ASP Full Notes

Jeppiaar Engineering College Department of Management Studies
BA9254 ADVERTISING AND SALES PROMOTION LT P C 3 0 0 3
UNIT – I INTRODUCTION TO ADVERTISEMENT 9

Concept and definition of advertisement – Social, Economic and Legal Implications of advertisements – setting
advertisement objectives – Ad. Agencies – Selection and remuneration – Advertisement campaigns – case
studies.
UNIT – II ADVERTISEMENT MEDIA

9
Media plan – Type and choice criteria – Reach and frequency of advertisements – Cost of advertisements -
related to sales – Media strategy and scheduling.
UNIT – III DESIGN AND EXECUTION OF ADVERTISEMENTS 9

Message development – Different types of advertisements – Layout – Design appeal – Copy structure –
Advertisement production – Print – Radio. T.V. and Web advertisements – Media Research – Testing validity
and Reliability of ads – Measuring impact of advertisements – case studies.
UNIT – IV INTRODUCTION TO SALES PROMOTION

9
Scope and role of sale promotion – Definition – Objectives of sales promotion - sales promotion techniques –
Trade oriented and consumer oriented.
UNIT – V SALES PROMOTION CAMPAIGN

9
Sales promotion – Requirement identification – Designing of sales promotion campaign – Involvement of
salesmen and dealers – Out sourcing sales promotion national and international promotion strategies –
Integrated promotion – Coordination within the various promotion techniques – Online sales promotions- case
studies.
TOTAL:45 PERIODS
TEXT BOOKS
1. Wells, Moriarty & Burnett, Advertising, Principles & Practice, Pearson Education
7th Edition, 2007.
2. Kenneth Clow. Donald Baack, Integrated Advertisements, Promotion and Marketing communication,
Prentice Hall of India, New Delhi, 2003.
REFERENCES
1. S. H. H. Kazmi and Satish K Batra, Advertising & Sales Promotion, Excel Books, New Delhi, 2001.
2. George E Belch and Michel A Belch, Advertising & Promotion, McGraw Hill, Singapore, 1998.
3. Julian Cummings, Sales Promotion, Kogan Page, London 1998.
4. E.Betch and Michael, Advertising and Promotion, McGraw Hill, 2003.
5. Jaishri Jefhwaney, Advertising Management, Oxford, 2008.
BA9254 ADVERTISING AND SALES PROMOTION
III SEMESTER MARKETING ELECTIVE : BA9254 ADVERTISING AND SALES

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UNIT – I
1.1 Definition:
“Advertising is the non - personal communication of information usually persuasive in

nature about products, services or ideas by identified sponsors through the various
media” (Bovee 1992)
Communication
Means through which one person can pass information, ideas or feelings to another through
speech or pictures. Though, communication uses all senses like smell, touch, taste, sound &
sight, only two are useful in advertising i.e. Sound & Sight Sound: Radio, Television —
micro-sound chips in magazines. Sight: The most useful medium of communication like
print, i.e. “A picture is worth a thousand words”
Information
Information is knowledge, fact or news. It comes in different forms: Complete or Incomplete!
Biased or deceptive! what it is? What it looks like? How it works? What are its benefits
&drawbacks etc?
Paid For
If an advertisement is created, placed in the media so the cost to create and time or space in
the media must be paid for. This is the point, where advertising departs from Public
Relations.
Persuasive
Purpose of advertisement is to Identify & differentiate one product from another and to
persuade the customer for preferring one to another.
Products, Services or Ideas

Things advertiser wants consumers to buy. There are three basic differentiations in products
1. Perceptible – Obviously different from other-like color, size, shape etc.
2. Imperceptible – Those which exist but are not obvious.
3. Induced. – No obvious difference but inform people about the difference
Identified Sponsors
Telling audience about the sponsors
Various Media
Like Newspapers, Magazines, Radio, TV, Billboards, hoardings, balloons… So “anything
which is used to communicate ideas from one person to another in non personal-way.”

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1.2 HISTORY OF ADVERTISING
1704 1st newspaper ad, seeking buyer for an Oyster Bay was published.
1843 1st Ad. Agency set up in Philadelphia
1882 Advertising of a soap brand was done with a huge budget of 11000 US$.
1893 A famous beverage brand was registered as a trade mark.
1899 J. Walters: 1st agency opens an office in U.K.
1923 1st entertainment program was sponsored by an advertiser.
1947 J .Walter Thompson 1st agency to cross 100Mil $ in billing.
1976 Indian commercial TV launched.
1978 1st TV commercial is launched.
1990 A new Medium Internet is born.
1993 5 million internet users get on line.
1999 Internet advertising breaks 2 Billion US$ mark
2003 TV show with built in advertising is planned.
ADVANTAGES
• Advertising is every where.

• Advertiser may not see individual consumer yet has research (knowledge) about the
consumer.
• Advertising can be far cheaper per potential customer than personal selling.
1.3 FUNCTIONS OF ADVERTISING
Advertising is one tool which can help a company to achieve goals. It is not the end, but a
means to reach the end. The functions of Advertising depend upon six Advertising objectives
1. To make product distinct from others.
2. To communicate information.
3. To push the customers.
4. To expand distribution.
5. To encourage brand preference.
6. To reduce sales cost.
1.4 ROLE OF ADVERTISING

• Acquire enhanced volumes of sales of products & services.
• Generate awareness about offerings.
• Induce trial of a new product & service.
• Motivate & impress trade channels.
• Change perception & create reassurance.

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1.5 MODELS OF ADVERTISEMENT
a) ADVERTISING RESPONSE HIERARCHY MODELS
Advertising has become a very demanding profession in this now very competitive world. In
this lecture we will explain various models to judge the response to various efforts. Besides
this we will also explain about advertising themes and the process required to get or develop
a unique and big idea along with key points for developing an advertising campaign..
ADVERTISING REPONSE HIERARCHY MODELS

4 response hierarchy models:
1. The AIDA model.
2. Hierarchy of effects model.

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3. Innovation-adoption model.
4. Information processing model.
b) AIDA model
The AIDA model Developed by E. K. Strong basically means draw / attract attention
Be interesting - Create desire - Initiate action
A I D A stands for:
A for Attention
I for Interest
D for Desire
A for Action
c) Hierarchy of effects model.

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d) Innovation-adoption model.

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e) Information processing model.

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1.6 SOCIAL, ETHICAL, AND ECONOMIC ASPECTS OF ADVERTISING
PRACTICAL BENEFITS:
Economic Benefits: Generation of new jobs – Higher Incomes, comfortable & humane way
of living.
Political benefits: Significant contribution for informing people about candidates & the
party etc.
Cultural Benefits: Contributes positively in decisions about media content for betterment in
society
Moral & Religious Benefits: faith messages etc.
SOCIAL IMPACT OF ADVERTISING
Deception in Advertising
The Subliminal Advertising Myth
The Effect of Advertising on Our Value System
The Proliferation of Advertising
The Use of Stereotypes in Advertising
Offensiveness in Advertising

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ECONOMIC IMPACT OF ADVERTISING
Effect on the Value of Products

Effect on Prices
Effect on Competition
Effect on Consumer Demand
Effect on Consumer Choice
Effect on the Business Cycle
The Abundance Principle
IMPACT OF ADVERTISEMENTS ON CHILDREN
Children are impressionable so: advertiser should ----

• Take into account knowledge & maturity level of target audience
• Not exploit imaginative quality of children.
• Communicate information accurately & truthfully.
• Use advertising to influence social behavior in a positive way.
• Contribute to parent - child relationship in a constructive way.
1.7 IMPACT OF ADVERTISEMENTS ON WOMEN
She is at the centre of all advertisements in almost all media. Woman is an embodiment of
tradition & practically no ad is complete if emotional appeal is underscored without a woman
as she plays a pivotal role in the family. Woman is used to grab attention and stimulate desire
which advertiser wants to transform to product.
1.8 ETHICS IN ADVERTISING
Why Ethics?
� PUFFERY – Exaggerated, fantastical or impossible claims. e.g. a cosmetic ad. says

“There are only 3 steps between you and the beauty.”
� SHOCK ADS. – Trying to captivate audience by shocking message e.g. “Death
Cigarettes”.
� WEASEL CLAIM – Where a probable claim is shown e.g. “probably the best show of the
year.” Here word ‘probably’ is weasel. Or e.g. ABC medicine “helps” stop gas before it
starts” here the word ‘help’ is weasel.

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CODE OF ETHICS IN ADVERTISING
• Advertisements will not offend morality, decency and religious views / beliefs of the
viewers.
• Should not be directed towards any religious or political end.
• Should not endanger safety of children or create in them any interest in unhealthy practices.
• Indecent, vulgar, suggestive, repulsive or offensive treatment of themes shall be avoided.
1.9 ADVERTISING AGENCIES
“An advertising agent or an advertising agency is an independent Company rendering

specialized services in advertising in particular and marketing in general”
“An independent organisation of creative and business people who specialise in the
development and preparation of advertising plans, advertisement and other promotional tools
and arrange for the purchase of advertising space and time in the various media”
Primary Services
Complete A Marketing Analysis

Develop An Advertising Plan
Prepare A Creative Strategy
Create Advertising Executions

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Develop And Implement A Media Plan

Handle Billing And Payments
Integrate Other Marketing Communications
Functioning of Various Departments of an Advertising Agency
1. Contact Department. Creation, sustaining an extension are the three basic functions of
the department. It gets new business and tires to continue the existing business. Accounts
Executive of the departments is the key man who acts as a liaison between the agency on the
one hand and the clients on the other.
2. Media Department. After making the advertisement plan, the agency selects the best
possible medium. It is choosing the channels o communication trough which to distribute the
advertising. The media analyst and estimators decide the approximate kind and number of
potential customers and then to choose the media that get the message to them.
3. Copy Department. The copy director coordinates the work of writing the copy with the
assistance of copy chief and copy writer. The advertisement copy is the heart of advertising
programme as it contains the message. Copy writing requires imagination, flair and fluency
in the language and then to choose the media that copy is the outcome of his interest, mood
and ability.
4. Art and Visualization Department. The art director heads this department. He is assisted
by artists, lay-out men and visualizers. Art director gets prepared visuals and lay-outs for
press advertisements, posters, calendars, printed bulletins, car cards and other out door
pieces. Some agencies hire the outside artiste. There should be close cooperation between the
department of art and copy as they supplement the work of each other.
5. Production Department. When a copy is ready the agency proceeds to its mechanical
production, agencies generally use out side units for these production services. The
production manager as to move to the typographers or type setters to have copy set in type,
later to the photoengraver for the illustrations. Finally he moves to the electro-typer for
electro-types mats or other duplicate material in such qualities as needed.
6. Finance Department. The accountants are responsible to maintain accounts, billing and
collecting the dues from the customers. The checking section verifies the production and
publicity of each individual case, may be press medium or outdoor or radio or television or
cinema etc. The aim is to see that such publicity is really helping the advertiser. It is

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interested in realizing the goals of publishing whether the advertisement is to day or after a
couple of days or a week or a month.
7. Research Department. This section of the advertising agency is engaged in the study of h
effects of sales activities at the end of the point f distribution of a particular product.
Sometimes outside research organizations are employed to carry on such research as they are
more economical and reliable. The Research director takes the assistance of analyst,
investigators, marketing assistants clerks and librarians. All these persons are trained in
research work and are in a position to evaluate the information relating to the product.
8. public Relations Department. The birth, growth and survival of an advertising agency
depend very much on the public opinions, support and feelings it sis public opinion that
decides the destiny of the enterprises. The department establishes an maintains mutual
understanding between the organisation an the public. Public relations approach is the
product of publicists an advertising men. The department is headed by the Public relations
Director who a to struggle hard to have always high opinion about the firm. Once the image
is lost the whole business comes to a standstill.
1.10 PURPOSE OF ADVERTISING AGENCIES
• Advice & counsel on marketing strategy.

