Imc Unit 1

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Unit-1

MARKETING COMMUNICATION

Long Questions-

Ques1-what do you mean by marketing communication? what are the


functional areas of marketing communication
Or
Describe promotion mix in detail?
Ans-
Meaning of Integrated marketing communications (IMC)-
Integrated marketing communications is a holistic planning process that focuses on integrating
messages across communications executions disciplines, creative, media, timing and
stakeholders. An integrated approach has emerged as the dominant approach used by
companies to plan and execute their marketing communication programs and has been
described as a paradigm shift.
IMC is defined as a concept that recognizes the added value in a program that integrates a
variety of strategic disciplines for e.g. general advertising, direct response, sales promotion and
public relations and combines these disciplines to provide clarity, consistency and maximum
communication impact.
Definition of IMC-
According to Philips Kotler,“Promotion compasses all the tools in marketing mix whose major
role is persuasive communications.”
According to Stanton, “Promotion includes Advertising, Personal Selling, Sales Promotion and
other selling tools.”
As per Prof Don Schultz,”It is the process of managing all sources of information about a
product/service to which a customer/prospect is exposed which behaviorally moves a
customer to the sale and maintains customer loyalty.”
Objectives of marketing communication-

1-Leads to behavior modification:


Promotion seeks to
i)-Modify behavior and thoughts
ii)-Reinforce existing behavior
2-Objective to inform:
All promotional communications are designed to inform the largest market about the firm’s
product or services to increase the primary demand. It leads the customer making more
intelligent purchase decisions
3-Objective to persuade:
It is the main objective when the product reaches to the growth stage of its PLC to stimulate
purchase.
4-Objective to remind:
It is used in the maturity stage of the PLC to refresh the memory of target market assuming
that they know the product.
5-Specific objectives:
In economic terms, the basic purpose of promotion is to change the location and shape of the
demand curve by behavior modification- informing, persuading and reminding
Here are the eight most common functional area/components of IMC-

The 9 majorly used IMC tools are:


1-Advertising: This tool of IMC refers to any paid form of non-personal promotions of products
and services by a public figure and identified sponsor. The various forms of media used are
print, broadcast, network, electronic and display. Advertising form of communication reached
geographically dispersed consumers.
2-Sales Promotions: Sales promotions are a variety of short-term incentive to encourage trial
or purchase of product or service. This usually includes consumer promotions- such as
distribution of free samples, coupons on purchase of higher quantity, discounts and premiums
or trade promotions, focusing on retailers, such as display and merchandising allowances,
volume discounts, pay for performance incentives and incentives on salespersons.
3-Personal Selling: This tool of marketing is done through face-to-face interaction with
consumers. The whole purpose of personal selling is making presentations, answering
questions and taking orders. Personal selling helps in maintaining long term relations with the
customer. The main advantage is that the message can be customized as per the needs of the
customer.
4-Public Relations: PR is a two way communication process which is directed towards
improving the relationship between the organization and the public. This method of
communication monitors the feedback of the customers and adjusts its message for providing
maximum benefits to them.
5-Direct Marketing: This method of communication includes the usage of mail, telephones,
fax or internet to communicate with or respond back to the customers or prospects. Companies
usually have a database of contact details of consumer through which they directly contact the
customers to send catalogues and other marketing material making it easier for the consumer
to purchase online.
6-Events and Experiences: These are the activities sponsored by the company and the
programs designed to create brand related interactions with customers. Companies provide
customers to get an experience of using the product which eventually ends up leading to a
higher brand recall than their competitors. These events and experiences leave the customers
heart filled with an emotional touch and memory that they carry along.
7-Interactive marketing-
i)-Social Media Marketing: This tool of marketing is currently the most common way to attract
most audience in the digital era. This basically refers to the process of promoting business or
websites through social media platforms. These platforms help companies to get major
attention of customers and interact with them.
ii)-Mobile Marketing: This form of marketing involves communicating with the customer
directly via their mobile devices, by sending simple marketing messages. This method is
cheaper than the traditional forms of promotions and is a really streamlined version of online
marketing. Advertisements that we see on mobile applications are a common example of mobile
marketing.
8-Packaging
A package is a container and conveyor of information. A package can help in brand
building.
9- Customer service
Customer service is a company's attitude and behavior during interactions with customers.
The bottom line is for a company to be doing well in the market today needs to have a well
integrated marketing communication mix.

Ques2- Explain the factors contributing to Integrated Marketing


Communication (IMC) and the challenges in IMC with suitable example.
Ans-
Factors contributing to IMC
1-Fragmentation of media:
Media options available to the marketers have proliferated at an astounding rate. This resulted
in less reliance on mass media and more emphasis on other promotional options such as point
of purchase promotions and event sponsorships
2-Better audience assessment:
More sophisticated research methods have made it possible to more accurately identify and
target specific market segments such as Asian-Americans, teenagers, Hispanics, and dual
income households with no kids. Thus helping in targeting a specific segment
3-Consumer empowerment:
Consumers now are more powerful and sophisticated than earlier. And hence more skeptical to
the commercial messages and demand information tailored to their needs.
4-Increased advertising clutter:
The proliferation of advertising stimuli has diluted the effectiveness of any single message.
5-Database technology:
The ability of firms has created diverse communications opportunities beyond mass media that
can be used to create customer and non-customer profiles. Thereby highly targeted direct
response and telemarketing programs can be implemented
6-Channel power:
The new power retailer such as wall mart and home depot are able to demand promotional fees
which divert funds from advertising into special events and other retail promotions.
7-Accountability: So as to achieve greater accountability firm have reallocated marketing
resources from adversitisng to short terms and measurable methods such as direct mail and
sales promotion.
Challenges in IMC
However, there are some obstacles for an IMC based process. The rigid structure of businesses
with fear of change is the basic one. Investors inclined to protecting their current achievement
and budgets are what drive away a possibility of installing integrated marketing
communications. The lack of internal communication is another important factor. For IMC to
work, a unification of the organisation as a whole must be done since this is its foundation.
Creativity may find itself bridled with this type of marketing communication, since everything
has to fit the bigger picture, making it more difficult, or challenging, for an advertising
department for example. It all comes down to objectives and how to get there.
In addition to the usual resistance to change and the special problems of communicating with
a wide variety of target audiences, there are many other obstacles which restrict IMC. These
include: Functional Silos; Stifled Creativity; Time Scale Conflicts and a lack of Management
know-how.
Functional silos : Rigid organisational structures are infested with managers who protect both
their budgets and their power base.
Sadly, some organisational structures isolate communications, data, and even managers from
each other. For example the PR department often doesn't report to marketing. The sales force
rarely meet the advertising or sales promotion people and so on. Imagine what can happen
when sales reps are not told about a new promotional offer!
And all of this can be aggravated by turf wars or internal power battles where specific
managers resist having some of their decisions (and budgets) determined or even influenced by
someone from another department.
Here are two difficult questions - What should a truly integrated marketing department look
like? And how will it affect creativity?
It shouldn't matter whose creative idea it is, but often, it does. An advertising agency may not
be so enthusiastic about developing a creative idea generated by, say, a PR or a direct
marketing consultant.
IMC can restrict creativity. No more wild and wacky sales promotions unless they fit into the
overall marketing communications strategy. The joy of rampant creativity may be stifled, but
the creative challenge may be greater and ultimately more satisfying when operating within a
tighter, integrated, creative brief.
Different time scales into a creative brief and provide one more barrier to IMC. For example,
image advertising, designed to nurture the brand over the longer term, may conflict with
shorter term advertising or sales promotions designed to boost quarterly sales. However the
two objectives can be accommodated within an overall IMC if carefully planned.
But this kind of planning is not common. A survey in 1995, revealed that most managers lack
expertise in IMC. But its not just managers, but also agencies. There is a proliferation of single
discipline agencies. There appear to be very few people who have real experience of all the
marketing communications disciplines. This lack of know how is then compounded by a lack of
commitment.

Ques3-what are the Participants of IMC? Critically examine the role of


digital marketing with its advantages and disadvantages?
Ans-
Imc partners/Participants in IMC-
Participants in IMC process can be divided into 5 major groups

specialized
advertising media
advertiser marketing collateral services
agency organizations
communications

