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Advertising and sales promotion Assignment

Part -A
Q1. What is advertising? Explain any five benefits of advertising with examples. Ans Advertising or advertizing[ is a form of communication for marketing and used to
encourage, persuade, or manipulate an audience (viewers, readers or listeners; sometimes a specific group) to continue or take some new action. Most commonly, the desired result is to drive consumer behavior with respect to a commercial offering, although political and ideological advertising is also [citation needed] common. This type of work belongs to a category called affective labor. In Latin, ad vertere means "to turn toward." The purpose of advertising may also be to reassure employees or shareholders that a company is viable or successful. Advertising messages are usually paid for by sponsors and viewed via various traditional media; including mass mediasuch as newspaper, magazines, television commercial, radio advertisement, outdoor advertising or direct mail; or new media such as blogs, websitesor text messages.Commercial advertisers often seek to generate increased consumption of their products or services through "branding," which involves associating a product name or image with certain qualities in the minds of consumers. Noncommercial advertisers who spend money to advertise items other than a consumer product or service include political parties, interest groups, religious organizations and governmental agencies. Nonprofit organizations may rely on free modes of persuasion, such as a public service announcement (PSA).Modern advertising was created with the innovative techniques introduced with tobacco advertising in the 1920s, most significantly with the campaigns of Edward Bernays, which is often considered the founder of modern, Madison Avenue advertisin Virtually any medium can be used for advertising. Commercial advertising media can include wall paintings, billboards, street furniturecomponents, printed flyers and rack cards, radio, cinema and television adverts, web banners, mobile telephone screens, shopping carts, web popups, skywriting, bus stop benches, human billboards and forehead advertising, magazines, newspapers, town criers, sides of buses, banners attached to or sides of airplanes ("logojets"), in-flight advertisements on seatback tray tables or overhead storage bins, taxicab doors, roof mounts and passenger screens, musical stage shows, subway platforms and trains, elastic bands on disposable diapers, doors of bathroom stalls, stickers on apples in supermarkets, shopping cart handles (grabertising), the opening section ofstreaming audio and video, posters, and the backs of event tickets and supermarket receipts. Any place an "identified" sponsor pays to deliver their message through a medium is advertising. Television advertising / Music in advertising The TV commercial is generally considered the most effective mass-market advertising format, as is reflected by the high prices TV networks charge for commercial airtime during popular TV events. The annual Super Bowl football game in the United States is known as the most prominent advertising event on television. The average cost of a single thirty-second TV spot during this game has reached US$3.5 million (as of 2012). Some television commercials feature a song or jingle that listeners soon relate to the product. Virtual advertisements may be inserted into regular television programming through computer graphics. It is typically

inserted into otherwise blank backdrops



or used to replace local billboards that are not


relevant to the remote broadcast audience. inserted into the background in televised sporting events. Infomercials

More controversially, virtual billboards may be


where none exist in real-life. This technique is especially used Virtual product placement is also possible.

An infomercial is a long-format television commercial, typically five minutes or longer. The word "infomercial" is a portmanteau of the words "information" & "commercial". The main objective in an infomercial is to create an impulse purchase, so that the consumer sees the presentation and then immediately buys the product through the advertised toll-free telephone number or website. Infomercials describe, display, and often demonstrate products and their features, and commonly have testimonials from consumers and industry professionals. Radio advertising Radio advertising is a form of advertising via the medium of radio. Radio advertisements are broadcast as radio waves to the air from a transmitter to an antenna and a thus to a receiving device. Airtime is purchased from a station or network in exchange for airing the commercials. While radio has the limitation of being restricted to sound, proponents of radio advertising often cite this as an advantage. Radio is an expanding medium that can be found not only on air, but also online. According to Arbitron, radio has approximately 241.6 million weekly listeners, or more than 93 percent of the U.S. population. Online advertising Online advertising is a form of promotion that uses the Internet and World Wide Web for the expressed purpose of delivering marketing messages to attract customers. Online ads are delivered by an ad server. Examples of online advertising include contextual ads that appear on search engine results pages, banner ads, in text ads, Rich Media Ads, Social network advertising, online classified advertising, advertising networks and e-mail marketing, including e-mail spam. New media Technological development and economic globalization favors the emergence of new and new communication channels and new techniques of commercial messaging. Product placements Covert advertising, is when a product or brand is embedded in entertainment and media. For example, in a film, the main character can use an item or other of a definite brand, as in the movie Minority Report, where Tom Cruise's character John Anderton owns a phone with the Nokia logo clearly written in the top corner, or his watch engraved with the Bulgari logo. Another example of advertising in film is in I, Robot, where main character played by Will Smith mentions his Converse shoes several times, calling them "classics," because the film is set far in the future. I, Robot and Spaceballs also showcase futuristic cars with the Audi and Mercedes-Benz logos clearly displayed on the front of the vehicles. Cadillacchose to advertise in the movie The Matrix Reloaded, which as a result

contained many scenes in which Cadillac cars were used. Similarly, product placement for Omega Watches, Ford, VAIO, BMW and Aston Martin cars are featured in recent James Bond films, most notably Casino Royale. In "Fantastic Four: Rise of the Silver Surfer", the main transport vehicle shows a large Dodge logo on the front. Blade Runner includes some of the most obvious product placement; the whole film stops to show a Coca-Cola billboard. Press advertising Press advertising describes advertising in a printed medium such as a newspaper, magazine, or trade journal. This encompasses everything from media with a very broad readership base, such as a major national newspaper or magazine, to more narrowly targeted media such as local newspapers and trade journals on very specialized topics. A form of press advertising is classified advertising, which allows private individuals or companies to purchase a small, narrowly targeted ad for a low fee advertising a product or service. Another form of press advertising is the Display Ad, which is a larger ad (can include art) that typically run in an article section of a newspaper. Billboard advertising Billboards are large structures located in public places which display advertisements to passing pedestrians and motorists. Most often, they are located on main roads with a large amount of passing motor and pedestrian traffic; however, they can be placed in any location with large amounts of viewers, such as on mass transit vehicles and in stations, in shopping malls or office buildings, and in stadiums. Mobile billboard advertising Mobile billboards are generally vehicle mounted billboards or digital screens. These can be on dedicated vehicles built solely for carrying advertisements along routes preselected by clients, they can also be specially equipped cargo trucks or, in some cases, large banners strewn from planes. The billboards are often lighted; some being backlit, and others employing spotlights. Some billboard displays are static, while others change; for example, continuously or periodically rotating among a set of advertisements. Mobile displays are used for various situations in metropolitan areas throughout the world, including: Target advertising, One-day, and long-term campaigns, Conventions, Sporting events, Store openings and similar promotional events, and Big advertisements from smaller companies. In-store advertising In-store advertising is any advertisement placed in a retail store. It includes placement of a product in visible locations in a store, such as at eye level, at the ends of aisles and near checkout counters (aka POP Point of Purchase display), eye-catching displays promoting a specific product, and advertisements in such places as shopping carts and in-store video displays. Coffee cup advertising Coffee cup advertising is any advertisement placed upon a coffee cup that is distributed out of an office, caf, or drive-through coffee shop. This form of advertising was first popularized in

Australia, and has begun growing in popularity in the United States, India, and parts of the Middle East.
[citation needed]

Street advertising:-This type of advertising first came to prominence in the UK by Street Advertising Services to create outdoor advertising on street furniture and pavements. Working with products such as Reverse Graffiti, air dancers and 3D pavement advertising, the media became an affordable and effective tool for getting brand messages out into public Sheltered Outdoor Advertising This type of advertising opens the possibility of combining outdoor with indoor advertisement by placing large mobile, structures (tents) in public places on temporary bases. The large outer advertising space exerts a strong pull on the observer, the product is promoted indoor, where the creative decor can intensify the impression.Celebrity branding This type of advertising focuses upon using celebrity power, fame, money, popularity to gain recognition for their products and promote specific stores or products. Advertisers often advertise their products, for example, when celebrities share their favorite products or wear clothes by specific brands or designers. Celebrities are often involved in advertising campaigns such as television or print adverts to advertise specific or general products. The use of celebrities to endorse a brand can have its downsides, however. One mistake by a celebrity can be detrimental to the public relations of a brand. For example, following his performance of eight gold medals at the 2008 Olympic Games in Beijing, China, swimmer Michael Phelps' contract with Kellogg's was terminated, as Kellogg's did not want to associate with him after he was photographed smoking marijuana. Celebrities such as Britney Spears have advertised for multiple products including Pepsi, Candies from Kohl's, Twister, NASCAR, Toyota and many more.Consumer-generated advertising This involves getting consumers to generate advertising through blogs, websites, wikis and forums, for some kind of payment. Aerial advertising :-Using aircraft, balloons or airships to create or display advertising media. Skywriting is a notable examp