• Advice & counsel on advertising and media strategy.
• Prepare & develop, print, outdoor, and electronic advertisement.
• Carry out collateral designs of various items such as display material & other display
Material.
• Help & counsel on sales promotion & other communication tasks.

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Organizational Chart Of Ad Agencies
1. Timely and Satisfactory work. Agency is highly specialized in the field of publicity.
It has wider contacts with media owners that facilitates the entering of contacts both
for space and time. It employs experts and veterans in the field of advertising like
photographers, lithographers, block makers, painters, artists, painters, actors singers,
announcers who re fully and timely tapped by the agency director. With such ready
made and deliberate facilities, the quality of advertisement improves to a greater
extent and guarantees timely presentations.
2. Advertiser is freed and given the Benefit of economy. Advertising agency is

really a boon, especially, for the small and medium sized units because neither they
are in a position to meet all the expenses of securing space or time nor, they can
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undertake the work which is ticklish and bothersome. The advertising programme is
designed at economical terms by the agents with all the benefits of carefreeness.
3. Sound appropriation of Funds. Agency being the proof of expert is fully aware of
the cost of each media: as such it is able to allocate the available funds on various
items in publicity budgets. This results into net resource allowance allocation and
utilisation. Thus the common advertiser may misapply the funds to his disadvantage
due to the lack of through knowledge. Where as agency does it most appropriately in
pragmatic way to have best results.
4. Conducting Market Research. Research is accepted as one of its functions. Research

dilemma is the greatest when eh agency first takes new care of advertising were it is urgent
to get fully acquainted wit the client's past history, present needs and future potentials.
Market research work involving study of product and people an methods of marketing will
be done at economical rates as full time seasoned staff is available. The research
departments is well equipped with collection, analysis and interpretations of the market
data.
Evaluation of the Advertising Agency
There are some options of Evaluation of the Advertising Agency
(i) Space Broker Stage. About 1840 several people worked as sales representative. They
acted as simple agents to sell space in newspapers on commission basis. But after sometime
they used to take full pages and sold position of it to whatever price they would get from
advertisers. This was known as 'Space broker Stage' in modern advertising agency system.
Thus price cut was seen from advertisers. There was inefficiency in business.
(ii) Standard Service Stage. The agent bought the space by 1876 an got it on printed rates of
the newspapers. Thus the agent was not the seller of space buy became buyer for them from
the newspapers. They charged the advertisers for copy writing, art work, layout, media
selection and research. By 1900 advertising agencies envolved. It began to solve clients
problems. They contracted the magazines. The recognised agencies were given commission by
the newspapers. Advertisers were not allowed to put direct advertising to papers.
(iii) Marketing Agencies Stage. Advertising agencies grew with the industrial expansion.
About 1958 agencies gave different and highly skilled services to the clients and it was highly
used in marketing mix. Thus advertising agencies entered the marketing service stage and

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hence forth we got full service agency system.
Agency Commissions
media commission system

 15% media commission
adjustable commission rates
 negotiate to match client budget
 sliding scale
markups-production & service
 add a percentage markup to costs
 17.65% of net = 15% of gross
Types Of Fee Systems
fixed fee (retainer)

cost-plus fee
performance fee
commission fee
Incentives
Most scientific way to pay an agency.

Agency is rewarded on the basis of the results it achieve for the client.
But, results based on many factors, such as competitive efforts, not just
advertising
Choosing an Agency – Process
1. Set goals.
2. Select process and criteria.
3. Screen initial list of applicants.
4. Request client references.
5. Reduce list to 2-3 viable agencies.
6. Request creative pitch.
Choosing an Advertising Agency-Factors
 Work with the agency that handles the advertising in the firm’s home
market.
 Pick a purely local agency in the foreign market.
 Choose the local office of a large international agency.
 Select an international network of ad agencies that spans the globe.
Evaluation Criteria In Selecting Advertising Agency

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Size of agency
Relevant experience
Conflicts of interest
Product capabilities
Media purchasing capabilities
Client retention rates
Personal chemistry
Market coverage
Quality of coverage
Expertise with developing a central international campaign
Creative reputation
Scope and quality of support services
Desirable image (“global” versus “local”)
Conflicting accounts
Other services availability
Client Agency Relationship- Principles

The agency avoids advertising a close substitute competing product.
The agency receives the green signal from the client for all expenses incurred on
its advertising.
Agency keeps the media commission for itself and the client undertakes to foot
the bill promptly.
If media grants any cash discount it is passed on to the client.
Agency is not taken for media lapses in terms of scheduling, positioning etc.
Agency – Media Relationship Principles

The agency alone is responsible for payment to the media.
Agency doesn’t allow any cut from the commission received from the medium to
go the client.
The media do not discriminate amongst the agencies dealt with and follow a
uniform policy for all agencies.
Media do not alter the advertising material without the prior consent
1.11 ADVERTISING CAMPAIGN

It includes a series of ads. Placed in various media, that are designed to meet
objective and are based on an analysis of marketing and communication
situations.

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S.Waltson Dunn
STEPS IN ADVERTISING CAMPAIGN
I Appraisal Of Advertising Opportunity

Presence of positive primary demands
Good chances of product differentiation
Products have hidden or not readily noticeable qualities
Presence of powerful emotional buying motives
Availability of sufficient funds
II Analyzing and defining the target market
Who buys the product?
What do they really buy?
When do they buy?
How do they use the product?
III Setting Advertising Objectives
Use hierarchy of effects model so that the components of a campaign support
each other and thereby stand a better chance of creating positive synergy in
influencing the consumer choice.
No rule with specific set of guidelines that all advertising must follow to achieve
certain objectives.
IV Determining the Advertising Budget

Is basically a plan to allocate financial resources to advertising for future
operations and should be reviewed constantly keeping in view the changing
market conditions.
V Deciding Media and Creative strategy

Media plan is developed simultaneously with creative plan.
It determines the best way to reach the audience with the advertiser’s message.
Creative strategy concerns message to deliver to the audience for accomplishing
the objectives.
VI Creating Ads Pre test & Release Ads

Rising cost of media, Thousands of advertising messages competing to get
noticed and audience apathy and often dislike of ads make it essential for
companies to be reasonably sure that the campaign message is attended to and
comprehended.

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VII Evaluating The final results

Evaluative research
Ongoing test
Provides feedback
Helps future planning.
1.12 ADVERTISING OBJECTIVES

5%/
Repurchase/
Regular
Setting Advertising Objectives /Use
Advertising Objectives should be operational.

10 % Trial
They should be effective criteria for decision making and should provide standards
with which results cab be compared.
20 % Preference
They should be effective communication tools, providing a line between strategic and
tactical decisions.
40 % Liking
DAGMAR Approach
60 % Knowledge / Comprehension
DEFINING ADVERTISING GOALS FOR MEASURED ADVERTISING RESULTS

80 % Awareness
Advertsing’s Job purely and simply , is to communicate to a defined audience

information and a frame of mind that stimulates action.
Advertising succeeds or fails depending on how well it communicates the desired
information and attitudes to the right people at the right time and at the right cost.”
Steps In Dagmar Approach :

 Awareness
 Comprehension
 Conviction
 Action

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Specific Task
Concrete , Measurable Tasks
Target audience
Bench Mark & Degree Of Change Sought
Specified time period
Assessment & Criticism

Problems with response hierarchy
Sales as the advertising goal
Practicality and costs
Inhibits creativity
UNIT – II
2.1 MEDIA
It refers to the general category of delivery systems available to carry advertising message to
a selected audience such as print, broadcast , outdoor etc.
2.2 MEDIA PLANNING
The process of choosing the vehicle of mass communication in which to place an

advertiser's message, purchasing that time or space, and insuring that the advertising message
runs as purchased."
It is also a series of decisions made to answer the question, "What are the best means
of delivering advertisements to prospective purchasers of a brand or service?"
Refers to a series of decisions that need to taken in delivering the ad message to the
largest numbers of the target audience in the most effective manner at the lowest cost
Some specific questions are
 How many prospects do I need to reach?

 In which medium or media?
 How many times a month?
 In which months?
 In which markets and regions should ads appear?
 How much money should be spent in each medium?
2.3 Media Selection Considerations

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Special Characteristics of Media:
• In-depth coverage & permanence:

Basically the media should have good coverage and should be a permanent source i.e. can be
red, re-red and retained; in this regard magazines are a good example.
• Variety of subjects covered:

It should not be restricted and should take care of variety of subjects.
• Mobility:
The media should be in a position to carry the message across to where ever desired. In this
regard the best example are newspaper and magazines which can be red and carried almost
everywhere i.e. in the house while traveling at the place of work or library etc.
• Results assessable:
Basically it is the effort of evaluation which is possible by dividing the cost of space by the
number of replies received.
2.4 MEDIA PLAN & STRATEGY

Step 1 : Situation Analysis:
Analysis and define the marketing problem. What are the company’s and competitions
strengths and weakness? What are the opportunities and threats?
Step 2 : Marketing Strategy

Formulate activities that will solve concerned marketing problems:
 Marketing objectives
 Target market segments
 Marketing mix decisions.
Step 3 : Advertising Strategy
Decide what message to communicate through advertising

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Detailed profiling of target audience

Product and its positioning decision
Communication media to be used
Advertising message and appeal.
 Index = % of users in a demographic segment

---------------------------------------------------------- * 100
% of population in the same segment
 BDI = % of Brands total country sales in ---

---------------------------------------------------------- * 100
% of total country population in -------
 CDI = % of product category total country sales in ---

---------------------------------------------------------- * 100
% of total country population in -------
Step : 4 Setting Media Objectives

Set media goals that can achieve advertising objectives.
Eg. Use print media to provide coverage of 80% of the target market over a 6 month period.
Step : 5 Determining Media Strategy

 Set guidelines for the selection and use of media
 Select the best strategy alternative
 Media Mix & target market coverage
 Geographic coverage
 Media Scheduling
Step : 6 Selection Of Media

 Comparing and selection the media class the best fulfils the criteria, such as TV ,
newspapers, magazine, radio or others.
 Audience size and characteristics are used in making inter media comparisions.
 Media planners will specify particular media vehicles in a media class, such as the
names of magazine, newapapers, TV programme etc.

