Advertising and Promotion

PROMOTION MANAGEMENT
CHAPTER 1
PROMOTION
It is the communication package in marketing which aims to exchange

information between buyers and sellers. Beyond informing, it also
accomplishes the task of reminding and persuading the consumers so that
they respond to the product or service being offered.
COMPONENTS OF PROMOTION
There are four broad promotional tools available to a marketer
Advertising which is any paid form of non-personal presentation of ideas,

goods, or services by an identified sponsor in a Media mix.
Personal selling is an oral presentation made to prospective customers

so as to generate sales.
Sales promotion are those marketing activities excluding advertising,

personal selling and publicity which stimulate consumer purchasing
,dealer and sales persons effectiveness. It is a short term activity.
Publicity and public relations stimulate demand in a non-personal

way. Public relations maintain effective relations of the organisation with
different publics like employees, customers, shareholders, suppliers,
dealers, government, media and so on.
The combination of these four methods of promotion is called promotional

mix. It is called direct marketing which uses the above promotional
components in a special manner.
COMMUNICATION PLAN
Mostly organizations treat advertising, sales promotion, public relations,

publicity and direct marketing as separate activities. However, we must
integrate them together, and the whole communication package that
emerges must be integrated to other elements of the marketing mix and
personal selling. Strategic business plan is the starting point which
SRAVAN KUMAR REDDY, DEPT OF MARKETING MANAGEMENT, FBE, WOLLEGA

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generates a strategic marketing plan .Communication plan or promotional
plan is subservient to the marketing plan.
STRATEGIC BUSINESS PLAN
MARKETING PLAN
COMMUNICATION PROMOTION PLAN
ADVERTISIN SALES PROMOTION PR DIRECT MARKETING

PERSONAL SELLING
PROGRAMS AND BUDGET
REVIEW AND EVALUATE
Fig: Communication planning
MARKETING COMMUNICATIONS
Broadly speaking, marketing communications is a continuous interaction

between the buyers and sellers in a market place. Thus any gesture or act
that helps to attract buyers and satisfy their needs is marketing
communication .However marketing communication is the process of
presenting an integrated set of stimuli to a target with an intent of
evoking a desired set of responses within that target market and setting
up channels to receive, interpret and act upon messages and identifying
new communication opportunities.
Consider the following communication process
Source Encoding Message Decoding Receiver Response
Player Remarks
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Sender He is originator of communication, his communication
objectives must be clear
Encoding It should be true to the contents of the communication

emerging from sender.
The process of arranging the message, in words and pictures

is called encoding
Message Once there is a choice, a channel or a channel mix that is

most effective must be
Chosen.
Receiver The communication must reach him .on the delivery of the
message, the receiver
Attempts to interpret the message it is called decoding.
Feedback It completes the cycle of communication.
INTERPERSONAL Vs MASS COMMUNICATION
Marketing deals with interpersonal and mass communication .personal

selling makes use of interpersonal communication whereas advertising,
sales promotion ,and public relations are mass communication
techniques.
Comparison between interpersonal and mass communication
Factor interpersonal
Mass
Communication
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Speed of reaching large audience slow
fast
Coat of reaching large audience high

low
Attention gathering High

low
Content clarity High

moderate to low
Accuracy of message low

high
Message flow traffic two-way

one-way
Feedback high
low
SOURCE: Promotional strategy by Engel, Warshaw and kinnear

(Irwin,1987)
PROMOTIONAL TOOLS AND CONSUMER RESPONSE:
AIDA is an acronym given to the stages a consumer passes before he buys

a product.
The stages are:
1. Attention: To get the attention of the consumer

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2. Interest: to arouse interest in the product
3. Desire: to create desire for the product
4. Action: to motivate a consumer to buy the product.
This model is further elaborated to cover a number of more steps:

awareness, knowledge, liking, preferences, conviction and purchase. It is
called hierarchy of effects.
STAGE
RESPONSE
AIDA
HIERARCHY&EFFECTS
Cognitive attention
Awareness
Affective interest
knowledge
Liking
Desire
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Behavioural action
conviction
Purchase
Outcome satisfaction level

Satisfaction level
Relationship of response models
While relating them we have put the stages into three broad
psychological stages cognitive, affective and behavioural. Cognitive
refers to awareness and knowledge it also refers to attention .Affective
refers to liking and preference corresponding to interest and desire of
AIDA model.behavioral refers to conviction and purchase corresponding to
action of the AIDA model. The additional stage of outcome shows the
response to the model. These models help us understand the tasks that
promotion must perform.
We find the effects of different tools of promotion on hierarchy are

different. The following diagram shows the effects of various promotional
tools on the stages of AIDA.
F Advertising
personal selling
N PR and Publicity
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E
AWARENESS INTEREST DESIRE

ACTION
AIDA
Effect of promotional tools on consumer response
Advertising has the capacity to generate highest awareness. It is also
higher in arousing interest however; it is not so effective in leading the
consumer action .personal selling works exactly the opposite way. It is
highest in making people buy and creating a desire for product .it is
however, low in generating awareness. Sales promotion is highest in
including action. Public relations and publicity are confined to creating
awareness and a low level of interest.
PROMOTION AND PRODUCT-LIFE-CYCLE

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A product passes through several stages .It is developed first in an R&D
lab .It is introduced in the market .The sales grow after the distribution
and promotional efforts are consolidated. A stage comes when the sales
attain a plateau. The product is said to be in maturity stage .the product
then shows a decline in sales, as it becomes outdated. Product life cycle
thus traces the growth in sales over a period of time .the promotional
objectives at each stage of product life cycle are different .consequently
the promotional activities are also different at each stage of life cycle the
following diagram illustrates this

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Development introduction growth
maturity decline
SALES
SALES
TIME
Promotion Generate Improve Improve Maintain Phase-out

al awareness awareness awareness brand the
objectives preference product
profitabilit
y
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Motivate Promote Further Promote
innovators trails brand new
adoption adoption preference application
s
Penetrate Consolidat Consolidat
the e e
market distributio distributio
n n
Promotion Public Primary Brand Brand Ads
al activity relations advertisin advertisin advertisinphased
g g g out
Introducto Sales Sales Less SP SP phased
ry ads promotion promotion out
for
consumers
. dealers
Personal Personal More sp Sp for
selling of selling of for/of dealers
dealers dealers dealers phased
out
DETERMINING THE PROMOTIONAL MIX
How much emphasis should be placed on each tool of promotion? The

exact combination of each of these elements promotion is called the
promotion mix or blend. There is no one right mix of any company .the
factors that guide a marketer while deciding the mix are:
• The promotional budget available

• The nature of the product
• The nature of the target audience
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• The product life cycle stage
• The company policy
DIFFERENCES BETWEEN ADVERTISING AND PUBLICITY
ADVERTISING PUBLICITY
Paid form Non-paid form
Maximum control over the message Less control over the message
Less credible More credible
Subjective Objective
Product-brand related message Message in public interest
CHAPTER 2
ADVERTISING AND MARKETING
We have studied advertising as a process of communication. Marketing is

‘the conception, pricing, promotion and distribution’ of products which
satisfy the customers. Advertising as a tool of marketing is employs to
highlight the benefits of these products. However, advertising never
determines how a product will be designed, how it will be distributed and
at what price. The decisions about product, distribution, and pricing must
be made before advertising is allowed to play its role.
MARKETING MIX
PRODUCT PRICE
Brand pricing strategy
Packaging price and quality
Innovations price alternations
Life cycle discounts
PROMOTION PLACE
Advertising channels of distribution
Personal selling physical distribution
Public relations wholesalers, retailers

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PRODUCT
A product can be a physical product or service. It includes all the

accessories that go with a product .It also include at time additional
services, after sales maintenance and servicing.
PRICE
Price is the value offered in exchange of products in terms of money

.prices covers the cost of manufacturing a product; cost of distribution and
cost of promotion. It also includes mark-up over costs called profit. Pricing
strategies can be skimming or penetrative. In skimming strategy, we
charge a high price initially to cover the product development costs. Once
the competition enters the market, the price is reduced. In penetration
strategy we charge a lower price initially to penetrate the market deeply.
DISTRIBUTION (PLACE)
The movement of products from manufacturers to the customer is called

distribution .distribution is made possible by using a marketing channel
say , a product produced by a manufacturer is sold to the wholesaler who
intern sells it to the retailer who ultimately sells it to the customer.
Physical distribution involves transportation, warehousing and inventory
management.
PROMOTION
Promotion as we are aware is a technique of communication. Advertising

is used along with personal selling, sales promotion, direct marketing, and
public relations.
ADVERTISING WORLD
Advertising world consists of organizations that put the advertising

messages through advertising agencies in different media .The
organisations who advertise are called advertisers. They have their own
advertising departments who interact with the advertising agencies which
conceive and execute a campaign on their behalf. The advertising
agencies creative department prepares the ad in collaboration with the
production department .the production department may be provided
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different services by outsiders-freelance individuals or supplier firms. They
provide services like video production, photography and print production.
The advertising agencies get their compensation from the media
generally 15 percent of the billing. Media has two broad categories-Print
media and electronic media. These are supported by POP: Point of
purchase materials, sale displays, outdoor hoardings etc.
TYPES OF ADVERTISING
ADVERTISING
GEOGRAPHICAL
MEDIA USED
COVERAGE
TARGET
Print
AUDIENCE National
Electronic
Consumer Regional
advertising
Direct mail
Local
Industrial
Outdoors
advertising International
Miscellaneous
Target audience
Advertising is directed to a particular group of customers. Consumer

advertising is thus dedicated to users of consumer products, both
durables and non-durables. Industrial advertising is directed to
institutional and other business organizations, and is for capital goods.
Geographical coverage
Those firms who do business on a global basis prepare international ads

,e.g. coke,pepsi similarly firms having domestic business do national
advertising through mass media like magazines, newspaper and
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tv.regional advertising is restricted to region .generally state level print
media and regional channels of TV are used for this. Retailers do local
advertising.
Media used
Advertising is print advertising when it is put in press and magazines.

