IIMM/DH/02/2006/8154, Advertising & Sales Promotion

Q.1 (a) Advertising is considered as the backbone of the business, define advertising, explain how the process functions? Answer:- AdvertisingTechniques and practices used to bring products, services, opinions, or causes to public notice for the purpose of persuading the public to respond in a certain way. Weekly newspapers in London first carried ments in the 17th century; by the 18th century such advertising was flourishing. The first advertising agencies were established in the 19th century to broker for space in newspapers, and by the early 20th century agencies were producing the advertising message itself, including copy and artwork. Most advertising promotes goods for sale, but similar methods are used in public service messages to promote causes, charities, or political candidates. In many countries, advertising is the most important source of income for the media through which it is conducted. In addition to newspapers, magazines, and broadcast media, advertising media include direct mail (see direct-mail marketing), billboards and posters, transit advertising, the Internet, and promotional items such as matchbooks or calendars. rs attempt to choose media that are favoured by the rs' target audience. Paid message communicated through the various media by industry, business firms, nonprofit organizations, or individuals. Advertising is persuasive and informational and is designed to influence the purchasing behavior and/or thought patterns of the audience. Advertising is a marketing tool and may be used in combination with Sales Promotions, Personal Selling tactics, or publicity. Advertising is often thought of as the paid, non-personal promotion of a cause, idea, product, or service by an identified sponsor attempting to inform or persuade a particular target audience. Advertising has taken many different forms since the beginning of time. For instance, archaeo-logists have uncovered walls painted in Rome announcing gladiator fights as well as rock paintings along Phoenician trade routes used to wares. From this early beginning, advertising has evolved to take a variety of forms and to permeate nearly every aspect of modern society. The various delivery mechanisms for advertising include banners at sporting events, billboards, Internet Web sites, logos on clothing, magazines, newspapers, radio spots, and television commercials. Advertising has so permeated everyday life that individuals can expect to be exposed to more than 1,200 different messages each day. While advertising may seem like the perfect way to get a message out, it does have several limitations, the most commonly noted ones being its inability to (1) focus on an individual consumer's specific needs, (2) provide in-depth information about a product, and (3) be cost-effective for small companies. “ADVERTISING is a paid form of communicating a message by the use of various media. It is persuasive, informative, and designed to influence purchasing behavior or thought patterns”. Now a days, Advertising has assumed important role in this very fast developing and competitive world. In order to understand it first we have to know what it means or in other words to know its definition. But before we define we must know i.e. six segments of the definition of advertising: Six Segments: 1.

It is paid form of communication.

2.

The Sponsor is identified.

3. Most advertising tries to persuade or influence consumer to do. Something though in some cases it is merely to make consumers aware of product or company. Message is conveyed through different types of media. 4.

Advertising makes message reach large audience of potential consumers. 1


5. Advertising is a form of mass communication therefore it is non- personal. Based on the above the most accepted standard definition universally accepted is as described by Bovee in 1992. It said: "Advertising is the non - personal communication of information usually persuasive in nature about products, services or ideas by identified sponsors through the various media" Let me now try to DISECT & EXPLAIN key PERSONAL and NON – PERSONAL used in the definition of advertising. There are two basic ways to sell Personally & Non-Personally 1.

Personal selling – Where seller & buyer has to be together. 2. Non – Personal - Seller is approached through a medium i.e. advertising.

A picturesque way of putting it is to call it business imagination, an imagination that sees in a product possibilities which can be realized only by appealing to the public in new ways to create a desire where none existed before. It is a very broad word, an omnibus word conveying different ideas to different people. No advertising definition is here possible except as this entire article may be accepted as a definition. So rapidly has advertising advanced through its various changes that even the latest dictionaries and encyclopedias are out of date in their attempts to define it. The advertising of yesterday is not the advertising of today. Men not so very old have witnessed its entire development from an untrustworthy instrument of quacks to its place as an engine in the conduct and expansion of business. Advertising in the dictionary sense has a history as old as that of the human race. Just as soon as there were enough people in the world, some sort of formal announcement had to be made. The early history of such announcements from proclamations to the beginning of pictorial and lettered inscriptions, from these primitive posters to the discovery of printing, and from the advent of printing to the beginning of real advertising - is of interest only to the archaeologist. It is of no value to the business entrepreneur. It would be of no assistance to understanding modern advertising than ancient Phoenicians coins would be to comprehending the principles of a modern bank. Every attempt to secure the sale of a product or service is advertising. The wares of the primitive merchant displayed invitingly in front of his booth is advertising. A want ad, to secure a job or an employee, is advertising. An inscription on a wall, the barker in front of a side show, the promises of an internet marketer, the announcement of a new online technology, hip in an program, wearing a peculiar shirt or distinctive sticker in your car - all these are forms of advertising in that they seek to attract attention to a product or a service that is for sale. For a product or a service of general use, rich and poor, high and low, men, women and even children, must be appealed to. At least one principle we know of, stays constant, not eroding with the ing of time or the use and or abuse of men, not concerned with the weather outside, nor considering your personal health status, or taking into your surrounding circumstances, and that is that you have to keep doing it, it has to be fed, no way around it, it keeps asking for every ounce of your commitment if you expect any kind of visible returns. Whatever the appropriate definition of ment is, one thing is to conclude, it is because it has been.And every succeeding year since the beginning of the human entrepreneurship it has left its precious deposit of new ideas, better methods, larger and swifter efficiency, and the promise of an even greater growth. 2


Forms and Functions of Advertising Advertising is considered as the backbone of the business, the advertising defines the business in well manner, and without advertising we cannot assume the good form of business. There are various forms of Advertising which define the business and we also discuss the process functions for advertising. Advertising can take a number of forms, including advocacy, comparative, cooperative, direct-mail, informational, institutional, outdoor, persuasive, product, reminder, point-of-purchase, and specialty advertising. Advocacy Advertising Advocacy advertising is normally thought of as any ment, message, or public communication regarding economic, political, or social issues. The advertising campaign is designed to persuade public opinion regarding a specific issue important in the public arena. The ultimate goal of advocacy advertising usually relates to the age of pending state or federal legislation. Almost all nonprofit groups use some form of advocacy advertising to influence the public's attitude toward a particular issue. One of the largest and most powerful nonprofit advocacy groups is the American Association of Retired Persons (AARP). The AARP fights to protect social programs such as Medicare and Social Security for senior citizens by encouraging its to write their legislators, using television ments to appeal to emotions, and publishing a monthly newsletter describing recent state and federal legislative action. Other major nonprofit advocacy groups include the environmental organization Green-peace, Mothers Against Drunk Driving (MADD), and the National Rifle Association (NRA). Comparative Advertising Comparative advertising compares one brand directly or indirectly with one or more competing brands. This advertising technique is very common and is used by nearly every major industry, including airlines and automobile manufacturers. One drawback of comparative advertising is that customers have become more skeptical about claims made by a company about its competitors because accurate information has not always been provided, thus making the effectiveness of comparison advertising questionable. In addition, companies that engage in comparative advertising must be careful not to misinform the public about a competitor's product. Incorrect or misleading information may trigger a lawsuit by the aggrieved company or regulatory action by a governmental agency such as the Federal Trade Commission (FTC). Cooperative Advertising Cooperative advertising is a system that allows two parties to share advertising costs. Manufacturers and distributors, because of their shared interest in selling the product, usually use this cooperative advertising technique. An example might be when a soft-drink manufacturer and a local grocery store split the cost of advertising the manufacturer's soft drinks; both the manufacturer and the store benefit from increased store traffic and its associated sales. Cooperative advertising is especially appealing to small storeowners who, on their own, could not afford to the product adequately. Direct-Mail Advertising Catalogues, flyers, letters, and postcards are just a few of the direct-mail advertising options. Direct-mail advertising has several advantages, including detail of information, personalization, selectivity, and speed. But while direct mail has advantages, it carries an expensive per-head price, is dependent on the appropriateness of the mailing list, and is resented by some customers, who consider it "junk mail." Informational Advertising In informational advertising, which is used when a new product is first being introduced, the emphasis is on promoting the product name, benefits, and possible uses. Car manufacturers used this strategy when sport utility vehicles (SUVs) were first introduced. Institutional Advertising Institutional advertising takes a much broader approach, concentrating on the benefits, concept, idea, or philosophy of a particular industry. Companies often use it to promote image-building activities, such an environmentally friendly business practices or new community-based programs that it sponsors. Institutional advertising is closely related to public relations, since both are interested in promoting a positive image of the company to the public. As an example, a large lumber company may develop an advertising theme around its practice of planting trees in areas where they have just been harvested. A theme of this nature keeps the company's name in a positive light with the general public because the replanting of trees is viewed positively by most people. 3


