Module Wise Advertisement and Sales Management
Module Wise Advertisement and Sales Management
Meaning of Advertising
The meaning of advertising is described below;
1. It is a mass communication reaching a large group of consumers,
2. It is non-personal communication, because it 1s not delivered by
an actual person, nor addressed to a specific person.
Definitions
2. Mass Communication
The basic purpose of advertising is to give information, to attract attention, to create
awareness and finally to influence the buying behavior of consumers. It facilitates mass
communication of products and services offered by a firm. It helps in large scale marketing
of goods and services.
3. Dependence on Media
For advertising, advertisers use various media favored by the target audience. Traditionally
media such as television, radio, newspaper were used for advertising. But in the modern
times, media such as internet and mobile phone are also used by the advertisers. Social
networking sites are the focus of most of the companies for online advertising.
4. Paid form of Communication
Advertising is a form of paid communication. The firm has to payto the media for advertising
its products.
5. Non-Personal Presentation
Advertising is non-personal in character as against salesmanship which is personal (face to
face communication). In advertising, the message is communicated to all and not a particular
individual.
6. Existence of a Sponsor
Sponsor is a person who pays for the advertisement. He identifies and discloses the ideas,
message and information to be advertised.
7. Identifiable
In advertising, the sponsor (advertiser), message and presentation can be recognized by
receivers and customers.
8. Target Oriented
Specific market or specific segment of consumers can be selectedfor advertising. Children in
the case of toys and ladies in the case of cosmetics are few examples for specific market
segments. The selection of a specific market is called target market. Advertising becomes
effective when it is target oriented. The waste in advertising can be minimized through such
target oriented advertising.
11. Creativity
Creativity is the essence of advertising. It is considered as a tool for presenting a product in
an artistic, attractive and agreeable manner. They innovate ,introduce and new techniques of
advertising.
12. Controlled
The time, place, message and direction of an advertisement are controlled by the advertiser.
Objectives of Advertising
2. Trial Objectives
Companies usually work for this objective in the introduction stage of a product.
Advertisements in this stage try to convince the customers to buy the new product.
Companies use attractive ads to catch the attention of the customers and purchase the
product for
trials.
3. Continuity
This objective is concerned about maintaining the existing customers. Companies usually
keep on bringing changes in their ads that the existing buyers keep buying their products.
5. Getting Attention
Getting public attention is a major objective of advertising, Port his, highly readable prints,
colors, pictures, Images, drawings, diagrams, photos of celebrities, statements and captions
are used by the advertisers. Different types of sounds and songs are also used by
the advertisers in radio and television ads to attract the attention of the people.
8. Brand Switch
This objective is maintained by companies who want to attract customers of their
competitors. They adopt special advertisement strategies to influence the customers of the
competitors to switch
their existing brands.
9. Reminds the Public (Reminder)
Advertisement reminds the public about the existence of products in the market. It tries to
reinforce the previous sales promotion by keeping the name of product in the market. This
influences the consumers in their purchase decisions.
Importance of Advertising
;
1. Important to Customers
Advertising plays a very important role in the life of customers. Itis important for the
customers in the following ways;
2) Promotes Choice
People follow different life styles and have different values and needs. A product that is right
for one may not be right for another .Advertising is required to assist customers to choose
products as their tastes and preferences. Advertising gives customers all relevant
information regarding a product such as quality standards, price special offers. This
select the product that matches with their preferences.
Importance of Advertising
1. Important to Customers
Advertising plays a very important role in the life of customers. It is important for the
customers in the following ways;
2) Promotes Choice
People follow different life styles and have different values and needs. A product that is right
for one may not be right for another. Advertising is required to assist customers to choose
products as per their tastes and preferences. Advertising gives customers all relevant
information regarding a product such as quality standards, price and special offers. This
helps customers to compare the products and select the product that matches with their
preferences.
3) Convenience
Advertising makes shopping easy by reducing the time and effort involved in shopping.
Through advertising, people are aware of the source and availability of different products
and need not spend much time in search of the store and the product.
4) Education of Consumers
Advertising provides education and knowledge to consumers about new products and their
diverse uses. Consumers get the benefit of better advice in safe and proper use of products.
2) Product Information
Advertising is required to give consumers all the relevant information of a product. It is used
to inform and educate buyers on the various aspects of handling and using the product. So
advertising plays the role of information and education.
3) Demand Creation
Advertising persuades customers to buy a product by informing them about its qualities and
benefits.
4) Price Information
A company may produce a very high quality product with additional features as compared to
competitors. In such a case, price place refers to physical distribution and the stores where
the mods are available in the market. Through advertising companies.
6. Managing competition
Advertising can play a significant role to put forward the claim of the company, and to resist
the claims of competitor through effective advertising companies can face competition and
develop brand image.
7. Important in Packaging
The main purpose of packaging le protection of the product during transit, and preservation
of quality and quantity, But packaging performs an advertising nineteen also. Companies
take lot of efforts to develop and design attractive packages to attract the attention of the
customers.
1) Employment Generation
Advertising provides direct employment to a large number of people engaged in designing,
writing and broadcasting advertisements. Indirectly, advertising increases employment
opportunities by increasing the volume of production and distribution.
4) Incentive to Work
Advertising is a great motivating force. People are induced to work hard and earn more to
buy new products brought to their knowledge through advertising.
6) Entertainment
Advertising also provides entertainment the public. Many sponsored programs on radio and
television are very popular due to their entertainment and artistic nature.
scope of Advertising
1. Goal setting
Understanding and defining the specific objectives of advertising’s the base of advertising All
ads try to meet the defined objectives advertising The objectives of advertising may be
informative persuasive, reminder trial, continuity, switching back, facing competition,
attention scolding, brand switch, prompting action of barring new entrants Spending money
on advertising without clear goal is a waste of money, time and effort. It may also harm the
business by communicating wrong message to the customers. Bo goalsetting is an important
area of advertising,
2. Message Creation
Message is considered as the flesh of advertising. It attempts to communicate the audience
what the advertiser wants through words, images or sound. Message reveals the features,
uses and benefits of the product.
3 Mass Communications
Message creation is meaningless, if it is not communicated to the targeted audience. Mass
communication is the intrinsic part of advertising. It refers to the mass generation and
dissemination of product related messages by the company to a large, heterogeneous and
anonymous mass of people in the target market.
4.Media Selection
The effectiveness of a well-designed advertising message depends upon when and where it
is communicated. Advertising is effective when it is made at the right time through the right
medium. Conveying right message through a wrong medium at the wrong is a waste of
resources. Commonly used media for advertising are T.V., radio, websites, newspapers,
magazines, bill-boards, hoardings etc.
5. Advertising Agency
An advertising agency is a specialized institution which offers professionalized advertising
services to the clients. The business of an ad agency is creating, planning and managing
advertisement activities on behalf of its clients.
2. Information
Advertising facilitates the dissemination (delivery) of relevant information a firm wants to give
to its customers. It includes informing the market about the specialties of the brand, price
and special offers.
3. Persuasion
Persuasion is influencing and encouraging the people to buy theproduct offered by a firm.
Regular advertisements of a brand indifferent media influence the buying decisions of
consumers. Firms adopt powerful and creative ads for persuading the customers in thetarget
market.
4. Creation of Demand
It is one of the most powerful functions of advertising that it makes the customers to think in
favor of a brand. Effective advertising strategies create demand for a brand. It builds interest
and increases the confidence of the customers to buy a particular brand.
5. Retention of Customers
Advertising continuously reminds the customers about the brand. Seasonal offers, special
discounts and customized offers are informed through advertisements in different media.
This attracts the new customers to the brand and encourages the existing customers to
repeat purchase.
4) Protecting the Interests of the Manufacturer The next function of advertising is to secure
the interests of the manufacturer by giving good publicity of the trademarks, brand names,
general appearance of the products, style of packing etc. These are the exclusive rights of
the manufacturer and others are not permitted to copy or imitate these properties owned by
the manufacturer of a brand. Advertisements generate public attention, recognition and
acceptance of these factors. As a result, it would be difficult for the competitors to develop
substitutes and unauthorized duplication for the nationally or internationally advertised
products.
4. Increasing Responsibility
Advertisements create a feeling among the management and the start of a company that
they are responsible to the public. So they try to miall their promises made through
advertisements. They are likely to be more responsible to improve the product in all aspects,
and give public more value for their money,
1. Economic Functions
Advertising is primarily an economic process, which has a significant impact on the market
players and economic agents, affecting both the firm and the consumers. It is considered as
an economic tool to influence the supply and demand forces of the market. Some of the
important economic functions of advertising are described below;
1) Advertising creates demand and increases the sales of products and services. It
supports production and the exchanges of goods and services in the economy. Thus,
it contributes to the economic development of the nation.
2)
2) Advertising leads to increased production of goods and services, and thereby promote
employment opportunities in a country
3 Advertising is one of the main sources of revenue for all types of media in a country.
2.Social Functions
3. Psychological Functions
Few psychological functions of advertising are as follow;
1) Advertising leads to the formation of certain types of thought among people.
2) It changes the attitude of customers towards a brand which leads them from brand
awareness to purchase and repeated purchases.
4. Communication Functions
Advertising conveys relevant product related messages to the prospective buyers. These
messages critically influence their buying decisions. Some of the major communication
functions of advertising are as follows;
1) Advertising communicates the details of brand such as name, 0features, price, offers,
store locations and other relevant information to the target market.
2) Advertising transforms product information in such a manner that it is clearly recorded in
the minds of the customers.
3) It informs the consumer the effective ways of using a product (user instructions).
4) It clearly informs the customer to identify the trademark and logo of the product to avoid
duplicate brands.
5) it gives valuable information to the sales personnel and retailers about the important
aspects which are to be highlighted while canvassing the customers.
6) A firm sends product related messages to the customers through advertising. This will
result in responses from the customers in the form of product enquiries and purchases.
Customer responses as a result of advertising give valuable information for managing the
inventory (stock) and sales of the dealers (wholesalers and retailers) of a product.
1. Product Advertising
It is concerned with conveying Information about and selling a product or service. Most
advertising is product advertising, designed to promote the sale or reputation of a particular
product or service that the organize advertising is of three types, viz.
1) Informative Advertising
This form of advertising is used for the promotion of a new type of product to develop an
initial demand he is usually adopted during the introductory stage of the product lifecycle.
2) Persuasive Advertising
Persuasive advertising is followed to develop demand for particular product or brand, it is a
type of promotion used in the growth and maturity period of the product life cycle.
3) Reminder Advertising
The goal of this type of advertising is to reinforce previous promotional activity by keeping
the brand name in the target market, It is used in the maturity period as well as throughout
the declining phase of the product life cycle.
1) Local Advertising
This type advertising is adopted by companies which restrict their marketing efforts to a
limited area. For example, advertising covering particular state region
2) National Advertising
Some companies select the entire nation as the target market for their products. In such
situation, they adopt a nationwide advertisement campaign. This is known as national
advertising
3) Global Advertising
This type of advertising is required when the marketing efforts of a company crosses the
geographical boundary of a nation Multinational companies treat the whole world as their
market.
3) Trade Advertising
This is done by the manufacturer to persuade wholesalers and retailers to sell his goods.
Different media are chosen by each manufacturer according to the nature of the product and
the market. It is designed for wholesalers and retailers who can promote and sell
the product concerned.
4) Professional Advertising
This advertising aims at influencing the professionals in particular trade or branch. These
professionals recommend or prescribe the products to the ultimate buyer. Professionals like
doctors, engineers and architects are the prime targets of such manufacturers,
5) Financial Advertising
Banks, financial institutions, and corporate firms use advertising to collect funds from
markets. They publish prospectus for facilitating the subscription of the shares by the public.
1) Audio Advertising
It is done through radio, Public Address System (Microphone, Amplifier and Loud Speakers)
and vehicle announcements.
2) Visual Advertising
It is done through store displays, flux boards, sign boards, leaflets, cloth banners, brochures,
electronic hoardings, simple hoardings, running hoardings etc.
3) Audio-visual Advertising
It is done through cinema slides, movies, video clips, Advertisements etc.
1. Outdoor Advertising
It covers advertisements through billboards, stalls (best example is stalls or booths in busy
streets by mobile phone companies), and several events and tradeshows organized by the
company.