Advertising is electronic when it is put on air either through radio or TV
.Hoardings and posters are outdoor advertising and ads on buses and
trains are transit ads .when advertisers contact buyers directly it is direct
marketing. Many new media options like internet and interactive TV are
emerging these days.
FUNCTIONS OF ADVERTISING
1. To differentiate the product from their competitors
2. To communicate product information
3. To urge product used
4. To expand the product distribution
5. Too increase brand preference and loyalty
6. To reduce overall sales cost
7. Creates new demands
To differentiate the product from their competitors
An important function of advertising is the identification function, that is,

to identify a product and differentiate it from others; this creates an
awareness of the product and provides a basis for consumers to choose
the advertised product over other products this creates an awareness of
the product and provides a basis for consumers to choose the advertised
product over other products.
The identification function of advertising includes the ability of advertising

to differentiate a product so that it has its own unique identity or
personality.
There are four additional ways to differentiate your offering from the
competition and increase your differentiation: leveraging the brand,
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innovating your service offering, as well as designing product and
packaging in a way that creates an aesthetic beyond the functional. None
of these methods are expensive. All are ways that can increase your
perceived value to the customer and increase your market share.
Example: GARNIER FRUTICS (shampoo) the shampoo bottle have the

different colour from all other shampoo available in the shelf. The bottle of
the shampoo is unique from all others.
Example: apple laptops make them different from others as the WHITE
colour and logo of APPLE on back of the screen.
To communicate product information
Another function of advertising is to communicate information about the

product, its attributes, and its location of sale; this is the information
function. Product information communicated to the customers in manner
that meets their information needs. Most consumers tend to discount the
information in advertising because they understand that the purpose of
the advertising is to persuade. Making an advertising message believable
is not easy; though often it is sufficient to make the consumer curious
enough to try the product. Such curiosity is often referred to as interested
disbelief. Advertisers use a variety of devices to increase the believability
of their advertising: celebrities or experts who are the spokespersons for
the product, user testimonials, product demonstrations, research results,
and endorsements.
Example:
Ponds age miracle, in that ad the celebrity HADIQA KAYANI is informing

the consumers about the benefits of it. That how the old women can look
younger by using it continuously. It will make you fair cream plus it
reduces freckles plus it can be used as a sun block as well it will make you
look young.
To urge product used
The third function of advertising is to induce consumers to try new

products and to suggest reuse of the product as well as new uses; this is
the persuasion function.
The basic function of advertising is to provide constant reminders and

reinforcements to generate the desired behaviour the advertiser wants
from them. This is a particularly effective function in the long run as
reminders and reinforcements register in the consumers' minds,
becoming the base on which they shape their future decisions. Sampling
in the way to urge the product using.
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Example:
Fair and lovely as we know that it will make a girl look fair and prettier in 4
weeks.
Example: Neutrogena acne treatment cream will remove your pimple is 24

hours. NEUTROGENA say no to pimples!!
To expand the product distribution
When the consumer comes to know about the particular product from the
advertisement he/she wants to try that new product. They go to shops to
buy the product; if the new product is not available in a shop then the
shopkeeper consults the distributor to make that product available in his
shop. It is basically to provide the product all over market. It is necessary
to make sure that product should be accessible to everyone. Availability of
product effect the distribution.
Example:
Wateen telecom and Motorola Partner to Expand Distribution of

Videoconferencing Product Line in Pakistan. So as many people are
getting to know about this facility they are running towards the franchises
to avail it. So for that Wateen should expand their distribution all around
the cities. Accessibility is major factor for successful product
To increase brand preference and loyalty
Marketing is a moving thing. As your needs are changed your preferences

are changed. When the product delivers the promised quality, service and
value, it creates satisfied customers who become instrumental in
spreading a favourable word-of-mouth. Satisfied customers also develop
brand preference; each product features and uses are written on the
product.
Example: 99% girls who are not married will not look at the ad of pampers
or any milk powder for children but when they will get married their
interest will automatically move towards such ad'
Brand loyalty
Brand loyalty is a long-term customer preference for a particular product

or service. Brand loyalty can be produced by factors such as customer
satisfaction with the performance or price of a specific product or service,
or through identifying with a brand image. It can be encouraged by
advertising.
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People often make purchasing decisions based on how a brand makes
them feel emotionally rather than based on quality or other objective
evaluations. If "Just Do it" strikes a chord with an athlete, he'll buy Nike;
the decision may have little to do with quality.
Example: For instance, when one buys a tube of Colgate toothpaste and
finds it ok, one will not have to spend any valuable time on looking for
other toothpaste brands.
To reduce overall sales cost
When a product is selling you have to teach the people about the product.
Like if we would advertise through newspapers, TV, broachers and

internet, it would cater huge sum of masses and if you do individually it
would be more costly and time consuming.
Example: Coke targets their consumers on a very large scale through

mass media whereas Makka cola advertise on smaller scale or go door to
door to advertise their product.
Creates new demands
Advertising have to create new demands they should educate the people
about more and more new things coming up in the market. Each year new
products, including line extensions and new brands are introduced into
groceries and drugstores.
Example: Wateen telecom is offering wireless internet chips, video

conferencing and WIMAX services as they are introducing new services in
market its creating new demands.
ADVERTISING EXPOSURE MODEL
Awareness
Information
Brand image Attitude towards

brand purchase behaviour
Emotional band
Peer/expert and group norm link
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Reminder trial inducement
This represents another model of the advertising and persuasion process

wherein the various processes that can occur after consumers are
exposed to an advertisement.
1. First, exposure to the advertisement can create awareness about

the brand, leading to a feeling of familiarity with it.
2. Second, information about the brands benefits and the attributes on
which the benefits are based can register with the consumer can
also result from exposure to the ad.
3. Third, advertisements can also generate feelings in an audience that
they begin to associate with the brand or its consumption.
4. Fourth, through the choice of the spokesperson and various
executional devices, the advertisement can lead to the creation of
an image for the brand, often called “brand personality”
5. Fifth, the advertisement can create the impression that the
consumer’s peers or experts- individuals favour the brand and
groups the consumer likes to emulate.
This is often how products and brands are presented as being fashionable.
These five effects can create a favourable liking, or attitude towards the
brand, which in turn should lead to the purchasing action. Sometimes the
advertiser will attempt to spur purchasing action directly by providing a
reminder or by attacking reasons why the consumer may be postponing
that action.
The above model helps us to understand how and why consumers acquire
process and use advertising information. It’s also important at the
planning stage to develop a good understanding of where advertising fits
into the total pool of information and influence sources to which a
consumer is exposed. Understanding information processing invariably
leads to the need for understanding a wide range of other important
psychological constructs, such as perception, learning, attitude formation
and chance, source effects, brand personality and image, cognitive and
affective response and social factors such as group influence.
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BRAND COMMUNICATION
In recent years, there are dramatic changes in brand communication. The

company as a sender tells the consumer good things about the brand .the
consumer as receiver accept this message gratefully. He then expresses
his gratitude by being a loyal brand user for a long time. This model is a
highly simplistic. Even in such one way communication, we have to
consider the element of consumer participation. Consumer does not
accept everything g directed towards them, challenge the proposition;
and sometimes even dispute it. They can interpret, modify or reject brand
messeges.the whole model affected by a variety of factors. The media
stand fragmented .internet has emerges as a big interactive medium.
Attitudes of consumers have changed; A TV commercial of a few seconds
cannot become a primary medium of brand communication. The
consumers also form their opinions in number of ways .a consumer forms
his image of the brand through every conceivable encounter hardly
matters.
INTEGRATED MARKETING COMMUNICATION (IMC)
Integrated marketing communication is not just a jargon used by

academicians and practitioners of communication package consisting of
advertising, personal selling, data-base marketing, public relations and
sales promotions. It involves two major dimensions-consistencies of
positioning, message and tone across these different media and
simultaneous achievement of several specific communication goals and
leading to behavioural action. In other words, marketing communications
must have one voice and must not restrict to just one or two goals like
raising awareness or building image. Integrated communication achieve
major communication goals at one the same time .thus, a sales promotion
campaign that leads to short-term rise in sales but dilutes brand equity in
the long-term is not the practice of integrated communication.
CHAPTER3
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MARKETING AND PROMOTION PLANNING
Marketing plan
The company generates the sales only through marketing and as such it
is the most important plan. This plan contains information about four
important aspects of the organisation.
1 .The situational analysis
Here the organisation current situation is considered, and is related to its

past activities. This is a lengthy portion in a marketing plan. All trends and
factors both internal and external – that effect future aspects are
identified .the history of the organisation, and the journey it has
undertaken to reach its position is considered. products, services, sales,
market shares, competitive position, markets served, distribution system,
past advertising programmes, marketing research findings,strenghts and
weaknesses of the company –all these pertinent facts contribute to the
situational analysis. The external environmental factors also considered.
2. Marketing objectives
Total sales volume;
Sales volume by product, market segment, customer type;
Market share;
Growth rate of sales volume;
Gross profit;
Product line – to add or to delete;
Develop pricing policies;
Training objectives for sales persons;
Social objectives.
3. Marketing strategy
It is the next important element of marketing plan. It spells out a company