Outdoor Advertising Billboards and messages painted on the side of buildings are common forms of outdoor advertising, which is often used when quick, simple ideas are being promoted. Since repetition is the key to successful promotion, outdoor advertising is most effective when located along heavily traveled city streets and when the product being promoted can be purchased locally. Only about 1 percent of advertising is conducted in this manner. Persuasive Advertising Persuasive advertising is used after a product has been introduced to customers. The primary goal is for a company to build selective demand for its product. For example, automobile manufacturers often produce special ments promoting the safety features of their vehicles. This type of ment could allow automobile manufactures to charge more for their products because of the perceived higher quality the safety features afford. Product Advertising Product advertising pertains to nonpersonal selling of a specific product. An example is a regular television commercial promoting a soft drink. The primary purpose of the ment is to promote the specific soft drink, not the entire soft-drink line of a company. Reminder Advertising Reminder advertising is used for products that have entered the mature stage of the product life cycle. The ments are simply designed to remind customers about the product and to maintain awareness. For example, detergent producers spend a considerable amount of money each year promoting their products to remind customers that their products are still available and for sale. Point-of-Purchase Advertising Point-of-purchase advertising uses displays or other promotional items near the product that is being sold. The primary motivation is to attract customers to the display so that they will purchase the product. Stores are more likely to use point-of-purchase displays if they have help from the manufacturer in setting them up or if the manufacturer provides easy instructions on how to use the displays. Thus, promotional items from manufacturers who provide the best instructions or help are more likely to be used by the retail stores. Specialty Advertising Specialty advertising is a form of sales promotion designed to increase public recognition of a company's name. A company can have its name put on a variety of items, such as caps, glassware, gym bags, jackets, key chains, and pens. The value of specialty advertising varies depending on how long the items used in the effort last. Most companies are successful in achieving their goals for increasing public recognition and sales through these efforts. Advertising Objectives Advertising objectives are the communication tasks to be accomplished with specific customers that a company is trying to reach during a particular time frame. A company that s usually strives to achieve one of four advertising objectives: trial, continuity, brand switching, and switchback. Which of the four advertising objectives is selected usually depends on where the product is in its life cycle. Trial The purpose of the trial objective is to encourage customers to make an initial purchase of a new product. Companies will typically employ creative advertising strategies in order to cut through other competing ments. The reason is simple: Without that first trial of a product by customers, there will not be any re peat purchases. Continuity Continuity advertising is a strategy to keep current customers using a particular product. Existing customers are targeted and are usually provided new and different information about a product that is designed to build consumer loyalty. Brand Switching Companies adopt brand switching as an objective when they want customers to switch from competitors' brands to their brands. A common strategy is for a company to compare product price or quality in order to convince customers to switch to its product brand.

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Switchback Companies subscribe to this advertising objective when they want to get back former s of their product brand. A company might highlight new product features, price reductions, or other important product information in order to get former customers of its product to switchback. Advertising Budget Once an advertising objective has been selected, companies must then set an advertising budget for each product. Developing such a budget can be a difficult process because brand managers want to receive a large resource allocation to promote their products. Overall, the advertising budget should be established so as to be congruent with overall company objectives. Before establishing an advertising budget, companies must take into consideration other market factors, such as advertising frequency, competition and clutter, market share, product differentiation, and stage in the product life cycle. Advertising Frequency Advertising frequency refers to the number of times an ment is repeated during a given time period to promote a product's name, message, and other important information. A larger advertising budget is required in order to achieve a high advertising frequency: Estimates have been put forward that a consumer needs to come in with an advertising message nine times before it will be ed. Competition and Clutter Highly competitive product markets, such as the soft-drink industry, require higher advertising budgets just to stay even with competitors. If a company wants to be a leader in an industry, then a substantial advertising budget must be earmarked every year. Examples abound of companies that spend millions of dollars on advertising in order to be key players in their respective industries (e.g., Coca Cola and General Motors). Market Share Desired market share is also an important factor in establishing an advertising budget. Increasing market share normally requires a large advertising budget because a company's competitors counterattack with their own advertising blitz. Successfully increasing market share depends on ment quality, competitor responses, and product demand and quality. Product Differentiation How customers perceive products is also important to the budget-setting process. Product differentiation is often necessary in competitive markets where customers have a hard time differentiating between products. For example, product differentiation might be necessary when a new laundry detergent is d: Since so many brands of detergent already exist, an aggressive advertising campaign would be required. Without this aggressive advertising, customers would not be aware of the product's availability and how it differs from other products on the market. The advertising budget is higher in order to pay for the additional advertising. Stage in the Product Life Cycle New product offerings require considerably more advertising to make customers aware of their existence. As a product moves through the product life cycle, fewer and fewer advertising resources are needed because the product has become known and has developed an established buyer base. Advertising budgets are typically highest for a particular product during the introduction stage and gradually decline as the product matures. Selecting the Right Advertising Approach Once a company decides what type of specific advertising campaign it wants to use, it must decide what approach should carry the message. A company is interested in a number of areas regarding advertising, such as frequency, media impact, media timing, and reach. Frequency Frequency refers to the average number of times that an average consumer is exposed to the advertising campaign. A company usually establishes frequency goals, which can vary for each advertising campaign. For example, a company might want to have the average consumer exposed to the message at least six times during the advertising campaign. This number might seem high, but in a crowded and competitive market repetition is one of the best methods to increase the product's visibility and to increase company sales. The more exposure a company desires for its product, the more expensive the advertising campaign. Thus, often only large companies can afford to have high-frequency ments during a campaign. 5


Media Impact Media impact generally refers to how effective advertising will be through the various media outlets (e.g., television, Internet, print). A company must decide, based on its product, the best method to maximize consumer interest and awareness. For example, a company promoting a new laundry detergent might fare better with television commercials rather than simple print ads because more consumers are likely to see the television commercial. Similarly, a company such as Mercedes-Benz, which markets expensive products, might in specialty car magazines to reach a high percentage of its potential customers. Before any money is spent on any advertising media, a thorough analysis is done of each one's strengths and weaknesses in comparison to the cost. Once the analysis is done, the company will make the best decision possible and embark on its advertising campaign. Media Timing Another major consideration for any company engaging in an advertising campaign is when to run the ments. For example, some companies run ads during the holidays to promote season-specific products. The other major consideration for a company is whether it wants to employ a continuous or pulsing pattern of ments. Continuous refers to ments that are run on a scheduled basis for a given time period. The advantage of this tactic is that an advertising campaign can run longer and might provide more exposure over time. For example, a company could run an advertising campaign for a particular product that lasts years with the hope of keeping the product in the minds of customers. Pulsing indicates that ments will be scheduled in a disproportionate manner within a given time frame. Thus, a company could run thirty-two television commercials over a three-or six-month period to promote the specific product is wants to sell. The advantage with the pulsing strategy is twofold. The company could spend less money on advertising over a shorter time period but still gain the same recognition because the advertising campaign is more intense. Reach Reach refers to the percentage of customers in the target market who are exposed to the advertising campaign for a given time period. A company might have a goal of reaching at least 80 percent of its target audience during a given time frame. The goal is to be as close to 100 percent as possible, because the more the target audience is exposed to the message, the higher the chance of future sales.