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2.5 Media Reach & Frequency
Frequency = Total Exposures

-------------------------
Reach
Programme Rating
= No of household viewing the Program

----------------------------------- * 100
Total number of household owning TV sets
Gross Rating Points = Reach * Frequency
Frequency = Gross Rating Point

---------------------------
Reach
Reach = Gross Rating Point

---------------------------
Frequency
Target Rating Points

Refers to the number of times (frequency) and the number of individuals in the
primary target audience that the media will reach.
2.6 Important Factors in determining Frequency levels
Marketing Factors
 Brand history
 Brand share
 Brand loyalty
 Purchase cycles
 Usage cycle
 Competitive Share of voice

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 Target group
Message or Creative factors

 Message complexity
 Message uniqueness
 New versus continuing campaigns
 Image versus product sell
 Message variation
 Wearout
 Advertising units.
Media Factors
 Clutter
 Editorial environment
 Attentiveness
 Scheduling
 Number of media used
 Repeat exposures
Qualitative Aspects Of Media vehicle Source

 Expertise
 Prestige
 Editorial Fit
 Mood Created
 Involvement
 Unbiased approach
Determining The Relative Cost Of Media
 Cost per thousand (CPM)

Cost of ad space
-------------------------- * 100
Circulation
 Cost per Rating Point (CPRP)

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Cost of commercial time

-------------------------- * 100
Programme rating
 Milline Rate
Is the cost in rupees per line of standard dimensions to reach a newspaper circulation
of one million. Alternately to calculate the cost of space, rupees, per square inch, or
square centimeter is used for media buying. Newspaper with higher circulation
figures charge more per line or per unit space.
 Media Scheduling
Once the media has been selected , it is necessary to determine the timing and
allocation of advertising insertion.
It concern answering such questions as
 How many of each media vehicles space and time units be bought?
 Over what time units, this will be bought?
 Over what time units, should such buying be ?
2.7 MEDIA SCHEDULING

Scheduling refers to the pattern of advertising timing, represented as plots on a yearly
flowchart. These plots indicate the pattern of scheduled times advertising must appear to
coincide with favorable selling periods. The classic scheduling models are Continuity,
Flighting and Pulsing.
I Continuity
This model is primarily for non-seasonal products, yet sometimes for seasonal products.
Advertising runs steadily with little variation over the campaign period. There may be short
gaps at regular intervals and also long gaps—for instance, one ad every week for 52 weeks,
and then a pause. This pattern of advertising is prevalent in service and packaged goods that
require continuous reinforcement on the audience for top of mind recollection at point of
purchase.
Advantages:
Works as a reminder Covers the entire purchase cycle Cost efficiencies in the form of large
media discounts Positioning advantages within media Program or plan that identifies the
media channels used in an advertising campaign, and specifies insertion or broadcast dates,
positions, and duration of the messages.
II Flighting (or "bursting")

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In media scheduling for seasonal product categories, flighting involves intermittent and
irregular periods of advertising, alternating with shorter periods of no advertising at all. For
instance, all of 2000 Target Rating Poinered in a single month, "going dark" for the rest of
the year. Halloween costumes are rarely purchased all year except during the months of
September and October.
Advantages:
 Advertisers buy heavier weight than competitors for a relatively shorter period of time
 Little waste, since advertising concentrates on the best purchasing cycle period
 Series of commercials appear as a unified campaign on different media vehicles
III Pulsing
Pulsing combines flighting and continuous scheduling by using a low advertising level all
year round and heavy advertising during peak selling periods. Product categories that are sold
year round but experience a surge in sales at intermittent periods are good candidates for
pulsing. For instance, under-arm deodorants, sell all year, but more in summer months.
Advantages:
 Covers different market situations
 Advantages of both continuity and flighting possible
Types Of Scheduling
 Steady Pulse
Eg one ad per week for 52 weeks
 Seasonal Pulse
Eg A/C For summer seasons
 Period Pulse
At regular intervals but not related to the seasons.
 Start up pulse;
Heavy media scheduling for new product
 Promotional pulse:
Suits for particular promotional theme of a company.
 Erratic Pulse:
Advertising is spaced at irregular intervals.

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2.8 Media Types

I Broad Cast Media
Television
 Doordarsan
 Star TV
 Sun TV
 B.B.C
Radio
 FM
 BBC
II Non Broad Cast Media

 Video Cassettes
 Audio Caseettes
 Cable Television
 Cinema
III Print Media

Newspapers
 National
 Regional
 Daily
 Weekly
 Sunday
Magazines
 General Interest
 Special Interest
 Trade Publications
 Institutional Publications
IV Direct Response
 Mailers as letters
 Mailers as pamphlets
 Telemarketing

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V Outdoor Media
 Posters
 Hoardings
 Wall painting
 Neon Signs
 Sky Advertising
VI Vehicular Media
 Mainline Trains
 Sub Urban Trains
 Buses & trams
 Taxis & Auto Rickshaws
 Private Vehicles
VII Point Of Purchase Media

 Banners
 Stickers
 Packaging
 Painted Signs
 Hangings
 Baskets
VIII Specialty Media

 Signed Printed – T Shirts
 Buttons
 Caps
 Stickers
IX Internet
 Vortal
 Portal
 Independent websites
 Screen savers
IX Other Media
 Trolleys at airport
 Clowns/ Tall man

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 Ads in Movies and Videos

 Sandwich Man
I NEWSPAPERS
Advantages
 Flexibility:
• advertising space from 1 inch to multiple pages can be used.
• ads can be scheduled on any day of the week.
• ads can be prepared on very short notice.
 Range Of Market Coverage
Provide geographical flexibility.
 Competitive Advantage:
Relatively cheap as against other media.
 Positive Consumer Attitudes:
High reader interest & approx 80% coverage.
 Interaction Of National & Local:
Provide a bridge between the national advertiser and the local retailer.
Disadvantages
Despite being very useful medium for advertising it has certain disadvantages which should
be kept in mind and are as under:
1. No Audience Selection: Does not provide audience selectivity.
2. High waste circulation: makes them too expensive on national basis.
3. Short life Span: unlikely to be put aside and read later like magazine.
4. Poor reproduction: generally poor color reproduction.
II MAGAZINES
Advantages
 Target Audience:
The magazines can reach specialized audiences and thereby prove very useful e.g.
magazines like men’s health target men’s for their health and women magazines target
women.
 Audience Receptivity:
Magazines have a very high level of audience receptivity such as an ad in fortune magazine
would impress business audience.
 Long life Span:
Magazines have longest life span of all the media because some of them might never be
discarded like National Geographic magazine etc. moreover these have highest reach
potential as they are past along to family friends customers and colleagues.

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 Format:
Generally, the magazines format allows creative advertising variety through multiple pages
inserts and other features.
 Visual Quality:
The production quality has become excellent being printed on top class paper and with very
good reproduction quality.
 Sales promotions:
Advertisers can use magazines to distribute various sales promotions like coupons, samples
and information cards etc.
Disadvantages:
Magazines are limited by certain factors and the most prominent disadvantages as are given
and explain below:
 Limited distribution: In view of the magazines having limited distribution they lack
penetration, thus selectivity of the medium is lost.
 Lack of immediacy:
Advertisements may take long time to have an effect on the reader because some readers may
not look at an issue of a magazine until after it comes to them so the ad may take long time to
have an effect on the reader.
 Limited flexibility:
Despite magazines offering advertisers many benefits long leave time and limited flexibility
are drawbacks there is closing dates often 2 to 3 months prior to the date of issue.
 High cost:
The production costs for magazines are relatively high because of high quality color
production.
III TELEVISION
Advantages
 Creativity and Impact:
The greatest advantage of TV is the opportunity it provides for presenting the advertising
message, the blend of sight and sound offers tremendous creative flexibility and resultantly
making deep impact.
 Coverage and cost effectiveness:
Television advertising makes it possible to reach large audience nearly everyone regardless
of age, gender, income or educational level watches TV at least for sometime. In view of the
large coverage of its telecast makes it more effective both for advertising and cost
effectiveness.
 Captivity and attention:
The combined power of site, sound, motion and emotion creates a very good effect
 Selectivity and flexibility:

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In TV advertising some selectivity is possible to due to variations in the composition of

audiences as a result of program content time of telecast and geographical coverage.
Limitations:
• Costs: It is enormously expensive medium to advertise.

• Lack of selectivity: TV doesn’t offer as much audience selectivity as radio, magazine,
newspapers or direct mail for reach precise segment of the market.
 Fleeting message: Television commercials usually last from 30 seconds or less and leave
nothing tangible for the viewer to examine or consider.
• Clutter: The problem of reading messages and shorter commercials suggests that since the
advertiser message is only one or more spots its results in effectiveness because of such
clutter.
• Limited viewer attention: Buying time on a TV program it communicates a message to
large number of customers yet there is increasing evidence that the size of viewing audience
shrink during a commercial break.
• Deception in television advertising: Art and technology is being used to create simulations
to tell stories to evoke desired reaction from the audience. Basically a tantamount to say
what is not actually true.
IV RADIO
Advantages:
• Low cost option.
• Definable target markets based on their format.
• Radio stations offer considerable flexibility & a short lead time.
• Intimacy like FM stations etc, liking to presenters, DJ’s etc.
• Mobile: Its portability makes it mobile and can be taken anywhere.
Disadvantages:
Radio has its disadvantages too which are given below:
• Short exposure time: Radio advertisements normally last only 15 or 30 seconds and
listeners busy with other activities may not register them.
• Target duplication: Several radio stations may try to reach the same target market and
advertising on all of them may not be financially feasible yet reaching everyone in that
target market may not be possible unless all stations are used.
• Overloading of ads: Normally too much information is put in one add thus overloading
the consumer mind and very little is retain.
• Loyal listenership: Radio stations have loyal listener who do not prefer to listen to other
stations.

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V CABLE TV :
Advantages
• Can buy time on programs for specific audiences
• Cost is lower than normal TV.
• Production costs more affordable.
• More innovative production people available.
• Message reach assured
Limitations:
There are various disadvantages of cable TV which limit its benefits these are appended
below:
• Limited or small Reach.
• May have less experienced production crew.
• Reaching specific customers, but not potential customers.
• Audience may be fragmented and viewers may stay with a program for a shorter period of
time.
VI TRANSIT ADVERTISING
Advantages
• Exposure to one ad can be long if inside a transit vehicle.
• Frequency.
• Ads outside the transit vehicle are seen by large & diverse audiences.
• Ad message can be timely.
• Method tends to be quite inexpensive.
• Ads could be somewhat lifestyle targeted – passing through specific neighborhoods.
Disadvantages
• Ad design is usually limited to size of space.
• People on mass transit are not generally in a receptive mood.
• Transit ads are hard to target.
• Surroundings may distract from the message.
• Mass transit environment may not suit Message.
VII BILLBOARDS ADVERTISING

Advantages
• Big splashy messages attract attention.
• Ad has impact: technology has made it more interesting.
• Ad reaches lot of people, as they travel same route every day.
Disadvantages
• Hard to reach specific audience.
• Creativity inhibited by space limitations.

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• Hard to measure its effectiveness.