Q2. How does a company select an appropriate advertising agency? Ans One of the easiest ways to lose a lot of money is to select the wrong advertising agency. Selecting the wrong agency will waste your investment while raising false hopes and increasing your frustration. And yet it happens all the time.Companies select the wrong agency because they are wooed by razzle-dazzle and dynamic presentations, by big names and clever ideas rather than by a solid grasp of the true purpose of advertising. That purpose is to generate profits for your company - nothing else. And that purpose is achieved when you realize that advertising is simply a fancy word that means selling.The first thing to realize is that advertising agencies are misnamed in the current economic environment. Instead of focusing on merely advertising, a truly effective ad agency focuses on marketing and knows that advertising is but one form of marketing. Beware of the ad agency that speaks only of

advertising and neglects the many other functions of marketing. Because they are advertising agencies, they see their mission as advertising. But keep in mind that advertising is only part of the process of generating profits for you.Selecting an agency means selecting a valued member of your marketing team, not simply a company that creates great advertising. Beware of the advertising agency that speaks too proudly of the awards it has won. Instead, an agency should speak of the profitability and growth it has achieved for its past and current clients. Great advertising agencies become great because their clients have grown and prospered. Ideally, the agency that you select should be your agency for years, growing by helping you grow.You must view your task as helping the ad agency you select. Your most significant contributions will come in the form of data and judgment. Supply data that advertising agencies can use creatively, knowing that the true definition of creativity is something that generates profits for your company. Use judgment in recognizing who is the advertising professional, and who makes the products and services to be advertised and marketed. Unfortunately, many companies set up an adversarial relationship, gently criticizing the agency's ideas and work.I've spent many years working for advertising agencies worldwide, and I've spent even more years serving clients who hire agencies. So I've had the opportunity to view advertising from both sides of the fence. Based on that experience, I urge you not to select a big-name advertising agency if you're a small-name company.The chiefs of those large agencies will make a presentation that will win your heart and your business. But they will not be the people who work on your business. Big agencies often assign the work to neophytes. They don't see a need to have their most fertile minds and highest-paid employees help your growing company when they could be helping their largest clients. Remember, they are as profit minded as you are, but frequently it is their own profits upon which they concentrate. Keep in mind that they earn enormous commissions by placing advertising for their large clients.A rule of thumb: the smaller your business, the smaller the ad agency you should seek; the larger your company, the more services you'll need. A giant advertiser recently moved some of its business from its successful agency in a small city in the United States to a far larger agency in a larger city - because the larger agency had more global services, and this advertiser was thinking globally. But global matters might not influence your own decision in an agency. The services and the quality of the people who will be doing the work on your business should be your prime consideration. First, Ask: Is an Ad Agency Right for You? Just two months into her job as YouSendIt's chief marketing officer, Sandra Vaughn launched an aggressive campaign to find an advertising agency for the secure file transfer service. The timing of this search is strategic based on the substantial growth the company saw in the last year and its hopes for future acceleration. "We are on a mission to be the category leader in our space and to do that and to get there fast, advertising is a key part of what we need to invest in," Vaughn explained. "We're looking for a

very strong creative firm to take us to the next level that we can scale with over the next several years."Before beginning the search, a small company needs to think critically about what role an advertising would play into your business objectives. Whatever the reasonwhether you're planning for accelerated growth like YouSendIt, redesigning your brand, or branching into new territoriesit should be fully formed before you first reach out to advertising agencies.Working with an advertising agency, especially for the first time, should not be an impulse decision. When Hilton Worldwide began a search for a new advertising agency, it planned for a rigorous preparation process. "They way people should think about this is that they're picking a strategic partner that will be an extension of their team for the next several years," says Nancy Deck, vice president of multi-brand and loyalty marketing for Hilton Worldwide.And, agency partnerships are not the end-all, be-all. Some successful companies rely solely on in-house talent to promote their brand. Online retailer Modcloththe fastest growing retailer and second fastest growing company on the 2010 Inc. 500 | 5000 list, creates all its advertising in-house. Before making a decision, consider the time you are willing to dedicate to this partnership, the money you're willing to invest, the skills your team already possesses and the skills your team lacks."Preparation is critically important," says Finneran. "If it's not done thoroughly and honestly, the search is going to end up in misfire. Q3. Explain the communication process highlighting the role of the source,medium and process.

1. Ans communication process is, in important ways, the beginning of the modern field. It provided, for the first time, a general model of the communication process that could be treated as the common ground of such diverse disciplines as journalism, rhetoric, linguistics, and speech and hearing sciences. Part of its success is due to its structuralist reduction of communication to a set of basic constituents that not only explain how communication happens, but why communication sometimes fails. Good timing played a role as well. The world was barely thirty years into the age of mass radio, had arguably fought a world war in its wake, and an even more powerful, television, was about to assert itself. It was time to create the field of communication as a unified discipline, and Shannon's model was as good an excuse as any. The model's enduring value is readily evident in introductory textbooks. It remains one of the first things most students learn about communication when they take an introductory communication class. Indeed, it is one of only a handful of theoretical statements about the communication process that can be found in introductory textbooks in both mass communication and interpersonal communication.An information source. Presumably a person who creates a message.

2. The message, which is both sent by the information source and received by the destination. 3. A transmitter. For Shannon's immediate purpose a telephone instrument that captures an audio signal, converts it into an electronic signal, and amplifies it for transmission through the telephone network. Transmission is readily generalized within Shannon's information theory to encompass a wide range of transmitters. The simplest transmission system, that associated with face-to-face communication, has at least two layers of transmission. The first, the mouth (sound) and body (gesture), create and modulate a signal. The second layer, which might also be described as a channel, is built of the air (sound) and light (gesture) that enable the transmission of those signals from one person to another. A television broadcast would obviously include many more layers, with the addition of cameras and microphones, editing and filtering systems, a national signal distribution network (often satellite), and a local radio wave broadcast antenna. 4. The signal, which flows through a channel. There may be multiple parallel signals, as is the case in face-to-face interaction where sound and gesture involve different signal systems that depend on different channels and modes of transmission. There may be multiple serial signals, with sound and/or gesture turned into electronic signals, radio waves, or words and pictures in a book. 5. A carrier or channel, which is represented by the small unlabeled box in the middle of the model. The most commonly used channels include air, light, electricity, radio waves, paper, and postal systems. Note that there may be multiple channels associated with the multiple layers of transmission, as described above. 6. Noise, in the form of secondary signals that obscure or confuse the signal carried. Given Shannon's focus on telephone transmission, carriers, and reception, it should not be surprising that noise is restricted to noise that obscures or obliterates some portion of the signal within the channel. This is a fairly restrictive notion of noise, by current standards, and a somewhat misleading one. Today we have at least some media which are so noise free that compressed signals are constructed with an absolutely minimal amount information and little likelihood of signal loss. In the process, Shannon's solution to noise, redundancy, has been largely replaced by a minimally redundant solution: error detection and correction. Today we use noise more as a metaphor for problems associated with effective listening. 7. A receiver. In Shannon's conception, the receiving telephone instrument. In face to face communication a set of ears (sound) and eyes (gesture). In television, several layers of receiver, including an antenna and a television set. 8. A destination. Presumably a person who consumes and processes the message.

Like all models, this is a minimalist abstraction of the reality it attempts to reproduce. The reality of most communication systems is more complex. Most information sources (and destinations) act as both sources and destinations. Transmitters, receivers, channels, signals, and even messages are often layered both serially and in parallel such that there are multiple signals transmitted and received, even when they are converged into a common signal stream and a common channel. Many other elaborations can be readily described.. It remains, however, that Shannon's model is a useful abstraction that identifies the most important components of communication and their general relationship to one another. That value is evident in its similarity to real world pictures of the designs of new communication systems, including Bell's original sketches of the telephone, as seen in Figure 2.
Q4. What is brand awareness? Why is it important in consumer decision making? Ans Brand awareness is the extent to which a brand is recognized by potential customers, and is
correctly associated with a particular product. Expressed usually as a percentage of target market, brand awareness is the primary goal of advertising in the early months or years of a product's [1] introduction. Brand awareness is the extent to which the consumer associates the brand with the product that they wish to purchase. It is the brand recall and the brand recognition of the company to the consumers. Brand recall is the ability of the consumer to recollect the brand with reference to the product whereas brand recognition is the potential of the consumer to retrieve the past knowledge of the brand when enquired about the brand or shown an image of the brand logo. Brand awareness is an essential part of brand development which helps the brand to stand out from the others in this monopolistically competitive market.

Types of Brand Awareness

Aided Awareness- This type of awareness is generated in a consumer. When asked about a product category, if the consumer is aided with a list of company names and he recognizes the company from the given set it is categorized as aided awareness. Top of the mind Awareness- When the name of the company is automatically recollected because the consumer very promptly associates the brand with the product category, it is called a top of the mind awareness of the product

consumer decision making process is extremely valuable for all businesses. There are 5 important steps that a consumer makes before they decide upon purchasing a product or using a service. What goes on in their head? Understanding these processes will help with developing marketing strategies targeted to the consumer.