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Q. 1 (b) ‘Appeal’ plays an important role in the field of ment, be it in any type of media. Bring out importance and effects of appeal in advertising; your answer with examples. Answer:IntroductionAdvertising appeals are created for the purpose of activating human needs and desires The r has to determine the needs which can be targeted with the message. Taking a dekko at the human needs - As per Abraham Maslow physiological needs are the most basic of all human needs. An individual is first concerned about satisfying his basic needs like food, water ,sleep and other biological needs .Once these basic needs are satisfied , he looks up to satisfaction of the next higher order of needs and then the next and so on. Generally several needs operate simultaneously to generate a specific response from the consumer, but some are more important than the others. These are the ones to be identified and kept in mind by the r. Appeals and buying motives: Both of them are closely inter-linked to each other . Appeals provide the stimulus required for the customer to act. They are thus developed on the basis of buying motives. Kinds Appeals can be categorized into rational, emotional and moral appeals. Rational ones are aimed at the mind of the customer and set him thinking logically regarding the message contained in the ad. Sometimes there arises a conflict between the rational and emotional appeal but since there is no clear line of distinction or demarcation therefore it is difficult to segregate the two into separate compartments. Nevertheless some of the rational appeals are as under: (1) Performance- A writing instrument like Reynolds ball point pen that is sold on this platform (2) Usage-As in case of thermostat in a heat convector which cuts off the system on reaching a specific temperature. (3) Quality-A set of Bose speakers or a Nakamichi music system are considered the ultimate in of music performance which is its parameter for high quality. (4) Price- All types of coolers - both branded and unbranded are available in the market but many people go for the unbranded ones as they are much lower priced as compared to the branded ones as it is believed that so far as their working is concerned they will be giving a near same performance . (5) Longevity- as in case of a lubricant which needs to be changed only after 20000 kms. (6) Economy-in operating the Tata Indica in of fuel economy. (7) Resale value-as in the case of Bajaj scooters. Customers when asked the reason for purchasing a specific product often package it in of rational reasoning. Even if they have been purchased on emotional grounds, as happens in certain cases, the customer will not it  Advertising appeals aim to influence the way consumers view themselves and how buying certain products can prove to be beneficial for them. The message conveyed through advertising appeals influences the purchasing decisions of consumers.  Advertising appeals are designed in a way so as to create a positive image of the individuals who use certain products. Advertising agencies and companies use different types of advertising appeals to influence the purchasing decisions of people. Emotional Appeal 7


 An emotional appeal is related to an individual’s psychological and social needs for purchasing certain products and services. Many consumers are emotionally motivated or driven to make certain purchases. rs aim to cash in on the emotional appeal and this works particularly well where there is not much difference between multiple product brands and its offerings. Emotional appeal includes personal and social aspects. Personal Appeal Some personal emotions that can drive individuals to purchase products include safety, fear, love, humor, joy, happiness, sentiment, stimulation, pride, self esteem, pleasure, comfort, ambition, nostalgia etc. Social Appeal Social factors cause people to make purchases and include such aspects as recognition, respect, involvement, affiliation, rejection, acceptance, status and approval.

Rational Appeal 8


 Rational appeals aims to focus on the individual’s functional, utilitarian or practical needs for particular products and services. Such appeals emphasize the characteristics and features of the product and the service and how it would be beneficial to own or use the particular brand. Print media is particularly well suited for rational appeals and is often used with good success. It is also suited for business to business rs and for products that are complex and that need high degree of attention and involvement.

Bandwagon Appeal This type of advertising appeal is meant to signify that since everybody is doing something you should be a part of the crowd as well. It appeals towards the popularity aspect or coolness aspect of a person using a particular product or service

Fear Appeal

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Fear is also an important factor that can have incredible influence on individuals. Fear is often used to good effect in advertising and marketing campaigns of beauty and health products including insurance. Advertising experts indicate that using moderate levels of fear in advertising can prove to be effective.

Humor Appeal Humor is an element that is used in around 30% of the ments. Humor can be an excellent tool to catch the viewer’s attention and help in achieving instant recall which can work well for the sale of the product. Humor can be used effectively when it is related to some benefit that the customer can derive without which the joke might overpower the message.

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Music Appeal  Music can be used as types of advertising appeals as it has a certain intrinsic value and can help in increasing the persuasiveness of the ment. It can also help capture attention and increase customer recall. Scarcity Appeal Scarcity appeals are based on limited supplies or limited time period for purchase of products and are often used while employing promotional tools including sweepstakes, contests etc. Mas Culine Feminine Appeal  Used in cosmetic or beauty products and also clothing. This type of appeal aims at creating the impression of the perfect person. The message is that the product will infuse the perfection or the stated qualities in you. Brand Appeal This appeal is directed towards people who are brand conscious and wish to choose particular products to make a brand statement.

Scarcity Appeal

Masculine Appeal

Snob Appeal  This appeal is directed towards creating feeling of desire or envy for products that are termed top of the line or that have considerable qualities of luxury, elegance associated with them. ◦

Ex: Onida

Adventure Appeal 11


 This appeal is directed towards giving the impression that purchasing a product will change the individual’s life radically and fill it with fun, adventure and action. 

Ex: Tata Safari

Less than Appeal  ments often try to influence people to make certain purchases by pointing out their inadequacies or making them feel less perfect and more dissatisfied with their present condition. These types of advertising appeals are used in cosmetic and health industries. 

Ex: Pepsodent Ad

Youth Appeal  ments that reflect youth giving aspects or ingredients of products use these types of appeals. Cosmetic products in particular make use of these appeals. Ex: Yahoo Play on words  ments also make effective use of catch phrases to convey the message. Such appeals help in brand recognition and recall and can be quite popular with the youth in particular. 

Ex: Radio Mirchi’s “Its Hot”

Statistics Appeal  ments also use statistics and figures to display aspects of the product and its popularity in particular. Plain Appeal  These ments use every day aspects of life and appeal to ordinary people regarding the use of a product or service. 

Ex: Toiletries & Kitchen Wear

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Q 2. (a) Enumerate the basic principles and factors for effective and good advertising? Answer:Advertising is the method of promoting your business through various media to your target market. It's derived from the information that’s called your marketing strategy and must always flow out of your marketing strategy. The two cannot be separated. Advertising is a reflection of well laid business plans. Target markets and UCA’s are the foundation of strategic marketing. It's important for all business people to have a reasonable knowledge about how to write effective ments if they want maximum return for there advertising dollars. You can hire a professional advertising copywriter to help you (at great expense), but it's a skill that you should learn, even if it's just the basics. All good ads are written based on a formula commonly know as AIDA. A = ATTENTION I = INTEREST D = DESIRE A = ACTION If there's nothing about your ads that attracts your prospect´s attention, they won't have any incentive to read about what you are offering them. If your offer is weak and poorly explained, then they certainly won't be interested. There needs to something about your ads that gives a prospect the desire to have what you are offering. There also needs to be an incentive or a reason for the prospect to respond now or at least very soon, to what you are offering.

Know Your Audience Who is your target audience and what do they want? This is the question you need to ask yourself - and answer before you even put a single thought onto the page. The audience you are writing for will not only influence the content you provide but will also alter the style in which you write it. Are you writing articles for a little league baseball team? The style you use as well as the words will be drastically different than if your client is a lawyer or an engineering firm.