• Ad may become weathered & vandalized.
• Costs though reasonable could become quite expensive by innovative adaptations.
VIII VEHICULAR MEDIA

Advantages:
● Cheap & records for higher exposure
● Strong reinforcement
● Bright colors and creativity can catch the attention.
● Commuters inside the bus and trains have enough time to gaze through the adv
message
● People may Object as it distract the attention of the people driving on the road.
Disadvantages:
● Since the vehicles move at speed Message may not be read by the people
● Media does not focus on a particular audience group internet.
IX INTERNET MEDIA
Advantages:
● Fast growing
● Ability to reach narrow target audience
● Short lead time
● Moderate cost
Disadvantages:
● Difficult to measure ad effectiveness and ROI
● Ad exposure relies on “click through”
● Not all consumers have access to internet
X OUTDOOR MEDIA
Advantages:
● High exposure frequency
● Moderate cost
● Flexibility
● Geographic selectivity
● Broad, diverse market
Disadvantages:
● Short message
● Lack of demographic selectivity

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● High “noise” level
XI ONLINE ADVERTISING
 Button Ads:
Squarish Ads that are usually at the bottom of a web page & contain only a corporate
name of brand.
 Click Through or Click Rate:
How often a viewer responds to an ad by clicking on it.
 Cookies:
Information stored on a viewer’s web browser to help identify that particular person to
the web provider – the next time that viewer visits a particular site.
 Cost per Click:
The rate charges to advertisers if the user responds to a displayed ad.
 Cost per Lead/Sale:
The rate charged to advertisers if the user responds with personal information.
 Impressions:
The total number of times an ad is displayed on a web page – different than hits.
 Sponsorships, or Co –Branded Ads:
Integrating companies brands & products on web sites.
 Ad Views:
Number of times an ad banner is down loaded.
 Banner:
Ad on Web site hot linked to advertiser’s site.
 Interstitial:
An ad that appears in a window on your screen while waiting for web page to load.
 Rich Media:
Special effect technology like streaming video, audio used for internet ads etc.
IMPORTANCE OF ONLINE ADVERTISING

One of the very few media alternatives that can be used for almost all advertising purposes
across all possible market segments.
• There is rapid acceptance of Internet as a medium of connectivity & commerce.
• Provides more interactivity with customers.
• Consumers can interact with a product & build their own experience with it.
2.9 COMPARISON OF ADVERTISING

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2.10 OBJECTIVES OF ONLINE ADVERTISING

The objectives of online advertising are given and explained below:
Build brands: Many top fortune 500 companies tell the world about their products &
educate public.
Drive traffic to website: Online advertisements offer proven way to steer interested buyers
to website to know more about products & services.
Develop qualified leads: On website through best copy & pictures convince the prospects
for good business.
Conduct sales: Once convinced sales can be closed either online or direct buyer to sales
channel.
2.11 TYPES OF ONLINE ADVERTISING

There are different types of online advertising in use and these are as follows:
 World Wide Web Home Page: The web page can identify retailers and other product
providers that can prove useful for the consumer.
 Banners: These are easy to create and are usually placed on a website featuring
complementary products.
 Logos: Company logos are placed at the top of the websites and generally depicts the
motto or operations of the company.
 Email Ads: By creating compelling email experiences advertisers hope to convey
their
message in a better way.
 Keywords on Search Engines: Advertisers can buy keywords on search engines to
increase their exposure.
 Classified Ads: Classified ads work because as far as users are concerned they are
content and not advertising as people actively seek out the classifieds when they are
looking to buy such as a sight like ebay.com
 Interstitials: These are those adds that popup when the users load a new page. In fact
when the user hits a button to link to a new page the interstitials is display and disappears
as soon as the new page is loaded.
 Sponsored Mailing List: Mailing list offer advertisers highly targeted audience that
gather to discuss specific interest.

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2.12 CHALLENGES OF ONLINE ADVERTISING

Marketing Challenges:
• Need for simpler language.
• Where ever practical use same language.
• Need for selling the internet in simpler way.
• Obtain & distribute accurate figures about size of online audience.
• Collate research about online penetration and attentiveness.
Educational Challenges:
• Special Initiatives needed to educate the advertisers about benefits & methods of online
advertising.
Structural challenges:
• At present planning process remains a particular challenge.
• Lack of good copy or Marketing technique.
• A compelling & irresistible offer essential for prospect.
New Developments
• Better Metrics.
• Greater use of Sound.
• More customer support.
• Customized websites.
2.13 TOOLS FOR ONLINE ADVERTISING
Macromedia Flash MX: It is a professional standard authoring tool to produce high –

impact Web sites. High creativity is possible with animation, interactive navigational controls
etc.
Adobe Photoshop: It is comprehensive toolset with new capabilities. Experiments with

painting effects, patterns for stand out images. Tools like retouching, painting, drawing &
web tools can help in creating extraordinary images.
JAVA: It is extensively used in internet media for applets, graphics & other interactive
applications.
HTML: Hyper text markup language is very useful tool in creating web pages.
DHTML: It is dynamic form of pre existing HTML.

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ASP & JSP: Active server pages & Java server pages –latest technology for interactive web
pages.
UNIT – III
3.1 TYPES OF ADVERTISING
I Geographical Spread – Basis

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 National
Offers a product or service to the general consumer audience across the country Eg
IBM
 Local:
Firms may like to restrict their business to a very small geographical area – state or a
region. Eg Jewellery, Retail Chain
 Global:
MNC Advertisement for all the countries where the product is selling with minor
differences with culture & legal factors. Eg Nestle,
II Target Group – Basis

 Consumer
Aims at directly meeting the needs of the target segment to promote the sale of the
advertised product. Eg. Unit Trust Of India
 Industrial
Refers to those advertisement which are sponsored by the manufacturing or country
distributors and is aimed at buyers of the industrial products. Eg . Petroleum
Conservation research association, Vinar , Tata Steel
 Trader
Aims to promote product to wholesalers and retailers.
Co-operative Advertising - Strategy in which a retailer shares advertising costs with
a manufacturer or wholesaler
 Professional
Is directed towards people who are not the actual users of a product but influence
the purchase decision for their customers. Eg Drugs
Institutional /Corporate
Aims by institutions to build up image of itself in the public mind.
 Pioneering - Information new products
 Image Building – Reinforce, create
 Advocacy –Communicate a view on issue
Eg Bajaj , Shakthi Masala, Tata,
III Impact - Basis

 Demand
 Primary

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Aims to stimulate the overall demand of the whole product category

Eg Coffee Board, Egg Board
 Selective
Aims to stimulate the demand for a particular brand in a product class.
Eg Nescafe
 Action
 Direct
That stresses & persuades immediate buying of the product
- Informative
- Persuasive
- Reminder
Eg Ice creams, chocolates
 Indirect
It attempts to create a favorable attitude towards the sponsor and his products
or services. Eg Mobile
IV Product Basis
 Pioneering – Explain new product
 Competitive – compare competition
 Remind/ Reinforce -– remind, reinforce, encourage repeat purchase
V Non Product – Basis

 Idea - Aims to convey the idea about some topic. Eg AIDS, Energy Conservation
 Service - Service sectors Eg Hotels, Airlines
 Financial - Communication to shareholders, public about financial position Eg
Balance Sheet
 Personal - personal advertisements Eg greetings, Obituary
VI APPEAL – BASIS
 Rational - Aims to provide information , it explains the consumer benefits rather
than product features. Eg Aquaguard
 Emotional - Fear, Humor, Sex advertisements. Eg Deebeers, ICICI Prudential,
Slice,

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VII Other Type
 Celebrity Advertisements
Use of celebrity spokespeople for products. It build brand equity but can hurt brand if
celebrity is hit by scandal.
 Surrogate Advertising
It is prominently seen in cases where advertising a particular product is banned by law.
Eg Kingfisher beer brands
 Covert Advertising
A product or a particular brand is incorporated in some entertainment and media
channels like movies, television shows or even sports.
3.2 CREATIVE ADVERTISING
It denotes originating, an idea or a thing that did not exist before.

It involves combining previously unconnected ideas or objects into something new.
It can be learned & used to generate original ideas.
Advertising Creativity
It is the ability to come up with fresh, perhaps unconventional, unique, appropriate

and effective ideas that can be used as solutions to an advertiser’s communications
problems.
A creative idea can be appropriate and effective only when it is relevant to the target
audience’s needs, wants, or aspirations.
Stages Of Creativity
Preparation Stage;
The creative people immerse himself or herself in the problem. At this stage the
writer gathers the raw material that will become the substance the should exist in the mind of
creative person in the form of previous experience.
Mental Digestive stage:

Once the raw material has been gathered, the creative person’s mind takes over and
begins to work on the material constantly and vigorously, trying to find that elusive new

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relationship that is the foundation of an idea. At this stage writer reaches the point of
exhaustion and hopelessness.
Incubation Stage:
At this stage writer puts the problem out of his mind and turn it over the unconscious
mind to work on while he or she turns to something else. It is often referred to as day
dreaming.
Illumination Stage:
At the stage when the individual least expects it, a new idea will appear as if out of
nowhere. It is the stage of creative the process that most people associate with the creative
act.
Application stage:
The creative person takes his or her idea out into the real world to test it against reality
to see. If it really works. This stage requires patience and persistence to see the
implementation of the idea through to its final success.
3.3 Elements of the creative strategy
Advertising Objectives:
It is a statement explaining the purpose and role of an advertising campaign or a
particular advertisement. It should describe what the ad maker wants the target audience to
think, feel, or do.
Target Audience Profile:

It should include a profile of the target audience so that writers and artists can
understand the buying habits, lifestyle and motivation of the people who will be reading,
watching or listening to their ads.
Key consumer benefits;

A key consumer benefit is a product that is important, relevant and unique to a target
group of prospects. This is the reason why target audience should buy our product what the
consumer gets from buying and using our product.
Strategic Approach
It outlines the statement of how the product will be positioned, what appeals will be
used and what key benefits will be presented.

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Support:
It provides the copy writer with supporting details that explains the reason why the
audience should believe the primary message of the advertisement.
Tone, Style and Manner

Is a statement of the product personally to be conveyed or the manner and style of the
advertising campaign or individual advertisement. This statement should support the basic
selling premise and provide the appropriate personally or feel to the advertising.
3.4 ADVERTISING APPEAL
Reason for a person to buy a product

The approach used to attract the attention of consumers
It “moves people, speaks to their wants and needs, excites their interest”
Types of Appeal
Fear
Humor
Sex
Music
Rationality
Emotions
Scarcity
Rational Appeal
Focuses on the consumer’s practical, functional, or utilitarian need for the product or
service
Emphasizes the features or benefits
Messages emphasize facts and logic
Used by business-to-business advertisers.
Well-suited for
 Print media
 Complex products
 High involvement products


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 Rational Motives
 Comfort
 Convenience
 Economy
 Health
 Quality
 Dependability
 Durability
 Performance
 Efficiency
 Feature appeals - Focus on the dominant traits of the product

 Competitive appeals- Makes comparisons to other brands
 Favorable price appeals- Makes price offer the dominant point
 News appeals - News or announcement about the product
 Product/service popularity appeals –Stresses the brand’s popularity
EMOTIONAL APPEAL
 Relate to consumers’ social and/or psychological needs for purchasing a product or
service.
 Many advertisers believe consumers’ emotions work better at selling brands that do
not differ from competing brands.
 Based on three ideas:
o Consumers ignore most ads
o Rational ads go unnoticed
o Emotional ads can capture attention
 Key to developing brand loyalty.
 Use more in b2b advertising.
SCARCITY APPEAL
 Based on
o Limited supply
o Limited time to purchase
 Tied with promotional tools such as contests, sweepstakes, and coupons.
 Encourage customers to take action.

