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NOTES ON

ADVERTISING & PUBLICITY MANAGEMENT


For

7th Semester BBA LLB(Hons.)

Prepared By on 12/08/2017

AJAY RATNAN
8/5 BBA LLB(Hons.)

GLCK

CONTENTS
Title Page No.
MODULE 1 2
MODULE 2 20
MODULE 3 36
MODULE 4 43
MODULE 5 52
MODULE 6 71

Disclaimer: This document is a product of extracts from various sources. It is intended for
personal use. The material is intended for educational purposes only (Free of charge).
Reproduction of the material for any purposes other than what is intended is prohibited. Use
this material at your own risk and discretion.
NOTES ON ADVERTISING & PUBLICITY MANAGEMENT

MODULE 1
DEFINITION/MEANING
The word advertising comes from the Latin word "advertere” meaning” to turn the minds
towards".
Some of the definitions given by various authors are:
According to William J. Stanton, "Advertising consists of all the activities involved in
presenting to an audience a non-personal, sponsor-identified, paid-for message about a product
or organization."
According to American Marketing Association "advertising is any paid form of non-
personal presentation and promotion of ideas, goods and services by an identified sponsor".
Advertising is used for communicating business information to the present and prospective
customers. It usually provides information about the advertising firm, its product qualities,
place of availability of its products, etc. Advertisement is indispensable for both the sellers and
the buyers. However, it is more important for the sellers. In the modern age of large scale
production, producers cannot think of pushing sale of their products without advertising them.
Advertisement supplements personal selling to a great extent. Advertising has acquired great
importance in the modern world where tough competition in the market and fast changes in
technology, we find fashion and taste in the customers.
FEATURES OF ADVERTISING
1. Communication: Advertising is means of mass communication reaching the masses. It is a
non-personal communication because it is addressed to masses.
2. Information: Advertising informs the buyers about the benefits they would get when they
purchase a particular product. However, the information given should be complete and true.
3. Persuasion: The advertiser expects to create a favourable attitude which will lead to
favourable actions. Any advertising process attempts at converting the prospects into
customers. It is thus an indirect salesmanship and essentially a persuasion technique.
4. Profit Maximisation: True advertising does not attempt at maximising profits by increasing
the cost but by promoting the sales. This way It won’t lead to increase the price of the product.
Thus, it has a higher sales approach rather than the higher-cost approach.
5. Non-Personal Presentation: Salesmanship is personal selling whereas advertising is non-
personal in character. Advertising is not meant for anyone individual but for all. There is
absence of personal appeal in advertising.
6. Identified Sponsor: A sponsor may be an individual or a firm who pays for the
advertisement. The name of reputed company may increase sale or products. The product gets
good market because of its identity with the reputed corporate body.
7. Consumer Choice: Advertising facilitates consumer choice. It enables consumers to
purchase goods as per their budget requirement and choice. Right choice makes consumer
happy and satisfied.
8. Art, Science and Profession: Advertising is an art because it represents a field of creativity.
Advertising is a science because it has a body of organised knowledge. Advertising is
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profession is now treated as a profession with its professional bodies and code of conduct for
members.
9. Element of Marking Mix: Advertising is an important element of promotion mix.
Advertising has proved to be of great utility to sell goods and services. Large manufactures
spend crores of rupees on advertising.
10. Element of Creativity: A good advertising campaign involves lot of creativity and
imagination. When the message of the advertiser matches the expectations of consumers, such
creativity makes way for successful campaign.
OBJECTIVES OF ADVERTISING
1. To introduce a new product by creating interest for it among the prospective customers.
2. To support personal selling programme. Advertising maybe used to open customers'
doors for salesman.
3. To reach people inaccessible to salesman.
4. To enter a new market or attract a new group of customers.
5. To light competition in the market and to increase the sales as seen in the fierce
competition between Coke and Pepsi.
6. To enhance the goodwill of the enterprise by promising better quality products and
services.
7. To improve dealer relations. Advertising supports the dealers in selling the product.
Dealers are attracted towards a product which is advertised effectively.
8. To warn the public against imitation of an enterprise's products.

IMPORTANCE OF ADVERTISING

Benefits to Manufacturers

1. It increases sales volume by creating attraction towards the product.


2. It helps easy introduction of new products into the markets by the same
manufacturer.
3. It helps to create an image and reputation not only of the products but also of the
producer or advertiser. In this way, it creates goodwill for the manufacturer.
4. Retail price, maintenance is also possible by advertising where price appeal is the
promotional strategy.
5. It helps to establish a direct contact between manufacturers and consumers.
Benefits to Wholesalers and Retailers

1. Easy sale of the products is possible since consumers are aware of the product and its
quality.
2. It increases the rate of the turn-over of the stock because demand is already created by
advertisement.
3. It supplements the selling activities.
4. It ensures more economical selling because selling overheads are reduced.
5. It enables them to have product information.

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Benefits to Consumers

1. Advertising stresses quality and very often prices. This forms an indirect guarantee to
the consumers of the quality and price. Further large scale production assumed by
advertising enables the seller to seller product at a lower cost.
2. Advertising helps in eliminating the middlemen by establishing direct contacts between
producers and consumers. It results in cheaper goods.
3. It helps them to know where and when the products are available. This reduces their
shopping time.
4. It provides an opportunity to the customers to compare the merits and demerits of
various substitute products.
5. This is perhaps the only medium through which consumers could know the varied and
new uses of the product.
6. Modern advertisements are highly informative.
Benefits to Salesmen

1. Salesmanship is incomplete without advertising. Advertising serves as the forerunner


of a salesman in the distribution of goods. Sales is benefited the advertisement in
following ways:
2. Introducing the product becomes quite easy and convenient because manufacturer has
already advertised the goods informing the consumers about the product and its quality.
3. Advertising prepares necessary ground for a salesman to begin his work effectively.
Hence sales efforts are reduced.
4. The contact established with the customer by a salesman is made permanent through
effective advertising because a customer is assumed of the quality and price of the
product.
5. The salesman can weigh the effectiveness of advertising when he makes direct contact
with the consumers.
Benefits to Community or Society

1. Advertising, in general, is educative in nature. In the words of the late President


Roosevelt of the U.S.A., “Advertising brings to the greatest number of people actual
knowledge concerning useful things: it is essentially a form of education and the
progress of civilization depends on education.”
2. Advertising leads to a large-scale production creating more employment opportunities
to the public in various jobs directly or indirectly.
3. It initiates a process of creating more wants and their satisfaction higher standard of
living. For example, advertising has made more popular and universal the uses of such
inventions as the automobiles, radios, and various household appliances.
4. Newspapers would not have become so popular and so cheap if there had been no
advertisements. The cheap production of newspapers is possible only through the
publication of advertisements in them. It sustains the press.
5. It assures employment opportunities for the professional men and artist.

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SELECTION COPY AND MEDIA


Advertising Copy
An advertising copy is the means by which the advertiser’s ideas are given expression to in a
message to readers. Regardless of its length and brevity copy refers to all the reading matters
of an advertisement, including the headline, sub- headlines, text or body, and the name of the
firm or the standard initials. The first copy conforms to the requisites of a good copy. A
copywriter must take pains in making up a sound advertisement copy containing its various
components i.e. headlines, subhead lines, illustrations etc. The following are the main
components of an advertisement copy
A Copy means a written matter in any advertisement. It may consist only one word or many
words. A copy consists of headlines, subheads, captions etc. The copy supports the illustration
and contains description of the products merits, demerits, uses, services etc.
1. Background. The background for the advertisements should be somewhat catchy and
colourful. The arrangement of background differs from medium to medium and
advertisement to advertisement. In short, background should be suitable for the contents
of the advertisement.
2. Border. It is defined as the frame of the advertisement. Border is employed to impart
the reading atmosphere. The border may be light or heavy, obvious, plain or fanciful.
The border may also contain a logo.
3. Caption. It refers to the subtitle. But in most of the advertisement it is converted into
heading or sub-heading.
4. Coupon. Coupon is that part of the advertisement which is intended for the
convenience of the prospective customer in communicating with the advertiser. The
coupon must contain the name and full postal address of the firm followed by the offer.
The offer should be brief and clear. There should be space for name and address of the
prospective customer. The usual shape of the coupon is triangular or rectangular.
5. Decoration. Advertisement decoration is the ornament of the advertisement. This is
done to emphasis the advertisement message.
6. Heading. The heading or headline is defined as the title of the advertisement. The
words in the heading should be short.
7. Illustration. Illustrations are the part of layout that pictures the basic theme of the
advertisement. It has the power to capture the attention of the reader. The
advertisements become richer by the use of illustrations.
8. Mascot. It is known as the trade character or trade figure. It is an illustration of either
a real or an imaginary figure or personality given in the advertisement.
9. Name Plate (logo) The name plate or name block is the signature of the advertiser. It
represents the personality of the company and its product.
10. Price It is another part of layout. The price of the product should be featured clearly.
The price is usually taken in the concluding lines of the copy.
11. Product It refers to the representation of the product offered for sale. A very popular
practice is to show the product in use with illustrations.
12. Slogan. Slogan is a sales argument. The arrangement of slogan in the layout is
determined by the importance of its relation to the advertising message.
13. Space. Space refers to the entire space left in the space hired by the advertiser. This
depends on the design of the copy.

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14. Subheading. It is a secondary heading. It is given to support the heading or to pick out
the various selling points given in the text.
15. Text. Text or body of the advertisement refers to the general reading matter. It is the
subject matter of the copy. It should be neither too wide nor too narrow.
16. Trade mark. It is a word or design by which a product is defined. If the trade, marks
are registered it can be included in the layout.

QUALITIES OF ADVERTISEMENT COPY-

The important of a good advertisement copy can hardly be overemphasized. All the planning,
research and expense would go waste if proper care is not taken in drafting an advertisement
copy that will achieve the purpose of advertising. The psychological aims of an advertisement
are that the public must be made to (i) look, (ii) like, (iii) learn and (iv) buy. In other words, a
scientifically drafted copy should (a) attract primary initial attention, (b) hold attention in an
interesting way, awaken and stimulate interest, (c) bring about an association of impression
which will have permanence or memory value, (d) convince persuade, and induce to purchase
the product, and (e) suggest and lead to specific response to encourage the decision to buy.

The person who drafts and prepares the copy, must be thoroughly acquainted with the mental
process and be imaginative enough to think of words and patterns which may produce at desired
effect on prospects i.e., it must create an urge in the minds of prospects to go for the product
advertised.

Selection of a right type of advertising media is a difficult task. Any media that is selected
must be capable of accomplishing at least the three main objectives:
1. It must reach the largest number of people possible.
2. It must attract their attention.
3. It must be economical.
But in practice there is hardly any single media that satisfies the above three objectives. There
are number of advertising media choices available to the company in India. However, the real
managerial task is to identify from among them the one (s) which is relevant for the company.
For this purpose, the management should consider the following factors:
1. The Nature of the Product: The nature of the product determines the choice of the
advertising media. For instance, cinema, television, colour periodicals would be the obvious
choice for products like fabrics and toilets requiring visual presentation. In this connection,
management should develop a product-media match.
2. Market Requirements: While selecting advertising media, the company’s market
requirements should be considered. When they meet these requirements, they lend themselves
to good use. For example, specialised high fashion colour magazines would be the proper
media for consumers with high income groups and sophisticated tastes. Similarly, outdoor
media would be appropriate when consumer action is to be induced at the point of purchase.
3. Advertising Objectives: The advertising objectives also determine the type of media to be
selected. For example, the press is preferred to project corporate image while radio and
television is relevant for product advertising.
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4. Distribution Strategy: The advertising media should be compatible with the distribution
strategy adopted by the company. For example, if the company is selling through middlemen
wholesalers and retailers etc., then outdoor advertising media duly supported by television,
radio and cinema etc. may help to pull the product out of channel.
5. Nature of the Message and Appeals: The nature of advertising message appeal also
determines the advertising media for a company. The media should be able to carry the message
and appeal to the right persons in the perspective. For example, if time is the essence of
communication, daily newspaper and radio may be the best choice. Mass consumption items
like soaps, toothpastes, hair oil etc. may determine television, newspapers as the best selection.
6. Budget: The budget available for advertising purpose will decide the choice of media of
advertising. For example, a manufacturer having comparatively large funds for advertising may
choose television or radio or both as a media of advertising. On the other hand, a medium or
small sized businessman may prefer newspaper and magazine as an advertising media.
7. Competitors Choices: A company should also take into account the wisdom of competitors’
media choices despite differences in advertising objectives and appropriations. It is not
desirable to outright dismiss their choices. Generally, the advertising media used by
competitors are preferred so as to make an impressive appeal for the product.
8. Media Circulation: The company should take into account the circulation of the advertising
media. Media circulation must match the distribution pattern of the product. This applies to the
press media. Circulation should not be confused with readership. Circulation means the number
of copies sold after deduction of free copies, returns and other differences between the total
number of printed copies and total number sold at full price. The advertising media selected
should have maximum circulation, such as Hindustan Times etc.
9. Media Availability: The question of media availability is quite relevant while considering
advertising media alternatives because not all medias are available to a company at all times
whenever 40 required. For instance, in 1973, and 1974, owing to acute newsprint shortage,
space availability in national dailies was a real problem.
10. Penetration: How can we penetrate the market most thoroughly or how can we reach the
greatest number of potential customers is also an important factor influencing the choice of a
particular advertising media. Shall we reach housewives at the kitchen-sink by means of
television or radio and which is likely to have the greater impact? This fact should be
considered.
11. Size and Nature of the Business Enterprise: The size and nature of the business enterprise
also play an important part in making a choice for the advertising media. Different media will
suit to departmental stores, chain stores, small shops, manufacturers and producers etc. A big
business enterprise may make use of television, radio and newspapers having national network,
whereas a small unit may prefer local newspapers and cinema-slides etc.

PRESS NEWS PAPER MAGAZINE AND JOURNAL


Press advertising is the most popular and effective method of publicity today. It has become
the part of the culture and political life of people today. Press, also referred to as print, is an
advertising media comprising all those vehicles owned by others and which can carry the

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advertising message in print to be read by target customers. In India, this media is very
commonly used by companies and account for nearly 70 per cent of their total expenditure on
advertising media.
Forms or Types: Press advertising takes the following two major forms:
1. Newspapers: NP Newspapers are bought largely for their news values. Newspapers
may be national/local daily/weekly. These are 48 a good vehicle to pass on information
about new products, current products and price-off deals. They can be used for local,
national and regional market coverage. In India, there are a number of newspapers both
in English and also in regional languages. Many newspapers in English and Hindi have
nationwide coverage. So, a message given in newspapers may have a better impression
on the minds of the people and it may be more specific, clear, complex and lengthy.
Currently, 1173 daily newspapers and 5280 weekly newspapers are published in India,
out of which the largest number is accounted for by the Hindi language newspapers
followed by Urdu, Marathi and English newspapers in terms of number, and English,
Hindi, Malayalam, Marathi and Gujarati in terms of circulation. Among the states, the
largest number of newspapers are published in Uttar Pradesh followed by Maharashtra
and Karnataka. Among the prominent national English language dailies are the Times
of India, Hindustan, Indian Express, Statesman and Economic Times etc., whereas
among the national Hindi language dailies include Hindustan Times, Navbharat Times,
National Dunia and in Rajasthan - Rajasthan Patrika.

Merits of newspaper advertising media


1. Their coverage is high as they reach every nook and corner in a very short time.
2. They offer a lot of flexibility. According to the convenience and necessity of the
advertiser, the shape, size and appeal may be frequently changed to suit the need of the
advertiser.
3. High frequency enables speedy preparation and publication of advertisement.
4. It is the cheapest media of advertising as far as its cost per reader is concerned.
5. The daily newspaper have strong repetitive value as it offers an opportunity to the
advertiser to repeat is message at a short interval of only one day.
6. The public response towards newspaper advertising is very quick.
7. By inserting local advertisements (in local newspapers), the effectiveness of
advertising copy could be tested quite easily.
8. By inserting frequent advertisements in the newspapers, their visual appeals may be
created very easily.
9. The reputation of the newspapers is available to the advertisers and their products
also. Leading newspapers provide space to reputed and reliable concerns only.
10. Newspaper advertising provides geographic selectivity.

Demerits or Limitations of Newspaper Advertising Media:


1. The life of a newspaper is very short, i.e., only for the day. It is said, “Nothing is
alive as today’s newspaper” and “Nothing is dead as yesterday’s newspaper.”

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2. There is waste of circulation. The advertisement is carried even to those places


where there is no market existing nor the possibility of creating a new market in the
near future.
3. If the customers are limited in numbers, advertising in newspapers may be
ineffective and costly too.
4. Visual effects may not be created in practice as the newspapers are generally printed
on cheap newsprint.
5. There is lack of uniformity in advertising requirements. Lack of uniformity of
publishers‟ requirements with respect to rates, size, type of copy and so on.
6. Newspaper advertising is less popular in undeveloped countries where the masses
are illiterate ignorant and poor.
What is Trade Journal?
A publication covering, and intended to reach, a specific industry or type of business.
2. Magazines and Journals: Another media under press advertising media is magazines
and journals. They offer selective circulation throughout the country at a cost within
reasonable budget limits. These are published periodically at regular intervals, i.e.,
weekly, fortnightly, monthly, quarterly or annually. Magazines and Journals are read at
leisure and with care when the reader is mentally prepared to receive the
advertisements. It has a long effective life. From the advertiser’s point of view,
magazines may be classified under five groups: (i) Special Interest Magazines; (ii)
Trade Magazines; (iii) Technical Magazines; (iv) Professional Magazines; and (v)
Regional Magazines.

Merits of Magazines and Journals:


1. The life of magazine is considerably longer than that of newspapers. These are kept
ready for weeks and months.
2. Better reproduction of advertisement than newspapers are provided.
3. Magazines are highly selective in nature and waste of circulation is avoided.
4. Magazine advertising create prestige, reputation and an image of quality.
5. The number of readers per copy in case of magazine advertising is quite high. There
is multiplicity of readership.

Demerits or Limitations of Magazine and Journal Advertising:


1. The chief demerit of magazine advertising is its low flexibility.
2. Preparation costs for magazine copy are usually rather high and sometimes exceed
the cost of the space used in trade magazines.
3. The circulation is limited as compared to newspaper advertising.
4. It takes more time in printing etc. than newspaper advertising.
5. The size of magazines differs widely and hence the advertiser has to prepare the copy
of advertisement according to the size of the magazine and journal.
6. Change in appeal cannot be effective quickly

A HOUSE ORGAN (also variously known as an in-house magazine, in-house


publication, house journal, shop paper, plant paper, or employee magazine) is
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a magazine or periodical published by a company for its customers or its employees. This name
derives from the use of "organ" as referring to a periodical for a special interest group.
House organs come in two types, internal and external. An internal house organ is meant for
consumption by the employees of the company as a channel of communication for the
management. An external house organ is meant for consumption by the customers of the
company, and may be either a free regular newsletter, or an actual commercial product in its
own right.
An example of a commercial house organ is the Avalon Hill General. This had no outside
advertising (usually a major portion of a magazine's budget). It featured news, strategy articles,
variants, and essays on game design—all about Avalon Hill games.
Meaning of Outdoor or Mural Advertising: Outdoor or mural advertising is the oldest form
of advertising and remains the most common media even today. It is also called „wall
advertising‟. Outdoor advertising consists of a display of advertisements out of door which
may be in the form of posters, painted signs, field signs, neon light signs, hoardings and posters
carried by sandwich-men. This is also referred to as mural advertising as posters consisting of
a picture, are often placed on walls particularly a large one, printed directly on a wall or large
photograph attached directly to a wall. Small play cards or posters placed outside or inside
carriages such as trams, delivery-vans, buses, railway carriages etc. also come under this
category. The new form of advertising by using balloons, kites and smoke-writing in the sky is
also a part of outdoor advertising. Outdoor advertising is not always argumentative but
suggestive. The effectiveness of such advertising materially depends on its positions.
Therefore, outdoor advertisements must be placed in such a way as can be seen by a large
number of prospective customers with ample attention. The articles suited for such advertising
are those which the masses can buy, such as food products, soaps, medicines, cigarettes, shoes,
clothes and other domestic requirements.
Main Characteristics of Outdoor Advertising
1. It is a widespread popular advertising media which makes the goods and services of interest
to mass appeal.
2. It has a comparatively longer life.
3. It has a high coverage.
4. Most outdoor advertisements are big and dominant so it is a very powerful eye-catching
media.
5. It is a very flexible advertising media so that the advertiser can retain sites where he needs
them most.
6. It is the oldest advertising media.
7. It also consists of suitable and popular slogans which can be easily remembered by the
prospects.
Types, Forms or Kinds of Outdoor Advertising
1. Posters: This is the most common and popular form of outdoor advertising. These are
exhibited on a hoarding or on walls, roofs, fences, chimneys etc. A really commanding effect
can be produced by posters which cost less than any other advertising media. Design is the
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basis of all poster-advertising. These mostly contain pictures. Advertising for a movie is done
in this way. Even where no pictures are used, the proper arrangement of lettering is important.
The posters should be simple, attractive and capable of telling its story at a glance. Posters also
give considerable scope for the use of suitable and attractive colours. Humour can also be used
with advantage in poster-advertising.
2. Advertising Board: These are also posters which are kept at certain fixed places especially
at points where people frequently assemble, such as bus stops, railways, crossings etc.
Generally, these advertising boards are made of metallic sheet enclosed in a wooden frame and
fixed with a panel having specified height at main junctions. These are fixed and well set with
flood-lights.
3. Vehicle Advertising: It refers to moving advertisement. It consists of placing posters or play
cards inside or outside vehicles such as trams, buses, taxies, delivery-vans, railway carriages
etc. The main advantage of this system is the small space available for such posters. These
posters are fairly sighted by the eyes and can be easily read. This method is a very common
media and is considered to be very effective.
4. Electric Displays and Signs: Signs illuminated by electricity are today to be seen in large
number in cities. This is the most modern and the most attractive form of outdoor display. It
may consist of wooden letters studded with bulbs. Sometimes with a view to attract the
attention, coloured bulbs are used and the colours are changed at short intervals. Another device
used to attract attention is to turn on the light on each letter at a time to give the impression of
the sign being written by an invisible hand.
5. Neon Signs: There are brilliantly coloured tubes available in various shades. These can be
of the still or the flashing type. These signs are more attractive and interesting than the signs
built up by a number of electric bulbs.
6. Sky Advertising (Sky Writing): Sky advertising is another modern form of outdoor
advertising. In this form of advertising media an aeroplane writes the name of the product or
the producer in the sky. It is also known as „smoke writing‟ because the message is written in
the sky by means of smoke. Large sized printed balloons are also dropped from the aeroplane
in the sky. Usually, near the circus-tents, a large sized balloon is floated on which the name of
the circus is written
Merits of Outdoor Advertising Media
1. It has a wide coverage.
2. It is capable of gaining more attention of the public.
3. Outdoor advertising is more useful for local dealers. Its results can be more readily secured
by using this form of advertising.
4. In big cities and high traffic areas, outdoor advertising is the most effective form of
advertising.
5. Outdoor advertising is more flexible.
6. It offers greater selectivity because it can be used locally, regionally or even nationally.
7. It can be easily remembered.

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8. It is quite economical.
9. It has comparatively long life.
10. It is a very good media to stress brand names and package identity.
Demerits or Limitations of Outdoor Advertising Media
1. It is subject to adverse reaction of the public on the ground that the walls of the houses are
used for writing outdoor advertisement even without the permission of the owner of the house.
2. The message written under this type of advertising is too brief.
3. The exact effect created on prospects is difficult to measure.
4. The language used in writing on the wall advertising is usually defective and sometimes
immoral too. It has an adverse effect on the public.

Women and Children’s Magazines


According to statistics, women read more than men. Women know how to read properly, while
men have a desultory and, at best, casual approach to books: this is the finding of a survey into
the nation's literary habits. Out of the top magazines in the country, almost 60 % of the readers
belong to Female Gender. This statistic alone would be sufficient to indicate the importance of
advertising in women’s magazine. The primary aim of advertising is to get a message over to
a large number of people. There are many modes of advertising and in that Magazines also
finds a crucial role. When women’s magazines are the most sought magazines in the world, it
is not only logical but also economical to advertise in them to achieve a maximum result.
Children’s Magazines play another role of engaging the minds of parents. Children are only
the end-users of the magazine, but the real buyers are parents, who are vulnerable to the
emotional appeals of their children. So advertising products like toys, chocolates etc through
children’s magazine will help in the sale of product by emotional appeal. Children themselves
become the salesperson urging their parents to buy a particular product. But, the products that
could be advertised in children’s magazine falls in a very narrow category.

