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ASSIGNMENTS
ADL - 41: ADVERTISING AND SALES PROMOTION

Subject Name & Code : Study Centre : Permanent Enrollment Number (PEN): Date :

Advertising and Sales Promotion

ASSIGNMENT INSTRUCTION a) b) c) d) Total weightage given to these assignments is 30%. All assignments are to be completed in your own hand writing / typed. All questions are required to be attempted. Three assignments i.e. A, B & C are to be answered. Assignment A will carry Five subjective questions (10 marks). Assignment B will carry three subjective questions with a Case Study(10 marks) and Assignment C will carry forty objective type questions(10 marks) e) All the three assignments are to be completed by due dates (specified from time to time) and mailed / given by hand or evaluation at the AsoDL office Noida, /your Study Centre. f) The evaluated assignments can be collected from your study centre/ASoDL Office after six week. Thereafter these will be destroyed at the end of each semester. : : _________________________ _________________________

Signature Date

() Tick mark in front of the assignments submitted Assignment 'A' Assignment 'B' Assignment 'C'

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ADL - 41: ADVERTISING AND SALES PROMOTION Assignment - A All Questions carry equal Marks Marks: 10

1. Explain Push and Pull promotional strategies? Discuss which suits best for McDonald. 2. Discuss the role of advertising agency in big market players like Coke and Pepsi? 3. Define market segmentation and product life cycle? 4. Write short notes (on any three of the following) (a) (b) (c) (d) (e) Target Marketing Sales promotion Direct Marketing Trade Promotions Market Positioning

5. Internet is the best source of media of New Millennium. Do you agree? Discuss. Assignment - B Marks: 10 1. Creativity in advertising is the ability to produce original ideas. Discuss its importance. 2. Discuss the strategy for promotion and advertising for new product launch by any service industry. 3. Event marketing today gives an edge and new direction to companies to promote their products in market. Discuss. 4. Please read the case study Free Flights Promotion Ends in Disaster and answer questions given at the end. Case Study FREE FLIGHTS PROMOTIONS ENDS IN DISASTER The Hoover Companys attempts to sell more vacuum cleaners by offering an incentive of free flights have become a legendary disaster in the field of sales promotions. An examination of the case is useful for highlighting some of the problems of planning, implementing, and monitoring sales promotions. During the early 1990s, Hoover was faced with a period of economic recession in which discretionary expenditure on consumer durables was held back. In these conditions, most vacuum sales were replacements for worn out machines or first time buys for people setting up home. The challenge was to increase the sales of machines bought to upgrade existing equipment. The company came up with the idea of offering free airline tickets to America for anybody buying one of its vacuum cleaners. For many people, a holiday in the USA, may have been perceived as an unnecessary and unaffordable luxury during a period of recession, but one that might be justified if it came free with the purchase of an essential vacuum cleaner.
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The immediate result of the sales promotion was to boost the companys sales of vacuum cleaners to more than double the level of the previous year. So far so good, but then serious problems set in. The first problem occurred when Hoover could not satisfy demand for its vacuum cleaners and had to resort to paying its staff overtime rates of pay in order to increase supply. It should be remembered that the initial objective of the promotion was to utilize existing spare capacity rather than adding to that capacity. The company had carried out insufficient research prior to launching its incentive. Had it done so, it may have reached the conclusion that the incentive was too generous and likely to create more demand than the company could cope with. A second problem occurred during subsequent periods when sales feel to below their pre-incentive levels. Many people had simply brought forward their purchase of a vacuum cleaner. Worse still, many people had bought their cleaner simply to get the free tickets, which at 70 for a cleaner with a free 250 ticket made sense. These people frequently disposed off their cleaner as they had no need for it. The classified ads of many local newspapers contained many adverts for nearly new, unused vacuum cleaners at discounted prices and this further depressed sales of new machines once the sales promotion had come to an end. A third and more serious problem occurred when large numbers of buyers tried to use their free flight vouchers. All sales promotions are based on an assumption of take-up rates, which can be as low as 5-10 per cent. Anything higher and the cost of the incentives actually given away can wipe out the benefit arising from increased sales. In this case, Hoover had carried out insufficient pretesting of the sales promotion in order to assess the likely take-up rate and was surprised by the actual take-up which subsequently occurred. In an attempt to control costs, the company became notorious for its attempts to suppress take-up of free flights. Many claimants complained that telephone lines were constantly busy and, when they did get through, they were offered the most unattractive flights possible. It was reported that Claimants from the south-east of England were only offered flights departing from Scotland and those from Scotland only offered flights from London, done to reduce the attractiveness of the free offer. These activities attracted high levels of coverage in the media and left a once highly respected brand as one with a perception of mistrust. Five years after the initial debacle, the Hoover Holiday Pressure Group continued to be an awkward reminder for the company. The free flights promotion eventually cost Hoover a reported 37 million in redemption charges, without bringing about any long-term growth in sales. With appropriate pre-testing, these costs could have been foreseen. Worse still, the companys brand image had been tarnished in a way that would take many years-if ever-to recover from. Questions to be answered: 1. 2. 3. What are the inherent problems for a company such as Hoover in assessing the effectiveness of sales promotion activity? Identify a program of research that Hoover could have undertaken in order to avoid the costly failure of its free flights promotion. What alternative methods of promotion might have been more suitable to achieve Hoovers objective of utilizing spare capacity during a period of economic recession?