Problem Recognition
Okay, so why do people want to buy things? Its because there is a problem, and they are looking for the solution to their problem. This is where the marketer can do several things to make their product or service more enticing to the consumer. If the problem is inactive, your job as a marketer is to make that problem active. Want an example of great marketing? Just look at how Steve Jobs came along with the

iPhone. No one needed it, but he made sure that the iPhone was something that everyone needed to have. Think of this simple equation here:
Problem = Desired State Current State

Information Search
This part of the consumers decision making process is where they are looking for more information. They search for this either internally or externally. Whats the difference between the two? Internal search is what someone already knows, such as pre-existing knowledge of the product or from the consumers memory. An external search is as simple as the consumer going on Google to look for a product review or perhaps even video demonstrations on YouTube. Q5. Discuss the role of memory in consumer response to advertising Ans The role of consumer memory in advertising Since most advertising occurs in a nonpurchase context (e.g., watching a television programme, reading a bill board while driving home), the effect of advertising on purchase behaviour should mostly occur through a consumer's memory for the information presented in the advertisement. Consumer researchers have long recognized the critical role played by memory in mediating advertising effects on consumption (e.g., Lavidge and Steiner, 1961), and most information-processing models explicitly recognize the role of encoding and retrieval of brand information in affecting purchase behaviour (e.g., Consumer Information Processing Model, Shimp, 2007). Therefore, memory for an advertisement has important implications for persuasion (see Chapter 2.1) and may be influenced by certain advertisement and consumer characteristics that are discussed at length in other chapters of this book. In addition to traditional areas of research in memory, more recent investigations have provided greater understanding A new approach is suggested for
understanding the nature of the differences between the advertising media. The information processing view of the media that is presented in this paper suggests that media differences can be examined in terms of the differential processing capabilities of their presentation formats of pictures and sentences, which vary in imagery level. The availability - valence hypothesis is proposed as a means of identifying and explaining the learning and evaluative effects of advertisements differing in imagery. The issue of media effectiveness is of major importance to firms and consumers. Firms spend over 40 billion dollars annually for time and space in broadcast and print media. They also allocate significant human resources to media selection and the associated activities of media buying and monitoring. Furthermore, because the viability of the media depends on advertising revenues, advertisers' media choices affect the entertainment and information made available to consumers. To address the media selection decision, practitioners typically employ a two step approach. Initially, media are identified that yield efficient exposure to some target audience given reach, frequency, and budget constraints. Then selection among these media is based on their impact as determined by expert judgment. Impact is assessed by examining such factors as the suitability of the editorial environment, production quality, and longevity. In some instances, these decision criteria have been formalized, using subjective estimates of media impact to model the selection problem The appropriateness of this approach is questionable because of the problems associated with the measurement of the impact factors. The factors depend on the judgment of experts, yet the definition of an expert is not delineated and may vary across situations. In addition, the judgments may be biased in reflecting idiosyncracies

in the experiences of the experts. Moreover, there has been no systematic attempt to empirically confirm the use of impact factors as a means of distinguishing the media. Despite these problems with the practitioner's approach to media selection, few improvements have been suggested. In large measure, this may be due to the fact that there has been little inquiry regarding the nature of the differences between the media. Rather, media research has been concerned with establishing the superiority of one medium over another. Although a substantial number of studies have been undertaken on the media, the results have not been informative. Some studies reported that television advertising was more effective than print (e.g., Greenberg, 1966) while others found the reverse true (e.g., Williams, Paul, and Ogilvie, 1957). Similarly, in some studies comparing the effectiveness of the print and ratio media, it was observed that print was more effective than ratio (e.g., Haugh, 1952) while others indicated the opposite (e.g., Wilke, 1934). The same lack of consistency characterizes studies comparing the television and radio media (e.g., Beighley, 1952; Nasser and McEwen, 1976). In addition, a number of studies have also found no differences between the mediaCentral to the problem of determining media effectiveness is the fact that the majority of media research has been motivated solely by the desire to demonstrate main effects. without any attention to the theoretical constructs producing the effects. Yet the inconsistencies found in the media studies may have been due to the existence of unknown factors that were unwittingly varied from study to study. The main effect focus of this research has precluded any investigation of these factors. To resolve this problem, research needs to be motivated by a theoretical perspective that is able to suggest constructs that can be used to distinguish among various media.

Q1. Discuss the various objectives of advertising Ans hese objectives vary according to their industries, available distribution channels and overall
marketing strategies. The key with all advertising is attracting the right buyers. These are people who are more apt to buy a company's wares based on demographics like age and income, for example. Advertising managers should also repeat their messages often enough to familiarize consumers with their offerings.

Increasing Sales and Profits

One of the major objectives of advertising is to increase sales and profits. Some companies, like Internet businesses, only use advertising to apprise people about their products and services. These companies don't have sales departments. Hence, they can only sell products and earn profits if they are actively advertising. Some forms of advertising lend themselves more to producing immediate profits. For example, direct response advertising, which asks consumers for money in the ads, is specifically geared toward building sales and profits.

Encourage Trial and Usage

Companies often use advertising to encourage trial and usage of new products. These companies run their advertising to introduce their products to the public. They inform people where to buy the products, and also offer special incentives to first-time buyers. For example, a fast food restaurant may offer consumers "$1 off" on a new $3 chicken meal. Similarly, consumer products companies advertise to get consumers to try and use their products. Their sales and profits increase when customers start making regular purchases of their brands.

Reminder Advertising
Some businesses use advertising to help customers recall "satisfaction" they had with products in the past, according to marketing expert Cynthia M. Frisby of the University of Missouri. This is often called reminder advertising. Companies that use reminder advertising are often marketing older, more established products. They advertise these products less frequently just to remind customers they are still selling the products. For

example, some companies run commercials for 40-year-old games, toys and other items during the holidays.

It is not enough to just advertise to achieve key objectives. Companies must deliver what they promise in the ads. For example, manufacturers and retailers must ensure enough products are in stock when these ads break. They must also provide excellent customer service, answering questions about products and providing fair refund policies. Companies should also develop computer databases on customers, when possible, so they can periodically send them coupons or special promotions

The Objectives of Advertising

An advertisement is a specific message while an advertising campaign is a series of coordinated advertisements that communicate a theme or idea. An audience is a group of individuals who receive and interpret messages sent from advertisers. A target audience is a particular group of consumers who are most intended to receive the message. The marketing mix consists of several tools including conception of the product, pricing of the product, promotion and distribution of the product, service of person. Advertising is only ONE of the promotional tools relied on in the marketing mix. Advertising communicates the value of a product or service. Marketers must determine which marketing mix ingredients to emphasize and how to blend the elements to attract and serve customers. This is referred to as integrated communication, which is an effort to complement the overall marketing strategy. Advertising has communication objectives designed to accomplish certain tasks within the total marketing program and is a marketing tool that is more effective when used to sole narrowly defined communication issues (i.e., create brand awareness which is a preference for a brand that leads to an increased share of the market, which in term increases profitability). To be successful, advertising must exhibit a creative executive to gain the consumers attention and reach potential customers in an appropriate environment at a proper time. If the message is received when the target market is busy or not available, it makes no impact. Advertising, as a mass communication, must reach numerous publics. These include: distributors; employees (creating pride and loyalty); customers; potential customers; stockholders (who provide operating revenue); the community-at-large (who can influence public opinion and thus help with efforts such as new manufacturing plants and warehouse locations). An advertising plan consists of the following elements: advertising goals stated in terms of marketing goals and objections (these goals are communication); market segmentation (to define the market via demographic, geographic and psychographic factors); a budget; product differentiation (emphasizes product differentiation based on consumer perception these can be tangible or intangible such as style and image) but ultimately it is important that the customer can differentiate this product from others; the creative efforts; the media to be used for the campaign. Positioning is the process of designing a product/service so it can occupy a distinct place in the target consumers mind. Advertising communicates this distinctiveness.

A brand name differentiates one seller from another. It is the part of a trademark that is words (Nike) not the pictures (the swoosh). Brand equity is the value assigned to the intangible value of an established brand. Brand loyalty is when a consumer repeatedly busy the same brand and is therefore less sensitive to price increases. This is important as it allows firms to have the flexibility to raise prices to increase their profit margins. In competition with generic and in-house brands, brands are assisted by perception and linking a brands image and meaning to a consumers social environment as well as to the larger culture. Three strategies used in branding: corporate branding where the corporation is more important than the individual product (i.e., G.E., Verizon, MetLife) a combination of corporate and product brand promotions allows diversification from the parent company (i.e., ITT and Roman Meal bread) product first good when the umbrella company sells multiple brands within a category (i.e., Proctor and Gamble)

A product must meet a perceived need or else it will fail (90% of all new brands fail). In creating a brand, the firm must consider if there is a real consumer demand, what timing is best for placing the ad as well as where to place the advertising within the media.

Advertising promotes differentiation among new products as well as communicating improvements and general information.

Value refers to the perception by consumers that a product or service provides satisfaction beyond the cost incurred to acquire it. Symbolic value refers to value in a nonliteral way (automobiles) and what the product/service means in a societal context. Consumers are willing to pay a premium for this value (hotels, cars, jewelry).

