Master of Business Administration- MBA Semester 4 MK0016 Advertising management &sales promotion - 4 Credits (Book ID: B 1329) Assignment

t Set -1 (60 marks)

Name Course Roll No LC Name LC code

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KUMAR BHASKAR MBA- 4TH SEM 521106645 ZITE 01904

Q.1.Describe the types of Advertising copy. Answer: The primary job of advertising is to sell. If it is done with high literary skill and captivating visual beauty, that is great. But the trend now is to keep it as simple and brief as possible, making the offer or benefit as irresistible as possible, to rise above the clutter of competition. And that takes unusual ideas presented with fascinating treatment, or what the advertising industry calls THE IDEA. Types of Advertising copy are as follows: Consumer advertising: These are the prima donnas of advertising, the most visible, expensive, lavish, most frequently repeated in multiple media and the most entertaining of the genre, and naturally attracts the best of the professional creative talent. Since they have to be repeated endlessly to beat competition, the copy is designed to withstand the boredom of repetition. Corporate advertising: These ads do not try to sell the brands manufactured by the company, but build equity and image for the company itself. These are created when a company feels that it has reached a status when it is bigger than the sum total of its products. They talk about the integrity, quality consciousness, welfare programmes, social responsibility of the company, etc., and hope some of the prestige will rub off on its brands anyway. a) Advocacy advertising: Organizations use advertising to send a message intended to influence a targeted audience. In most cases there is an underlying benefit sought by an organization when they engage in advocacy advertising. b) Advertorial advertising: this is a tool to enhance the credibility of advertising copy. Consumers and readers alike have become very cynical about the hyperbole and intrusiveness associated with regular advertising and discounts it out of hand. c) Public service advertising: It is a corollary of corporate advertising and flourishes when economy does well. These are also released when a company can afford to talk about things other than its products. This genre gives information not ordinarily available to common man, such as where to find help or support group for

alcoholism, cancer or HIV, polio vaccination, basic health care, domestic violence, government funded services, addiction, educational information, etc. d) Financial advertising: a corporate ad that persuades an investor to trust the company, one ad to familiarize the reader or investor with the products and brands of the company, a financial ad that describes the offer, then an ad thanking the investors. Sometimes just one ad combines all of it. These are highly technical ads written by copywriters specializing in finance. e) Industrial advertising: These are not showy and glamorous, but occupy a huge amount of advertising space and budget. They sell all the capital goods, B-to-B and intermediary industrial products, maintenance and after care services, etc. Usually these are released in industrial journals and magazines. f) Specialty advertising: This is a form of sales promotion but designed by the advertising agency. A company can have its name and a slogan printed on glasses (for a manufacturer of alcoholic beverages) , caps, school bags, jackets, key chains, pens, etc. and works as a kind of brand extension. They are sometimes give-always and are designed to increase public awareness of the brand. g) Trade advertising: This type is strictly for selling within the trade and released only in trade magazines and newspapers. They are highly technical, brief, to the point, descriptive and no-nonsense business communication. h) Direct Mail (DM) advertising: This needs special kind of copywriting, since it contains many pieces such as a personalized letter and envelope, catalogues, flyers, response cards, all pulling together to sell the brand or service. i) Retail advertising: The explosion of consumerism in India has crystallized this type. Especially with fancy shopping malls even in small towns now, retail advertising requires specialized copy strategy. j) Cooperative advertising: In this, several parties with same brands or products share the advertising expense. It is an excellent tool for malls, busy shopping areas that sell similar products, cosmetics or garment brands. k) Recruitment advertising: India being a young and growing nation, recruitment ads are nearly as important as consumer ads. These are released in special pages of daily newspapers, in classified sections and online. l) Classifieds and personal advertising: This class has grown into a huge segment in itself. It can be anything from an ad for a lost cat to an obituary or birthday greeting, lost & found to situations vacant. Since these are released by small people, they have to be written very tightly and clearly to attract maximum response without being too telegraphic or expensive. m) Tender advertising: This is not exactly exciting copy, but an inalienable part of serving a client. These ads inform a companys suppliers about the goods and services it requires from time to time.

n) Notification and legal ads: This too is a bland but large category that must be released for information an individual or company may wish to communicate to the public, such as change of name, admission and recruitment notices, change of telephone numbers and addresses, intention to buy property, marriage announcements, legal termination of an employee, all the way down to employees absconding after embezzlement. o) Outdoor advertising: This covers a big area and includes everything from hoardings, posters, lit panels in railway stations and airports, side of buildings, lamp poles on the roadwell, anything Outside Of Home, called OOH. p) Reminder and Point-of Purchase (PoP) media: These are all the in-store pieces like danglers, tents, placemats in bars and restaurants, which just mention the brand name and colour scheme of the company. Nobody is reading in these situations, so copy is very brief, may be just a slogan.