Souvenir
A souvenir, memento, keepsake, or token of remembrance is an object a person acquires for
the memories the owner associates with it. A souvenir can be any object that can be collected
or purchased and transported home by the traveller as a memento of a visit.
Gordon (1986) defined souvenirs as some specific objects that reminded certain journey or
incident. The existence of souvenirs could help visitors explore definition and stay in contact
with a travel experience not long ago, and tourists purchase souvenirs as a proof of the places
they have visited. Swanson thought souvenirs were specific objects that served as reminders of
a special event or memory, and this included post cards, T and this included post cards, T -
shits, and local crafts. shits, and local crafts.
Gordon (1986) proposed that souvenirs could be put into five categories: • (1) Pictorial images
Litera

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(1) Pictorial images – such as postcards, photographs, illustrated books about particular
regions, and Poker cards with local images. •
(2) “Piece-of-the-rock” souvenirs – these were usually natural materials or objects such as
ature reviethese were usually natural materials or objects, such as rocks, shells, or pinecones,
taken from the natural environment. •
(3) Symbolic shorthand souvenirs – these were usuall y manufactured products in lar ge ew
y pg quantities, and was related to a real object or monument, presenting a landmark scenery.
» Examples included a miniature Eiffel Tower from Paris, France or a miniature building of
New York City.
(4) Some types of souvenirs might offer no reference to a offer no reference to a particular
place and are inscribed with words which, identifies them in place and time. – For example, a
T-shirt, which had little meaning by itself but was marked “Grand Can yon” became a souvenir
full of memories.
(5) Local product souvenirs – this kind of souvenirs included a variety of objects such as
ethnic foods and crafts that could be brought back.
Industrial Advertising: This type of advertising is used by manufacturers and distributors of
industrial goods. Such as, machinery, plants, equipments, spare parts and components, and are
directed at industrial users or customers. Such advertisements usually appear in trade journals,
trade dictionaries, business magazines and so on. The appeal made is tactual and rational.

Booklet Advertising
In a simple definition, a booklet is a standard tool for advertising, used mainly by corporations
and usually they contain various information, reports, achievements, portfolio and goals. A
booklet has a limited number of pages and you can find it in receptions, conference rooms,
waiting rooms or just laying around on a table. it must be extremely well made and very
informative in order to focus users’ attention and effectively convey the message. Don’t forget
that time is precious and not everybody will want to read a whole book (even if it’s small) just
to look at a product.
A booklet printing is effective when the consumer already knows the product and he wants
more details, so in most cases it will be useless to give it to someone who is not interested.
Comparing it with a standard advertising image, the second one is better when you want to
introduce a potential costumer to your product.
Two or four pages with all the information and the rest with useful images. A person should
finish reading it in a few minutes, and by the point he’s done, your booklet must leave the
feeling that he needs your product.
Also, you can just hand over booklets to every stranger in the street. You need to have a show
point, a place where everybody can find them.

Direct Mail Advertising

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Direct Mail: It consist of brouchers, leaflets, pamphlets, letters and return cards addressed to
consumers. This method of advertising uses postal and other delivery services to ship
advertising materials, including postcards, letters, brochures, catalogues and flyers, to a
physical address of targeted customers. Direct mail is most effective when it is designed in a
way that makes it appear to be special to the customer. For instance, a marketer using direct
mail can personalize mailings by including a message recipient’s name on the address label or
by inserting their name within the content of marketer’s message.
Direct mail can be a very cost-effective method of advertising, especially if mailings contain
printed material. This is due to cost advantages obtained by printing in high volume since the
majority of printing costs are realized when a printing machine is initially setup to run a print
job and not the because of the quantity of material printed. Consequently, the total cost of
printing 50,000 postcards is only slightly higher than printing 20,000 postcards but when the
total cost is divided by the number of cards printed the cost per-card drops dramatically as more
pieces are printed. Obviously, there are other costs involved in direct mail, primarily postage
expense.
While direct mail can be seen as offering the benefit of a low cost-per-contact, the actual cost-
per-impression can be quite high as large numbers of customers may discard the mailing before
reading. This has led many to refer to direct mail as “junk mail” and due to the name some
marketers view the approach as ineffective. However, direct mail, when well-targeted, can be
an extremely effective promotional tool.

FILM ADVERTISING
Meaning: Film is an audio-visual medium of communication and offers wide opportunities to
the advertiser to screen commercial films and slides produced by them. Today cinema is an
important and effective media of advertising. Suitable short films may be prepared to create a
lasting impression upon the audience. These may be presented in the form of a story or a
cartoon. Through the merits of the product are presented to the audience effectively. Such films
may be shown before the start of the feature film or during interval. At present there are three
kinds of films used as media of advertising: Kinds of Films :

1. Straight Advertising Films: These are most common now-adays. These concentrate
on advertising message relating to only one product of a particular company, such as
Hindustan Lever, Tata Oil Mills (toilet preparations), D.C.M., Gwalior Rayon, Calico
etc. These are of short duration lasting from 3 to 5 minutes.
2. Documentary Films: Documentary films are mainly used for publicity aspect and in
most cases, is educative in character. They are used to show various aspects of an
industry as a whole.
3. Sponsored Advertising Films: It is a very good combination of advertisement and
entertainment. Cartoon films come under this category.
In India, cinema has practically reached in all the parts of the country. Bombay has become the
hub of advertising films and slides production. With all these, cinema as an advertising media
holds great opportunities particularly, for those companies which are poised to penetrate the

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rural market of our country. It is particularly relevant for advertising consumer-products and
farm inputs.
Advantages or Merits :
1. It has a quite wide coverage.
2. It is able to explain and demonstrate the use of a product quite conveniently.
3. Appeal is made to all sections of the society.
4. It is never wasted as no advertisement can escape the attention.
5. It is effective and may pay rich dividend to the advertiser.
Disadvantages, Demerits or Limitation
1. The films are too short and need changes frequently.
2. Production cost of a film is quite high.
3. The audience may not like to waste time in seeing such films repeatedly. They resent
to it as they come for entertainment only.
4. Restrictions are imposed against screening of films, e.g., there is censoring.
5. For screening films, the cooperation of theatres is a must which is not easily available
.
Use of Illustrations in Advertising
An illustration is a decoration, interpretation or visual explanation of a text, concept or process,
designed for integration in published media, such as posters, flyers, magazines, books, teaching
materials, animations, video games and films.
A picture is worth a thousand words
Illustrations are graphic images that clarify text, direct the viewer's eye, and create an
intentional, lasting impression. In that sense all illustration art is, by definition, advertising.
It advertises and enhances the message of the text it accompanies, and persuades the
viewer to read the text.

Features/uses

Accurate Use of Illustrations: The illustrations are being used to draw attention and promote
a product or service. Therefore, illustrations should blend in well with the overall theme of the
advertisement campaign and not stick out like a sore thumb. If it does, then visuals become
counterproductive and instead of drawing attention to the message being conveyed, the
illustrations will distract the audience and the message will be lost.
Awareness of Target Audience: The manner in which the advertisement campaign is planned
and the illustrations are used will depend entirely on the target audience. The message of the
advertisement has to be compiled keeping in mind the gender, age and other important details
of the potential customers. Illustrations can be used to provide clarity and precision to the
advertisement if there is a clear and sharp focus on the target
Balance of illustrations and text: For maximum impact, the advertisement should have the
correct balance of illustrations and the text. Too many illustrations or too much text will only
confuse the potential customer. Illustrations should be attractive and in sync with the text. Both
the quality and the quantity of illustrations used should enhance the effectiveness of the
advertisement campaign. The text should be clear, precise and useful in delivering the message
with regard to the product or service. Placement of all the elements in the
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advertisement, including, visuals, text and background, should be done by a well-trained


professional for a great overall effect.
Acting on Feedback: Since an advertisement campaign is all about audience response, it is
important to gather as much feedback as possible before it is launched online or in print.
Depending on the feedback received, the advertisement can be amended, as required, for
maximum effectiveness. Feedback will not only help in enhancement of the advertisement but
will also weed out all the mistakes in the visuals and the text before it is viewed by the actual
audience.
Illustrative Advertising Campaign Advantages
Advertising thrives on creativity, and Illustration as a visualization media, when brought into
the creative problem-solving process, can expand the range of conceptual solutions for
advertising messages.
• Pictorial Advantages
Illustration can show what it would be like to walk on the bottom of the ocean, fly
through the atmosphere of Venus, or swallow a cow. It can picture subjects and
communicate concepts that cannot be documented photographically, such as bipolar
disorder; electrons, protons and neutrons in action;
• Stylistic Capability
Through the application of stylization an illustration can convey exaggeration, attitude,
emotion, expression, and personality. Through artistic methods, it can convey a stylistic
uniqueness that is difficult for photography to impart.
• Cost Effectiveness
Illustration can be a very cost-efficient way to implement advertising concepts.
Especially photographic ones that would require location work, extensive sets, actors,
props and post production digital manipulation. Illustration not only can be used to
visualize unreal concepts, it can also be used to pictorialize photographable subjects at
a much lower cost.
RADIO ADVERTISING
It provides a very large coverage of audience in urban and rural areas. Now almost every family
has a radio set in our country. Radio advertising in India was started in 1967 when a commercial
service on „Vividh Bharati‟ was started. Commercial Broadcasting is quite popular throughout
the country. Commercial broadcasting is a major source of income. Today, radio advertising is
extremely popular with both trade and industry as the demand exceeds the time. Radio
advertising may be described as „word of mouth advertising on a wide scale‟. The advertiser
delivers the message orally and not visually. It makes appeal to the ear and not to the eye with
the effect that the message is conveyed to the masses whether literate or illiterate.
Advantages or Merits of Radio Advertising Radio advertising is quite popular in India on
account of the following advantages:
1. It has a wide coverage. Even illiterate people are covered under this media. It can
convey message even to small remote areas.
2. It is quite flexible as it can be used on a national or local level according to the need.
3. It gives message of the advertiser at the door of the prospects when they are in a
respective mood.
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4. It easily catches the attention of the people.


5. Today radio advertising is a major source of income.
6. It claims the advantage of memorising value. In this connection, psychologists say that
anything learnt through the ears is not easily forgotten.
7. Radio advertising affords variety of programmes including entertainment on account of
which the goodwill is developed. People buy the product advertised by radio because
they enjoy the free show.
8. Radio advertising has human touch unequalled by any other media.
Disadvantages, Demerits or Limitations of Radio Advertising
Radio advertising has the following disadvantages, demerits or limitations:
1. The message given by radio advertising is short-lived.
2. It is costly and is beyond the reach of small and medium sized advertisers.
3. It only appeals to the sense of hearing and thus does not portray visually a picture of
the package of the product.
4. It is not suitable for all kinds of products, such as industrial goods which are not needed
by the average radio listener. It is useful only for the goods of common use.
5. Radio advertisements are very brief and thus details cannot be elaborated.
6. Since there is a multiplicity of advertisements in a very short time, it is most likely that
the listener may forget the name of the product.
7. There is no possibility of demonstration in case of radio advertising.
8. It is a selective media of advertising.
Radio Jingles
A jingle is a short song or tune used in advertising and for other commercial uses. The jingle
contains one or more hooks and meaning that explicitly promote the product or service being
advertised, usually through the use of one or more advertising slogans. Ad buyers use jingles
in radio and television commercials; they can also be used in non-advertising contexts to
establish or maintain a brand image. Jingles are a form of sound branding. Many jingles are
also created using snippets of popular songs, in which lyrics are modified to appropriately
advertise the product or service.
A jingle is a radio or TV advertising slogan set to a (hopefully) memorable melody. Jingles are
written explicitly about a product -- they can be original works designed to describe a product
or service, or to help consumers remember information about a product. As long as the slogan
is instantly catchy -- and hard to forget -- there's almost no limit to what advertisers can say in
a jingle. It can be a slogan, a phone number, a radio or TV station's call letters, a business's
name or even the benefits of a certain product.
Most often the term Radio Jingles can be used to collectively describe all elements of radio
station branding or identification. Accurately the term in the context of radio used to describe
only those station branding elements which are musical, or sung. Sung jingles are the most
common form of radio station branding otherwise known as imaging. A radio jingle therefore
is created in a studio by session singers and includes a musical representation of the radio
station name and frequency. Radio stations will sub contract to specialist radio jingle producers
who will create the musical sound and melody, along with the recording the session singers.
The elements, termed a donut, will then be dispatched to the radio station in various time
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variations to be edited by local radio producers before being broadcast in between songs, or
into and out of commercial breaks. Alternatively, Jingles can be made in-house by production
staff.
Although listeners tune in to hear their favorite songs, radio stations also need to throw in a
few jingles and ads in to the mix, in order to keep things fresh. There are several benefits jingles
are going to bring to a radio station. For starters, they bring campaign and brand awareness.
Jingles will stick in the listener’s minds, unlike a simple talk spot which is going to go in one
ear, and right out the other. Jingles also usually have a musical melody, meaning the listener is
going to get more out of it when they hear the catchy tune played.
Benefits:
1. Build branding for the company. Nothing reinforces image like a consistent, quality
message. Jingles make a quality, catchy tune that’ll have your customers singing
happily as they walk in the store!
2. Cost Effective. In the long run, jingles can prove its value. Instead of paying huge sums
of money every month for a new commercial, jingle stands the test of time and
continues to impress months after it first hits the airwaves.
3. Easy to remember.
They’ve stood the test of time. Jingles have been around since 1923, right around the
time that commercial radio came to the public.
TELEVISION ADVERTISING
Television Advertising: It is said that to-day television advertising is the best selling media
ever invented. It has a potential advertising impact unmatched by any other media. It is a means
of bringing actual demonstration in the homes of the prospects and is therefore more effective
media when compared with radio. That is why the position of radio advertising has now being
gradually taken by television advertising.
Commercial television advertising was introduced in India on January 1, 1976 on the pattern
of All India Radio. Thus, as an advertising media, television is of recent origin in India. It is
also known by the name of „Doordarshan‟ in India.
Advantages or Merits of Television Advertising Television advertising has the following
advantages:
1. The main advantage of television advertising is that it combines the advantages of both
radio and cinema. Thus, it is a most powerful audio-visual media.
2. It makes the message more attractive and impressive.
3. It is most advantageous to those advertisers whose products and service require
demonstration.
4. It is a source of major income to Doordarshan.
5. It possesses geographical selectivity. An advertiser can place his advertisements on
selected few stations as per his requirements.
6. It has a wide coverage. At present television services are available to more than 80%
of India’s population
Disadvantages or Demerits or Limitations of Television Advertising Television
Advertising is subject to the following demerits or limitations:
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1. It is very expensive advertising media and would certainly exclude the small
advertisers.
2. Television message is short-lived.
3. The range within which the telecasting reaches the audience is very limited.
4. In case of India, an average Indian cannot afford television as it is quite costly.
5. Television advertisements are very brief due to high cost of advertising on television.
6. Television advertising is a very deliberate media, requiring long term planning, the
gaining of approval from the authority and also lacking flexibility.
Difference Between Print and Broadcast Advertising
Speed
Advertising in print media allows you to team on Wednesday, you can switch that
get your message out quickly and change it advertising copy out for one promoting
as needed. It also allows you to target your hockey T-shirts on Thursday.
advertising to reach a particular audience. If
TV commercials take more time to
you're selling sports merchandise and the
produce, particularly for a small business
local NFL team clinches a playoff spot over
with a lower advertising budget, so the
the weekend, you can run an ad in Monday's
opportunities to take advantage of a rapidly
sports section offering playoff apparel for
changing market conditions are fewer.
sale. If something happens with the hockey
Impact
Unlike print, television advertising offers negative effects of termites and hear
a medium to disseminate high-impact victims discuss their damage. On the other
messages combining both audio and visual hand, newspaper remains a more trusted
images. A campaign designed to get people medium. In a study commissioned by
to use your service to check their house for Craigslist founder Craig Newmark,
termites, for example, benefits from the newspapers edged out cable and network
target audience being able to see the news when it came to being "very credible."
Targeting
Both print and television offer the basketball fan will see it. Television
opportunity to target a particular audience, advertising, particularly cable, offers a
but both have limitations. You have little chance to target niche markets. A lower-
control of your advertisement's magazine rated show may be perfect for you if it
placement in most cases, and newspaper matches with your target market, such as a
also may not guarantee a particular spot for nursery might find on a gardening channel.
your advertising copy. You might be able to But you have to know your audience
reach an agreement that your advertisement preferences, and there's no guarantee your
selling basketball T-shirts will run in the commercial will air at the portion of the
sports section, but it might be placed next to program where most of your audience is
articles on baseball or hockey instead of the watching.
NBA, which reduces the chance that a
Cost
The variety of print ad sizes means you can more to produce than newspaper ads, and
make them as big or as small as your needs the cost of airtime is considerably higher
and budgets allow. TV commercials cost than the price per newspaper column inch.
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That being said, relate expenditures to your local TV audience can cost as little as
audience and their preferences before $2,500, and while the cost of the airtime
making a decision. Most small businesses itself depends on your local market and
won't find it cost-effective to advertise in economic conditions, you can negotiate a
prime-time, when a TV spot on a major better rate if you're willing to pay in
network costs more than $100,000. advance and commit to a multiweek
However, producing a commercial for a schedule.

MODULE 2
ADVERTISING AGENCIES
An Advertising Agency is selected by a manufacture or trader to present the advertisement on
his behalf. The advertiser who does not have the capacity of carrying out advertising activities
take the help on services of advertising agencies who are specialized in those fields.
MEANING AND DEFINITION
The advertising agency carry out the activity on behalf of their client against remuneration
called fees. They conduct market research, consumer research, product research etc. They
advise the manufacturer on product design or package design, pricing of product channels of
distribution. Besides, they advise on the market condition from time to time.
Definition: The American Association of Advertising Agencies (AAAA) defines an
advertising agency as: “An independent business organization, composed of creative and
business people, who develop, repair and place advertisements in advertising media for sellers
seeking to find customers for their goods and services”.
SERVICE RENDERED BY AN AD AGENCY or FUNCTIONS OF AGENCY
The main function of advertising agency is to see that its client’s advertising leads to greater
profits in the long run. The agency thus plans, prepares and places with advertising with the
objective. The main function of a full-service advertising agency are as follows
1. Selection of Clients: The first and the foremost function of an advertising agency is to
contact and select clients who are desirous of advertising their products, services or anything
which they want to sell. The preference in contacting and choosing the clients is given to those
firms which have sound values, able management, efficient operative products and services.
The financial position, size and nature of business, efficient management and operative
products etc. must be given due weight.
2. Media Selection: Media selection is another major function of the advertising agency. In
making a media selection several factors such as cost, circulation, population which it serves,
audiences, nature of the product, types of customers and above all needs of the clients should
be kept in mind.
3. Advertising Planning: The third as well as the major function of advertising agency is the
advertising planning for its clients. For this purpose, the advertising agency requires a detailed
knowledge of the firm’s products, its advertising history, market conditions, channel of
distribution, knowledge of competitors‟ products and their advertising techniques, field to be
covered, nature and type of consumers etc. Next planning job is to decide about the advertising
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medium in which the advertisement is to appear. The advertising message must be adapted to
the medium in which it is to appear.
4. Creative Function: The creative function starts when the planning function ends. It includes
the preparation of an advertising copy, layout, illustration, photographs, advertising messages,
theme of advertisement etc. These functions are performed by a varied group of creative people
including writers, designers, artists, producers, photographers and graphic art specialists
employed by the advertising agency.
5. Research Function: It is the fifth major function of an advertising agency. It supports the
decisions taken in the media and creative areas. In this connection, the advertising agency
gathers and analyse actual information about the product, extent of market, competitors‟
strategies and buyers‟ habits etc. that may help the creative personnel to make the advertising
copy more attractive and effective.
6. Approval of the Client: As soon as the advertising copy etc. are prepared, the next function
of the advertising agency is to show the copy to his client and obtain his approval. In case if
any changes are suggested by the client, the same may be incorporated and thus the final
approval should be taken from the client.
7. Marketing Function: The advertising agency also performs marketing functions such as
selecting target consumers, designing products and packages, developing channels of
distribution strategy, determining prices and rate of discount etc. It gives useful advice to its
clients with regard to the nature and trend of the market conditions. Accordingly, the client
produces goods keeping in his mind the prevailing conditions in the market.
8. Evaluation Function: Simply drafting advertising copy and handing over the same to the
media is not enough. The next major function of the advertising agency is to have an exhaustive
evaluation of the advertising effects for the benefit of his client. In case of any deficiency,
necessary suggestions should be given and the same be made effective after approval of the
client.
9. Coordination Function: The last but not the least important function of the advertising
agency is to establish effective coordination with client’s sales force and distribution network
to ensure the long running success of the advertising campaign. Each time the advertising
agency contacts the client regarding advertising media to be used and the number of times the
advertisement is to be repeated after giving effect to changes, if any, as suggested by the
advertiser
AGENCY SELECTION CRITERION
1. Suitability: The advertising agency which suits the requirement of manufacturer or trader
is selected depending upon the type of advertisement, location of agency, credit policies, etc.
Normally, an agency which is located near the advertiser’s place is selected. This helps in
approaching the agency. Secondly, the size of agency in terms of personnel, projects, and
services provided is considered. Thirdly, the connections and relations with the various media.
Fourthly, the policies like conservative policy, outgoing policies etc. are taken into account.
Finally, the advertising also considers whether the agency has competitors account or not.
2. Facilities and Services Provided: Some agencies have modern facilities of photography,
typesetting, printing, filming etc. The agencies which provide maximum services with
minimum costing preferred.
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3. Imagination: Imaginations and creative skills of the personnel of agency is duly considered.
Creativity in photography, layout, copy writing, media etc. creates an identity and unique for
the products and services of the advertiser.
4. Past Record: Past records of the agency in terms of number of clients, effectiveness, credit
reputation etc. helps in selecting the agency. The advertiser enquires about the agency’s time
liners, punctuality, past record helps to show whether the agency is reliable or not.
5. Reputation: The reputation of the advertising agency helps in selection. The popularity of
the agency depends upon time liners, successful presentation, good relations, prompt services
etc.
6. Management: Proper selection of advertising agency depends on the ownership and
management and their policies. Their policies may be either conservative or dynamic which
influence the selection.
7. Rates Charged: The advertiser considers the rates charged by the agency. Normally, the
rates depend on reputation, facilities provided techniques adopted etc. Therefore, an advertiser
will select such agency which will provide facility according to his requirement and which suits
its budget.
8. Size of the Agency: The size of the advertising agency must be considered. The larger the
size, the more it is preferred, however, at times, small is beautiful because a small agency may
give more attention to its client’s work.
AGENCY CLIENT RELATIONSHIP
Agency client relationship must be that of mutual trust and confidence. The perfect relationship
results in optimum advertising effectiveness at a reasonable cost and reasonable compensation
for the agency. It is characterized by continuous and complete two-way communication
between individuals in the two organizations in an atmosphere of mutual trust. Interdependency
of the advertiser and the agency helps in creating effective advertising as part of the company’s
marketing effort.
What the clients have to do?
1. Treat the agency with courtesy at all times.
2. Provide all possible information about the product that is to be advertised and about the
organization. This facilitates the agency to do their job much better.
3. Not unnecessarily bargain for the fees charged by the agency.
4. Motivate the agency to do a good work. Agency charges such as media bills, fees and other
costs must be paid well in time. In no way, the client should wait for the agency to remind of
payment.
5. Not change the agency for the sake of change.