plans to realise its marketing objectives, objectives leads to strategies.
Objectives are what we want to achieve. Strategies guide us how to go
about achieving them. In other words strategies again leads to objectives
further down the line. In a marketing strategy we have to select the target
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market, determine the marketing mix for this market, and position the
product in each market.
4. The action plan
Promotion plan, as is obvious, is derived from the marketing plan. It is

prepared on the same lines. It first considers the situational analysis which
is narrower than that in the marketing plan .it then sets out the
advertising objectives and advertising strategy along with details about
message design and media plans, sales promotion and event
management tie-ups.it also considers the advertising budget, and
schedule. Let us see how marketing plan and advertising plan are
integrated.
Marketing plan
Situational analysis marketing objectives marketing strategy

action plan
Advertising plan
Situational analysis marketing and promotional ad objectives

ad strategy
Strategy
Sales objectives
creative strategy
Communication
objectives media strategy
INTEGRATED MARKETING COMMUNICATION MODEL
Hierarchy of effects has certain short-comings.to overcome these,

professors Schultz,tannenbaum and lauterborn has devised another model
called integrated marketing communication model. Consider the following
diagram
Buying intent to buy brand relationship attitudes

toward brand
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Instead of the starting communication, we first consider the buying
behaviour. When difficult to measure it, we move backwards to measure
intention to buy. When this is difficult tom isolate, we move further
backward to assess brand affinity/when this cannot be assessed, we go
farthest to the attitudes a consumer has at the beginning of the process.
We can isolate advertising effects at any level in the IMC model. The same
is considered the foundation on which advertising objectives are
established.
FCB MODEL
Richard Vaughan of the Foote, Cone and Belding advertising agency has
created a grid based on level of involvement and whether the decision
making concerns mainly thinking (rational motives) or feeling (emotional
motives). The FCB grid explains the consumer response process and
presents possible implications for advertising.
Thinking Feeling
Informative strategies for Affective strategies for
products that are technical in products that provide
High nature and purchased based on psychological benefits (affect,
involveme rational thinking and motives cognition, conation. For
nt (cognition, affect, and conation). example, cosmetics,
For examples, cars, house, jewellery, fashion etc.
computers, etc.
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Habit formation strategies for Self-satisfaction strategies for
products that are bought products seen as "life's little
Low repeatedly after researching first pleasures" (conation, affect,
involveme purchase decision - routine cognition). For example,
nt purchases (conation, cognition, lollies, biscuits, magazines,
affect). For example tomato impulse items, etc.
sauce, soap, toothpaste, etc.
the FCB grid provides for decision making for high involvement products
that do not follow the traditional (learn-feel-do) models .The FCB model
has been developed by advertising practitioners as the basis of
developing promotional messages which reflect a focus either primarily on
rational (thinking) or psychological (feeling) motives, and explains why
some high involvement products are advertised using primarily emotional
appeals, while some low involvement products are advertised on more
rational appeal.
DAGMAR APPROACH
Russell Colley (1961) developed a model for setting advertising

objectives and measuring the results. This model was entitled ‘Defining
Advertising Goals for Measured Advertising Results- DAGMAR.’
DAGMAR model suggests that the ultimate objective of advertising must

carry a consumer through four levels of understanding: from
unawareness to Awareness—the consumer must first be aware of a
brand or company Comprehension—he or she must have a
comprehension of what the product is and its benefits; Conviction—he or
she must arrive at the mental disposition or conviction to buys the brand;
Action—finally, he or she actually buy that product. Awareness of the
existence of a product or organization is necessary before the purchase
behaviour can be expected. Once the awareness has been created in the
target audience, it should not be neglected. If there is neglect, the
audience may become distracted by competing messages and the level of
awareness of focus product or organization will decline. Awareness
needs to be created, developed, refined or sustained, according to the
characteristics of the market and the particular situation facing an
organization at any one point of time.
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Awareness grid
Involvement
High Low
Sustain current Refine
levels of awareness
HIGH awareness
Awaren
Build awareness Create
ess
quickly. association of
awareness of
LOW
product with
product class
need
In situations where:
Buyer experiences high involvement:
Is fully aware of a product’s existence, attention and awareness levels

need only be sustained and efforts need to be applied to other
communication tasks.
Sales promotion and personal selling are more effective at informing,

persuading and provoking consumption of a new car once advertising has
created the necessary levels of awareness.
The LG golden eye ads that are repeatedly shown in spite of high
awareness to ensure top of mind awareness and retain the existing
awareness levels.
Where low levels of awareness are found, getting attention needs to be

the prime objective in order that awareness can be developed among the
target audience.
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Sahara Homes ad that features Amitabh Bachhan saying “jaha base
Bharat”. Awareness level is low; however it is a high involvement decision.
Thus adequate attention is required and awareness levels are raised with
use of well-known and trusted celebrities.
Buyer experiences low involvement:
If buyers have sufficient level of awareness, they will be quickly prompted

into purchase with little assistance of the other elements of the mix.
Recognition and brand image may be felt by some to be sufficient triggers
to stimulate a response. The requirement in such a situation would be to
refine and strengthen the level of awareness so that it provokes interest
and stimulates greater involvement during recall or recognition.
Parle G ad that talks about it being the largest seller “ Duniya ka sabse
Zyada bikne waala biscuit”. Parle G as a brand already enjoys high levels
of awareness and requires low involvement decision, thus communication
is mainly intended to refine awareness.
If buyers have low level of awareness, the prime objective has to be to

create awareness of the focus product in association with the product
class. When coils were popular in use and then the different repellents
etered the market, awareness had to be created about their benefits and
use.
Comprehension
Awareness on its own may not be sufficient to stimulate a purchase.
Knowledge about the product or the organization is necessary. This can be
achieved by providing specific information about key brand attributes.
In attempting to persuade people to try a different brand of water, it may

be necessary to compare the product with other mineral water products
and provide an additional usage benefit, such as environmental claims.
The ad of Ganga mineral water, featuring Govinda, which banked on the
purity aspect. They related the purity of the water with that of river
Ganga.
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Conviction
The next step is to establish a sense of conviction. By creating interest
and preference, buyers are moved to a position where they are convinced
that a particular product in the class should be tried at the next
opportunity. To do this, audience’s beliefs about the product have to be
moulded and this is often done through messages that demonstrate the
product’s superiority over a rival or by talking about the rewards as a
result of using the product.
Many ads like Thumbs Up featured the reward of social acceptance as

‘grown up’. It almost hinted that those who preferred other drinks were
kids.
Action
Communication must finally encourage buyers to engage in purchase

activity. Advertising can be directive and guide the buyers into certain
behavioural outcomes, Use of toll free numbers, direct mail activities and
reply cards and coupons.Tupperware, Aqua Guard, are famous in Indian
cities as a result of its personal selling efforts.
For high involvement decisions, the most effective tool in the

communication mix at this stage in the hierarchy is personal selling.
Through the use of interpersonal skills, buyers are more likely to want to
buy a product than if personal prompting is absent.
Characteristics of Objectives
A major contribution of DAGMAR was Colley’s specification of what

constitutes a good objective. Four requirements or characteristics of good
objectives were noted
Concrete and measurable—the communications task or objective

should be a precise statement of what appeal or message the advertiser
wants to communicate to the target audience. Furthermore the
specification should include a description of the measurement procedure
Target audience –a key tenet to DAGMAR is that the target audience be

well defined. For example –if the goal was to increase awareness, it is
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essential to know the target audience precisely. The benchmark measure
cannot be developed without a specification of the target segment
Benchmark and degree of change sought—another important part of

setting objectives is having benchmark measures to determine where the
target audience stands at the beginning of the campaign with respect to
various communication response variables such as awareness,
knowledge, attitudes, image, etc. The objectives should also specify how
much change or movement is being sought such as increase in awareness
levels, creation of favourable attitudes or number of consumers intending
to purchase the brand, etc. a benchmark is also a prerequisite to the
ultimate measurement of results, an essential part of any planning
program and DAGMAR in particular.
Specified time period—a final characteristic of good objectives is the

specification of the time period during which the objective is to be
accomplished, e.g. 6months, 1 year etc. With a time period specified a
survey to generate a set if measures can be planned and anticipated.
Written Goal - finally goals should be committed to paper. When the

goals are clearly written, basic shortcomings and misunderstandings
become exposed and it becomes easy to determine whether the goal
contains the crucial aspects of the DAGMAR approach.
ADVERTIAING STRATEGY
Advertising strategy combines the task of selecting the media and

designing an effective message. These two-tasks are in fact inter-
related .an effective message seeks to answer the following questions:
What are our business goals?
What kind of people do we now sell to? What kind of people should we sell
to?
How do these people think, feel and believe, our product, our organisation
and our competition.
What do we want these people to think, fell and do?
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Which key thought should we put into the minds of those people to make
them feel, think, do and believe the way we want them to?
What tone of voice will get these people to hear and believe us?
A D V E RT I S I N G - S E T T I N G T H E A D V E RT I S I N G B U D G E T
Introduction
It is notoriously difficult to measure the effect of advertising on a

business’ sales. Advertising is just one of the variables that might affect
sales in a particular period. These include
• Consumer and business confidence