Factors to use in deciding to use advertising: a. volume of sales as sales increase, the percentage of dollars spent on advertising decreases as the public has been reached. b. competitive environment and profit margin if there is a lot of competition within the category (i.e., soft drinks, beers) then a higher advertising budget is required (with beer, the companies not invest in events rather than ads) c. philosophy of advertising with some products a moving picture is needed (food) d. new product introductions require heavy ad support e. maintaining leadership position within the category

The following are some of the different categories of advertising: Retail advertising tends to be a harder sell and often includes price, service, location and house of service (retailers, airlines) End-product advertising used by manufacturers to build consumer demand for a branded ingredient used within the manufacturing of products (Splenda)Direct Response advertising used in all types of media and includes a sense of urgency, a 1-800 number and allows the consumer to buy directly Trade advertising directed to wholesale and retail merchants and emphasizes profitability the manufacturer may offer an initial trial of the product, increased trade support (perhaps additional consumer advertising), and announce consumer promotions Industrial advertising directed to the manufacturer for goods needed to createproducts and does not seek to sell the product directly (i.e., tires for autos)Professional advertising professional product and services to the consumer such as law, medicine, dentalPublic Relations/Institutional/Corporate advertising all 3 names are used for this category but for this course, we will use the term public relations advertising unlike general Public Relations which is not a paid effort (materials are submitted in the form of press releases and video news released in the hope that the media will pick up the stories) but does attempt to create good public will for the product/service/person, PR advertising is a paid effort to establish a favorable attitude towards the company by: a. establishing a public identity; b. overcome existing negative attitudes; c. explain a companys mission; d. boost corporate identity and image; e. persuade a target audience for later sales; f. promote and relate a company to some worthwhile product. Nonproduct advertising promotes a cause or idea such as abortion, anti-terrorism, gun control, animal rights (PETA) often controversial and emotionalService advertising promotes a service sells expertise and tends to maintain slogans/logos to increase consumer awareness features the tangibles and since there is no product, these service providers often use testimonials features employees to present the quality of the employees and guarantees value and service stresses the quality of their service.Advertising objectives lay the framework for the subsequent tasks in an advertising plan. They identify the goals of the advertiser (i.e., increase consumer awareness, change consumers beliefs or attitudes about the product, influence purchase intent, stimulate trial use, switch consumers from other brands, increase sales).

Q2. What are attitudes? How do they influence consumer purchase behaviour? Ans An attitude can be defined as a positive or negative evaluation of people, objects, event,
activities, ideas, or just about anything in your environment, but there is debate about precise definitions. Eagly and Chaiken, for example, define an attitude "a psychological tendency that is [3] expressed by evaluating a particular entity with some degree of favor or disfavor." Though it is sometimes common to define an attitude as affect toward an object, affect (i.e., discrete emotions or [4] overall arousal) is generally understood to be distinct from attitude as a measure of favorability. This definition of attitude allows for one's evaluation of an attitude object to vary from extremely negative to extremely positive, but also admits that people can also be conflicted or ambivalent toward an object meaning that they might at different times express both positive and negative attitude toward the same object. This has led to some discussion of whether individual can hold [5] multiple attitudes toward the same object. Whether attitudes are explicit (i.e., deliberately formed) versus implicit (i.e., subconscious) has been a topic of considerable research. Research on implicit

attitudes, which are generally unacknowledged or outside of awareness, uses sophisticated methods involving people's response times to stimuli to show that implicit attitudes exist (perhaps in tandem with explicit attitudes of the same object). Implicit and explicit attitudes seem to affect people's behavior, though in different ways. They tend not to be strongly associated with each other, although in some cases they are. The relationship between them is poorly understood. Consumer behavior is the study of individuals, groups, or organizations and the processes they use to select, secure, and dispose of products, services, experiences, or ideas to satisfy needs and the [1] impacts that these processes have on the consumer and society. It blends elements from psychology,sociology, social anthropology and economics. It attempts to understand the decision-making processes of buyers, both individually and in groups. It studies characteristics of individual consumers such as demographics and behavioral variables in an attempt to understand people's wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general.Customer behavior study is based on consumer buying behavior, with the customer playing the three distinct roles of user, payer and buyer. Research has [2] shown that consumer behavior is difficult to predict, even for experts in the field. Relationship marketing is an influential asset for customer behavior analysis as it has a keen interest in the rediscovery of the true meaning of marketing through the re-affirmation of the importance of the customer or buyer. A greater importance is also placed on consumer retention, customer relationship management, personalisation, customisation and one-to-one marketing. Social functions can be categorized into social choice and welfare functions.Each method for vote counting is assumed as social function but if Arrows possibility theorem is used for a social function, social welfare function is achieved. Some specifications of the social functions are decisiveness, neutrality, anonymity, monotonicity, unanimity, homogeneity and weak and strongPareto optimality. No social choice function meets these requirements in an ordinal scale simultaneously. The most important characteristic of a social function is identification of the interactive effect of alternatives and creating a logical relation with the ranks. Marketing provides services in order to satisfy customers.

Evaluation of alternatives[edit]
At this time the consumer compares the brands and products that are in their evoked set. The evoked set refers to the number of alternatives that are considered by consumers during the problem-solving process. Sometimes also known as consideration, this set tends to be small relative to the total number of options available. How can the marketing organisation increase the likelihood that their brand is part of the consumer's evoked set? Consumers evaluate alternatives in terms of the functional and psychological benefits that they offer. The marketing organisation needs to understand what benefits consumers are seeking and therefore which attributes are most important in terms of making a decision. It also needs to check other brands of the customers consideration set to prepare the right plan for its own brand.

Purchase decision
Once the alternatives have been evaluated, the consumer is ready to make a purchase decision. Sometimes purchase intention does not result in an actual purchase. The marketing organisation must facilitate the consumer to act on their purchase intention. The organisation can use a variety of techniques to achieve this. The provision of credit or payment terms may encourage purchase, or a sales promotion such as the opportunity to receive a premium or enter a competition may provide an incentive to buy now. The relevant internal psychological process that is associated with purchase

decision is integration. Once the integration is achieved, the organisation can influence the purchase decisions much more easily. There are 5 stages of a consumer buying process they are: The problem recognition stage, meaning the identification of something a consumer needs. The search for information, which means you search your knowledge bases or external knowledge sources for information on the product. The possibility of alternative options, meaning whether there is another better or cheaper product [ available. The choice to purchase the product and then finally the actual purchase of the product. This shows the complete process that a consumer will most likely, whether recognisably or not, go through when they go to buy a product.

Postpurchase evaluation
The EKB (Engel, Kollat, Blackwell) model was further developed by Rice (1993) which suggested there should be a feedback loop, Foxall (2005) further suggests the importance of the post purchase evaluation and that it is key because of its influences on future purchase patterns.

Q3. Compare the various characteristics of television, newspaper, magazine and radio. Ans The mass media are diversified media technologies that are intended to reach a large
audience by mass communication. The technologies through which this communication takes place varies. Broadcast media such as radio, recorded music, film and television transmit their information [1] electronically. Print media use a physical object such as a newspaper, book, pamphlet or comics, to distribute their information. Outdoor media is a form of mass media that comprises billboards, signs or placards placed inside and outside of commercial buildings, sports stadiums, shops and buses. Other [2] outdoor media include flying billboards (signs in tow of airplanes), blimps, and skywriting. Public [3] speaking and event organising can also be considered as forms of mass media. The digital media comprises both Internet and mobile mass communication. Internet media provides many mass media services, such as email, websites, blogs, and internet based radio and television. Many other mass media outlets have a presence on the web, by such things as having TV ads that link to a website, or distributing a QR Code in print or outdoor media to direct a mobile user to a website. In this way, they can utilise the easy accessibility that the Internet has, and the outreach that Internet affords, as information can easily be broadcast to many different regions of the world simultaneously and costefficiently.

In a broadcast system (television), journalists or reporters are also involved with editing the video material that has been shot alongside their research, and in working on the visual narrative of the story. Broadcast journalists often make an appearance in the news story at the beginning or end of the video clip. In television or broadcast journalism, news analysts (also called news-casters or news anchors) examine, interpret, and broadcast news received from varioussources of information. Anchors present this as news, either videotaped or live, through transmissions from on-the-scene reporters (news correspondents). News films ("clips") can vary in length; there are some which may be as long as ten minutes, others that need to fit in all the relevant information and material in two or three minutes. News channels these days have also begun to host special documentary films that stretch for much longer durations and are able to explore a news subject or issue in greater detail. The desk persons categorise news stories with various formats according to the merit of the story. Such formats include AVO, AVO Byte, Pkg, VO SOT, VOX POP, and Ancho Visual. The AVO, or Anchor Voice Over, is the short form of news. The story is written in a gist. According to the script visual is edited. The anchor reads the news while the visual is broadcast

simultaneously. Generally, the duration of an AVO is 30 to 40 seconds. The script is three to four lines. At first the anchor starts to read the news, and, after reading one or one-and-a-half lines, the visual is aired, overlapping the face of anchor. The AVO Byte has two parts: An AVO, and one or more bytes. This is the same as an AVO, except that as soon as the AVO ends, the Byte is aired. The Pkg has three parts: Anchor, Voice Over, and Sign Off. At first a Script is written. A voice over anchor reads the anchor or anchor intro part.

Main article: Newspaper

Reading the newspaper: Brookgreen Gardens in Pawleys Island, South Carolina.