ORGANISATION STRUCTURE OF AN ADVERTISING AGENCY


Most large and medium sized agencies followed one of the two systems, the group system and
the departmental system and some combine them.
1. Group System: Under this system the writers, artist, media planners, buyers and other
specialists are assigned to a group of accounts. All of them are under the general direction of
an account executive or group head.
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2. Departmental System: Under the departmental system, same type of specialists are grouped
in the same department. For instance, all writers in the copy department, all artists in the art
department and so on.
Organisation and Working of an Advertising Agency: Since advertising agency is an
independent business organisation, it may be in the form of a sole proprietorship, partnership
or joint stock company form of organisation. However, an advertising agency of reasonable
size may naturally adopt the Joint Stock Company form of organisation. In such a case, it may
have a Board of Directors under the Managing Director. Under the Board of Directors, we may
have General Manager and the General Manager may have a number of Departmental
Managers under his control. The number of Departmental Managers will vary from one
advertising agency to another advertising agency as per the nature and size of business.
Departments of an Advertising Agency
The organisation of an advertising agency may be divided in various departments entrusted
with a specialised function to be performed under each departmental manager who is
specialised in the task allotted to him. The main departments of a large sized or reasonably
sized advertising agency are as follows:
1. Contact Department: Contact department works under a senior executive officer known as
the departmental manager. The main function of this department is to contact the new clients
on the one hand and maintain the existing clients on the other hand. A number of contact men
work under him. They function as the liaison people between the agency and the client. The
contact men represent the agency when in the advertiser’s office, they study the advertiser’s
need and inform the various departments what is required by the respective clients.
2. Art Department: This department is headed by the art manager who is assisted by artists,
layout men and visualizers. A visualizer is a person who prepares the rough layout of the
advertisement which is later developed into a comprehensive layout. The art department is
responsible for the physical appearance of the advertisement for preparing layouts, illustrations,
photos and for specifying the types to be used.
3. Media Department: This is a very important department which works under the supervision
and control of a media manager. This department is entrusted with the work of selection of
media for the advertiser according to the needs, directions and budget of the client. He remains
in constant touch with different medias.
4. Mechanical Production Department: It is also a very important department which works
under the control of a technical manager. The main function of this department is to look after
block-making, printing, proof-reading and such other technical jobs.
5. Copy Department: This department is headed by a copy manager and is duly assisted by a
number of copy-writers. This department is concerned with the preparation of a copy for all
advertisements. Copy-writing requires flair and fluency of language, imagination and a method
of representation. The department works closely with the art, research and accounts
departments. It is also an important department.
6. Research Department: In case of large sized advertising agencies a separate research
department is established under the supervision and control of a research manager. The
research manager is assisted by a number of analysts, investigators, marketing assistants,
statistical clerks and librarians etc. The main function of this department is to study markets,
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medias and other subjects of interest to the advertising agency. It helps better advertising for
clients.
7. Radio and T.V. Production Department: In case the advertising agency provides
advertisements on the radio and television, it would have a separate department for this
purpose. This department works under the supervision and control of a manager who is duly
assisted by a number of assistants, musical consultants, script-writers etc.
8. Finance Department: The main function of finance department is to arrange and control
finance. Thus, this department is responsible for maintaining proper accounts, billing and
collection of dues from the clients, verifying whether the advertisement in the different media
actually appeared on the days it was scheduled, if so whether correctly, and whether the text
was properly printed and also looking after all the routine matters relating to accounting,
recording etc.
9. Merchandising Department: In case of large sized advertising agency, a separate
merchandising department is established under the supervision and control of a merchandising
manager which is specialist in displays, exhibits and preparation of various advertising aids.
10. Public Relation Department: In case of a large sized advertising agency, a separate public
relation department is established under the supervision and control of a public relation officer
- manager. The main function of this department is to establish and maintain contact and mutual
understanding between the organisation and the public. It performs a liaison work between the
clients and the various sections of the public - customers, employees and shareholders etc.
METHODS OF REMUNERATING AN ADVERTISING AGENCY
1. Commission Method: This is the oldest, and most common method of remunerating an
advertising agency. Under this method, the advertising agency has a fixed commission by the
media owners on the advertising bill for the advertising space bought by the respective
advertising agency. The fixed rate of commission is 15% in India as well as in U.S.A. Though
the rate of commission varies from media to media and from country to country but the rate of
15% is almost universal.
2. Fee System: The fee system came into effect following a controversy between the advertiser
and the advertising agency. The former argued that 15% commission was too high a rate,
whereas the agency took the stand that it was unremunerative in view of many services
rendered to the client by the advertising agency. Under fee system, the agency payment consists
only the service charges which are to be computed on the basis of cost plus system. Under the
system, a certain fixed percentage (flat rate) on cost may be charged from the client as fee to
be paid to the agency along with the bill. This system enables the advertising agency to make
fair profits on services rendered by it and, in turn, the advertiser pays for what he gets - nothing
more and nothing less.
3. Service Charges: Under this method, service charges are added to the cost of materials and
services bought by the advertising agency for the client in art work, photography, typography,
plates etc. Normally, it is cost plus 15%.
CHANGING ADVERTISING AGENCY OR CLIENT TURNOVER
When an advertiser leaves one advertising agency, and shifts to another, this practice is termed
as client turnover. Highly frequent rate of client turnover results in great loss to advertisers.

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The main reason for changing the advertising agencies may be summarized as under:
1. Dissatisfaction to the advertiser from the services of the advertising agency.
2. The advertiser is interested in a new criterion with which the present agency is not familiar.
3. The client and agency perceive the advertisement strategy in a drastically different manner.
4. Change for the sake of change.
5. Lack of coordination between the top executives of the client and the agency.
6. Loss of confidence.
7. Staff changes also lead to change of advertising agency.
8. Perceived unreasonableness of the other party.
9. Politics and nepotism also result in change of advertising agency.

ADVERTISING BUDGET
Advertising budget is an estimation of total expenses that are to be incurred on advertising
during a given period of time. The advertising budget includes items of expenditure relating to
advertising programmes, cost of space, advertising material (including advertising copy)
production expenses, media expenses, agency commission and advertising research etc. In the
most elementary form, it states the proposed advertising expenditure and informs and suggests
the company management of the anticipated cost of executing the advertising plan. It is the
translation of advertising plan into money. The advertising budget must be realistic, flexible
and adequate for the advertising programmes. The advertising budget must consider the
advertising goals and the size must relate to advertising needs.

PROCESS OF ADVERTISING BUDGET

Advertising budget is prepared by the advertising manager of the company. The advertising
budget process includes the following major steps:

1. Collection of Data and Preparation of Advertising Budget: The starting point of any
advertising budget process is the determination of the size of advertising appropriation. The
requisite information keeping in view with the products, packaging, target markets, advertising
copy, new product introductions, types of consumers, extent of competition along with the
competitors‟ strategy, media selection etc. is gathered. Having decided upon the above
variables, the advertising manager takes a decision on the very important issue „how much to
spend‟ for advertising. Once the total expenditure is arrived at, the next step is the
apportionment of this fund among various advertising units over a period. By advertising unit,
we mean a specific advertisement delivered through various media vehicles. The fund
allocation has to take into account the market potential within various segments, the time period
and the geographical areas over which advertising will be spread in accordance with the overall
advertising strategy.

2. Presentation and Approval of the Budget: After the preparation of advertising budget, the
next step in a budget making process, is to present the same before the top management through
the chief of the marketing division for necessary approval. In some organizations, there is a
separate budget committee, comprising of the representatives of the financial and other
functional areas. The budget committee or the top management, as the case may be, will
evaluate such proposed expenditure to achieve the targeted sales in a given budgeted period.
Since advertising budget is employed to increase sales, the advertising budget must be
compatible with the sales goals of the company. Besides increasing sales, it should be adequate
enough for the new product to make a successful entry in the chosen segment of the market.
After considering all these factors if satisfied, the budget committee or the top management, as
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the case may be, will finally accord his approval over the budget proposals and thus will return
the same to the advertising manager for execution.

3. Budget Execution: After the approval, the next step in budget making process is the
execution of the budget. During the execution of the budget, the advertising manager has to
exercise monitoring control so that the funds that have been allocated are spent in accordance
to the approval plan and in economical manner. Whenever there are critical changes in the
marketing situation, necessitating an adjustment in the advertising support, the necessary
modifications should be effected in the advertising budget. That is why, advertising budgets
should be flexible and provision is made for the contingency account to face the critical changes
in the marketing environment. The advertising manager should be duly authorized by the
budget committee or the top management for making the required modifications etc. as and
when required.

4. Control of Budget: The fourth and the last step in the budget making process is to have a
control over the budget. It is the prime duty of the advertising manager to see whether the actual
expenditure coincide with the budgeted expenditure or not. The advertising manager should
also see that the amount appropriated for advertising is being used only on the item and activity
as expressed in the budget.

Determining Advertising Appropriation

Advertising appropriation is that part of company’s budget which is to be spent or, say, invested
on media, men and other advertising material so as to impersonally communicate with the
target-prospective customers. Determining the appropriation advertising outlay is essential for
the development of creative media strategies because in a large measure the tempo and tenor
of the advertising campaigns depend on how much is available for spending. However, from
the managerial point of view, it is the most difficult work. Cost factor is one of the deciding
factors in determining the advertising appropriation. A cost analysis study of different media
of advertisement and their effectiveness should be considered while determining the
advertising appropriation

METHODS OF FRAMING THE ADVERTISING BUDGET

1. Affordable Method: In this method, one has to find out what the company can afford in a
given business situation. Particularly, those companies which have limited resources use this
method. When funds availability is a constraint, a limited fund is allocated after other
unavoidable expenses have been duly met. Under this method, it is usually assumed that
advertisers do not spend too heavily. Under this method, advertising activity is blocked-up at
last.

2. Percentage of Sales Method: Under this method, the amount to be appropriated to


advertising is arrived at by multiplying the value of past year’s sales or the projected sales for
the budget period with a pre-determined percentage.

3. Competitive Parity Method: This method envisages determination of advertising


appropriation in such a way that a company maintains a parity with its competitors‟ advertising
outlays. This method is based on the principle that you are at par with competitors. Spend as
much as the competitors do.

4. Objective and Task Method: Objective and Task Method for framing the advertising
budget is considered to be the most desirable and realistic method. It is also known as „research

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objective method‟. It envisages appropriation of advertising funds on the basis of objectives to


be achieved and the task involved therein.

5. Return on Investment Method: In this method money spent on advertisement is considered


as an investment and not an expenditure. It is an investment in the sense that a certain return in
terms of profit is expected under this method. The advertising budget is prepared; under this
method by taking into account the increased profits generated by an increase in sales and
goodwill on account of advertising.

6. Judgement Method: Judgement method of framing an advertising budget is based upon the
judgement of experienced managers of the company. This method is also referred as the
„arbitrary method‟ because it is based on the arbitrary thinking of some experienced managers
only, this not based on any scientific lines. This method involves no clerical or statistical or
field work. It is solely based upon the experience and judgement of some old and experienced
managers.

7. Fixed Sum Per Unit Method: This method is similar to the percentage of sales method
except that a specific amount per unit is appropriated rather than a percentage of the value of
sales. The advertising appropriation may be based on units of a product sold in the previous
period or on a forecast of unit sales in future period.

APPROACHES TO ADVERTISING BUDGET

1. Traditional Approach - Money Spent on Advertising is an Expenditure: The traditional


approach is that money spent on advertising should be treated as an expenditure and hence
should be debited to Profit and Loss Account of the business enterprise at the end of each year.
Advertisers treat the cost of advertising like other costs appearing on the debit side of the
Trading and Profit and Loss Account in order to earn more profits during a given period

2. Modern Approach - Money Spent on Advertising is an Investment: The modern and the
correct approach about the money spent on advertising is that it is an investment because (i)
advertising contributes not only the current sales but the future sales also; (ii) Creates image of
the product or brand and of the advertiser; (iii) builds goodwill and confirms acceptance for
future products also; and (iv) consequently serves as an investment towards future profits also.

ADVERTISING STRATEGY

A campaign developed by a business to encourage potential customers to purchase a good or


service. An advertising strategy is generally tailored to a target audience perceived to be most
likely out of the population to purchase the product. Advertising strategies include elements
such as geographic location, perceived demographics of the audience, price points, special
offers, and what advertising media, such as billboards, websites, or television, will be used to
present the product.

Top Advertising Strategies

1. Appeal to Emotion: When a company is able to appeal to the emotional needs of their
audience, they generally will issue a promise that the product will serve a certain function of
purpose. This function or purpose can satisfy the person’s emotional need in the following
areas:
• Belonging to a certain group or feeling accepted.
• The promise to feel secure.
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• The promise to feel attractive.


• The promise of self-acceptance
Many advertisers will associate their products with things that people want out of life, such as:
luxury, wealth, fame, beauty, family, or love. They ensure that by using their product, you will
be able to fulfil these areas of your life.
2. Fear: Fear is a very common persuasion method for many people. A company or business
will suggest that, if you do not buy their product or service, certain terrible things can or will
happen to you. Companies note that people fear the following things:
Being unattractive, reject, teased, or feeling unsafe.
There are plenty of products that promise to get rid of things such as: body odour, fat, or
unwanted hair. And all of these things can help a person feel more attractive and accepted.
3. The Ideal Family: In commercials or on build boards, generally, the family you will see
will be full of attractive people who appear to be getting along with each other perfectly. This
is a popular advertising strategy to show an “ideal family”, in hopes that people will believe
that the certain product or service will give them the ideal family as well.
4.Cool Factor: We all want to feel cool, and advertisers know this. Companies will try to
convince you that if you do not use their product, you simply will lose cool points or not have
a “cool factor”. For instance, maybe you will not fit in, you will not have friends, or you will
not be accepted. Advertisements always show people who appear hip and cool doing hip and
cool looking things.
5. Amazing Toys: When you were growing up, you probably remember toy commercials with
toys doing things that they might not exactly be able to do. Many companies display their toys
doing incredible things that the product is not actually capable of. For instance: cars doing
wheelies, dolls crying or moving by themselves, or airplanes doing loops and twirls in the air.
6. Weasel Words: Advertisers are required by law to tell the truth in their
advertisements. However, they tend to use certain words or phrases that are meant to help
mislead viewers. For instance, words such as: natural, new, part of, or because we care are
common deceptive words and phrases used in advertising.
7. Put Down: In advertising, if a company is not sure how to make their product stand out,
they will resort to putting down some of their competition or a competitor to try to make
themselves look better.
8. Heart Strings: This is an advertising strategy similar to appealing to emotion. This is when
a company will use separate forms of media to create an emotional mood to draw you in and
make you feel good. For example, cute pictures of children or babies, or cute little animals can
pull on anyone’s heart strings and appeal to their emotion.
9. Cute or Cool Celebrities as Product Pushers: There are a wide variety of characters or
people that you might associate with certain products. Think of your favourite childhood
cereals, such as Tony the Tiger or Toucan Sam from Fruit loops. All of these “celebrities” are
a type of advertising strategy to get children and adults to associate a certain image with a
product.
10.Togetherness: We all want and hope for the perfect family, and an easy advertising strategy
for companies that deal with a family product is to show both parents and children having fun
together. This demonstrates a sense of togetherness and community in that a product is capable
of providing fun and happiness for children and adults alike.

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11. Facts and Figures Companies will also use certain facts and statistics to make a product
or a service appear more credible and reliable.
12.Star Power: Plenty of celebrities, sports heroes, and teenage heartthrobs are recruited by
companies or brands to help them sell and give credibility to a product. There are many food
products and clothing lines with celebrities as spokes people. This is a strong advertising
strategy for children, especially, who sometimes might not realize that their celebrity idols are
getting paid to endorse a brand or product.
13.Bandwagon:
No one wants to feel left out, and advertisers know this. Look out for advertising strategies
with slogans that encourage you to, “Join the crowd!”, “Do not be left out”, or “Everyone is
doing it – so can you”. This is an encouragement for people to hop on the bandwagon.

14.Excitement: In commercials, bill boards, or on other types of advertisements, you hardly


see anyone who does not look like they are having the time of their lives doing whatever they
are doing. Even if it is simply eating a hamburger, you better believe that it is the best part of
their day. A popular advertising strategy is excitement in the faces of the people in the ad,
commercial, or bill board.
BENEFITS OF AN ADVERTISING STRATEGY
1. Product Introduction: Say you or your company has just developed a product. There
is no better way to get the word out there to the public than by advertising. You can
use advertising to tell others the features, benefits, and highlights that the product has
to offer. Additionally, you can note any special promotions or pricing.
2. Brand Reinforcement: People lose interest and tend to forget things easily. By using
advertising as a way to reinforce and remind people about your brand, you will be
creating a stronger image to the public. This can work as a long-term advertising or
marketing strategy.
3. Clearing the air: Certain products can come with certain misconceptions. As a
company, you do not want your product or brand to hold any negativity in the eyes of
consumers. If there is any lack of information or knowledge, advertising can allow you
to explain your product, its features, and benefits to clear the air.
4. Product Upgrades or Improvements: If you want to introduce new improvements to
an existing product, advertising can help you demonstrate to the public how a product
has changed and highlight its new features.

Advertising Organisation
Organisation for the advertising department:
With a view to provide and promote more effective integration of the advertising management
functions within the overall company organisation, a kind of internal organisation is to be
provided to the advertising department.
Basically, company it-self is an organisation and advertising department is only a sub-system
of the overall system. The organisation of advertising department, as an integral -part-of
company organisation, is greatly and deeply influenced by the factors such as the status of
advertising within the company, the number and type of activities forming the part of
advertising function and the extent to which the different functions and responsibilities of
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advertising are performed in the department of advertising or carried out by the external parties
such as advertising agencies.

1. Organisations by functions:
Organisation of advertising department by functions involves the sub-dividing the advertising
works into sub-functional components. That is, the advertising manager would divide his total
work into sub-functions as copy writing production media and a person can be in charge of
each function.

2. Organisation by media:
This type of organisation involves the division of the advertising work by different media
where skilled personnel specialized in each area or division of work will handle the work.
These areas can be newspapers, magazines, radio and television, outdoor and mail
advertising.

3. Organisation by product:
This type of internal organisation is very popular with the large and diversified manufacturers
marketing consumer products or a product. The base for the divisionalisation is product.
In such an arrangement, the manager is assigned the responsibility of the advertising functions
for a particular product or a product group.

4. Organisation by end user:


The end user is the final consumer. Under such organisational arrangement, the advertising
manager is responsible for his performance in terms of markets or consumers. Under the
direction and control of ad manager, there will be area managers for each kind of market for

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the products.

5. Organisation by geography:
In all those companies having widespread markets with individual geographical differences
and the problems of customer taste and habits, such structure works well. Under the plan, there
will be zones and segments and for each zone or area, there will be an area or zonal manager.

FUNCTIONS OF ADVERTISING DEPARTMENT:


It is almost impossible to define as to what are the functions of an advertising department, in
precise terms. The range of functions to be performed by an advertising department would
depend on the unique situation and the circumstances faced by the company.
A company may rely on advertising agency totally, or it may not rely at all on agency or it may
bank on agency services to a certain extent.
Not with-standing these differences, the usual functions performed are:
1. Preparing the advertising budget.
2. Fabricating the advertisements.
3. Making marketing plan.
4. Choosing the advertising agency.
5. Conducting marketing research.
6. Monitoring the public relations.

REPEAT ADVERTISING

Repetition is used in advertising as a way to keep a brand or product in the forefront of


consumer's minds. Repetition can build brand familiarity, but it can also lead to consumer
fatigue, where consumers become so tired of an ad that they tune out or actively avoid the
product. Therefore, to be effective, repetition must occur in the right proportion, as too much
repetition may be counter-productive as an advertising strategy.
Types of Repetition

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The idea behind repetition is that when the consumer goes to buy a particular product, the name
of your brand is the first one that comes to mind. There are several different types of advertising
repetition.
One is simply to repeat the same advertisement, such as a television commercial, over and over.
For example, the same commercial may be broadcast at each ad break of a show.
Another way to use repetition is to place the product or brand in as many places as possible.
For example, print ads in newspapers and magazines, television ads, radio ads and utilize
product placement on television shows or in movies.
Another type of repetition is to use ads that are produced with similar styles, but have a slightly
different final product. For example, television ads that use the same actors, but in different
scenarios.
The importance of repetition
Two-Factor Theory: This theory, called two-factor theory, or wear-in/wear-out, suggests that
repetition has a positive effect for a period, and then begins to have a negative effect. During
the first phase, called wear-in, repetition of an ad allows consumers to become familiar with
the brand. In this phase, repetition can overcome consumer reluctance to purchase a new
product or brand. As the repetition continues, consumers become used to the brand and may
enter a second phase, called wear-out. In the wear-out phase, consumers become tired of
hearing about the brand and continued repetition of ads can cause consumers to stop buying
the product or brand.
Familiar and Unfamiliar Brands: The effect of repetition can vary based on whether the
consumer is already familiar with the brand being advertised. Consumers tend to pay more
attention to an ad that is for a completely new product or brand, than to an ad for a product or
brand with which they are already familiar. The new ad will be more interesting to consumers,
so they will be more likely to take note of it. In this case, repetition may be more effective
when it is used to advertise a new brand or product. Once consumers are familiar with a brand
or product, the advertiser may be able to decrease the frequency of the ad and still achieve the
same effect.
Quality: Repetition of an ad may signal to consumers that the brand or product is a good buy,
or a quality product. This is sometimes referred to as signaling theory. In 1975, University of
Wyoming researchers Anthony McGann and Raymond Marquardt found that ads with high
rates of repetition tended to also be rated as high quality in Consumer Reports. A later study,
published in the Journal of Consumer Research, confirmed that consumers tended to think
products advertised with repetition were good buys. Repetition may convince consumers that
the manufacturer is willing to spend a lot of money on advertising because the product is a
good one.

ADVERTISING LAY OUT

Layout may be defined as the arrangement of the various elements of advertising such as
illustration, text matter, product and name of the company. A good advertisement is a
combination of both copy and art.
A copywriter is responsible for the words, that is, the copy, whilst the art director is responsible
for the illustrations and the layout. The copywriter and the art director must therefore work
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closely, as whilst the former visualizes the advertisement, the latter brings the visualization into
reality.
The layout must be prepared separately from the copy and must indicate the kind of type to be
used, the amount of space to be apportioned, the border to be used and the exact position of the
illustration, if any, to be included. The layout is a plan of an advertisement and makes the work
of the printer easier.
The first step in the preparation of the layout would be to indicate on a piece of paper the exact
size of the advertisement because the slightest mistake in size may necessitate decomposition.
Instructions should be carefully given and should be as complete as possible.
Advertisement layout is a process concerned with the physical arrangement of all the elements
of advertising message for faster and better sales presentation and communication.
In other words, layout is the visual plan for arranging the elements of an advertising message
in printed form. Advertising layout deals with proper and attractive physical arrangement for
the presentation of the advertising message or the sales communication.

PRINCIPLES OF GOOD LAYOUT FOR AN ADVERTISEMENT COPY


1. Focus on dominant element: Good layouts have a starting point. It is called dominant
element. This element is the most important part of the advertisement. It may be the headline,
the illustration, the body copy, etc. The copywriter has to decide which part is the dominant
part. Normally, there is only one dominant element in the ad. The dominant element must be
large. It must have a bright colour. It must look better than the other parts of the ad. The
consumer must get attracted towards the dominant part of the ad.
2. Unity of all ad parts: The advertisement consists of many parts. All parts of the ad have a
relation with each other. All these parts must have one objective. The objective must be to
inform the consumer about the product and to persuade them to purchase the product. So, all
parts of the ad must work together. They must not work against each other. There must be unity
among all the parts of the ad. If unity is maintained, then the combined effect will also be good.
We can have unity by keeping proper space between words and lines. We can also use the same
style of printing.
3. Good use of contrast: Contrast means to use opposite colours, like black and white, etc.
Contrasted ads stand out because they appear different. For e.g. If all the ads in a magazine are
in colour and if one ad is in black and white. Then the black and white ad will stand out in
contrast. We can also use contrast for different parts of the ad. So that each part of ad stand out
in contrast. We can also use contrast for a dominant part of the ad.
4. Right balance of elements: The advertisement must have a right balance. Balance means
the relationship between right-hand side and left-hand side of the ad.
There are two types of balance:
Formal balance: Here, the words and pictures on the right side are equal to the words and
images on the left-hand side of the ad. So, the right-hand side and the left side matches each
other in size, shape and colour. They are placed exactly on the opposite side of each other. Such
a balance is called a formal balance.