Q.2. Discuss the Innovative use of media in rural areas. Answer: The means or channels of communication, especially technological ones; mass media include those aimed at a more widespread audience, typically providing information, news, entertainment, and persuasive messages. More commonly, the media refer to television, radio, newspapers, and magazines, andincreasingly interactive computer channels and portable personal devices such as cellular phones. Rural areas tend to be less well served by mass media, largely for economic reasons. Social influences of media appear to vary by the context. Q.3.Briefly discuss about Advertising Objectives. Answer: A company does not release entertaining television commercials or colourful press ads spending millions of rupees for some entertaining or artistic reasons. It approaches an advertising agency because it has an urgent need in hand, often a serious problem. An advertiser usually has one or several of the following objectives: Increase brand awareness: Sometimes even a brand selling well may have poor brand awareness, especially in FMCG products. The users may be habitual buyers with no great awareness of the distinctive features of the brand. The campaign may aim to sharpen brand awareness by creating a focused brand personality and keep reinforcing it over a period of time. Enhance brand image: Even a successful brand may come under severe pressure from either new brand competition or another old brand introducing new features. The campaign objective may be to strengthen the clients brand image as the brand stands now, by reminding the target all its relevant benefits. Introduce new features or improved version: In a competitive market, each producer is constantly working to incrementally improve his product just to stay ahead of competition and only then to serve his customers better. When a successful

new feature or a new version altogether of the brand is introduced, a major campaign is necessary. Increase sale: As mentioned earlier, advertising is only one component of the marketing mix and in itself cannot increase sale. But it does play a huge role. Therefore, the agency has to define clearly its role in this process. Increase profit: Increasing profit is different from increasing sale. Especially in FMCG products, the top line may keep growing due to many promotional activities and price wars, yet the bottom line can tank, due to thinning margins. The campaign may try to create better prestige or reliability for the brand, so that it will need less promotional expense and thus increase profit. Increase market share: Each brand in the same product class and price band sells only to some users and not others. For instance, in bath soap market, some use Pears and some use Mysore Sandal or Dove. Each creates and protects its share of the market. The objective of the campaign may be to increase the market share of Pears by persuading users of Dove to buy it. So Doves loss is Pears gain, reducing Doves market share for no failure on its part at all. Expand geographical market: Most products do well in one area of the country and not in others. South India drinks coffee, at least did until coffee prices shot up due to lucrative export. North and east India drink tea. With sustained and clever local advertising, coffee can be made more popular in the north, as indeed, Kolkata serves instant coffee as a sophisticated guest drink now. Create corporate image: Often a corporate campaign mentions the brands only in the passing, but focuses on the companys image. The idea is that a great company by definition is expected to make great products which one can trust. Damage control: A brand or manufacturer may get stuck with bad reputation, the reason of which may not be its fault or in its control. RAttract the best professionals: Big companies may need to create very seductive corporate images for themselves as employers to ensure that the most qualified and experienced in the profession would want to join their company as a matter of pride. Announcing new outlets: When a major product line is introduced in a new city or part of the country, huge launch campaigns are released to inform potential customers quickly about brand availability.
Q.4.Describethe ToolsandTechniquesof SalesPromotionin brief. Answer:

Tools and tecniques of Sales Promotion : To increase the sale of any product manufactures or producers adopt different measures like sample, gift, bonus, and many more. These are known as tools or techniques or methods of sales promotion. Let us know more about some of the commonly used tools of sales promotions. (i) Free samples: You might have received free samples of shampoo, washing