A newspaper is a lightweight and disposable publication (more specifically, a periodical), usually printed on low-cost paper called newsprint. It may be general or special interest, and may be published daily, weekly, biweekly, monthly, bimonthly, or quarterly. General-interest newspapers are usually journals of current news on a variety of topics. Those can include political events, crime, business, sports, and opinions (either editorials, columns, or political cartoons). Many also include weather news and forecasts. Newspapers increasingly use photographs to illustrate stories; they also often include comic strips and other entertainment, such as crosswords. Radio Style The radio newscast must be consumed sequentially; that is, the listener does not hear the second story in the newscast without hearing the first story. The eighth story waits on the first seven, which means in practice that all seven are chosen to be interesting to a significant number of listeners and are presented at a length, which maintains that interest. In addition to the inevitable centrality of thinking which affects story choice and story length, a pressing concern exists for clarity in both sentence length and word choice

because the radio listener, unlike the newspaper reader, is unable to stop to review and reconsider the meaning of a sentence. The eye can go back; the ear can go only forward with the voice of the newscaster. During the golden age of radio, 1930-1950, before television sets appeared in every home, the family gathering around the parlor radio console in the evening sat facing it, a natural thing to do because the radio talked to them. Today, it seems, no one looks at radios. They speak to us from under the steering wheel or over our shoulder. Unlike the attentive newspaper reader, the radio listener is often driving, working, or engaged in some task other than absorbing the latest news, and consequently is paying less than full attention. As a result radio news stories are written to be told in familiar words combined into sentences, which run at comfortable lengths in a style known as conversational. One textbook guideline suggests writing as if telling a story to a friend who is trying to catch a bus that is ready to pull away Q4. Explain the process of preparation of creative brief.

Ans The creative brief is the foundation of any advertising or marketing campaign. It's the
treasure map that creatives follow, and it tells them where to start digging for those golden ideas. Or at least, it should, if it's any good.A good creative brief is hard to come by. A combination of lack of knowledge, increasingly tighter deadlines, bad habits, laziness, poor account management, bad creative direction, or all of the above, contribute to this document becoming an afterthought in many agencies. But done right, everyone benefits.So, although it would take a book to explain how to write a great brief, here is a step-by-step guide to getting on the right track.


Start With The Client A creative brief is an interpretation of the client's wishes. As a good account manager or planner, it is your job to extract everything you can from the client, and condense it. You want to know as much as you can about the product or service. So sit down, in person if you can, and ask every conceivable question. What, why, when, how much? Squeeze every last drop of info from the client. You'll need it.


Use The Product Or Service

This is crucial. If it's at all possible, get samples of the product you're selling. If it's a service, test it out. If it's a car, drive it. If it's fast food, go and eat it. Experience everything. The more you know, the better your brief will be. You can explain the strengths. You have personal perspective. Great advertising, like the original VW campaign, is based in the product. It's focuses on it. Soak it all up before you write.


Put Everything Down On Paper

Or on your screen. But get it all down. Write about first thoughts you had, the goal of the client, the budget, the time line, the obstacles, and everything else that you have collected. Spew it all out, because you'll be using this to make a great brief. Organize Your Thoughts Now that you have everything you need to work with, it's time to start putting it



into something useful. Every creative brief is different, but they share similar traits. Here are the most common sections of a creative brief, your information should go into these : Spend The Most Time Writing Your Single Minded Proposition Focus all of your energy on it. The rest of the information is just that really. It's information. But the SMP is the strategy behind the campaign. It's the arrow that points your creative team in the right direction. You need to boil down everything you have collected, talk to the creative director, other account people in your team, and get to the essence of the project. How would you sum it up in one succinct sentence? Do you know which creative team will be working on the job? If so, talk to them. They can help, and as they'll be working on the project, they should be more than happy to help you craft a great proposition. It makes their lives easier.
Here are some examples of great SMPs:

There's More To Iceland Than Anyone Ever Knew - Iceland Supermarket (HHCL/Red Cell) To Our Member's, We're The Fourth Emergency Service - The Automobile Association (HHCL&Partners) Don't Let Your Illness Cripple Your Family - Abbey Life Insurance (written by John Hiney at Payne Stracey) We're Number Two. We Try Harder - Avis (DDB) Simplify, Simplify

Now that you have a killer SMP and all the information is down on paper, it's time to get your red pen out and slash some ink. Lots of ink, actually. Your job here is not to impress people with how much research and data you've collected. Your creative brief should be just that - creatively written and concise. Cut it to

the bone. Get rid of anything unnecessary. You're aiming for one page. There's rarely any need to go beyond that. All of that research you did, the product background, competitive ads, they are all support documents. They play no part in your creative brief.
Get Feedback From Your Creative Director

A good creative director will insist on seeing every brief that comes through the department. After all, it's his or her job to oversee the creative work, and the brief is huge part of that process. Don't just do a drive by, or email it, actually sit down and go through it. That way, you have time to take feedback, ask questions and get direction. Trust me, you will rarely hit it out of the park on your first effort, at which point, you'll be repeating steps 5,6 and 7 at least once more.
Get The Client's Approval

This is hugely important. At this point, showing the client is paramount, because you need their approval on the agency's direction for the campaign. Not the creative, but a direction. This is key. If, when the time comes to present the work, the client says "I don't like it, that's not what we wanted" then you can go back to the creative brief and say " actually, it is." The creative brief was signed by the client, they agreed to it, if they need different work, they need a new creative brief and, more importantly, you get more time. Plus, the work you've already done is billable, not throwaway. Finally, Present Your Brief In Person:-When you have a concise, creative brief that has approval from all parties, it's time to brief the creative team. Please, do it in person. Don't get lazy and send an email, or worse, leave a photocopy on the desk with "any questions, gimme a call" scrawled on it.This is not only your opportunity to start the project right, it also gives the creatives a chance to ask questions, clear up an possible gray areas, and feel you out on other issues that may come up.Follow these steps, and you should be well on your way to writing a brief that gets results, not just creatively, but financially. Go for it.

Q5. How is business advertising different from consumer advertising?

Ans Consumer advertising is advertising that is directed and intended for domestic markets such

as individuals and families. This is in contrast to industrial advertising, which is specifically directed and marketed toward businesses. The goal of consumer advertising is to introduce, or sometimes re-introduce, products and services to families and private individuals for daily use and consumption. These can be automobiles for family use, household appliances, home electronic devices, clothes, books, movies, and just about anything else commonly found in an individual or family household. Advertising is, generally, the practice of creating print, audio, and video messages intended to reveal or display a product or service and to show features meant to entice a customer into purchasing that product or service. Consumer advertising is a specific field of advertising, which focuses on the needs and desires of households rather than businesses. These types of advertisements are often focused even more narrowly on a specific demographic or target audience to increase effectiveness and message penetration among that audience. A demographic is a specific portion of the population and is based on particular common features, beliefs, practices, or ideologies. These can be separated according to age groups, gender, religious beliefs, income ranges, education, profession, and a number of other specifically targetable aspects of modern life. Consumer advertising often seeks to find ways to relate to either the entire population or more commonly a specific demographic and appeal to p

Yes, there are similarities. But there are also differences in selling to business and professional buyers vs. the general public. In fact, here are six key factors that set business-to-business marketing apart from consumer marketing: 1. The business buyer wants to buy. Most consumer advertising offers people

products they might enjoy but dont really need. How many subscription promotions, for example, sell publications that the reader truly could not live without? If we subscribe, we do so for pleasure - not because the information offered is essential to our day-to-day activity. But in business-to-business marketing, the situation is different. The business buyer wants to buy. Indeed, all business enterprises must routinely buy products and services that help them stay profitable, competitive, and successful. The proof of his is the existence of the purchasing agent, whose sole function is to purchase things. 2. The business buyer is sophisticated. Business-to-business copy talks to a sophisticated audience. Your typical reader has a high interest in - and understanding of - your product (or at least of the problem it solves). Importantly, the reader usually knows more about the product and its use than you do. It would be folly, for example, to believe that a few days spent reading about mainframe computers will educate you to the level of your target prospect - a systems analyst with six or seven years experience. (This realization makes business-to-business writers somewhat more humble than their consumer counterparts.) The sophistication of the reader requires the business-to-business copywriter to do a tremendous amount of research and digging into the market, the product, and its application. The business audience does not respond well to slogans or oversimplification. 3. The business buyer will read a lot of copy. The business buyer is an informationseeker, constantly on the lookout for information and advice that can help the buyer do the job better, increase profits, or advance his career. Our prospects are turned off by colorful, advertising-type sales brochures, says the marketing manager of a company selling complex systems software products to large IBM data centers. They are hungry for information and respond better to letters and bulletins that explain, in fairly technical terms, what our product is and how it solves a particular data-center problem.