1-Advertisers –
They have the products, services or causes to be marketed and also provide funds for the
promotions. They are responsible for developing the marketing program and making final
decisions regarding it.
2-Advertising agency –
It is an outside firm that specializes in the creation, productions and placement of the
communications messages and provide other services to facilitate the marketing and promotion
process.
3-Media organizations –
It is also a major participant in the advertising and promotion programs. The purpose of this
media is to provide an environment (editorial or program content that attracts consumers)for
the firms marketing communication program.
4-Specialized marketing communications –
They include direct marketing agencies, sales promotion agencies and interactive agencies and
public relation firms. They provide services in their area of expertise.
5-Collateral services –
They provide a wide range of support functions used by advertiser, agencies, media
organizations and specialized marketing communications firms in planning and executing
advertising and other promotional functions.
Digital Marketing’s Role in IMC
Digital marketing is the process of selling and promoting the products or services by using the
different types of online marketing tactics; such as social media marketing, search engine
marketing, content marketing, email marketing, etc. When we look into IMC, we can observe
that some of the components relate directly to Digital Marketing.
The main role of Digital Marketing in IMC is to ensure that the customers or users understand
the purpose or mission of the business you’re promoting. For instance, you can observe the
social networks of the Ministry of Health and the message they’re trying to spread about
suggestions to avoid getting coronavirus. It is presented in short, effective, and consistent posts
on all social media. The same information is presented in a different manner to attract the
attention of the targeted audience.
In conclusion, whilst digital marketing is important to keep the brand message consistent
across all digital channels, the business must do the same for offline channels as well. If the
business is unable to do this, it may have several negative effects on the long-term success of
the business. The customers should be able to get the same message across all platforms, be it
offline or online.
Digital marketing benefits businesses of all sizes by giving access to the mass market at an
affordable price. Unlike TV or print advertising, it allows truly personalised marketing. Digital
marketing also comes with a number of challenges you should be aware of.
Advantages of digital marketing
The main advantage of digital marketing is that a targeted audience can be reached in a cost-
effective and measurable way. Other digital marketing advantages include increasing brand
loyalty and driving online sales.
The benefits of digital marketing include:
1-Global reach
A website allows you to find new markets and trade globally for only a small investment.
2-Lower cost
A properly planned and well-targeted digital marketing campaign can reach the right
customers at a much lower cost than traditional marketing methods.
3-Traceable, measurable results-
Measuring your online marketing with web analytics and other online metric tools makes it
easier to establish how effective your campaign has been. You can obtain detailed information
about how customers use your website or respond to your advertising.
4-Personalisation
If your customer database is linked to your website, then whenever someone visits the site, you
can greet them with targeted offers. The more they buy from you, the more you can refine your
customer profile and market effectively to them.
5-Openness
By getting involved with social media and managing it carefully, you can build customer
loyalty and create a reputation for being easy to engage with.
6-Social currency
Digital marketing lets you create engaging campaigns using content marketing tactics. This
content (images, videos, articles) can gain social currency - being passed from user to user and
becoming viral.
7-Improved conversion rates
If you have a website, then your customers are only ever a few clicks away from making a
purchase. Unlike other media which require people to get up and make a phone call, or go to a
shop, digital marketing can be seamless and immediate.
Together, all of these aspects of digital marketing have the potential to add up to more sales.
Disadvantages of digital marketing
Some of the downsides and challenges of digital marketing you should be aware of include:
1-Skills and training
You will need to ensure that your staff have the right knowledge and expertise to carry out
digital marketing with success. Tools, platforms and trends change rapidly and it's vital that
you keep up-to-date.
2-Time consuming
Tasks such as optimising online advertising campaigns and creating marketing content can
take up a lot of time. It's important to measure your results to ensure a return-on-investment.
3-High competition
While you can reach a global audience with digital marketing, you are also up against global
competition. It can be a challenge to stand out against competitors and to grab attention
among the many messages aimed at consumers online.
4-Complaints and feedback
Any negative feedback or criticism of your brand is can be visible to your audience through
social media and review websites. Carrying out effective customer service online can be
challenging. Negative comments or failure to respond effectively can damage your brand
reputation.
5-Security and privacy issues
There are a number of legal considerations around collecting and using customer data for
digital marketing purposes. Take care to comply with the rules regarding privacy and data
protection.
Ques4-Explain the process of IMC ?Also emphasize on its importance
Ans-
IMC PROCESS
Step 1. Review of the marketing plan-
First step is to review marketing plan and objectives. Marketing plan is a written document
that describes the overall marketing strategy and programs developed for an organization, a
particular product line or a brand
Step 2. Promotional Program situational analysis-
This is the next step which involves internal analysis and external analysis-
i)-Internal analysis:
It assesses relevant area involving the product/service offering and the firm itself. The
capability of the firm and its ability to develop and implement a successful promotional
program, the organization of promotional department and the success and failures of past
programs is reviewed. The analysis studies the relative advantage and disadvantage of
performing the promotional functions.
ii)-External analysis:
It focuses on factors such as characteristics of the firms’ customers, market segments,
positioning strategies and competitors. An important part of the external analysis is a detailed
consideration of customer’s characteristics, buying patterns, their decision processes, and
factors influencing their purchase decisions.
Step 3. Analysis of the communication program-
Communication decisions regarding the use of various sources, message and channel factors
must also be considered. The promotional planner should recognize the different effects various
types of advertising messages might have on consumers and whether they are appropriate for
the product or brand. Issues such as whether a CELEBRITY SPOKESPERSON should be used
and at what cost may also be identified.
Step 4. Budget determination-
After the communication objectives are determined, attention turns to the promotional budget.
Two basic questions are asked at this point: what will be the promotional program cost? How ill
the money be allocated?
Ideally, the amount a firm needs to spend on promotion should be determined by what must be
done to accomplish its communication objectives. At this stage, the budget is often tentative. It
may not be finalized until specific promotional mix strategies are developed.
Step 5. Developing the IMC program-
At this stage, decisions are made regarding the role and importance of each element and their
co-ordination with one another. Each promotional mix element has its own objectives and a
budget and strategy for meeting them. Decisions must be made and activities performed to
implement the promotional program. Procedures are developed for evaluating performance and
making any necessary changes.

Step6.Developing IMC program:

Advertising Sales promotion


Set advertising objectives Set sales promotional objectives
Determine advertising budget Determine sales promotion budget
Develop message strategies Develop sales promotion strategies
Develop media strategies Public relations
Direct marketing Set PR objectives
Set direct marketing objectives Determine PR budget
Determine direct marketing budget Develop PR functions
Develop direct marketing strategies Personal selling
Set personal selling objectives
Determine personal selling budget
Develop selling roles and responsibility
Step7. Monitoring, evaluation and control –
This is the final stage for the promotional program. It is important to determine how well the
promotional program is meeting communications objective and helping the firm accomplish its
overall marketing goals and objectives. The promotional planner wants to know not only how
well the promotional program is doing but also why. For example problems with the advertising
program may lie in the nature of the message or in a media plan that does not reach the target
market effectively. The manager must know the reason for the results in order to take the right
steps to correct the program.
The final stage of the process is designed to provide managers with continual feedback
concerning the effectiveness of the promotional program, which in turn can be used as input
into the planning process.
Importance of integrated marketing communication
Integration has become an essential concept in marketing because technological advances have
changed how business stakeholders interact.
A few points help illustrate the growing importance of integration:
1-Search marketing: When someone is considering buying a product or service they will often
conduct an online search. What they find, on Google and other search engines, as well as
information from news sites, review sites, directories, videos and place-based searches, are
presented together, so like it or not, there is a level of integration. The online experience will
affect their attitudes towards a brand and their behavior. Marketers therefore need to concern
themselves with making sure their brand is found ahead of competitors' and then ensuring
their audience has a positive and helpful experience.
2-Accessibility and convenience: Consumers expect information and services that relate to a
brand to be conveniently accessible via its website. For instance when a consumer visits
Virgin.com they are able to book a flight, manage their money, top up their mobile phone plan
or find up-to-date news about the company.
3-Aggregation of information and services: The traditional demarcation between a company,
its suppliers and customers has become confused. For instance the Apple iTunes app store
aggregates software and information from app makers, along with reviews provided by
consumers. Product promotion, delivery, service and information from many different sources
are seamlessly presented together.
4-Social media: Traditionally businesses were largely in control of their brand
communications. Now brand communications are multidirectional as consumers can easily
share, comment and create content. Brands can use this to their advantage by creating
appealing content. For instance Unilever’s campaign for Dove, The Dove Real Beauty Sketches
went viral with over 54 million views on YouTube.
5-Growth of mobile: The growing penetration of Smartphone with fast internet connectivity
means that marketers need to take into consideration integration between the online
experience and place-based experiences. For instance when a consumer downloads the Target
app they are able to receive coupons to their mobile phone and redeem them at the checkout
by presenting the coupon barcode to the cashier.

Ques5- “Role of advertising is inevitable in contemperory marketing


management?Comment. Discuss its functions?
Ans-
Advertising A message that is paid for and sent to large groups of the population at one time
with an identified organization or brand (product or service) being promoted. The typical media
that organizations utilize for advertising of course include television, magazines, newspapers,
the Internet, direct mail, and radio. Businesses also advertise on mobile devices and social
media such as Facebook, blogs, and Twitter.

Definition: American Marketing Association has defined Advertising as: “Any paid form
of non-personal presentation of ideas, goods and services by an identified sponsor”

“Role of advertising is inevitable in contemperory marketing management”


Advertising has become increasingly important to business enterprises- both large and small.
Outlays on advertising certainly attest to the management’s faith in the ability of advertising
efforts to produce additional sales.
It would be difficult to conceive of a firm that does not attempt to promote its product in some
manner or another. Most modern institutions simply cannot survive without advertising.
Non-business enterprises have also recognised the importance of advertising. The attempt by
army recruitment is based on a substantial advertising campaign, stressing the advantages of a
military career. The health department popularises family planning through advertising.
Even labour organizations have used advertising to make their viewpoints known to the public
at large. In fact, it is reasonable to say that promotion now plays a larger role in business than
it ever did in the past.
If for no other reason than that it is an activity that employs several thousands of people,
advertising assumes real economic importance. More importantly, however, is the fact that
effective advertising has offered to society benefits not otherwise available.
For example, the criticism that “advertising costs too much” views an individual expense item
in isolation. It fails to consider the possible effect of advertising on other categories of
expenditure.
Advertising strategies that increase the number of units sold stimulate economies in the
production process. The production costs assigned to each unit of output are lowered. Lower
consumer prices then allow these products to become available to more people.
Similarly, the price of newspapers, professional sports, radio and TV programmes, and the like
might be prohibitive without advertising to share the expense. In short, advertising pays for
many of the enjoyable entertainment and educational aspects of contemporary life, as well as
lower product costs.
The criticism that “most advertising messages are tasteless” and that “advertising contributes
nothing to society’s well-being” sometimes ignore the fact that there is no commonly accepted
set of standards or priorities within our social framework. We live in a varied economy
characterized by consumer segments with differing needs, wants and aspirations. What is
tasteless to one group may be quite informative to another.
An advertising strategy generally suffers from the averaging problem that escapes many of its
critics. The one generally accepted standard in our society is freedom of choice for the
consumer; customer buying decisions will eventually determine what an acceptable practice in
the market place is.
Advertising has become an important factor in the campaigns to achieve such societal-oriented
objectives as the discontinuance of smoking, family planning, physical fitness, and the
elimination of drug abuse. Advertising performs an informative and educative task that makes
it extremely important in the functioning of the modern Indian society.
Functions of advertising:-
Advertising has become an essential marketing activity in the modern era of large scale
production and serve competition in the market. It performs the following functions:
1. Promotion of Sales:
It promotes the sale of goods and services by informing and persuading the people to buy them.
A good advertising campaign helps in winning new customers both in the national as well as in
the international markets.
2. Introduction of New Product:
It helps the introduction of new products in the market. A business enterprise can introduce
itself and its product to the public through advertising. Advertising enables quick publicity in
the market.
3. Creation of Good Public Image:
It builds up the reputation of the advertiser. Advertising enables a business firm to
communicate its and this increases the goodwill and reputation of the firm which is necessary
to fight against competition in the market.
4. Mass Production:
Advertising encourages production of goods in large-scale because the business firm knows
that it will be able to sell on large-scale with the help of advertising. Mass production reduces
the cost of production per unit.
5. Research:
Every firm tries to differentiate its product from the substitutes available in the market through
advertising. This compels every business firm to do more and more research to find new
products and their new uses.
6. Education of People:
Advertising educates the people about new products and the utility of a product, enabling
people in adopting new ways of life and giving-up old habits, thereby contributing a lot towards
the betterment of the standard of living of the society.
7. Support to Press:
Advertising provides an important source of revenue to the publishers and magazines. It
enables to increase the circulation of their publication by selling them at lower rates. People
are also benefited because they get publications at cheaper rates. Advertising is also a source
of revenue for TV network.