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Informal balance: Here, each part of the ad is placed on the page at random. There is no
balance between right-hand side and left-hand side. But, as a whole the ad looks balanced.
Informal balance is quite difficult to achieve. It requires more imagination and a high level of
creative skill. It looks better than the formal balance.
5. Maintain proportion of space: The advertisement must maintain proportion. The entire
space must get divided among the different parts of the ad. The division must not be equal. If
all the parts have same space, then the ad will not look good. More space must be provided to
the dominant (important) part of the ad. Less space must be given to the less important parts.
6. Follow the eye movement: The advertisement must be prepared to cover the movement of
the eye. The movement of the eye is from left to right. A person first looks up then he looks
down. So, the advertising idea must move from left to right and from top to bottom.
The advertiser can control the eye movement by using the following points:
Gaze movement: According to research, a person's eyes will follow other eyes. That is, if
many people are looking in one direction, then a new person will also look in that direction.
Such behaviour is natural. So the readers will also follow the gaze of the people, animals and
birds appearing or presented in the ad.
Size: Generally, large size parts attract people. So, the main part of the ad must also be large.
Pointing devices such as hands, fingers, arrows, etc., are used to attract the attention of the
reader.
Cartoons and comic pictures are also used to grab the attention of the readers.
7. Simple and uncomplicated layout: The layout must be simple. It must have very few
elements in it. The lesser the elements, the stronger will be the impact (impression). Too many
parts of the ad will make it useless. So, the ad must have many empty spaces. It must not look
very crowded and complicated.
8. Ease of readability: The reader must be able to read the advertisement easily and quickly.
The words in the ad must not be small sized. Avoid using capital letters for full paragraphs.
Only significant words or sentences must be written in capital letters.
9. Use of whitespace: The advertisement must not appear stuffed and crowded. There must be
enough white (blank) space to make it look uncluttered and pleasing. White space will attract
the attention of the reader by making the ad look rich and classy.
10. Clarity of ad message: The advertisement must be very clear about its objective. The
reader must easily understand the ad message. He must not be confused to grasp the central
message of the ad. He must also not have any doubts about the ad.
11. Good ad atmosphere: The atmosphere surrounding the advertisement must not be ignored
or overlooked. The surrounding of an ad is also essential to make the ad appear attractive and
pleasing. A shabby background or atmosphere makes even an attention-grabbing ad less
appealing.
12. First impression: The first impression is the best impression. If the impact of the first
impression is good, then the reader will read the full ad message and react positively. He may
desire to purchase a product or try a service. However, if the first impression fails to create a
good impression, then the reader won't read the full ad message. He may not remember and
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lose interest in the advertised product or service. In such a case, sales won't happen and the
advertisement will fail to achieve its goal.
Therefore, the copywriter must make the first impression of the ad impactful. A positive impact
can be achieved by using a catchy slogan, attractive colours, lots of white space, good
illustration, so on.
ETHICS IN ADVERTISING
Ethics is a set of moral principles, norms or values. It is a branch of social science. It deals with
good and bad with reference to a particular culture. It refers to the moral duty and obligation
and advertiser has towards the society. Moral principles are the rules or standards of what is
“right” or “wrong”.
Every advertising tries to persuade the people. In the modern competitive market, each
advertiser wants to win over his rivals by effective advertising. In this process, there are
chances of hiding truth and facts in order to succeed in increased sales and profit. But the
advertiser has social and moral duty or obligation towards consumers. An advertiser should
maintain a high degree of ethical stands i.e. he must inform the facts or truth to consumers. An
advertisement with false claims may succeed in short run but it will definitely give a bad name
to the product in long run. Because one can fool some people all the time, and all the people
for some time, but one cannot fool all the people all the time.
If unethical practices are continued they will destroy the image of the business as a whole and
advertising itself will become less effective.
Some of the moral codes developed in advertising are: 1. It should avoid attacking competitors
unfairly. 2. It shall be free from offensive to public decency. 3. It shall make clearest claims
regarding price reduction guarantees etc.
Ethics, as a tool of communication, plays a significant role both in business as well as in the
profession of advertising, norms or ideals, that are accepted and upheld by the society as
essential to good life should be followed while advertising any products or service, or, idea.
1. Ethics in advertising means that the advertisers should do only good advertising, meaning
thereby honest advertising. It means that only true facts, no exaggeration and no lies, about the
product, service, idea or institution should be stated, in clear Tenos, in the ad.
2. Ethics in advertising also means that only good products, services and ideas should be
advertised and that too to the right consumers. Advertising for products like cigarettes, beer,
whisky, rum, gin, tobacco, pan parag and other harmful products should be avoided.
3. Ads showing testimonials should be restricted to competent persons, who must express
honest views and choices.
4. Ads in poor taste and offensive to public decency with double meaning tone must be avoided.
5. Ads should avoid attacking unfairly competitors. In sum, advertising should be honest,
objective, informative and persuasive in contents.

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MODULE 3
ELEMENTS OF ADVERTISING
The design and development of advertising follows the AIDA formula. The effectiveness of
advertising depends upon to what extent the advertising message is received and accepted by
the target audience. Research has identified that an advertisement to be effective has to i.
Attract Attention ii. Secure Interest iii. Build Desire for the product and finally iv. Obtain
Action.
AIDA Model
A somewhat simplified model based on the identical principle of sequential stages of consumer
action is known as AIDA model. Advertising as a communication medium can in most cases
effectively perform the first three functions. In the case of direct action advertising, it also must
translate the desire into action, unaided by any other promotional instruments. In the case of
indirect-action advertising, however, the action can be aided at the time of purchase by two-
way communication between the intending buyer and the sales staff. Let us examine the
attention, interest, desire and action components in more detail.
Attention
The layout is the most important factor that directs attention to an advertisement. Typography
and colours used in the layout can rivet us. The size of the advertisement also compels us to
get attracted to it. Contrast by white space is a good attention getter. Movement is a vital
element for getting attention. Movement can be physical or emotional. The position of the
advertisement also adds to its attention value. Celebrities in the advertisement, dramatization;
model selection, illustration all this contribute to attention.
Interest
Ad seen does not mean ad read. Mostly people see the illustrations and do not read the copy.
Here illustrations have to work hard. They should, together with headlines must provoke further
reading. The selection of the illustrations and its integration to life are thus very important.
Even copy format is important for interest creation. A humorous copy works some people on
by a scientific copy, and some. Here there is a dilemma for a copywriter. He has to satisfy
maximum number of people so he has to search for a common denominator of interest.
Desire
The basic purpose of advertising is to create a desire for the product or service being advertised.
It is a function of appeals used for the motivation of people. Vivid description or copy always
helps. Buying motives, physiological as well as psychological, make people purchase products.
The copy of the advertisement must kindle these motives. There are certain barriers here -
certain reservations in the mind of customers. We have to overcome them. We have to convince
by giving evidence, testimonials, endorsements, and facts and figures. On arousal, people
become prone to buy the product.
Action
The logical end of the desire aroused is to buy the product. 1. Products are associated with
company. 2. The message is repeated. 3. Certain immediate action appeals are used.

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PROOF READING & CORRECTION


Proof Reading
Careful reading (and rereading) of a (yet to be finally-printed) document, to detect any errors
in spelling, punctuation, or grammar. It may also involve checking of different elements of a
layout (such as headlines, paragraphs, illustrations, and colors) for their correct dimensions,
placement, type, etc. Every author knows that (despite the spelling checking abilities of modern
word processors) a human proof reader is indispensable. Also called proofing.

Ad agencies and marketing departments know the importance of good writing. After all, they
produce a lot of content: advertisements, sales letters, white papers, blog posts, newsletters,
video scripts for commercials, and much more.
But one thing that some overlook is the importance of proofreading and copy editing. This can
take your writing from good to great, making it much easier to strengthen a brand, increase
revenues, and grow a business.

1. Mistakes Are Costly


A single mistake in an advertisement can be an expensive lesson in humility. Here
are just a couple of real-world examples:

• Not in the public interest. I’m sure Ottawa County, Michigan, officials weren’t
very thrilled that the word “pubic” rather than “public” made it onto tens of
thousands of election ballots. A half-dozen people in the county clerk’s office had
proofed the text before the ballots were printed, and they had all missed the typo.
What they really needed was a trained, professional proofreader who could look
at the text with fresh eyes. Sadly, reprinting the ballots because of the
embarrassing error cost taxpayers $40,000.
• The $7 million mistake. Alitalia Airlines accidentally listed business-class flights
along an international route at a mere $39instead of $3,900. The airline reluctantly
honored the budget tickets for 2,000 travelers who had snatched them up—at a
loss of more than $7 million to the company.

2. Sloppy Writing Damages Your Public Image


Wise businesses are not solely focused on making sales in the short term. They take
a long-term perspective—they know that their brand and image are very important.
What do customers think about when they see your logo or hear your name? What
sort of ideas does your brand stand for? Would a mistake be consistent with the image
and brand you’re trying to portray? Probably not.

Here’s another real-world example. A travel agency posted an ad in the Yellow Pages
for “exotic travel,” but what appeared in print was “erotic travel”—whoops. According
to AOL, “The agency’s reputation was destroyed, losing 80% of its existing customers
and gaining next to no new business.” After a court battle, an $18 million judgment was
issued against Yellow Pages on the grounds of gross negligence.

3. It’s Hard to Edit Something You’ve Written

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When you or someone on your team writes something, it can be difficult to catch all the
mistakes. You and your colleagues are too close to the task at hand. You already understand
the target market and industry lingo, as well as the product or service that’s being marketed.
A fresh set of eyes is helpful in these situations. Skilled proof-readers will spot many mistakes
that you’ve missed, and they will make sure everything is consistent.
Proofreading is extremely important in the business world for two main reasons: To
demonstrate professional competency, and to prevent a miscommunication that can prove
financially costly and highly embarrassing to all involved.
TYPOGRAPHY ATTRACTING ATTENTION
Typography is the art of creating and arranging text in a visual manner. With all the advertising
placed in front of consumers on a daily basis, it’s important to design and use type in such a
way that it attracts the reader’s attention and gives them a clear understanding of the message.
Things to consider when arranging typography in advertising is font, point size, colour and line
length. Type must be readable and visually appealing. In this article, we will take a closer look
at what makes some typography good, and other typography not so good.
Typography is manipulating the way that words look and their arrangement on a page to help
give voice to a piece. In advertising, we use words to intensify the message when necessary.
However, text does not always sit alone. It must sometimes share the same virtual space with
graphics or imagery. When this must be done, there are many things to take into consideration
in order for the two elements to work together to create one piece.
Creating a graphic voice for your piece through type can be done various ways; the most
common or obvious way may be through font size.
A definite relationship exists between typography and advertisement. A brief survey of any
billboard, newspaper, poster or any other advertisement demonstrates that the use of
typography to pass the advertisement’s information is possibly the most important aspect of
advertisements of certain types. The main message that a business entity is looking forward to
advertise often appears bold, enlarged, colored and highlighted to ensure readers do not miss
it. This becomes so appealing and attractive to the target audience drawn to the visual aspect
of the advert.
The main significance the font has in the advert is creation of the link between the logo and the
product or message. Just as in the adverts reviewed above, typography has been used to
highlight the important parts of the message while other aspects are left to form the background
of the image. The significance of Spencerian script in the Coca Cola logo is the secret to their
continued success over the years – they create a link between the advert and the product.
Although there are numerous beverages made from cola, the Coca-Cola brand can be easily
distinguished from the rest due to its distinct typeface
There is a distinct link between advertising and typography. If an advert is able to use
typographical skills to convey messages correctly, there is a higher chance that customers will
notice the product and purchase it. Over the twentieth century, many companies like
McDonalds, Marlborough, Ford, Nike and others have perfected the art of using the correct
typographical skills to perfect their advertising. It is not a coincidence that they are very
successful companies.

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USE OF SYMBOLS
Branding is the use of various promotional tools and messages to convey an intended image of
your company and products to customers. Symbols are extremely important to the effective
entrenchment of your brand. Promotional symbols include various words, phrases, images,
characters and other visual depictions or sounds that connect customers to your brand.

Name: One of the first symbols you build for your company or a given product is its name.
Selecting an appropriate and well-branded name carries long-term implications. Swedish
company IKEA is named with the initials of Ingvar Kamprad, who founded the company in
1943, and the first letter of his farm name and hometown. This provides symbolic meaning to
the company's emphasis on affordability and social and environmental responsibility.
Logos: Logos and images are key symbols in branding. They offer a visual representation of
the greater meaning behind your brand. Though challenging, getting customers to immediately
recognize your logo or other visual images and interpret their meaning is critical. This is
especially true in print ads where customers may take only a brief look at your ad. Since you
have limited time to get a message across, showing off your product or logo allows for a rapid
message impression and impact.
Slogans: Slogans or taglines are word phrases used to help project the company's image.
Though often used synonymously, slogans typically refer to long-term phrases, whereas
taglines are specific to given marketing campaigns, which may last weeks, months or years.
Pepsi-Cola has used a variety of taglines over time, including "The Choice of a New
Generation," "Be Young, Have Fun, Drink Pepsi," and "Generation Next" to brand itself as the
hipper, cooler, more youthful soft drink choice relative to Coca-Cola, which often emphasized
nostalgia in its branding.
Characters: Along with logos, companies often use other visual depictions or characters to
tell stories and build brands. The AFLAC duck, originally voiced by Gilbert Gottfried, helped
launch the company from an unknown to a household name. Progressive auto insurance uses a
character named Flo in its TV commercials. The Pillsbury Doughboy, Ronald McDonald and
the Marlboro Man are among other iconic character symbols that have enhanced or are
enhancing company brands.
Many advertisers use deeply entrenched cultural symbols to differentiate their brand from
competitors. The essential task is to identify something that is very meaningful to people that
other competitors are not using and associate the brand with that symbol.
BREVITY
Brevity: shortness of duration, especially shortness or conciseness (of expression). Too often
marketing work, such as advertisements and brochures, try telling you everything about a
business crammed into a necessarily small space. However, that is the quickest way to lose
your prospect’s attention.
When you produce marketing materials, their focus should be making a point that effectively
“lingers” in your prospects’ minds. When you try to say too much, you essentially say nothing
– because your prospect’s time is valuable, and can’t be spent decrypting a piece of advertising
that isn’t able to get to the point quickly.

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If you can isolate your key points and narrow them down to the essentials, you will be much
more successful in your marketing and advertising attempts. Studies have shown that, in most
circumstances, you only have 10 to 20 seconds of someone’s time.
Follow this very simple process to get your point across and increase your chances of having
the customer express interest in knowing more:
1. Get attention
2. Hold attention
3. Keep attention
Often overlooked when writing marketing materials is to get attention, two things are of the
utmost importance (in order): visual appeal (design) and literary quality (writing). If it doesn’t
catch the eye with color or design, it’s going to be invisible. And if they stop to read it – you
MUST be succinct.
To hold attention, you have the same two attributes, but now literary quality is the more
important attribute. Effective layout of the text, and again, effective use of language is
important to keep the prospect reading on. Structuring the most likely desirables at the top is
also important – which may not necessarily be your core value, but your prospect will gloss
over less “appealing” attributes only to stop reading due to lack of interest. Obviously your
company already has a quality product or service. But a quality product or service never gets
noticed when these pieces are missing.
REPETITION
Repetition is used in advertising as a way to keep a brand or product in the forefront of
consumer's minds. Repetition can build brand familiarity, but it can also lead to consumer
fatigue, where consumers become so tired of an ad that they tune out or actively avoid the
product. Therefore, to be effective, repetition must occur in the right proportion, as too much
repetition may be counter-productive as an advertising strategy. The idea behind repetition is
that when the consumer goes to buy a particular product, the name of your brand is the first
one that comes to mind. There are several different types of advertising repetition. One is
simply to repeat the same advertisement, such as a television commercial, over and over. For
example, the same commercial may be broadcast at each ad break of a show. Another way to
use repetition is to place the product or brand in as many places as possible. For example, print
ads in newspapers and magazines, television ads, radio ads and utilize product placement on
television shows or in movies. Another type of repetition is to use ads that are produced with
similar styles, but have a slightly different final product. For example, television ads that use
the same actors, but in different scenarios.
SLOGAN
A slogan is phrase or sentence used repeatedly by a company or an organisation or an advertiser
to aid in the formulation of his message. A slogan is repeatedly used to create certain kind of
effect on the minds of people. Slogan is an important part of advertising copy. Like headlines
and illustrations, slogans are communication devices which are used to present an idea rapidly
and concisely. It may be used throughout an advertising campaign or over a period of many
years. Some advertisers develop and use new slogans for each new advertising campaign. A
slogan suggests the thing and he advertises. It suggests the use of product again and again or
several times so that readers know it by heart. Generally, slogans are used for headlines in
advertisements. They are similar in structure to the summarizing headlines and try to
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summarise some advertising idea just as a headline does. Slogans are mainly used in outdoor
advertising. In such outdoor advertising, a slogan becomes headline and the sales message.
Slogans are generally developed from incidents in the life of a product; such incident that
optimise the use or value of a product when the incident is happily expressed in a pleasing
phrase and is used in advertising. The right frame having appeal becomes a good slogan.
A slogan sentence used repeatedly by a company of any organisation to create an impression
in the minds of the customers.
A slogan should suggest the thing it advertises. Slogans be used fur headlines in advertisements
because of the limitation on the length of a copy in this medium. The slogan then becomes
headline and sales message all in one.
Good slogans are not invented monthly by the advertiser. But they develop from incidents in
the life of a product of clause of a product etc. Then a incident is happily expressed in a pleasing
phrase and used in advertising, it becomes a good slogan e.g.
Characteristics of a Good Slogan: A good slogan should: 1. Contain a definite sales idea: 2.
Be compact in their construction: 3. Be hardly more than 7 words long.

HEADLINE
A headline is a word or phrase printed in large letters above the advertising message. Headline
gives in brief a fair, idea of the contents of the copy. A good headline attracts attention and
arouses interest. So that the reader would be induced to read the advertisement.
Role of Headline:
A headline plays a significant role in advertise by performing the following important functions
a) to attract attention of readers to the ad;
b) to attract attention of the target consumers easily and quickly and to persuade them to
read the whole of the ad;
c) to create curiosity and interest in the ad;
d) to make the illustration and the copy more meaningful;
e) to introduce a unique selling proposition;
f) to sort out useful ads from useless ads;
g) to serve as the essence of the whole ad copy
Essentials of a Good Headline:
1. Original: A good headline should be unique and should not be an immitation of any
other headline. Originality of headline creates a separate interest in the minds of readers.
2. Concise: A good headline must be brief i.e. it should not have more than 8 to 10 words
and should form a maximum of two lines.
3. Specific: The headline should be relevant and appropriate to the copy and illustration.
It should convey the advertising message specifically and not vaguely.
4. Provocative: A good headline should be forceful enough to induce the readers to go
through the copy and the entire advertisement.
Classification of Headlines

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1. Benefits Headline: Such headlines indicates the benefits of the product or the service
advertised.
2. News Style Headline: It emphasises on the quality, performances, services, advantages
of the product list this type, words like “Now‟. “At least‟ etc. are added to the headline.
3. Advice Headline: It advices the customers to purchase a product or avail of a service
which will be beneficial to them. e.g. “How to bake better cakes”.
4. Challenging Type of Headline: This type of headline challenges the customer about
the quality service, price, performance etc. Such headlines emphasis on the superiority
of the advertiser’s product.
5. Selective Headline: A selective headline is directly appealed to a selected group of
customers. It may be specially directed towards children, students, housewives to be
used by those selected customers.
6. Situation Headline: It puts the customer in a situation and enquires whether the prefers
to be in such a situation. Such headlines support the illustration.
7. Label Headline: A label headline announces not only about the label of the product
but also the selling points. Such headlines are “introducing type‟ or “warning type‟.
LITHOGRAPHY
Lithography (lithos, meaning 'stone', an graphein, meaning 'to write') is a method
of printing originally based on the immiscibility of oil and water.[1] The printing is from a
stone (lithographic limestone) or a metal plate with a smooth surface. It was invented in 1796
by German author and actor Alois Senefelder as a cheap method of publishing theatrical works.
Lithography can be used to print text or artwork onto paper or other suitable material.
Lithography was the first fundamentally new printing technology since the invention of relief
printing in the fifteenth century. It is a mechanical planographic process in which the printing
and non-printing areas of the plate are all at the same level, as opposed to intaglio and relief
processes in which the design is cut into the printing block. Lithography is based on the
chemical repellence of oil and water. Designs are drawn or painted with greasy ink or crayons
on specially prepared limestone. The stone is moistened with water, which the stone accepts in
areas not covered by the crayon. An oily ink, applied with a roller, adheres only to the drawing
and is repelled by the wet parts of the stone. The print is then made by pressing paper against
the inked drawing.
Thanks to ease of production and economical distribution, it did not take long for lithography
to find a broad range of applications in art and commerce. As a means of multiplying drawings,
it was embraced by portraitists and illustrators, especially those associated with the popular
press and it proved an effective means of graphic invention for many of the period’s greatest
artists. When improvements in printing technology made it possible to add colour to
lithography and increase the size of the printing base, commercial possibilities ballooned.
Advertising was revolutionized in the 1880s and 1890s by the production of bright mural
posters and art collectors began to enjoy a greater range of offerings in colour prints and
illustrated books.
Printing Plates
Although state-of-the-art commercial printing companies are moving to digital printing, many
printers still use the tried-and-true offset printing method that has been the standard in
commercial printing for more than a century.

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OFFSET PRINTING PROCESS


Offset lithography—one of the most common way to print ink on paper—uses printing plates
to transfer an image to paper or other substrates. The plates are usually made of a thin sheet
of metal, but in some instances plates may be plastic, rubber or paper.
Metal plates are more expensive than paper or other plates, but they last longer, produce high-
quality images on paper, and have greater accuracy than plates made of other materials.
An image is put on the printing plates using a photomechanical or photochemical process
during a stage of production known as prepress—one plate for each color ink to be printed.
Printing plates are attached to the plate cylinders on the printing press. Ink and water are
applied to rollers and then transferred to an intermediary cylinder (blanket) and then to the
plate, where the ink clings only to the imaged areas of the plate. Then the ink transfers to the
paper.

