modifying the product as per the customer’s choice and

preference(6) Personal Selling followed by a personal service helps build long-term relations between the

business and the customer(7) It helps keep up with the competition in the market based on product customization as per

customer’s preference(8) It is a powerful and effective tool for convincing the customer about the product(9) Through personal selling the time lag between introducing a product through the media and

actually selling it is reduced(10) It provides prospective customers with a better understanding of the product and an interactive

opportunity to liaise with the sales personnel.

Describe the personal selling process.

Personal Selling Process

The following are the steps in personal selling

PROSPECTING

It is the process of identifying prospective buyers of the product Prospects-Those who have a need or will to buy and the power to pay They may be individuals or institutions Identifying the prospects and discovering newer customer needs and preferences is a part of

prospectingDIFFERENT WAYS TO IDENTIFY PROSPECTS

(i) Aquaintance References (References by satisfied customers)(ii) Cold Calling (Call without reference)(iii) Centre of Influence Method (References for prospects from eminent people of society)(iv) Personal Observation Method(v) Direct Mail or Telephone Method(vi) Company’s Records(vii) Newspapers(viii) Retailers(ix) Other Methods- Junior Sales Force; Trade Fairs and exhibitions

PRE-APPROACH

PREAPPROACH APPROACHPROSPECTING

HANDLING OBJECTIVES

PRESENTATION AND DEMONSTRATION

CLOSING

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It is the second step in the selling process Salesman should know the propect’s likes and dislikes, his needs, preferences, habits, nature etc. Salesman has necessary tools to plan his visit with the prospect This kind of preparation to meet the prospect is called pre-approach Grading the prospects is an important step

APPROACHING The prospect and the salesman come in contact with each other face to face Salesman has an opportunity to understand and interact with the prospect in a better way The salesman must make best use of this opportunity in getting the attention of the prospect and to

convince him to buy the productPRESENTATION AND DEMONSTRATION

A good presentation is important as a good product A good presentation can be in the form of attractive packaging and display A good presentation also includes the interior decoration of the shop and appearance of the article

DEMONSTRATION It is an exercise to prove the characteristics of the product It highlights various attributes of the product such as utility, performance, service and quality During the demonstration the customer gets an opportunity to verify the facts about the product

THE CLOSE It is the last stage of any sales presentation It is the most crucial stage for a salesman The main aim of the close is to convince the prospect to sign the order form or place an order

immediately rather than in the future The salesman should be alert He must use his judgement to spot an opportunity when he is in a position to close the sale It is important that through proper planning, prospecting, presentation and demonstration the

salesman should try to capture the attention of the prospect and not let the prospect change his mind Salesman should be attentive, has an open mind has the ability to listen patiently to his prospect,

faces every objection with a smile on his face and confidentially answering any queries of the prospect

OUT SOURCING SALES PROMOTION

Why sales promotion is out sourced? Identification of strengths and weakness amongst your sales team, whatever the size, ensuring you

are maximizing return for your spend. Shorten sales cycles, thus increasing revenue and cash flow. Optimize the time the sales team spend on given opportunities, so that they can spend more time

closing profitable opportunities. Outsourcing gives a business the flexibility to change third-party vendors whenever necessary. This

process is not as time consuming as the normal employee hiring process, because they are not screening individuals, they are considering established companies with proven track records.

What are the advantage and disadvantages in outsourcing the sales promotion?

ADVANTAGES: Identification of strengths and weakness amongst your sales team, whatever the size, ensuring you

are maximizing return for your spend. Shorten sales cycles, thus increasing revenue and cash flow. Optimize the time the sales team spend on given opportunities, so that they can spend more time

closing profitable opportunities. Accurate information, based on sales both won and lost, which ca be used by product planning and

service teams.

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Ongoing coaching and training based on your real opportunities, which makes your team the envy of the industry, and thus enables the firm to attract the best.

Identification of a team member who can take over the role of sales manager, so that he promote form within, which is fantastic for morale and motivation.

Outsourcing gives a business the flexibility to change third-party vendors whenever necessary. This process is not as time consuming as the normal employee hiring process, because they are not screening individuals, they are considering established companies with proven track records.

Whether a business chooses to outsources on a temporary basis or permanently, the advantages are well worth the decision to do so. Most business, which set outsource temporarily end up making an ongoing commitment.

Disadvantages in outsourcing the sales promotion: One of the biggest disadvantages of outsourcing is undesirable results. This is especially true when a

company hires a third-party vendor to mass produce a product. In the event that the finished products do not meet quality standars, the must be repeated by a different vendor.