Ques6- Explain the different types of advertising?


Or
Classification of advertising?
Ans-
Classification of Advertising
Management scientists have classified advertising on different such criteria as follows:

Classification of Advertising on the various bases

Area Coverage Audience Media Function Stage

A)-Classification on The Basis of Area Coverage:


On this basis advertising may be classified into the following four categories, viz., (1) local, (2)
regional, (3) national,
1)-Local Advertising:
It is also known as retail advertising. It is undertaken by local retail stores, departmental
stores, co-operative stores, selling cloth, saris and other consumer goods and consumer
durables. It is directed at local customers. Media, used for local advertising, are shop
decorations, local newspapers, magazines, posters, pamphlets, hoarding, new signs, local
cinema houses, etc.
2)-Regional Advertising:
It has wider coverage, as compared to local advertising. It covers a particular region, which may
be one state, or, more than one state, the people of which may be having a common tongue, or,
using one common product. It is undertaken by manufacture, or, regional distributor of a
product. Media, used for regional advertising, include regional newspapers, magazines, radio,
regional T.V., outdoor media, etc. It is considered to be an ideal form of advertising for
launching and marketing a new product in a specific region.
3)- National Advertising:
It is generally undertaken by manufactures of branded goods, for which, advertising messages
is communicated to consumers all over the country. Almost all possible mass media, including
national newspapers, radio and
Television network, are employed for national advertising. Product services, and ideas, which
have demand all over the country, are suitable for national advertising. In India, Indian Airline,
Hindustan Lever Ltd., Vicco, Godrej, Bajaj and Kirloskar are a few leading advertisers at
national level. Likewise, detergents, soaps, toothpastes, cosmetics, scooters, cars, and bicycles,
are some of the products, which are advertised all over the country.
4)- International Advertising:
This type of advertising is undertaken by those companies, which operate in more than one
country, known as ‘multi-national’ companies. Exporters, generally advertise their products
and services in foreign countries, where ready markets are available. Air India and other
airlines, and multinational companies advertise their products and services all over the world.
Coca-Cola and Pepsi are advertised globally, as the sales are almost all over the world.
International advertising is extremely expensive, involving the services of professional
advertising agencies in different countries.
B)- Classification on The Basis of Audience
On this basis, advertising may be classified into the following four categories, viz., (1) consumer
advertising, (2) industrial advertising, (3) trade advertising, and (4) professional advertising.
1)-Consumer Advertising:
This type of advertising is directed to the ultimate consumers of the consumer products, i.e.,
the individuals, who buy, or, use the consumer products or services say, for example, toilet
soap, toothpaste, toothbrush, tea, textiles, etc., for themselves and for their families. All types
of consumer products need continuous and extensive advertising on T.V., radio, and press.
2)-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,
and business
magazines and so on. The appeal made is tactual and rational.
3)-Trade Advertising:
This kind of advertising is employed by manufactures and/or distributors to influence and
persuade wholesalers and dealers (retailers) to stock and sell the goods of the advertiser by
offering incentive schemes to them or by inviting dealership for their particular products(s).
4)- Professional Advertising: It is directed at professional like doctors, professors, engineers
and others, who are expected to recommend, prescribe, or, specify the advertised products to
ultimate consumers. This is done through professional journals and representative of the
advertisers.
C)- Classification on The Basis of Media
On the basis, advertising may be-classified into the following four categories viz., (1) Print
media advertising (2) electronic or broadcast media advertising
(3) Outdoor media advertising.
1)-Print Media Advertising:
The print media consists of newspapers, magazines, journals, handbills, etc. No newspaper or
journal, today, can survive without advertising revenue
2)-Electronic or Broadcast Media Advertising:
Electronic or broadcast media consists of (i) radio, (ii) television, (iii) motion pictures, (iv) video,
and (v) the internet.
3)-Outdoor Media: This include posters, neon signs, transit, point of purchase
(POP) etc. Outdoor advertising can be a good supporting media to other forms of advertising. It
is a good form of reminder advertising, especially the POP advertising.
4) Other Media: This includes direct mail, handbills, calendars, diaries, cinema, advertising,
internet and so on. These miscellaneous media can play an important supporting role to the
major media such as television, and newspapers.
D)-Classification on The Basis of Function:
1)-Direct Action and Indirect Action Advertising:
Direct action advertising is undertaken to obtain immediate response or action on the part of
target audience. Examples include discount sales advertising, sale along with free gift offers,
and mail-order coupon sales, etc. The media used is mostly newspapers, and television.
Indirect action advertising is undertaken to influence the audience in respect of advertiser’s
brand. The advertiser expects the target audience to prefer his brand as compared to
competitors whenever a buying decision arises in future.
2)-Primary and Selective Advertising:
Primary Advertising is undertaken by trade association or by cooperative groups. For example,
the Coffee Board may advertise to consume more coffee. Selective Advertising is undertaken by
marketers of branded products. The advertiser intends to create selective demand for his
brand. Examples include Pepsi Cola, Coca Cola.
3)-Product and Institutional Advertising: Product or Service advertising is undertaken to
promote the sale of products and services-branded or unbranded. Institutional advertising is
undertaken to build name and goodwill of the organization. It is also known as corporate
advertising or image advertising.
5)-Classification on The Basis of Advertising Stages
On this basis, advertising may be classified into the following three different categories, viz., (1)
advertising at pioneering stage, (2) Advertising at competitive stage, and (3) advertising at
retentive stage.
1. Advertising at Pioneering Stage: Advertising at pioneering stage is undertaken to make the
audience fully aware of the new brand of product and to inform, influence and persuade them
to buy or use it by highlighting its unique features.
2. Advertising at Competitive Stages: At this stage, Competitive advertising is undertaken to
promote sales effectively.
3. Advertising at Retentive Stage or Reminder Advertising: When the product has captured
a large share of the market, retentive advertising is undertaken to maintain, or retain the
stable position in the market as long as possible. Moreover, if the same product is passing
through the declining stage in the market, this type of advertising is used to remind the buyers
about the product .Hence, it is also known as reminder advertising.