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Assignment C Objective Type Questions 1. Promotion is a communication package ______________ between buyer and seller: a. b. c. d. 2. Product Skill Price Information in marketing which aims Marks: 10 to exchange

One of the tools of Sales promotion available to a marketer is: a. b. c. d. Personal Selling Planning Pricing Information

3.

Key role of an advertising manager is to plan the: a. b. c. d. Advertising Campaign Budget Promotion mix All of the above

4.

Segmentation of buyers on the basis of their income is known as: a. b. c. d. Demographic segmentation Income segmentation Class segmentation Psychographic segmentation

5.

The main role of advertising is: a. b. c. d. To be persuasive to buy Art and designing of the advertisement Conveying right information to the customer Highlighting our product vis--vis competitors

6.

Campaign Planning is governed by following parameters: a. b. c. d. Total advertising budget Media availability Consumer Profile All of the above

7.

Psychographic segmentation signifies segmenting market on the basis of: a. b. c. d. Social traits Income status Place of living All of the above
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8.

Sales promotion budget is calculated on the basis of: a. b. c. d. Value to customer Stage in Product Life Cycle Sales revenue All of the above

9.

Sales promotion objective at the stage of maturity is to: a. b. c. d. Inform Persuade Remind All of the above

10 .

Trade promotion refers to: a. b. c. d. Contests Push money (spiffs) Buying allowance All of the above

11 .

Promotion accomplishes the task of: a. b. c. d. Reminding Persuading Informing Awareness

12 .

Personal Selling to prospective customers so as to generate sales is made in the form of: a. b. c. d. Written communication Advertisement Promotion Oral Communication

13 .

Pull and Push strategy are directed at: a. b. c. d. Manufacturers Consumers Retailers Dealers

14 .

Marketing position involves: a. b. c. d. Identifying market opportunities Display of product Dealer Network Manufacturing stock

15 .

Advertising Campaign is an organized series of advertising messages with: a. b. c. d. Identical or similar message Price strategy of product Informing about the product All of the above
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16 .

Advertising agency helps marketing department in: a. b. c. d. Budgeting Media promotion Advertising strategy All of the above

17 .

Segmentation is a process of: a. b. c. d. Classifying market Identifying market Defining market Targeting market

18 .

Atomization strategy helps in: a. b. c. d. Choosing target market out of total segments Makes an automatic flow of supply of goods Makes an automatic buyer of product All of the above

19 .

Geographic segmentation is: a. b. c. d. The Simplest Less expensive Division by location All of the above

20 .

Advertising process involves: a. b. c. d. Creative writing process Designing process Budget process All of the above

21 .

Broadcast promotional tools are: a. b. c. d. Newspapers Magazines Radio, Television All of the above

22 .

Telemarketing deliver promotional offers on: a. b. c. d. Internet Phone Brochures All of the above

23 .

Post sales activities are conducted for: a. b. c. d. Testing volumes of sales Testing customer satisfaction Brand awareness All of the above
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24 .

Corporate advertising is also called as: a. b. c. d. Office advertising Institutional advertising Mass advertising All of the above

25 .

Company having high value of sales reflects: a. b. c. d. High customer satisfaction High turnover High revenue All of the above

26 .

Sales promotion enables us: a. b. c. d. To To To All create brand awareness interact closely with the customer increase the sales of the above

27 .

Basic function of Sales Manager is: a. b. c. d. Increase volumes Make budget Confirm quality of product All of the above

28 .

Newspaper advertising helps in: a. b. c. d. Capturing a large number of people Rating awareness at low cost Getting a quick information to customer All of the above

29 .

The promotional activity involves pre-working on: a. b. c. d. Budget Media Inventory Message

30 .

The promotional objectives at maturity stage of life cycle is termed as: a. b. c. d. Informing Persuading Reminding All of the above

31 .

The most effective communication mode is: a. b. c. d. Internet Media Mailers Word of mouth
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32 .

Advertising and sales promotion induces: a. b. c. d. Action Awareness Persuasion All of the above

33 .

Marketing communication is a periodic interaction between:. a. b. c. d. The buyers and sellers The marketing department The marketing & sales department All of the above

34 .

For large audience effective means of advertising is: a. b. c. d. Mass Communication Market Communication Corporate communication All of the above

35 .

Interpersonal communication carries: a. b. c. d. 2way message flow Advertising Strategy Budgeting strategy All of the above

36 .

Advertising is a paid form of non-personal communication of: a. b. c. d. Ideas Goods and services Add on benefits Competitive advantages

37 .

The process of interpreting the message in copy and visuals is called: a. b. c. d. Encoding Decoding Bar-coding All of the above

38 .

One of the 4P of Marketing Mix are: a. b. c. d. Product Advertising Promotion Public Relations Personal Selling

39 .

Non-product advertisement aims to: a. b. c. d. Create favorable image Work for non profit organization Work on low cost All of the above
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40 .

Brand Building, Advertising and Sales Promotion are: a. b. c. d. Synonyms Antonyms Tools of Marketing Concepts of marketing

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