2. Broadcast Advertising
It includes advertisements over Television, Radio and the Internet
5. Celebrity Advertising
Most companies use the popularity and fame of film stars, sports stars and other public
figures in advertising. Companies choose certain celebrities as their brand ambassadors.
For example, film star Mammootty' is the brand ambassador of the South Indian Bank'.
Merits of Advertising
Merits of advertising can be studied under five heads;
1. Merits to Manufacturers
The following are some of the important merits gained by the manufacturers from
advertising;
1) Large scale production and marketing
Advertising is useful tool of market communication. It gives information to consumers and
encourages them to purchase more. Manufacturers can expand their production as a result
of higher market demand created through advertising.
6) Facing competition
Manufacturers can face market competition effectively and can make his products popular
through advertising. He can remove misunderstanding among consumers about his products
through appropriate advertising.
7) Goodwill builder
A manufacturer can build up goodwill and good image in the business world and also among
the consumers through advertising The social welfare programs and community service
activities can be given wide publicity through advertising. The progress of the Organisation
can be brought to the notice of the public through advertising.
Merits to Middlemen
1) Easy sale of the products is possible since consumers are aware of the product and its
quality.
2) It increases the rate of the turn-over of the stock because demand is already created by
advertisement.
3) It supports the selling activities.
4) It ensures more economical selling because selling costs are reduced.
5) It gives them all relevant information of products.
3. Merits to Salesmen
Advertising creates proper background for selling a product in the target market. It gives
advance information about the product to the prospective buyers.
The following are some of the major merits of advertising to salesmen;
1) It is easy for the salesmen to introduce a product to the consumers because the
manufacturer has already advertised it informing the consumers about its features and
benefits.
2) Advertising prepares necessary ground for a salesman to begin his work effectively.
3) The contact established with the customer by a salesman ismade permanent through
effective advertising because customer is assumed of the quality and price of the product.
4. The salesman can evaluate the effectiveness of advertising when he make direct contact
with the consumers,
Merits to Consumer
2) Acts as reminder
Advertising acts as a reminder to consumers. It reminds them about the products to be
purchased.
3) Comparison
Advertising provides an opportunity to the customers to compare the merits and demerits of
similar products,
6) Remover misunderstanding
Advertising helps consumers in removing their misunderstanding about certain products.
They change their attitudes towards certain products and services as a result of advertising.
7) Reduces the role of middlemen
Advertising helps in reducing the role of the middlemen by establishing direct contacts
between producers and consumer in results in cheaper goods by avoiding the profit and
commission of middlemen.
Advertising offers numerous benefits to the society. The following are some of the merits of
advertising to the society:
2) It creates more wants and their satisfaction. For example advertising has made more
popular and universal the use of inventions as the automobiles, TV, mobile phones
computers etc.
3) It made the availability of newspapers and visual media at cheaper rates. The cheap
production of newspapers is possible only through the publication of advertisements in them.
4) It assures employment opportunities for artists who innovate and create ads.
5) It educates people about new uses of products and provides information for leading better
life.
The following are some of the major criticisms leveled against advertising;
1. Economic Criticisms
1) Advertising is unproductive Advertising does not produce any tangible goods. It is a waste
of money, time and other resources.
2) Advertising is costly
A strong objection against advertising is that it is a costly function. Companies have to spend
huge amount of money for advertising.
4) Creation of monopoly
As a result of excessive advertising, consumers become slaves of a particular brand. This
may lead to the creation of market monopolies.
5) Increase of expenditure
Advertising increases the desire of people. This forces them to buy goods over and above
their income.
2) Social Criticisms
Critics of advertising say that most advertisements challenge social are bothered about the
appearance and design of the product rather values and culture of the society. As a result of
advertising, people than the physical utility. The following are some of the major criticisms
are as follows
1) False claims
Most of the advertisements contain false claims and theconsumers do not enjoy the benefits
advertisement. It gives misleading information to customers about the benefits of a product.
2) Undue influence over media consumers are not getting trueinformation regarding a
product or service.
3) Corrupts the minds of youth
It is argued that advertisements corrupt the minds of youngsters. Advertising promotes
smoking and drinking among youths. In some cases, advertisements promote the youths to
commit crimes and undertake activities at the risk of their lives.
3. Ethical Criticisms
Ethics refers to a set of moral standards and principles for leading the people in a right
direction throughout their life. The following are some of the criticisms against advertising on
ethical grounds;
Obscene advertisements
The use of nudity, indecent images, uncultured languages, words and captions in
advertisements is a major ethical issue. Most companies see nude images as an essential
thing for marketing their products.
4) Subliminal advertisements
Subliminal messages are words, images, sounds and visuals which are below the entry of
the conscious mind or not sufficient enough for conscious perception. But the subconscious
mind instantly understands and accepts them. They are used in advertisements to mislead
and misguide the consumers. Subliminal advertisements communicate more indirect
messages than direct messages.
Advertisement Process
1. Establishing the Goals
Identifying and defining the goals is the first phase of advertising. Spending money on
advertising without establishing goals is a wastes money, time and effort. Setting the goals
of advertising is highly essential to decide on the appeal or message communicated to the
targeted audience. The important factors considered by a company while setting the goals of
advertising are;
1) The nature of the target market.
2) Target sales.
3) The nature of the product or service to be highlighted in the target market.
4) The time of advertising.
5) Advertising strategy of the competitors.
i) Media class
This refers to the type of medium which is most appropriate to the product and ad copy.
This includes newspaper, magazines, television, radio, billboards and direct mail.
Attention
The ad designed by the advertiser must capture the attention of the viewers. This is an
essential component of any ad creation. Advertisers rely on a mix of video and audio to
make a lasting impression of the ad.
Interest
After inviting attention of the customers to the ad, the next steps establishing a need and
creation of an interest in the mind of the consumers. An interest in the minds of the
consumers forces them to purchase products. Being able to establish a need in the mind of
consumer is the basis of an effective ad. An ad must raise customer interest by focusing on
and demonstrating the advantages and benefits of the product. Creating a feel of 'something
special through the ad builds interest among the consumers.
Attention
The ad designed by the advertiser must capture the attention of the viewers. This is an
essential component of any ad creation. Advertisers rely on a mix of video and audio to
make a lasting impression of the ad.
Interest
After inviting attention of the customers to the ad, the next steps establishing a need and
creation of an interest in the mind of the consumers. An interest in the minds of the
consumers forces them to purchase products.
Desire
It is convincing customers that they want the product and it will satisfy their needs. This is
the stage where an adds oil to the flames of the desire of consumers. The ad has to creates
feel among the consumers that the product is essential for their life.
Action
After inviting the attention, building interest and burning desire, the ad has to lead
consumers to action (purchase). The last section of an effective ad is a powerful call to
action. For example, the call in anad “Buy now, the offer is limited for a short period”.
Steps in Purchase
According to DAGMAR, each purchase prospect goes through foursteps and advertising
objective is to carry a consumer through thesefour levels of understanding:
2.Market Analysis
4. Preparation of Budget
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.
6.Media Selection
Selecting appropriate medium for advertising is an important step in the planning of an ad
campaign. The website, TV, newspaper, radio, magazine or other advertising media to place
ad is a crucial decision.
1. Advertiser/Client
Advertising begins with the advertiser. The advertiser is the person or organization using
advertisement to convey a product or service related message to the target market. From
the perspective of an advertising agency, the advertiser is known as the client for whom an
advertising campaign is created and implemented. The advertiser makes the final decision
about the advertising campaign, media, budget (fund allocation) and the period of ad
campaign. The advertiser chooses the advertising agency for making and managing the ad
campaign and pays the cash for the services delivered.
2. Advertising Agency
Advertising agencies are specialized institutions that plan and implement advertisement
campaigns for the advertiser (client). The advertising agency possesses the strategic and
creative expertise, resources, media knowledge and talented personnel to deliver the
advertising services to the clients.
3.Media
Media include channels of communication that carry the messages of advertising from the
advertiser to the target audience. Newspapers, television channels, internet and social
media are few examples for the media in advertising.
4. Advertising Suppliers/Vendors
Advertising suppliers are persons and institutions that assist the advertisers, advertising
agencies and media to create and implement advertising campaigns. Advertising suppliers
include artists, scriptwriters, photographers, videographers, directors, printers etc.
5. Target Audience/Customers
Customers of the advertiser are most important parties in advertising. The ads are meant to
influence the buying decisions of the customers. The advertiser and the advertising agency
are required to create ads to impress the customers. Advertising campaigns should be
based on the emotions and sentiments of the customers. If an ad campaign fails to impress
the customers, then it would be difficult forth advertiser to meet his advertising objectives.
Advertisement Agencies
An advertising agency or ad
agency is a service institution dedicated to creating, planning and handling advertising for its
clients. An ad agency is independent from the client and provides an outside point of view to
the effort of selling the client's products or services.
Definitions
According to Philip Kotler, "advertising agency is a marketing service firm that assists its
clients in planning, preparing, implementing and evaluating various activities of advertising
campaign.”
7. Advertising agencies are highly professional. They operate in unique way. Ad agencies
being outside institutions can be objective. They can offer independent viewpoints and
suggestions to the advertisers based on an objective analysis.
Functions of Ad Agencies
The following are some of the major functions performed by
advertising agencies;
1.Ad agencies conduct complete marketing analysis.
2.They develop an advertising plan.
3.They create new promotional ideas.
4. They design ads and write ad copies.
5...They plan and conduct advertising campaigns.
6. They develop and implement a media plan.
7. They book advertisement space and time.
8. They conduct research in order to distribute the message to the public successfully.
9. They collect feedback from the target audience to decide on whether to revise the
message and the media.
Services of Ad Agencies
In addition to the general functions, many ad agencies offer variety of other services. These
include;
1. Public relations
2. Organizing exhibitions and fairs
3. Preparing all kinds of publicity material
4. Planning and organizing special events (event management)Selection of Agency
The following factors influence the selection of advertising agency;
1. Competency
The selection of an advertising agency depends on the competency of the agency. The
needs of the company determine the fitness of the agency. The advertiser chooses an
agency on the basis of performance and merits.
2.Agency Team
The advertiser evaluates the team of experts in the advertising agency. The team includes
management specialists, market researchers, copywriters, media experts, production
managers and art directors. The attitude, thinking, experience and personalities ofthe team
members greatly influence the selection process.
3. Experience and Goodwill
The experience and goodwill are closely examined by the advertisers before selecting a
suitable advertising agency.
4. Services
The range of services rendered is evaluated by an advertiser in order to select a suitable
advertising agency. Small agencies provide limited services while large agencies offer wide
range of services. The greater the range of an agency's services, the more fully it can serve
the clients' needs.
5. Creativity
Creativity is the main element in advertising. If the advertising agency is capable of great
creative efforts, it is selected for the purpose Style, clarity, impact, and action are taken into
account while evaluating creativity.
6. Location
Advertisers have to consult and communicate on various advertising problems. This can be
done quickly and economically, the office of the agency is within easy reach of the
advertiser.
1. Full service agencies are big ad agencies which perform the full functions in connection
with an advertisement. They manage the entire stages of advertisement. These agencies
employ expert people for different departments/divisions of advertisement. They start work
from gathering data of the advertisement and ends at payment of bills to the media.
2. Interactive Agencies
These agencies use modern forms of communication for ads. They use online
advertisements; messages on mobile phones, social mediate. for delivering ads to the target
customers. The ads produced are highly interactive and innovative.
3. Creative Agencies
Creative agencies concentrate on producing creative and innovative ad for the clients. They
are usually small ad agencies with high end creativity in ad making. Creative boutiques offer
no other advertising services except the creation of innovative ads.
4. Specialized Agencies
These agencies offer their ad services within a certain industry such as real estate, financial
services, medical and educational fields. Specialized agencies concentrate on specific
areas.
6. In-House Agencies
Big organizations set up their own ad agencies for managing the advertisement related
functions. In-house ad agency is an internal ad agency which works only for the
organization. The responsibilities of an in-house agency are similar to that of a full service ad
agency. One of the major advantages of maintaining an in-house ad agency is that the
organization enjoys full control over the advertising process,
Advertisement Campaign
Definitions
1. According to Dunn and Barban, "an advertising campaign includes a series of ads placed
in various media that are designed to meet objectives and are based on an analysis of
Marketing and communication situation.”
