Promotion Mix

Promotion Mix

What is Advertising ?

Advertising is any paid form of

non personal
presentation/communication of
ideas , goods or services by an
identified sponsor

1. Any form of communication

Symbol
Sign
An illustration
Message
Through any media
(Print, Electronic , Outdoor, Direct, Display media)
2.Paid Form
Commercial transaction & has to be paid for
3.Non Personal
Excludes personal selling
Addressed to a mass audience
4. Identified Sponsor
Sponsor of advertisement openly pays for it.

Functions of Advertising
1.Information function
2. Precipitation Function
Ad moves a consumer closer to buying a product in
step by step manner/fashion
Customer go through 7 steps process to reach the act
of purchase. ( Lavidge & Steiner)
a. Unawareness of goods or services
b. Awareness of product
c. Knowledge of what the product offers
d. Liking for or a favorable attitude towards the product
e. Preference for one brand over others
f. A desire to buy the product & a conviction that buying
it would be wise.
g. Purchase

3.Persuasive function
The process of moving consumers to purchase.
4.Reinforcement function
Making customers feel good about their previous
decisions to buy a product
e.g. The Wagon R is rated best by
customers !!!
5.Reminder function
To keep advertisers brands name fresh ,
alive in the minds of the target customers.
6.Value Adding function
To increase the perceived value of a brand
through advertising.
To make the brand more valuable in the
eyes of consumers.

 Other functions
Reduces middlemen
Enhances goodwill of the company
Positive impact on employees
Sense of security among employees
Increases production , sales
Industrial growth

Benefits & Limitations of Advertising

1.Benefits to Consumers
Adds perception utility to product
(Positively influence the perception of consumers
about the product/service)
Helps in making purchase decisions
Gives consumers an opportunity for comparison
Provides product information, features, benefits, price
, availability
Ensures better quality ( Ad ensures that customers
are drawn to the product at least for a trial order)
Saves customers times in shopping
Advertising encourages competition & which helps
consumers to get quality products/service at
reasonable price.

2.Benefits to Manufacturer
Ads create customers
Ads increase the sales of company
Enables manufacturer to introduce the
product in the market
Advertising helps to control the product
prices ( Specially retail prices)
Advertising helps manufacturer in
informing the market about the changes
in the product/service
Advertising acts as a salesman
Advertising widens the market

3. Benefits to Society
Increases the standard of living in the society
Increases demand, desires
Increases production & consumption
Leads to produce better & cheaper products
More & More people to buy the products
Provides employment opportunities
Provides information to the masses
Educative role of advertising (School Chale Hum)
Due to ads , it becomes very economical for the
consumers to access the print & electronic media.
Ads also give social contribution
(Ads about pollution, environment, energy
conservation, fight against cancer etc i.e. gives
social messages)

4.Benefits to Salesman
Creates colorful background for the
salesman
Makes salesmans job easier
Instills confidence in the salesman

Limitations of Advertising
Ads can not sell a bad product twice
Limited capacity to reach a selected audience
(Requirements of all consumers are not same
Also they may not reach the customers when they are in buying
mood & this adds to the cost of advertising)
Advertisements are rigid
(Ads once set cant be adjusted to the reactions of the consumers,
Cant answer to the objections & queries of the consumers
Ads are not completely believable
( Exaggeration, No mention of weaknesses of product)
No complete information
Advertising can not conflict with the cultural values of the society
Ads can persuade but cant compel people to buy a product.
Ads can be successful only when it is well coordinated with the other
elements of marketing mix.
Language problem in advertising
Cost of advertising
Bombardment of ads makes the customers irritate

Economic & Social Aspects of Advertising

Economic Aspect
Effects on production, Consumers, Markets, Business Cycle
( Recession, Depression, Recovery & Boom)
Creates employment opportunities
Affects production, production cost, product price
( Production Increases-Price decreases)
Effective tool for business growth
Helps in market expansion
Helps in establishing economic stability
Creates investment opportunities
Industrial growth Agricultural Growth- Growth of National Income
Increases demand- Increases Consumption & production leads too
industrial growth.
Increases competition Leads to new products
Demand for agricultural produce also increases due to higher
consumption

Social Aspect of Advertising

Deceptive advertising
It refers not only to the information content in advertising but may
also arise from misplace emphasis in presentations.
Cola based soft drinks are targeted at people of all ages
Refreshing drink
Forceful selling
it can manipulate buyers into making a decision against their will
or interest.

Manipulation is done through emotional appeals.

Cadbury repositioned its chocolate in such a manner that it replaces
the traditional mithai in the marriages
Exchange melas & off season discounts
Fans in winter
Coupons, Scratch cards etc
A child can enter a drawing competition by producing a surf
wrapper.
Media misuse
Ads related to alcohol, pan masala, Cigarettes, etc
Unethical ads , Offensive ads , Lottery ads

Social development
Opportunity to select proper product
Increases importance of consumer
Enhances knowledge
Some examples of the Advertisements
with social aspects:Grow-more-trees
Drink milk
Eat healthy food,
Say no to drugs
Get your child vaccinated in time