Dont be afraid to write long copy in mailers, ads, and fulfillment brochures. Prospects will read your message - if it is interesting, important, and relevant to their needs. And dont hesitate to use informational pieces as response hooks for ads and mailers. The offer of a free booklet, report, or technical guide can still pull well despite the glut of reading matter clogging the prospects in-basket. 4. A multistep buying process. In consumer direct response, copywriters fees are geared toward producing the package - an elaborate mailing that does the bulk of the selling job for a publication, insurance policy, or other mail order product. But in

business-to-business direct marketing, the concept of package or control is virtually non-existent. Why? Because the purchase of most business products is a multistep buying process. A vice president of manufacturing doesnt clip a coupon and order a $35,000 machine by mail. First he asks for a brochure. Then a sales meeting. Then a demonstration. Then a 30-day trial. Then a proposal or contract. Thus, it is not a single piece of copy that wins the contract award. Rather, it takes a series of letters, brochures, presentations, ads, and mailers - combined with the efforts of salespeople - to turn a cold lead into a paying customer. 5. Multiple buying influences. You dont usually consult with a team of experts when you want to buy a fast-food hamburger, a soda, bottle of shampoo, or a pair of shoes, do you? In most consumer selling situations, the purchase decision is made by an individual. But a business purchase is usually a team effort, with many players involved.For this reason, a business purchase is rarely an impulse buy. Many people influence the decision - from the purchasing agent and company president, to technical professionals and end-users. Each of these audiences has different concerns and criteria by which they judge you. To be successful, your copy must address the needs of all parties involved with the decision. In many cases, this requires separate mailings to many different people within an organization. 6. Business products are more complex. Most business products - and their applications - are more complex than consumer products. (For example, clients I now serve include a commercial bank, a manufacturer of elevator control systems, a data processing training firm, a database marketing company, a mailing list broker, a general contractor, and a semiconductor manufacturer.)Business-to-business copy cannot be superficial. Clarity is essential. You cannot sell by fooling the prospect or hiding the identity of your product. Half the battle is explaining, quickly and simply, what your product is, what it does, and why the reader should be interested in it. In high-tech direct mail, the key is to educate the prospect, say Mark Toner, who manages the advertising program for Amano, a manufacturer of computerized time-clock systems. With a product like ours, most customers dont even know of its existence.In short, in business-to-business marketing, the rules are different. In the months to come, well explore ways to increase response and profits in this exciting and challenging marketplace.peoples sense of consumer desire.

Q1 Discuss various reasons for the increase in sales promotion expenditure I the last few years Ans Sales promotions are action-focused marketing events whose purpose is to have a direct impact on the behavior of the firms customers. There are three major types of sales promotions: consumer promotions, retailer promotions, and trade promotions. Consumer

promotions are promotions offered by manufacturers directly to consumers. Retailer promotions are promotions offered by retailers to consumers. Trade promotions are promotions offered by manufacturers to retailers or other trade entities (Blattberg and Neslin 1990). This thesis is focused on promotions offered to the consumer, therefore a combination of consumer and retailer promotions. Throughout the world, sales promotions offered to consumers are an integral part of the marketing mix for many consumer products. Marketing managers use price-oriented promotions, such as coupons, rebates, and price discounts to increase sales and market share, entice consumers to trial, and encourage them to switch brands or stores. Non-price promotions such as sweepstakes, 7frequent user clubs, and premiums add excitement and value to brands and may increase 6 brand attractiveness. In addition, consumers like promotions. They provide utilitarian benefits such as monetary savings, increased quality (higher quality products become attainable), and convenience, as well as hedonistic benefits such as entertainment, exploration, and self-expression (Huff and Alden 1998, Chandon et al. 2000). Given the increasing importance of sales promotions as a percentage of the total advertising and promotional budget (growth from 58 percent in 1976 to 72 percent in 1992, and increasing at a rate of 12 percent per year over the last 10 years (Gardener and Treved 1998), studies that strive to understand the impact of sales promotions on consumers are very important. There are several reasons why advertising has become less effective. The growing diversity of the population of consumers makes it more difficult to reach a mass audience with a single message. Moreover, the cost of advertising media has grown faster than the rate of inflation, but its effectiveness has fallen as television channels, magazines, radio stations, and websites proliferate, and as consumers take control of their exposure to ads with VCRs and remote control devices. It has become increasingly expensive and difficult to build brand awareness and brand loyalty. According to Kahn and McAllister (1997), it has almost become impossible to build brand awareness and brand loyalty by advertising. Furthermore, a result of the overwhelming product proliferation is that the

distinctions between brands have become blurred. These (and other) developments have driven manufacturers and retailers marketing mix expenditures towards sales promotions. Such a promotional pricing strategy is called a HILO strategy (e.g., Lal and Rao 1997, Bell and Lattin 1998) A current, opposite trend is the Every Day Low Pricing (EDLP) strategy. This strategy differs from the promotional pricing strategy by not emphasizing price specials on individual goods but instead focusing consumer attention on good value on a regular basis (Lal and Rao 1997). Some research has been carried out on EDLP. Lal and Rao (1997) concluded that two types of stores (HILO and EDLP) both attract time constrained consumers and cherry pickers. Bell and Lattin (1998) investigated the relationship between grocery shopping behavior (size of the shopping basket) and store choice (EDLP versus HILO). They concluded that small basket shoppers prefer HILO stores and large basket shoppers prefer EDLP stores. Ailawadi et al. (2001) studied the reactions of consumers on a store pricing strategy change (from HILO to EDLP). They concluded that such a pricing 7 strategy change (decrease in promotional spending coupled with an increase in advertising spending) results in a decrease in market share for the company that instituted this strategy change. Thus, uncertainty exists about the effects of using or not using a promotional pricing strategy. Investigating the exact results from sales promotion expenditures on individual household purchase behavior is the mainspring of this study. Conflicting empirical results exist with respect to the causes of the promotional volume. As mentioned in the introduction, some researchers found that the majority of promotional volume comes from switchers, whereas others found opposite results. One possible explanation for these conflicting results is that sources of promotional volume are dependent on the characteristics of the product category (Blattberg and Wisniewski 1987). Instead of taking the promotion as the study object, we use the individual household as the point of departure. We do not investigate whether a certain promotion results in a sales increase; we investigate whether a certain

household is influenced by a promotion it encounters during its shopping trip, and if so, in what way. The use of the term influence(d) deserves more attention. A possible criticism is that we cannot prove that a change observed in the individual household purchase behavior during a promotional period is actually a consequence of that promotion. There could be other causes for changes in purchase behavior. For example, if a specific household is organizing a large, fancy party, this might induce deviating purchasing behavior. An integrated promotional strategy (for example a price cut combined with advertising) might induce greater purchasing by a price-sensitive household than a price-cut in isolation would have caused. Furthermore, need for variety could be the cause of deviating purchase behavior, not the sales promotion present in the retail outlet. Our view is that this sort of phenomenon, while undoubtedly present, will have limited effects on our results. We study individual household purchase behavior over more than two years and for quite a large number of households, searching for general patterns. In addition, the influence of possible variety seeking behavior is accounted for. We therefore interpret the patterns found in changed purchase behavior during promotion periods as being caused by sales promotions. The degree to which a certain household is influenced by a promotion, is investigated for different types of promotions and a number of product classes. Are there households that respond to every sales promotion? Are there differences between households in the way they react to promotions, does one household 8 show consistent brand switch behavior, whereas a second household shows consistent purchase acceleration behavior? These are questions we want to answer with this study Q2 Differentiate between consumer sales promotion and trade promotions, while highlighting tools u sed for each.

Ans A typical sales promotion budgetcovers almost 70% of the total consumer sales
promotional budget. It is also considered as a brand differentiator by many big players like Coca-Cola, Pepsi, Heinz and many more. For many business experts and academics, sales promotion is regarded as typical marketing techniques that add value to a product in order to achieve specific marketing goals. The primary purpose of sales promotion is to induce the consumers to make a quick buying-decision in order to create increases sales. Typical example of sales promotion is to offer customers to take chance of winning a prize or offering some extra products with the same price. Sales promotion and marketing are inter-related but not have the

similar purpose. It is advertising which makes a platform for sales promotion where customers can see the direct added value of buying your product. On the other hand, advertising is an intangible promotion of your products to send the marketing message to the customer-base.

Sales Promotion: Advantages & Disadvantages

The main advantages associated with promotional sales are-an easy way to learn customer response and it work fast. It also an inexpensive marketing technique. Sales promotion does not always bring positive impact to business, sometime this type of promotion cause negative brand impact to customers mind in the long-term. So, a promotional campaign needs to be designed taking into account the consequences of losing brand value. A PIMS study of 1991 suggests that overuse of sales promotion brings low ROI, almost 15% less, in comparison to balanced and calculated promotional offers.it is advisable not to use sales promotion as a tool of brand imaging, advertising is always the best way as far as branding is concerned. So, marketers need to be careful and must understand the difference between the sales promotion and advertising.

sales promotion maketing

Objective of sales promotion

Before designing a promotional campaign, you must identify the target groups. This is done by breaking up of your product markets and identification of small groups of consumers whose wants and needs are not the same as the mass market as a whole-this is one of the key to success in sales promotion. For finding the target group you need to take a qualitative research on the market to determine your groups of customers, if the target group exists then find out their needs & wants, and what drives them to buy your product. After learning about the target groups, you must set the objectives of sales promotion which is all about why you want to achieve in sales promotion campaign and how your customers will be benefits. Other aspects of sales objectives are: budget of the promotion and duration of the promotional offer.