2. Drip Campaign
The concept of drip campaign was originated from drip irrigation technique in which small
amounts of water are fed to the plants for long period of time. Drip campaign follows a
communication or ad strategy which conveys small pre-written set of messages to the
customers over a long period of time. It is a continuous advertising campaign which attempts
to make a long term impact in the target market. Drip campaign involves sending product
related messages to the target audience repeatedly over long period of time in order to
attract their attention and retain their preference for the brand.
1. Setting the Advertising Objective: Defining the objective of the advertising campaign is
highly important for an effective advertising campaign. The three major objectives of
advertising are inform, pelican remind consumers about the brand. The advertiser should
clearly state his objectives for creating the appropriate message,
2. Preparing the Budget: Fund available for the advertising campaign critically influences the
nature and duration of campaign. The advertiser has to mobilize adequate funds for the
ad campaign.
positive and negative impacts of advertising on the society. Positive Impact of Advertising
on the Society Advertising serves the society in the following ways;
3. Employment Generation
Advertising provides direct employment to a large number of people engaged in designing,
writing and issuing advertisements Indirectly, advertising increases employment
opportunities by increasing the volume of production and distribution.
7.Incentive to Progress
Advertising is a great motivating force. People are induced to work hard and earn more to
buy new products brought to their knowledge through advertising.
1. Deception
The relation between the company and customers is maintained if the customers are
satisfied with what they saw in advertisement and what they got after buying that product. If
a company shows a false or deceptive image and an exaggerated image of the product in
the advertisement, then it will damage the relation between the company and the customers.
2. Subliminal Advertising
Capturing the Minds of the consumers is the main of ads. Subliminal ads are made by
advertisers to mislead the consumers This is an unethical way to influence the minds of the
consume The ads are made in such a way that the consumers are unable realize that it has
made an impact on their minds and this results in buying unwanted products.
3. Hidden Costs
Advertising requires a lot of money which are recovered by the companies from the
consumers. When a customer buys a product the price of the product includes
advertisement expenses also. The advertisement expenditure of a company is borne by the
customer:
4. Confuses people
Advertising creates confusion in the minds of people. It can lower the self-confidence of
consumers by making them feel they are not as good if they do not look a certain way or use
a certain product.
6. Obscene Advertisements
The use of nudity, indecent images, uncultured languages, words and captions in
advertisements degrade the moral values uphold but the society.
9. Advertising Clutter
Advertising clutter refers to the large volume of advertising messages that the average
consumer is exposed to on a daily basis. The day-to-day life of a modern man is
overcrowded with ads. A person will see or hear hundreds, if not thousands of commercial
impressions, between broadcast, print, Internet, billboards, etc. Uncontrollable crowd of ads
in public spaces is another major problem created by advertising. Highways, bus stations,
public transports, railways, airports, hospitals etc are filled with signboards, hoardings, wall
paintings and all other kinds of ad materials. This disturbs the free movement of the people
and maligns most of the public places.
The economic aspects of advertising can be studied under the following heads;
3.Effect on Price
The supporter of advertising argue that advertising helps to reduce prices Advertising results
in reduction of per unit selling and distribution cost. For example, the reduction in price
occurred in the case of products like television, computers, mobile phones, air-conditioners,
etc.
4.Effect on Demand
In case of new products, advertising creates primary demand by educating the audience
regarding uses of the product. In case of existing products, it increases sales through
suitable appeals. So advertisements create demand. But critics argue that advertisements
simply transfer business from one producer to another producer.
5. Effect on Competition
Advertising promotes competition among different brands of the same product. The
company offering good quality products at reasonable price gets advantages in the
competition. Through advertisements, a brand can communicates its good quality,
reasonable price, sales promotion schemes, and advertising appeals to the target
customers. When one advertiser launches such schemes, other advertiser also follows it. It
promotes competition. Critics argue that large firms create barriers to entry of new firms as
they enjoy economies of large scale and can afford costly and efficient media for advertising
9.Effect on Utility
Advertising creates time, place and perception utility. In case seasonal products, it creates
time utility by creating demand even in off season period. It creates place utility by creating
demand even in those market areas where the product not earlier sold. It creates perception
utility by making positive image of the product in the mind of the audience. Critics argue that
advertising is not a productive activity and does not create any utility.
2. The Monopolies and Restrictive Trade Practice act, 1969 The Act established strict
measures to stop advertisements which damage the consumer interest and promotes
unhealthy competition,
4) Cable Television Networks (Regulation) Act, 1995The legislations under this Act regulate
the programmers and advertisements transmitted on cable network in India.
Regulatory Authorities
The Government has established certain authorities to monitor the operations of different
industries. These authorities are entrusted with sufficient powers to regulate advertising in
the respective fields. Some of the important authorities are;
Objectives of ASCI
The important objectives of ASCI are as follows;
1.Truthful and Honest Representation: The claims in advertisements must be truthful and
honest. Companies should avoid misleading advertisements.
1. The CCC acts as a monitoring agency which examines the Advertisements in the country.
3. The CCC receives complaints from the consumers and the general public against ads
which are considered as false, misleading, indecent and illegal.
4. The CCC receives complaints from the Board of Governors (governing body) of the ASCI
against unfair advertisements.
5. The CCC conducts enquiries and investigations based on the complaints received and
adopts adequate measures for the settlement of complaints.
Ethics in Advertisement
Ethics refers to the moral values and principles that influence the behavior of individuals and
institutions. Advertising is subject to moral values and social norms. It exercises
considerable influence on the tastes, lifestyles, and behavior of the members in a society.
Ethics in advertising puts some moral and social responsibility over the advertisers.
Advertising plays a major role in influencing and transmitting social values as a result of its
popularity and dominance in the mass media. Unfair advertising strategies persuade
consumers to buy inferior or substandard products. False and misleading advertisements,
fake claims of product quality are some of the unethical practices in advertising. So
companies have to follow certain ethical standards while formulating their advertising
strategies to protect the interests of the consumers. The supporters of advertising state that
it provides information and facilitates improvements in living standards for the society. But
the critics or opponents of advertising state that it promotes materialism and is more
propaganda (misleading information) than information.
2. False Claims
False claims in advertising give consumers an incorrect understanding or belief about a
product or service being offered. False claims in advertising damage the interests of the
consumers. They trust on the fake claims made by the advertiser and lose their money in
substandard products. Nowadays, many companies use the terms organic', 'natural, pure'
and 'eco-friendly' while advertising their products. But consumers realise that the claims are
false when they buy and use the product.
3. Obscenity in Advertising
The use of nudity, indecent images, uncultured languages, words and captions in
advertisements is a major ethical issue. Most companies see nude images as an essential
thing for promoting the sales of their products. Obscene ads are indecent and degrade the
moral values uphold by the society. Advertisers use obscene images and indecent captions
to increase attention of the people. Most of the advertisers assume that obscene images and
visuals increase the appeal of the advertisement which may increase the likelihood of
purchasing a product. Some advertisers are of the view that obscene ads contribute to the
consumers ability to remember a brand or product.
4. Subliminal Advertising
Capturing the minds of the consumers is the main intention of ads. Subliminal ads are made
by advertisers to mislead the consumers. This is an unethical way to influence the minds of
the consumers. The ads are made in such a way that the consumers are unable to realise
that it has made an impact on their minds and this results in buying unwanted products.
Subliminal advertisements communicate more indirect messages than direct messages. It
provides certain hidden, inner and dual meanings. For example, in most films, smoking and
drinking scenes occur many times. This leads to a thought that smoking and drinking are not
bad and are necessary for maintaining social relations.
5. Surrogate Advertising
it occurs in cases where advertisements of certain products are not permitted by the law.
Certain cigarettes and alcohol companies use this type of advertising. They indirectly remind
people about their brands by advertising other products having the same brand names
Companies use this type of advertising in the case of banned products, They do not
advertise directly for the promotion of such products Instead, ads will be made for some
other subsidiary or products manufactured by the company in the same brand name
Companies manufacturing liquor and tobacco products utilise the possibilities of surrogate
ads in their advertising campaigns.
6. Advertising Clutter
Advertising clutter refers to the large volume of advertising messages that the average
consumer is exposed to on a daily basis. The day-to-day life of a modern man is
overcrowded with ads Uncontrollable crowd of ads in public places is a major problem
created by advertising. Highways, bus stations, public transports, railways, air ports,
hospitals etc are filled with signboards, hoardings, wall paintings and all other kinds of ad
materials. This disturbs the free movement of the people and spoils most of the public
places.
7. Hidden Costs
Advertising requires a lot of money which are recovered by the companies from the
consumers. When a customer buys a product, the price of the product includes
advertisement expenses also. The advertisement expenditure of a company is borne by the
customer,
8. Confuses People
Advertising creates confusion in the minds of people. It can lower the self-confidence of
consumers by making them feel they are not asgood if they do not look a certain way or use
a certain product.
Stereotyping
Stereotype refers to the generalized belief about the characteristics and behavior of people
belonging to different sections of the society. General beliefs about the characteristics and
behavior of males and females are examples of stereotype. Stereotyping is oversimplified
representations of any group in society .
Features of Stereotyping
The important features of stereotyping are given below;
1. Stereotypes are referred to as the common belief about the roles, status, characteristics
and positions of different groups of people in a society based on age, race, religion and
gender.
2. It is a generalized and widely accepted belief about the personal attributes of members of
different categories of people in the society.
3. Stereotype advertisements usually depict certain bias and beliefs about different groups of
people in the society. Ads depicting women in the role of housewives working hard and
continuously engaged in home affairs whereas men (husbands) and children are lazy or
waste their time in games and entertainments.
Certain ads generally create an impression that cleaning, washing and sanitation jobs at
home are the sole responsibility of women. Ads of different floor cleaner toilet cleaners,
washing powders are best examples. Some ads deplet per men ns weak and incapable of
doing certain work which are largely performed by men. For example, women are not good
at driving cars. But there are some ads which depict men as incapable in doing certain
homely work such as cooking food, preparing coffee, changing nappy pads of babies,
cleaning home, washing clothes etc. Harmful gender stereotypes in advertising are banned
by some nations on the grounds that they cause inequality among genders.
Sensitivity in Advertising
The term sensitivity refers to the ability to learn and understand what other people need and
be helpful, decent and gentle to them. Advertisers must have a detailed understanding of the
social and cultural backgrounds consumers while designing their ads. Anything that affects
the emotions and sentiments of the target audience will degrade the image of the brand. The
themes, messages and slogans used in the ad should not contain anything detrimental to
the interests of the consumers.
Cultural Sensitivity in Advertising
Cultural sensitivity is the awareness of specific cultural factors that influence the design and
implementation of advertising in a target market. The advertisers must be aware of the
cultural environment and develop appropriate messages. It covers language, lifestyle and
behavioral patterns of consumers in the market. Utmost care has Tobe taken by the
advertisers to uphold the culture and heritage of the target audience while advertising. Ads
that defame and degrade the culture of a society are unethical and are punishable according
to law. Moreover, it will cause frustration among the customers that ultimately reduces the
sales of the brand.
Advertisers sometimes use religious themes and images in their campaigns. This is to
impress the customers who belong to a religion. Ad campaigns of companies during
'Christmas', 'Ramadan and Diwali' are few examples of using religious themes, Images and
phrases. But advertisers have to be vigilant while using religious contents in their ads
because anything that appears to insult areligious belief is unethical and a punishable
offence under law, Advertisers should strictly avoid messages, image, symbols andphrases
in ads that are sensitive on the grounds of the faith and belief of a particular religion.
Race refers to a group of people of a particular heredity distinguished from others by social
qualities and physical characteristics, such as hair type, color of eyes and complexion. There
are different classifications of races in the world. Africans, Europeans, Asians, Whites and
Blacks are major divisions of races. Messages, themes, symbols, images and slogans that
intentionally or unintentionally insult a particular race are illegal. An ad degrading a race or
placing a race as supreme over others create racial discrimination and hurt the emotions of
the affected race. Such adware against the principles and ethics of advertising and are
punishable under the law. Therefore, advertisers have to avoid ads promoting racial
discrimination and should strictly avoid messages, symbols, images and slogans in ads that
are sensitive to different races.
Advertising to Children
Advertising is not desirable to children according to the results of the studies conducted by
different child psychologists across the world. They are of the view that advertising targeting
children is unfair because they do not have a clear understanding of the persuasive
intention of advertisements. They consider ads as informative, truthful and entertaining.