Not only is this a waste of time and materials, it can also be very costly for the company who outsourced the project. They are essentially paying twice for the same job. In addition there is always the possibility that the company may lose sales, during this same period because of the lack of available product.

INTEGRATED PROMOTION

Summarize the types and purposes of integrated promotion.Advertising and promotion both contribute to the effectiveness of a marketing communication plan, primarily because they do different things and have different objectives. In a effective plan, the two work together, along with other marketing communication tools, to accomplish the overall marketing communication objectives.The major difference between advertising and sales promotion concern their methods of appeal and the value they add to the sale of the product or service. Advertising is primarily used to create a brand image and high levels of brand awareness over time; promotions are primarily used to create immediate action. To accomplish this immediate goal, sales promotion may rely heavily on rational appeals, such as price deals. In contrast, advertising often relies on emotional appeals to promote the product image. In other words, advertising tends to add intangible value brand personality and image – to the good or service and contribute greatly to the profitability of the brand.

Some of the objectives that advertising and promotion share include increasing the number of customers and increasing the use of the product by current customers. Both objectives attempt to change audience perceptions about the product or service, and both attempt to make people do something. Of course, advertisers accomplish this task in different ways. In most cases, advertising is needed to support promotions. Price deals, for example, are advertised as a way to build tragic in a store. Contests, sweepstakes, and special events won’t work if no one knows about them.Another area needing cooperation and integration is the use of direct marketing to announce a promotion.

COORDINATION WITHIN THE VARIOUS PROMOTION TECHNIQUES

Mention various promotion techniques and coordination.

The various promotion techniques to be coordinated with some areas stated below.

Textile outlet Retail outlet Demonstration Premiums Build Awareness

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Create Interest Provide information Stimulate demand Reinforce the Brand.

ONLINE SALES PROMOTIONS

Discuss the IMC aspect of co-ordination a web activity with other promotional activities.

Internet and IMC:

Personal selling through internetNet advertising can be used to support the sales force effort. Personal selling being very expensive, use of web to increase sales can go a long way in cutting the cost. This is especially true of business-to-business. Web provides two distinct advantages over personal selling – (a) Lower cost and (b) better reach. Web provides repository of information to the customer about company’s product and services. The company in turn gets useful leads, which a sales force can follow. In case, the product to be bought needs to be tried by the customer, the net can provide the sample. If the customer is satisfied with the sample, the customer can ask the salesman to visit for more details. This way both time and costs are saved. Net also helps the company to maintain relationship with its customers.

Public Relations through NETNot many companies use net for Public relation. However, it can be used to carry on public relation activities such as providing information about the company, its contributing to society, social work undertaken, annual reports, future plans etc. the company can maintain good relationship with media. In case of non profit organization, fund raising for a social cause could be done through the net. For example CRY uses net to raise funds from the public for underprivileged children (Exhibit 18.5), www.giveindia.org also raise funds through the net on behalf of 100 NGO’s

Direct Marketing through NETNet can be used to target specific group customer by message specially meant to the target group. Musical cassettes, books, magazine, health care equipment property sale are some of the products where net can be used effectively.

Sales promotion through netNet can be used for sales promotion. It may offer different types of incentives to promote the product, contest, sweep stakes, discount, rebate, coupons etc. These are different forms of promotions that can be offered. For example. www.ebay.in, www.yahoo.com, www.yahoo.co.in etc. are few companies that offer various products and services on discounts and other benefits.

Briefly explain the challenges online sales promotion.

Overall there are four challenges for online sales promotion activities that they are supposed to meet and accomplish. Firstly online sales promotion activities are required to generated awareness about not only their own

presence but also accentuate the importance of the brand, constantly emphasizing on the brand, the purchase of which would bring a host of other benefits for customers who but the brand.

Another challenge for online sales promotion that also scores a direct and tangible advantage for the marketer is the prospect of engaging the target market in purchase behavior.

The brand should be strong enough and should have enough qualities to motivate the consumer to buy it again once the sales promotion activities have succeeded in enabling the customers to buy the brand.

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The third challenge that online sales promotion activities face is the challenge of maintaining the market presence of the brand. This happens through the constant emergence of new sales promotion activities for short time periods that maintain the freshness of the brand.

Last but not the least, online sales promotion activities also have a commitment of reminding the target market constantly about the brand through their frequent reminders and their innovative presence that also enhance the demand of the brand.

END OF UNIT V

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