MODULE 4
ADVERTISING CAMPAIGN
Advertising campaign can be defined as a series of advertisements with an identical or similar
message, place in one or more of the advertising media over a particular period of time.
An advertising campaign must be co-ordinate with other marketing efforts and activities. This
means the campaign must be correlated with the personal selling activities of the sales force,
those of the distributors of the product and with the various other promotional efforts, which
may be a part of marketing mix.
Process of planning the advertising campaign
Advertising campaign planning simply means planning the advertising campaign. Advertising
campaign planning concerns many people in the advertising agency, but mainly concerns the
advertising manager (for the client), account executive, marketing manager, creative director,
media planner, and PR manager. They design and plan advertising campaign for the client.
Steps in Advertising Campaign Planning: The main steps in advertising campaign planning
are as follows:
1. Prototype Stage: Let us assume that a manufacturer has the prototype of a new product.
The basic product has been thoroughly tested, but the packaging has not been determined, it
has no name, no price, and perhaps no defined market. In some respects, this seems to
contradict modern marketing principles. This situation is not uncommon. The company now
wish to advertise its new product and appoints an advertising agency and calls it to explore the
possibilities to promote the sales.
2. Initial Briefing by Client: The most likely procedure is for the managing director to ask his
advertising manager to fix up a meeting with the account executive of the advertising agency.
This first meeting may be held at the factory, at the company’s head office, or at the advertising
agency. Probably the best venue will be where the account executive can see the product and
meet the people who have been involved in its development. The factory might be the best
place, but much depends on how the company is organized.
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For this initial discussion, the right choice of venue can be important to the account executive’s
clear understanding of the proposition. It can be dangerous for the advertising agency to start
off on the wrong foot because of inadequate or faulty interpretation of policy and problems.
The need then is for best possible understanding at the beginning. This is the joint responsibility
of the advertising manager and the account executive.
3. Contact Report: Whenever a meeting has been held with a client a contact report should be
written at once and circulated to all those present at the meeting, with additional copies for
others not in attendance who should be informed, both inside the company and inside the
agency.
The importance of a contact report lies in its confirmation of agreed action, so that nothing
depends on people’s memories, and if it is submitted directly after the event it serves to remind
of necessary action that must be taken by people present at the meeting. Agreed contact reports,
when placed in a file or binder as instructions to proceed, may be referred to as the facts book.
Should a dispute occur, reference can be made to the respective contact report: at the end of
the year these reports from the basis of a report to the client on the year’s work.
4. Account Executive’s Report to Agency Management: The account executive will also
give his superiors - the account director and perhaps the agency managing director - a verbal
report. If new business is coming into the agency it may be necessary to make changes in the
deployment of staff, engage extra staff, and consider the use or expansion of equipment and
premises.
5. Account Executive’s Briefing to Agency Department Heads: The account executive now
writes up a detailed, factual but as far as possible unbiased report on the assignment, setting
out his understanding of the product and the client’s requirements. In this report, he should try
to avoid expressing any personal observations because the object is to inform others whose
ideas and opinions are being sought. Each department head is asked to study the report and to
attend a plans board meeting.
6. Proposition: At this stage, the account executive invites the managing director of the client
company to attend a meeting at which the scheme is presented in report form with a
presentation of ideas in rough visual form. At this meeting, the client party may consist of the
managing director, marketing manager, sales manager and advertising manager and the
members of the agency party may include the account director, account executive and the
marketing director. Once the scheme is approved and adopted in principle the agency will be
instructed to prepare a full visual presentation at the client’s expense.
Now, the agency will engage in actual copywriting, photography and drawing. Detailed media
scheduling will now be done by the media buyer.
7. Presentation to Client: At this stage, the complete campaign is demonstrated to the client.
The campaign is presented visually. Advertising campaign planning must be flexible.
Moreover, at such a meeting with the client there will be a number of company directors and
executives present who disagree with one another as well as with the agency over what makes
an advertising campaign. Everyone likes to argue about advertising! The account executive,
supported by the advertising manager in deal circumstances, must sell his campaign on the
basis of sales and readership figures of publications, show the results of copy testing, and offer
alternative media plans with evidence of the reasoning behind them. Much of the comment and
criticism from the client side will often represent arguments which were considered and

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rejected in the agency much earlier. This has to be expected, accepted courteously and gently
dismissed by means by persuasive reasoning and statistics which reveal that the agency has
really taken pains to produce not just a clever scheme but one based on business-like thinking.
Once the scheme has been approved, the account executive and his companions will return to
the agency, ready to execute the campaign. At this stage when the media start buyers, creative
staff, print buying production and traffic takeover, working under the direction of the account
executive.
Factors Influencing the Planning of an Advertising Campaign:
1. The Organisation its reputation, position in the market.
2. The product e.g. Consumer (Perishable, durable or speciality) goods, or industrial
goods etc.
3. The market the nature of customers, their income, their buying behaviour, and their
location.
4. The competition.
5. The absolute price of the product, Competitor’s price etc.
6. The channels of distribution.
7. The budget, the advertising theme, etc.
8. The media, the advertising schedule etc.
9. The Govt. regulations and controls, restriction on certain products, restriction on certain
media to carry out certain ads. Etc.
TIMING OF ADVERTISING
Timing and scheduling are an important part of the media plan and are also tied into the over-
all campaign strategy. Many campaigns have phases, such as the launch, the continuing
campaign, and the close. In some cases, particularly with campaigns that continue for a number
of years, such as the classic "Milk Mustache" campaign, the campaign may be launched with
one strategy that evolves into another strategy as the campaign matures.
The crucial questions under timing is when should a campaign start, and when should it shop?
For this purpose the seasonal angle and festival seasons should be considered. Advertising can
be scheduled heavily just before and during the heavy buying season. Off-season advertising
is used profitably during the offseason to level out the. For example, tourists can be motivated
through advertising to visit tourist areas during the off-season.
Timing can make or break your strategic marketing campaign. After all, you wouldn’t market
Christmas decorations in May. There are a few key things that play into the timing of your
strategic marketing campaign: seasonality (of course), psychology, responsiveness and your
business cycle.
Scheduling directly refers to the patterns of time in which the advertisement is going to run. It helps
fixing up the time slots according to the advertiser so that the message to be delivered will reach target
audience in a proper way with proper timings. There are basically three models of advertising
scheduling as follows:

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1. Continuity: This model is very good option for the products or services which don’t
depend on season for advertisements. They run ads whole year round. The
advertisements under this type run at regular and fixed intervals. The main advantage
here is reminding about your products to the customers continuously. This model helps
maintain a continuous and complete purchase cycle. This is a best model for the
products having continuous demand all the year round. There can be a Rising
Continuity in which some specific products are been advertised in the peak seasons for
e.g. floaters are advertised more in rainy season while some products fall under a
Falling Continuity in which either ads for new products are run or if there is any other
change in the existing product. E.g. packaging of Pediasure, a kid’s health drink is
recently changed.
2. Flighting: This model is also called bursting. As the name suggests, this an absolute
season based products model. The ads here run at very irregular intervals.
Advertisements are for very shorter periods and sometimes no ads at all. The ads are in
concentrated forms. So, the biggest advantage here is there is very less waste of funds
as the ads run only at the peak time when the product demand is on high. Television
and radio are the most used media types in this method. So the advertisers who cannot
afford the year long ads, this is a best option. E.g. ads for warm clothes in Indian Market.
3. Pulsing: This model is the combination of both continuity and flighting scheduling.
Here, ads run whole year round but at a lower sidxe that means less ads, and heavy
advertisements are preferred at the peak time. So this model has advantages of both the
other models. Generally scheduling is fixed for a month. There are six types of
scheduling method here.
• Steady pulse has fixed schedule for 12 months.
• Seasonal pulse has bunches of ads season wise.
• Period pulse regular basis ads.
• Erratic pulse refers to irregular ads normally used for changing old patterns.
• Start up pulse is used for new product with heavy advertisements.
• Promotional pulse refers to short period single use ads used basically for promoting
products or events.
Points to remember while scheduling an advertisement are:
• Selecting a proper media type for running ads
• Selecting a correct time for running ads so that the purpose is solved.
• Advertisements should be sufficient enough (in number) to deliver the message to the
target.
In today's advertising world, every firm invests heavily on advertisement for making their
products or services known to the target audience and to arouse the interest of target audience
in firm's products or services. Advertising is done with some predefined objectives- to generate
awareness about product, to arouse interest in product, to change the attitude of audience
towards product, to stimulate desire for product, or to make them buy the product.
MEASURING ADVERTISING EFFECTIVENESS
Advertising is of no use if the defined objectives of communication is not achieved. So, it is
necessary to evaluate the effectiveness of advertisement at different level, starting from
creation of ad-copy to running of ad on media, and also after execution of ad to know to what
extent the objectives are achieved.
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Need of Evaluating Advertising Effectiveness:

1. Achieve Awareness: Testing of advertisement will show whether there is an increased


influence of the advertising message, product or service advertised. Testing enables, the
advertiser to be aware of all the reasons why an advertisement has been effective or otherwise.
2. Affects Attitudes: Testing enables the advertiser to know whether the attitude of the
prospects towards the advertised product or service has been changed or not, it also enables
him to understand whether any message of the advertisement is recollected by the customer.
3. Actuate Action: Advertisement testing enables the advertiser to analyse the response by the
prospects to an advertisement. It gives him an idea of when, how, why a customer accepts a
particular product or rejects it. This will help him to present the product in such manner that he
(prospects) takes a favourable or positive action.
4. Judge Overall Effectiveness: Testing of advertisement-helps the advertiser injudging the
total effectiveness of a particular advertisement in respect of their headlines, layout, copy,
illustrations, layout or any other quality that is important within the advertisement.
Thus, advertising evaluation can be done before the campaign is over. The main object of
evaluating the campaign is “to get all the bugs out” before sending precious money. When
advertisements are tested after the campaign it is called “postmortem” of an advertisement
effectiveness.
The advertising can be evaluate or tested before or after its application. Both have got various
advantages.

Types of Test
Following are the types of test applied in advertisement evaluation:
1. Pre-Testing
2. Concurrent Testing
3. Post Testing
1. Pre-Testing
Pre-Testing follows the universal law "Prevention is better than cure". Advertising can be
pretested at several points in the creative development process. Pre-Testing helps the advertiser
to make a final go or no go decision about finished or nearly finished advertisement. Pre-
Testing method refer to testing the potentiality of a communication message or ad-copy before
printing, broadcasting, or telecasting. Following are the types of pre-testing methods:
A. Qualitative Methods of Pre-Testing
1) Focus Group: Focus group involve exposing the ad to a group of 8 to 12
respondents. Focus groups are used with surprising frequency for making final go or no go
decision. A moderator facilitates the discussion and walk s the group through a series of
issues that are outlined in discussion guide.
2) In-depth Interview: In-depth interview involve one on one discussion with respondents.
Interviews are very effective when a researcher has a good idea of critical issues but does
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not have a sense of the kind of responses one will get. This method can be effectively used
to generate new ad concepts and ideas.
3) Projective Techniques: In this technique the respondent is instructed to project himself
into the situation and verbalize the thoughts. projective technique can be very effective for
evaluating ad concepts and for generating new ad concepts. But, it cannot be used for
making final decisions.

B. Quantitative Methods of Pre-Testing


1) Checklist Method: Checklist method is used to test the effectiveness of ad-copy. The
purpose of this method is to ensure that all elements of the ad-copy are included with due
importance in the advertisement. As it is a pre-test method any omitted element of ad can
be included in the copy before release of the advertisement.
2) Consumer Jury Method: This method involves the exposure of alternative
advertisements to a sample of jury or prospects. This test is designed to learn from a typical
group of prospective customers. Advertisements which are unpublished are presented
before the consumer jury either in personal interviews or group interviews and their
reactions are observed and responses are recorded.
3) Sales Area Test: Under this method advertising campaign is run in the markets selected
for testing purposes. The impact of the campaign is evaluated by actual sales in the selected
markets. The market with high sales is considered the best market for effective sales
campaign. In other markets, suitable changes are made in the advertising campaign.
4) Questionnaire Method: It is a list of questions related to an experiment. The draft of an
advertisement along with some relevant questions is to be sent to a group of target
consumers or advertising experts. Their opinions are collected and analyzed to find out
whether the proposed advertisement is satisfactory or not.
5) Recall Test: Under this method, advertising copies are shown to a group of prospects. After
few minutes they are asked to recall and reproduce them. This method is used to find out
how far the advertisements are impressive.
6) Reaction Test: The potential effect of an advertisement is judged with the help of certain
instruments, which measure heartbeats, blood pressure, pupil dilution etc. Their reactions
reveal the psychological or nervous effects of advertising.
7) Readability Test: All the listeners of advertisements cannot read it equally. So respondents
are drawn from different socio economic and geographical backgrounds. This method is
used to find out the level of effectiveness when and advertisement is read.
8) Eye Movement Test: The movements of eyes of the respondents are recorded by using
eye observation camera when advertisements are shown to them in a screen. This helps to
find out the attention value of advertisement.
9) Benefits of Pre-Testing: (i) To check clerical, grammatical, printing or technical errors.
(ii) To make communication more effective from readers points of view. (iii) Minimise
waste in advertising. (iv) To make it more meaningful and effective. (v) It is simple, less
time consuming, and less costly.
2. Concurrent Testing
Concurrent testing is evaluated throughout the whole advertisement execution process. Tests
are conducted while audience is exposed to different type of media. Following are the types of
concurrent testing methods:

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1) Consumer Diaries: Diaries are provided to a selected customer. They are also informed to
record the details of advertisements they watch, listen or read. The diaries are collected
periodically. The result obtained from such a survey reveals the effectiveness of
advertisement.
2) Co-incidental Surveys: This method is also called as co-incidental telephone method.
Under this method, samples of customers are selected and calls are made at the time of
broadcast of the advertisement programme. The data obtained and analyzed will give a
picture about the effectiveness of an advertisement.
3) Electronic Devices: Now day’s electronic devices are widely used to measure the
effectiveness of an advertisement. They are mainly used in broadcast media. These are auto
meters, track electronic units etc.
3. Post Testing
Post testing is done to know- to what extent the advertising objectives are achieved. Following
are the types of post testing methods:
1) Recognition Test: Recognition test involves the ability of viewers to correctly identify ad,
brand, or message they previously exposed to. The types of recognition test are:
2) Starch Test - The Starch test is applied only to print ads that have already run. The
interviewer shows each respondent a magazine or newspaper containing the ads being
tested. For each ad the interviewer asks the respondents to reply to ad related questions.
3) Bruzzone Test - The Bruzzone test is conducted through mail surveys. Questionnaires
containing frames and audio scripts from television commercials are sent to respondents
and respondents are asked whether they recognize the ad and brand.
4) Recall or Impact Test: The recall test is designed to measure the impression of readers or
viewers of the advertisement. If a reader has a favourable impression of the advertisement,
he will certainly retain something of the advertisement. The measures of interest would be
obtained by interviewing the readers or viewers or listeners, days after the advertisement
or commercial is appeared in the newspaper, or on T.V. Interviewer asks the readers or
viewers to answer some ad related questions, and in response to the question asked, the
reader reveals the accuracy and depth of his impression.
ADVERTISING RESEARCH/
EVALUATION OF ADVERTISING PROGRAMME/
Advertising research is defined as the systematic gathering recording and analysing of data
relating to the effectiveness of advertising.
All advertising efforts are directed mainly towards the achievement of business, marketing and
advertising objectives i.e., to increase the sales turnover and thus to market the maximum
profit. The advertiser spends lakhs of rupees in to this advertising activity. In the background
of all these efforts, is an attempt to attract the customer towards the product through advertising.
As soon as the advertising campaign is over, a need is generally arisen to measure the
effectiveness of the campaign. Whether, it has achieved the desired results i.e. desired sales
profitability or results in terms the change in customer‟ behaviour in favour of the company‟s
product which will naturally, affect the future sale of the product.
In order to measure the effectiveness of advertising copy, two types of tests- pretests and post
tests- can be undertaken. Pretests are generally conducted in the beginning of the creation
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process or at the end of creation process or production stage. There are several pre and post
tests techniques to measure the effectiveness of the advertising copy.
The effectiveness of advertising in a particular media may also be measured in any of the
following ways – (a) by giving different addresses to different media, (b) different newspapers
may be selected for advertisements of different departments, (c) coupon blank etc. May be
provided with the advertisement or (d) enquiry from consumers should mention the name of
the source of information. The technique is known as keying the advertising.
Different Types of Advertising Methods and Media
1. Online Advertising (aka Digital)
If you see an advertisement via the Internet (World Wide Web), then it is classified as
online advertising. In fact, there are ads on this very page, and most other websites you
visit, as they are the primary revenue driver for the Internet. Another avenue of online
advertising is "Native Advertising," which is the digital variation of the old print
advertorials. And, sponsored content is growing by leaps and bounds. From ads on
Facebook and SnapChat, to partnerships with Buzzfeed and Reddit, the fastest, easiest
way to reach millions of potential customers is online.
2. Cell Phone & Mobile Advertising
A relatively new form of advertising compared to the others, but one that's dominating
the media mix, uses cell phones, iPads, Kindles, Nooks, and other portable electronic
devices with Internet connectivity. Current trends in mobile advertising
involve major use of social media such as Twitter, Instagram, Snapchat, and Facebook.
Right now, this is the toughest nut to crack. This kind of advertising is not
only disruptive, but can leave the customers with a lot of ill will. If you do it, do it
right. For a while, native advertising was a good way to get into the feed, but even that
has come under scrutiny for being deceptive.
3. Print Advertising
Once a huge driver of sales, print is taking a back seat to the many digital forms of
advertising now available to marketers. However, if there is one thing that's certain
about advertising, it's that being different is good. And when consumers tire of digital
ads, a return to printed pieces, and the tactile feeling and permanence they provide, is
definitely on the cards. Typically, print can be split into three sub-categories:
a) Periodical Advertising
If it's in a magazine, a newspaper, or anything else that comes out at regular intervals,
then it's periodical advertising (aka a print ad). For decades, print ads were the gold
standard for advertisers and their clients. To grab the center spread of a big magazine,
or the back cover of a newspaper, meant millions of people were seeing the message.
b) Brochures, Leaflets, Flyers, Handouts and Point of Sale Advertising
Although some of these can be placed within the pages of newspapers and magazines,
they are treated as a separate entity (usually because they have less chance of being
seen). From something that sits on a counter or customer service desk, to a glossy car
brochure, this is a more intimate, and long-form, way of engaging the consumer. Use
this when you have more information than you can cram into a print ad.
c) Direct Mail Advertising
Either of the techniques mentioned above can be incorporated into direct mail. It simply
means that your printed pieces are mailed direct to the consumer. This is a technique
that has been, and continues to be, abused by inferior marketing agencies that have

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turned the craft into "junk mail." Done right, direct mail can be a fantastic way to engage
the customer, if it is creative and intelligently conceived and executed. Do not count it
out.
4. Guerrilla Advertising
Also known as ambient media, guerrilla advertising (or marketing) has become
prominent over the last 20 years. It is a broadly used term for anything unconventional,
and usually invites the consumer to participate or interact with the piece in some way.
Location is important, as is timing. The driving forces behind guerrilla advertising or
marketing are creative ideas and innovation, not a large budget.
Quite often, you will ask for forgiveness rather than permission with these campaigns,
and they will spread via word of mouth and social media.

5. Broadcast Advertising
A mass-market form of communication including television and radio, broadcast
advertising has, until recently, been the most dominant way to reach a large number of
consumers. Broadcast advertising has really taken a beating over the last few years,
especially with the rise of DVRs and "ad skipping" technology. However, it is still a
popular way to reach millions of people, especially when the Super Bowl comes
around.

6. Outdoor Advertising
Also known as out-of-home (OOH) advertising, this is a broad term that describes any
type of advertising that reaches the consumer when he or she is outside of the home.
You will know it as billboards, bus shelter posters, fly posters, and even those big digital
boards in Times Square.

7. Public Service Advertising


Unlike traditional commercials, Public Service Advertisements (PSA) are primarily
designed to inform and educate rather than sell a product or service. PSAs traditionally
appear on TV and radio, but are also being heavily promoted online these days.

8. Product Placement Advertising


In a nutshell, product placement is the promotion of branded goods and services within
the context of a show or movie, rather than as an explicit advertisement. If you have
ever seen a movie and wondered "wow, they sure are driving a lot of Ford cars in this
scene," or "does everyone in this TV show drink Pepsi?" then you are noticing product
placement. It's a way that these films and shows get funding, and is a great way for
advertisers to reach a targeted demographic.

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MODULE 5
SALES PROMOTION
Meaning: Sales promotion consists of all promotional activities other than advertising,
personal selling and publicity that help to increase sales through non-repetitive and one-time
communication. In other words, it includes marketing activities other than personal selling,
advertising, and publicity, that stimulate consumer purchasing and dealer effectiveness, such
as point of purchase displays, shows and exhibitions, demonstrations and various non-recurring
selling efforts not in the ordinary routine.
Definitions of Sales Promotion
According to American Marketing Association “Those marketing activities other than
personal selling advertising and publicity that stimulate consumer purchasing and dealer
effectiveness such as display shows and exhibitions, demonstrations and various non-recurrent
selling efforts not in the ordinary routine.”
W.J. Stanton defines sales promotion as all those activities other than advertising, personal
selling, public relations and publicity that are intended to stimulate customer demand and
improve the marketing performance of sellers.
Purpose: The ultimate aim or purpose of sales promotion is that of increasing the volume of
sales and profits but it differs from advertising and personal selling both in approach and
techniques. Personal selling involve face to face contact with specific individuals, while
advertising is directed at a large number of potential customers. Sales promotion serves as a
link between two by focussing selling efforts on selected small groups of people. Sales
promotion usually involves non-recurring and no-routine methods, in contrast with the routine
and recurring nature of advertising and personal selling. Under advertising, the media is not
owned and controlled by the advertiser except in direct mail advertisings. But sales promotion
methods are controlled by the advertiser. Sales promotion covers various stimulants directed
to the consumers and dealers, that is why it is of two types-consumers sales promotion and
dealers sales promotion. The former stimulates consumer’s buying at the point of sale, and
latter improves dealer’s effectiveness at the retail outlets.

METHODS
There are four methods involved in sales promotions
1. Consumer sales promotions
2. Trade sales promotions
3. Business to business promotions
4. Sales persons promotions

1.) CONSUMER SALES PROMOTIONS (CSP)


These are promotional activities aimed at the final consumer. These activities rely on what is
known as a “pull strategy”- that is they depend on the consumer to literally pull the product
through the distribution channels. Before looking at the tools and techniques of (CSP) let us
look at some of its specific goals:
a) Encourage trial: Most new products fail because too few people try the product or
because trial does not lead to repeat purchase. Especially when the concept is new, most people
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are hesitant to take risks. Sales promotion directed at the consumer offers a reason for trying
the new offering.
b) Encourage brand loyalty: It is not enough to persuade consumers to try your product.
The real challenge lies in getting them to stay with your brand. As we saw with the subscription
wars competitors are always ready to come up with counter offers to woo away your customers.
c) Increase product usage: (CSP) could also aim to persuade customers to buy a product in
larger quantities.
d) Encourage consumption of other products in your line: when marketer’s product
portfolio consists of several related products, (CSP) may aim to create demand for more than
one product.
e) Reinforce advertising efforts: (CSP) could help to emphasize product benefits
highlighted in the advertising.
Promotional Instruments/A single technique, or a combination of techniques may be used. The
various tools/techniques involved in the (CSP) are:
(i) Sample: Usually called consumer sample, free samples and given to consumers to introduce
a new product or to expand the market. The consumers can try the product.
(ii) Demonstrations or instructions: These are instructions given to educate the consumers
about using the product. This method may be used in products like Vacuum cleaner.
(iii) Coupon: It is a certificate that reduces the price. When a buyer gives a coupon to the dealer
or retailer he gets the product at lower price. For example, in DCM coupon system if regular
price is Rs.20, with a coupon it is Rs.18. These are also known as discount coupons. Coupons
are also accepted as cash by retailers.
(iv) Money-refund orders: The technique indicates refund of full purchase price if the buyer
so wants. It is helpful in the introduction of a new product. Refund offer creates additional
interest and increases sales considerably. It is a good device for creating new user and to
strengthen the brand loyalty.
(v) Premium (gift) offers: These are temporary price reductions, which appeal to bargain
instinct, e.g., instant coffee sold in carafes by one company was very successful. Towels, dinner
ware, hair-brushes, keychains, artificial flowers, ball pens, toilet soaps, blades, were given as
inpack premiums. Attractive reusable jars costing separately say Rs. 12 may be given as at an
extra charge of Rs. 4 only. Liril gave a soap box almost free with two soap cakes.
(vi) Price-off: The price off label is printed on the package, e.g., Rs. 4 offer a Brooke Bond tea
pack of 500 grams. It gives a temporary discount to the consumers.
(vii) Contests or quizzes: These are held to stimulate consumer’s interest in the product. In
these contests, and quizzers, participants compete for prizes on the basis of their skill or creative
ideas. In Sweepstakes, they submit their names to be included in a draw of prize winners. This
type of sales promotion is not a lottery because there is chance or luck, prizes are offered and
a payment to participant is there.
(viii) Trading stamps: Trading or Bonus stamps are issued by retailers to customers who buy
goods from there. The number of stamp given to a buyer depends upon the amount of purchases
made by him. For instance, in India Roman Bonus Stamps are issued at the rate of 2-1/2 percent
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of the purchase amount. These stamps are given free of charge and the customers can redeem
them to obtain products out of the specified list. This technique induces customer to buy their
requirements from the retailers who offer such stamps. The purpose is to increase customer
loyalty.
(ix) Fairs and exhibitions: Trade shows, fashion shows or parades, fairs and exhibitions are
important technique/tools of sales promotion. They provide a forum for the exhibitions or
demonstration of products. Free literature can be distributed to introduce the firm and its
products to the public. Fairs and exhibitions are organized usually by big firms or trade
associations. At these fairs and exhibitions, business firms are allotted stalls wherein they
display their products. Fairs and exhibitions have wide appeal as several people visit there.
Customer can be attracted through gifts, special concessions and free demonstrations of
technical and speciality products. They provide an opportunity to the visitors to observe the
competing products and help to promote sales. For instance, the Trade Fair Authority of India
organises Trade Fairs of various types in New Delhi. The National Book Trust organises World
Book Fair, where publishers of all over the world are invited to display their publications.
Sometimes sales conventions or conferences of dealers are held. Producers of garments often
organise fashion shows to promote their products.
(x) Public relations activities: These include greetings or thanks in newspapers, donating
space for noble causes, offer of Privileged Citizen Card, etc. Their purpose is not to create
immediate demand or to increase sales. They are designed to create a good image of the firm
in the society.
(xi) Exchange scheme: This technique offers to exchange the old product with new in payment
of a fixed amount which is less than the original price for example, exchange of old Black &
White Television for Colour Television by paying rupees 8000 only (original price is rupees
10000) was offered by a particular producer of colour TV sets.
2.) TRADE SALES PROMOTIONS (TSP)
CSP contributes only partially to the success of a product. Much also depends on the
willingness of wholesalers and retailers to carry and sell the product. This is particularly
important today when power has shifted from the marketer to the
retailer. A few years ago, companies with huge advertising budgets and extensive
distribution networks could use their marketing muscle to move products onto retail
shelves. Today retailers command terms and demand incentives from the manufacturer for
giving preference to his products. Either one or a combination of tools/techniques may be used
to achieve the above goals:
i. Trade deals: This is a short-term arrangement whereby the wholesaler and the retailer
agrees to give a manufacturers product a special promotional effort. The deal could take
the form of product discounts, cash payments or additional discounts offered by the
manufacturer.
ii. Buying allowance: this could take the form of cash payment, a product discount or
additional goods offered to a distributor to encourage him to carry a new item that he
may not ordinarily buy or to encourage purchase of a certain quantity of an existing
product during a certain period. It is a push strategy.
iii. Display allowance: this is a cash payment given in a form of a fee or a discount in
exchange of a desirable shelf, location or space for a point of purchase display. It is
generally given to support an established product.
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iv. Slotting allowance: this is a technique generally used to promote new products. It also
involves a cash payment or a fee given to the retailer in exchange for a slot or position
on a shop shelf.
v. Sales support: both dealers and the sales force need to be equipped with some basic
selling tools in order to push the product. Sales support could take the form of training
programmes, seminars, product demonstrations and distribution of materials such as
brochures, videotapes and slides that show detailed product information. Prepared by
the advertiser for dealer or salespersons use these materials could be presented to
prospects during sales calls at (POP) or at trade shows.
vi. Yellow pages advertising: this form of advertising is much more common in the U.S.
than in India. An ad in the yellow pages of a directory creates awareness regarding
availability of your product. Once a prospect has seen an ad or a commercial for your
product he tends to check the yellow pages to see where he can buy it.
vii. Specialty advertising: This another way of advertising in non-traditional media. Pens,
calendars, diaries are all examples of specialty advertising. In contrast to premiums
which are given only when purchasing a product, specialty items are offered free of
charge without having to purchase something. Their purpose is to create goodwill.