Ques7- Describe in detail the DAGMAR approach for setting advertising


objectives?
Ans-
The DAGMAR Model
DAGMAR is an acronym for defining advertising goals and measuring advertising
results. Each of these words stands for goals that are of the utmost importance to a business
attempting to reach and make an impression on their target audience. The model also specifies
five phases that potential customers pass through as they are made aware of your business or
product: unaware, aware, comprehension, conviction and, finally, action. With both the goals
and the audience's cycle in mind, a business can apply the theory as a framework for
developing its advertising and promotional mix. Ideally, when the theory of the model is used,
the target audience moves smoothly through the five phases, which are based in psychology
and common decision-making patterns people follow when deciding whether or not to buy
something.
In 1961, Russell Colley prepared a report for the Association of National Advertisers titled
Defining Advertising Goals for Measured Advertising Results (DAGMAR). In it, Colley developed
a model for setting advertising objectives and measuring the results of an ad campaign. The
major thesis of the DAGMAR model is that communications effects are the logical basis for
advertising goals and objectives against which success or failure should be measured.
Advertising’s job, purely and simply, is to communicate to defined audience information and a
frame of mind that stimulates action. Advertising succeeds or fails depending on how well it
communicates the desired information and attitudes to the right people at the right time and at
the right cost.
Under the DAGMAR approach, an advertising goal involves a communications task that is
specific and measurable. A communications task, as opposed to a marketing task, can be
performed by, and attributed to, advertising rather than to a combination of several marketing
factors. Colley proposed that the communications task be based on a hierarchical model of the
communications process with four stages:
• Awareness—making the consumer aware of the existence of the brand or company.
• Comprehension—developing an understanding of what the product is and what it will do for
the consumer.
• Conviction—developing a mental disposition in the consumer to buy the product.
• Action—getting the consumer to purchase the product.
Other hierarchical models of advertising effects can be used as a basis for analyzing the
communications response process.
While the hierarchical model of advertising effects was the basic model of the communications
response process used in DAGMAR, Colley also studied other specific tasks that advertising
might be expected to perform in leading to the
ultimate objective of a sale. He developed a checklist of 52 advertising tasks to characterize the
contribution of advertising and serve as a starting point for establishing objectives.
CHARACTERISTICS OF OBJECTIVES
A second major contribution of DAGMAR to the advertising planning process was its definition
of what constitutes a good objective. Colley argued that advertising objectives should be stated
in terms of concrete and measurable communications tasks, specify a target audience, indicate
a benchmark starting point and the degree of change sought, and specify a time period for
accomplishing the objective(s). The communications task specified in the objective should be a
precise statement of what appeal or message the advertiser wants to communicate to the target
audience. Advertisers
generally use a copy platform to describe their basic message. The objective or copy platform
statement should be specific and clear enough to guide the creative specialists who develop the
advertising message. For example, Foster’s Beer, after a successful introduction, saw sales
decline significantly. Knowing that to reverse the downward trend something significant had to
be done, Fosters developed an entirely new positioning campaign with the following objectives:
i. Strengthen the brand’s image
b. Maximize brand presence
c. Broaden the market base beyond traditional import beer drinkers
d. Increase sales
Using a variety of tools including billboards, videos, point-of-sale promotions, and spot
television, the program doubled its unaided awareness scores, tripled trial, and increased
brand awareness by 40 percent. In addition, beer sales doubled in test markets, and overall
beer sales increased by 12.1 percent in the first year of the campaign. According to DAGMAR,
the objective must also be measurable. There must be a way to determine whether the intended
message has been communicated properly. For example Midwest
Express measured its communications objective by asking airline travelers whether they
thought Midwest’s airfares were higher than those of competing airlines.
Criticisms of DAGMAR
While DAGMAR has contributed to the advertising planning process, it has not been totally
accepted by everyone in the advertising field. A number of
problems have led to questions regarding its value as a planning tool:
1)- Problems with the response hierarchy-
A major criticism of the DAGMAR approach is its reliance on the hierarchy of effects model.
The fact that consumers do not always go through this sequence of communications effects
before making a purchase has been recognized, and alternative response models have been
developed.
2)-Sales objectives-
Another objection to DAGMAR comes from those who argue that the only relevant measure of
advertising objectives is sales. They have little tolerance for ad campaigns that achieve
communications objectives but fail to increase sales. Advertising is seen as effective only if it
induces consumers to make a purchase. The problems with this logic were addressed in our
discussion of communications objectives.
3)-Practicality and costs-
Another criticism of DAGMAR concerns the difficulties involved in implementing it. Money
must be spent on research to establish quantitative benchmarks and measure changes in the
response hierarchy. This is costly and time-consuming and can lead to considerable
disagreement over method, criteria, measures, and so forth. Many critics argue that DAGMAR
is practical only for large companies with big advertising and research budgets. Many firms do
not want to spend the money needed to use DAGMAR effectively.
4)-Inhibition of creativity- A final criticism of DAGMAR is that it inhibits advertising creativity
by imposing too much structure on the people responsible for developing the advertising. Many
creative personnel think the DAGMAR approach is too concerned with quantitative assessment
of a campaign’s impact on awareness, brand name recall, or specific persuasion measures. The
emphasis is on passing the numbers test rather than developing a message that is truly
creative and contributes to brand equity?
Ques 8- Discuss the nature or characteristics of Advertising? What do you
mean by STP strategies for advertising?
Ans-
Nature/Characteristics 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 favorable attitude which will lead to favorable actions. Any
advertising process attempts at converting the prospects into customers. It is thus an indirect
salesmanship and essentially a persuasion technique.
4)-Profit Maximization:
True advertising does not attempt at maximizing 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 organized knowledge. Advertising is 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.
STP strategies for advertising-
Segmentation, targeting, and positioning (STP) is a marketing strategy that helps businesses
identify and reach their target audience by dividing the market into smaller segments, choosing
the most appropriate segment(s), and developing a unique marketing mix to reach and
influence the selected segment(s).
Here’s a stepwise STP approach that can be followed for the successful advertising:-
Step 1: Segment Your Market
The organization, product or brand can't be all things to all people. This is why it is required to
use market segmentation to divide your customers into groups of people with common
characteristics and needs. This allows you to tailor your approach to meet each group's
needs cost-effectively, and this gives you a huge advantage over competitors who use a "one
size fits all" approach.
There are many different ways to segment your target markets. For example, you can use the
following approaches:
a)-Demographic –
By personal attributes such as age, marital status, gender, ethnicity, sexuality, education, or
occupation.
b)-Geographic –
By country, region, state, city, or neighborhood.
c)-Psychographic –
By personality, risk aversion, values, or lifestyle.
d)-Behavioral –
By how people use the product, how loyal they are, or the benefits that they are looking for.
Step 2: Target Your Best Customers
Targeting refers to the process of selecting and prioritizing specific segments of the market to
focus on with marketing efforts. Once a business has identified market segments through
segmentation, it must determine which segment(s) to target.
Next, you decide which segments to target by finding the most attractive ones.Here are some
factors that businesses consider when selecting target segments:
a)-Size:
The size of the segment can determine whether it is worth targeting, as smaller segments may
not be profitable.
b)-Growth potential: A segment with a high growth potential may be more attractive than a
stagnant or declining segment.
c)-Profitability:
The profitability of a segment is an important consideration, as some segments may require a
higher investment of resources to target than others.
d)-Competition:
The level of competition in a segment can affect the ability of a business to target and
differentiate itself effectively.
e)-Fit with the business’s capabilities:
A business may prioritize segments that align with its strengths and capabilities to meet
customer needs better.
Once a business has selected its target segments, it can develop a marketing mix tailored to
those segments’ needs and preferences. This may include customized messaging, product
variations, pricing, and distribution channels.
Effective targeting can help a business improve the efficiency and effectiveness of its
advertising efforts, increase customer satisfaction and loyalty, and ultimately lead to increased
sales and profitability.
Step 3: Position Your Offering
Positioning in Advertising refers to creating a unique image and perception of a brand or
product in the target audience’s minds. Positioning aims to differentiate the brand or product
from its competitors and establish a distinct and desirable position in the market.
Here are some factors that businesses consider when positioning their brand or product:
a)-Target audience:
Understanding the needs, preferences, and behaviors of the target audience is critical to
developing a successful positioning strategy.
b)-Competitors:
Analyzing the strengths and weaknesses of competitors can help businesses identify gaps in
the market and create a unique selling proposition.
c)- Unique selling proposition (USP):
A USP is a key benefit or value that sets a brand or product apart from its competitors and is
the foundation of the positioning strategy.
d)-Brand personality:
The brand’s personality is the emotional and psychological associations consumers have with
the brand and can help create a distinct and recognizable identity.
e)-Price:
The product’s price can influence how consumers perceive its value and quality.
Once a business has developed its positioning strategy, it can communicate the message to the
target audience through advertising, marketing, and other promotional efforts.
Effective positioning can help a brand or product stand out in a crowded market, attract and
retain customers, and ultimately increase sales and profitability.
Ques9- What do you mean by sales promotion?Discuss its various tools?
what are its various strength and weakness of it?
Ans-
Sales Promotion
Sales promotion has been defined as “a direct inducement that offers an extra value or
incentive for the product to the sales force, distributors, or the ultimate consumer with the
primary objective of creating an immediate sale.” sales promotion can be broken into two major
categories:
A)-Consumer-oriented and
B)-Trade-oriented promotions.
(A)-Consumer-Oriented Sales Promotion Techniques
1)-Sampling
Marketers use various sales promotion techniques to meet the objectives just discussed.
Sampling involves a variety of procedures whereby consumers are given some quantity of a
product for no charge to induce trial. Sampling is generally considered the most effective way to
generate trial, although it is also the most expensive. As a sales promotion technique, sampling
is often used to introduce a new product or brand to the market.
2)-Couponing
The oldest, most widely used, and most effective sales promotion tool is the cents-off coupon.
Coupons have been around since 1895, when the C. W. Post Co. started using the penny-off
coupon to sell its new Grape-Nuts cereal. In recent years, coupons have become increasingly
popular with consumers, which may explain their explosive growth among manufacturers and
retailers that use them as sales promotion incentives.
3)-Premiums
Premiums are a sales promotion device used by many marketers. A premium is an offer of an
item of merchandise or service either free or at a low price that is an extra incentive for
purchasers. Many marketers are eliminating toys and gimmicks in favor of value-added
premiums that reflect the quality of the product and are consistent with its image and
positioning in the market. Marketers spend over $4 billion a year on value-added premium
incentives targeted at the consumer market.
The two basic types of offers are the free premium and the self-liquidating premium.
4)-Contests and Sweepstakes
Contests and sweepstakes are an increasingly popular consumer-oriented promotion.
Marketers spent nearly 2 billion on these promotions in 2001. These promotions seem to have
an appeal and glamour that tools like cents-off coupons lack. Contests and sweepstakes are
exciting because, as one expert has noted, many consumers have a “pot of gold at the end of
the rainbow mentality” and think they can win the big prizes being offered.
A contest is a promotion where consumers compete for prizes or money on the basis of skills or
ability. The company determines winners by judging the entries or ascertaining which entry
comes closest to some predetermined criteria (e.g., picking the winning teams and total number
of points in the Super Bowl or NCAA basketball tournament)
A sweepstakes is a promotion where winners are determined purely by chance; it cannot
require a proof of purchase as a condition for entry. Entrants need only submit their names for
the prize drawing. While there is often an official entry form, handwritten entries must also be
permitted
5)-Refunds and Rebates
Refunds (also known as rebates) are offers by the manufacturer to return a portion of the
product purchase price, usually after the consumer supplies some proof of purchase.
Consumers are generally very responsive to rebate offers, particularly as the size of the savings
increases. Rebates are used by makers of all types of products, ranging from packaged goods to
major appliances, cars, and computer software.
6)-Bonus Packs
Bonus packs offer the consumer an extra amount of a product at the regular price by providing
larger containers or extra units (Exhibit 16-22). Bonus packs result in a lower cost per unit for
the consumer and provide extra value as well as more product for the money.
There are several advantages to bonus pack promotions. First, they give marketers a direct way
to provide extra value without having to get involved with complicated coupons or refund offers.
The additional value of a bonus pack is generally obvious to the consumer and can have a
strong impact on the purchase decision at the time of purchase.
7)-Price-Off Deals
Another consumer-oriented promotion technique is the direct price-off deal, which reduces the
price of the brand. Price-off reductions are typically offered right on the package through