• Levels of disposable income
• Availability of product (e.g. does the retailer actually have stock to sell?)
• Availability of competing products
• the weather (often blamed by retailers for poor sales!)
How can a business know whether a specific advertising campaign was

effective?
As a percentage of sales, advertising expenditure varies enormously from

business to business, from market to market. For example, the leading
pharmaceutical companies spend around 20% of sales on advertising,
whilst business such as Ford and Toyota spend less than 1%. An average
for fast-moving consumer goods markets (“FMCG”) is around 8-10% of
sales. In practice, the following approaches are used for setting the
advertising budget:
Approaches to setting the advertising budget
Method (1) Fixed percentage of sales
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In markets with a stable, predictable sales pattern, some companies set
their advertising spend consistently at a fixed percentage of sales. This
policy has the advantage of avoiding an “advertising war” which could be
bad news for profits. However, there are some disadvantages with this
approach. This approach assumes that sales are directly related to
advertising. Clearly this will not entirely be the case, since other elements
of the promotional mix will also affect sales. If the rule is applied when
sales are declining, the result will be a reduction in advertising just when
greater sales promotion is required!
Method (2) same level as competitors
This approach has widespread use when products are well-established

with predictable sales patterns. It is based on the assumption that there is
an “industry average” spend that works well for all major players in a
market.
A major problem with this approach (in addition to the disadvantages set
out for the example above) is that it encourages businesses to ignore the
effectiveness of their advertising spend – it makes them “lazy”. It could
also prevent a business with competitive advantages from increasing
market share by spending more than average.
Method (3) Task
The task approach involves setting marketing objectives based on the

“tasks” that the advertising has to complete. These tasks could be
financial in nature (e.g. achieve a certain increase in sales, profits) or
related to the marketing activity that is generated by the campaigns. For
example:
• Numbers of enquiries received quoting the source code on the

advertisement
• Increase in customer recognition / awareness of the product or brand
(which can be measured)
• Number of viewers, listeners or readers reached by the campaign
Method (4) Residual
The residual approach, which is perhaps the worst of all, is to base the
advertising budget on what the business can afford – after all other
expenditure. There is no attempt to associate marketing objectives with
levels of advertising. In a good year large amounts of money could be
wasted; in a bad year, the low advertising budget could guarantee a
further low year for sales.
ADVERTISING CAMPAIGN
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Campaign is a military expression which indicates organised and planned
operations of armed forces in war. In advertising it is used to mean
organised and planned use of advertising for accomplishing a definite
purpose.
An advertising campaign is an organised series of advertising messages

with identical or similar message over a particular period of time. It is an
orderly planned effort consisting of related but self-contained and
independent advertisements. The independent ads used in a campaign
are similar to one another, and this is deliberate. There is a psychological
continuity due to a unified theme. The physical continuity is provided by
similarity of visuals and orals.
In a broad sense, a campaign is a coordinative effort of promotion of a

particular product/service during a particular period of time to attain pre-
decided objectives.
BASIS OF A CAMPAIGN
The geographical spread of a campaign can be the basis. The campaign

can be limited to a local market, or one entire region .it can be national
campaign too. National campaign is ruled out for test marketing and for
small-budget companies.
Pioneering campaigns introduce new products. Competitive campaign

emphasise competitive superiority to retain the present market and to
expand it either by increasing the products consumption or by weaning
the customers away from a competitive brand.
Campaigns can be classified in terms of media e.g., direct mail, news

paper ,TV campaign etc. campaign’s purpose can be the basis of
classification, e.g., direct action campaign where a customer is expected
to buy a product or indirect-action campaign .some campaigns promote
products, while some build up a corporate image.
CAMPAIGN PLANNING
The basis of any campaign is the consumer behaviour and the market
profile. The demographic and psychographic study of consumers
constituting a market is a must to create advertisements for the right
target audience with the right type of appeals.
Campaigns are governed by the following parameters:
1. The total advertisement budget

2. The media availability
3. The consumer profile
4. The product profile
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5. The campaign duration and its timing
6. The advertising and marketing objectives
7. The distribution channels
8. The marketing environment
9. A review of previous advertisements
10. The creative considerations
11. The new plans
The following points need to be kept in the mind while planning an

advertisement campaign:
Identify the problem: why have sales fallen? What do you expect from
campaign? Higher sales or image for the company? Answers to these
questions would help in determining the unique selling proportion (USP)
and to position the product.
The budget: how much is a client prepared to spend on the campaign?

Are his funds limited?
Pre-testing: consumer and product research to find out the habits of the
customer, their needs,values,living standards, their present reactions to
the product and how is it advertised. What feedback is available from the
target audience?
Target audience: children? Teenagers? Upperclass house wives?

Working women? Middle class households? The aged and retired?
Media-selection: which is the most effective media?
The language: which is the most effective language?
The visual and the copy: would they be ‘read’ as you intend them to be
by the target audience?
Timing and duration: choose appropriate seasons for launching new

products .use ‘reminder’ ads during other seasons.
Post-testing: this is necessary to gauge the consumer reaction to the ad

campaign
Effect on sales: this is the acid test of the success of any campaign.
WHY TO PLAN CAMPAIGNS
Campaigns are to be planned with the following objectives in

mind:
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• To determine the market and its potential
• To obtain the consumer profile
• To study the consumer psychology
• To know the frequency or size of buying
• To decide about channels and their satisfactory operation
• To bring about product modifications
• To determine the geographical scope of the campaign
• To do the media planning
• To develop a central idea or core idea around which the selling
points involve. The idea has to be discoverd.the strength of this idea
forms the basis of effective campaign planning.
• To determine the fundamental human desire to which the
advertisement will appeal.
• To determine the type of copy
• To determine the scheduling and space buying
• The placement of the copy in the media to run the campaign
• To do the budgeting for the campaign
• To coordinate with general administration, sales staff and other
promotional staff.
BASIS OF CAMPIAGN PLANNING
The three word recipe of campaign planning as given by sir William

Crawford is concentration, domination and repitation.marketing research
provides quantitative guidelines for campaign and motivational research
provides qualitative guidelines for a campaign. Research feedback also
makes review and retrospection possible.
THREE PHASES OF CAMPIAGN CREATION
Strategy development phase
This phase decides the objectives and contents of communication. It

analysis the research dada and decides positioning of a brand .the
strategy formulation is in modern days agencies team effort. The creative
persons form a part of this team .there are brain storming sessions .the
ideas are thrown up by the team .these ideas ultimately make up the
strategy.
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Al ries and jack trout started focusing on the strategy side of advertising
business in the late 60’s when they first started writing about positioning.
Everybody else was talking about creativity whereas they decided to talk
about strategy. They found that clients did not want to buy strategy from
an ad agency.
The strategist is the left-brain oriented, very linear thinking, very logical in
deduction. The strategy formulation leads to advertising brief. ‘If you want
to catch the fish, you have to think like a fish. If you want to catch a
consumer, you have to think like a consumer. That is the first principle
many companies do is they think like themselves.
ADVERTISING BRIEF TO THE CREATIVE
As a matter of fact, the client has to brief the agency about the strategy.
The time honoured is that the clients brief the client servicing executives,
who in turn proselytise to the creative’s. However most of the time this
does not happen. The agency is supposed to brief itself. The strategy
formulated is communicated to the creative people. They are briefed
about how to create the advertising according to the product needs. The
strategy should be communicated with the clarity. The strategist should
be a good motivator for the creative team.
THE CREATIVE PHASE
Within the creative team. The copywriter and visualiser work together and
it is difficult to attribute the final product to either of them. When they are
working, there are personal sparks of creativity. Creative campaigns are
creative due to good brief.
Edward de bono was one of the geniuses of advertising, though he was

not in advertising. He taught us that lateral thinking was the way to go. It
is not always good to go from A to B .You may be required to go from A to
R, and from to sun. We cannot restrict over selves to a box of thinking. It
is behaving like a machine.
The creative director position has become more responsible one. He has
not remained content with a clever copy or stimulating visuals. He is
required to understand the product and its market completely.
ADVERTISING RESEARCH
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Advertising research is a specialized form of marketing research
conducted to improve the efficiency of advertising. According to
MarketConscious.com, “It may focus on a specific ad or campaign, or may
be directed at a more general understanding of how advertising works or
how consumers use the information in advertising. It can entail a variety
of research approaches, including psychological, sociological, economic,
and other perspectives.”
History
1879 - N.W. Ayer conducts custom research in an attempt to win the

advertising business of Nichols-Shepard Co., a manufacturer of
agricultural machinery.
1895 - Harlow Gale of the University of Minnesota mails questionnaires to

gather opinions about advertising from the public.
1900s - George B. Waldron conducts qualitative research for Mahin’s