Even though advertising, to children has been criticized for the negative impacts, there are
few positive impacts. They are mention below:
1. Advertising offers and learning opportunity for the children, lt gives information regarding
various products, services and technology in the world,
2. Ads of healthy food and beverages help kids to practice good and balanced diet,
3 Ads of hygiene product help children to learn the tips to maintain their body, home and
surroundings nest and clean,
4. Socially relevant ads motivate children to become part of social services and national
development. Many children donated their small savings to the Chief Minister's Distress
Relief Fund (CMDRE) and extended their support to the Rebuild Kerala Initiative of the
Government of Kerala,
5. Environmental protection advertisements increase the attention and awareness of children
towards preserving natural resources and environment
6.Warning and instructive ads that reveal the consequences of alcohol and smoking, help
children to understand the risks associated with the use of such products.
Product Endorsements
An endorsement is a public expression of approval or support for or service. Endorsements
are also known as test usals. Even though ordinary citizens, doctors and other professionals
are endorsing products, most endorsements are associated with celebrities. Film stars and
sports stars make product endorsements. Celebrities enjoy public recognition and respect.
Generally, people pay attention to the words and actions of the celebrities. Companies use
the goodwill of the celebrities for the promotion of their brands. A celebrity is substantially
paid by the companies to be the spokesperson or endorser for a brand. But celebrities have
certain moral oblig8ations. They are required to give factual information about the product to
the public. Exaggerations and misleading statements about a product by a celebrity are
considered unethical. Endorsers must actually have used the product that they are
endorsing.
MODULE 2
ADVERTISEMENT APPEAL AND MEDIA
Advertising appeal is the central theme in the advertising message. It arouses the desires
and addresses the human need that can be satisfied by the product which is advertised.
Definitions
1. According to Lucas and Bnitt, "advertising appeal is defined as any message designed to
motivate the consumer to purchase.”
An advertisement appeal is a theme in which the advertisement created. There are some
essential things to be considered foran advertisement. They are as follows;
1. Emotional Appeal
An emotional appeal is related to a person's psychological and social needs for purchasing
certain products and services. Many consumers are emotionally motivated to make certain
purchases. Advertisers aim to gain advantage from the emotional appeal. Emotional appeal
includes personal and social aspects
1) Personal Appeal
It includes some personal emotions that drive individuals to purchase products. They are
safety, fear, love, humor, joy, happiness, sentiment, pride, self-esteem, pleasure, comfort
etc.
2) Social Appeal
It covers social factors that motivate people to make purchases and include such aspects as
social recognition, respect, affiliation, acceptance, status and approval.
3) Fear Appeal
Fear is an important factor that can have incredible influence on individuals. Fear is used in
advertising to influence consumers. Advertisement appeal used for the promotion of
insurance products is an example for fear appeal.
2. Rational Appeal
Rational appeal focuses on the practical needs of the consumers. Such appeals emphasize
the characteristics and features that are beneficial to the consumers. It highlights the value,
quality and performance of a product to motivate the rational buyers. For example,
an ad of a car company highlighting the fuel efficiency.
a. Moral Appeal
Moral appeals emphasis on rights and wrongs. The advertisements of moral appeal are
designed on social causes. Ads showing equal rights for women, payment of taxes,
donations for the poor are examples of moral appeal.
4. Humour Appeal
Humour has been widely used in advertising due to its power of createIdcing in the
consumers towards the advertisement. Ads of Fevikwik,Cadbury Perk, Cadbury 5 Star,
Cadbury Dairy Milk, Tata Sky, CenterFruit are few examples humour appeal.
5. Beauty Appeal
Beauty appeal is widely used in beauty products, such as soaps, skin cream, shampoo and
fragrances. The advert will often include an attractive celebrity to talk about the product and
say how good itis. It will make a feel among the consumers that if they use the product, they
will be attractive like the celebrity in the ad.
6. Scarcity Appeal
Scarcity appeals focus on limited supplies or limited time period for purchase of products.
They are usually followed while employing promotional tools including gift coupons,
discounts, contests etc.
Advertisement Copy
Advertising copy is the written or spoken message which the advertiser wants to
communicate to the targeted audience through an ad. It is all the written or spoken words in
ad expressed in words or figures designed to communicate the desired message to the
customers .An advertisement copy is the output of the efforts of copywriters and artists. The
meaning of copy varies with type of medium used in advertisement. In a print advertisement
copy is the text or reading matter. It is the voice in a radio and other audio devices. But in
films and TV channels, copy is the visual and the dialogues by the characters. In hoardings
and wall ads, it is the painted matter. Therefore, words, figures, voices, visuals, pictures and
paintings in ads constitute copy.
Definitions
1. According to Stella Mike, an ad copy is the content and context Anime of a message
contained in an advertisement."
2. Mukesh Trehan defines ad copy as "written or spoken material in the ad. It includes
hordlines, main body, sub hoads,pictures, caption, slogans, Information about brand name,
trade-marks, prices, coupons, claims, advertiser's name, logo,
address, phone numbers, website etc."
1. Attention Value
A good ad copy easily attracts the attention of the people. If an ad copy fails in generating
attention value, then, the whole money spent on it will go waste. The advertisement copy
should be planned, drafted and displayed so cleverly that it may compel even the most
casual or involuntary reader to notice it and read it with interest. It should be designed in
such a fashion that the attention of a busiest person maybe drawn immediately.
2. Suggestive Value
Good ad copy offer a suggestion about the use and the utility of the product that may remain
engraved on the minds of the customers. Slogans, Pictures, phrases, visuals, sounds and
songs may be used for this purpose.
3. Memorising Value
Good ad copy enables consumers to remember the name of the product and the needs it
satisfy. The copy of the advertisement should be so drafted and laid out that the product will
stick to the minds of the audience Repetition of advertisement with slogan is an effective
method of creating a memorising value.
4. Conviction Value
Good ad copy should be able to sufficiently convince the consumer regarding the truth of the
message. An advertisement copy can prove effective and achieve the desired end when the
suggestion contained in it is backed by convincing arguments.
5. Educational Value
Good ad copy educates the customer regarding the needs and the products that satisfy the
needs. The object of modern advertising is not merely to satisfy the existing demand but to
create future demand. So a good copy of advertisement should educate the general public
about the uses of the new product or the new uses of the same product.
6. Motivational Value
Good ad copy arouses a desire among consumers to purchase the advertised product. The
most important function of an advertisement copy is to induce, persuade and motivate the
audience to think well of a product and purchase.
7. Emotional Value
Good ad copy uses the words that influence the emotions of the customers. The ad copy
should make a sincere attempt to make an appeal to the emotions of the audience in favour
of the product.
Types of Ad Copy
The following are some of the common types of ad copies.
1 institutional copy
This type of copy emphasizes on the reputation of the manufacturer. Il informs the target
audience the fact that the manufacturer le established enough to give them the right goods
The ad of Indian Oil Corporation Ltd. (Pehle Indian Phir Oil - Indianoll) is an example for
institutional copy.
4. Educational Copy
This copy provides valuable scientific or technological information to the target audience.
Such a copy attempts to give an in-depth explanation about the product's features,
advantages, and benefits, The ads of Harpie' toilet and bathroom cleaners are examples for
educational copy
6. suggestive copy
This copy gives relevant information about a product but does not directly place an appeal to
the customers to purchase it or service It simply suggests that if customers buy the product,
they would certainly be benefited by it The ad of "Sunlight Liquid Detergent 'is an example
for suggestive copy.
7. Expository copy
If a copy tells openly and directly all the features of a product or a service with the help of
suitable pictures, photos and diagrams to impress a customer, it is called an expository
copy. Resorts, hotelsand tour companies adopt this type of copy to impress the customers.
8. Descriptive Copy
This copy gives detailed information about the product to the target audience. The ad copy
contains lengthy informative message to the customers. This copy is widely used in mail
order business.
9. Questioning Copy
This copy begins with asking questions to the customers. Headline of such copy is in the
form of a question. For example, an old ad of Cinthol' soap begins with the question “I use
Cinthol. Do you?"
1. Print Ad Copy
Ad copies that are specially made for newspapers, magazines other print publications are
known as print copy.
2. Radio Ad Copy
As the name indicates, this ad copy is prepared for broadcasting 4ads over radio. The ads
have audio effect only.
3.TV Ad Copy
The ad copy is prepared for broadcasting ads on T.V. Channels. ads create both audio and
visual impact among the viewers.
4.Outdoor Ad Copy
It refers to ad copies prepared for wall posters, banners,signboards, wall paintings,
hoardings, etc.
Elements of Ad Copy
The following are the major components of ad copies on the basis of the media;
1.Print Ad Copy
Print advertising includes sales brochures, coupons, leaflets, business cards, billboards, flex
banners, hoardings and ads in magazines and newspapers. Some of the major components
of a print ad copy are;
2) Artwork
Photographs, drawings, pictures, graphics and colours are the major attractions of many
types of print ads. Some ads may have only a single picture while others might have several
pictures. Print ads may use computer graphics to represent and manipulate the images in
the ad.
3) Headline
It is the strongest element in an ad. Headline should be powerful enough to draw potential
customers into reading the copy. “Car Insurance at Low Cost", "Save Money" are some of
the examples of headlines. Some ads may have subheads and other title elements as well.
They are used to clarify the idea expressed in the headline.
4) Body
It is the main text of the ad. Some ads use minimum words, a line or two or a single
paragraph to make the body. But certain ads present paragraphs of information in the body.
5) Slogans
They are short, memorable phrases used in an ad. Slogans are the most effective means of
drawing attention to one or more aspects of a product. For example, "Have a break. Have a
Kit Kat".
6)Contact
The contact or signature of an ad may appear anywhere in the ad. It is usually presented
near the bottom. It consists of one or more of the following:
(1) Logo
(2) Advertiser Name
(3) Address
(4) Phone Number
(5) Map or Driving Directions
(6) Web Site Address
7) Extras
Some print ads may have additional special elements such as an attached business reply
envelope, tear-out portion with a coupon etc.
2. Audio Ad Copy
Audio is an effective means of communication used by the modern advertisers. A bit of
sound can be a good way to bring the attention of the consumers to an ad. An audio ad
requires effective script and voice. Advertisers use professional announcers and the voice of
celebrities to read the script of advertisement. The most common audio advertising medium
is FM radio. Telephones, mobile phones and public announcements are the other media in
audio advertising. The major elements of the ad copy in audio advertising are as follows;
1 Announcement
Information about the product, available stores and the company are presented to the
audience by an announcer.
2) Conversation or Dialogue
The ad is presented as a story or conversation between two OT more people.
3) Song
The ad copy may include song or music to explain the benefits of the product.
1) Script
It is the backbone of every visual ad. It is the screen play of the advertisement.
2) Music
It is usually included in the ad to make it more attractive, entertaining and easy to remember
by the viewers.
3) Visuals
They help to deliver the ad message clearly to the viewers.
4) Dialogues
The words spoken by the models in the ad communicate information about the product to
the viewers.
Advertisement Layout
Advertisement layout deals with appropriate and attractive physical arrangement of the
various components of an advertisement.
Definitions
Elements of Layout
1 Background
An ad requires colorful and catchy background to attract the attention of the people. The
arrangement of background differs on the basis of advertising medium and the nature of
advertisement, Background of an ad must be one that is suitable for the contents of the
advertisement.
2. Heading/Headline
The heading or headline is defined as the title of the advertisement, It is a phrase or
sentence that opens an ad. The purpose of a headlines to catch the attention of the viewers.
The words in the heading should be short. For example, the headline of State Bank of India
is*State Bank of India, With you all the way".
3. Caption
A caption is a brief description given for a picture or an illustration in an advertisement.
Usually, it refers to a text that gives a short explanation to the image in the ad. It clearly
explains a picture in and. The caption used under the picture of Kerala Tourism is "God's
Own Country". Another example is "Pure for Sure" caption used under the logo of Baharat
Petroleum.
4. Catch phrase
It is a word or expression that is used repeatedly and conveniently to represent an idea or
message of the ad. Catchphrases are expressions recognized by their repeated
utterance/usage in the ad.Por example, the catchphrase of Philips is "Let's make things
better “and "Life's Good" by LG.