specially marked price packs, as shown in Exhibit 16-23. Typically, price-offs range from 10 to
25 percent off the regular price, with the reduction coming out of the manufacturer’s profit
margin, not the retailer’s. Keeping the retailer’s margin during a price-off promotion maintains
its support and cooperation.
8)-Frequency Programs
One of the fastest-growing areas of sales promotion is the use of frequency programs (also
referred to as continuity or loyalty programs). American Airlines was one of the first major
companies to use loyalty programs when it introduced its advantage frequent-flyer program in
1981. Since then frequency programs have become commonplace in a number of product and
service categories, particularly travel and hospitality, as well as among retailers.
9)-Event Marketing
Another type of consumer-oriented promotion that has become very popular in recent years is
the use of event marketing. It is important to make a distinction between event marketing and
event sponsorships, as the two terms are often used interchangeably yet they refer to different
activities. Event marketing is a type of promotion where a company or brand is linked to an
event or where a themed activity is developed for the purpose of creating experiences for
consumers and promoting a product or service.
Marketers often do event marketing by associating their product with some popular activity
such as a sporting event, concert, fair, or festival. However, marketers also create their own
events to use for promotional purposes
(B)-Trade-Oriented Sales Promotion
Contests and Incentives Manufacturers may develop contests or special incentive programs to
stimulate greater selling effort and support from reseller management or sales personnel.
Contests or incentive programs can be directed toward managers who work for a wholesaler or
distributor as well as toward store or department managers at the retail level.
Manufacturers often sponsor contests for resellers and use prizes such as trips or valuable
merchandise as rewards for meeting sales quotas or other goals.
1)-Trade Allowances
Probably the most common trade promotion is some form of trade allowance, a discount or deal
offered to retailers or wholesalers to encourage them to stock, promote, or display the
manufacturer’s products. Types of allowances offered to retailers include buying allowances,
promotional or display allowances, and slotting allowances.
2)-Displays and Point-of-Purchase Materials
The next time you are in a store, take a moment to examine the various promotional materials
used to display and sell products. Point-of-purchase (POP) displays are an important
promotional tool because they can help a manufacturer obtain more effective in-store
merchandising of products. Companies in the United States spend more than 15 billion a year
on point of- purchase materials, including end-of-aisle displays, banners, posters, shelf cards,
motion pieces, and stand-up racks, among others
3)-Sales Training Programs
Another form of manufacturer-sponsored promotional assistance is sales training programs for
reseller personnel. Many products sold at the retail level require knowledgeable salespeople
who can provide consumers with information about the features, benefits, and advantages of
various brands and models. Cosmetics, appliances, computers, consumer electronics, and
sporting equipment are examples of products for which consumers often rely on well-informed
retail sales personnel for assistance.
4)-Trade Shows
Another important promotional activity targeted to resellers is the trade show, a forum where
manufacturers can display their products to current as well as prospective buyers. According
to the Trade Show Bureau, nearly 100 million people attend the 5,000 trade shows each year
in the United States and Canada, and the number of exhibiting companies exceeds 1.3 million.
In many industries, trade shows are a major opportunity to display one’s product lines and
interact with customers. They are often attended by important management personnel from
large retail chains as well as by distributors and other reseller representatives.
5)-Cooperative Advertising
The final form of trade-oriented promotion we examine is cooperative advertising, where the
cost of advertising is shared by more than one party. There are three types of cooperative
advertising. Although the first two are not trade-oriented promotion, we should recognize their
objectives and purpose.
Horizontal cooperative advertising is advertising sponsored in common by a group of
retailers or other organizations providing products or services to the market. For example,
automobile dealers who are located near one another in an auto park or along the same street
often allocate some of their ad budgets to a cooperative advertising fund. Ads are run
promoting the location of the dealerships and encouraging car buyers to take advantage of
their close proximity when shopping for a new automobile.
Ingredient-sponsored cooperative advertising is supported by raw materials manufacturers;
its objective is to help establish end products that include the company’s materials and/or
ingredients.
Advantages of Sales Promotion
Following are a few advantages of Sales Promotion:
1)-Helps to Differentiate:
One of the most important aspects of a sales promotion is creating differentiation. If it’s not
different, it won’t get noticed. Even though you may be marketing to the same audience, you
can still make your promotion more appealing to them by highlighting features they don’t
already have or aren’t offered with what they’re already buying.
2)-Creates opportunity for communication:
Every company should have a plan for sales promotion. Whether you sell products or services,
you need to create communication opportunities with your customers. This involves
advertising, promotions, sweepstakes and social media marketing. Moreover, it can also
improve the company’s ROI by increasing customer retention, customer engagement, and
customer satisfaction.
3)-Promotes word-of-mouth:
The most important feature of sales promotion is word of mouth. Most people trust the claims
and recommendations of people that they know, particularly when it comes to something like a
product or service. Sales promotion has many benefits such as building customer loyalty and
increasing sales volume, but it can also be used by businesses to establish their brand identity.
As a result, this type of marketing is often more cost-effective than other forms.
4)-Ideal for cross-selling and upselling:
One of the most important tools that marketers have is the ability to create cross-selling and
up-selling opportunities. When they do this, they are able to maximise their sales without
having to go through a lot of extra work. They can also create promotions and incentives for
customers who buy products as well as create discounts for those who already own certain
products.
5)-Gives a reason to buy:
Another advantage of sales promotion is the creation of a reason to buy. It sparks interest in
the recipient’s mind so that they believe that there is a good reason to purchase the product.
This can be done through various methods such as AIDA (Attention, Interest, Desire, and
Action) or the PAS model (pain-agitate-solution)
6)-Promotes focused marketing:
When it comes to marketing, everyone is looking for that one magic bullet. The answer most
people are searching for is that one tool that will help them get more sales or better results
with less effort. Unfortunately, there’s no such thing as a “one size fits all” solution and each
company has to find the unique approach that works best for their particular industry and
product.
7)-Probability for higher revenue:
Creating a sales promotion is the best way to increase your revenue. Offer discounts, coupons,
and other incentives to encourage people to buy more items. It is important that you create a
promotional strategy so that you can reach as many people as possible with this marketing
tool.
8)-Provides information for your customers:
The main advantage of using online sales promotion is that you can create a source of
information for your customers. It’s easy to post pictures, videos and descriptions of your
products on social media sites like YouTube, Instagram, Twitter, Facebook, etc. This will help
increase the number of visitors to your website and make it more visible to people in the search
engines. These features also help you promote your brand as well as attracting new customers.
Disadvantages of Sales Promotion
Following are a few disadvantages of Sales Promotion:
1)-Increased sensitivity to price change:
A common disadvantage of this strategy is that the customer becomes more price sensitive and
will look for a way to save money, even if it doesn’t affect their quality of life.
2)-Might cause a negative brand image:
Sometimes sales promotions have a negative impact on the quality of the company’s image.
For example, if people see a sale on an unhealthy product like potato chips or a soup, they may
gossip about it to friends and colleagues. Customers might also think that the company is
offering low-quality products if the discount on the product is very high.
3)-Short term strategy:
Sales promotion is not a long-term solution. It should be used to ensure immediate success,
but it shouldn’t be the only focus of your marketing strategy. In fact, companies that heavily
rely on sales promotion are more likely to see their profits fall. Sales promotion is too short-
term in nature and doesn’t address long-term issues for the company such as customer
relations, product pricing, innovation, etc.
4)-Sales promotion might not be able to change customer perception:
One of the biggest mistakes that companies make is to think that presenting a promotion will
transform a customer’s opinion about their product. If people don’t believe in your product,
then your product or even the company may perish. For instance, the popular Note series
mobiles from Samsung were found to be a fire and an explosion hazard. This dented the
company’s image for a few years.
5)-Sales promotion cannot save a bad product:
Sales promotion cannot overcome product problems. For example, a lack of distribution
channels or poor product quality will affect the effectiveness of sales promotion.
6)-Sales promotion cannot compensate for a poorly trained sales force:
There are many reasons why sales promotion is not the perfect solution for all businesses. For
one, it can’t compensate for a poorly trained sales force. If a company’s salespeople aren’t
properly prepared for their roles, selling with promotions can actually be counterproductive.
7)-Extra stock could accumulate:
Sales promotion may affect your company negatively because it could cause the extra stock to
stay out in the market for too long or it could cause other companies to make unauthorised
sales of your product.
Ques10-Discuss in detail the economic, social, ethical and legal issues in
advertising? ?
Or
In a democracy where people have freedom of speech and expression.Why
do we need laws governing commercial speech that is,advertising?Discuss
with arguments.
Ans-
Economic Aspects of Advertising:
1. Enhance Product Value:
Advertising enhances the value of the products and services. Most of the advertised products
are always the best products in the market.
2. Enhance Product Utility:
Advertising provides product utility to the consumers. It educates consumers about the uses of
the products and services.
3. Reduce Prices:
The consumer price includes production costs, selling costs, distribution costs and profit
margin of the seller.
4. Reduce Production Cost:
In long run the advertising reduces the production cost. The plant capacity will expand over a
time period. It leads to enhanced production volume.
5. Reduce Distribution Costs:
Distribution cost includes advertising and sales promotion costs. It includes the cost of display,
demonstration, dealer’s commission, incentives etc.
6. Enhances Demand and Choice:
The advertising plays a vital role in enhancing the demand for products and services. The
effective advertising gives advertiser a chance to introduce new brands. It promotes the existing
products and services.
7. Overcome Competition:
The success of business depends on the effective reach to the targeted population. The effective
advertising helps the company to sustain the present competition.
Social Aspects of Advertising:
The advertisements which deal with social causes aimed at welfare and well-being of the people
is called social advertisement. It is a social institution. It is a continuous social process. The
social process, stands for all social activities that are performed to achieve the goals and
objectives of an individual and the society.
It creates awareness among the people, inform and educate them about social relevant issues.
For example – The advertisements which communicates the masses to save oil, save water,
save energy etc.
The areas covered under social advertising are as follows:
1. Health Care:
2. Child Care:
3. Education:
4. Family Welfare:
5. Dowry Prevention:
6. Safety Problems:
7. Resource Preservation:
Ethical Aspects of Advertising:
It deals with moral standards of what is “right” or “wrong”. The advertiser must possess moral
duty and obligation towards the society in their advertising. The advertiser needs to ensure
ethical standards of advertisings are adopted such as avoiding false claims, misleading
customers etc.
1. Truth:
The advertiser needs to ensure to provide true information to the customer. It shall reveal
significant facts. The elimination of facts may mislead customers.
2. Avoid Misrepresentation:
The misrepresentation in advertising is a deliberate attempt to tell lie. The advertiser can
misrepresent the product attributes such as quality, price, benefits, features etc. For example –
The advertising which represents the particular product as number one in the market by
showing unreal statistics.
3. Avoid Illusion:
The advertiser needs to avoid the advertisements which claim illusion. For example – The
advertising promises the consumer that by using that product the person is going to reduce his
or her weight by ten kilo grams.
4. Avoid Misuse of Testimonials:
The advertiser needs to ensure the advertisings containing testimonials are limited. The
testimonials must reflect a genuine and truthful opinion or experience. For example – The
advertisements in which testimonials of film stars and sportsmen are used simply for sales
promotion needs to be avoided.
5. Substantiating Evidence:
All claims made by the advertiser in their advertisings must be backed with evidence. The
advertisers are responsible for the claims they make regarding to their products or services. For
example – If a pharmaceutical company claims the particular tablet reduces cold within half an
hour. The advertising must be backed with evidence.
6. Avoid Psychoactive Ads:
The advertising that has negative emotional impact on the target audience is called
psychoactive advertising. This type of advertising can create anxiety, low self-esteem and
aggression. If these emotions become intense it may induce harmful effect to the audience.
These types of advertisings are not illegal. It may be considered as unethical.
Legal Aspects of advertising-
At present in India, there is no central statutory agency or uniform legislation regulating the
advertising industry. The Indian advertising market as a whole is regulated and controlled by a
non-statutory body, the Advertising Standards Council of India (ASCI). In the absence of
uniform integrated legislation, it is necessary for advertisers to ensure that an advertisement is
in compliance will all local and national advertisement laws.
Products and Services Banned From Advertising
1) Tobacco Products (cigarettes, cigars, snuff, pipe tobacco)
2)- Human Organs
3)- Magical Remedies
4)- Services for Pre-Natal Determination of Sex
5)- Infant formula
6)- Prize Chits and Money Circulation Schemes
7)- Physicians
8)- Legal Services
9)- Products Related to Sexuality (condoms, ED drugs, etc.)