3.) BUSINESS TO BUSINESS (B2B)


Business to business is also an important method of sales promotions. But they are used for
industrial products and not much for consumer products. Therefore, their sales promotions
techniques may also differ from that of consumer products. For example, a company needs
spare parts as a major input or raw material then it will have an auction where different
suppliers will come and the supplier that bids the lowest price will be chosen. Now suppose
the company wants 1,00,000 spare parts then it will go for economies of scale and try and
purchase say about 80,000 spare parts from that particular supplier with some sort of
concession.
4.) SALES PERSON’S PROMOTIONS
The following promotion aids are used for sales force promotions:
a) Sales meetings: producers often organize annual meetings for the sales force for giving
them necessary information about any new product to be introduced, new sales plans and
techniques and the new sales programme of the producers.
b) Contest: sales contest for the salesman are organized from time to time by the producers.
They are awarded with cash prizes and other benefits on the basis of highest sales,
minimizing field expenses etc.
c) Sales literature and letters: salesmen are provided with various printed literatures, such
as sales manuals, folders, price lists, designs and directories of customers etc. it is extremely
helpful to them un their contacts with customers.
d) Product demonstration kits and visual sales aids: salesmen are often provided with
sales kits, containing the models of industrial and technical products.
e) Premiums bonus and gifts: premiums are given for achieving prescribed sales quotes.
Bonus is paid to salesmen from the portion of profits of the firm every year to motivate him
for better efforts. Gifts are also given on special occasions such as Diwali, Holi etc.

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PROMOTIONAL STRATEGY
The objectives of product promotion are to increase sales, attract customers, improve product
recognition and enhance brand identity. Product promotion benefits businesses by generating
consumer demand, and benefits consumers by providing needed information about product
availability and uses. Because of intense competition, it is critical to plan an effective strategy
before initiating a promotion campaign. It is particularly important for small businesses to
utilize their limited resources effectively.
i. Activities
Sales promotion activities include advertising campaigns, product demonstrations,
trade shows, free sample campaigns, seminars on related topics, media campaigns,
telemarketing, door-to-door sales, direct mail campaigns and other activities -- the
breadth of sales promotions activities is limited only by creativity. To mount an
effective product promotion campaign, however, you must be aware of customer
psychology and buying patterns as well as the nature and extent of your competition.
ii. Push Strategies
Push promotional strategies are demand-driven. A push strategy is designed to market
the product to resellers, such as wholesalers and retailers, to convince them to provide
shelf space to the product and to advertise it. The campaign usually involves offering
discounts, free trials, quality guarantees and other persuasive means. The manufacturer
of a new product may offer the product to resellers on a consignment basis to reduce
the risk to the reseller.
iii. Pull Strategies
Pull strategies are demand-driven because they target the end user. Manufacturers and
wholesalers use this strategy when retailers are reluctant to carry their product for some
reason -- the product may be too expensive to sell at retail outlets, for example. Pull
strategies include free samples, public promotional events such as contests, door-to-
door sales, point-of-sale displays, Internet marketing campaigns and telemarketing
campaigns. Media campaigns designed to associate the product with a public good
(such as environmentalism, for example) can be classified as indirect pull strategies
because they are ultimately targeted at consumers, but involve no direct request to buy.
iv. Hybrid Strategies
Hybrid promotion strategies incorporate both push and pull elements. One type of
hybrid strategy involves simultaneous initiatives to both resellers and end users.
Another type involves partnering with retailers to help them sell the product, often
partly at the manufacturer's or wholesaler's expense. Network marketing is a
particularly innovative hybrid strategy because it recruits people who function as both
resellers and end users at the same time.

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MARKETING COMMUNICATION
"Marketing communications are the means by which firms attempt to inform, persuade, and
remind consumers - directly, or indirectly - about the products and brands that they sell."
(Kotler and Keller)

Marketing Communication Mix

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Marketing is a broad business function that includes product research and development,
merchandising and distribution processes and pricing, as well as communication or promotion.
The communication mix refers to specific methods used to promote the company or its products
to targeted customers. Some depictions of the promotional mix include five elements, while
others add a sixth -- event sponsorship.
1. Advertising
Advertising is often the most prominent element of the communication mix. In fact,
marketing and advertising are often misconstrued as the same thing. Advertising
includes all messages a business pays to deliver through a medium to reach a targeted
audience. Since it involves the majority of paid messages, companies often allocate
significant amounts of the marketing budget to the advertising function. While it can
be costly, the advertiser has ultimate control over the message delivered, since it pays
the television or radio station, print publication or website for placement.
2. Personal Selling
Personal selling is sometimes integrated with the direct marketing element. However,
many companies make such extensive use of a sales force that it is important to consider
this component distinctly. Distribution channel suppliers use salespeople to promote
products for resale to trade buyers. Retail salespeople promote the value of goods and
services to consumers in retail businesses. Selling is more emphasized by companies
that sell higher-end products and services that require more assertive efforts to persuade
customers to buy.

3. Discounts and Promotions


Sales promotions or discounts are similar to advertising in that they are often promoted
through paid communication. However, sales promotions actually involve offering a
discounted price to a buyer. This may include coupons, percent-off deals and rebates.
Along with ads to promote deals and coupon mailers, companies use exterior signs and
in-store signage to call customer attention to the discounts. Goals of this communication
tool include increasing revenue and cash flow, attracting new customers and clearing
out extra inventory.
4. Public Relations
Public relations is sometimes somewhat similar to advertising in that much of it
involves messages communicated through mass media. The major difference is you
don't pay for the time or space for the message. A television or newspaper feature story
mentioning a business, for instance, isn't paid for and can provide brand exposure. The
downside of PR is that you don't always control the messages. You can try to influence
them through press releases and invites for media coverage, but the media could put a
negative spin on the story.
5. Direct Marketing
Direct marketing includes some aspects of both sales promotions and personal selling.
It is interactive communication with customers where the company's message seeks or
implores a response from targeted customers. E-mail and direct mail are common
formats. These messages are sent to customers with special offers or calls to action,
often promoting limited-time deals or new product launches. Mail-order clubs, online
or print surveys and infomercials are other examples of direct marketing
communication.
6. Event Sponsorship

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Event sponsorship is the element sometimes left out of the five-element communication
mix. Many models include it within advertising. Event sponsorship occurs with a
company pays to have a presence at a sport, entertainment, non-profit or community
events. The sponsorship may include a mix of benefits including booth representation
during the event to hand out samples, gifts and literature, name mention during the
event and ad spots connected to the event.

PERSUASION MARKETING
What is Persuasion Marketing?
Persuasion marketing applies what we know about human psychology to develop techniques
to market products or services. In this case, it specifically applies to the promotions aspect of
the marketing mix, and builds on a customer's impulsive behaviour to lead them to purchase.
In terms of Internet commerce, persuasion marketing includes how a web page is designed.
Again, applying human psychology to web design—focusing on the part of the decision-
making process that’s not consciously controlled—elements such as layout, copy, and
typography, combined with the right promotional messages, encourage website visitors to
follow pre-planned pathways on the website, and take specific actions, rather than giving them
free reign of choice in how they interact with the website.
Who employs Persuasion Marketing?
Salespeople have been using persuasive techniques for as long as they have been around, and
now work to translate these techniques on the web. Persuasion marketing, in fact, was a top
subject discussed by keynote speaker Susan Bratton at the 2011 SES (Search Engine Strategies)
San Francisco convention, attended by more than 1,000 marketing and advertising
professionals. It’s a topic, and a strategic approach, that appeals to marketers in a variety of
industries. If you have an e-commerce website, then you want to convert visits to sales—and
persuasion marketing techniques ease that process.
For what kinds of customers is persuasion marketing effective?
One of the insights of persuasion marketing is that customers’ sensitivity to persuasive
arguments varies according to a number of factors, including their immediate emotional state.
Therefore, in order to increase the chances of converting a customer, a salesperson or marketer
needs to look for a “persuasion window,” open one if they can, and make the deal before it
closes again.
Examples of persuasion window
• when in a good mood
• when the world doesn’t make sense
• when indebted to a favor
• can (or must) take immediate action
• right after a mistake
• right after being denied a request

Elements of persuasion marketing

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• Structured communication, like the “planned conversation” of interpersonal sales, is


about controlling the order of the dialogue, or how information is presented to the
consumer. The goal is to move a customer along his or her “impulse curve,” initially
encouraging a customer’s impulse, and making a call to action after that impulse level
has been raised to its highest point. In website design, it means that the first page the
customer sees does not immediately seek a sale, but instead presents the initial message
and encourages further exploration of the website.
• Storytelling uses a narrative framework to invoke a customer’s emotional and
subconscious responses, so that they join—or dominate—their more analytical
responses. Use of particular words and images evoke habitual emotional responses,
such as affection, familiarity, empathy, and desire for triumph/resolution.
• Copywriting is using the right words and phrases for headings, captions, product
descriptions, and other text. For example, when people scan material (and most Internet
pages are scanned before they’re read), questions stand out more than statements, so
“What is the best way to capture attention?” catches more attention than “How to
capture attention.” The persuasion marketer field-tests different kinds of copy, in order
to determine which is most likely to produce the emotion or answer he or she’s looking
for.
Different words describing the same thing can have very different connotation.
“Choices,” for example, produces a positive emotional response, but “trade-offs”
produces a negative one. Additionally, the copywriter and marketer must remember
that the fear of loss is more motivating for most people than the promise of gain. Thus
“don’t miss out” has more impact than “this can be yours.”
• Neuromarketing is perhaps the most important component of persuasion marketing,
applying psychology to the marketing message. Psychological research reveals
information about the diverse factors that contribute to a decision—and as much as 90
percent of that all takes place beyond our conscious reasoning. For example, research
demonstrates that visual and olfactory cues are important for “priming” a particular
mood; therefore, grocery stores display flowers in the front in order to “prime”
customers with the image of freshness. In terms of website design, it means using color
scheme and particular visual imagery to improve visitors’ response to the website.
Weapons of Persuasion
• Reciprocation — obligate people emotionally by giving them something
• Commitment — secure a small commitment, then build on it; people don’t want to
back out on the initial commitment, so they are more likely to comply with new terms
• Social Proof — testimony of peers
• Authority — perceived expertise
• Liking — people are more likely to buy if they like you, so be friendly (and be
physically attractive—never show ugly people in your pictures)
• Scarcity — of either the product, the offer, or the time; this does not need to be real,
only perceived

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SALESMANSHIP
Definition:
According to W.G Carter, “Salesmanship is in attempt to induce people to buy goods.”
According to the National Association of Marketing Teachers of America, “It is the ability to
persuade people to buy goods or services at a profit to the seller and benefit to the buyer.”
According to Holtzclaw, “Salesmanship is the power to persuade plenty of people to
pleasurably and permanently purchase your product at a profit.”
According to Carfield Blake, “Salesmanship consists of winning the buyers’ confidence for the
sellers’ house and goods, thereby winning regular and permanent customers.”
Salesmanship is seller-initiated effort that provides prospective buyers with information and
motivates or persuades them to make favourable buying decisions concerning the seller’s
products or service. The salesman of today has to react and interact in any different ways to
many different people
“The personal selling” and “salesmanship” are often used interchangeably, but there is an
important difference. Personal selling is the broader concept. Salesmanship may or may not be
an important part of personal selling and it is never ‘all of it. Along with other key marketing
elements, such as pricing, advertising, product development and research, marketing channels
and physical distribution, the personal selling is a means through which marketing programmes
are implemented.
Importance of Salesmanship:
1. Important to Producers:
Salesmanship is important to producers and manufacturers. For pushing products into the
competitive market, salesmanship is necessary. To capture new markets also salesmanship is
very important. Salesmen increase the sales volume. It brings larger profits to the
manufacturers. Salesmen work as the “eye and ear” for the manufacturers.
They improve their products according to the taste of the consumers. They improve their sales
policies by keeping in mind the suggestions, impressions and complaints of the consumers. He
is the creator of demand. Hence it leads to increased production and increased business activity.
As such it increases employment opportunity as well as personal incomes.
2. Important to Consumers:
Salesman educates and guides the consumers. He gives them more satisfaction. ‘Consumers
are right’ in the marketing. As such, he gives more importance to them. Salesman helps the
consumers in making the right decision and proper selection of the products which they want
to buy. Salesmanship increases the rate of turnover, and hence reduces unsold stock. As such
it minimizes the economic stagnation. Consumers can select the best products according to
their requirements, taste and money.
A salesman helps the producer and consumer in the following ways:
1. It is a flexible tool: Personal selling is a flexible tool in promoting sales and can adopt to
the need of specific buyer. Salesman can present his ideas or message to fit the needs of the
buyer. His presentation is different in each case tailored to suit the buyer. He can observe the

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customer’s reaction to a particular sales approach and makes necessary adjustment in his way
of presentation, right on the spot.
2. It involves minimum wasted efforts: In personal selling, the salesman directly attacks the
target market and concentrates on the prospective customers. A salesman does not waste his
efforts if he thinks that the person to whom he is talking is not a real prospect.
3. It results in actual sales: Personal selling is complementary to advertising and promotion
technique. Advertising and promotion techniques can only attract attention of the customers
and arouse desire to purchase the goods. They simply create demand. Personal selling converts
that demand into actual sale by persuading the people to buy the product. A salesman answers
the doubts of the prospective buyers and convinces them to purchase the goods.
4. It provides feedback: Advertisement provides information about the product, but the pro-
ducer but does not get to know any information about the tastes and mood of the consumers.
The personal selling provides a two-way communication between the buyer and the seller.
A part from providing information to the buyer about the product and producer, it provides
knowledge about the tastes, habits and attitudes of the prospective buyers. Any complaint about
the firm or its product may be obtained from prospective buyers.
Any complaint about the firm or its product may be registered with the salesman; and based on
this feedback the company can determine their strengths and weakness of the marketing
programme as well as the product.
5. Advantages to consumers: A salesman helps the consumers in many ways. He informs the
customers about the new products introduced to the market, suggest them the use of a product
that will best satisfy they’re as a purchaser think themselves an honourable person in whom
the producer is interested. If consumers have any doubt about the product or its use, they can
ask the seller and get solutions/clarifications to their satisfaction.
Limitation
Despite the various advantages, personal selling has a number of limitations. First, personal
selling is the costliest element of the promotional mix. Cost per customer is very high because
of one of one nature of selling. Secondly, Personal selling can accommodate only a limited
number of consumers at a given time because he can attend only one customer at a given time.
Thirdly, it is quite ineffective for creating consumer awareness about a product or service. This
role is better assumed by advertising. Finally, Personal selling on the retail level, has poor
image in the eyes of the consumers. It is criticized for lack of honesty, strong pressures sales
tactics, poor knowledge etc.
Duties of a Salesman:
1. The principal duty is to make sales of products or services.
2. He has to do the assigned duty (travelling).
3. He has to make collection of bills relating to sale.
4. He has to make report-Sales made, Calls made, Services rendered, customers lost,
competition and any other matters, relating to firm.
5. All complainants must be satisfied peacefully.

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6. He has to attend sales meetings.


7. A salesman with his experience must supply information in order to solve problems
relating to product or the firm.
8. He must maintain a good relation with the customers.
9. He must assist the customers to make good selection.
10. He must develop a goodwill for the firm and the products.
11. He must have cooperative habits.
12 He takes periodic inventories of the stocks.
Characteristics or the Qualities of a Successful Salesman:
1. Establishing good relationship with a variety of people.
2. Learning quickly and adapting smoothly.
3. Planning ahead and efficiently managing his time and efforts.
4. Working hard to achieve his goals, dedicating himself to provide long-term service, rather
than having a get-rich-quick attitude.
5. Communicating clearly both in speech and in writing.
6. Thinking analytically and learning to break problems down to their basic components.
7. Producing constantly both in quality and quantity rather than performing erratically.
8. Persisting steadily his goal and not giving up easily.
9. Possessing and living up to high moral characteristics that enable people to admire, respect
and trust him.
Step in the process of personal selling (Salesmanship)
The process of personal selling consists of the following steps:
1. Pre-Sale Preparation: The first step in personal selling is the preparation of sales
person. The sales persons must be properly selected trained and motivated for the job.
They must be fully familiar with the producer, the product, the market and the selling
techniques. They must be fully aware of the motivation and behaviour of the people
who are the prospective consumers. They should also be well informed about the nature
of competition and the nature of competitor’s products.
2. Prospecting or Locating the Prospective Buyers: It refers to locating the potential
buyers for the product and satisfactorily buyers for the product and satisfactorily screen
them to make sure that their sales efforts will not go waste. He should examine the need
of the buyers and their ability of capacity to buy the product. It should always be
remembered that every one cannot be a prospect. A sales person should thoroughly
examine the records of the part and resent customers in his efforts to determine the
characteristics of his prospects. He should also tap other sources of information.
3. Approaching: Before calling on the prospects, the sales person should try to get
information about their number, habits, spending capacity, motives, etc. He should
know what product or brand they are using. After collecting such information, she
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should approach the customer in a polite and dignified way and introduce himself and
his product to the prospective customers. He should not be over-clever or deceptive at
this stage. A counter-sales person should be very careful in attending the customer. If
he is busy in attending some other person, he should assure the new customer that they
would be attended very soon. He should be careful in his first impression.
4. Presentation: The sales person, under this step, has to gain the customers attention.
For this purpose, he should present his product and describe its characteristics in brief.
He should understand the attitude of the prospect and match with his attitude so that he
may be able to hold his attention and create interest in the product. There is no specific
approach which will be successful in all cases.
5. Demonstration: Demonstration is one of the bet methods of presentation. If necessary,
the salesperson should display and demonstrate the working of the product. He should
explain and describe the utility of the product in brief through demonstration so that
prospect realizes the need for the product to satisfy his wants. He should not be in a
hurry to impress the customer and should avoid any controversy. He may suggest uses
of the product and may create and impulsive urge to possess the co-monody, by
appealing to human instinct.
6. Handling Objections: As every customer wants to make a best bargain for the money
he is spending, presentation and demonstration of the product are likely to create some
doubts and objections in the minds of the prospects. The sales person should be ready
to clear all doubts and queries if the prospects without losing his temper. Handling
objections tactfully helps in convincing the customers.
7. Closing the Sale: Making customer agree to buy goods and services means closing the
sale. It is not in easy risk. The sales person should not force the prospect to buy but he
should let the consumer feel that he has made the final decision. He should guide the
customer that he has made the right choice. Some adjustment in price or other
concession may sometimes be necessary for a successful closing. During presentation,
the sales person should try a trial close in which he or she asks certain queries that
assume that the prospect will purchase. But later on, he may change his mind by getting
more information. In such cases, sales are lost because of the failure of the salesman to
ask for the order.
Once the prospect has purchased the goods, the salesperson should show and suggest
an allied product. For instance, if a customer purchases a shirt, the sales person should
ask him to purchase the handkerchief, socks, etc.
8. Follow up: After closing a sale, follow up is a must. It refers to the activities undertaken
to ensure the customer that he has taken the right decision of buying the product. These
activities include installation of the products, checking and testing its smooth
performance, maintenance and after sale service. It helps building long-term
relationship with the customer.

Type of Salesmen:
1.Manufacturer’s Salesmen:
(a) Missionary Salesmen:
They are also known as Creative Salesmen or Pioneer Salesmen. They are employed by
manufacturers and do the work, of missionary nature. They create demand for the products.
They usually develop goodwill. They call on distributors- wholesalers, retailers, customers, in

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order to educate, train and induce them to promote the products. Manufacturers of medical
supplies use this type of salesmen to promote their products.
(b) Merchandising Salesmen:
They assist dealers by giving suggestions on display, store- layout, service facility etc. They
arrange wide publicity and conduct demonstration for dealer salesmen, by even working along
with them. They are largely involved in drugs, medicines, grocery etc. There is a wide scope
for this category.
(c) Dealer-Servicing Salesman:
These salesmen call on retailers in their territory and visit them often. They bring samples of
new products, take orders and make up window display.
(d) Sale Promotion Salesmen:
They are also known as Retail Salesman. They are specialised in promotional work. They are
representatives of medical firms or publishers. They may not take spot orders but they try to
convince people like doctors about the new drug, research work, testing, result etc. They create
demand by calling on customers,
(e) Technical Salesmen:
They are trained technically. They provide technical assistance to company’s customers on
matter connected with the product, its quality, its design, its installation etc. Generally these
types of salesmen deal with computers, equipment’s, machinery items, chemical products etc.
2.Wholesaler’s Salesmen: Products reach the hands of customers through a number of
channels, the main channel being wholesalers. They are the nerve-centres of distribution
between manufacturers and retailers. These salesmen are mainly concerned with retailers
through whom the products are to be marketed.
3.Retail Salesmen: They are of two types: 1. Indoor salesmen and 2. Outdoor Salesmen.
Indoor salesmen work within the store—counter sales over the counter. They do not need
training as they have to face only customers and not the prospects. They deal with regular
buyers. They are order filling salesmen.
They receive orders and execute them. They must have good manners and a helpful attitude.
They must be able to guide the customers and help them to make quick decisions. They must
also be knowledgeable and honest. Above all, they must maintain products in the shelves in an
attractive manner.
Outdoor salesmen may also be called travelling salesmen. Their main job is to make regular
travels, visit customers, canvass orders etc. They must possess all the qualities of ideal
salesmen.
4.Speciality Salesmen: They are to sell speciality products-expensive durable goods, furniture,
books, house furnishings, washing machines, automobiles, refrigerators etc. People purchase
these products only after a personal and careful selection, because they do not buy them
frequently. Salesmen of this kind must be masters of the art of salesmanship. They are
representatives of manufacturers, who produce special items.