Examples of Sales objectives

Many marketers use the promotional sales as a tool to learn the response of the first time users, by offering reduced price, sales coupons, or money-back guarantees. To increase the repeat purchase from the existing users. It can work as an introductory platform for a new product. But a hosing plan and get a domain name free. Sales promotion is a vehicle to defend your business against your competitors. By giving your users free coupons upon buying every products so as they can get considerable discount on the next purchase with a specified time will certainly bind your customers with your products and it will unlikely that they will switch on a new brand, even if it being highly competitive.

Try to target and find a new segment in the market by focusing geographic and psychology of users such as users with high and low purchasing needs. Normally, arranging a competition or contents are very helpful for targeting a specific interest group.

What Is Sales Promotion Marketing Basics Advertising,Promotion,Marketing and PR Types of Sales Promotion
Basically there are three main categories of sales promotion targeted at different elements of markets such as consumers, traders, industries. 1. Consumer sales promotions 2. Trade sales promotion 3. B2B and industrial sales promotion

1. Consumer Sales Promotion

Sampling-if your objective is to trial the product then sampling is an effective sales promotion method. Usually sampling is involved with low value products and products having highly visible features of benefits. For delivery sample products marketers use either door-to-door or mailing approach Couponing-it is one of the oldest sales promotion strategies and sometimes couponing makes the product problematic by cheapening your brand name. Coupon is mainly used for attracting new customers as well as to increase instant sales with price reduction of a product. Contests and Sweepstakes-these are very popular low-cost methods of sales promotion used and viable in almost any demographic location on earth. These techniques help people to learn your product more and help them pay more attention to your product. For instance if you arrange a completion about providing the accurate information of your product , then certainly interested customers will learn about your product and this is why it is an effective way of educating customers. Money refunds-instant cash-back, refunds and rebates are very attractive ways to promote sales in cell phone service providers and web-hosting companies. For any product sales promotion, money back offers give a sense of security to all customers. Premiums and bonus packs -a premium offer means an extra item at a low price or totally. Premiums are one of the effective sales promotions in targeting the brand switching users and also to increase sales rate among the existing users. Loyalty schemes-this is great way to hold the loyalty of customers. It is basically a point based system, where each customer gets some points on each purchase and later he can use these points on buying the same products or other products at a reduced price. To many marketers, loyalty schemes are also known as-frequent purchasing scheme.

Exhibitions- this is not like trade show. The purpose of an exhibition is to interact with the customers, answer their queries and not to merchandise any products. Generally exhibitions are held to develop consumer interests on products. It is a very powerful and efficient vehicle to reach the customers and to educate them about your products. Example of exhibition is -Motor Show. Packaging- many marketers does no pay much attention to the quality of packaging, because they simply do not understand the psychological and brand image aspects of packaging. An attractive and innovative packaging can work like a salient sales man-packaging does the hooking function to buyers. A well-packaged product carries not only the brand values but also create an emotional link to your prospects. Not that it is only important for packaging to be eyecatching, aesthetic, but it needs to protect the product inside with proper manner.

2. Trade Sales Promotions

Improve the distribution line is the key purpose of trade sales, by organizing trade shows. Some effective techniques used in a trade promotion are: discounts, point-of-sales materials, shelf facings, and displays. Incentives: This is a popular trade promotion idea with the manufacturers, retailers normally does not use this technique to boost their sales. Incentives are given as a form of cash bonus or prizes per sale. Buying allowances- Its a kind of price reduction for your product for a specific period of time.

Trade shows- It is a way of getting to learn new customers, introduce those new products, getting customer reactions. But unlike exhibitions, trade show involves in selling products. A successful trade show can be measured by keeping records of the number of visitors, useful leads and identifying the products with most interests to customers.

Advertising allowances promotion-This is a very common practice among manufacturers, where a certain amount of money is given to the retailers by the manufacturing company. This is allowances is based on the number of products and orders retailers can bring to the manufacturers. Free training- A well informed sales man works like an ambassador for your brand. Customers need proper information from a proper channeled-no one than sales man do this job better. As a part of the promotional offer and relationship building, manufacturers offer training to the retail staff so as they become more effective and skilled while dealing with customers. This free training is very important promotion factor you market any complicated and expensive products. Along with each training manufacture need to provide well-documented brochures and technical manuals to the retailers.

3. Sales Promotions: B2B & Industrial

This is the last but not certainly the least important portion of the sales promotion plan. Industrial sales promotion is all about applying the trade & consumer promotional ideas into industrial marketing environment. Depending on the situation, you need to decide on which consumer and trade promotion ideas is best suited in B2B environment. For example, consumer promotional offer like buy one get one free can be offer in B2B environment as buy one and get one-year service free. Depending of the type of products you choose to promote decides which promotional ideas will bring you the best ROI. While devising a promotional plan, keep in mind that sales promotion has disadvantages too. So, make sure sales promotion campaign does not harm your brand image at any cost. And finally, always try to avoid price competition wars as much as possible, rather put you all the attention in improving the quality of products by adding more values to it.

Q3. What are Public Relations? Is it confined only to the Marketing Department, discuss.

Ans public relations is "practically as old as society." Some books and universities identify a
Babylonian tablet from 1800 BC as the first example of public relations. They also associate audience segmentation tactics used in gospels, political promotions in Rome and logos used by ancient craftsman as being early examples of public relations. According toScott Cutlip, there is disagreement over whether these ancient events constitute public relations or are part of its history. Most textbooks on public relations consider the antecedents to the field to have originated during the settlement of the New World. Exaggerated promotions were used to attract settlers and the first fund-raising pamphlet, New England Fresh Fruits, was used to raise funding for Harvard. Pamphlets, media outreach and slogans were also used to spread anti-British sentiment. Public relations as a paid profession began in 1900, when the first public relations agency, The Publicity Bureau, was founded. Ivy Lee and Edward Bernays, who are both referred to as the father of public relations, helped establish the field as a professional practice in the United States. Basil Clarke is considered the profession's founder in the UK and Arthur W. Page is considered the father of corporate public relations. The field became more established after World War II, in part due to talent from war-time publicity efforts moving into the private sector. Trade associations, industry publications and academic journals were developed. Some of today's largest PR agencies were founded in the 1950s and began competing globally in Europe and Asia in the beginning in the '60s and '70s.The 1990s were marked by "explosive growth" for the public relations field. Internet technologies and social media changes public relations tactics, agencies consolidated and new specialties were introduced such as investor relations and community relations. The field established a degree of professionalism, though to what extent is debated.

Both marketing and public relations went through such dramatic growth and evolution during the first half of the twentieth century that at least one business historian has referred to this period as their "teen-age years." They both experienced surprising growth spurts and, as they gained increasing influence in the business world, they experimented with new strategies and frequently flexed their muscles as they adjusted to what they were becoming and tried to project a positive and confident self-image. As marketing and public relations expanded their spheres of activities and as they became more aggressive in communicating with more and more and ever-larger publics, they often ended up talking to the same publics, and they sometimes used the same techniques to do it.

But, even when their actions appeared to be similar to outsiders such as the consuming public, the practitioners themselves knew that their two disciplines were conceptually very different. Many took pride in these distinctions and were quick to explain them to anyone who asked. Ray Simon, for instance, expressed them very concisely in his second edition of Public Relations: Concepts and Practices when he wrote: "Marketing and public relations ... both are major external functions of the firm and both share a common ground in regard to product publicity and consumer relations. At the same time, however, they operate on different levels and from different perspectives and perceptions. The traditional view ... is that marketing exists to sense, serve, and satisfy customer needs at a profit. Public relations exists to produce goodwill in the company's various publics so that the publics do not interfere in the firm's profit-making ability." The majority of public relations practitioners and marketers alike would have accepted this distinction without too much quibbling. And, if asked to highlight the differences between their professions, marketers and public relations practitioners would have probably come up with something like the following table.

Marketing promotes the transfer of goods and services from the producer and provider to the consumer.

Public relations
Public relations helps an organization and its publics adapt mutually to each other. Public relations' immediate goal is mutual understanding or positioning of the organization with its publics. Public relations' implicit goal is positive perceptions and predispositions. Public relations' measure of success is expressed public opinion

Marketing's immediate goal is sales.

Marketing's implicit goal is profit.

Marketing's measure of success is the number of sales and/or the

revenue it generates.

or other evidence of public support.

Q4. Your area new sales manager of company selling specialty equipment to hospitals. Your sales force is paid by fixed salary, and you believe that is suffering from motivational problem .discuss how will you handle this problem ?
Ans Q5. Discuss the relative merits and demerits of various modes of entry by a company in the international market.

Ans When an organisation has made a decision to enter an overseas market, there are
a variety of options open to it. These options vary with cost, risk and the degree of control which can be exercised over them. The simplest form of entry strategy is exporting using either a direct or indirect method such as an agent, in the case of the former, or countertrade, in the case of the latter. More complex forms include truly global operations which may involve joint ventures, or export processing zones. Having decided on the form of export strategy, decisions have to be made on the specific channels. Many agricultural products of a raw or commodity nature use agents, distributors or involve Government, whereas processed materials, whilst not excluding these, rely more heavily on more sophisticated forms of access. These will be expanded on later General problems: i) Interlinking of production and marketing means private investment alone may not be possible, so Government intervention may be needed also e.g. to build infrastructure e.g. Israeli fresh fruit. ii) Licensing Definition: Method of foreign operation whereby a firm in one country agrees to permit a company in another country to use the manufacturing, processing, trademark, knowhow or some other skill by the licensor. ii) "Lumpy investment" building capacity long before it may be currently utilised e.g. port facilities Advantages: entry point with risk reduction, benefits to both parties, capital not tied up, opportunities to buy into partner or royalties on the stock. iii) Time - processing, transport and storage - so credit is needed e.g. Argentina beef. iv) Transaction costs - logistics, market information, regulatory enforcement.