Short Questions

Ques1- Discuss the process of advertising?


Ans-
Process of advertising
The following are the steps involved in the process of advertising:
Step 1 - Briefing:
The advertiser needs to brief about the product or the service which has to be advertised and
doing the SWOT analysis of the company and the product.
Step 2 - Knowing the Objective:
One should first know the objective or the purpose of advertising. i.e. what message is to be
delivered to the audience?
Step 3 - Research:
This step involves finding out the market behavior, knowing the competitors, what type of
advertising they are using, what is the response of the consumers, availability of the resources
needed in the process, etc.
Step 4 - Target Audience:
The next step is to identify the target consumers most likely to buy the product. The target
should be appropriately identified without any confusion. For e.g. if the product is a health
drink for growing kids, then the target customers will be the parents who are going to buy it
and not the kids who are going to drink it.
Step 5 - Media Selection:
Now that the target audience is identified, one should select an appropriate media for
advertising so that the customers who are to be informed about the product and are willing to
buy are successfully reached.
Step 6 - Setting the Budget:
Then the advertising budget has to be planned so that there is no short of funds or excess of
funds during the process of advertising and also there are no losses to the company.

Step 7 - Designing and Creating the Ad:


First the design that is the outline of ad on papers is made by the copywriters of the agency,
then the actual creation of ad is done with help of the art directors and the creative personnel
of the agency.
Step 8 - Perfection:
Then the created ad is re-examined and the ad is redefined to make it perfect to enter the
market.
Step 9 - Place and Time of Ad:
The next step is to decide where and when the ad will be shown.The place will be decided
according to the target customers where the ad is most visible clearly to them. The finalization
of time on which the ad will be telecasted or shown on the selected media will be done by the
traffic department of the agency.
Step 10 - Execution:
Finally the advertise is released with perfect creation, perfect placement and perfect timing in
the market.
Step 11 - Performance:
The last step is to judge the performance of the ad in terms of the response from the
customers, whether they are satisfied with the ad and the product, did the ad reached all the
targeted people, was the advertise capable enough to compete with the other players, etc. Every
point is studied properly and changes are made, if any.

Ques2-Explain advertising agencies?Discuss their functions.


Ans-
Advertising Agency
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”.

Role of Advertising Agencies


1)-Creating an advertise on the basis of information gathered about product
2)-Doing research on the company and the product and reactions of the customers.
3)-Planning for type of media to be used, when and where to be used, and for how much time
to be used.
4)-Taking the feedbacks from the clients as well as the customers and then deciding the further
line of action.
Organizational Structure Of An Advertising Agency:
1. Group System: Under this system the writers, artist, media planners, buyers and other
specialists are assigned to a group of accounts. All are under the general direction of an
account executive or group head.
2. Departmental System: Under the departmental system, same types 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.
Compensation or Remuneration Method of Ad Agency
There are basically the following three methods of remunerating an advertising-agency in
practice in our country:
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.
2. Fee System: Under the system a certain fixed percentage (flat rate) on cost may be charged
from the client as
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%.
Function of Advertising Agency
The main function of a full-service advertising agency is 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.
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.
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.
5. Research Function: In this connection the advertising agency gathers and analyzes actual
information about the product, extent of market, competitor’s strategies and buyer’s habits etc.
6. Approval of the Client: As soon as the advertising copy etc. is prepared, the next function
of the advertising agency is to show the copy to his client and obtain his approval.
7. Evaluation Function: 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.
8. 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.

Ques3-Explain the significance of mobile marketing in present dynamic


environment?
Ans-
Significance of Mobile Marketing
Mobile phones have become an essential part of our daily lives, with over 5 billion mobile
phone users worldwide. The rise of mobile technology has transformed the way we consume
and share information, making it imperative for businesses to have a strong mobile presence.
Mobile marketing refers to advertising and promotional efforts that target consumers through
their mobile devices, such as smartphones and tablets.
The use of mobile phones has increased significantly in recent years, with over 70% of internet
traffic originating from mobile devices. Consumers spend an average of 3 hours per day on
their smartphones, making mobile a prime opportunity for businesses to reach their target
audience.
Significance of Mobile Marketing can be understood by following points-
a. Increased Mobile Usage:
Mobile devices are the preferred device for accessing the internet, making it easier for
businesses to reach their target audience. With most mobile devices having internet access,
companies can reach their target audience with a limited budget.
b. Location-based Targeting:
Mobile devices provide marketers with the unique opportunity to target customers based on
their location. Location-based advertising allows businesses to reach potential customers in
real-time, providing them with relevant and personalized information and promotions.
c. Enhanced User Experience:
A well-designed mobile marketing campaign can enhance the user experience and increase
brand engagement. Interactive features such as quizzes, games, and augmented reality can
increase brand awareness and loyalty, leading to increased conversions and sales.
d. Cost-effective:
Mobile marketing is a cost-effective way for businesses to reach a large audience. With the
majority of mobile devices having internet access, companies can reach their target audience
with a limited budget.
e. Increased Conversion Rates:
Mobile devices are the preferred device for making online purchases, with over 80% of internet
users purchasing their smartphones. A well-designed mobile marketing campaign can increase
conversions, increasing sales, and revenue.
f)-Testing & Improving
The advantage of digital marketing is the ability to optimize campaigns based on audience
feedback, and this is no different with mobile marketing. As with most forms of digital
marketing, campaigns need to be monitored frequently and improved through A/B and
multivariate testing
g)-Easy Sharing
Compared to other marketing methods, mobile marketing has the most viral potential. People
generally use their phones for sharing. They share photos, videos, memes, and everything else
with a few quick taps on their screen. With some testing, you are better able to create viral
content that appeals to your audiences. When you strike a chord with mobile marketing, users
find it far easier and are more inclined to tap the “share” button or tag someone who might be
interested.
h)-Better Responses
Mobile ads get better responses in the consideration stage than other ads. While people are
more likely to convert and buy on desktop, they aren’t going to be seeing your ads as often
while they’re still passively considering it. Mobile content enables your business to stay in
peoples’ minds as they go about their days.
i)-Creativity
Mobile ads offer lots of room to get creative and go beyond the boundaries of what a traditional
ad might be. For example, a banner ad might work fine on a platform like LinkedIn, while the
Instagram campaign might need a sound-off video, the Snapchat campaign could require a
special filter, and the TikTok iteration might work best with a UGC-style ad and branded
hashtag campaign. There are so many options.

Ques4-Explain the following-


1)-viral marketing
2)-Types of print media
3)-persuasive and reminder advertising
Ans-
1)-Viral Marketing-
Viral marketing seeks to spread information about a product or service from person to person
by word of mouth or sharing via the Internet or email. The goal of viral marketing is to inspire
individuals to share a marketing message with friends, family, and other individuals to create
exponential growth in the number of its recipients.
In the case of viral marketing, "viral" refers to something that spreads quickly and widely
across its audience. Viral marketing is a deliberate enterprise, though the distribution of a
message happens organically. As such, social media provides the perfect ecosystem for viral
marketing, though it has its roots in traditional word-of-mouth marketing.
Example of Viral Marketing
A frequently used example of early viral marketing is Hotmail, the free web-based email service
launched in 1996 that included in its users' outgoing messages an embedded advertisement
and direct link inviting recipients to sign up for an account. This practice led to the fastest
growth among user-based media companies at the time.

2)-Types of print media-


a. Newspapers
For most of the 20th Century, newspapers were the dominant mass media form of information
sharing, particularly in the fields of economics and politics.
b. Magazines
Magazines are printed periodicals, typically released on a monthly or bi-monthly basis. They
are usually geared towards a specific intended audience, and they often have a specific focus or
niche.
c. Books
For centuries, books have been an important source of both entertainment and education. The
first book is thought to have been invented by the Ancient Egyptians, who used papyrus scrolls
to record their history and myths.
d. Billboards
Billboards are signs, often advertising signs, that are plastered in public thoroughfares
including highways and popular shopping strips.
e. Posters
Posters, like billboards, are used to advertise products and brands in public spaces. They are
often seen in spaces such as bus shelters, on the sides of buildings, in cinema foyers, and in
subways.
f. Flyers
Flyers are handheld advertisements that are are typically distributed in public places such as
on street corners or in bus shelters.
g. Catalogs
Catalogs are printed media that demonstrate and promote the inventory of a shop. They
typically contain product photos, descriptions, pricing information, and contact information.
Many businesses also use catalogs to showcase new products or seasonal offerings.
h. Coupons
Coupons are a type of promotional discount offered by retail stores or manufacturers. As print
media, they are typically distributed through newspapers, direct mail, or on flyers.
i. Yearbooks
A yearbook is a published compilation of photographs and other images typically documenting
the events of a school year.
3)- Persuasive Advertising and Reminder Advertising

Persuasive Advertising
Persuasive advertising is highly competitive when there are similar products in the
marketplace, and products are competing for their share of the market. In this situation, the
winning product will differentiate itself from the competition and possess benefits that are
superior to, or compete strongly with, the competition. Comparative approaches are common
place, either directly or indirectly.
Reminder Advertising
Reminder advertising reinforces previous promotional information. The name of the product,
testimonials of past customers, public response, and sales techniques are repeated in the
hopes of reminding past customers and garnering new ones. It is used to keep the public
interested in, and aware of, a well-established product that is most likely at the end of the
product life cycle. Coca-Cola: Coca-Cola is an established brand which uses reminder
advertising.