Honesty is "Still" the Best Policy Some writers feel that in order to write great copy you need to promote a product or service's better qualities while downplaying things like a higher cost or the fact that it doesn't work on all systems. This thought process can be troublesome, however. Instead of hiding a product or service's flaws try flaunting them and making it more of a benefit, similar to the way high-end vehicles make it seem like an exclusive club. To Inform – to let people know what the company or business is offering, the benefits they will get from it and what will it do to them. A good example is Clear Shampoo, they did print, tv, radio ads to make people aware that there’s another anti-dandruff shampoo.

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 To Persuade - to stimulate people to buy. But sometimes it’s just to create a positive image in order to influence purchase in the future. Nido’s 10 Signs of good nutrition ad is an example of persuasion in which mothers are targeted to buy Nido.  To Remind - to keep the product brand name in people’s minds. This happens when target market has been persuaded already of merits of goods and services. Jollibee, Smart & Globe are some who keeps ads rolling to remind people to buy. To Modify Behavior – to convince buyers to switch their patronage from the competitor’s product to the d product. Tide’s TV ads which tells you that their product doesn’t have chalk is a good example of this objective. To create an ment with power the r should to do this requires like; creativity, the ability to attract and hold the target audience through the manner and composition of the ment. Advertising problem, the establishing ‘advertising problem’ are, that the reason the company is resorting to advertising. Much good the advertising is based on creativity of concept, an idea upon which the campaign is built. Effective creativity means the creativity that meets the commercial objective of a campaign. The answer lies in what might be called ‘effective creativity’. Single-minded proposition it is are brand’s unique selling proposition (USP). The creative idea expresses the brand’s positioning through the brand proposition it is in order to emphasize its importance in the advertising process, capture the qualities of the brand and incorporate the right mix of functional properties and emotional characteristics. Media Strategy is the decision on which media to use for given the campaign, to design the best message for the most appropriate medium to reach the maximum number of people in the target audience. Waterloo effect it is content of good advertising campaigns, namely uniqueness, frequency and relevance. In uniqueness advertising is undoubtedly stands out from the rest and gets talked about through ‘word - of - mouth’ and/or using ‘media chatter’. Media chatter is a subject matter that is discussed by and in the media. About Impressions it is a single instance of an ment being display and last nut not least is the Stopping power, in advertising therefore must aim for stopping power whether through uniqueness, repetition or relevancy. To do this r must use this followed 14 formats including, demonstration, testimonials, expert and celebrity endorsement, slice of life, comparative advertising, the logical and emotional appeals, stereotyping, humor, erotica, shock tactics, sensory appeal and shape with color. Advertising was developed in 300 years prior to the 20 century. It is any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor is a form of communication that typically attempts to persuade potential customers to purchase or to consume more of a particular brand of product or service. Advertising Work as online advertising refers to all forms of internet advertising, such as banner ads, email marketing, cost-per-click campaigns, online directory placement, search engine optimization, and pop up ads. Thru television and radio advertising as usually well make the advertising is so flexible additional for the brand outcomes information. Reaching the consumer is the outdoor advertising, like IKEA send their booklet sales thru their customer door – to – door. Even in this era, the advertising will work just by mail that we forwarding and direct mail brochures. The principles outlined above only provide a guide to advertising. In addition, the following factors are essential for their application: (a)

Creative talents of a high order.

(b) The proper briefing of the creative team on the right appeals to address to consumers for the purpose of selling your brand. (c)

Experience is not sufficient by itself to guide the creative team.

(d)

Disciplined procedures ed by research in all aspects affecting consumer choice and motivation. 14


Q 2. (b) Before a businessman proceeds for advertising his product, market research is considered essential. Explain as to why research is required and how a judgment on it will be based. Answer:Marketing research is the systematic gathering, recording, and analysis of data about issues relating to marketing products and services. The term is commonly interchanged with market research; however, expert practitioners may wish to draw a distinction, in that market research is concerned specifically with markets, while marketing research is concerned specifically about marketing processes. Marketing research may also be described as the systematic and objective identification, collection, analysis, and dissemination of information for the purpose of assisting management in decision making related to the identification and solution of problems and opportunities in marketing. The goal of marketing research is to identify and assess how changing elements of the marketing mix impacts customer behavior. The task of marketing research is to provide management with relevant, accurate, reliable, valid, and current information. Competitive marketing environment and the ever-increasing costs attributed to poor decision making require that marketing research provide sound information. Sound decisions are not based on gut feeling, intuition, or even pure judgment. Marketing managers make numerous strategic and tactical decisions in the process of identifying and satisfying customer needs. They make decisions about potential opportunities, target market selection, market segmentation, planning and implementing marketing programs, marketing performance, and control. Marketing research helps the marketing manager link the marketing variables with the environment and the consumers. It helps remove some of the uncertainty by providing relevant information about the marketing variables, environment, and consumers. Ongoing marketing research programs provide information on controllable and non-controllable factors and consumers; this information enhances the effectiveness of decisions made by marketing managers. • Advertising Research – a specialized form of marketing research conducted to improve the efficiency of

advertising. According to MarketConscious.com, “It may focus on a specific ad or campaign, or may be directed at a more general understanding of how advertising works or how consumers use the information in advertising. It can entail a variety of research approaches, including psychological, sociological, economic, and other perspectives.” Advertising research is a branch of marketing research, and is both a sort of insurance to avoid wasting money on in effective advertising and a means of monitoring the effectiveness of a campaign while it is running and after the campaign has ended. It is also possible and advantageous to ling advertising research with other forms of marketing research which the company is undertaking. Today the rs has the benefits of many sorts of research, and they are usually recommended and commissioned by an advertising agency.In fact, in its own interest a good advertising agency may insist on the use of research to ensure that it produces and conducts successful advertising. “The advertising research is an application of marketing research aimed at the measurement of advertising effectiveness and improve advertising efficiency. The primary aim of advertising is to sell an idea, goods or services whereas the ultimate goal of v research is to measure the impact of advertising on sales of that idea, good or service.” There should be a regular programme of consumer research, product testing and advertising effectiveness measurement to provide a basis of facts for decision-making. 15


Research is needed for the following purpose: (a)

Guide the decisions determining the brand marketing strategy and brand advertising strategy.

(b)

Pre-test proposed advertising.

(c)

Post-test advertising.

The pre-testing of advertising is essential to ensure that this expensive investment is having the desired effect in influencing consumer motivations to purchase your brand. In this connection, it is important to that simple recall of advertising content does not necessarily motivate consumer to purchase.

Copy Testing

Pre Testing

Consume r jury test Inquiries Simulated sales test

Post Testing

Penetrati on test Recognition test Recall test

Progress test Portfolio test Sales result test Laboratory test

PRE-TESTING 16


Pre-testing attempts to measure the communication effect of an ment before it is released in the media. Various tests conducted under this category are as follows: > Consumer jury tests > Inquires > Simulated sales tests > Portfolio tests > Laboratory test POST-TESTING The post testing is a technique, which not only measures effectiveness of an ad but also attempts to find why a given ad is effective or ineffective. The techniques of post-testing try to measure the memory of respondents about the ad in question.  PENETRATION TEST  RECOGNITION TEST:  RECALL TESTS  PROGRESS TEST  SALES RESULT TEST.

Judgement The following questions about every ment will provide a useful cross-check of its effectiveness: 1.

Does it promise a basic consumer benefit? A product must fulfil a real or imaginary need of consumers and hence its advertising must be presented in of the consumer’s interests.

2.

Does it offer a convincing “ reason why” Good advertising must persuade consumer that the brand will fulfil the basic promise by offering a convincing “reason why” with ing evidence.

3.

Is it unique? Good advertising must convince the consumer that your brand and your alone can satisfy his needs. This requires strong individuality in presentation.

4.

Does it clearly identify the brand? Good advertising must impress the brand name clearly on the consumer’s mind.

5.

Does it interest the consumer? Good advertising must present the brand’s benefit and proof in a manner, which interests and attracts consumer personality.

6.