5. Slogan
Slogan is a sales argument. It is a short, memorable groups of words used in advertising
campaigns. The purpose of a slogan is to highlight a phrase in order to get a desired market
Image Some slogans are created and used for short period campaigns while others are used
as a corporate slogan to be used for long period, examples, the slogan of Pepsiis "Yohl hat
right choice baby! Aha"andthe slogan of Nestle Kit Kat is "Have a break, have a dikat",
6. Illustration
Illustrations are the part of layout that picturizes the basic theme of the advertisement. It has
the power to capture the attention of the reader. Illustration is a visual presentation of the
product. The advertisements become colorful and richer by the use of illustrations.
7. Text
Text or body of the advertisement refers to the general reading matter. It refers to the subject
matter of the ad copy.
8. Product
It refers to the representation of the product offered for sale. The product is presented or
shown with illustrations.
9. Symbol/ Logo
Symbol or logo is the signature of the advertiser. It represents the personality of the
company and its product. Logo is an identification mark of the company and its
advertisement. Viewers can easily recognise the product of the company by seeing the logo
of the company in the advertisement.
10. Price
It is another part of layout. The price of the product should be featured clearly. The price is
usually given in the concluding lines ofthe ad copy
Functions of Layout
The following are some of the major functions of advertisement layout;
1. Principle of Unity: A good layout effectively combines together different elements of the ad
and facilitates completion. Different elements of the ad are related with each other. Lack of
unity with different elements reduces the quality of the advertisement.
2. Principle of Variety: An ad should not be dull and homogeneously using only one color,
size and shape. The layout should be stylish by the use of ideal combination of colors,
suitable images and arts.
3. Principle of Balance: It deals with the balance between right-side and left side of the ad. It
is the artistic combination of different sizes and shapes that make up an advertisement.
There are two types of balance;
1) Formal balance: In this case, words and pictures on the right-side are equal to the words
and images on the left side of the ad. The right side and the left side match each other in
size, shape and color.
2) Informal balance: In this case, each part of the ad is placed on the page at random. There
is no balance between right-side and left side.
4. Principle of Rhythm: The advertisement must be prepared asper the movement of the
eye. The movement of the eye is from left to right. A person first looks up then he looks
down. So, the advertising idea must move from left to right and from top to bottom.
5. Principle of Proportion: The advertisement must maintain proportion. The entire space
must get divided among the different parts of the ad. The division must not be equal. If all the
parts have same space, then the ad will not look good. More space must be allowed to the
main part of the ad. Less space must be given to the less important parts.
6. Principle of Simplicity: The layout must be simple and easy. It must not look very crowded
and complicated.
Copy Writing
. It is the process of developing innovative idea for catching the attention of the readers,
listeners and viewers of an ad. Copywriting refers to the act of preparing and providing the
written words, audio, visuals, graphics, slogans, catchphrases, captions etc. for an ad.
Advertisement and Sales Management
Types of Copywriting
2. Storytelling Copy
In this style of copywriting the ad is presented to the target audience with the help of suitable
stories. The audiences are taken through a tale of real-life trials and triumphs. The copy
explains or visualizes a problem with the help of a story and eventually gives resolution. A
good story helps the reader to understand the benefit ofthe product in real life. The ad of
'Asian Paints Ultima Protek' (Fiberin paint ad) is an example for storytelling copy.
3. Conversational Copywriting
In this style of copy, there is a real-life conversation happening. The language is friendly and
conversational. The language is similar to that of two colleagues sitting together for a chat.
The ad will be conveyed during the course of the set conversation. The ad of Muthoot
Finance (Amitabh Bachchan ad) is an example for conversational copywriting.
4. Imaginative Copywriting
In this writing style, similar to storytelling, the audience is taken through imagining their life in
a certain way. The idea is to paint a picture in their minds and make them feel better with the
product or service. The ad of 'Repose Spring Mattress' is an example for imaginative
copywriting.
5. Big-Wig Copywriting
In this copywriting, third-party endorsements are used to convince the target group. It helps
to increase the credibility of the products. The ad of 'Ajay toothpaste' by actress Vidya Balan
is an example for this type of copywriting.
6. Frank Copywriting
Some copy will mention the limitations of the product first. Then it will come to its unique
benefits. Expectations are low at the beginning. But later, the audience is convinced about
the qualities of the product. This approach fosters an honest discussion about what to
expect. The copy is based on honesty and trust where people are given an opportunity to
understand the drawbacks of the product along with its merits. The ad of Tata Ace Mini
Truck' is an example for frank copywriting. The caption used by the company is "small but
powerful".
7. Technical Copywriting
This style of copywriting educates the reader about the product or service. The copy is
prepared with the technical specifications about the product.
Copywriter
A copywriter is the person who comes up with the ideas to create promotional message for
an ad. The job of a copywriter is to create the text for advertisements. He develops copies
for all types of ads such print, audio, visual and audio-visual ads.
2. Good researcher
A Copywriter should be a good researcher. If the copywriter researches the product properly
he can produce a good copy of it.
3.Critical thinking
This quality is necessary to write novel copies for ads.
4. Keen observation
This enables the copywriter to know the needs of the targeted audience. Good copywriters
always want to be the first to identify the needs of the concerned market.
6.Discernment
It is the ability to sense information about the market. This will help the copywriter to create a
copy that would appeal the audience and bring out high response from them.
7. Active listening
Copywriters must closely to the needs of their client. It is through listening that they learn
about the subject and market that they write for.
8.Technical Knowledge
If the job of the copywriter is in technical fields like engineering or industrial products, he
should possess the required knowledge to do his work perfectly.
Process of Copywriting
Copywriters work closely with their clients to create a concept for ad to influence the
prospective buyers and make them buyers. The work of a copywriter is a process which
involves different steps. The following the major steps in a typical copywriting process;
1. Planning
Planning covers all areas of copywriting. The copywriter has to determine the theme of the
copy. He has to clearly analyse, understand and establish the purpose of copywriting during
the planning stage .It is the duty of the copywriter to clearly understand all the relevant
information about the target market.
2. Research
In this stage, the copywriter is required to conduct an in-depth study to collect the
information Inputs for the ad copy. He has to all knowledge gap through a purposeful
research.
3. Organisation
In this stage, the copywriter formulates the concept or ideas forth ad in relation to the
medium selected. A rough copy or an outline or the ad copy is prepared during this stage.
Photos, pictures, graphics, visuals, layout designing etc. are made during this stage.
4. Writing
The copywriter enters into the real job of writing during this stage. First, the copywriter gives
a title or working title for his ad copy. Headopts appropriate style and uses effective
sentences for the ad copy.
5. Checking, Proof reading, Editing and Revision
This is an important stage in a copywriting process. The copywriter thoroughly checks
drafted copy in order to find out mistakes. He also makes series of editing and revisions to
avoid errors in the final ad copy. This step helps the copywriter make the ad copy clear and
Perfect
objectives
. Copy testing aims at achieving the following objectives;
1. To know whether the proposed ad is appealing to the customers or not.
2.To ascertain the communication effect. The communication effect measures the degree to
which the advertisement conveys its meaning to the consumer.
3.To assess the potential of the ad in achieving the specified goals.
4. To know whether the ad stimulate the people to purchase the product.
5. To know the credibility of the ad among the target customers.
6. To know the attitude of the people towards the ad.
7. To gather suggestions from the target audience for making changes in the proposed ad
Advantages of Copy Testing
1. Testing can be done at low cost because it does not cover the whole market.
2. It requires less time to complete the testing process.
3. Timely correction of the ad is possible because the problems found in pre-testing can be
resolved before the launching of the ad.
4. It in highly useful in selecting the best ad copy from the available ad copies
5. It is useful to avoid ineffective ads
6. It reveals the total cost requirement of an ad campaign. This help advertisers to avoid
expensive ad campaigns.
Advertising Media
. In advertising terms, medium refers to a channel of communication. It is the vehicle for
carrying the ad message to the consumers. Advertising media fill the communication gap
between the producer/seller and the buyer. An ad message flows through the ad media from
the advertiser to the target audience.
Media Planning
media planning refers to the process of selecting media time, place and space to
disseminate advertising messages in orderto accomplish advertising objectives.
Definitions
. According to Wells Burnett, "media planning is a decision process regarding use of
advertising time and space to assistin the achievement of marketing objectives."
Media Strategy
Media strategy is referred to as a series of actions that media planners take to attain the
media objectives. It describes how an advertiser will achieve the stated objectives. Media
strategy can be defined as the usage of an appropriate media mix in order to achieve
desired and optimum outcomes from the advertising campaign.
1.Where to Advertise?
Where the advertisement has to be displayed is an important issue in media strategy. Wide
range of options is available to the advertiser. He can choose from large number of print,
electronic and online media options.
2.When to Advertise
The second W' of media strategy is when to advertise? Deciding an appropriate time for the
advertising campaign is an important part of media strategy. For example, companies
marketing school and college items (uniforms, bags etc.) advertise just before or during the
beginning of the academic year. Air conditioners, Refrigerators and Ice-cream companies
give their ads during summer season. The success of the media strategy depends on the
timing of the ad in the media.
1) Media concentration approach: In this approach, the advertiser selects only a few media
types (generally two or three) in order to cover his target audience instead of using awide
variety of media types.
2) Media dispersion approach. In this case, a wide variety of different media categories is
employed to reach the target customers. Media dispersion approach is adopted when it is
not possible for the advertiser to cover the entire market with few media types.
Key Areas of Media Strategy
1. Media mix
It refers to the combination of media used for advertising in target market. An ideal blend of
media must be constituted for each market for ensuring maximum exposure at minimum
cost. For this a market-media match exercise needs to be conducted and the role coach
medium in contributing to the achievement of media objectives should be decided in
advance.
2. Usage of media
The advertiser has to clearly decide the different ways of using the selected medium. The
usage of media can be explained in terms of buying the space in a print medium,
sponsorship on television, special interest publications and so on. The usage decisions are
taken to extract the best mileage out of the selected media.
3. Geographic allocation
It is the decision regarding the place of advertising. Media planners must allocate advertising
by geography. If a company markets its products nationally, then it can take national
approach in advertising which means advertising in all markets. The decision of
geographical allocation of media is based the market priorities and the differential media
objectives set for such market.
Media Selection
Media selection is the process of choosing the most cost-effective media for advertising,
Selection involves choosing medium or media from different types of media such as news
papers, magazines, radio, television and others. A detailed inter media comparison is highly
essential to select the suitable media from the different media types.
The following are some of the major factors considered by the media planners while
selecting media for advertising;
2.Nature of consumers
The media planner should consider the nature of the target audience while selecting media.
He has to study the exposure and influence of the media in the target audience. The media
planner has to know how many people are exposed to a message by a particular media in
order to evaluate its impact on the target audience.
3. Advertising objective
The media planner has to select a media which is sufficient enough to meet the established
objectives of advertising. For example, if the objective of advertising is maximum exposure
to the target audience, then the media has to select a medium which highest coverage in the
target market.
4. Type of message
A message is designed to motivate a person to action. The media planner must select an
ideal medium for carrying the message to the target audience. For example, if an advertiser
requires visual impact to properly communicate his message to the target audience, then
television is the best medium.
5. Budget
Cost efficiency is very important in media selection. This is because an advertiser considers
the affordability of a mediummedia providing the same services and one is more affordable
than compared to other media. For example, if an advertiser considers two the other, the
advertiser will prefer that cost effective medium.
6.Competitive advertising
The media strategy of the competitors is another major factor influencing the media selection
of an advertiser. In order to counterbalance the advertising of the competitors, an advertiser
has to select the suitable media.
7.Media availability
The choice of media depends on its availability. Media selections effective when the
advertiser enjoys a wide choice of media. He canmake a detailed comparison (inter media
comparison) of the media and select the best media for his ad campaign.
8.Characteristics of media
An advertiser selects media on the basis of their characteristics. There are various types of
media with their own unique characteristics. The characteristics of print media are entirely
different from the characteristics of broadcast media. An advertiser considers the unique
characteristics of all media during the course of media selection.
Process of Media Planning
The process of media planning involves the following steps;
2) Time: It is the time to deliver an ad to the target audience. For example, an Air Condition
manufacturing company may set an objective to advertise during the summer season.
3) Frequency: It is the rate of occurrence or exposure of an ad. For example, the number of
times an ad is played in a T.V. Channel in a day.
4) Schedule: It is the time table or calendar of an ad. Schedule tells the period of running an
ad. It can be continuous or seasonal. For example, a company may set an objective to
deliver the ad regularly in all days) to the target audience.