Ques5-Discuss the emerging concepts in marketing communication?

Ans-

EMERGING CONCEPTS IN MARKETING COMMUNICATION

1)-Programmatic Advertising

Programmatic is buying digital advertising space automatically, with computers using data to
decide which ads to buy and how much to pay for them. Programmatic is constantly evolving.
From online ads and video to digital out-of-home, streaming, voice and TV, the sheer number
of options can make it feel like an impenetrable process to understand.

2)-Native advertising
Native advertising is a type of advertising, mostly online, that matches the form and function of
the platform upon which it appears. In many cases, it manifests as either an article or video,
produced by an advertiser with the specific intent to promote a product, while matching the
form and style which would otherwise be seen in the work of the platform's editorial staff. The
word "native" refers to this coherence of the content with the other media that appears on the
platform.
3)-Video advertising-
The term video advertising encompasses online display advertisements that have video within
them, but it is generally accepted that it refers to advertising that occurs before, during and/or
after a video stream on the internet.
4)-Video ad formats
According to Interactive Advertising Bureau (IAB) guidelines, there are three types of video ad
formats:
i)-Linear video ads - the ads are presented before, in the middle of, or after the video content is
consumed by the user, in very much the same way a TV commercial can play before, during or
after the chosen program.
ii)-Non-linear video ads - the ads run concurrently with the video content so the users see the
ad while viewing the content.
iii)-Companion ads - commonly text, display ads, rich media, or skins that wrap around the
video experience.
5)-Mobile advertising
Mobile advertising is a form of advertising via mobile (wireless) phones or other mobile devices.
It is a subset of mobile marketing.
6)-Digital Advertising
Digital advertising refers to marketing media that is digitally displayed. Digital advertising
technology exists on the Internet, on smart phone and hand-held media devices, and even on
automobiles and billboards. Businesses and product manufacturers use digital advertising to
build or maintain a brand image and market products and services to consumers.
7)-Sponsorships
According to IEG(Independent Evaluation Group):
Sponsorship is a cash and/or in-kind fee paid to a property (typically in sports, arts,
entertainment or causes) in return for access to the exploitable commercial potential associated
with that property.
To sponsor something is to support an event, activity, person, or organization financially or
through the provision of products or services. A sponsor is the individual or group that
provides the support.
8)-Corporate Advertising
Corporate Advertising a form of institutional advertising focusing not on a particular product or
product range but on the organization itself. The primary purpose is promoting the name,
image, personnel, or reputation of a company, organization, or industry.
The main objective of corporate advertising is to improve the image of the company and make it
a more desirable workplace at times and also a desirable corporation to buy from.
9)-Advertorials and infomercials
In printed publications, the advertisement is usually written in the form of an objective article
and designed to look like a legitimate and independent news story. In television, the
advertisement is similar to a short infomercial presentation of products or services. These can
either be in the form of a television commercial or as a segment on a talk show or variety show.
In radio, these can take the form of a radio commercial or a discussion between the announcer
and representative.
10)-Public Relations
Public Relations is defined as a management function which identifies, establishes, and
maintains mutually beneficial relationships between an organization and the public. Public
relations consider multiple audiences (consumers, employees, suppliers, vendors, etc.) and
uses two-way communication to monitor feedback and adjust both its message and the
organization’s actions for maximum benefit. It is used to generate goodwill for the organization.
The main objectives of public relation is:
 To remove misunderstanding, doubts, confusion, and wrong impression in the minds of
different social groups
 To maintain good corporate image.
 To have the public support to the future of the company.
 To fulfill social responsibility.
Ques6-Explain the role of E-commerce in IMC
Ans-
Role of E-Commerce in Marketing Communication:
E-commerce Plays the same role just like a physical store. Consumers come into your e-
commerce store, search for products and place orders without having any issues. Once the
purchase is done, the merchant ships the product to them and records consumer feedback. E-
commerce has escalated during the COVID-19 pandemic. The Function of E-commerce and
Both (consumers and the owner) have no choice but to give up this trend of shopping. The
functions of E-commerce businesses only require spending a little money as compared to the
brick and mortar stores. Small businesses enable online businesses to survive in the
pandemic.
Online business is booming day by day since the pandemic, And now its become our priority to
shop online for instant delivery at our doorstep or we can avail the more convenience. E-
commerce has increased rapidly and now its become a key factor in business. It is a solid
catalyst for business or economic development. The expansion of E-commerce and the
functions of E-commerce business could lead to inflation through the competition around E-
commerce.
Below are few point to understand the role of E-commerce in IMC-
1)-To buy/Sell Products and services
Buying and Selling products by using the platform of E-commerce are increasing worldwide.
It’s very easy and cheap compared to the physical store. E-commerce marketplace can also
help to track customer data, manage business inventory and make a custom sales page for
record.
2)-To find Unique Product
Functions of E-Commerce has a vast range of products in one category. There are such huge
product ideas over the internet. Customers can compare the price before buying the product.
Shoppers can also check the review of that the particular product that he is supposed to buy.
So this way of researching before buying a product gives you more leverage in pin product
searches.
3)-To get the Best Deals
Functions of E-Commerce provide you with a platform of products to buy with a variety of
choices at competitive prices and ship to your doorstep. E-commerce platform gives you the
facility to track your customer behaviour and improve customer services. To get the best deals
and offers, there are a few things to keep in mind in an E-commerce store. Shoppers should
always check the seller’s rating, shipping policy and product policy etc. This will give you an
idea about the authenticity of the seller and the product too.
4) To save the Time and Money
This is one of the most important functions of E-Commerce is to save standing and in the long
queue. But the E-commerce platform gives you to buy things of your choice in a just few
minutes. You don’t worry about thinking of the traffic which you face to go the store.
5)-To Give a Review of The Product
When we buy something from an E-commerce platform Functions of E-Commerce and then use
that product but somehow we did not like it or the product is not good so we can change and
get our money back in simple steps. But in case the product is nice so we can write a review
below the product. It may help others before buying that product. whatever you feel about that
product just write the truth over there. This is the best function of E-commerce.
6)-To purchase Anything Globally
E-commerce platform allows you to purchase products with the Functions of E-Commerce all
around the world in a few steps you can get at your place. This is advantageous for both
customer and the seller. When a customer could not find anything in their local area so this
platform helps them to buy things before any further delay. E-commerce Sellers have a vast
area to sell their products and services. They can sell all over the place or location. Both are
taking advantage of this E-commerce platform.
Ques7-what are the challenges faced by IMC in today’s competitive
market?
Ans-
Challenges faced by IMC
The cause behind that is diverse challenges confronted with the aid of the enterprise at some
point in the implementation of IMC. Some of them are as follows:
1) Top Management Support
Implementing IMC entails several changes to an organizational degree, which is only feasible
with the company’s consent. Hence, pinnacle control performs a crucial role in the successful
implementation of IMC. As it is one of the challenges in IMC. Sometimes, pinnacle management
won’t permit the IMC system implementation due to ego troubles or one-of-a-kind viewpoints.
2) Organizational Barriers
The company’s organizational shape acts as any other venture in implementing IMC. Typically,
groups consist of several departments with responsibilities, while IMC calls for a bendy
hierarchical organizational structure. A flexible shape facilitates the corporation to comprise all
of the verbal exchange characteristics in a centralized way. Many groups are nevertheless
pursuing Strategic Business Units (SBUS) strategy and a valuable method, where each unit
makes their selections. In this scenario, it will become hard for a business enterprise to
combine its conversation program.
3) Cultural Factors
The organizational lifestyle may also avert the implementation of IMC. For success, marketing
communication, cooperation and coordination among the employees is vital. If the
organizational tradition is unwilling to undertake the changes, then this can reason problems
inside the implementation system. Mainly, government-controlled corporations are likely to
refrain from undertaking any changes.
4) Functional Specialization
The specialized function of personnel additionally acts as a barrier in integrating advertising
verbal exchange procedures. The IMC concept states that the contributors to the pinnacle
management of any corporation have to be conversation generalists. The idea of IMC
encompasses a broader view of the marketplace, customers, competition, and community as
whole. Regarding the IMC concept, agencies are schooling their personnel to become
professionals in a particular field. But, the specialists rarely communicate with other
purposeful businesses. All the practical businesses paint in the direction of their objectives
following a specific method within a restrained budget.
5) Decentralization
Decentralization is the procedure of redistributing the power and authority of choice-making
powers amongst all the personnel so that they may be responsive to customers’ needs
immediately. Various control theories also observe the idea of decentralized decision-making as
opposed to the conventional one, wherein the selection is taken with the aid of pinnacle
management with the aid of the top-down technique it receives conveyed at all degrees of
enterprise.
Ques8-“Marketers don’t create needs, needs preexists marketers.”dicuss
the ethical issues related to this statement?
Ans-
“Marketers don’t create needs, needs preexists marketers.”
It is controversial issue, both those who believe that marketing create needs and those who
believe that marketing does not create needs but only satisfy it have real examples! The
marketing function is to search needs and then satisfy it! But the issue that some companies
create needs, so we should not call it Marketing, because none of the marketing function is
creating needs, therefore we should call it something else, someone says it should be called
Ultra Marketing! Or New Marketing! AS a marketer company cannot create needs because
needs are the state of felt deprivation but it can identify customer needs and create value for
them. The marketing philosopher Philip Kotler says: “Marketers do not create needs:
Needs preexist marketers, marketers along with other societal factors, influence wants.
Marketers might promote idea that Mercedes would satisfy a person’s need for social
status. They do not, however, create the need for social status”. But now a days
companies do more! They educate people and give them reason to buy their products and this
is what people might call it “creation of needs” people purchase something when they need it, if
they think they do not need the product they may not purchase it. How many people today in
India need I-pod? How many people really need Mobile + Internet + Camera + TV all in one set?
How many people really need to go to space? They don’t need it at all, but they go. Can we call
it marketers created their needs? Creation of need is not the function of marketing, so we
should to accept a more powerful tool than marketing, and we should search how to give it a
suitable name. Marketers will advertise for items which the consumers seem to be wanting.
These advertisements will make the product seem more important to have and make the
product seem to be a need than a want. Established firms, it's essential to be able to satisfy the
needs of customers. As they say, a satisfied customer is a profitable one. To be able to satisfy

the customer's needs, the firm thus tries to understand it's customer's needs and then attempt
try to deliver it. On the other hand, new firms or marketing these However, Days also attempt
to 'create' needs. By doing so, the customer have a reason to buy the product. The basic reason
customers purchase anything is they need it. However if customers have a perception that
they do not need it, they may not purchase the product. Hence marketing these days have
evolved to create needs for customers. Marketing these days does not only mean existing
customers, which have needs but also non existing customers, which have no needs.
Conclusion
Since there doesn’t seem to be a definitive answer for the question of creating need by the
marketers. We may conclude the issue as under:
i)-Customers and prospects have needs.
ii)-Marketing identifies or uncovers those needs through market research (surveys, focus
groups, and competitive analysis).
Then its marketing's job to expose (or exploit?) those needs and communicate the value of
potential solutions. New product features and benefits help address needs. Emotion then
creates desire (Just look at the company Apple - do we really all "need" an iPad? We certainly
all desire one.