Is it credible and clear? 17


Good advertising must be easily understood by the consumer and credible in the claims it makes.

Q 4. (a) Media Planning is an important aspect of advertising, what are their problems and also mention the changing role of a media planner. Answer:Media selection is finding the most cost effective media to deliver the desired number and type of exposures to the target audience. The media planner has to know the capacity of the major media types to deliver reach, frequency and impact. The major media types are T.V., newspaper, radio, magazines or journals etc. Which media is to be selected – print or broadcast media this question is there to answer in the process of media selection. PRINT MEDIA For many years rs have not been satisfied with circulation data as the sole yardstick for buying advertising media. It has been clearly demonstrated that the number of readers of a given copy of a publication not only significantly exceeds circulation but also varies from gross circulation figures as between various publications. An increasing amount of research has been applied in resent years to the measurement of actual reading audiences. Techniques fro measuring reading audiences are now sufficiently perfected so that these data are generally accepted and widely employed. Newspapers and magazines are the most common types of print media. As the media circulation increases so, does the attractiveness of a newspaper or magazine to an r, and the medium may raise the advertising rates. The best way to measure a publications’ is through measuring its readership or total audience. Media buyers need to know the accurate circulation and readership figures to compare costs among various publications that reach similar audiences. For magazines the formula is: Cost per page per thousand circulation = Page rate * 1000 Circulation Newspapers advertising rates can be compared as: Cost pre line per million circulation = 10,00,000 * line rate Circulation = million rate in rupees BROADCAST MEDIA The most extensive research in connection with broadcasting media is the measurement of listening and viewing audiences. The following methods are commonly employed. > The recall method: The recall method obtains its data through listener surveys in which the respondent is asked to report the television and radio programs he heard during a specified period of time previous to the interview. > The diary method: In the coincidental diary method a form listing broadcasting stations and time periods is left with the respondent, who makes notations of programs received. The diaries are usually designed so that they can be attached to the radio or television set for convenient recording. The chief advantage of this method is that the respondent records his listening or viewing at the time, thus eliminating the burden on memory. It also has the advantage of making it possible to obtain classification data regarding the listener or viewer. The primary weakness of this method is inaccuracies of reporting because there is a constant tendency to neglect to make entries at the time the set is actually in use. 18


> The coincidental method: In this method investigators call telephone subscribers according to a predetermined sampling pattern. It provides more accurate data than other survey methods, since it eliminates the necessity for memory or entries in a diary. Also it is based on a report of actual viewing or listening rather than mechanical evidence that the radio set was operating. > The audimeter method: The audimeter is attached to TV or radio sets at random in the homes of potential consumers. The device maintains on a magnetic tape a continuous record of the set in usage channel on and the station channel to which tuned. Its advantage is that with the aid of audimeter one can accurately measure the set in use from a valid sample. Its disadvantage is that it does not indicate who is watching the set or listening to a radio set.It only records whether the set is tuned on to a particular channel or station. It tells nothing about the audience presence and their behaviour. The whole advertising revolves not only around the kind of message, act, appeal, motive and the merchandise which company or r put forth but most importantly revolves around the media which will ensure the final success of all the good things done. Whenever it comes to choosing of the right media, three basic question arise in mind: 1.

Where are my target buyers/market?

2.

What is the best medium to reach them?

3.

Can I afford to launch an effective campaign using this medium?

Factors determining various media’s There are so many factors that determines that out of which available option of advertising media, one to choose from. These are as follows; 

Price



Target audience/market



Reach



Accessibility of the media opted



Appeal which it can generate



Suitability as to the type of the product

Various Advertising Media’s with advantages and Problems:1. NEWSPAPERS: Newspapers are one of the traditional mediums used by businesses, both big and small alike, to their businesses. ADVANTAGES: 

Huge reach-ability to people in a given geographic area.



Flexibility in deciding the ad size and placement within the newspaper.



Ad can be as large as necessary to communicate.



Exposure to ad is not limited. 19


Free help in creating and producing ad copy is usually available. PROBLEMS: 

Ad space can be expensive.



Ad has to compete against the clutter of other rs.



Poor photo reproduction limits creativity.



Newspapers are a price-oriented medium; most ads are for sales.



Expect the ad to have a short shelf life.



Due to high visibility, consumers can quickly react to the prices.

 With the increasing popularity of the Internet, newspapers face declining readership and market penetration. 2. MAGAZINES: Magazines are a more focused, albeit more expensive, alternative to newspaper advertising. This medium allows r’s to reach highly targeted audiences. ADVANTAGES: 

Allows for better targeting of audience



High reader involvement



Better quality paper permits better color reproduction and full-color ads



The smaller page (generally 8 ½ by 11 inches) permits even small ads to stand out

PROBLEMS: 

Long lead times enforces to make plans weeks or months in advance



The slower lead time heightens the risk of company’s ad getting overtaken by events



There is limited flexibility in of ad placement and format



Space and ad layout costs are higher

3. YELLOW PAGES: There are several type of yellow pages ranging from the general one to those targeted to specific markets. ADVANTAGES: 

Wide availability, as mostly everyone uses the Yellow Pages



Non-intrusive



Action-oriented, as the audience is actually looking for the ads



Ads are reasonably inexpensive 20




Responses are easily tracked and measured



Frequency

PROBLEMS: 

Pages can look cluttered, and the ad can easily get lost in the clutter



Company’s ad is placed together with all its competitors



Limited creativity in the ads, given the need to follow a pre-determined format



Ads slow to reflect market changes

RADIO: This has emerged as an and very good way of promoting the brand as compared with earlier way of doing the same. 4.

ADVANTAGES: 

Rates can generally be negotiated



During the past ten years, radio rates have seen less inflation than those for other media



Free creative help is often available

 The vast array of radio program formats offers to efficiently target companies advertising rupees to narrowly defined segments of consumers most likely to respond to their offers. PROBLEMS:  Because radio listeners are spread over many stations, companies may have to simultaneously on several stations to reach their target audience 

Listeners cannot go back to ads to go over important points

 Ads are an interruption in the entertainment. Because of this, a radio ad may require multiple exposure to break through the listener's "tune-out" factor and ensure message retention  Radio is a background medium. Most listeners are doing something else while listening, which means that the ad has to work hard to get their attention TELEVISION: The most widely and one of the all time favorite media through which almost all the ment are being done. 5.

ADVANTAGES:  Television permits product to reach large numbers of people on a national or regional level in a short period of time 

Independent stations and cable offer new opportunities to pinpoint local audiences

 Television being an image-building and visual medium, it offers the ability to convey the message with sight, sound and motion 21


PROBLEMS: 

Message is temporary, and may require multiple exposure for the ad to rise above the clutter



Ads on network s are concentrated in local news broadcasts and station breaks



Preferred ad times are often sold out far in advance



Relatively expensive in of creative, production and airtime costs

Limited length of exposure, as most ads are only thirty seconds long or less, which limits the amount of information companies can communicate DIRECT MAIL: Direct mail, often called direct marketing or direct response marketing, is a marketing technique in which the seller sends marketing messages directly to the buyer. Direct mails include catalogs or other product literature with ordering opportunities; sales letters; and sales letters with brochures. 6.

ADVANTAGES: 

Marketing message can be personalized, thus helping increase positive response



Effectiveness of response to the campaign can be easily measured



advertising message is targeted to those most likely to buy your product or service



total control over the presentation of your advertising message



ad campaign is hidden from competitors until it's too late for them to react

 Active involvement - the act of opening the mail and reading it -- can be elicited from the target market PROBLEMS:  Some people do not like receiving offers in their mail, and throw them immediately without even opening the mail  Resources need to be allocated in the maintenance of lists, as the success of this kind of promotional campaign depends on the quality of mailing list 

Long lead times are required for creative printing and mailing



Can be expensive, depending on the target market, quality of the list and size of the campaign

TELEMARKETING: Telephone sales, or telemarketing, are an effective system for introducing a company to a prospect and setting up appointments. 7.