Advertising Agency
1910s - 1911 can be considered the year marketing research becomes an

industry. That year, J. George Frederick leaves his position as editor of
Printer’s Ink to begin his research company, the Business Bourse with
clients such as General Electric and the Texas Co. Also in 1911, Kellogg
Co.’s ad manager, R.O. Eastman creates the Association of National
Advertisers which is now known as the Association of National Advertising
Managers. The group’s first project is a postcard questionnaire to
determine magazine readership. The results introduce the concept of
duplication of circulation. In 1916, R.O. Eastman starts his own company,
the Eastman Research Bureau which boasts clients such as Cosmopolitan,
Christian Herald, and General Electric.
1920s - In 1922, Dr. Daniel Starch tests reader recognition levels of

magazine and newspaper advertisements and editorial content. In 1923,
Dr. George Gallup begins measuring advertising readership.
1930s - In 1936, Dr. George Gallup validates his survey methodology by

using the same tools polling voters during public elections. This allows him
to successfully compare and validate his study's results against the
election’s results.
1940s - Post World War II, the U.S. sees a large increase in the number of
market research companies.
1950s - Market researchers focus on improving methods and measures. In

their search for a single-number statistic to capture the overall
performance of the advertising creative, Day-After-Recall (DAR) is
created.
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1960s - Qualitative focus groups gain in popularity. [7] In addition, some
advertisers call for more rigorous measurement of the in-market
effectiveness of advertising in order to provide better accountability for
the large amounts being spent on advertising. In response, Seymour
Smith and Associates, using Advertising Research Foundation data as a
jumping-off point, develops the Communicus System, a comprehensive
approach to isolating the in-market impact of advertising across media.
1970s - Computers emerge as business tools, allowing researchers to

conduct large-scale data manipulations. (Honomichl p. 175) Multiple
studies prove DAR (Recall) scores do not predict sales. The measure,
persuasion, also known as motivation, is validated as a predictor of sales.
[8]
The measure known as “breakthrough” is re-examined by researchers
who make a distinction between the attention-getting powers of the
creative execution (attention) and how well “branded” the ad is (brand
linkage). [9] Herbert Krugman seeks to measure non-verbal measures
biologically by tracking brain wave activities as respondents watch
commercials. (Krugman) Others experiment with galvanic skin response,
voice pitch analysis, and eye-tracking.
1980s - Researchers begin to view commercials as a “structured flow of

experience” rather than a single unit to be rated on the whole, creating
moment-by-moment systems such as the dial-a-meter.
1990s - Ameritest Research creates Picture Sorts to provide accurate non-

verbal measurements in a moment-by-moment system. Picture Sorts
results are graphed to visually represent commercial viewers' moment-by-
moment image recognition (Flow of Attention), positive and negative
feelings (Flow of Emotion), and brand values (Flow of Meaning).[12] Trends
in in-market tracking include a greater focus on the multimedia nature of
entire advertising campaigns.
2000s - Global advertisers seek an integrated marketing research system

that will work worldwide so they can compare results across countries. [13]
For a look at trends predicted for advertising research in the 21st century,
see Seven Trends for the Future. Dr. Robert Heath publishes the seminal
and controversial monograph “The Hidden Power of Advertising” which
challenged the traditional models used in advertising research and shows
how most advertising is processed at an emotional level (not a rational
level). His monograph leads to re-examination of in-market research
approaches that compare the behaviours of those who have seen
advertising versus those who have not, such as the Communicus System,
and the development of brand new pretesting systems such as the OTX
AdCEP system.
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Types of Advertising Research
There are two types of research, customized and syndicated. Customized

research is conducted for a specific client to address that client’s needs.
Only that client has access to the results of the research. Syndicated
research is a single research study conducted by a research company with
its results available, for sale, to multiple companies. Pre-market research
can be conducted to optimize advertisements for any medium: radio,
television, print (magazine, newspaper or direct mail), outdoor billboard
(highway, bus, or train), or Internet. Different methods would be applied
to gather the necessary data appropriately. Post-testing is conducted after
the advertising, either a single ad or an entire multimedia campaign has
been run in-market. The focus is on what the advertising has done for the
brand, for example increasing brand awareness, trial, frequency of
purchasing.
Pre-testing
Pre-testing, also known as copy testing, is a form of customized research

that predicts in-market performance of an ad, before it airs, by analyzing
audience levels of attention, brand linkage, motivation, entertainment,
and communication, as well as breaking down the ad’s Flow of Attention
and Flow of Emotion.[16] Pre-testing is also used on ads still in rough form –
e.g., animatics or ripomatics. Pre-testing is also used to identify weak
spots within an ad to improve performance, to more effectively edit 60’s
to 30’s or 30’s to 15’s, to select images from the spot to use in an
integrated campaign’s print ad, to pull out the key moments for use in ad
tracking, and to identify branding moments.
Campaign pre-testing
A new area of pre-testing driven by the realization that what works on TV

does not necessarily translate in other media. Greater budgets allocated
to digital media in particular have driven the need for campaign pre-
testing. The first to market with a product to test integrated campaigns
was OTX in association with Sequent Partners with the introduction of
MediaCEP. The latest generation of this product incorporates one of the
leading media planning tools developed by a media modelling and
software company Point logic. The addition of a media planning tool to
this testing approach allows advertisers to test the whole campaign,
creative and media, and measures the synergies expected with an
integrated campaign
Post-testing
Post-testing/Tracking studies provide either periodic or continuous in-

market research monitoring a brand’s performance, including brand
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awareness, brand preference, product usage and attitudes. Some post-
testing approaches simply track changes over time, while others use
various methods to quantify the specific changes produced by advertising
—either the campaign as a whole or by the different media utilized.
Overall, advertisers use post-testing to plan future advertising campaigns,

so the approaches that provide the most detailed information on the
accomplishments of the campaign are most valued. The two types of
campaign post-testing that have achieved the greatest use among major
advertisers include continuous tracking, in which changes in advertising
spending are correlated with changes in brand awareness, and
longitudinal studies, in which the same group of respondents are tracked
over time. With the longitudinal approach, it is possible to go beyond
brand awareness, and to isolate the campaign's impact on specific
behavioural and perceptual dimensions, and to isolate campaign impact
by medium.
CHAPTER4
Promotion - personal selling
Introduction
Personal selling can be defined as follows:
Personal selling is oral communication with potential buyers of a product

with the intention of making a sale. The personal selling may focus initially
on developing a relationship with the potential buyer, but will always
ultimately end with an attempt to "close the sale"
Personal selling is one of the oldest forms of promotion. It involves the use
of a sales force to support a push strategy (encouraging intermediaries to
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buy the product) or a pull strategy (where the role of the sales force may
be limited to supporting retailers and providing after-sales service).
MAIN ROLES OF THE SALES FORCE
1. Prospecting - trying to find new customers

2. Communicating - with existing and potential customers about the
product range
3. Selling - contact with the customer, answering questions and trying
to close the sale
4. Servicing - providing support and service to the customer in the
period up to delivery and also post-sale
5. Information gathering - obtaining information about the market to
feedback into the marketing planning process
6. Allocating - in times of product shortage, the sales force may have
the power to decide how available stocks are allocated
what are the advantages of using personal selling as a

means of promotion?
• Personal selling is a face-to-face activity; customers therefore obtain

a relatively high degree of personal attention
• The sales message can be customised to meet the needs of the
customer
• The two-way nature of the sales process allows the sales team to
respond directly and promptly to customer questions and concerns
• Personal selling is a good way of getting across large amounts of
technical or other complex product information
• The face-to-face sales meeting gives the sales force chance to
demonstrate the product
• Frequent meetings between sales force and customer provide an
opportunity to build good long-term relationships
Main disadvantages of using personal selling
The main disadvantage of personal selling is the cost of employing a sales

force. Sales people are expensive. In addition to the basic pay package, a
business needs to provide incentives to achieve sales (typically this is
based on commission and/or bonus arrangements) and the equipment to
make sales calls (car, travel and subsistence costs, mobile phone etc).
In addition, a sales person can only call on one customer at a time. This is
not a cost-effective way of reaching a large audience.
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THEORIES OF SELLING
AIDA’s theory of selling
The popular AIDAS theory is based on the initials of the five letters which
stands for attention, interest, desire, action and satisfaction.
Attract attention:
In order to attract the attention of the prospect and to open up the

presentation several approaches are tried. The most common approach is
to greet the prospect, and inform them who you are what you are selling.
If the sales person has approached the prospect through a reference the
presentation may starts with mentioning the name of the reference.
Sustain interest and create desire
Once the attention of the prospect is attracted, a sales person tries to

sustain his interest and desire for the product in the introduction itself. No
readymade formula can be given for this step. Perhaps, a product may be
demonstrated .the emphasis is always on what benefits will flow to the
prospect if he uses the product.
Inducing action
Once the explanation about the product and the benefits that it gives are
over, it become necessary to close the sale and take order. A hint to close
the sale may be given to ascertaining prospects willingness to buy.
Building satisfaction
A sale does not end with an order. We have to build goodwill for the
company after that. That proves for a permanent relationship with the
customer.post-sale activities will include installation and maintenance .all
the activities which reduce the anxiety of the customer after making a
purchase-psychologically called ‘cognitive dissonances’-are post-sale
activities.
RIGHT SET OF CIRCUMSTANCES THEORY
This theory can be summarized as ‘everything was right for that sale. ‘It is
called situation-response theory also. In particular circumstances, we
respond in a particular way. The more skilled a sales person is in handling
the circumstances the better is the response. The set of circumstances
refer to both the internal and external factors working on the prospects
‘this theory however fails to handle the internal factors affecting the
prospect. It puts the sales men in charge of the situation without paying
any heed to the response generated.
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BUYING FORMULA THEORY
This is buyer oriented theory which seeks answer to why a consumer buys
what he does. It emphasises the problem-solving job of salesman. This
theory takes into account the internal factors, and does not place all the
importance on external factors. It is simply a problem, solution, purchase
theory. The purchase must lead to satisfaction to continue the buyer and
seller relationships.
In the present context the problem solution can be either a product or

brand. The schematic diagram of the buyer theory as follows:
Product
Need or OR purchase satisfaction
Problem
Brand
Product or brand must be considered as adequate in solution must induce

pleasant feelings. Both adequacy and pleasant feelings can be
simultaneously present.
BEHAVIOURAL EQUATION THEORY
Howard explains buying behaviour as phases of learning process

resulting into purchasing. Basically, this is modified stimulus-response
(SR) model. Drivers, cues and re-enforcement are the four elements of the
learning process. Drivers are strong internal feeling which can be innate
like hunger,pain,sex,thirst etc.Cues are weak stimuli which decides when
the buyer will respond. Cues provide information of symbolic nature about
the product. Response is what a buyer does. Any event that strengthens
this response is called re-enforcement. Howard put forward this as an
equation:
B= P*D*K*V
Where B=response or purchasing
P=force or habit
D=drive level or motivation
K=value of the produce to provide satisfaction
V=intensity of all cues
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OBJECTIVES OF PERSONAL SELLING
a. To service the existing customers by maintaining a relationship with