Ques9-“Advertisment is creative only if it sells”.Comment.Also explain


4M’s of advertisng?(MBA 3rd sem 2019-20,AKTU University)
Ans-
“If it doesn’t sell, it isn’t creative,” or so said David Ogilvy, the father of modern
advertising. What he meant was simple. Marketing and advertising exist to sell, period.
Creativity is great. Anything can be designed to look or function uniquely. What matters is
whether that unique look or function is valued by a relevant segment of customers. Creativity
is subjective and should be measured by whether it achieved its desired ends. The desired end
of marketing is revenue growth. Creative marketing without revenue growth isn’t creative, it’s
just a failure.
Effective marketing doesn’t have to “break the internet” or be “on fleek.” It must only sell.
That’s it. Everything has been done to death in every industry. Chances are, your product and
company are like some other product or company either in your area, the country, or the
world. What sets companies apart is their ability to effectively communicate their value. There
usually isn’t some clear-cut reason for choosing one company over another similar company.
Taste is subjective. Why buy Coke over Pepsi? Are they really that different? They want you to
think so. Why buy an Apple iPhone over a Samsung? Both essentially do the same thing. Both
feature the same apps. Both facilitate texting, calling, snapping, tweeting, and whatever else.
The difference lies in how each company communicates its value.

So why the rant about marketing that sells versus “creative” marketing that doesn’t?
There are countless examples of marketing missteps, controversies, and gaffes that worked out
favorably and sometimes not so favorably for companies. Let’s look at a few of the memorable
ones:

Apple’s 1984 ad debuting the Macintosh computer was controversial when it aired and deemed
likely to be ineffective before it ever hit the airwaves. Apple’s own board of directors didn’t even
like it. Today, it’s widely considered the most effective Super Bowl ad in history.
The 7 M’s to of Advertising are:
1-Market(s): Targeted Customers
2-Mission: Marcom Objectives
3-Message: Creative Theme
4-Methods: Blend Communication Techniques
5-Media: Channels of Communication
6-Money: Budget
7-Measurement:Results Analysis

Ques10-Disciuss the difference between advertising and sales


promotion? ?(MBA 3rd sem 2010-11,AKTU University)

S.no Basis for Advertising Promotion


comparison
1 Definition . One-way communication of a A Promotion usually
persuasive message by an involves an
identified sponsor, whose purpose immediate incentive
is non-personal promotion of for a buyer
products/services to potential (intermediate
customers. distributor or end
consumer). It can
also involve
disseminating
information about a
product, product
line, brand, or
company.
2 Purpose Brand Building, Continuity, Brand Attract new tries or
switch, Switching back brand switchers,
Reward loyal
customers, Increase
sales and repurchase
rates.
4 Strategy Promotional strategy Marketing strategy
5 Effective It is effective in Long term It is effective in Short
term
6 Results Results are generally slow, can be Results are often
seen over time. Instant.
7 Cost involved It is highly expensive It is cost effective
8 Best suited for It is best suited for medium and It is for all the
big enterprises enterprises
9 Aim It aims to attract the ultimate It aims to attract not
consumers only consumers but
retailers, wholesalers
and sales forces
10 Nature of appeal to the Advertising is emotional in nature Sales promotions, on
consumer and the objective is to create an the other hand, are
enduring brand image. Perfumes, unemotional in their
makeup and jewelery need approach. A cents-off
imaginative advertising to create coupon for cereal
the allure needed to sell these appeals to the
products. consumer's rational
mind and is a sales
promotion. The
consumer weighs the
price of one cereal
brand versus others.
11 Sales Assumption that it will lead to Directly related to
sales sales.
12 Example Giving an advertisement in the Giving free products,
Newspaper or TV about the major coupons etc.
products of a company

Multiple Choice Questions-


1. _________ can be defined as the way by which organizations attempt to inform, convince and
remind customers indirectly or directly about the brands and products they offer.

a) Marketing communications
b) Marketing plans
c) Marketing strategies
d) None of the above

ANSWER: a) Marketing communications

2. A macro-model in the communication process includes __elements.

a) Nine
b) Ten
c) Seven
d) None of the above
ANSWER: a) Nine

3. Any paid type of non-personal promotion and presentation of goods, services or ideas by an
identified sponsor is

a) Sales promotion
b) Direct marketing
c) Events and experiences
d) Advertising
ANSWER: d) Advertising

4. Numerous forms of short-term incentives to promote trial or buying of a service of product is

a) Sales promotion
b) Direct marketing
c) Events and experiences
d) Advertising
ANSWER: a) Sales promotion

5. Company sponsored programs and activities planned to create special brand related
interactions is

a) Sales promotion
b) Direct marketing
c) Events and experiences
d) Advertising
ANSWER: c) Events and experiences

6. Several programs planned to protect or promote a company's image or its products is known
as

a) Sales promotion
b) Direct marketing
c) Events and experiences
d) Public relations and publicity
ANSWER: d) Public relations and publicity

7. The use of email, fax, internet or telephone to communicate with specific prospects and
customers is

a) Sales promotion
b) Direct marketing
c) Personal selling
d) Advertising
ANSWER: b) Direct marketing

8. The online programs and activities designed to engage prospects or customers and indirectly
or directly generate awareness, enhance image or support sales of services and products is

a) Interactive marketing
b) Direct marketing
c) Personal selling
d) Advertising
ANSWER: a) Interactive marketing

9. People-to-people oral, electronic or written form of communications that associate with


experiences or merits of buying or using services or products is

a) Interactive marketing
b) Direct marketing
c) Personal selling
d) Word-of-mouth marketing
ANSWER: d) Word-of-mouth marketing

10. The face-to-face interaction with prospective buyers for the objective of answering
questions, procuring orders and making presentations is

a) Interactive marketing
b) Direct marketing
c) Personal selling
d) Word-of-mouth marketing
ANSWER: c) Personal selling

11. Billboards, motion pictures, audiovisual material, print and broadcast ads are examples of

a) Sales promotion
b) Direct marketing
c) Events and experiences
d) Advertising
ANSWER: d) Advertising

12. Fair and trade shows, exhibits and demonstrations are examples of:
a) Sales promotion
b) Direct marketing
c) Events and experiences
d) Advertising
ANSWER: a) Sales promotion

13. Street activities and sports are examples of

a) Sales promotion
b) Direct marketing
c) Events and experiences
d) Advertising
ANSWER: c) Events and experiences

14. Seminars, Annual reports, publications and press kits are examples of

a) Sales promotion
b) Direct marketing
c) Events and experiences
d) Public relations and publicity
ANSWER: d) Public relations and publicity

15. Catalogs, blogs and websites are examples of

a) Interactive marketing
b) Direct marketing
c) Both a and b
d) None of the above
ANSWER: c) Both a and b

16. Chat rooms are an example of

a) Interactive marketing
b) Direct marketing
c) Personal selling
d) Word-of-mouth marketing
ANSWER: d) Word-of-mouth marketing

17. Fairs and trade shows are an example of

a) Interactive marketing
b) Direct marketing
c) Personal selling
d) Word-of-mouth marketing
ANSWER: c) Personal selling

18. From the view of creating brand equity, marketers need to be

a) Media sensitive
b) Media neutral
c) Media biased
d) None of the above
ANSWER: b) Media neutral

19. In macro-model of the communication process there are __ parties and ______
communication tools.

a) 2, 2
b) 2, 3
c) 3, 2
d) None of the above
ANSWER: a) 2, 2

20. Micro-models of marketing communications focus on ______particular responses to


communications.

a) Customers
b) Organization
c) Both a and b
d) None of the above
ANSWER: a) Customers

16) All of the following are


reasons that marketers are
losing confidence in television
advertising
EXCEPT which one?
A) TV ad spending is rising at a
slower rate than online ad
spending.
B) TV and other mass media
still capture the lion share of
promotional budgets.
C) Many viewers are using
video on demand and TiVo-like
systems.
D) Younger consumers are
using different media.
E) TV audience size is on the
decline.
Answer: B
Diff: 3 Page Ref: 404
AACSB: Communication
Skill: Concept
Objective: 14-2
17) Companies often fail to
integrate their various
communications to consumers
because
________.
A) historically, consumers have
been able to distinguish
between message sources
B) advertising departments are
reluctant to work with public
relations professionals
C) communications often come
from different parts of the
company
D) personal selling and sales
promotion are in direct conflict
E) they have failed to
understand the concept of brand
contact
Answer: C
Diff: 2 Page Ref: 405
AACSB: Communication
Skill: Concept
Objective: 14-2
18) All too often companies
today have failed to ________
their various communications
channels, resulting in a
hodgepodge of communications
to consumers.
A) promote
B) rechannel
C) integrate
D) open
E) verify
Answer: C
Diff: 1 Page Ref: 405
AACSB: Communication
Skill: Concept
Objective: 14-2

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