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OTHER ADVERTISING APPEALS
3.5 ADVERTISEMENT COPY
It refers to written material which is to be set in type for the print media or spoken by
announcers for broadcast commercials.
A copy writer translates the selling points of a clients product or services into benefits
for selected consumers. He is concerned with what to say and show, how best to say
and show it.
A copy writer must know about

 The competition
 Appeal to be used
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 Editorial environment of the media

 The Theme
 Objectives of copy
 Product & its attributes
 Target market
 Elements of the marketing mix
 Statutory regulation.
Divisions/ Structure Of Copy
 HEADLINE
Is a word or phrase which is more prominent and catching than the other elements of the
copy,
And carries an ad message either below or above it.
Essential of a Good Headline

 Must break the ice
 Concise
 Specific
 Provocative
 Relevance
Forms Of Headlines
 Direct Forms Headline - “ Exclusive double duty door lock from Godrej”
 New Headline – “Nation’s Best News Channel
 Curiosity or provocative – What does the next generation want from us?
 Selective Headline – “The choice of Mothers”
 Humorous Headline – “Bonds in A Snap”
 Command Headline – “Be Yourself”
 Situation Headline – Tsunami, Swine Flu
 Challenging Headline – Money Back offer, HLL
 Negative Headline - I don’t Need a Insurance
 Affirmative Headline – Growing Children need Complan
 Question Headline – ‘Why Kenstar microwave Oven?
 SUB – HEADLINE

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 An advertisement may express a provocative thought in the headline, which may

require further explanation.
 May be used to expand on the thought
Eg. “The Finolex Assurance” “No Shocks. No Short Circuit. No electrical Fires”
 BODY COPY
 The main text of the advertisement called ‘Body Copy” is the logical continuation of
headlines and subheads, and completes the sales story.
Elements of the Body

 Lead In – bridge between the headline, the sub heads, and the sales ideas.
 Interior paragraphs- This is where proof should be given for product claims and
promise made in the headline. To be effective a copy should be always be credible
and truthful.
 Trial Close – This refers to request for the order. Good body copy should contain
request for the order more than once.
 Close – This is a point in the advertisement where the sale is made.
 SLOGAN
 Is a catchy Sentence or phase which is easy to remember.
 Are direct, short,, summarized
 It gives an identity to the company or to its products.
 Eg “Believe in the Best”
 OTHER ELEMENTS OF AN ADVERTISEMENT

 Pictures
 Seal
 Logo
 Signature
3.6 TYPES OF COPY
 Scientific Copy –Technical specification of a product are explained Eg .Saffola,

Colgate
 Descriptive Copy – In a non technical manner the product attributes are described.
 Narrative Copy – A fictional story is narrated.
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 Colloquial Copy – Informal conversational language is used to convey the

message.
 Humorous Copy – Effective humor makes the advertisement noticeable.
 Topical Copy – When the copy is integrated to a recent happening or event.
 Endorsement Copy – A product is endorsed by an opinion leader
 Prestige Copy – Distinguished and favorable atmosphere is created for the sale of
the product.
 Questioning Copy – Several questions are put forward not to seek answers but to
emphasis a certain attribute.
Essential of a Good Copy

 It must be compact and appropriate
 It must be clear and creative
 It must have character and colour
 It must be personal and convincing
 It must be interesting and entertaining
 It must be action oriented.
3.7 VISUAL ELEMENTS OF AN ADVERTISEMENT
I LAYOUT
 A plan which indicates where the different components of an headline, text and
illustrations are to be placed, for the effective communication of the advertising
message.
 It creates Image , It attract readership
 Elements Of A Layout
 Background
 Border
 Caption
 Coupon
 Decoration
 Heading
 Illustration
 Mascot

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 Name Plate
 Price
 Product
 Slogan
 Space
 Sub Heading
 Trade Mark
 Text
 Stages Of Layout
 Thumbnail Sketch – Refers to miniature rough sketches of possible layouts.
 Rough Layout – More detailed sketches done in the actual size of the final
layout.
 Finished layout – Once a selection has been made from among alternative
rough, a more finished layout is prepared.
 Comprehensive – Body copy or text will be pasted in and the ad appears on a
cardboard surface, so that it can be presented to the client.
 Artwork – This is a camera ready paste up prepared for distribution to the
media.
 Layout Format
 Standard Layout – This consist of a dominant illustration a headline, body
copy and logotype , arranged in that order. Also known as a conventional layout.
 Editorial Layout – This resembles editorial material in a publication. It can be
effective when the message is a serious one.
Poster layout – This is a picture dominant layout, with the visual covering almost
the entire advertisement.
Comic Strip Layout- This is a picture caption arrangement and could include
cartoon, drawings that follow the format of the comic strip.
 All –Type – Layout has no visual and includes only lettering.
 Qualities Of A Layout
Balance – An advertisement is balanced when it looks balanced that is. When
each element seems to appear in their place. This kind of balance in a layout
means that the top and bottom halves or the right and left halves contain identical
masses.

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 Proportion: This refers to the total space occupied by the layout elements, as
opposed to the white space around them. Elements in an advertisements should
be accorded space based on their importance to the completed advertisement.
 Contrast – It may be achieved through colour, size, shape or direction of

the layout elements. It helps emphasis certain elements of the
advertisements.
 Movement – A good layout is one which helps the eye move naturally
from one Element to another, leading the reader gracefully through the
advertisement in a logical sequence.
 Unity – This is achieved when the layout’s separate elements appear
optically tied together as a unified whole.
II ILLUSTRATIONS
These consist of Photographs, drawing, graphs, Charts, painting and other pictorial
devices. These are used to gain attention, comprehension, attitude change and
behavior change.
 Significance
 They are more effective than words
 They support the copy
 They are demonstration
 They can make us understand technical details.
 Associations and images are created
 They evoke moods.
 Color photograph give high fidelity to the products.
 Background and atmosphere can be shown effectively with their use.
 It attract attentions.
 It make advertising message believable.
 Bound the audience in the headlines and copy
 Good Illustration
 They should be suggestive.

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 They should be clearly reproduced

 They should be eye – reproduced
 They should be properly set in the total layout.
 They should be relevant.
 They should be suitable for the product and the media.
 They should harmonize with the copy.
 Methods Of Illustration
 Symbolic Illustration
 Comparison Illustration
 Product /use Illustration
 Magnification of details
 Product in the setting illustration
 Result of a product’ use illustration
 Product Alone Type illustration
 Dramatized illustration

III SIZE :
The readership increases proportionately with advertising size.
IV COLOUR :
It has been found that colours attract more attention than mere use of black and
white, in terms of readership.
V TOPOGRAPHY:
The choice of the typeface can also contribute to the mood. Image and credibility of
an advertisement. When selecting a typeface the factors to be considered are reading
ease, and the image of the advertiser.

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UNIT – IV
4.1 SALES PROMOTION
Definition: “Materials that act as a direct inducement, offering added value, or incentive for
the product, to resellers, sales persons or consumers.”
Designed for immediate (short term) increase in product sales.
Cirrus...Sweepstakes, cocktail parties, test drives
4.2 Selecting Promotional Tools
A marketer must do the following while planning and sending communications to a target
audience:
1. Identify the Audience

Individuals, groups, special publics or the general public.
Intermediaries vs Consumer
2. Identify the Stage of Product Life Cycle
o Introductory: Inform Publicity/Advertising/Sales force (interm.)/Sales
promotion (free samples)
o Growth: Persuade Differentiate from competitors offering
o Maturity: Remind Reminder advertising, Sales promotion (coupons)
o Decline: Cut budget
3. Product Characteristics
o Complexity: How much information must be communicated. The more
complex the message, the greater the need to use personal selling.
o Risk: Greater risk, greater need for personal selling
4. Stages of Buying Decision

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In many cases the final response sought is purchase, but purchase is the result of a long
process of consumer decision making. Need to know where the target audience now
stands (in the process), and what state they need to be moved to.
Adoption Process
o Not Aware--Advertising/Publicity
o Aware--no knowledge Advertising/Publicity
o Interest--how do they feel? Personal Selling/SalesPromotion/Advertising
o Evaluation--should they try? sales promotion/personal selling
o Trial--test drive/sales promotion
o Adoption--do they purchase? Reminder/reinforce--advertising

Communication programs goal must lead consumers to take the final step.
o
5. ChannelStrategies
-Push Vs Pull Policy
o Push-promotes product only to the next institutions down the marketing

channel. Stresses personal selling, can use sales promotions and advertising
used in conjunction.
o Pull-promotes directly to consumers, intention is to create a strong consumer
demand, primarily advertising and sales promotion. Since consumers are
persuaded to seek products in retail stores, retailers will in turn go to
wholesalers etc (use channels overhead)
4.3 Objectives of Sales Promotion

(i) To introduce new products
(ii) To attract new customers and retain the existing ones
(iii) To maintain sales of seasonal products
(iv) To meet the challenge of competition
Let us learn about these objectives in details.

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(i) To introduce new products: Have you ever heard about distribution of free samples?
Perhaps you know that many companies distribute free samples while introducing new
products. The consumers after using these free samples may develop a taste for it and buy
the products later for consumption.
(ii) To attract new customers and retain the existing ones: Sales promotion measures help
to attract or create new customers for the products. While moving in the market,
customers are generally attracted towards the product that offers discount, gift, prize, etc
on buying. These are some of the tools used to encourage the customers to buy the goods.
Thus, it helps to retain the existing customers, and at the same time it also attracts some
new customers to buy the product.
(iii) To maintain sales of seasonal products: There are some products like air conditioner,
fan, refrigerator, cooler, winter clothes, room heater, sunscreen lotion, glycerin soap etc.,
which are used only in particular seasons. To maintain the sale of these types of products
normally the manufactures and dealers give off-season discount. For example, you can
buy air conditioner in winter at a reduced price. Similarly you may get discount on winter
clothes during summer.
(iv) To meet the challenge of competition: Today’s business faces competition all the time.
New products frequently come to the market and at the same time improvement also
takes place. So sales promotion measures have become essential to retain the market
share of the seller or producer in the product-market.
4.4 Importance of Sales Promotion:
 The business world today is a world of competition. A business cannot survive if its
products do not sell in the market. Thus, all marketing activities are undertaken to
increase sales.
 Producers may spend a lot on advertising and personal selling. Still the product may
not sell. So incentives need to be offered to attract customers to buy the product.
Thus, sales promotion is important to increase the sale of any product.
 Let us discuss the importance of sales promotion from the point of view of
manufacturers and consumers.
From the point of view of manufacturers
Sales promotion is important for manufacturers because

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i. it helps to increase sales in a competitive market and thus, increases

profits;
ii. it helps to introduce new products in the market by drawing the
attention of potential customers;
iii. when a new product is introduced or there is a change of fashion or
taste of consumers, existing stocks can be quickly disposed off;
iv. it stabilizes sales volume by keeping its customers with them. In the
age of competition it is quite much possible that a customer may change his/her
mind and try other brands. Various incentives under sales promotion schemes help
to retain the customers.
From the point of view of consumers
Sales promotion is important for consumers because
i. the consumer gets the product at a cheaper rate;

ii. it gives financial benefit to the customers by way of providing prizes and sending
them to visit different places;
iii. the consumer gets all information about the quality, features and uses of different
products;
iv. certain schemes like money back offer creates confidence in the mind of
customers about the quality of goods; and
v. it helps to raise the standard of living of people. By exchanging their old items
they can use latest items available in the market. Use of such goods improves their
image in society.
4.5 Nature of Sales Promotion

 Encompasses all promotional activities and materials other than personal selling,
advertising and publicity.
 Grown dramatically in the last ten years due to short term focus on profits.
 Funds are usually earmarked for advertising are transferred to sales promotion.
 Often used in conjunction with other promotional efforts.
A. The advantages of sales promotion include the following:

1. Attracting customer traffic.
2. Maintaining brand or company loyalty.

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3. Offering quick results.