them, and by filling up their orders
b. To get new customers
c. To carry out the selling task entirely, if other elements of
promotional mix are not at work
d. To help the trade sell the company’s products line.
e. To make the customer aware of our marketing strategy
f. To act as technical consultants for complex products.
g. To provide feedback to the company about the markets and
customers
h. To help the middlemen’s sales force
i. To help the trade in their administrative problems.
CHAPTER5
DIRECT MARKETING
Direct marketing is a sub-discipline and type of marketing. There are two

main definitional characteristics which distinguish it from other types of
marketing. The first is that it attempts to send its messages directly to
consumers, without the use of intervening media. This involves
commercial communication (direct mail, e-mail, and telemarketing) with
consumers or businesses, usually unsolicited. The second characteristic is
that it is focused on driving a specific "call-to-action." This aspect of direct
marketing involves an emphasis on traceable, measurable positive (but
not negative) responses from consumers (known simply as "response" in
the industry) regardless of medium.
If the advertisement asks the prospect to take a specific action, for

instance call a free phone number or visit a website, then the effort is
considered to be direct response advertising.
History
The term direct marketing is believed to have been first used in 1967 in a
speech by Lester Wunderman, who pioneered direct marketing techniques
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with brands such as American Express and Columbia Records. The term
junk mail, referring to unsolicited commercial ads delivered via post office
or directly deposited in consumers' mail boxes, can be traced back to
1954.[1] The term spam, meaning "unsolicited commercial email", can be
traced back to March 31, 1993,[2] although in its first few months it merely
referred to inadvertently posting a message so many times on UseNet
that the repetitions effectively drowned out the normal flow of
conversation.
Although Wunderman may have been the first to use the term direct
marketing, the practice of mail order selling (direct marketing via mail)
essentially began in the U.S. upon invention of the typewriter in 1867.
The first modern mail-order catalogue was produced by Aaron

Montgomery Ward in 1872.[citation needed] The Direct Mail Advertising
Association, predecessor of the present-day Direct Marketing Association,
was first established in 1917. Third class bulk mail postage rates were
established in 1928.
Direct marketing's history in Europe can be traced to the 15th century.

Upon Gutenberg's invention of movable type, the first trade catalogs from
printer-publishers appeared sometime around 1450.
Benefits and drawbacks
Direct marketing is attractive to many marketers, because in many cases

its positive effect (but not negative results) can be measured directly. For
example, if a marketer sends out one million solicitations by mail, and ten
thousand customers can be tracked as having responded to the
promotion, the marketer can say with some confidence that the campaign
led directly to the responses. The number of recipients who are offended
by the junk mail/spam, however, is not easily measured. By contrast,
measurement of other media must often be indirect, since there is no
direct response from a consumer. Measurement of results, a fundamental
element in successful direct marketing, is explored in greater detail
elsewhere in this article. Yet since the start of the Internet-age the
challenges of Chief Marketing Officers (CMOs) are tracking direct
marketing responses and measuring results.
While many marketers like this form of marketing, some direct marketing
efforts using particular media have been criticized for generating
unwanted solicitations. For example, direct mail that is irrelevant to the
recipient is considered junk mail, and unwanted email messages are
considered spam. Some consumers are demanding an end to direct
marketing for privacy and environmental reasons, which direct marketers,
are able to provide by using "opt out" lists, variable printing and more
targeted mailing lists.
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Channels
Some direct marketers also use media such as door hangers, package
inserts, magazines, newspapers, radio, television, email, internet banner
ads, digital campaigns, pay-per-click ads, billboards, transit ads. And
according to Ad Age, "In 2005, U.S. agencies generated more revenue
from marketing services (which include direct marketing) than from
traditional advertising and media.
Direct mail
The most common form of direct marketing is direct mail, sometimes

called junk mail, used by advertisers who send paper mail to all postal
customers in an area or to all customers on a list.
Any low-budget medium that can be used to deliver a communication to a

customer can be employed in direct marketing. Probably the most
commonly used medium for direct marketing is mail, in which marketing
communications are sent to customers using the postal service. The term
direct mail is used in the direct marketing industry to refer to
communication deliveries by the Post Office, which may also be referred
to as "junk mail" or "ad mail" or "crap mail" and may involve bulk mail.
Junk mail includes advertising circulars, catalogs, free trial CDs, pre-
approved credit card applications, and other unsolicited merchandising
invitations delivered by mail or to homes and businesses, or delivered to
consumers' mailboxes by delivery services other than the Post Office. Bulk
mailings are a particularly popular method of promotion for businesses
operating in the financial services, home computer, and travel and
tourism industries.
In many developed countries, direct mail represents such a significant

amount of the total volume of mail that special rate classes have been
established. In the United States and United Kingdom, for example, there
are bulk mail rates that enable marketers to send mail at rates that are
substantially lower than regular first-class rates. In order to qualify for
these rates, marketers must format and sort the mail in particular ways –
which reduces the handling (and therefore costs) required by the postal
service.
Advertisers often refine direct mail practices into targeted mailing, in

which mail is sent out following database analysis to select recipients
considered most likely to respond positively. For example a person who
has demonstrated an interest in golf may receive direct mail for golf
related products or perhaps for goods and services that are appropriate
for golfers. This use of database analysis is a type of database marketing.
The United States Postal Service calls this form of mail "advertising mail"
(admail for short).
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Telemarketing
The second most common form of direct marketing is telemarketing, in

which marketers contact consumers by phone. The unpopularity of cold
call telemarketing (in which the consumer does not expect or invite the
sales call) has led some US states and the US federal government to
create "no-call lists" and legislation including heavy fines. This process
may be outsourced to specialist call centres.
In the US, a national do-not-call list went into effect on October 1, 2003.
Under the law, it is illegal for telemarketers to call anyone who has
registered themselves on the list. After the list had operated for one year,
over 62 million people had signed up.[3] The telemarketing industry
opposed the creation of the list, but most telemarketers have complied
with the law and refrained from calling people who are on the list.[citation
needed]
Canada has passed legislation to create a similar Do Not Call List. In other
countries it is voluntary, such as the New Zealand Name Removal Service.
Email Marketing
Email Marketing may have passed telemarketing in frequency at this

point, and is a third type of direct marketing. A major concern is spam,
which actually predates legitimate email marketing. As a result of the
proliferation of mass spamming, ISPs and email service providers have
developed increasingly effective E-Mail Filtering programs. These filters
can interfere with the delivery of email marketing campaigns, even if the
person has subscribed to receive them, as legitimate email marketing can
possess the same hallmarks as spam.
Door to Door Leaflet Marketing
Leaflet Distribution services are used extensively by the fast food

industries, and many other business focussing on a local catchment
Business to consumer business model, similar to direct mail marketing,
this method is targeted purely by area, and costs a fraction of the amount
of a mail shot due to not having to purchase stamps, envelopes or having
to buy address lists and the names of home occupants.
Broadcast faxing
A fourth type of direct marketing, broadcast faxing, is now less common

than the other forms. This is partly due to laws in the United States and
elsewhere which make it illegal.
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Voicemail Marketing
A fifth type of direct marketing has emerged out of the market prevalence
of personal voice mailboxes, and business voicemail systems. Due to the
ubiquity of email marketing, and the expense of direct mail and
telemarketing, voicemail marketing presented a cost effective means by
which to reach people with the warmth of a human voice.
Abuse of consumer marketing applications of voicemail marketing

resulted in an abundance of "voice-spam", and prompted many
jurisdictions to pass laws regulating consumer voicemail marketing.
More recently, businesses have utilized guided voicemail (an application

where pre-recorded voicemails are guided by live callers) to accomplish
personalized business-to-business marketing formerly reserved for
telemarketing. Because guided voicemail is used to contact only
businesses, it is exempt from Do Not Call regulations in place for other
forms of voicemail marketing.
Couponing
Couponing is used in print media to elicit a response from the reader. An

example is a coupon which the reader cuts out and presents to a super-
store check-out counter to avail of a discount. Coupons in newspapers and
magazines cannot be considered direct marketing, since the marketer
incurs the cost of supporting a third-party medium (the newspaper or
magazine); direct marketing aims to circumvent that balance, paring the
costs down to solely delivering their unsolicited sales message to the
consumer, without supporting the newspaper that the consumer seeks
and welcomes.
Direct response television marketing
Direct marketing on TV (commonly referred to as DRTV) has two basic

forms: long form (usually half-hour or hour-long segments that explain a
product in detail and are commonly referred to as infomercials) and short
form which refers to typical 0:30 second or 0:60 second commercials that
ask viewers for an immediate response (typically to call a phone number
on screen or go to a website).
TV-response marketing—i.e. infomercials—can be considered a form of

direct marketing, since responses are in the form of calls to telephone
numbers given on-air. These both allow marketers to reasonably conclude
that the calls are due to a particular campaign, and allow the marketers to
obtain customers' phone numbers as targets for telemarketing. Under the
Federal Do-Not-Call List rules in the US, if the caller buys anything, the
marketer would be exempt from Do-Not-Call List restrictions for a period
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of time due to having a prior business relationship with the caller. Major
players are firms like QVC, Thane Direct, and Interwood Marketing Group
then cross-sell, and up-sell to these respondents.
One of the most famous DRTV commercials was for Ginsu Knives by Ginsu
Products, Inc. of RI. Several aspects of ad, such as its use of adding items
to the offer and the guarantee of satisfaction were much copied and came
to be considered part of the formula for success with short form direct
response TV ads (DRTV)
Direct selling
Direct selling is the sale of products by face-to-face contact with the