5) Cost: It is the consideration of funds required for advertising. In the setting of media
objectives, cost is an important factor considered by the advertisers. For example, a
company may set a goal to maximise the reach of an ad the greatest number of people at
the lowest possible cost.
4. Media Strategy
The advertiser or the company has to formulate appropriate media strategy for the target
market. If the media strategy is effective then the advertising objectives can be easily
attained. Poor media strategy results in the failure of an advertising campaign. A media
strategy is considered good and effective if it makes a right combination of media at right
time at minimum cost for advertisement campaign.
5.Media Selection
The advertiser has to choose the media for implementing the media strategy. The media
includes print, electronic and online media. Under these three categories of media, there are
different media choices are available such as different newspapers, magazines, radio
stations, television channels, websites and social media.
7. Media Buying
Media buying is an advertising term which is used to denote a process of purchasing space
in media to meet the media plan requirements at the reasonable costs. Buying adequate
space in a newspaper to place the ad of a product is an example for media buying .Media
buying is buying advertising space from a company that offer media services. The cost of
media buying varies depending on the type of the media selected, the space, time and the
frequency of the ad.
5. Helps in Control
Media planning fixes certain standards of performance. It usually fixes the number of people
to be covered or exposed to an ad during a given time period. This helps the advertiser to
evaluate the efficiency of a media by comparing the actual coverage with the targeted
coverage.
Problems in Media Planning
1. Insufficient Information
Media planners usually face insufficiency of information even a great deal of information
about markets and the media available. Insufficiency of relevant information may lead to the
failure. Of media planning,
4. Time Pressure
Usually, advertisers are forced to act in hurry in order to counterbalance the ads of the
competitors. In such situations, media selection decisions may be made without proper
planning and analyses of the markets and media.
5. Lack of Expertise
Media planning requires the service of highly competent persons in the field. If the media
planner does not have sufficient skill and knowledge then it will reduce the quality of
planning,
Types of Media
1.Print Media
Print media is one of the oldest and basic forms of monthlies and other forms of printed
journals. Print media has the communication. It includes newspapers, weeklies, magazines
advantage of making a longer impact on the minds of the reader, with more in-depth
reporting and analysis. Print media is relatively cheap and does not require access to any
technology for using them.
Advantages
The following are the major advantages of print media;
1) It is less costly compared to broadcast media.
2) It is highly useful for targeting educated group in the target market.
3) It is useful to give detailed information about a product or service to the target audience.
4) Different types of print media (newspapers and magazines) have a loyal readership. This
can be very useful for advertisers as compared to other advertising media.
5) In the case of targeting a particular geographical area, print media is useful. For example,
a local newspaper would be a best medium to advertise about a new product in the market.
Disadvantages
The major drawbacks of print media are;
1) Print media do not have wide reach compared to broadcast media which can target a
global audience.
2) Print media cannot offer the audio and visual impact required by an audience.
3) Print media requires a long time to disseminate information to the people. Information may
become obsolete by the time it appears on the print media.
4) It is difficult to schedule advertisements for publications that run monthly or quarterly. The
advertisers have to fix the date and time of the ads in accordance with the publication
schedule of the magazines.
5) Ads through print media will be effective only when the target audience have the time and
desire to read.
2. Broadcast Media
Broadcast media usually refers to media such as TV and Radio. Broadcasting is the
distribution of audio and video content to a dispersed audience via any audio visual medium.
Broadcast media help advertisers to reach a very large number of audiences and give their
products instant popularity.
Advantages
Disadvantages
Advantages
Advantages
1) Direct mail ads can be prepared quickly. The advertisers can prepare and mail a small
promotion within days or weeks
2) They can generate quicker response from the target audience The inclusion of an order
card and return envelope makes convenient for the consumer to respond to direct mail.
3) With the help of carefully developed mailing lists advertisers can be more selective in
targeting their audiences compared to most other media.
4) Direct mail media are useful to hide the advertising strategy of a company from its
competitors. With the help of direct mail media. Advertisers can run confidential ad
campaigns.
5) Direct mail media are more personal. They address consumers by name. The message of
the sales letter is directed at a particular person in direct-mail campaigns.
6) Direct-mail advertising is cost effective. Advertisers can easily design colorful or eye-
appealing brochures with their computers and print thousands of copies affordably with the
help of their printers.
7) The results of direct mail media campaign are highly measurable by comparing the
promotion mails to the customers and the responses received from them.
Disadvantages
The following are the major drawbacks of direct mail advertising medias
1) The costs of designing effective direct mail advertisements can be high, if the advertisers
want the expert services of professional
2.consumers may treat mailings from companies materials. A lot of it will go directly into the
garbage.
3)Many consumers are inception of the reliability of products advertised through direct mail.
3)Most direct mail ads fall because of low response from the consumers.
4) Advertising in this media requires detailed mailing list of customers. Errors and lack of
regular updations in the mailing list reduce the success of ads through direct mail media.
5. Internet Advertising
Internet or Online advertising is a form of promotion that uses the Internet and World Wide
Web to deliver ad messages to attract customers. Different forms of online advertising are
contextual adson search engine results pages, banner ads, blogs and social network
advertising. A major benefit of internet advertising is the immediate publishing of information
that is not limited by geography or time.
2. Effecting interactions
Internet ads aim at increased interactions with the customers through online and these
interactions result in better relations and increased sales.
3. Maximising offline sales
Internet ads focus on increasing the offline sales of the company through the use of a digital
coupons or vouchers.
5.Provide information
Essential brand information can be easily conveyed to the customers with the help of
internet marketing. The brand can send messages to the potential and loyal customer
through this medium of advertisement. Internet advertisement is relatively quick, easy and
has a more significant impact on the customers.
1) Internet ads reach people who have access to computers and internet.
2) Consumers can avoid or bypass most of the ads in internet.
3) Ads in internet may create a negative impact on the consumers by distracting them when
they browse internet seriously.
4) The internet consists of numerous websites. It is not possible for the advertisers to
broadcast their ads in all websites.
5)Overload of ads is major problem of internet. When people see too much ads, they choose
to ignore them.
6. Other Media
1)Film Ads
Film or Cinema advertising is a very effective way of delivering product related message to
the target audience. It possesses a large potentiality to generate huge response from the
public because the viewers are forced to watch advertisements while watching films. Film
advertising medium enjoys both audio and video effects which help the advertisers to easily
catch the attention of the audience. The major drawback of film advertising is that it
communicates message only to people who come to the cinema halls.
3) Tele Advertising
The advertisers use telephones and mobile phones as the media for ads. Product messages
are delivered to the prospective buyers through telephones or mobile phones as 'cold calls'
(phone calls tomarket a product) or SMS.
Definitions
2.Short Message Service (SMS): Sending text messages to prospective customers in order
to seek their permission for conveying relevant product related information.
3.Rich Site Summary/Really Simple Syndication (RSS) Feed: It is a web feed which allows
users to access updates in websites in an easy to read format. RSS is a format for delivering
regularly the changing web content. It feeds the user with the latest information and updates
from his favorite websites.
4. Loyalty Programmes: These are programs through which loyal customers sign up for free
coupons membership and gift cards. Companies motivate customers with discounts,
rewards, membership etc.
1.The permission marketer (the firm or the seller) has to offer the prospective customer
some incentives for obtaining his permission for sending to him relevant product related
messages and information. The incentives include discount coupon or gift voucher to the
prospective customer.
2.The permission marketer has to effectively utilise the permission granted by the customer
by teaching him about the product or service offered.
3.The permission marketer has to reinforce the incentives already offered in order to ensure
that the prospective customer maintains the permission given to him.
4.The marketer is required to offer more incentives to gain even more permission (consent
for communication and interaction) from the prospect as the relationship continues.
5. Finally, the marketer changes the behavior of the prospective customer and leads him to
the purchase of the product.
1.It helps a firm to transform a stranger into a friend and a into a valuable customer.
2. Properly gained and used permission benefits both the marketer and the customer. The
customer gets relevant information to make his purchase decisions. The marketer gets the
opportunity to concentrate his efforts towards those people who are most likely to buy
3.Permission marketing employs less expensive online tools such as social media, search
engine optimization, e-mails, etc.
4.It reduces the cost of marketing by concentrating on prospective customers who have
shown interest in product related messages and interactions.
5.Permission marketing allows a firm to make personalized campaigns. A firm can target
specific audiences according to their age, gender, geographical location, etc.
6.It easily converts permission for product communication with a prospective customer into
profitable business relations (sales).
7.It facilitates long term relationships with customers through the usage of social media and
e-mails.
8.Permission marketing only sends information to those who are anticipating the information.
Therefore, the prospects who receive the information feel less discomfort.
Module -3
ADVERTISING RESEARCH
Definitions
4.It helps to know the effectiveness of different ads in drawings customer attention, building
brand image and communicating message.
5.It pinpoints weak elements within an ad and gives measures to improve its performance.
6.It identifies elements that are necessary for an ad campaign using different media.
The need and importance of measuring the effectiveness of advertising are described below;
2. Facing Competition
A rational evaluation can provide a company with an edge of its competitors.
3. Control
Evaluation is required to exercise control over money spent on advertising.
4.Effective Ads
Through a systematic evaluation, companies can produce effective ads.
5. Proper monitoring
A good evaluation programme helps companies to properly monitor the advertising activities.
It closely examines all aspects of an advertising campaign.
1. Cost of measurement
The most common reason that companies provide for not measuring their advertising
effectiveness is the cost of conducting a measurement program. Most companies believe
that the money spent for measuring the advertising effectiveness can be utilised for creating
more advertisements or improving their products.
3. Problems in testing
There are various methods in practice to measure the effectiveness of advertising. All these
methods have their own merits and demerits. A method suitable for evaluating an ad may
not be suitable for another. Selecting an appropriate method is a crucial issue faced by
companies. Effectiveness measurement is not a clerical work. It requires the service of
experts in the field. In some cases evaluation process can be very complicated.
5. Objection of creativity
An important rule of advertising is that that the more creative the ad, more likely it is to be
successful. Sometimes, advertising agencies may differ with effectiveness testing because
of the feeling that the tests used for measuring the effectiveness may interfere with their
creativity and reduce their freedom in the creative designing of the ads. The success of an
ad is highly depends on its creativity. Therefore anything that reduces the creativity of
advertising also reduces its chance of success.
Methods of Pre-Testing
1) Focus Group Sessions
Members from the target market are invited to participate in the focus group session. The
proposed ad is presented before them an discussion is initiated on the topic. Usually a
skilled person will moderate the session and note down the opinions and suggestions of the
focus group. Focus group sessions are exceptionally useful gathering preliminary
impressions and evaluations of the ad and ad concept.
2) One-to-One Interviews
This involves one-on-one discussion with the respondents from the target audience. The
success of this method depends on efficiency of the interviewer. The ad copy is discussed
with then respondent and collects his valuable information and ideas about the ad.
5) Questionnaire Method
It is a list of questions related to the advertisement. The questionnaire provides space for
answers. The draft of an advertisement along with the questionnaire is sent to a group of
target consumers or advertising experts. Their opinions are collected and analysed to find
out whether the proposed advertisement is satisfactory or not.
1.The testing method should provide measurement which are relevant to the objectives of
the advertising.
2.A good copy testing system must clearly specify about the use of results in advance of
each specific test.
3.A good copy testing system provides multiple measurement because single
measurements are generally inadequate assess the performance of an advertisement.
5) A good copy testing system does not make hurry in reaching conclusions. The
experiments are repeated several times arrive at a conclusion.
6) A good copy testing system avoids bias during the conduct of the testing process.
7) A good copy testing system applies careful judgment during the course of testing.
8) A good copy testing system recognizes that a more finished piece of ad copy can be
evaluated more soundly.
9) A good copy testing system ensures that the samples selected are representatives of the
target audience.
Objectives
3. The results are useful for making the adequate changes in the proposed ad. The results
are useful for improving future ads.
5. It saves the money of the advertiser by avoiding ineffective ads. It helps in planning future
ads.
6. It tells what the ad might achieve. It tells what the ad has achieved.
7. Test is conducted within the boundaries of the existing knowledge. Test is conducted
within the context of the market.
8. It indicates the likely impact and effectiveness of the ad. It indicates the actual impact.
1) It gives more accurate results as it is conducted after the release of an ad in real market
situations.
2) Post testing is ideal when the market area is small.