ADVANTAGES:  Provides a venue where company can easily interact with the prospect, answering any questions or concerns they may have about your product or service 

It's easy to prospect and find the right person to talk to



It's cost-effective compared to direct sales 22




Results are highly measurable



If outsourcing, set-up cost is minimal

 calls

Increased efficiency since company can reach many more prospects by phone than in-person sales

PROBLEMS: 

An increasing number of people have become averse to telemarketing



More people are using technology to screen out unwanted callers, particularly telemarketers



Government is implementing tougher measures to curb unscrupulous telemarketers



It is most appropriate for high-ticket retail items or professional services



It can be extremely expensive, particularly if the telemarketing is outsourced to an outside firm May need to hire a professional to prepare a well-crafted and effective script

SPECIALTY ADVERTISING: This kind of advertising entails the use of imprinted, useful, or decorative products called advertising specialties, such as key chains, computer mouse, mugs, etc. These articles are distributed for free; recipients need not purchase or make a contribution to receive these items. 8.

ADVANTAGES: 

Flexibility of use



High selectivity factor as these items can be distributed only to the target market



Availability of wide range of inexpensive items that can be purchased at a low price



They can create instant awareness

They can generate goodwill in receiver PROBLEMS: 

Targeting of the market is difficult



This can be an inappropriate medium for some businesses



It is difficult to find items that are appropriate for certain businesses



Longer lead time in developing the message and promotional product



Possibility of saturation in some items and audiences



Wrong choice of product or poor creative may cheapen the image of r

The Changing Role of A Media Planner Media planner is a job title in an advertising agency or media planning and buying agency, responsible for selecting media for ment placement on behalf of their clients. The main aim of a media planner is to assist their client in achieving business objectives through their advertising budgets by recommending the best possible 23


use of various media platforms available to rs [1]. Their roles may include analyzing target audiences, keeping abreast of media developments, reading market trends and understanding motivations of consumers (often including psychology and neuroscience). Traditionally, the role of the media planner was quite close to that of the media buyer, the obvious distinction being that the planner would devise a plan for advertising and the buyer would negotiate with the media proprietor on things such as rates, copy deadlines, placement, merchandising, etc. The role of the modern media planner is more wide reaching however. Today many agencies are actually eschewing the job title of "media planner in favour of titles such as communications planner, brand planner or strategist. This reflects the shift away from traditional media planning to a more holistic approach, with the planner now having to consider (as well as standard above-theline channels such as TV, print, radio and outdoor) PR, below-the-line channels, in-store, digital media, product placement and other emerging communications channels all for the purpose of ensuring the client's advertising budget is well spent as well as adhering to the overall marketing strategy devised by marketing consultants or the client themselves. Their expanded job scope has thus made greater demands of their time, placing them in immensely pressured situations matched by the states faced by their creative (copywriters and art directors) counterparts. Situation has become complex in both the market & media. Knowledge about media like the reach, the various options, the research available, competition in the market, etc. What led to the change of role? Media has come very close to the marketing objective-how it can help achieve the marketing goals. There are more research techniques available to measure the media reach. More data of media and markets are available. Increase in media costs and expenditure as a result of which every client wants his rupee to be stretched as much as possible. Complexity in media, a plethora of options available hence splintered audiences. Media environment has changed because of1.

Creation of new media like cable channels, specialized publications, video cassettes.

2.

New audience measurement techniques – from diary to people meter.

Q 4. (b) Define Market, Bring out the factors to be considered while defining the market. Answer:Definition: A market is any place where the sellers of a particular good or service can meet with the buyers of that goods and service where there is a potential for a transaction to take place. The buyers must have something they can offer in exchange for there to be a potential transaction.

Defining markets is complex because markets are complex. Aside from fundamental metrics like market size and buyer demographics, markets are defined by the changing and conflicting forces of competition, market maturity, buying trends, geography and channels. Market definition is the foundation of your entire marketing strategy.

24


When defining your market, you must document it on several levels using different tools for each level. This is necessary because you need to describe different aspects of your market for your internal business plan, to your investors, and as part of your segmentation plan. You must document:

• The size of the market • Total size • Addressable size • Segment sizes • Market geography • Technology market divisions • Bounding by • Andrew Grove's Six Forces • Market disciplines of customers • Competitive landscape • Key product and economic trends in the market • Channel realities and options • Market penetration capital requirements

Factors to be considered while defining the markets: When it comes to defining your target market, the world is not your oyster. As a business owner it's tempting to define your target market in general . You want everyone to partake of your goods and services. But, unfortunately, from a marketing perspective, no business has the money or other resources to reach the entire marketplace effectively. Your task is to decide and prioritize that segment of the market you want to target so that you can maximize the effectiveness of your marketing dollars. Your target market can be determined by the following two general criteria: Demographics. This is data that refers to selected population characteristics such as age, gender, race, education and income level. It can also include their marital & employment status, whether they have children, as well as specific information, such as whether they own a computer or how often they travel on business, etc. Psychographics. This is data classifying population groups according to psychological variables, or IAO variables (Interests, Attitudes and Opinions)-- emotional and ideological beliefs. These are attributes relating to their personality, values, fears and lifestyle. Examples of words used to describe a market psychographically include feminist, macho, risk taker, value-for-money oriented, saver, etc. Having a defined target market doesn't mean that your product or services won't have cross-over appeal to people outside of your target market. This will always be the case. For example, there are wealthy people who shop at WalMart, but the company's marketing dollars are not targeted toward this group because it doesn't represent its core segment of bargain shoppers. Of course, the Wal-Mart brand (which is another subject) has long been established as a community fixture. Get rid of the notion that you are somehow 'missing out' on sales opportunities by not pitching a big tent. Assuming that 'everyone' will purchase your goods and services will lead you to make wrong decisions about pricing and marketing strategy, which can ultimately cause your business to fail. Do your market research. You will find that there is more than enough business within your niche market. Using the criteria above determine, as closely as possible, exactly who those people are and target your resources toward them.

25


Based on your results, you might decide to expand your target market to include another age group, etc. But make sure your logic is based upon the set criteria and not simply your bottom line. Let your determinations be based on facts, not fear. , there was a market for mood rings and pet rocks, so surely there's a market for your products and services. Your job is to identify it and build a strong business around it. The clients brief Distribution patterns – where is the product available Marketing objectives – High growth will mean diverse or more markets. Competitive activity – special promotions by competition. Where do they have high market share. Market potential Media related markets – like strong press or TV markets. Sales pattern – where sales are good – it is good defensive strategy to protect. Also need to check whether the market has been fully exploited. This task would be easier. This minimizes the risks and maximizes the potential Offensive strategy – where sales are low requires heavier advertising expenditure. But the risks have to be weighted – how is competition faring – is it doing well. Why is out product a failure? Poor distribution, insufficient advertising, others- can the situation be corrected? If a brand is doing well- it is difficult to convert people to switch. Virgin markets – must analyze why competition has not gone into these markets. Importance can be given to specific markets on the basis of the client’s sales data, their distribution patterns and brand ownership/ ship data.

Q 5. (a) Enumerate the functions of Industrial Advertising; explain the usefulness of catalogue advertising with examples. Answer: Industrial Advertising field of advertising directed at commercial business customers. The d products are raw materials, components, or equipment needed in the production or distribution of other goods and services.