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Difference between Salesmanship & Sales Promotion

BASIS FOR PERSONAL SELLING/


SALES PROMOTION
CUSTOMER SALESMANSHIP

Meaning Personal Selling is a marketing tool Sales Promotion is a range of


in which the sales person presents non-personal marketing
the goods to the customers and activities that are carried on to
instigates them to purchase it. initiate sales of product and
service.

Consequence Long term increase in sales Short term increase in sales

Cost involved High Comparatively less

Communication Face to face Indirect

Customers Few Many

Incentive schemes Not always present Always present


and offers

Nature of product Customized and technically complex Standardized and easy to


understand

Method used for High value Low value


which kind of
product

Key Differences Between Personal Selling and Sales Promotion


The following are the major differences between personal selling and sales promotion
1. Personal Selling is an element of promotional mix, where salesman visits the customer
and displays the goods to initiate the purchase. Sales Promotion is a tool used to
stimulate sales by employing incentive element to attract customers.
2. The effect of personal selling can be seen in the long run when there is an increase in
sales. Conversely, sales promotion activities may result in an instant growth in sales but
for a short term only.
3. Personal Selling is an expensive tool as compared to Sales Promotion.
4. Personal Selling involves face to face interaction between prospective buyer and the
company representative which is not in the case of Sales Promotion.
5. In personal selling the market size is small, and that is why there are few customers
only. Unlike Sales Promotion, where the market size is large, so there are end number
of potential customers.
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6. The major tool of sales promotion is the incentive schemes and offers, but these tools
are not used in case of personal selling.
7. Personal Selling is used when the product value is high, and it is difficult to understand,
whereas Sales Promotion the product value is comparatively low and easy to use.

AFTER SALES SERVICE


After sales service refers to various processes which make sure customers are satisfied with
the products and services of the organization.
The needs and demands of the customers must be fulfilled for them to spread a positive word
of mouth. In the current scenario, positive word of mouth plays an important role in promoting
brands and products.
After sales service makes sure products and services meet or surpass the expectations of the
customers.
After sales service includes various activities to find out whether the customer is happy with
the products or not? After sales service is a crucial aspect of sales management and must not
be ignored.
Why After Sales Service?
After sales service plays an important role in customer satisfaction and customer retention.
It generates loyal customers.
Customers start believing in the brand and get associated with the organization for a longer
duration. They speak good about the organization and its products.
A satisfied and happy customer brings more individuals and eventually more revenues for the
organization.
After sales service plays a pivotal role in strengthening the bond between the organization
and customers.
After-sales service has several elements, as told by Philip Kotler (2002) that elements in the
after-sales service are as follows:
1) Warranty
Warranty is one very important factor in carrying out after-sales service, as said by Thomas
A. Gannon (1987: 88) in Philip Kotler (2002: 508) that:
“A warranty assures the buyer That product is of a kind specified (Meet Specification) and is
free of encumbrances (Workmanship Defect or Material) A guarantee That assures a product
performance will amply with the warranty. Simply Stated if the product does not melt the term
of the warranty listed, it will be repaired or replaced at the option of seller.”
Warranty is shown to convince consumers that the product is in good condition or free from
damage, a result of inaccuracy or use materials that are less well applicable for a period of time.

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2) Provision Accessories
In the implementation of after-sales services, supply of spare parts is very important, because
in the absence of spare parts that are defective product components cannot function properly,
even these products cannot be used again. Thomas A. Gannon (1987: 88) in Philip Kotler
(2002: 509) said:
“A service is that component parts or subassembly That may be needed at some time to keep
the appliance or device Operable for the user. The component or assembly will be required to
satisfy the original warranty repair the appliance or device beyond the basic warranty period,
and be available at all the times to Insure and protect the good will of purchases to the and that
he will maintains his brand loyalty.”
So, the supply of accessories is one factor that plays an important role in satisfying consumer
junior fashion business, which in turn will maintain customer loyalty that has been owned.

3) Maintenance and Repair Services


Service and maintenance and repairs are needed if a product has a consumption of time and
require regular maintenance in order to always function properly, and also to repair any damage
that occurs in the product during use.
4) Facilities and Equipment
Facilities and equipment of a product is a means to perform after-sales service. Sophisticated
equipment and supplies will be able to determine the smoothness of the service personnel in
performing maintenance and repair products bought by consumers
After Sales Service Techniques

▪ Sales Professionals need to stay in touch with the customers even after the deal. Never
ignore their calls.
▪ Call them once in a while to exchange pleasantries.
▪ Give them the necessary support. Help them install, maintain or operate a particular
product. Sales professionals selling laptops must ensure windows are configured in the
system and customers are able to use net without any difficulty. Similarly, organizations
selling mobile sim cards must ensure the number is activated immediately once the
customer submits his necessary documents.
▪ Any product found broken or in a damaged condition must be exchanged
immediately by the sales professional. Don’t harass the customers. Listen to their
grievances and make them feel comfortable.
▪ Create a section in your organization’s website where the customers can register
their complaints. Every organization should have a toll-free number where the
customers can call and discuss their queries. The customer service officers should take
a prompt action on the customer’s queries. The problems must be resolved immediately.
▪ Take feedback of the products and services from the customers. Feedback helps the
organization to know the customers better and incorporate the necessary changes for
better customer satisfaction.
▪ Ask the customers to sign Annual Maintenance Contract (AMC) with your
organization. AMC is an agreement signed between the organization and the customer
where the organization promises to provide after sales services to the second party for
a certain duration at nominal costs.

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▪ The exchange policies must be transparent and in favour of the customer. The customer
who comes for an exchange should be given the same treatment as was given to him
when he came for the first time. Speak to him properly and suggest him the best
alternative.

8 types of service to offer after sales


1. CARDS: A piece of physical correspondence is always a strong marketing tool. Not only
does it get your brand into the hands and home of your customer, but it also serves as a physical
reminder of your company while sitting on their kitchen counter for a day or two. Carefully
craft the card’s message, pick a meaningful post-sale arrival day and always reinforce that
you’re available. This process can even be automated with services like Zen Direct or Send
Out Cards.
2. QUALITY AND UNIQUE PACKAGING: Today’s retailers are capitalizing on the
modern customer’s recycling habits, shifting their shopping bags to reusable ones that
customers use for a variety of reasons. This is very intentional. Investing in quality, good-
looking, distinct packaging is a great way to provide after sales service. It benefits both the
customer and your brand.
3. COUPONS: Did you just complete a sale? Why not catalyse another? Depending on your
product or service offering, extending a coupon to a recently converted customer as a token of
gratitude could do just that. If a secondary purchase doesn’t make sense for your customers,
consider prodding customers toward buying your product or service as a gift with the coupon
you’re presenting. Or consider providing a coupon that encourages the recipient to give it to
a friend, family member or next-door neighbour. Both options provide tangible post-sale value.
4. PERSONAL PHONE CALL: If applicable, call your customers within thirty days of a
sale. Don't call to upsell or ask for referrals, but instead simply to ask how your product or
service is working for them and if there’s anything they need. This simple human touch can
solidify a customer’s loyalty. And if they don’t pick up or don’t have time to talk, don’t sweat
it. Just leave them a simple message letting them know that you appreciate their business and
are available for any questions they have.
5. TUTORIALS: Maybe your product is nuanced and difficult to use. Maybe it has some
often-underused features. Consider creating or hosting a tutorial, something that adds tangible
value to the product. A tutorial not only puts your brand back on the radar screen of your
customers but also provides unique, interactive after-sales service and maintains engagement.
6. PERIODIC SURVEYS: Customers of certain business types may really appreciate being
included in the feedback loop via periodic surveys. Some businesses attach a coupon to survey
completion, boosting the value that comes with allowing a customer to feel that their voice is
heard.
7. BIRTHDAY EMAIL OR GIFT: Birthday recognition through a timely email or a
thoughtful gift can be very powerful. This is especially true if you are reaching customers
months after a sale, at a time when their memory of your brand is fading or gone. Consider
pairing a coupon with a birthday email and craft the language to be fully genuine—free of a
sales-y tone and what the recipient may perceive to be ulterior motive. Simply wish them a
happy birthday.

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8. HOLIDAY ANNOUNCEMENTS: Holidays are great excuses for re-engaging past


customers with your brand. Even if your message simply announces a closure during a holiday
season, wishing the customer an enjoyable holiday, it’s a reminder that your brand exists.
Holidays are also a common time to run promotions and sales.

SEASONAL VARIATION IN SALES


Changes in inventory levels, profits, sales volume, etc., caused by seasonality of the business.
The last but also equally important criterion for evaluating vehicle media choice is the timing
of advertisement. The reasons for the importance of the decision may be two-fold - (i) Seasonal
ability of product sales, and (ii) staggered effects of advertising. The advertiser should, after
considering these two elements, decide on the scheduling of advertisements to improve the
effectiveness.
A good advertisement should be able to create desire in the minds of the readers about the
product. It is not enough for a good advertisement to attract attention create interest but also
arouse desire in the heart of the prospect to have the product. The advertiser should make use
of proper appeals and selling points while creating desire for the product. Making use of proper
appeal will depend on the seasonal consumption of the product. For example, the sale of rain-
coats in monsoon will emphasise self-protection against rains. It is through the sales appeal
that the advertiser creates a desire for the product.

METHODS TO INCREASE SALES


There are many ways to increase sales without incurring additional costs. And although the
approaches may vary depending on the industry and company, here are five that can be applied
to any company.
1. Build Confidence for the Future
Confidence boosts productivity: When employees are confident about their future, they
perform better. But in tricky economic times, people tend to be concerned--not surprisingly--
about their continued employment.
You can't necessarily guarantee a person a job and probably shouldn't. But you can take steps
to bolster their confidence in the company, the industry, and management's commitment to
them.
2. Turn Sales Leaders into Coaches
Identify successful leaders within the sales group and develop ways for them to act as coaches
with the other sales team members. Leaders will enjoy the recognition they get from sharing
their special sales techniques and best practices. And other team members should be able to
use the advice to increase their sales.
Also, during this process, look for sales techniques or tips that have global application. When
you find them, present them to the entire sales team--giving credit, of course, to the sales
leaders.
3. Make Your Process More Efficient

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Focus on increasing efficiencies of the sales process. Does the company have the proper sales
strategy in place? Some of the biggest gains in increased sales will come from improving or
streamlining the sales process, so make sure your policies allow sales reps to make the sale
while spending the least amount of time in front of the customer.
A few best practices: Give reps pricing options, for example, so that they don’t have to wait
for company approval to close sales. Create a rep hotline to get your sales reps fast answers to
any sales questions. And expedite any brochures or sample orders that your reps need to make
a sale.
4. Boost Morale
Morale is similar to confidence: A sales team with high morale will always outperform one
with low morale, getting more work done with fewer resources and better attitude.
Strong team morale is the result of good management. Here are a few steps you can take to
boost morale:
• Be trustworthy; always keep your word.
• Convey in words and actions a concern for the welfare of your sales team.
• Demonstrate a commitment to excellence in all aspects of the business.
5. Encourage Teamwork
Individuals on a team will get more work done in less time than individuals working in a
nonteam environment. Team members care about each other and the outcome of their
combined performance. To encourage teamwork, create an environment in which individuals
care about each other and the group performance. Avoid favouritism and recognize teamwork.
For instance: Present a teamwork award, with the winner selected by popular vote of the entire
sales force--and be sure to clearly explain what the person did to gain this recognition. Also,
teamwork and morale tend to go hand in hand. The same techniques used to bolster high morale
work to enhance teamwork.

MODULE 6
BUYING MOTIVE
Buying motive is the urge or motive to satisfy a desire or need that makes people buy goods or
services. Behind every purchase there is a buying motive.
It refers to the thoughts, feelings, emotions and instincts, which arouse in the buyers a desire
to buy an article. A buyer does not buy because s/he has been persuaded by the salesman, but
s/he buys for the aroused desire in him or her. Motives should be distinguished from instincts.
A motive is simply a reason for carrying out a particular behaviour and not an automatic
response to a stimulus, whereas instincts are pre-programmed responses, which are inborn in
the individual and involuntary. Thus, hunger is an instinct whereas desire to purchase pizza is
a buying motive. According to Prof. D. J. Duncan, “Buying Motives are those influences or
considerations which provide the impulse to buy, induce action and determine choice in the
purchase of goods and services.” Buying motives are can be divided by the following way:

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I. Product Buying Motives:


Product buying motives refer to those influences and reasons, which prompt (i.e. induce) a
buyer to choose a particular product in preference to other products. They include the physical
attraction of the product (i.e. the design, shape, dimension, size, colour, package, performance,
price etc. of the product) or the psychological attraction of the product (i.e. the enhancement of
the social prestige or status of the purchaser through its possession), desire to remove or reduce
the danger or damage to life or body of the possessor, etc. In short, they refer to all those
characteristics of a product, which induce a buyer to buy it in preference to other products.
Product buying motives may be sub-divided into two groups, viz., (A) emotional product
buying motives and (B) rational product buying motives.
A. Emotional Product Buying Motives:
When a buyer decides to purchase a product without thinking over the matter logically and
carefully (i.e., without much reasoning), she is said to have been influenced by emotional
product buying motives. Emotional product buying motives include the following:
1. Pride or Prestige:
Pride is the most common and strongest emotional buying motive. Many buyers are proud of
possessing some product (i.e., they feel that the possession of the product increases their social
prestige or status). In fact, many products are sold by the sellers by appealing to the pride
prestige of the buyers. For instance, diamond merchants sell their products by suggesting to the
buyers that the possession of diamonds increases their prestige or social status.
2. Emulation or Imitation:
Emulation, i.e., the desire to imitate others, is one of the important emotional buying motives.
For instance, a housewife may like to have a silk saree for the simple reason that all the
neighbouring housewives have silk sarees.
3. Affection:
Affection or love for others is one of the stronger emotional buying motives influencing the
purchasing decisions of the buyers. Many goods are purchased by the buyers because of their
affection or love for others. For instance, a husband may buy a costly silk saree for his wife or
a father buy a costly watch for his son or daughter out of his affection and love.
4. Comfort or desire for comfort:
Desire for comfort (i.e., comfortable living) is one of the important emotional buying motives.
In fact, many products are bought comfort. For instance, fans, refrigerators, washing machines,
cushion beds, etc. are bought by people because of their desire for comfort.
5. Sex appeal or sexual attractions:
Sex appeal is one of the important emotional buying motives of the buyers. Buyers buy and
use certain things, as they want to be attractive to the members of the opposite sex. Men and
women buy cosmetics, costly dresses, etc., because of this emotional motive, i.e., sex appeal.
6. Ambition:

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Ambition is one of the emotional buying motives. Ambition refers to the desire to achieve a
definite goal. It is because of this buying motive that, sometimes, customers buy certain things.
For instance, it is the ambition that makes many people, who do not have the facilities to pursue
their college education through regular colleges, pursue their education through
correspondence courses.
7. Desire for distinctiveness or individuality:
Desire for distinctiveness, i.e., desire to be distinct from others, is one of the important
emotional buying motives. Sometimes, customers buy certain things, because they want to be
in possession of things, which are not possessed by others. Purchasing and wearing a particular
type of dress by some people is because of their desire for distinctiveness or individuality.
8. Desire for recreation or pleasure:
Desire for recreation or pleasure is also one of the emotional buying motives. For instance,
radios, musical instruments, etc. are bought by people because of their desire for recreation or
pleasure.
9. Hunger and thirst:
Hunger and thirst are also one of the important emotional buying motives. Foodstuffs, drinks,
etc. are bought by the people because of this motive.
10. Habit:
Habit is one of the emotional considerations influencing the purchasing decision of the
customers. Many customers buy a particular thing because of habit, (i.e. because they are used
to the consumption of the product). For instance, many people purchase cigarettes, liquors, etc.
because of sheer habit.
B. Rational Product Buying Motives:
When a buyer decides to buy a certain thing after careful consideration (i.e. after thinking
over the matter consciously and logically), s/he is said to have been influenced by rational
product buying motives. Rational product buying motives include the following:
1. Safety or Security:
Desire for safety or security is an important rational buying motive influencing many
purchases. For instance, iron safes or safety lockers are bought by the people because they
want to safeguard their cash, jewelries etc., against theft. Similarly, vitamin tablets, tonics,
medicines, etc., are bought by the people because of this motive, i.e. they want to safeguard
their health and protect themselves against diseases.
2. Economy:
Economy, i.e. saving in operating costs, is one of the important rational buying motives. For
instance, Hero Honda bikes are preferred by the people because of the economy or saving in
the operating cost, i.e. petrol costs.
3. Relatively low price:
Relatively low price is one of the rational buying motives. Most of the buyers compare the
prices of competing products and buy things, which are relatively cheaper.

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4. Suitability:
Suitability of the products for the needs is one of the rational buying motives. Intelligent
buyers consider the suitability of the products before buying them. For instance, a buyer, who
has a small dining room, naturally, goes in for a small dining table that is suitable, i.e. that fits
in well in the small dining room.
5. Utility or versatility:
Versatility or the utility of a product refers to that quality of the product, which makes it
suitable for a variety of uses. Utility of the product is one of the important rational buying
motives. People, often, purchase things that have utility, i.e. that can be put to varied uses.
6. Durability of the product:
Durability of the product is one of the most important rational buying motives. Many
products are bought by the people only on the basis of their durability. For instance, buyers of
wooden furniture go in for teak or rosewood table, though they are costlier, as they are more
durable than ordinary wooden furniture.
7. Convenience of the product:
The convenience of the product (i.e. the convenience the product offers to the buyers) is one
of the important rational product buying motives. Many products are bought by the people
because they are more convenient to them. For instance, automatic watches, gas stoves, etc.,
are bought by the people because of the convenience provided by them.
II. Patronage Buying Motives:
Patronage buying motives refer to those considerations or reasons, which prompt a buyer to
buy the product wanted by him from a particular shop in preference to other shops. In other
words, they are those considerations or reasons, which make a buyer, patronise a particular
shop in preference to other shops while buying a product.
Patronage buying motives also may be sub-divided into two groups viz. (A) Emotional
patronage buying motives and (B) Rational patronage buying motives.
A. Emotional Patronage Buying Motives:
When a buyer patronises a shop (i.e. purchases the things required by him from a particular
shop) without applying his mind or without reasoning, he is said to have been influenced by
emotional patronage buying motives. Emotional patronage buying motives include the
following:
1. Appearance of the shop:
Appearance of the shop is one of the important emotional patronage buying motives. Some
people make their purchases from a particular shop because of good or attractive appearance
of the shop,
2. Display of goods in the shop:
Attractive display of goods in the shop also makes the buyers patronise a particular shop.
3. Recommendation of others:

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Recommendation of others also constitutes one of the important emotional patronage buying
motives. Some people purchase their requirements from a particular shop because that shop
has been recommended to them by others, i.e., by their friends and relatives.
4. Imitation:
Imitation also is one of the emotional patronage buying motives influencing the purchases of
buyers. Some people make their purchases from a particular shop just because other people
make their purchases from that shop.
5. Prestige:
Prestige is one of the emotional patronage buying motives of the buyers. For instance, some
people consider it a prestige to take coffee from a five-star hotel.
6. Habit:
Habit is also one of the important emotional patronage buying motives. Some people make
their purchases from a particular shop for the simple reason that they have been habitually
making their purchases from that shop.
B. Rational Patronage Buying Motives:
When a buyer patronises a shop after careful consideration (i.e. after much logical reasoning
and careful thinking) he is said to have been influenced by rational patronage buying motives.
Rational patronage buying motives include the following:
1. Convenience:
Convenient location proximity of a shop is one of the considerations influencing the
purchases of many buyers from a particular shop. Many buyers, usually, buy their
requirements from a near-by shop, as it is convenient to them to make their purchases.
Similarly, convenient working hours of the shop also influence the purchases of good many
buyers. For instance, if a shop works for a longer period of time every day and even on
Sundays, it will be very convenient to the buyers. As such, many buyers may make their
purchases from such a shop.
2. Low price charged by the shop:
Price charged by the shop also influences the buyers to patronise a particular shop. If the
price charged by a shop for a particular product is relatively cheaper, naturally, many people
will make their purchases from that shop.
3. Credit facilities offered:
The credit facilities offered by a store also influence the buying of some people from a
particular shop. People who do not have enough money to make cash purchases every time
prefer to make their purchases from a shop which offers credit facilities.
4. Services offered:
The various sales and after-sale services, such as acceptance of orders through phone, home
delivery of goods, repair service, etc., offered by a shop also induce the buyers to buy their
requirements from that shop. Rational buyers are, often, influenced by the various services or
facilities offered by the shop.
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5. Efficiency of salesmen:
The efficiency of the salesmen employed by a shop also influences the people in patronising
a particular shop. If the employees are efficient and are capable of helping the buyers in
making their purchases, people naturally would flock to such a shop.
6. Wide choice:
Wide choice of goods offered by a shop is one of the rational considerations making the
buyers patronise a particular shop. People generally prefer to make their purchases from a
shop, which offers wide choice (i.e. wide varieties of goods).
7. Treatment:
The treatment meted out by a shop to the customers is one of the rational considerations
influencing the buyers to patronise a particular shop. Usually, people would like to purchase
their requirements from a shop where they get courteous treatment.
8. Reputation of the shop:
Reputation of the shop for honest dealings is also one of the rational patronage buying
motives. Usually, people would like to make their purchases from a store having reputation
for fair dealings.

CONSUMER PSYCHOLOGY

Consumer psychology deals with consumer behaviour. Consumer psychology is the process
whereby individuals decide whether, what, when, where, how and from whom to purchase
goods and services. In consumer behaviour we consider not only „why‟, „how‟, and „what‟
people buy but other factors also, such as „where‟, „how‟ and „under what circumstances the
purchases are made‟.
The decisions taken by consumers in relation to the purchases are influenced by various factors.
They are aimed at solving consumer’s problems.
Factors Influencing Consumer Psychology
According to Philip Kotler, the major factors which influence consumer psychology or
behaviour are as follows:

1. Culture: The most important determinant of consumer behaviour is the culture. In case
of animals, their behaviour is generally triggered by instinct, whereas in case of human
beings, behaviour is normally learned. When the child grows up, he is largely
influenced by all tose things which he sees around him. It includes his family and the
society as a whole in which he lives. His preferences and behaviour patterns etc. are all
influenced and result in his behaving in a particular way. Marketers try to spot cultural
shifts so that they can aim their marketing activities accordingly. For example, Indian
culture emphasises the purchasing and wearing of new dresses on festivals like
Deepawali. Naturally, there will be good demand of new dresses on the eve of
Deepawali. These are variables within the cultural aspect of consumer behaviour.

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2. Subculture: Within a culture group, there is a smaller group, which has been termed
as subculture by Philip Kotler. He gives as illustrations, groups such as, Catholics and
Jews; racial groups such as blacks and whites having their different culture styles and
attitudes. Similar subculture segmentation can also be applied in India where we have
several types of linguistic, religious and communal groups (Hindu, Muslim, Sikh,
Christian etc.) as well as behaviour patterns which vary from north to south and east to
west.

3. Social Class: It refers to several homogeneous groups that exist in the society. For
instance, take the case of caste system in India. Different castes constitute different
social groups. People within such a social class tend to behave on similar lines as per
the caste pattern. They can be motivated by similar marketing appeals.

4. Personal Factors: According to Philip Kotler, personal factors also influence buying
decisions of the consumers. Personal outward characteristics, such as age, income,
occupation, life style and personality also count. Tastes in clothes, furniture, food,
recreation etc. vary according to age and income of the individual.

As modern marketing is customer-oriented, the study of consumer’s behaviour is vital in


framing production policies, price policies, decisions regarding channels of distribution and
above all decisions regarding sales promotion.
Consumer psychology aims at understanding the consumers‟ behaviour, the factors
responsible for such behaviour and the factors that can influence decision of the advertisers.
Each individual customer has a different psychology. His character, nature, status, taste,
aptitude and inner forces are different. Consumer behaviour analysis is useful in estimating the
potential size of a market for a product in the market segmentation, in locating preferred trends
in product development, in finding out suitable communication methods with consumers and
finally in designing the most favourable media mix to achieve the advertising objectives. A
clear understanding of consumer behaviour is essential in advertising planning.

CUSTOMER SURVEY
Customer polling to identify their level of satisfaction with an existing product, and to discover
their express and hidden needs and expectations for new or proposed product(s).