powder, coffee powder, etc. while purchasing various items from the market. Sometimes these free samples are also distributed by the shopkeeper even without purhasing any item from his shop. These are distributed to attract consumers to try out a new product and thereby create new customers. Some businessmen distribute samples among selected persons in order to popularize the product. For example, in the case of medicine free samples are distributed among physicians, in the case of textbooks, specimen copies are distributed among teachers. (ii) Premium or Bonus offer: A milk shaker along with Nescafe, mug with Bournvita, toothbrush with 500 grams of toothpaste, 30% extra in a pack of one kg. are the examples of premium or bonus given free with the purchase of a product. They are effective in inducing consumers to buy a particular product. This is also useful for encouraging and rewarding existing customers. (iii) Exchange schemes: It refers to offering exchange of old product for a new product at a price less than the original price of the product. This is useful for drawing attention to product improvement. 'Bring your old mixer-cum-juicer and exchange it for a new one just by paying Rs.500' or 'exchange your black and white television with a colour television' are various popular examples of exchange scheme. (iv) Price-off offer: Under this offer, products are sold at a price lower than the original price. 'Rs. 2 off on purchase of a lifebouy soap, Rs. 15 off on a pack of 250 grams of Taj Mahal tea, Rs. 1000 off on cooler' etc. are some of the common schemes. This type of scheme is designed to boost up sales in off-season and sometimes while introducing a new product in the market. (v) Coupons: Sometimes, coupons are issued by manufacturers either in the packet of a product or through an advertisement printed in the newspaper or magazine or through mail. These coupons can be presented to the retailer while buying the product. The holder of the coupon gets the product at a discount. For example, you might have come across coupons like, 'show this and get Rs. 15 off on purchase of 5 kg. of Annapurna Atta'. The reduced price under this scheme attracts the attention of the prospective customers towards new or improved products. (vi) Fairs and Exhibitions: Fairs and exhibitions may be organised at local, regional, national or international level to introduce new products, demonstrate the products and to explain special features and usefulness of the products. Goods are displayed and demonstrated and their sale is also conducted at a reasonable discount. 'International Trade Fair' in New Delhi at Pragati Maidan, which is held from 14th to 27th November every year, is a wellknown example of Fairs and Exhibitions as a tool of sales promotion. (vii) Trading stamps: In case of some specific products trading stamps are distributed among the customers according to the value of their purchase. The customers are required to collect these stamps of sufficient value within a particular period in order to avail of some benefits. This tool induces customers to buy that product more frequently to collect the stamps of required value. (viii) Scratch and win offer: To induce the customer to buy a particular product 'scratch and win' scheme is also offered. Under this scheme a customer scratch a specific marked area on the package of the product and gets the benefit according to the message written there. In this way customers may get some item free as mentioned on the marked area or may avail of price-off, or sometimes visit different places on special tour arranged by the manufacturers. (ix) Money Back offer : Under this scheme customers are given assurance that full value of the product will be returned to them if they are not satisfied after using the

product. This creates confidence among the customers with regard to the quality of the product. This technique is particularly useful while introducing new products in the market Q.5. What is a full service agency? What are specialist agencies? Why are they needed? Answer: This kind of agency provides all types of services in advertising and also non advertising field. The agencies provide everything that client does not have to approach anyone else. There are very few agencies of this kind. An advertising agency is only one component of todays bewilderingly complex marketing mix, which, like in any other concerted activity, must act together to achieve a rising sales curve. Until the late 20 th century, most good agencies were what were called full service agencies, meaning they offered almost all of the above services. These agencies offer very specialized services which include: Interpreting market research and gathering of necessary information Conceptualizing a campaign platform Executing the creative work which includes copywriting and visualising of the advertisements, photography and selecting appropriate vernacular languages Media planning, buying space and time Correctly scheduling releases in appropriate time and publication Printing publicity materials such as brochures, folders, specification sheets, operating manuals, catalogues, technical literature, banners, posters, hoarding flexes, etc. Creating and shooting television and cinema commercials Creating radio spots Using all other minor media and devising unconventional and innovative ones to meet clients specific needs. It is difficult to list everything that an advertising agency does for its clients, since it keeps changing to meet the rapidly shifting market needs today. Largely, an advertising agency meets its clients needs for conventional mass communication in print, radio and electronic media. Specialist agencies: Now communication is so complex, specialized and fragmented that advertising services also have become so. Now there are agencies which do only the creative work or filming of commercials, or the still photography, or outdoor advertising. Media space and time buying and selling is a multi-million rupee

business in itself, which in turn sells it back to smaller agencies who do not have the media clout to get good bargains and positions. Even full service advertising agencies themselves are specialized some do only FMCG products, or IT, technical, engineering, recruitment or tender advertising and carry a whole team of highly skilled and specialized professionals who are the tops in their business. It is a highly competitive world and considering the proliferation of products, services and explosion of media today, the specializations are necessary.