customer, either by having salespeople approach potential customers in
person, or through indirect means such as Tupperware parties.
Integrated Campaigns
For many marketers, a comprehensive direct marketing campaign

employs a mix of channels. It is not unusual for a large campaign to
combine direct mail, telemarketing, radio and broadcast TV, as well as
online channels such as email, search marketing, social networking and
video. In a report conducted by the Direct Marketing Association, it was
found that 57% of the campaigns studied were employing integrated
strategies. Of those, almost half (47%) launched with a direct mail
campaign, typically followed by e-mail and then telemarketing.
ATTRIBUTES OF DIRECT MARKETING
There are four attributes which makes DM distinct from any other
communication
Focus: it targets a message to a well defined target audience, selected

on the basis of segmentation.
Measurability: it counts the number of responses as a result of each

communication exercise.
Personalization: it communicates with a person directly, addressing

him/her by name.
Immediately: it makes an offer in such a way that it generates an

immediate response.
PRODUCTS SOLD BY DIRECT MARKETING
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The following products elicit a response through direct marketing:
 Ready-to-wear garments
 Credit cards
 Shoes, slippers and other footwear
 Cosmetics, beauty aids, and health products.
 Kitchen equipments and household products.
 Music and film products.
 Travel plans, package tours, holiday resorts, time-share plans
 Banking and financial products including insurance
 Stationary, sporting goods
 Direct marketing is an iceberg. Only a small part is visible, and a
large part is underneath, it is to marketers to explore it.
SALES PROMOTION
Sales promotion is one of the four aspects of promotional mix. (The other
three parts of the promotional mix are advertising, personal selling, and
publicity/public relations.) Media and non-media marketing
communication are employed for a pre-determined, limited time to
increase consumer demand, stimulate market demand or improve product
availability. Examples include:
a. contests
b. point of purchase displays
c. rebates
d. free travel, such as free flights
Sales promotions can be directed at the customer sales staff, or

distribution channel members (such as retailers). Sales promotions
targeted at the consumer are called consumer sales promotions. Sales
promotions targeted at retailers and wholesale are called trade sales
promotions. Some sale promotions, particularly ones with unusual
methods, are considered gimmick by many.
• CONSUMER SALES PROMOTION TECHNIQUES
• Price deal: A temporary reduction in the price, such as happy hour

• Loyal Reward Program: Consumers collect points, miles, or credits
for purchases and redeem them for rewards. Two famous examples
are Pepsi Stuff and Advantage.
• Cents-off deal: Offers a brand at a lower price. Price reduction may
be a percentage marked on the package.
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• Price-pack deal: The packaging offers a consumer a certain
percentage more of the product for the same price (for example, 25
percent extra).
• Coupons: coupons have become a standard mechanism for sales

promotions.
• Loss leader: the price of a popular product is temporarily reduced in
order to stimulate other profitable sales
• Free-standing insert (FSI): A coupon booklet is inserted into the local
newspaper for delivery.
• On-shelf couponing: Coupons are present at the shelf where the
product is available.
• Checkout dispensers: On checkout the customer is given a coupon
based on products purchased.
• On-line couponing: Coupons are available on line. Consumers print
them out and take them to the store.
• Mobile couponing: Coupons are available on a mobile phone.
Consumers show the offer on a mobile phone to a salesperson for
redemption.
• Online interactive promotion game: Consumers play an interactive
game associated with the promoted product. See an example of the
Interactive Internet Ad for tomato ketchup.
• Rebates: Consumers are offered money back if the receipt and
barcode are mailed to the producer.
• Contests/sweepstakes/games: The consumer is automatically
entered into the event by purchasing the product.
• Point-of-sale displays:-
 Aisle interrupter: A sign that juts into the aisle from the shelf.
 Dangler: A sign that sways when a consumer walks by it.
 Dump bin: A bin full of products dumped inside.
 Glorifier: A small stage that elevates a product above other
products.
 Wobblers: A sign that jiggles.
 Lipstick Board: A board on which messages are written in
crayon.
 Necker: A coupon placed on the 'neck' of a bottle.
 YES unit: "your extra salesperson" is a pull-out fact sheet.
Trade sales promotion techniques
 Trade allowances: short term incentive offered to induce a retailer

to stock up on a product.
 Dealer loader: An incentive given to induce a retailer to purchase
and display a product.
 Trade contest: A contest to reward retailers that sell the most
products.
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 Point-of-purchase displays: Extra sales tools given to retailers to
boost sales.
 Training programs: dealer employees are trained in selling the
product.
 Push money: also known as "spiffs". An extra commission paid to
retail employees to push products.
Trade discounts (also called functional discounts): These are payments to

distribution channel members for performing some function.
SALES REPRESENTATIVE LEVEL PROMOTION
Incentives: there are motivational tools linked to sales that achieve a

certain level, or cross that level. These rewards can be given for individual
performance and for special achievements.
Some basic reasons for their extensive use are:
 Morale boosters
 Increase units sold per representative
 Increase sales per representative
 Launch new products
 Increase sales on average per account
 Boost-recession period sales
 Upgrade existing accounts to high ticket products
 Review old products
Sales representative contests
Here sales representatives are made to complete amongst them to motive

them to achieve higher goals and benefit the organisation. Used
positively, they are a great device. But used improperly, they demoralize
the representatives.
Themes
The themes could be creatively chosen
Some novel themes could be:
 Let’s hunt for the hidden treasure (find new customers)

 Make your customer fat (sell more to existing customer)
 Planting the gold (sell more profitable product mix)
 Healthy customers, healthy sales (more profits per customers) etc.
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Rules
Everything must be specific. What constitutes a sale-whether an order or

a delivery or a payment received? What constitutes a new order? What
about sales returns after the context period? Every achievement must be
rated in terms of points. All these will help avoid hard and bitter feelings
later.
Participation
Large sales force with a hierarchical order calls for contests for different
groups, and eligibility criteria restrict the participation to each group. In a
contest, individuals should not be pitted against each other. A variety of
contests/a variety of prizes do help in this direction.
EVALUATION OF SALES PROMOTION
Monitoring during implementation collects data on the following:
 Product movement
 Territory wise sales
 Outlet wise sales
 Goals set vs. past result
 Competitive moves
 Market mood
 Problems encountered.
Post testing is basically analytical. Here performance is measured with

respect to:
 Redemption rate of coupons

 Sales attained
 Cost effectiveness
 Redemption of trading stamps
 Sales turnover of special packs
 Number of entries received for the consumer contest etc.
Post testing is done by
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 Market research studies
 Observation method in the stores
 Desk analysis of collected data
Studies on SP give us the following guidelines
 Short purchase cycles means short term effects

 The earliest redemption are incremental sales
 Incremental sales are difficult to obtain for brands having a large
market share
 A coupon with a sample is twice as effective as a coupon alone.
Hidden costs of promotion are:
 High level of inventory with trade

 Competitors rise up with their sales promotion
 Discounts offered during promotion period become the base – line
for future promotions.
SP designed to suit local market conditions is more effective.
CHAPTER 6
PUBLIC RELATIONS
Public relations is popularly known as PR.As a profession ,it means as Frank

Jefkins says, creation of understanding or better mutual understanding.PR is a
continuous process and it is not restricted to the period of crisis. It is different
from advertising ,in sense that advertising is persuasive in content ,and its basic
objective is to achieve marketing and sales goals.PR is present informally in all
organisation as communications of human relations.PR address itself to different
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publics starting from employees, shareholders, distributors, customers,
government ,local bodies, pressure groups, media etc.
According to Jayanthi ghosh,Ogilvy PR worldwide “public relations has moved

beyond the realm of media relations into areas such as reputation management,
corporate image building, stakeholder outreach,KOL key opinion leader
management, mergers and acquisitions and crisis communications.
CORPORATE IMAGE
A business has to build a favourable corporate image. We feel tempted to apply

for a job in any Tata firm; through we do not know their financial position, all the
details about their management structure, all the details of their product range
etc.Our decision to deal with them is solely on the basis of their image.
Citi bank in India has an image of efficiency and customer friendliness .corporate
image is earned over a period of time. It is based on our experience of dealing
with organisation. It is also based on our knowledge about that organisation. We
may project a good or bad or indifferent image. It is the job of PR to
communicate what we stand for.we has to behave responsibly as a corporate
citizen.
CORPORATE IDENTITY
The concept of corporate image leads us to corporate identity. Image is mostly a

matter of perception amongst the different audiences of the corporation.
Identity is, however, more of a physical nature – it is the audible or the visible
part of the corporate image.
Elements of corporate identity:
 The name of the organisation

 Communicative name if different
 Names of divisions, subsidiaries and products
 The corporate mark
 The corporate signature
 Graphic representation of a mark or signature
 Slogan, phrase etc

 Typography ,curly letter of coco cola
 Corporate colours
MEDIA COVERAGE
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Advertising as we have already observer is any paid form of non-personal
communications. PR, by contrast, uses media without paying for it. kotler
calls this planting of commercially significant news’ in media. It creates a
favourable image of the corporation as a whole, or any of its products and
services. Such media coverage is called publicity.
Al ries and laura ries in their latest book 22 immutable laws of branding
recommended publicity to build new brands. According to them,
advertising is used generally to maintain existing brands. For new brands,
concepts are thrown into the environment .press coverage and media
coverage is improved. Publicity helps in creating perceptions.inn the past,
advertising might have worked in the new brand building. Today it is not
true. There is the element of clutter in out over-communicated society.
Without favourable publicity in the media, the brand cannot be a winner.
INTERVIEWS
We have to know the media scene well. There are several different kinds
of media newspapers, magazines, and electronic media. Specially media
and niche media. Each media has a certain geographical spread, and
demographic spread. Thus, savvy is a woman’s magazine being mostly by
upwardly mobile urban women. Media are rated on the basis of their
circulation and editorial environment.
As a person who receives a request for an interview, one has to be aware

about the media scene and their special characteristics. A request for an
interview is to be handled positively. One has to anticipate the kind of
questioning one will be subjected to and the kind of responses one will
offer. All strengths and weakness of the subject might be touched upon in
the interview. Each interview session should be preceded by some
homework. For a press interview it is good idea to educate the journalist
by taking him around the plant and organisation.
Tips on media management
 Insist to run story without any change including the headline.