THE MODERN R 1. Appreciates the importance of industrial advertising even though it represents, in dollars, a relatively small percentage of the amount spent for all advertising. 2. Studies differences between industrial and consumer advertising as to factors that make each effective. 3. Becomes acquainted with the methods used by industrial rs to make the job of the salesman easier. In modern advertising, industrial copy represents less than 10 per cent of all advertising expenditures. The total advertising volume estimated for 1960 is $8.5 billion. For industrial advertising the estimate is $845 million. See ‘Tomorrow is a big market’, Associated Business Publications, New York, 1954. This is an appraisal of the American market-backward to 1935 and forward to 1975. This percentage is so small that some advertising practitioners tend to overlook its importance in our economy. One reason for this oversight is that consumer advertising has more attractiveness, uses more artistic, colorful 26


illustrations in mass publications and appears in more glamorous television shows. Furthermore, the copywriters for consumer advertising prepare ments on which agency billings are relatively higher. The copy writer for the consumer ment can let his imagination go into clouds of ecstasy about the delights obtainable from the use of a soap or a soup; but the man who writes industrial advertising must stick closely to the cold facts-facts that will be read by technically trained men who buy on a logical rather than an emotional basis. THE FUNCTIONS OF INDUSTRIAL ADVERTISING The real importance of the industrial advertising man is in his behind-the-scenes contributing to your standard of living. He is one of the most important influences in educating and persuading manufacturers and processors to purchase more productive equipment and to adopt lower-cost technical processes. These in turn, help the producers to make better products at lower costs. As a result, consumers can buy more consumer goods, thus raising the standards of living for all. This role is, in a way, more significant but less glamorous than that of the consumer advertising man. In the summer of 1953, the Sales Executives Club of New York sent a questionnaire to 1,328 sales executives in firms selling to the producer design, plant engineering, and metalworking markets. The questions and the average of the answers of the 228 respondents are given below. •

‘Behind the scenes’ contribution to standard of living

•

Reduces selling costs and increases productivity

•

Reach the inaccessible influences

•

Encourages the favorable s required before purchase is done

USEFULLNESS OF CATALOGUES •

Specialized work

•

Long shelf life

•

Marketing tool for buying as well as for selling

•

Expensive and has to be used sparingly

Catalogs are widely used as advertising by manufactures, wholesalers house in selling to merchants and industrial buyers. Their usefulness as advertising is increased because of their relatively greater length of life when compared to other forms of advertising. Catalogs serve a definite marketing function because, in most cases, they are the buyer’s first-used source of information for comparing competing products and deciding which companies should be asked to have a salesman call. Indeed, some industrial rs think of the catalog as a marketing tool for buying rather then a selling. In a good catalog, every word sells, and the pictures as well as the headline give necessary information to the reader. Ti is obviously beneficial to the wholesaler, manufacturer, and mail-order house that catalogs containing comprehensive information and technical data in the hands of all important potential buyers, readily accessible for instant use whenever buying needs arise. The National Industrial rs Association made a survey of its and found that nearly one third of the companies let from four to ten years go by before redeg their catalogs, that 41 per cent of the fourth of the companies distribute their catalogs mainly on the basis of requests for them.

27


Compiling such catalogs is a laborious and time-consuming job and requires specialized knowledge. For this reason, there are various business services in the industrial and institutional field that arrange to develop catalogs for their clients and circulate them to customers. Sweet’s Catalog Service is an organization of catalog specialists. Founded in 1907, Sweet’s, in a recent year, handled more catalogs then any other organization – over 40 million copies for 1,353 manufacturers. Sweet’s endeavors to help clients find the answers to their individual catalog problems. It services fall into three categories: (1) catalog design, (2) catalog production, and (3) catalog distribution. In the area of catalog design, Sweet’s maintains that good design starts with an analysis of the client’s products and markets. The most effective catalogs are market specialized to meet the different product-information needs of each buying group. Market specialized catalogs describe only products of possible interest to the prospect and interpret them in of his special requirements. Moreover, market-specialized catalogs are economical to produce and distribute, and to replace when they become obsolete. Manufacturers’ catalogs, distributed by Sweet’s, are delivered to selected organizations and individuals representing the bulk of the buying power in each market served. Sweet’s maintains an up-to-date record of the most important concerns and of the individuals in each concern who have real buying power for the following markets: product engineering, plant engineering, general building, industrial construction, and light construction. Men in the industrial field who do marketing in any of the areas in which Sweet’s specializes are likely to consult them or use their services at some time. To increase the proportion of calls made after prospects have read the catalog, it follows that a sales executive must increase the use of his catalog. Here are a number of points to keep in mind, based on techniques used by Sweet’s catalog Service: Design your catalog from the prospect’s point of view. Good design doesn’t mean window dressing. Your prospect has an application. Your catalog should give him the facts he needs, quickly, to decide whether your product might fit. Aside from organization of facts, the catalog should induce the prospect to call in your representative. After he has made a tentative decision, tell him what he should do next. Send the catalog to all important potential customers within your distribution network. It is dangerous to assume that hordes of potential customers will ask for the catalog and wait for the mailing when they want production information – they may have your competitor’s catalog handy. Maintain your catalog. How many prospects have lost it or thrown it out? How many have failed to add recent mailings to their loose-leaf catalogs? Your catalog procedures should be integrated into your basic marketing plan. Your basic tools are advertising, direct mail, point-of-sale displays, personal selling, and catalogs. Is your catalog coordinated with your advertising, for example? Do you devote any ad space to catalog promotion? Do your salesmen often talk from the prospect’s catalog, rather than bring their own? If your products are bought in more than one market, do you have several catalogs, each geared to a market’s requirements?

Q 5. (b) Write in your Opinion, what are the checkpoints in evaluating ment effectiveness. Answer: When evaluating the potential effectiveness of different campaign ideas, I use the following questions: 28


• Does the ad clearly identify your brand? Does it do so immediately and throughout the ad? • Does the ad clearly and forcefully communicate your brand’s unique promise? • Does the ad feature a tag line that reinforces the brand’s promise? • Are the ad’s tone, voice, and style true to your brand’s essence and personality? • Does the ad reinforce your brand’s identity? • Does the ad connect with the reader on an emotional level? Does it win the reader’s heart or capture his or her imagination? • Is there something about the ad that makes the reader ire the brand? • Is your ad significantly different from that of your competitors? Does it look and feel different from anything else featured in the same media? • Does the ad reinforce the positive value and values of your brand? • Does the ad seem truly inspired? • Is your ad so powerful that it has the potential to keep your competitors awake at night worrying about your brand? • Is the ad persuasive? • Could no competitor make the same claim? If you inserted a competitor’s logo in the ad, would it make no sense or be unbelievable? • Does the ad lead the reader/viewer to believe that he or she will be better off in some way for having interacted with your brand? Does it create a more favorably perceived end-state for him or her? Does it leave a vivid picture in his or her mind?

Reasons why Companies should Measure Advertising Effectiveness: 1. Avoiding Costly Mistakes: According to emarketer.com, “Online advertising spending will reach $16.7 billion in 2006, eMarketer predicts. That's a growth rate of 33.2%, the highest growth year-over-year expected this decade.” This means that companies are spending thousands if not millions of dollars each year to online, but that is not to say that it is being spent wisely. The only way to ensure that this money is not being wasted on ineffective advertising programs is to continuously evaluate the effectiveness of the chosen programs and to ensure that these programs are achieving their intended purpose. Evaluating the effectiveness of the chosen programs is not all about money, it also gives the e-marketer the opportunity to analyze the non-tangible effects of the chosen program. For example, if a company chooses to go with a pop-up advertising program, they can evaluate it’s ROI by comparing its click-throughs to the amount of money invested in building it. However that is not the extend of it; a good evaluation program will be able to analyze the consumer’s reaction to that program, its effects on the company’s image or its effectiveness in comparison to a banner ad program.

Key As the saying goes, "a penny saved is a penny earned." If rs Points: efficiency testing as an investment that prevents future “costly mistak the prevented costs as “a penny earned” and take full advantage of th strategy.