4. Providing customer value and a reminder function.
5. Increasing impulse purchases and volume sales.
6. Generating customer enthusiasm and patronage.
7. Developing channel member cooperation.
B. Sales promotion also has several disadvantages, as follows:

1. The image of the firm may be lessened if it always runs promotions.
2. Consumers may perceive a decline in product quality.
3. Profit margins are often lower for a firm.
4. Consumers may not make purchases when the items are sold at regular prices.
5. Sales promotion may shift attention away from the product and onto secondary
factors.
C. Sales promotion must be viewed as supplementary, and not as a replacement for other
tools.
4.6 GROWTH OF SALES PROMOTION
 Sales promotion has grown substantially in recent years. There are several reasons for
this dramatic growth in sales promotion.
 First, consumers have accepted sales promotion as part of their buying decision
criteria. It provides reluctant decision makers with an incentive to make choices by
increasing the value offered by a particular brand.
 Second, the increasing tendency of businesses to focus on short-term results has

helped spur growth in sales promotion, which can provide an immediate boost in
sales. Product managers also tend to view sales promotion as a way to differentiate
their brand from that of competitors in the short term.
 Third, the emergence of computer technology has enabled manufacturers to get rapid
feedback on the results of promotions. Redemption rates for coupons or figures on
sales volume can be obtained within days.

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 Finally, an increase in the size and power of retailers has also boosted the use of sales
promotion. Historically, the manufacturer held the power in the channel of
distribution. Mass marketers utilized national advertising to get directly to consumers,
creating a demand for the heavily advertised brands that stores could not afford to
ignore. With consolidation and the growth of major retail chains, however, retailers
have gained the power to demand incentives from manufacturers to carry their
products. Many sales promotions are designed to provide benefits to the retailers.
Sales Promotion Opportunities and Limitations

o Increase in sales by providing extra incentive to purchase. May focus on
resellers (push), consumers (pull) or both.
o Objectives must be consistent with promotional objectives and overall
company objectives.
o Balance between short term sales increase and long term need for desired
reputation and brand image.
o Attract customer traffic and maintain brand/company loyalty.
o Reminder functions-calendars, T Shirts, match books etc.
o Impulse purchases increased by displays
o Contests generate excitement esp. with high payoffs.
Limitations
o Consumers may just wait for the incentives

o May diminish image of the firm, represent decline in the product quality.
o Reduces profit margins, customers may stock up during the promotion.
o Shift focus away from the product itself to secondary factors, therefore no
product differential advantage.
4.7 SALES PROMOTION TECHNIQUES /TOOLS:
a)CONSUMER-ORIENTED SALES PROMOTIONS
 Consumer sales promotions are steered toward the ultimate product users—typically
individual shoppers in the local market—but the same techniques can be used to
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promote products sold by one business to another, such as computer systems,

cleaning supplies, and machinery. In contrast, trade sales promotions target resellers
—wholesalers and retailers—who carry the marketer's product.
 Following are some of the key techniques used in consumer-oriented sales
promotions.
PRICE DEALS
 A consumer price deal saves the buyer money when a product is purchased. The main
types of price deals include discounts, bonus pack deals, refunds or rebates, and
coupons.
 Price deals are usually intended to encourage trial use of a new product or line
extension, to recruit new buyers for a mature product, or to convince existing
customers to increase their purchases, accelerate their use, or purchase multiple units.
Price deals work most effectively when price is the consumer's foremost criterion or
when brand loyalty is low.
 Price Discounts: Buyers may learn about price discounts either at the point of sale or
through advertising. At the point of sale, price reductions may be posted on the
package, on signs near the product, or in storefront windows. Many types of
advertisements can be used to notify consumers of upcoming discounts, including
fliers and newspaper and television ads. Price discounts are especially common in the
food industry, where local supermarkets run weekly specials. Price discounts may be
initiated by the manufacturer, the retailer, or the distributor. For instance, a
manufacturer may "pre-price" a product and then convince the retailer to participate
in this short-term discount through extra incentives. For price reduction strategies to
be effective, they must have the support of all distributors in the channel. Existing
customers perceive discounts as rewards and often respond by buying in larger
quantities. Price discounts alone, however, usually do not induce first time buyers.

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 Bonus Pack or Banded Pack: Another type of price deal is the bonus pack or banded
pack. When a bonus pack is offered, an extra amount of the product is free when a
standard size of the product is bought at the regular price. This technique is routinely
used in the marketing of cleaning products, food, and health and beauty aids to
introduce a new or larger size. A bonus pack rewards present users but may have little
appeal to users of competitive brands. A banded pack offer is when two or more units
of a product are sold at a reduction of the regular single-unit price. Sometimes the
products are physically banded together, such as in toothbrush and toothpaste offers.
 Refund or Rebate: A refund or rebate promotion is an offer by a marketer to return a

certain amount of money when the product is purchased alone or in combination with
other products. Refunds aim to increase the quantity or frequency of purchase, to
encourage customers to "load up" on the product. This strategy dampens competition
by temporarily taking consumers out of the market, stimulates the purchase of
postponable goods such as major appliances, and creates on-shelf excitement by
encouraging special displays. Refunds and rebates are generally viewed as a reward
for purchase, and they appear to build brand loyalty rather than diminish it.
 Coupons: Coupons are legal certificates offered by manufacturers and retailers. They
grant specified savings on selected products when presented for redemption at the
point of purchase. Manufacturers sustain the cost of advertising and distributing their
coupons, redeeming their face values, and paying retailers a handling fee. Retailers
who offer double or triple the amount of the coupon shoulder the extra cost. Retailers
who offer their own coupons incur the total cost, including paying the face value. In
this way, retail coupons are equivalent to a cents-off deal. Manufacturers disseminate
coupons in many ways. They may be delivered directly by mail, dropped door to
door, or distributed through a central location such as a shopping mall. Coupons may
also be distributed through the media—magazines, newspapers, Sunday
supplements, or free-standing inserts (FSI) in newspapers. Coupons can be inserted
into, attached to, or printed on a package, or they may be distributed by a retailer who
PROMOTION Page 57
uses them to generate store traffic or to tie in with a manufacturer's promotional

tactic. Retailer-sponsored coupons are typically distributed through print advertising
or at the point of sale. Sometimes, though, specialty retailers or newly opened
retailers will distribute coupons door to door or through direct mail.
CONTESTS/SWEEPSTAKES
 The main difference between contests and sweepstakes is that contests require
entrants to perform a task or demonstrate a skill that is judged in order to be
deemed a winner, while sweepstakes involve a random drawing or chance contest
that may or may not have an entry requirement.
 At one time, contests were more commonly used as sales promotions, mostly due
to legal restrictions on gambling that many marketers feared might apply to
sweepstakes.
 Furthermore, participation in contests is very low compared to sweepstakes, since

they require some sort of skill or ability.
SPECIAL EVENTS
 According to the consulting firm International Events Group (IEG), businesses spend
over $2 billion annually to link their products with everything from jazz festivals to
golf tournaments to stock car races. In fact, large companies like RJR Nabisco and
Anheuser-Busch have special divisions that handle nothing but special events.
 Special events marketing offer a number of advantages. First, events tend to attract a
homogeneous audience that is very appreciative of the sponsors. Therefore, if a
product fits well with the event and its audience, the impact of the sales promotion
will be high. Second, event sponsorship often builds support among employees—who
may receive acknowledgment for their participation—and within the trade.

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 Finally, compared to producing a series of ads, event management is relatively

simple. Many elements of event sponsorship are prepackaged and reusable, such as
booths, displays, and ads. Special events’ marketing is available to small businesses,
as well, through sponsorship of events on the community level.
PREMIUMS
 A premium is tangible compensation that is given as incentive for performing a

particular act—usually buying a product.
 The premium may be given for free, or may be offered to consumers for a
significantly reduced price. Some examples of premiums include receiving a prize in
a cereal box or a free garden tool for visiting the grand opening of a hardware store.
 Incentives that are given for free at the time of purchase are called direct premiums.
These offers provide instant gratification, plus there is no confusion about returning
coupons or box tops, or saving bar codes or proofs of purchase.
Other types of direct premiums include traffic builders, door openers, and referral
premiums. The garden tool is an example of a traffic-builder premium—an incentive to lure
a prospective buyer to a store. A door-opener premium is directed to customers at home or to
business people in their offices. For example, a homeowner may receive a free clock radio
for allowing an insurance agent to enter their home and listening to his sales pitch. Similarly,
an electronics manufacturer might offer free software to an office manager who agrees to an
on-site demonstration. The final category of direct premiums, referral premiums, rewards the
purchaser for referring the seller to other possible customers.
Mail premiums, unlike direct premiums, require the customer to perform some act in order to
obtain a premium through return mail. An example might be a limited edition toy car offered
by a marketer in exchange for one or more proofs-of-purchase and a payment covering the

PROMOTION Page 59
cost of the item plus handling. The premium is still valuable to the consumer because they
cannot readily buy the item for the same amount.
CONTINUITY PROGRAMS
 Continuity programs retain brand users over a long time period by offering ongoing
motivation or incentives.
 Continuity programs demand that consumers keep buying the product in order to get
the premium in the future.
 Trading stamps, popularized in the 1950s and 1960s, are prime examples. Consumers
usually received one stamp for every dime spent at a participating store. The stamp
company provided redemption centers where the stamps were traded for merchandise.
 A catalog listing the quantity of stamps required for each item was available at the
participating stores.
 Today, airlines' frequent-flyer clubs, hotels' frequent-traveler plans, retailers' frequent-

shopper programs, and bonus-paying credit cards are common continuity programs.
 When competing brands have reached parity in terms of price and service, continuity
programs sometimes prove a deciding factor among those competitors.
 By rewarding long-standing customers for their loyalty, continuity programs also

reduce the threat of new competitors entering a market.
SAMPLING
 A sign of a successful marketer is getting the product into the hands of the consumer.
 Sometimes, particularly when a product is new or is not a market leader, an effective
strategy is giving a sample product to the consumer, either free or for a small fee. But