Q.6. Describe the Demographic influences on Advertising in brief. Answer: Like in every other area of life, advertising also has not only grown in leaps and bounds and hasbecome far more effective, in some ways it has changed its character altogether. The most important factor that directly or even indirectly influencing advertising is the demographic factors or the characteristics of the population. Even if combined with other factors such as social, political or environmental, they could be associated with demographic indicators like age, gender, family structure, migration of people, education levels, so on. Demographic segments and the obvious changes in them are easier to define and analyse. Lifestyle: India always had different lifestyles in different parts of the country, marked by language, food, religion, etc. But there was uniformity within that segment at least. Not anymore. Whole new lifestyles are in the market now, which cut across ethnic and local traditions. Urban Indias lifestyle is changing very fast. Young handsome rock star gurus like Vikas Malkani who runs a hep MTV style Soul Centre in New Delhi presenting Indian philosophy in easy to follow contemporary language to tarot card reader, the interests are very different. Spirituality, naturally grown food, vegetarianism, exercise, yoga, personalized counselling and psychotherapy, dynamic meditation, Tai chi, astral travel, healthy living all have huge following. What does it have to do with advertising? All the above as well as gyms, yoga and meditation classes, aerobic dancing, etc. are all ultimately products and services which have to be advertised and need careful promotion and niche marketing. Technology: India has an amazing capacity to adopt the latest technology available anywhere in the world. A country which did not have even television until late 1980s, today literally consumes the latest gadgets and gizmos with limitless appetite. In a 2007 survey carried out by Economic Times Dentsu on 3,000 correspondents across India, dependence on technology is clearly defined. Some 51% of urban Indians feel life will be difficult without a mobile, 93% feel life will be really tough without text messaging, 90% cannot do without television, and Internet dependency is universal. 32% in 18-25 years age group said life would be hard without the music and camera features on a mobile. But then, this was an online survey, so a biased one. Aggressive middle class:Indian middle class has become the object of keen observation for everybody from MNC consumer products to political campaign planners. Whole books and furious research projects are being written on this phenomenon. It is a grossly over rated class, in numbers, consumption volume and

desires. Rough estimate is that there are about 50 million families in India in middle class who really do buy branded products significantly. After all, a villager who buys a branded soap or cigarette occasionally is no different statistically than an upper middle class urban family who also buy those, among other things. Yet, individually the poor villagers consumption is insignificant, while the urban middle class consumer has a regular and rising purchase profile. Sharia compliant banking and stock market : Sharia, the laws for finance and commercial activities permitted to the believers of Islam, is mandatory for Muslims, who do not invest in alcohol; conventional banking that gives interest, insurance, entertainment, tobacco, pork, weapons, etc. India has the second largest Muslim population in the world, and Indian Sharia compliant market capitalization at 61% in 2007 is higher than in some Islamic countries like Malaysia, Pakistan and Bahrain. Sectors such as computer hardware and software, drugs and pharmaceuticals, automobiles and ancillaries are all Sharia compliant and constitute 36% of Sharia compliant stocks on NSE. Advertising abroad: As Indian companies go abroad and Indian products are sold all over the world more and more, advertising too has to adapt to that. The whole approach has to evolve to cater to more educated, sophisticated and subtle approach that will appeal to a different class of people. Long and tedious text, careless grammar and Indian English or Hinglish have to make room for concise and clear copy and indirect approach. Mall culture: Every technical, social or economic development in the west comes to India about ten years later, in fully developed form without going through the evolutionary stages and then goes through exactly the same life cycle. Mall culture is no different. When Indian economy was opened up, organized retailing and malls spread quite quickly across the country. As early as 2006, India had around 450 malls and not all of them in the metro cities. Now not only there are malls everywhere, with increasing disposable income mall crawling has become a youth culture and part of urban life. Enough parking place, childcare facilities or at least opportunity to leave children free safely, mouthwatering food courts, pleasant ambience make these shopping complexes a leisure destination for people with money and time, instead of parks, museums and public places. Open seven days a week, malls are now favourite family outings, youth hangouts and meeting places.

Retail outlets: India has over 15 million retail outlets, big and small and huge domestic and international corporates are moving in to cash in on this visible result of rising incomes. Birla, Reliance, Wal-Mart are some of them. Retail mania assumes that huge supply will automatically create huge demand, not necessarily proven in reality. Retail is a business with very thin margin of profit, usually 2-3% only.