29


2. Evaluating Alternative Strategies: Not only is it important evaluate the effectiveness of the chosen method, but also the opportunity costs of choosing that method. Often after companies have chosen a method, they focus their attention exclusively on that method ignoring the potential profits that have come about if they went with an ulterior method. A good program will be able to analyze the effectiveness and the opportunity costs of the chosen method.

3. Increasing the Efficiency of Advertising: often after companies choose a particular method, they become to that method and lose sight of the initial goal they were for. Because the marketers know what the intended of that chosen program is, they expect their customers to message as well. A continuous evaluation of the chosen will ensure that the message the consumers are receiving program is aligned with the message the marketer to send.

to

would evaluation

attached aiming message know that program from this intended

Q 6. Short Notes(a)

Charactor in Advertising – An advertising character is a fictional character that appears within advertising and marketing materials for a given product or service. Since, therefore, every advertising and selling problem involves some element of selection of media; we must first turn to the “character” of the medium as a means of meeting our problem half way. This character is a matter of objective characteristics varying from type and geography of coverage, to the advertising facilities offered by the method, mechanics or materials of the presentation of the medium. 30


The Catalogue which follows of ten different aspects of “character” of advertising media is part of the sub conscious equipment of every experienced person engaged in advertising. The knowledge is acquired by observation, or by the acceptance of reorganized assessments made by experienced people. The catalogues probably not complete because the variations of the possible forms of character are legion. However, this list and definition will cover the main factors and stimulate thought about further possibilities. These ten aspects are: 1.

Geography

2.

Class

3.

Age

4.

Power to reach special groups

5.

Physical characteristics of the medium

6.

Assistance to selling

7.

Duration of interest

8.

Timing

9.

Impact or repetition

10.

Indirect effects on influential groups:

(b)

Communication Spectrum In of the general perception of all of the marketing mix elements that a firm may employ, it is perhaps ‘promotion’ that is the most prominent ‘P’ in the ‘4 P’s’. In fact to many people promotion is marketing. Promotion is a part of a firm’s overall effort to communicate with consumers and others about its product or service ‘offering’. Both the company and the consumer have needs which they aim to fulfil; the profit making company wishes to improve or maintain profits and market share, and gains a better reputation than its competitors, and the consumer aims to reach his or her personal goals. The total product offering allows each party to move towards these goals, offering a ‘bundle of satisfactions’ which fulfil needs in an instrumental and a psychological sense. The phrase ‘Marketing Communications’ is generally preferred to the term ‘promotion’, this term being reserved for a branch of communications called ‘below-the-line sales promotion’

Colley’s DAGMAR model in 1961 (Defining Advertising Goals for Measured Advertising Results) allows for the cumulative impact of ments and also maps out the states of mind consumers through: 1. 2. 3. 4.

From unawareness to awareness; to comprehension; to conviction; to action.

This is described as the marketing communications spectrum. Advertising, along with promotion, personal selling, publicity, price, packaging and distribution, move the consumer through the various levels of the spectrum as follows: Unawareness/awareness The ment tries to make potential customers aware of the product’s existence. Comprehension The customer recognizes the brand name and trademark and also knows what the product is and what it does; knowledge gained from the ment or from an information search prompted by it. 31


Conviction The customer has a firm attitude, preferring a particular brand over all others. Preferences may have an emotional rather than rational basis. Action Some move is made towards purchase, thus the ment has been acted upon. This illustrates the concept that the purpose of advertising is to cause a change of mind leading toward purchase, but it is rare for a single ment to have the power to move a prospect from complete unawareness to action. Effectiveness is judged by how far an ment moves people along the spectrum. The next level above awareness in the communications spectrum is that of comprehension. In this state, the consumers not only is aware of the product or service, but knows the brand name and recognize the package or trademark and, in addition, possesses some degrees of comprehension of what the product is and does. He may say, “Brand A is a headache remedy which the maker claims will give fast relief and will not upset the stomach,” or “The B Company is a manufacturer of earth – moving equipment that will scoop up 20 tons in one bite.” (c)

Creativity needs DirectionThe first rule of Advertising is the Ad should be very creative that can attract audience in first sight. Only the creativity can give a good impact of the ment. The Creativity always starts from a direction if the direction is wrong than one can not be a creative member. I am 100 per cent for creativity in advertising, but not total creativity. What I am against is lack of direction, lack of strategy, lack of thinking the problem through first. I am against advertising that is created in limbo, rather than as a specific answer to a specific selling problem. I am against turning creative people loose, with no guidelines, no aim: I believe in directed creativity. Which is another way of saying that I believe in doing it in the hard way? I believe in saying to creative people “Here is the creative selling strategy that has come out of the marketing data and research and that has been agreed upon by the client. Here is the direction. Here is the job that advertising has to accomplish, the ground it has to cover. However you do it, this is the target you have to hit.” First, carefully define the problem. Second, determine the creative selling strategy that is going to solve that problem. Then, and only then, turn creative people loose. With complete freedom. With no restrictions, no holds barred. With cotton- picking hands kept off. With all the facts they need. All the time they need. All the encouragement they need.

(d)

Brand Marketing Strategy –

Brand marketing strategy and business strategy are like the left and right hand. They are the yin and yang of well-planned businesses. Your brand promise must be evident through: • Internal service quality; which drives employee satisfaction and commitment. • External service quality; which influences customer satisfaction and retention. If the service qualities of both are aligned with a compelling brand promise then your brand marketing strategy vision will be clearer to your target audiences, making the business more attractive and ownable. Perceived business relevance, profit growth and increased value will naturally follow. The 'Idea' Brand Marketing Strategy

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Some people say that a brand is an ‘idea’ and that, while the product/service can be easily categorised, it is actually the promise of this idea that people buy into. This is what we call the brand promise and to define it will help your business address three key challenges. 1. Be different – motivate with a distinctive and clear proposition. 2. Be valued – attract the right relationships with the right audiences. 3. Be smart – encourage your audiences to you in your marketing efforts. Being different in a world that is constantly evolving is the first. Just think of some of the changes you have seen in your lifetime. It is the same in the business world – nothing stands still anymore. Anything that does stand still gets left behind. Understanding how your business stands out is essential. Presenting a unique and memorable offering is a basic requirement for a successful brand marketing strategy. Wrapping this offering in a story is the best way to own a unique and motivating brand promise. Secondly, your brand is a design, strategic marketing, communication and human resource tool, which will enable your business to build trusted relationships with audiences. Being valued by each at any one time is the key to strong performance. Making a promise and then keeping to it will help substantiate your story. This tangible evidence delivered across every point of interaction with your brand will help to build loyalty. The more the whole story lives the idea, the greater chance your business will have in attracting the right relationships with the right audiences. (e)

The Heart of Creativity – The word “creativity” can be used in a variety of ways. Most often, it’s used to describe someone creating a piece or act of art—fine artists, dancers, movie producers, etc. What is often left out of this definition, though, is that every day every one of us uses our creativity in simple ways: creating your garden, your meals, the document you need to send to your client, or a new selling strategy. Everyone has this ability, not just the artists in the world. There are ways creativity can be fostered and encouraged, and ways that it can be stifled. In creativity training you need to make sure that all ideas, no matter how silly or weird, are cultivated. The best inventions often come from such open formats. The heart of creativity is discipline, Mr. Eernbach says, and the ever riding purpose is to SELL. The first discipline is therefore the selling Discipline to convey memorably, the advantage and essential message of the product. But there are three others. One is the Aesthetic discipline, saying it like it’s never been said before. Another is management discipline, knowing how to guide and sharpen the skills of talented creative people (and no r, working directly with outside creative people, has the time for it.) Last is the social discipline, fulfilling our role in seeking another rebirth of Western Civilization. To get to the HEART of Creativity, it’s important that you allow all ideas to flow; to not judge yourself (or others) for bizarre or unusual ideas that just pop out of your (or their) brain. It’s important to realize that there’s not only one answer to any problem, but many.

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