PROMOTION Page 60
in order for sampling to change people's future purchase decisions, the product must
have benefits or features that will be obvious during the trial.
 There are several means of disseminating samples to consumers. The most popular
has been through the mail, but increases in postage costs and packaging requirements
have made this method less attractive.
 An alternative is door-to-door distribution, particularly when the items are bulky and
when reputable distribution organizations exist. This method permits selective
sampling of neighborhoods, dwellings, or even people.
 Another method is distributing samples in conjunction with advertising. An ad may

include a coupon that the consumer can mail in for the product, or it may include an
address or phone number for ordering.
 Direct sampling can be achieved through prime media using scratch-and-sniff cards
and slim foil pouches, or through retailers using special displays or a person hired to
hand out samples to passing customers.
 Though this last technique may build goodwill for the retailer, some retailers resent
the inconvenience and require high payments for their cooperation.
 A final form of sample distribution deals with specialty types of sampling. For
instance, some companies specialize in packing samples together for delivery to
homogeneous consumer groups, such as newlyweds, new parents, students, or
tourists. Such packages may be delivered at hospitals, hotels, or dormitories and
include a number of different types of products.
b) TRADE-ORIENTED SALES PROMOTIONS
 A trade sales promotion is targeted at resellers—wholesalers and retailers—who

distribute manufacturers' products to the ultimate consumers.
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 The objectives of sales promotions aimed at the trade are different from those directed
at consumers.
 In general, trade sales promotions hope to accomplish four goals:
o Develop in-store merchandising support, as strong support at the retail store

level is the key to closing the loop between the customer and the sale.
o Control inventory by increasing or depleting inventory levels, thus helping to

eliminate seasonal peaks and valleys.
o Expand or improve distribution by opening up new sales areas (trade

promotions are also sometimes used to distribute a new size of the product).
o Generate excitement about the product among those responsible for selling it.
Some of the most common forms of trade promotions—profiled below—
include point-of-purchase displays, trade shows, sales meetings, sales
contests, push money, deal loaders, and promotional allowances.
POINT-OF-PURCHASE (POP) DISPLAYS
 Manufacturers provide point-of-purchase (POP) display units free to retailers in order

to promote a particular brand or group of products.
 The forms of POP displays include special racks, display cartons, banners, signs,
price cards, and mechanical product dispensers.
 Probably the most effective way to ensure that a reseller will use a POP display is to
design it so that it will generate sales for the retailer. High product visibility is the
basic goal of POP displays.
 In industries such as the grocery field where a shopper spends about three-tenths of a
second viewing a product, anything increasing product visibility is valuable.

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 POP displays also provide or remind consumers about important decision

information, such as the product's name, appearance, and sizes.
 The theme of the POP display should coordinate with the theme used in ads and by
salespeople.
TRADE SHOWS
 Thousands of manufacturers display their wares and take orders at trade shows. In
fact, companies spend over $9 billion yearly on these shows.
 Trade shows provide a major opportunity to write orders for products. They also
provide a chance to demonstrate products, disseminate information, answer questions,
and be compared directly to competitors.
 Related to trade shows, but on a smaller scale, are sales meetings sponsored by
manufacturers or wholesalers. Whereas trade shows are open to all potential
customers, sales meetings are targeted toward the company's sales force and/or
independent sales agents. These meetings are usually conducted regionally and
directed by sales managers. The meetings may be used to motivate sales agents, to
explain the product or the promotional campaign, or simply to answer questions.
 For resellers and salespeople, sales contests can also be an effective motivation.
Typically, a prize is awarded to the organization or person who exceeds a quota by the
largest percentage.
PUSH MONEY
 Similarly, push money (PM)—also known as spiffs—is an extra payment given to

sales-people for meeting a specified sales goal.

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 For example, a manufacturer of refrigerators might pay a $30 bonus for each unit of
model A, and a $20 bonus for each unit of model B, sold between March 1 and
September 1.
 At the end of that period, the salesperson would send evidence of these sales to the
manufacturer and receive a check in return.
 Although some people see push money as akin to bribery, many manufacturers offer
it.
DEAL LOADERS
 A deal loader is a premium given by a manufacturer to a retailer for ordering a certain

quantity of product. Two types of deal loaders are most typical.
 The first is a buying loader, which is a gift given for making a specified order size.
 The second is a display loader, which means the display is given to the retailer after
the campaign.
 For instance, General Electric may have a display containing appliances as part of a
special program. When the program is over, the retailer receives all the appliances on
the display if a specified order size was achieved.
TRADE DEALS
 Trade deals are special price concessions superseding, for a limited time, the normal
purchasing discounts given to the trade.
 Trade deals include a group of tactics having a common theme—to encourage sellers
to specially promote a product.
 The marketer might receive special displays, larger-than-usual orders, superior in-
store locations, or greater advertising effort. In exchange, the retailer might receive
PROMOTION Page 64
special allowances, discounts, goods, or money. In many industries, trade deals are
the primary expectation for retail support, and the marketing funds spent in this area
are considerable.
 There are two main types of trade deals: buying allowances and advertising/display
allowances.
o BUYING ALLOWANCES A buying allowance is a bonus paid by a

manufacturer to a reseller when a certain amount of product is purchased
during a specific time period. For example, a reseller who purchases at least
15 cases of product might receive a buying allowance of $6.00 off per case,
while a purchase of at least 20 cases would result in $7.00 off per case, and so
forth. The payment may take the form of a check or a reduction in the face
value of an invoice. In order to take advantage of a buying allowance, some
retailers engage in "forward buying." In essence, they order more merchandise
than is needed during the deal period, then store the extra merchandise to sell
later at regular prices. This assumes that the savings gained through the
buying allowance is greater than the cost of warehousing and transporting the
extra merchandise. Some marketers try to discourage forward buying, since it
reduces profit margins and tends to create cyclical peaks and troughs in
demand for the product. The slotting allowance is a controversial form of
buying allowance. Slotting allowances are fees retailers charge manufacturers
for each space or slot on the shelf or in the warehouse that new products will
occupy. The controversy stems from the fact that in many instances this
allowance amounts to little more than paying a bribe to the retailer to
convince them to carry your company's products. But many marketers are
willing to pay extra to bring their products to the attention of consumers who
are pressed for time in the store. Slotting allowances sometimes buy marketers
prime spaces on retail shelves, at eye level or near the end of aisles. The final
type of buying allowance is a free goods allowance. In this case, the
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manufacturer offers a certain amount of product to wholesalers or retailers at

no cost if they purchase a stated amount of the same or a different product.
The allowance takes the form of free merchandise rather than money.
o ADVERTISING ALLOWANCES An advertising allowance is a dividend

paid by a marketer to a reseller for advertising their product. The money can
only be used to purchase advertising—for example, to print flyers or run ads
in a local newspaper. But some resellers take advantage of the system, so
many manufacturers require verification. A display allowance is the final form
of trade promotional allowance. Some manufacturers pay retailers extra to
highlight their display from the many available every week. The payment can
take the form of cash or goods. Retailers must furnish written certification of
compliance with the terms of the contract before they are paid. Retailers are
most likely to select displays that yield high volume and are easy to assemble.
UNIT V
5.1 DEVELOPING A SALES PROMOTION PLAN
SETTING OBJECTIVES
A. Goals are generally demand-oriented.

B. They may be related to channel members and to consumers.

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1. Channel-member sales promotion objectives include gaining distribution,

receiving adequate shelf space, increasing dealer enthusiasm, raising sales, and
getting cooperation in sales promotion expenditures.
2. Consumer sales promotion objectives include boosting brand awareness,

increasing product trials, hiking average purchases, encouraging repurchases,
obtaining impulse sales, emphasizing novelty, and supplementing other
promotional tools.
5.2 CHARACTERISTICS OF SUCCESSFUL SALES PROMOTION
Some aspects that are important to consider in marking sales promotions successful are as
follows:
1. Maximum effect at minimum cost: when the nature of promotion objective is such
that is can best be achieved by sales promotion, rather than advertising alone, and the
objective is achieved at minimum cost.
2. Motivates consumers to buy now: successful sales promotions induce a sense of
urgency to buy now and avoid postponing purchases.
3. Offers what the consumers want: sales promotion must not attempt to push any offer
that is not regarded as desirable by target consumers.
4. The promotion should be clear and uncomplicated: simple and clear language must
be used in communicating with the consumers.
5. Promotion should be highly visible: the offer must draw attention of target
consumers. Effective promotions draw attention from high visibility and from
creative qualities.
6. Promotion should benefit all concerned: usually promotions involve cooperation of
sales force and channel members. They need to be motivated to make the efforts
successful.

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7. Promotion must be believable and honest: it makes reasonable and believable

claims, tells the truth, there are no exaggerations, and it respects public’s intelligence.
8. Promotion must be legal: the marketers must check the legality of promotion before
announcing it.
9. Promotion must be implemented efficiently: proper arrangements must be made
with handling houses and premium suppliers to avoid any complications.
5.3 SALES PROMOTION EVALUATION
Measurements of results, in any are of business activity, is related to the objects that are
set. The sales promotion can be evaluated at three different stages:
1. Pre-testing: how sales promotion is to be communicated and what would be

communicated to the target groups is important and can be pre-tested. Pre-testing
consists of experimenting certain markets or individual stores in a market. The
simplest way is to visit several important retailers and wholesalers and discuss the
programme and seek their opinion and suggestions.
2. Concurrent Testing: this testing is done when the sales promotion is in progress.
Concurrent testing is conducted in terms of sales data, which can be obtained on
weekly or monthly basis.
3. Post-testing: post-testing done after the promotion period is over. To asses the
change in consumer awareness and attitude, telephone calls, questionnaire mailed
to consumers, and personal interviews can be used.
To measure the sales effect, sales figures before the promotion period can be compared with
figures at the end of promotion, and one month after the promotion ends.
5.4 DESIGN AN INTEGRATED SALES PROMOTION PROGRAM

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Design an integrated Sales Promotion Program for the following channel of

distribution: Manufacturer-to-Independent Sales Rep-to-Retailer-to-Consumer
A new product in a mature category, such as LIME COKE
Background Information
The cola market is a mature market with lots of variety. Consumers are trying new and
innovative products. There’s strong growth in bottled water, juices, sports drinks and energy
drinks. Consumers are conscious cola drinkers; they are calorie conscious especially in their
20s and 30s. The Lime Coke is a new product in the market. Sprite, Coca-Cola’s ‘solid’
performer continues to be a great success as a strong competitor to this new product.
The nature of product is revolutionary; it should create emotional connection with the
consumers. The Lemon Cola drinkers, driven by youthful liberation, relate to life’s more
light-hearted and fun experiences. It is a drink of choice for people who are younger and
more exciting.
Objectives
New distribution of Lime Coke products through the channel distribution by motivating top
20% of the Manufacturer’s independent salespeople to move more Lime Coke products to
Retailers in order to generate an ultimate 40 to 50% sales during the Christmas season by
attracting consumers.
Channel Distribution Strategy
The distribution system has only two divisions (Independent Sales Rep and Retailer) before it
reach the consumer.
The product is new in a matured market, needs additional explanation and education for the