 Label the story as ‘exclusive’ through all the media organisations
are likely to receive the same story.
 Point-out that the story is ‘cover-story’ material.
 Though media is a bit unfair, they are being given a chance to
handle the story.
 Claim secrecy regarding data to avoid unnecessary facts.
 Enquiry repeatedly about the status of the story.
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 Ask them for a copy of the story after it is run.
 Point out your advertising and marketing clout.
 It is not necessary to show your gratitude for a great story. It is their

job.
Sponsorship
First let us discuss the business consideration of a sponsorship, ranging

from an award of a trophy to the sponsorship of a sports tournament.
It gives tremendous media coverage to the company and its product. It

facilitates PR. the company becomes known internationally. The goodwill
generated goes a long way in building a favourable corporate image. The
company creates awareness about its name; it also allows a company to
enter a new market segment.
Sponsorship gives an opportunity to the company to extend hospitality to

valuable guests.
Coverage on TV of a sponsored event is an added advantage. A sponsored

event may be more effective than advertising in certain situations.
Event marketing:
Inspired by the success of femina’s beauty pageants, many companies

now make use to event marketing, e.g.
Screen Panasonic awards, Mahindra & Mahindra squash tournament,

femina miss India pageant etc
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Merits
 The brand message is taken a long way.

 Media and market clutter is bypassed
 It builds long-term corporate image
 These are cost effective
 Media coverage of the event is an added advantage.
Adventure marketing
Adventure like skating, mountaineering, swimming which are risky

sports/expeditions is being sponsored by corporate organisations to get
publicity. Adventure marketing proves cost effective too since the events
get televised and sponsors logo gets flashed on the screen without paying
the prohibitive as tariff rates of TV commercials.
Sports marketing
Nothing sells like sports. Once relegated to the ghetto of cigarette, beer
and auto companies, sports’ marketing has taken a firm hold on the
corporate world. Tennis, for one, has become a business that can fetch a
fortune. Even school going players are making as much money in a year
as their parents made in a decade. The big three in the business of sports
are the international management groups (IMG) preserve and advantage
international. They are premier firms in the representation of sports
celebrities.
IN-HOUSE-PR
PR being an important function, in large organisation it is delegated to an

independent PR department. A person in charge of PR department must
have
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 As much knowledge about organisation as possible
 Good qualification like management training, PR diploma,
advertising, journalism or mass communications diploma.
 Good experience
 Personal traits suitable to work as PR executive
 Managerial skills of planning, organising and controlling
 Imagination and innovation
 Computer literacy
 Personal integrity
Corporate advertising
Corporate advertising also called institutional advertising does not seem

to sell anything but it is used to build an image of the organisation .It
states what organisation has to say about itself, lays stress on its mission
and its philosophy .It says everything very boldly .It may have a social
message for a specific target audience. It presents the view point of an
institute for a national cause.
CUSTOMER RELATIONS
The very bed-rocking of marketing, PR and business is customer

relations .customer relations are an essential part of any PR programme.
It is necessary that customer should actually like the company and its
products .A product that performs satisfactorily is the beginning of good
customer relations. There may be number of problems a customer may
come across while using the product .there should be systematic
approach in handling customer complaints.PR techniques try to maintain
and sustain customer interest . We can think of ways and means to make
people use our product, and further to make it used more and more.
PR AND MARKETING
PR and marketing have a symbiotic relationship. To begin with PR is

considered as just a part of marketing. It is open to the firm to have pr or
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not. It just supports advertising and thus is a part of promotion.
Advertising is paid for, and pr is free publicity.
Pr has however, strong linkage with marketing. The marketing operation

of any business are guided by its marketing plan, which has the best
possible mix of four variables namely, the nature of the product, the price
of the product, the channels of distribution which take the product from
the producer to the customer, and promotional activities. Let us how PR is
related to these four elements of the marketing mix.
PRODUCT
A company marketing products and services has a name. The name of the
company itself stands for entire identity and image. It should enable
others to identify a company, and create an understanding about it. The
company name must be easy to remember .explicit names are preferable.
A company name has PR connotations. The changes in name is called for
when the nature of business or mission of the company changes. The
change will be well communicated. It should not confuse the public.
A company’s products are branded. Branding ads value to the product .a

brand name is also necessary for identification and communication
purposes. It facilitates marketing communication.
Whether the name of the company or its brands, the name should be
distinctive, suggestive, appropriate and memorisable. Besides in these
days of globalization, the name must be internationally acceptable.
PACKAGING OF THE PRODUCT
Package of the product also has communicative functions. A package may

generate goodwill or may create ill feeling. Packages are made for the
convenience of the customers. A slight change in package creates
problem of acceptance. Coke has learnt that consumers have a liking for
its green countered bottle. It is trying to shape even its cans in such a
mould. Packaging is another name for being shown to the customer.
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PRICE
Price is charged to cover all costs leave some surplus. Price, however, has
psychological dimensions. In indicates what people can afford to pay, and
what they would like to pay. Price paid should provide value for money
spent. Money can be put to alternative uses. An organisation stakes its
goodwill on price. Price has a great role to play in the overall satisfaction
of the customers and the feeling they have towards the organisation
.price has, PR implications. Change in price must be brought to the notice
of all concerned.
CHANNELS OF DISTRIBUTION
There should be communication between the trade channels and PR .while

selecting a channel, we have to consider the other 3 ps-product, price and
promotion. Channels must be educated about the company’s product.
There are dealer’s conferences, training sessions and dealer magazines.
PROMOTION
Promotion brings us closer to the customer. It has PR implications since

both have the ultimate aim of customer satisfaction. As SP scheme affects
the goodwill of a company in the long run and the bottom-line of the
company in the short- run should be considered in relation to the trade
conveniences.
THE END
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PROMOTION MANAGEMENT

It is the communication package in marketing which aims to exchange

There are four broad promotional tools available to a marketer

Advertising which is any paid form of non-personal presentation of ideas,

Personal selling is an oral presentation made to prospective customers

Sales promotion are those marketing activities excluding advertising,

Publicity and public relations stimulate demand in a non-personal

The combination of these four methods of promotion is called promotional

Mostly organizations treat advertising, sales promotion, public relations,

SRAVAN KUMAR REDDY, DEPT OF MARKETING MANAGEMENT, FBE, WOLLEGA

STRATEGIC BUSINESS PLAN

COMMUNICATION PROMOTION PLAN

ADVERTISIN SALES PROMOTION PR DIRECT MARKETING

PROGRAMS AND BUDGET

REVIEW AND EVALUATE

Fig: Communication planning

Broadly speaking, marketing communications is a continuous interaction

Consider the following communication process

Source Encoding Message Decoding Receiver Response

SRAVAN KUMAR REDDY, DEPT OF MARKETING MANAGEMENT, FBE, WOLLEGA

Encoding It should be true to the contents of the communication

The process of arranging the message, in words and pictures

Message Once there is a choice, a channel or a channel mix that is

Attempts to interpret the message it is called decoding.

Feedback It completes the cycle of communication.

INTERPERSONAL Vs MASS COMMUNICATION

Marketing deals with interpersonal and mass communication .personal

Comparison between interpersonal and mass communication

SRAVAN KUMAR REDDY, DEPT OF MARKETING MANAGEMENT, FBE, WOLLEGA

Coat of reaching large audience high

Attention gathering High

Content clarity High

Accuracy of message low

Message flow traffic two-way

SOURCE: Promotional strategy by Engel, Warshaw and kinnear

PROMOTIONAL TOOLS AND CONSUMER RESPONSE:

AIDA is an acronym given to the stages a consumer passes before he buys

The stages are:

1. Attention: To get the attention of the consumer

SRAVAN KUMAR REDDY, DEPT OF MARKETING MANAGEMENT, FBE, WOLLEGA

3. Desire: to create desire for the product

4. Action: to motivate a consumer to buy the product.

This model is further elaborated to cover a number of more steps:

SRAVAN KUMAR REDDY, DEPT OF MARKETING MANAGEMENT, FBE, WOLLEGA

Outcome satisfaction level

Relationship of response models

We find the effects of different tools of promotion on hierarchy are

SRAVAN KUMAR REDDY, DEPT OF MARKETING MANAGEMENT, FBE, WOLLEGA

AWARENESS INTEREST DESIRE

Effect of promotional tools on consumer response

Advertising has the capacity to generate highest awareness. It is also

higher in arousing interest however; it is not so effective in leading the

consumer action .personal selling works exactly the opposite way. It is

however, low in generating awareness. Sales promotion is highest in

including action. Public relations and publicity are confined to creating

awareness and a low level of interest.

PROMOTION AND PRODUCT-LIFE-CYCLE

SRAVAN KUMAR REDDY, DEPT OF MARKETING MANAGEMENT, FBE, WOLLEGA

attain a plateau. The product is said to be in maturity stage .the product

then shows a decline in sales, as it becomes outdated. Product life cycle

objectives at each stage of product life cycle are different .consequently

following diagram illustrates this