Disadvantages: limited form or participation, potential returns from marketing and manufacturing may be lost, partner develops knowhow and so license is short, partner becomes competitor, requires a lot of planning beforehand. v) Risk - business, non-business iv) Joint ventures Definition: An enterprise in which two or more investors share ownership and control over property rights and operation. vi) Building of relationships and infrastructural developments "correct formats" 2. Different methods These are either "direct", "indirect" or "foreign" based. Advantages: sharing of risk and knowhow, may be only means of entry, may be source of supply for third country. Direct - Agent, distributor, Government, overseas subsidiary Disadvantages: partners do not have full control or management, may be impossible to recover capital, disagreement between purchasers or third party - served markets, partners have different views on exported benefits. Indirect - Trading company, export management company, piggyback, countertrade v) Export processing zones Definition: A zone within a country, exempt from tax and duties, for the processing or reprocessing of goods for export Foreign - Licensing, joint venture, contract manufacture, ownership, export processing zone.

Students should give a definition and expand on each of these methods. Advantages: host country obtains knowhow, capital, technology, employment opportunities; foreign exchange earnings; "reputation", "internationalisation". 3i) BarterDefinition: Direct exchange of one good for another. (may be straight or closed or clearing account method) Disadvantages: short term investments, capital movements, employment movements, transaction costs and benefits, not part of economy so alienisation, labour laws may be different, bureaucracy creation. Advantages: simple to administer, no currency, commodity based valuation or currency based valuation. Disadvantages: risk of non delivery, poor quality, technological obsolescence, unfulfilled quantities, risk of commodity price rise thus losing out on an increased valuation, depressed valuation, marketability of products. ii) Countertrade Definition: Customer agrees to buy goods on condition that the seller buys some of the customer's own products in return (may be time, method of financing, balance of compensation or pertinence of compensating product based)

Case study -1
Q1 Discuss what are the challenges to Louis Vitton in reaching its customers? Ans Louis Vuitton India is looking to open more stores, especially in Kolkata and Hyderabad. Singh says the fashion house is now looking at going beyond just hotels. "In Mumbai, because there's nothing available, we are in hotels. We don't want to go to hotels just to have a presence. The visibility and footfall are lower in hotels than malls. If you get 10 clients here, you get 1,000 in malls." Perhaps India is the final frontier to be cracked open by the luxury giant.

Q2 What advertising media would you suggest for the company?

Ans Types

of advertising Media

In terms of overall advertising expenditures, media advertising is still dominated by Press and television, which are of comparable size (by value of 'sales'). Posters and radio follow some way behind, with cinema representing a very specialist medium.

In the United Kingdom, spending is dominated by the national & regional newspapers, the latter taking almost all the classified advertising revenue. The magazines and trade or technical journal markets are about the same size as each other, but are less than half that of the newspaper sectors.

This is normally the most expensive medium, and as such is generally only open to the major advertisers, although some regional contractors offer more affordable packages to their local advertisers. It offers by far the widest coverage, particularly at peak hours (roughly 7.0010.30 p.m.) and especially of family audiences. Offering sight, sound, movement and colour, it has the greatest impact, especially for those products or services where a 'demonstration' is essential; since it combines the virtues of both the 'story-teller' and the `demonstrator'. To be effective, these messages must be simple and able to overcome surrounding family life distractions& mdash;especially the TV remote.

Radio advertising has increased greatly in recent years, with the granting of many more licenses. It typically reaches specific audiences at different times of the dayadults at breakfast, housewives during the day, and commuters during rush hours. It can be a cost-effective way of reaching these audiencesespecially since production costs are much cheaper than for television, though the lack of visual elements may limit the message. In radio advertising it is important to identify the right timing to reach specific radio listeners. For instance, many people only listen to the radio when they are stuck in traffic, whereas other listeners may only listen in the evenings. The 24-hour availability of radio is helpful to reach a variety of customer sub-segments. In addition, it is a well-established medium to reach rural areas.

Though national audience numbers are down, this may be the most effective medium for extending coverage to younger age groups, since the core audience is 15 to 35.

Internet/Web Advertising[edit]
This rapidly growing marketing force borrows much from the example of press advertising, but the most effective useadopted by search enginesis interactive.

Mobile Advertising[
Personal mobile phones have become an attractive advertising media to network operators, but are relatively unproven and remain in media buyers' sidelines.

Audience Research
Identifying the audience for a magazine or newspaper, or determining who watches television at a given time, is a specialized form of market research, often conducted on behalf of media owners. Press figures are slightly complicated by the fact that there are two measures: readership (total number of readers of a publication, no matter where they read it), and circulation (the number of copies actually sold, which is mostly independently validated).

Advertising-free media
Advertising-free media refers to media outlets whose output is not funded or subsidized by the sale of advertising space. It includes in its scope mass media entities such as websites, televisionand radio networks, and magazines. The public broadcasters of a number of countries air without commercials. Perhaps the best known example of this is the United Kingdom's public broadcaster, the BBC, whose domestic networks do not carry commercials. Instead, the BBC, in common with most other public broadcasters in Europe, is funded by a television licence fee levied on the owners of all television sets. A 2006 report by the Senate of Canada suggested that the country's public broadcaster, the Canadian Broadcasting Corporation, be funded sufficiently by the federal government so that it could air without [1] any advertising.

Case study -2 Q1
What factors have contributed to the success of Times of India/ What strategies they have followed in India n market?

Promotion (P) Creating awareness among the people, promoting as brand withfunctional elements like largest circu lated English newspaper, most upmarketnewspaper The company has worked effectively in building TOI as a Nation Brand. It hasconcentrated on promoting TOI as a brand with functional elements like
Ans 1)

Largest circulated English newspaper

Mostup market newspaper

The newspaper with a grip on future. 2) Exposure to readers to different perspectives knowledge regarding various sectors 3) Adoption of world warII strategy called pincer movement strategy4) The Advertising Strategy of Times of India touched every Indians life. They havemoved from functional, circulation based advertising claims to establish an emotionalchord with readers. They have used a set of emotions from hard realty to humor, fromslice of life creative to those celebrate a day in an average Indians life 5) They have shifted to emotional platform where the newspaper is being projected assomething that chronicles the aspirations of Indians. It reflects struggle, turbulence,success and failure in an Indians life. 6) This campaign helped in changing the outlook of people towards the newspaper. 7) Buffet of content with diverse range of interesting news coveringpolitical analysisMetaphysical StoriesLocal & Global CoverageUse of Graphs and illustrationsCartoons & CaricaturesShort & Crisp News. 8) Pricing Factor as compared to competitors they come with combo offer to providemore content of news to people at lesser price further adding new editions to it.Selling newspapers for Rs 75 9) More readers chose times of India because it give them more for less 10) New Editions of newspapers with more content and exposure to sports, education,Business, Entertainment et
Q2 Evaluate the advertising campaign of Times of India. What are the learning lessons from these
campaigns? ANS There are 300 newspapers in India. The Times of India is the largest English newspaper

in India and second largest English broadsheet newspaper in the world. There are more than 8 million readers who pick up TOI everyday in India. This represents a growth of almost 30% to the previous year and defies the gleaming outlook towards newspaper industry due to advent of television in India. It is the reigning king in most of the cities in India. The Times of India offers the largest reach among newspapers in socio economic categories most coveted by advertisers- sec A and sec B and eight of every ten readers belong to sec B class. It is ranked as the six best newspapers of the world. Just ten years ago this newspaper was sold only 845000 copies and today its circulation has gone well above three million copies a day. The company has followed a world warII strategy called pincer movement strategy. It

isbased on twin thrust of editorial value additions and audacious pricing. More readers chose times of India because it give them more for less. Q3
Suggest an advertising campaign for Times of India covering the objectives, message and media de cisions? Ans The advertising campaigns can be classified as a set of unified and well planned

programs in which the finger is on the pulse of the audience. The advertising campaign of TOI tries to touch every Indians life. They have moved from functional, circulation based advertising claims to establish an emotional chord with readers. They have used a set of emotions from hard realty to humour, from slice of life creative to those celebrate a day in an average Indians life. The common thread has been a distinct true to India style, which has led to appreciations from readers and a host of awards in various advertising functions. The campaigns represent the period in which we live. The 50 years of freedom campaign launched in 1997 subtly brought out the various facets of life in India. The advertisements have highlighted the Indian-ness in all the campaigns and reflected how TOI is a part of this great journey of Indian-ness. Now they need to move ahead and develop a campaign which can highlight their success and also build similar brand values across all the newspapers and supplements.