PROMOTION Page 69
sales reps to have that carried over to the retailer to gain maximum consumer exposure in this
dominant market position.
There is a competitor product such as Sprite, certainly, there is a competition for distributor
resources in order to get attention. The channel function will only be selling, inventory
support, physical distribution and post sales services.
Promotion Mix
Trade Promotions for Retailer’s – objective is new product distribution
SELL-IN Devices
Encourage wholesalers or retailers to carry Lime Coke product. Free good deals- Give free
packs of Lime Coke instead of money at no cost. Off-allowance or Buying allowance – is a
good option for this new product, retailers have an opportunity to stockpile the products at
the reduced price to sell at the regular price latter. The allowance is deducted directly from
the invoice of the product
SELL-OUT Devices
Induce retailers to promote Lime Coke through advertising and displays. Cooperative
advertising- since this is a new product and competitive market, it makes sense to have long-
term contract with the retailer. The retailer will run advertisement and manufacturer pays an
allowances based on the quantity and retailer orders . Dealer listing – Great opportunity to
have manufacturer to place advertisement in different medias ( TV, radio, magazines or news
papers) for the Lime Cola product and announcing the retailers (name and addresses) who
stock Lime Coke.
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Incentive to ‘PUSH’ sales
Stimulate retailers and their channel members to ‘push’ Lime Coke product rather that of
competitor product e.g. Sprite. Spiffs will be a great compensation for the retailer store clerk
rewarded for selling Lime Coke. Dealer Loader – the purpose is to gain new product
distribution, gifts in return for an order or premium for special price display.
Motivation the Independent Sales Rep (Sales Promotion) to supplement their regular
compensation- Sales Incentive plans (reward for achieving sales Quota) and sales aids in
combination to assist sales persons in selling situations.
Various Aspects under Promotional Strategy
Deciding Promotional mix:
Personal selling, advertisement and sales promotion are methods of the promotional
methods. During most of the situation two or more promotional methods are to be used
for each campaign. Advertising needs the support of personal selling or display to
increase the sales.
Nature of the product:
This will decide the promotional mix. For consumer goods advertisement and dealer
display will have more effect. Industrial goods with high technology will need much of
personal selling and cosmetics.
Nature of the customer:

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If the communication are mostly to middlemen, then personal selling will be more
effective and very little spending on advertisement will do. If information are to be
passed to consumers and when the number of consumers is large, it is better to advertise.
Nature of Market:
If market for a product is only local then personal selling alone will be sufficient. If the
market for a product is available at national level, then advertisement is more suitable.
Availability of funds:
The amount of funds available for promotion will decide the promotional mix. The
companies having huge funds for promotion will favor advertisement and try to cover
wider market. If the funds are available are less than maximum portion and such funds
will be allocated for personal selling in limited areas.
5.5 Online sales promotion:
Encourage impulse buys:
Associate linked products. If a customer buys a video game, ask if he’d alswo like to buy
some batteries, games or other peripherals. Those are items the customer may forget to
purchase of might to expire not realize are available.
Offer online - only specials:
Many web users prefer to gather information about products online. They visit a few sites
to get an idea of what’s available and at what cost. But they don’t complete the sales
online instead, many log off and head directly for nearest brick mortar store to make their
actual purchase.
Ship larger orders for free:

PROMOTION Page 72
it doesn’t take much more time and effort to pack and ship 5 items than to pack and ship
1 item. Its more efficient for you to pack more items in each order. So give customers an
incentive to purchase more at one time.
Be honest about pricing:
People want to know the total price to deal with. Raise your profit margin and encourage
larger orders form. Most users will leave a site without completing their purchase if the
site doesn’t show total cost including shipping.
Provide great customer service:
You don’t want onetime customers. It takes far more effort to attract new customers than
it does to keep existing ones. That simple concept seems to be forgotten in these days of
anonymous email and the torture of automated phone system.
Create compelling website copy:
Website design is an important component of website credibility, but design only takes
you so far. Visitors quickly note the design, but then look for content. Format your
content to reflect how people read online and consult the copy writer’s handbook for
instruction on how to write persuasive.
Have complete product information and photos:
Information pages
Create thumbnail images
Use gift to optimize images
5.6 Internet Advertising

PROMOTION Page 73
Internet advertising is the convergence of traditional advertising and direct responses

marketing.The use of the Internet for delivering marketing messages to attract customers.
Features:
Very immature industry

Rapidly growing but poorly understood
Traditional advertising
 One way communication
 Targeting can be difficult
 Public dissemination of information in order to effect
 Commercial transactions
Internet advertising
 Potential for two-way communication
 Targeting is much easier
Why Advertise on the Internet
Television viewers are migrating to the Internet

The Internet is the fastest growing medium in history
Attractive demographics
Adverts can be updated rapidly and cheaply
Adverts can be global
Internet advertising is cheap in comparison with most
Conventional media
Adverts can be targeted
 If a person sees and advert that they don’t want to see, then that advert
has failed.
 Targeting avoids this, but is traditionally expensive
DoubleClick (www.doubleclick.net)

PROMOTION Page 74
Dynamic Advertising Reporting and Targeting (DART)

DART builds a profile of visitors to any of DoubleClick’s
clients sites
 data mine server logs

 attach a unique ID to people who visit any of their sites
 match user sites against a database of known domains
 extract platform information
 build a personal profile of interests
Internet Advertising Advantages
Targetability
Global reach
Tracking ability
Less expensive to produce
Flexibility and rich media combination
Immediacy
Interactivity
Disadvantages
Customer-dominated environment
A cognitive, not emotional medium
Psychological fear of IT
Limited space and information in some formats
Connection problems
Non internet users
Clutters
Types of Internet Advertising

PROMOTION Page 75
WWW Banners
Graphic display on a web page linked to the advertisers page
Types of banners
 random banner
 keyword banner
Economics
 Banner purchase (charge may be based on display or click-
through)
 Banner swapping
 Banner exchange
Design issues
 Advertisers requirements are rarely compatible with the
design requirements of the host site
Spot Leasing
Some sites provide a space on their site that can be leased for a given period of time
Unlike banners spot adverts = are always displayed for the duration of the lease
Not targeted, so only effective on extremely high traffic sites (e.g. major search engines)
Extremely expensive for high traffic sites
Pop-ups, rich media ads, interstitial

 Pop-ups: Appear on screen without user calling for them
 Pop-unders: Open underneath user’s active browser window and do not appear

PROMOTION Page 76
until user closes active window

 Rich media ads: Employ Flash, DHTML, Java, streaming audio and/or video
 Interstitials: Provide way of placing a full-page message between current and
destination pages of user
 Superstitials: Rich media ad that is pre-loaded into browser’s cache and does not
play until fully loaded and user clicks to another page.
E-Mail
 E-mail marketing messages sent directly to interested consumers who “opt-in” or
have not “opted-out”
 Mailing Lists -
o Very low cost
o Easily amenable to targeting
 Very effective when solicited and carefully targeted
 Utterly ineffective when not carefully targeted
 Unsolicited e-mail (spam) is a serious form of network abuse
URL
A memorable URL can be a powerful advertising tool in its own right
www.lastminute.com
www.student.com
www.yahoo.com
www.hotmail.com
Much of the associated advertising is free (e.g. search engine listings)
Well chosen URLs are self targeting
URLs can be valuable commodities in their own right.
Chat Room Sponsorship

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IRC chat rooms are commonly used by groups sharing a specialist interest
Hobbyists
Political activists
Self-help groups
Chat servers are often sponsored by advertisers
usually the sponsors provide the server as a “service” to the target community
For example Mattel sponsored Barbie chat rooms(!)
Search Engine Marketing

 Search engine marketing one of fastest growing and most effective forms of online
marketing communications
 Paid inclusion – firms pay for inclusion in search engine index
 Paid placement – firms pay for a guarantee that it will appear prominently in results
of relevant searches
 Overture.com and Google leaders in this technology
 Appropriate disclosure of paid inclusion and placement practices an issue
JARGON:
 Impressions (ad view) : Number of users exposed to an advert

 CPM : Cost per thousand impressions
 Effective Frequency : The number of times a user is exposed to an advert
 Hit : A recorded HTTP request for delivery of a file
This is not the same thing as impressions
 Visit : A series of requests made by a user to a site in one session

 Click Through : When a user follows a link to the advertisers page

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 Click Ratio : The proportion of impressions that result in click through

PROMOTION Page 79

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Jeppiaar Engineering College Department of Management Studies

BA9254 ADVERTISING AND SALES PROMOTION LT P C 3 0 0 3

UNIT – I INTRODUCTION TO ADVERTISEMENT 9

UNIT – II ADVERTISEMENT MEDIA

UNIT – III DESIGN AND EXECUTION OF ADVERTISEMENTS 9

UNIT – IV INTRODUCTION TO SALES PROMOTION

UNIT – V SALES PROMOTION CAMPAIGN

BA9254 ADVERTISING AND SALES PROMOTION

III SEMESTER MARKETING ELECTIVE : BA9254 ADVERTISING AND SALES

“Advertising is the non - personal communication of information usually persuasive in

Products, Services or Ideas

III SEMESTER MARKETING ELECTIVE : BA9254 ADVERTISING AND SALES

1.2 HISTORY OF ADVERTISING

• Advertising is every where.

1.3 FUNCTIONS OF ADVERTISING

1.4 ROLE OF ADVERTISING

III SEMESTER MARKETING ELECTIVE : BA9254 ADVERTISING AND SALES

• Acquire enhanced volumes of sales of products & services.

1.5 MODELS OF ADVERTISEMENT

a) ADVERTISING RESPONSE HIERARCHY MODELS

ADVERTISING REPONSE HIERARCHY MODELS

III SEMESTER MARKETING ELECTIVE : BA9254 ADVERTISING AND SALES

c) Hierarchy of effects model.

III SEMESTER MARKETING ELECTIVE : BA9254 ADVERTISING AND SALES

III SEMESTER MARKETING ELECTIVE : BA9254 ADVERTISING AND SALES

e) Information processing model.

III SEMESTER MARKETING ELECTIVE : BA9254 ADVERTISING AND SALES

1.6 SOCIAL, ETHICAL, AND ECONOMIC ASPECTS OF ADVERTISING

SOCIAL IMPACT OF ADVERTISING

III SEMESTER MARKETING ELECTIVE : BA9254 ADVERTISING AND SALES

ECONOMIC IMPACT OF ADVERTISING

Effect on the Value of Products

IMPACT OF ADVERTISEMENTS ON CHILDREN

Children are impressionable so: advertiser should ----

1.7 IMPACT OF ADVERTISEMENTS ON WOMEN

1.8 ETHICS IN ADVERTISING

� PUFFERY – Exaggerated, fantastical or impossible claims. e.g. a cosmetic ad. says

III SEMESTER MARKETING ELECTIVE : BA9254 ADVERTISING AND SALES

CODE OF ETHICS IN ADVERTISING

1.9 ADVERTISING AGENCIES

“An advertising agent or an advertising agency is an independent Company rendering

Complete A Marketing Analysis

III SEMESTER MARKETING ELECTIVE : BA9254 ADVERTISING AND SALES

Develop And Implement A Media Plan

Functioning of Various Departments of an Advertising Agency

III SEMESTER MARKETING ELECTIVE : BA9254 ADVERTISING AND SALES

1.10 PURPOSE OF ADVERTISING AGENCIES

• Advice & counsel on marketing strategy.

III SEMESTER MARKETING ELECTIVE : BA9254 ADVERTISING AND SALES

Organizational Chart Of Ad Agencies

2. Advertiser is freed and given the Benefit of economy. Advertising agency is

4. Conducting Market Research. Research is accepted as one of its functions. Research

Evaluation of the Advertising Agency

There are some options of Evaluation of the Advertising Agency

III SEMESTER MARKETING ELECTIVE : BA9254 ADVERTISING AND SALES

hence forth we got full service agency system.

media commission system

fixed fee (retainer)

Most scientific way to pay an agency.

III SEMESTER MARKETING ELECTIVE : BA9254 ADVERTISING AND SALES

Client Agency Relationship- Principles

Agency – Media Relationship Principles

1.11 ADVERTISING CAMPAIGN

III SEMESTER MARKETING ELECTIVE : BA9254 ADVERTISING AND SALES