Consumer Survey Method is one of the techniques of demand forecasting that involves direct
interview of the potential consumers. Consumer Survey Method includes the further three
methods that can be used to interview the consumer:
Complete Enumeration Method: Under this method, a forecaster contact almost all the
potential users of the product and ask them about their future purchase plan. The probable
demand for a product can be obtained by adding all the quantities indicated by the consumers.

One of the major limitations of this method is that it can only be applied where the consumers
are concentrated in a certain region or locality. And if the population is widely dispersed, then
it can turn out to be very costly. Besides this, the other limitation is that the consumers might
not know their actual demand in future. Due to this, they may give a hypothetical answer that
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may be biased according to their own expectations regarding the market conditions.

Sample Survey: The sample survey method is often used when the target population under
study is large. Only the sample of potential consumers is selected for the interview. A sample
of consumers is selected through a sampling method. Here, the method of survey may be a
direct interview or mailed questionnaires to the selected sample-consumers.
This method is simple, less costly and even less time-consuming as compared to the
comprehensive survey methods. The sample Survey method is often used to estimate a short-
run demand of business firms, households, government agencies who plan their future
purchases. However, the major limitation of this method is that a forecaster cannot attribute
more reliability to the forecast than warranted.

End-use Method: The end-use method is mainly used to forecast the demand for inputs. This
method of demand forecasting has a considerable theoretical and practical value. Under this
method, a forecaster builds the schedule of probable aggregate future demand for inputs by
consuming industries and several other sectors. In this method, during the estimation of a
demand the changes in technological, structural and other factors that influence the demand is
taken into the consideration.
The end-use method helps in determining the future demand for an industrial product in details
by type and size. Also, with the help of end-use method, a forecaster can pinpoint or trace at
any time in the future as to where, why and how the actual consumption has been deviated
from the estimated demand.
Merits of Surveys
1. High Representativeness
Surveys provide a high level of general capability in representing a large population. Due to
the usual huge number of people who answers survey, the data being gathered possess a better
description of the relative characteristics of the general population involved in the study. As
compared to other methods of data gathering, surveys are able to extract data that are near to
the exact attributes of the larger population.
2. Low Costs
When conducting surveys, you only need to pay for the production of survey questionnaires.
If you need a larger sample of the general population, you can allot an incentive in cash or kind,
which can be as low as $2 per person. On the other hand, other data gathering methods such as
focus groups and personal interviews require researchers to pay more.
3. Convenient Data Gathering
Surveys can be administered to the participants through a variety of ways. The questionnaires
can simply be sent via e-mail or fax, or can be administered through the Internet. Nowadays,
the online survey method has been the most popular way of gathering data from target
participants. Aside from the convenience of data gathering, researchers are able to collect data
from people around the globe.
4. Good Statistical Significance

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Because of the high representativeness brought about by the survey method, it is often easier
to find statistically significant results than other data gathering methods. Multiple variables can
also be effectively analyzed using surveys.
5. Little or No Observer Subjectivity
Surveys are ideal for scientific research studies because they provide all the participants with
a standardized stimulus. With such high reliability obtained, the researcher’s own biases are
eliminated.
6. Precise Results
As questions in the survey should undergo careful scrutiny and standardization, they provide
uniform definitions to all the subjects who are to answer the questionnaires. Thus, there is a
greater precision in terms of measuring the data gathered.
Disadvantages of Surveys
1. Inflexible Design
The survey that was used by the researcher from the very beginning, as well as the method of
administering it, cannot be changed all throughout the process of data gathering. Although this
inflexibility can be viewed as a weakness of the survey method, this can also be a strength
considering the fact that preciseness and fairness can both be exercised in the study.
2. Not Ideal for Controversial Issues
Questions that bear controversies may not be precisely answered by the participants because
of the probably difficulty of recalling the information related to them. The truth behind these
controversies may not be relieved as accurately as when using alternative data gathering
methods such as face-to-face interviews and focus groups.
3. Possible Inappropriateness of Questions
Questions in surveys are always standardized before administering them to the subjects. The
researcher is therefore forced to create questions that are general enough to accommodate the
general population. However, these general questions may not be as appropriate for all the
participants as they should be.
A good example of this situation is administering a survey which focuses on affective variables,
or variables that deal with emotions.
5 top reasons why surveys are important for market research:
1. Update product offerings or pricing options.
2. Gain insights into customer demographics
3. Measure customer awareness, usage and satisfaction over time
4. Branding, positioning, and naming testing
5. Increase traffic, boost conversions, and grow sale

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QUALITATIVE & QUANTITATIVE SURVEYS


Market research is about finding information. The purpose of conducting that research is so
that you can find something within the information you collect that you can exploit to improve
your business. Whether it is a market need, a successful advertising strategy, the reception to
your current products or more, market research is the best tool for discovering how to run your
business.
Survey research is one of the most common ways that companies collect market research data.
There are two styles of survey research: Qualitative Research and Quantitative Research.
Quantitative research is designed to collect cold, hard facts. Numbers. Quantitative data is
structured and statistical. It provides support when you need to draw general conclusions from
your research.
Qualitative research collects information that seeks to describe a topic more than measure it.
Think of impressions, opinions, and views. A qualitative survey is less structured: It seeks to
delve deep into the topic at hand to gain information about people’s motivations, thinking, and
attitudes. While this brings depth of understanding to your research questions, it also makes
the results harder to analyze.

When to use qualitative vs. quantitative research

Quantitative data can help you see the big picture. Qualitative data adds the details and can also
give a human voice to your survey results.

Let’s see how to use each method in a research project.

• Formulating hypotheses: Qualitative research helps you gather detailed information on


a topic. You can use it to initiate your research by discovering the problems or
opportunities people are thinking about. Those ideas can become hypotheses to be proven
through quantitative research.
• Validating your hypotheses: Quantitative research will get you numbers that you can
apply statistical analysis to in order to validate your hypotheses. Was that problem real or
just someone’s perception? The hard facts obtained will enable you to make decisions
based on objective observations.
• Finding general answers: Quantitative research usually has more respondents than
qualitative research because it is easier to conduct a multiple-choice survey than a series
of interviews or focus groups. Therefore, it can help you definitely answer broad questions
like: Do people prefer you to your competitors? Which of your company’s services are
most important? What ad is most appealing?
• Incorporating the human element: Qualitative research can also help in the final stages
of your project. The quotes you obtained from open-ended questions can put a human
voice to the objective numbers and trends in your results. Many times, it helps to hear
your customers describe your company in their own words to uncover your blind spots.
Qualitative data will get you that.

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How to get qualitative data


There are many methods you can use to conduct qualitative research that will
get you richly detailed information on your topic of interest.

• Interviews. One-on-one conversations that go deep into the topic at hand.


• Case studies. Collections of client stories from in-depth interviews.
• Expert opinions. High-quality information from well-informed sources.
• Focus groups. In-person or online conversation with small groups of people to
listen to their views on a product or topic.
• Open-ended survey questions. A text box in a survey that lets the respondent
express their thoughts on the matter at hand freely.
• Observational research. Observing people during the course of their habitual
routines to understand how they interact with a product, for example.
Qualitative Survey or Quantitative Survey: Which to Use for Your Market Research

For most market research, you are going to want to use quantitative data collection methods.
Numbers are the best way to answer research questions and use statistics to find any
information that may be valuable to running your business. Quantitative research is at the heart
of most types of research because it is the only one that allows you to draw statistical
conclusions from the outcome, as well as run cross analyses to look for any interesting points
of data.

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Qualitative research is far less valuable in that respect, although it may be useful for discovering
an interesting idea. There are very few statistical analysis to run and no guarantee that you will
be able to find answers to your business’s questions. It may, however, be useful for finding
what questions to ask or getting some personal feedback from potential customers.

CHARACTERISTICS OF CUSTOMERS/MARKET SEGMENTATION

Market Segmentation is a technique of dividing the market of a product into several


homogenous groups. Under this technique, customers of a product are divided according to
such common characteristics as age, sex, income level rural urban composition. The concept
of market segmentation is based on the assumption that markets of all commodities are
heterogeneous. For every product, there is a group of customers having different nature, buying
habits, and attitudes.

Philip Kotler, „Market Segmentation is the sub-dividing of a market into homogeneous subsets
customers, where any subsets may conceivably be selected on a market target to be reached
with a distinct marketing mix. ‟

Bases of Market Segmentation: Market segmentation divides the whole market of a product
into several different groups.

1. Geographic Segmentation: Many organisation segment their market into different


geographic units such as nation, states, districts, regions, cities and taluka places.
Geographic segmentation is based on the assumption that consumer needs and
responses vary geographically. National newspapers, for example, are published from
different cities and also in different languages to meet the readers spread all over the
country. Different market locations have different costs, demand and other features
which are considered while formulating an appropriate marketing strategy. In
geographic base, regional differences in terms of geography, climate, population and
its density are used as base for market segmentation.
2. Demographic Segmentation: Demography is the study of dynamics of population
change. The markets are segmented according to demographic characteristics such as
age, sex, income, occupation, education, language, religion, race, nationality and rural
urban base. Demographic variables are used commonly and extensively by large
number of producers for market segmentation. Demographic segmentation is
comparatively easy as required data are available in census and other published reports.
Demographic data on population distribution by sex help segmenting market for male
and female population. Titan have segmented their market on the basis of sex and are
manufacturing wrist watches for male and female buyers separately. Watches of
different price in both the categories are brought in the market. Producers of
confectioneries segment their markets on the basis of age. The same is the case with
toys. In the case of certain products like bicycles, women demand special styles and
manufactures adjust their production to suit male as well as female. This gives more
turnover and satisfaction to buyers. Demographic segmentation is important as the
nature of demand is closely related to the size and composition of population by age,
sex, rural and urban base.
3. Socio-Economic Segmentation: The segmentation, here is done on the basis of income
group, consumption levels, and other cultural aspects. The population is differentiated
for marketing efforts on these considerations. In a country like India, such type of
segmentation is necessary as the society is divided into different groups on socio-
economic cultural factors. In India, people follow different cultural background.
Naturally, suitable segmentation for the purpose of marketing is useful. Socio-
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economic segmentation is used extensively as information in this regard is more easily


available. The lower class, middle class, working class is one example of economic
classification. Since market potential is intimately connected with the ability to buy,
this segmentation is meaningful in deciding buying patterns of a particular class.
4. Psychographic Segmentation: Psychographics attempts to segment according to
psychographical profiles of people in terms of their life style and attributes.
Psychographics attempt to segment according to psychological profiles of people in
terms of their life style and attitudes. In this type of segmentation, certain psychological
variables such as social class, life-styles or personality characteristics are used for
segmentation. Manufacturers of cars, textiles and home furnishings divide buyers on
the basis of social class and life styles. Such segmentation is also possible on the basis
of reading habits and leisure activities. Marketing efforts are adjusted according to such
variables. It may be pointed out that in the case of geographic, demographic and socio-
economic bases, the required data for segmentation are either readily available in census
and other reports or can be collected through survey. However, in the case of
psychological variables, relevant information is not readily available and has to be
collected through behavioural research. Moreover, market segmentation on
psychological variables is complicated as it is always difficult to expose individuals to
a battery of psychological test and to find out their specific personality traits. Moreover,
consumers behave or react differently from what they say, if new benefits or bundles
of benefits are offered to them. Psychographic segmentation can be made on the basis
of (a) Social class (Upper class, upper middle, lower middle class, etc.) (b) Personality
(Self-confidence, ambitious, aggressive, sociable, etc.) and (c) Life-style (Liberal,
conservative, religious, health and fitness-oriented, etc.)
5. Behaviouristic Segmentation: Here, the buyers are grouped or separated on the basis
of their knowledge, attitudes, views, or response to the product. This is useful in order
to find out what role price or package or colour or service can play in influencing buying
decisions. This segmentation is also called product related segmentation as the response
of consumers dividing into different convenient groups for the purpose of marketing.
In India, the supply of consumer items, electronic goods, two-wheelers, cosmetics etc.
is fast increasing. The supply is more as compared to demand. The income of people of
all categories are also increasing. People are also willing to spend more. They get
information about new products from different media. This creates proper background
for behaviouristic segmentation is similar to but slightly different from psychographic
segmentation.
6. Product Segmentation: When the segmentation of markets is done on the basis of
product characteristics that are capable of satisfying certain special needs of customers,
such a method is known as product segmentation. The products, on this basis, are
classified into (1) Prestige products, (Automobiles and jewellery (2) Maturity products.
(Cigarettes and Blades), (3) Status products, (Most Luxuries), (4) Anxiety products,
(Medicines, Soaps and Perfumes) and (5) Functional products, (Fruits and Vegetables).
This type of product segmentation is directed towards differences among the products
which comprise markets.
7. Benefit Segmentation: Under this method the potential buyers form the basis of
segmentation. They are interviewed to learn the importance of different benefits they
may be expecting from a product. These benefits or utilities may be classified into
primary utilities and secondary or evolved utilities. Toothpaste has primary utility of
cleaning and secondary utility of good tasted breath freshening and rightness. Likewise,
Shampoo has primary utility of cleaning and secondary utility of shiny hair and
thickening hair.
8. Volume Segmentation: Markets can be segmented into bulk users, medium users and
unit users. This method is based on the volume of purchases. The heavy users may
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constitute a small percentage of the numerical size of the market but forms a major
percentage of the unit volume consumed. This analyse is also capable of showing the
buying behaviour of different groups.
9. Status Segmentation: Markets can be differentiated into nonex-users, users, potential
users, first-time users and regular users of a product. High market share companies like
the DCM generally look for potential users, whereas small competitive companies are
contended to concentrate on regular users who always patronise their products and tend
to remain to their brands.

TRAINING OF SALESMAN

According to W.G Carter, “Salesmanship is in attempt to induce people to buy goods.”


According to the National Association of Marketing Teachers of America, “It is the ability to
persuade people to buy goods or services at a profit to the seller and benefit to the buyer.”
Salesman
An individual who sells goods and services to other entities. The successfulness of a
salesperson is usually measured by the amount of sales he or she is able to make during a given
period and how good that person is in persuading individuals to make a purchase. If a
salesperson is employed by a company, in some cases compensation can be decreased or
increased based on the amount of goods or services sold.
Training salesmen is an act of imparting skills and knowledge necessary for performing the
work better. Training is necessary to both new and experienced salesmen. A new salesman
requires training due to the fact that he is not knowing how, when, and, what to sell. He needs
skills and knowledge to deal with customers effectively.
An experienced salesman requires training to keep him up to date.
Training the sales force is important to increase sales volume, improve morale, reduce selling
costs, improve relations, enable them to adjust with changing work, improve image of
company, and so forth.
Below stated points indicate objectives and importance of training the salesmen:
1. To explain the sales people about basic principles of salesmanship.
2. To provide information about market territories and customers.
3. To tell them regarding the company’s policies, objectives, reputation, strategies,
problems and prospects, etc.
4. To inform them about products of the company.
5. To explain them about their duties, types of tasks, authority, and restrictions.
6. To provide salesmen the complete details about company’s competitors.
7. To teach them how to report, how work with colleagues, and how to behave with
superiors.
8. To teach them effective techniques to contact customers, make effective sales
presentation, convince customers, get orders, and to handle their complaints and
objections.
9. To make them aware of themselves.
10. To change or modify their attitudes, and remove prejudices and wrong beliefs.
11. To motivate them for maximum efforts and build high morale.
12. To refresh or update them periodically, etc.
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Training Contents:
Sales force training programme consists of training salesmen about what they have to do, when
and why to do, where and how to do, and with whom to do.
Salesmen are trained about following aspects:
1. Knowledge about company
2. Knowledge about market (customer’s characteristics)
3. Knowledge about products
4. Knowledge about marketing channels
5. Knowledge about themselves
6. Knowledge about competition
7. Knowledge about overall marketing environment
8. Knowledge about selling methods and techniques, etc.

Training Method:
Several methods are used for training salespeople. Some methods are internal while some are
external. Some companies prefer to maintain a well-equipped separate training department for
the purpose. The department is headed by training manager.
The companies that cannot afford separate department can send sales representatives to training
institutes. Some companies do not go for systematic training and use simple training
programme in which senior salesmen, sales manager or external experts train sales people as
and when required.
In all the cases, popular training methods include:
1. On-the-job training (i.e., working under experienced salesman)
2. Lectures and discussion
3. Professional training and educational institutes
4. Correspondence or distanced education
5. Providing the salesmen, the sales literatures like manuals, books, reports, sales letters,
complaint notes, etc.
6. Sales plays and dramas
7. Conferences, seminars and workshops
8. Sales conventions
9. Role playing
10. Case study
11. Product analytical tests
12. Brainstorming
13. Visit to exhibitions, big stores, shopping malls, trade fairs, etc.
14. Deputation or temporary appointment
15. Audio-visual devices (to show sales films, advertisement, speeches, etc.)
MOTIVATING SALESMEN
Six common factors that motivate salespeople are:
1. Money
2. Opportunity
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3. Teamwork
4. Independence
5. Visibility
6. Excellence
MOTIVE is an acronym for remembering the sales motivators.
Money: This is the most obvious motivator. Money, or what money can buy, is important to
most salespeople, but it isn’t necessarily most important to everyone. Other motivators may
be equally or more important.
Ways to impact and/or support money as a motivator include:
• Relate sales results to money
• Set up special incentives for superior performance
• Discuss and reinforce personal and financial goals for the future.
Opportunity: Many salespeople are driven by opportunity. What constitutes an opportunity
varies from person to person. However, motivational opportunities usually fall into the
categories of challenges, and the possibility of improving one’s situation on the job or in life
in general.
When you’ve recognized this motivation in members of your sales team, you should try to
create an environment that offers opportunities.
• Ways to create/foster opportunities include:
• Show how success leads to advancement
• Provide for career pathing where possible
• Delegate responsibilities that prepare the person for a future role in your organization
Teamwork
Many salespeople are perceived as hard-working go-getters who prefer to work alone to go
after what they want to be successful. The nature of a sales position attracts people who are
independent and prefer working by themselves.
However, there are many salespeople who do not fit neatly into that stereotypical
image. They are motivated by the social aspects of being part of a team and contributing to
the team’s success. These people may get satisfaction from group problem solving,
contributing to a co-worker’s success, or even playing a major role at a sales meeting.
If you identify this motivator as a factor for several of your salespeople, you may:
• Hold frequent sales meetings or social functions
• Get them involved in team projects
• Use “teamwork” and related ideas in your speech
• Build in team incentives
Independence
While some salespeople are motivated by teamwork, many salespeople prefer to be and are
motivated when left to their own devices. This involves empowerment, independence, and
freedom, enhancing feelings of power and control. This motivator should not be ignored or

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minimized because people belong to a team. Instead, use it to motivate your salespeople to be
successful.
You can:
• Delegate special projects or assignments (and then keep your hands off)
• Provide added responsibilities and authority (as it is earned)
• Have the salesperson conduct a segment of a sales meeting or lead the entire meeting
Visibility
Recognition, approval, or a need to stand out from the crowd drives some salespeople.
Whereas opportunity comes from internal recognition of achievements, visibility involves
recognition from others.
When a salesperson is motivated by visibility:
• Give lots of approval for even small accomplishments
• Applaud successes with a personal note and/or publicize to salesforce/ upper
management
• Be sure salesperson knows accomplishments are recognized
Excellence
Most people want to perform well, even if they aren’t currently doing well. The difference
between the “excellence” and “opportunity” motivators is that the excellence-motivated person
wants to excel at what he does and is not necessarily seeking higher and more challenging goals
and opportunities. Excellence means the person takes great pride in achieving or surpassing
personal and professional expectations.
The key to motivating this person is contained in a behavioral theory called the Pygmalion
effect, or self-fulfilling prophecy. This theory states that your feelings about or confidence in
a person’s abilities will unconsciously be communicated to him or her via body language,
actions, tone, and verbal interactions.
If you are convinced that your salespeople are all capable of achieving their goals and you let
them know it, this will reinforce their desires and motivation, and they will very likely achieve
and perhaps surpass goals. On the other hand, if you are doubtful that they can do it, that will
come across and could lower your sales team’s confidence in themselves. This lack of
confidence may prevent them from performing well.
To move the self-fulfilling prophecy in a positive direction, you could:
• Establish personal and professional development goals and action plans together to
enhance confidence that the salesperson will be able to fulfil them
• Try to build on strengths
• Ignore minor mistakes
• Congratulate people on their achievements and progress toward goals

SALES INCENTIVE
The term incentive means an inducement which rouses or stimulates one to action in a desired
direction. An incentive has a motivational power; a large number of incentives the modern

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organisations use to motivate their employees may be broadly grouped into (i) financial
incentives, and (ii) non-financial incentives.
1. Financial Incentives:
Money is an important motivator. Common uses of money as incentive are in the form of wages
and salaries, bonus, retirement benefits, medical reimbursement, etc. Management needs to
increase these financial incentives making wages and salaries competitive between various
organisations so as to attract and hold force.
Money plays a significant role in satisfying physiological and security/social needs. As money
is recognized as a basis of status, respect and power, it also helps satisfy the social needs of the
people. It is important to mention that once the physiological and security needs are satisfied,
money ceases to be motivator. Money then becomes, what Herzberg termed, hygiene and
maintenance factor.
The presence of hygiene factor, of course, prevents job dissatisfaction but do not provide ‘on
the job satisfaction’ to the employees in the organisation. In such case, money cannot be
considered as motivator. Then, in order to motivate employees, according to Herzberg, it is
necessary to provide other incentives for the satisfaction of ego, status, and self-actualization
needs.
However, these needs are experienced generally by employees working at higher levels in the
organisations. People in higher positions getting higher monetary rewards are not motivated by
increased monetary rewards. Yes, they may be motivated by money only when increase is large
enough to raise their standard of living and status in the society to which they belong to.
What follows from above discussion can be summed up as that money is not the only motivator
and also it is not always a motivator. In order to satisfy different kinds of human needs,
management needs to provide non-financial incentives such as job enlargement, participative
management, recognition, praise, etc. These also motivate employees at their works.
2. Non-Financial Incentive:
Man is a wanting animal. Once money satisfies his/her physiological and security needs, it
ceases to be a motivating force. Then, higher order needs for status and recognition and ego in
the society emerge.
The following non-financial incentives help management satisfy its employees’ these needs:
1. Appreciation of Work Done:
Appreciation or praise for work done be it at home, at school/ university or at work place,
serves as an effective non-financial incentive. Appreciation satisfies one’s ego needs. However,
managers need to use this incentive with great degree of caution because praising an
incompetent employee may create resentment among competent employees.
2. Competition:
If there exists, a healthy competition among the employees both at individual and group levels,
it will prompt them to exert more to achieve their personnel or group goals. Thus, competition
serves as a non-financial incentive for employees to put in more efforts at their works.

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3. Group Incentives:
Sometimes, group incentives act as more effective than individual incentives to motivate the
employees. Particularly, when the prestige or even existence of a group is at stake, the group
members work with a team spirit. This results in high morale and, in turn, increases in its
productivity.
4. Knowledge of the Results:
Knowledge of the results of work done leads to employee satisfaction. An employee derives
satisfaction when his/her boss appreciates the work he/she has done just as an MBA student
gets satisfaction when his/her Professor appreciates the seminar he/ she presented in the class.
5. Worker’s Participation in Management:
Inviting workers to participate in management gives worker’s a psychological satisfaction that
their voices are also heard. This imbibes a sense of importance among the workers.
6. Opportunity for Growth:
Man is not only a wanting animal but an ambitious creature also. People always need to grow
in their career. So, if the employees are provided proper opportunities for growth and career
advancement and chance to develop their personality, they feel much satisfied and become
more committed to the organizational goals.
7. Suggestion System:
Suggestion system is yet another non-financial incentive to be used to motivate employees.
Following this, some organisations make use of cash awards for giving useful suggestions.
They sometimes publish the worker’s name with his/her photograph in the company’s
magazine with a motive to encourage other workers to search for useful suggestions for the
company. Thus, suggestion system acts as an incentive for the workers to be in search of
something useful for the company.
8. Job Enrichment:
Job enrichment simply means adding the contents to a job leading to increased responsibility,
scope and challenge in its performance. Particularly, the executives working at the higher levels
often prefer to job enrichment because it makes job more challenging.

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