3) Inquiry Test
This test is conducted to know the impact of an ad on the basis of the inquiries received from
the target audience after the appearance of the ad in various media. In some cases, people
may send voluntary comments to the advertiser. In other cases, the response may be
stimulated by the advertiser. For the purpose of conducting test, the advertiser may request
for reply from the target audience by couponsor by offers in the ad. For example, lucky draw
or offering special discounts for persons submitting the coupons attached with the adat the
time of purchase.
3. Concurrent Testing
Concurrent Testing is done when the ad is running or in progress. Itis conducted during the
execution of the ad campaign and allows the advertiser to modify or cancel the ad. The
results of this test give information about the deficiencies of an ad in real time which helps
the advertiser to take correct the ad immediately. So concurrent test useful tool for
evaluating the effectiveness of an ad campaign.
2) Coincidental Surveys
Coincidental surveys measure advertising and media usage while consumers are exposed
to the media. Coincidental studies are basically used for broadcast media such as T.V. and
radio. Random calls are made to the consumers to know what channels or programmes they
are watching and whether they have seen or listened the ad. This helps the advertiser to
determine whether the consumers have noticed his ad or not.
4)Pantry/Store Checks
The advertiser appoints staff during the period of ad to visit the homes of the consumers in
the target market to make a survey of the brands purchased by them. They count the
products or brands currently stocked by a consumer, The consumer may also be asked
to keep empty packages of used products. This test helps the advertiser to know the impact
of his ad on the target customers.
5) Mechanical Tests
The response of the consumers to an ad can be tested with the help of devices are as
follows,
Techistoscope: It is used to project ads on a screen at a high speed and later it is slowed
down and checks whether the consumer recognizes a particular ad or not. It is also used to
know which part of an ad is more recognized by the consumers.
Camera test: It is used to observe the viewing behaviour of the consumers while watching
the ad by recording it with the help of a video camera.
Pupilometer: It is a type of pupil response monitor which I used to measure the amount of
dilation of the pupil in response to a visual stimulus. In concurrent testing, it is used
to study the changes in pupil of the eyes of the customers while seeing different ads and find
out the different advertising stimuli.
DAGMAR Model for Measuring Ad Effectiveness
DAGMAR stands for Defining Advertising Goals for Measured Advertising Results.' The
model was developed by Russell Colley in1961 for setting advertising objectives and
measuring advertising results. According to Colley, "Advertiser s job, purely and simply, is to
communicate to a defined audience, information and a frame of mind that stimulates action.
Steps in Purchase
As per DAGMAR, each purchase prospect goes through four step sand advertising objective
is to carry a consumer through these four levels of understanding;
1. Awareness
Consumer must be aware of the existence of a product offered by a company. The
fundamental task of advertising activity is to improve the consumer awareness of the
product. Awareness has to be created, developed, refined and maintained according to the
changes in the market scenario.
2. Comprehension
Awareness is not sufficient enough to stimulate a purchase Information and understanding
about the product and the organisation are essential. Therefore advertising has to give
detailed understanding about the product is and its benefits.
3. Conviction
In this stage, the customer evaluates different choices and formulates plans to buy the
product. Therefore, advertising has to play an important role in structuring the behavior of
the customers and persuade them to buy the brand advertised.
4. Action
This is the final step which involves the purchase of the product. These steps in DAGMAR
are also known as ACCA advertising formula developed for the measurement of advertising
effectiveness. It can be used as a tool to measure the effectiveness of advertising increasing
awareness, comprehension, conviction and action among the target customers.
Effective promotion is a key component of the marketing mix. It is the element that helps
firms to attract customers, persuade them to buy, and generate loyalty. The aim of
promotion is to increase awareness, create interest, generate sales and create brand loyalty.
Promotion mix describes a combination of different elements used by a firm for the effective
promotion of its products in the target market.
1. Advertising
Advertisement is a form of paid communication used to persuade the target market to take
some action with respect to products, ideas, or services. Advertisements are made through
various media including both print and electronic media such as newspapers, magazines,
television, radio and websites. It also helps in reaching the customers quickly.
2. Publicity
Publicity can be simply defined as no cost (free) advertisement. Itis a non-paid form of
promotion. In this type of promotion, firm uses media to publish news coverage (Features,
Articles, Editorials, Stories and Documentaries) about its products. The intention of the firm
is to It is commercially significant news about a product in Newspapers, Radio, Television or
Internet at free of cost.
3. Personal Selling
Personal selling is oral communication with potential buyers of a product with the intention of
making a sale. It is the oldest form of product promotion. It helps and encourages customers
to purchase goods through the use of oral presentation. They search, identify, meet,
communicate and convince the customers to carry out sales in personal selling. Sometimes
sales force communicates with theprospective customers over phone and email.
4. Direct Marketing
In this type of promotion, a company deals with its customers directly without the help of any
intermediaries. For example banking services, tele marketing, internet marketing etc. The
company directly sell sits products to the customer. Successful direct marketing involves
compiling and maintaining a large database of personal information about potential
customers. These databases are often sold or shared with other direct marketing
companies.
5. Sales Promotion
Sales promotion is the process of persuading a potential customer to buy the product. It
attempts to provide added values or incentives to consumers, wholesalers, retailers and
customers to promote immediate sales.
Sales Promotion
Sales promotion is the key ingredient of promotion mix. It includes several oommunications
activities that attempt to provide added values or incentives to consumers, wholesalers,
retailers and customers to promote immediate sales.
Definitions
According to Philip Kotler sales promotion has 3 distinctive characteristics. They are;
Communication: Sales promotion usually provides information that may lead the customer to
the product.
Incentive: It incorporates some concession, inducement, or contribution that gives value to
the consumer.
Invitation: It includes a distinct invitation to engage in the transaction immediately.
The following are some of the salient features of sales promotion
1 It is a set of inducements offered by a firm to promote immediate sales.
2 It may be offered directly to the customers or through middlemen
3 t does not include personal selling, advertisement and publicity It is usually offered for a
short period of time
5 There are numerous schemes or techniques of sales promotion
6. It focuses on a small group of consumers
Advertising, personal selling and other methods of promotion produce slower sales response
compared to sales promotion. Sales promotions are mostly used for short duration, for a
specified period leading to a sense of urgency in consumers to buy now. This creates an
immediate positive impact on sales.
3.Competitive advantage
Attracts customers
Sales promotions are very effective in treating interest in product. Creating interest is
considered as the most important use of sales promotion. Appealing sales promotions
increase attraction of the consumers to the products.
The most important use of sales promotion is to build demand by convincing customers to
make a purchase. Special promotions
They are directed to the members of the distribution channel. The objectives of Trade
Oriented Sales Promotion are to obtain distribution for new products, maintain trade support
for established brands and encourage retailers to display brands.
They are aimed at consumers. The major objectives are inducing people to buy the product
and make repeated purchases, increasing the consumption of the brand, retaining current
customers and attracting new targeting a new market and supporting the advertising and
marketing efforts of the company.
3.sales force promotions
They are aimed at the sales personnel. They are intended motivate sales people to put in
more efforts to increase sales .
1.Importance to Consumers
2)Sales promotions offer various incentives like rebates & free discounts, free samples to
consumers.
3) Various incentives contents samples, demonstrations, fair and exhibitions create thrill and
joy in the life of consumers.
4) Sales promotion increases sales volume and reduces the unit cost of production which
results in the reduction of product price.
2. Importance to Producers
3. Importance to Middlemen
2) Through sales promotional plans, manufacturers provide various types of helps such as
rebates, trade discounts, gifts rewards to dealers.
3) Good relationship between the dealers & the customer's.
Role of Sales Promotion
The major roles of sales promotion in marketing are as follows,
1. It popularizes goods and services of the producer among the target consumers and
motivates them towards larger purchases.
2. Maintains the sales up to normal level even during seasonal vacations & during the
declining stage of product life cycle.
3. Increases the goodwill of the firm.
4. Simplifies the efforts of sales force and motivates them for larger purchase.
5. Stimulates maximum sales on special occasions and festivals
6. Acts as tool to overcome competition.
7. Facilitates the introduction of new products.
8. Facilitates co-ordination and proper link between advertising and personal selling.
Differences between Advertisement and Sales Promotion
1.It uses a variety of persuasive appels to influence the customer. It offers several incentive
to the customer to buy the product.
2. A reason is offered to buy a product or service. An incentive is offered to buy a product or
service.
3.The primary objective is to create a long lasting brand image. The primary objective is to
get quick sales of products.
4.It is an indirect approach towards persuading customers to buy a product or service. It is a
direct approach to induce consumers to buy temporarily changing the existing price value
relationship of the product or service.
5.Time frame of advertising is long term. Time frame is short term.
6.It tries to attract the ultimate consumers. It tries to attract not only consumers but retailers,
wholesalers and sales force.
Methods and Techniques of Sales Promotion
1.Consumer protection Techniques
These techniques are as follows,
1) Couponing
It is a scheme of distributing discount coupons to the customer Coupons are paper offers
that are available in magazines a newspapers, may be downloaded from the internet or are
available the point-of-purchase and entitle the recipient to a reduction in price for a product
or service.
2) Sampling
It refers to offering free product samples to consumers for trial and use. Sampling provides
the consumer with the opportunity to use the product by giving a free small portion of the
product for the consumer to test.
3) Rebates
They are money-back offers requiring a buyer to mail in a form requesting the money back
from the manufacturer rather than from the retailer.
4) Gifts/Free offer
In this scheme, customers are entitled to get gifts while purchasing a brand.
6) Quantity-off offers
It refers to offering more quantity of a product at the regular price.
1) Buying allowance
Special allowances offered to dealers to motivate them to purchase a new product.
3) Merchandise allowances
These allowances are offered to meet the promotional expenses incurred by a dealer in
connection with the sale of a brand. Merchandise allowances include advertising allowance,
display allowance etc
4) Bulk discount
It refers to reduction in price offered to a dealer for purchasing the product in large
quantities.
2)Gifts
Salesmen will be given gifts for inducing them to boost the sale of the product.
3) Salesforce meet
Sales force meet will be organised by the companies to educate and train the salesmen to
promote the sales of the product. Sales promotion Strategies
1. Push Strategy
A push sales promotion strategy involves pushing distributors and retailers to sell the
products of a firm to the consumer by offering various kinds of promotions and personal
selling efforts. In this strategy, a company promotes its products to a dealer who in turn
promotes it to the retailer or to the consumer. The basic objective of this strategy is to
encourage the middlemen to give maximum promotion to a brand. Special schemes and
incentives are offered to the middlemen involved to promote the brand in the target market.
2.Pull Strategy
A pull sales promotion strategy concentrates on the consumers instead of the middlemen
involved in marketing. This strategy offers discounts and other benefits to the consumers so
as to encourage them to purchase a brand. Typical pull sales promotion strategies include;
gift coupons, cash refunds, rebates, contests etc.
.
3.Combination Strategy
A combination sales promotion strategy is a mixture of a push and a pull strategy. It focuses
both on the middlemen as well as the consumers. It offers special incentives to both the
middleman and consumers so as to boost the sales of a product
2. Profit Evaluation
Comparative analysis of the amount and rate of profit before and after the implementation of
sales promotion strategies helps to evaluate the effectiveness of the sale promotion
strategies. The sales promotion strategies are considered effective when the additional
profits generated are more than the cost of sales promotion.
3.Evaluation of Brand Awareness
Understanding the increase in brand awareness is another important method for evaluating
sales promotion strategies. If the customers have high brand awareness after sales
promotion campaigns, then the sales promotion programmes implemented by the firm is
considered effective. Customer surveys are usually conducted by firms to determine brand
familiarity before and after the sales promotion.
2.Consumers get lot of incentives and inducements without paying more on a product.
4.It gives the consumers a reason to buy a particular brand compared to other brand. A
brand offered through sales promotion strategies give some extra benefits to the customers.
5. Companies can dispose off their existing stock easily (sock clearance sale is a sales
promotion tool).
7. Sales promotion helps firms to sell additional products along with the brand. It is called
cross-selling. Another advantage is selling of costly products along with the brand by
encouraging them to buy a premium product when they visit the store. It is called up-selling.
8. Sales promotion can be used to easily clear the stock (stock clearance sales) in situations
where product replacement is needed (e.g., products nearing expiration date, clearing
inventory to make space for new models).
9. Compared to other types of promotion, most of the sales promotion techniques can be
quickly created and made available within a market.