Consumer protection

Types of advertising
1.Pioneering advertising
To develop primary demand for a newly developed product category
( At introductory stage of the product)
Initial ads by vacuum cleaners, microwave, black & white tv
2.Competitive advertising
Influence demand for brand in the growth phase of the PLC.
Often uses emotional appeal.
To increase the demand of a specific brand .
( For the product in the growth stage)
a. Direct type/Direct Action advertising
Seeks to stimulate direct buying action
To seek an immediate response to the ad in the form of reader
sending an order for the goods advertised or a request for further
information.
Air India ad giving price ,time table &phone number on which a
customer may call for reservation (Direct action)
Air India ad when suggests that you mention Air Indias name when
talking to your travel agent.

b. Indirect type/Indirect action

advertising
Do not seek an immediate response
Objective is to build reputation of
brand ,enhance desirability of the
branded products
3. Retentive advertising:
(Maturity or Decline stage)
For the products which already have
achieved favorable status in the
market.
To remind the people about the

4. Institutional ad

Designed to enhance a companys

image rather than promote a particular product.
To build goodwill, reputation of company
Name & prestige of the company
To create positive attitude of the customers towards the
company
We also make Steel Tata Steel

a. Public relations institutional advertising

.

b.
.
.
.

To create favorable image of the firm employees,

stockholders, general public.
Public service institutional advertising
Directed at social welfare of a community or a nation
Ads by a company urging people to donate blood, ensure
road safety, against child labor etc
Save tiger by NDTV

Advertising Media

In advertising terms ,a medium is a

channel of communication like news
papers, magazines , radio, TV etc
Vehicle for carrying the ad message of
advertiser to the prospects.
The physical means whereby a
manufacturer of goods or a supplier
of services tells the consumer about
his product or service.

Classification & Characteristics of Media

1.Indoor advertising media

Press/Print media
Radio
Television
Film

2.Outdoor advertising media

Posters
Painted displays
Travelling displays
Electric signs
Sky writing
Sandwich men

3. Direct advertising media

Post cards
Envelope enclosures
Booklets & Catalogues
Sales letters
Gift novelties
Store publications
Package inserts

4. Display advertising media

Displays
Showrooms
Exhibitions

1.Press media or Print media

News papers
Merits
Local coverage
Lengthy & complex messages
Comparatively economical
Ease of release
Wide reach
Trial advertisements
Demerits
Short life span
Chances of being unnoticed
Different rates as per positions
Poor quality

Magazines
Merits
Longer life
Visual display
Selectivity
Geographical flexibility
Demerits
Inflexibility ( No ease of release)
Waste in circulation
Costlier
Restricted frequency

 Radio
Merits
Selectivity ( Advertiser can advertise only
in targeted markets)
Instant & flexible medium ( Not like TV)
Human touch ( Human voice)
Mass coverage
Economy
Demerits
Lack of illustration
Message perishability
Limited time

Television
Merits

Deep impact
Mass communication media
Manufacturer have upper hand in distribution
Best presentation ( Audio, Video, graphics )
Image building

Demerits

Time consuming
Short life
A costly medium
The clutter problem ( Overcrowding of too many
commercials in very short span of time)
Clutter reduces the effectiveness of the ad
An immobile medium

Film advertising media

Merits
Ensures captive audience ( Higher degree of
concentration of people}
Ideal for niche marketing ( Segment specific,
market specific, i.e. right down to a particular
district, city, or even theatre)
Relatively economical to show the ad

Demerits
Costly to prepare ad film but not the slides.
Limited coverage
Resentment from viewers ( May irritate to
viewers)

Outdoor advertising media

Posters
Simple , brief & attractive
Relatively longer life
Only reminder is possible
Painted displays
More large & elaborative than poster
Longer life
Travelling displays / Transit advertising
Ads on trains, buses , cars , trucks, auto rickshaws etc
Sky writing
Sky balloons, giant kites, search lights
Costly
Sandwich men
Funny media.
Electric signs/Neon signs

Maximum visibility, light effects

Merits of outdoor media

Long life
Offers geographic selectivity
Names & address of the local dealers can be
included in wall paintings/posters
Attracts attention of people when they are
out of doors.

Demerits
Copy is brief
No selectivity of specific type of audience is
possible
Difficult to measure the effectiveness of this
media.

Direct advertising media/Direct mail

advertising
Merits

High selectivity
Personal touch
Deep impact
Measurement of effectiveness
Demerits
Higher cost
Low reader interest
Warrants special skill ( To be effective this
media needs to be prepared very creatively &
requires special talent)

Display advertising media

Displays
Called as POP advertising
Window displays, Counter/interior displays,
Showrooms, Trade shows , Exhibitions etc
Ability to allow prospects to experience the
products before buying
Also an effective dealer aid
Attracts customers to shop & leads to impulse
buying

Factors affecting the selection of media

The nature of the product

Characteristics of the target audience
The type of distribution strategy ( Advertise the
product where the marketing channels are set)
The advertising objective
( The local, regional ,national or international
coverage )
To build goodwill for company News papers /
Magazine
If want immediate action then direct advertising is
preferable
The type of selling message
If demo is necessary then TV ad
Budget
Competitors advertising media
Media availability

Media characteristics

Coverage : Circulation of media

Reach : Reach is better measure for finding out the
effectiveness of an ad message
Reach is the media vehicles access to different
individuals or homes over a given period of time
Relative cost : Amount of money spent on using particular
media vehicle.
Consumer confidence : Confidence placed in the medium
by the consumers.
Frequency : No. of times an audience is reached in a given
period of time.
News papers , TV, radio & outdoor media have highest
degree of frequency
Magazines , Direct advertising have lower frequency