10. When compared with advertising and personal selling, sales promotion activities are less
expensive.
1. Sales promotion measures are usually offered for a short period of time.
2.Lack of support from middlemen involved. For example, if the manufacturers announces
sales promotion schemes, the success of such schemes depends on the co-operation and
support front the wholesalers and retailers.
3.Consumers may suspect the quality of the product. There is a belief among the customers
that incentives are usually given for substandard products and old stock.
4.Repeated and overuse of sales promotion strategies reduce the trust among the
customers related with the brand. It may condition the mind of customers to believe that the
lower price is the original price of the brand. It also generates a doubt among the customers
about the quality of the brand compared to the brands offered by the competitors.
6.There is a tendency to use the same method of sales promotion by all the firms at the
same time. Such an approach may not benefit all. If all the manufacturers of refrigerators
offer off season discount (during monsoon), the consumers take their buying decision based
on brand image.
Sales promotion budget refers to the amount of money set aside for sales promotion
activities. A sales promotion budget estimates the cost of sales promotion campaign so as to
avoid over spending and under spending on sales promotion activities. Before deciding the
money allocated to sales promotion, a firm evaluates relevant factors such as type of
product, its stage in product life cycle, the market situation, level of competitive activity, etc.
All these factors influence the sales promotion budget
There are five important techniques that are commonly used to prepare budget and allocate
funds to sales promotion;
2.Frequently conducted sales promotions can lead consumers to buy the brand at
discounted prices.
3. Consumers will be unwilling to buy the brand at its earlier (pre-promotion) prices. This
may lead to a situation of permanent cut in the price of a brand.
4.Consumers may reduce or stop their purchases of the brand following frequent sales
promotions as the brand may lose its popularity due to excessive promotions.
MODULE- 5
PERSONAL SELLING
Personal selling is oral communication with potential buyers of product with the intention of
making a sale. It helps and encourages customers to purchase goods through the use of
oral presentation. In comparison to other promotion tools personal selling differs in the
following ways;
1. It uses fewer resources of the firm.
2. Active involvement of the sales personnel.
3. Price is negotiated.
4. Selling of complex products are involved (Selling of a car is an example. The customer
requires the help of a sales person to understand its important features).
5. There is some contact between buyer and seller at the time of sale and after the sale.
6.The purchase tends to involve large sums of money.
Definition
1. The American Marketing Association defines personal selling as "an oral presentation in
conversation with one or more prospective purchases for the purpose of making sales."
Philip Kotler defines personal selling as "a face-to-face interaction with prospective
purchasers for the purpose of making sales."
1.Personal selling is the interpersonal part of the promotion mix and can include face-to-face
communication, telephone communication and video or web conferencing.
2. It involves an individual acting for a company by performing one or more of the activities
such as prospecting (searching), communicating, information gathering and Servicing.
3.Personal selling involves the two-way flow of communication between a buyer and seller,
designed to influence a persons or groups purchase decision.
6. Personal selling is an education process. The sales force educates the customers about
the benefit and usage of the product.
Importance of Personal Selling
2) Personal selling provides information to the customers about the new products introduced
in the market.
3) Through personal selling that customers come to know about the use of new products in
the market. The sellers demonstrate the product before the buyers and explain the use of
the products.
4) Personal selling gives an opportunity to the customers to register their complaints and
difficulties in using the product and get them settled immediately.
In common parlance, personal selling and salesmanship are used interchangeably. But,
Salesmanship is one of the skills required in personal selling. Salesmanship is the art of
successfully persuading the buyer to buy the products
2. Persuasion
The seller persuades the prospective customers to buy the product. The salesman must
possess the skill to convince the customers to create an interest in the mind of the
customers to buy and use the product.
3. Flexibility
Personal selling is a flexible tool in promoting sales and can adapt to the need of specific
buyer. Salesman can present his ideas or message to fit the needs of the buyer. His
presentation is different in each case tailored to suit the buyer. He can observe the
customer's reaction to a particular sales approach and makes necessary adjustment in his
way of presentation on the spot.
4. Promotion of sales
The focal point of personal selling is to increase sales by encouraging more and more
customers to buy the product.
5.Supply of information
Personal selling gives valuable information to the customers regarding availability of the
product, benefits and usage of the products.
6. Mutual benefit
It is a two-way process. Both seller and buyer derive benefit from it. Customers feel satisfied
with the goods and the seller enjoys the profits
2.Creating interest
Personal selling involves person-to-person communication nake it a natural method for
getting customers to experience a product 1orthe first time. Creating interest goes hand-in-
hand with building product awareness as salesmen can accomplish both objectives during
the first meeting with a potential customer.
3. Providing information
When salesmen meet customers, a large part of the conversation focuses on product
information. Marketing organisations provide their sales staff with large amounts of sales
support including brochures, research reports and many other forms of informational
materials.
4. Stimulating demand
A major purpose of personal selling is to convince customers to make a purchase.
Companies train their sales force to to gain customer orders.
5.Reinforcing the brand
Most personal selling is intended to build long-term relationships with customers. A strong
relationship can facilitate regular communication with a customer. Meeting with customers
on a regular basis allows salesmen to strengthen customers' knowledge of the brands
offered.
2.Sales personnel get adequate time to demonstrate and explain the features of the product
to the customers.
3. The customers can negotiate the price, payment and delivery terms with the sales
personnel.
4. Frequent meetings between sales force and customer provide an opportunity to build
good long-term relationships.
5.Feedback of customers can be easily collected.
3. Approaching
After collecting all relevant information of a prospective buyer, the salesman should
approach the customer in a polite and dignified way and introduce himself and his product. A
counter-sales person should be very careful in attending the customer. If he is busy in
attending other customers, he should assure the new customer thathe would be attended
very soon. He should be careful in his first impression.
4. Presentation
The sales person, in this stage has to gain the attention of the customer. For this purpose,
he should present his product and describe its characteristics in brief. He should understand
the attitude of the customer and match with his attitude so that he may be able to hold his
attention and create interest in the product.
5. Demonstration
Demonstration is one of the bet methods of presentation. If necessary, the salesperson
should display and demonstrate the working of the product. He should explain and describe
the utility of the product in brief through demonstration so that the customer realises the
need for the product to satisfy his wants.
6. Handling objections
As every customer wants to make a best bargain for the money he is spending, presentation
and demonstration of the product are likely to create some doubts and objections in the
minds of the prospects. The sales person should be ready to clear all doubts and queries of
the customer.
1. Negotiations
Personal selling is affected through negotiation to arrive at an agreement on the price and
other terms and conditions of sale. IN negotiated exchange, price and other terms are set via
bargaining behaviour. Although price is the most frequently negotiated issue, other issues
include quality of goods and service offered, purchase volume, responsibility of financing,
risk taking and product safety.
2. Selling strategy
Personal selling operations involve selling strategy and planning. Selling strategy is more
effective than negotiation. It involves determining personal selling objectives, sales policies,
formulation of sales strategies, determining the selling appropriation and management of the
sales force. Consumers have different needs and the sales person has to adopt different
selling strategies to address those needs.
3. AIDAS Approach
This approach is very popular in sales. It includes attention, interest, Desire, action and
satisfaction. It is a buyers-oriented formula because it emphasizes the customer's needs and
problems. According to this approach the first goal is to secure attention of the customer.
The second goal is gaining interest, the next goal is to arouse desire. The fourth goal is to
induce an action that is to buy and the last goals to build satisfaction by reassuring the
customer that his decision was correct.
4. Stimulus-Response model
The sales person provides the stimuli to purchase through his words and actions. The words
and actions of the sales person may result in a favourable response from the customer
(purchasing the product).
1. Transactional
Transactional sales persons are those who wait for the transaction to make their sale. They
are order-takers because they passively sitby waiting for the sale to come to them. Most of
these sales persons work in a retail environment where the primary job is to help the buyerto
find the product he is already looking for and then close the sale.
2. Relational
The relational salesperson tries for better relationship with customers. Relational
salesperson good at quickly building rapport with the customer and gets sales because the
buyer likes him. A relational salesman establishes long-term relationship with a customer
that brings the customer back for repeated business.
3. Closers
A large number of the sales force in different industries is closers. They always try to close
the deal on a sale. This type of salesperson constantly leads the customer toward the goal of
closing the deal. The immediate goal of this salesman is closing the sale. Relationship with
the customers is secondary for them.
4. Consultants
Consultants are salespersons who know how to close a deal andbuild relationships at the
same time. Consultants patiently listen to customer requirements and help them to meet the
requirements. Consultants have superior listening skills and are patient with customers.
Principles of Personal Selling
2. Building relationships
Building strong relationships with the customers is another major principle of personal
selling. This will help companies to make repeated dealings with a customer. Sales force has
to maintain profitable long-term relationships with customers by creating superior customer
value and satisfaction.
3. Professionalism
Personal selling must be effective and equally beneficial to both the company and the
customer. It should be one that exclusively meant for the benefit of the company. The
customer should get the right product and the company should get sufficient profit. It must be
executed in a professional manner which is free from all anomalies. The sales force has to
use truthful, non-manipulative tactics to satisfy the long-term needs of both the customer and
the selling firm.
4. Effective organisation
Effective organisation is required in setting of daily sales goals and activities, documentation
of customer details and scheduling of customer meetings. Disorganization may result in lost
deals and sales opportunities. It can also cause a lack of preparation for sales meetings
which can disturb clients and result in higher stress.
5. Consultative selling
lt is the process of helping the customers to meet their needs by using the products,
services, and expertise of the organisation. The Sales man acts as a consultant and helping
the customers to choose the right product.
7. Customer orientation
The sales force has to give maximum possible importance to the interests of the customers.
They have to treat customer needs as their own.
Sales force is the link between a firm and its customers. They need to be careful in
designing and structuring sales force. The success of a brand does not only require effective
marketing and advertising strategies, but it also requires efficient sales force. A very
important aspect of marketing that generates business is the efficient and effective use of
sales force. Managing Customer relations essentially needs a well-trained Sales Force. The
Sale Force is responsible for all the contacts that are made with the customers, keeps a
record of all the data and interacting with them to generate sales.
Qualitative objectives
(1) To do the entire selling job.
(2) To search out and obtain new customers.
(3) To secure and maintain customers co-operation in promoting the sales of the product.
(4) To provide technical advice and assistance to customers.
(5) To collect and report market information to company management.
Quantitative Objectives
(1) To capture and retain a certain market share.
(2) To keep personal selling expenses within set limits.
(3) To secure targeted percentage of business.
(1) Territorial sales force structure: This structure is used where every sales representative is
assigned specific geographical area.
(2) Product sales force structure: In this structure, sales people specialise in selling only a
portion of the company's products or lines. For example, a company producing consumer
products and industrial products uses two sets of sales force to deal with these two types of
products.
(3) Customer sales force structure: In customer sales force structure, salespeople specialise
in selling only to certain customers or industries.
(4) Complex sales force structure: In this structure, sales force sells a wide variety of
products to many types to customers located in a wide geographical area. This structure
combines several types of sales force structures.
(1) Straight Salary Plan: It is a plan which pays only a specified amount to salesmen as
salary. No commission is included in this plan.
(2) Straight Commission Plan: This is a compensation plan which pays only a percentage of
sales volume as commission to the sales people. No salary is paid to them.
(3) Salary plus Commission Plan: As per this plan, salesmen receive a guaranteed base
salary amount and also earn an undefined amount of commission based on the amount of
sales they make.
Supervision is necessary to lead the sales force he targeted sales goals. Supervision helps
the management to improve the job performance of the sales force. Through supervision the
sales force is directed to Perform the selling job in accordance with the marketing objectives
and sales policies of the company.
6) Decision making
The last step of the process is to take decisions which can be taken either to improve the
performance of the employees, take the required corrective actions, or decisions like
training, rewards, promotions, demotions, transfers etc.
9) Mental qualities
Characteristics such as analytical ability, intelligence, conceptual skills, etc, are also
essential for a good salesperson. He should be able to apply his mind to various problems of
customers.
16) Organized
Organisational skills are extremely important in sales, when dealing with dozens of people
with different personalities, needs and timetables. Daily goals and activities should be well
documented and appointments should be scheduled in advance. An organized salesforce is
punctual in their work. Disorganization may result in lost deals and sales opportunities. It can
also cause a lack of preparation for sales meetings which can disturb clients and result in
higher stress.