Q1.some cities contend that the use of the percent-of-sales budgeting technique is illogical. Explain. A1.

Procedure used to set advertising budgets, based on a predetermined percentage of past sales or a forecast of future sales. This method of budget allocation is popular with advertisers because of its simplicity and its ability to relate advertising expenditures directly to sales. Management usually determines the budget's percentage figure, which is based on the industry average or the company's historical or previous year's advertising spending. For example, a firm expecting to do $50 million worth of business next year and choosing to allocate 5% of their sales to the advertising budget, would propose a $2.5 million advertising budget. A similar decision may be based on market share, with $2 million being allocated for every share point a brand holds. Many advertisers, however, shun this method because it is based on the theory that advertising results from sales, while the converse is true, that is, that sales result from advertising. In other words, advertisers feel that advertising communicates to prospective buyers the features and benefits of a product that are necessary to generate sales. In addition, the method does not recognize that as conditions change, advertising expenditures should change with them. Finally, using this method may erroneously lead to excessive spending for large established brands and inadequate budgeting for products that may profit from additional advertising, such as new or repositioned brands. Q2. Explain why it is extremely difficult to estimate sales-to-advertising response function. A2. It is always difficult to estimate sales-to-advertising response because advertisement not always increases the sales of the product. Advertisement is basically making aware of the product to the customer.some time it is very difficult to estimate sale because the methods used for the estimation may not be appropriate according to the data collected. Exp-RA ONE has been advertised like anything.it was indicating that the movie would find good response in every city but ultimately it was failed to attract customers after 3 day since it released. Q3.explain what are the strength and weakness of the sales promotion? A3. Strength of Sales Promotion Sales promotions have a significant effect on the behaviour of consumers and trades people. Such promotions can bring in more profits for the manufacturers because they permit price discrimination. 1. Price discrimination: Producers can introduce price discrimination through the use of sales promotions. They can charge different prices to different consumers and trade segments depending on how sensitive each segment is to particular prices.Coupons, special sales events, clearance sales and discounts are examples to explain the phenomenon. Often such price discrimination are offered in specific cities in the country,Bajaj Auto Ltd.

started the scheme on 20th august 2001, where by if you buy a Bajaj Spirit two-wheeler you get Rs.3000/- off, valid only in Ahmedabad. 2. Effect on consumer behaviour: As sales promotions are mostly announced for a short period, customers may feel a sense of urgency and stop comparing the alternatives. They are persuaded to act now rather than later.With every 500g pack of Tang, you get a free Tang glass. Offer valid only till stocks last. 3. Effect on trade behaviour: Short-term promotions present an opportunity and encourage dealers to forward buy. This forward buying ensures that retailers wont to go out of stocks. As dealers have more than the normal stocks, they think it advisable to advertise in local media, arranged displays and offer attractive promotion deals to consumers. These actions help in increasing the store traffic. Buy 2 dozen shampoo sachets & get 2 sachets free. 4. Regional Differences: The South is generally characterised by greater degree of going out and people tend to drink outside the house. The Tamilian, consumer in particular, is value oriented, rational and looks up to film stars, while the Keralite is more international in his outlook. The Bangalorean is as Cosmopolitan as his Mumbai or Delhi counterpart. Such factors have to be taken into consideration while providing incentives to the customers. In mid 80s, Philips decided to launch a special project in Tamil Nadu and Andhra Pradesh for their rural buyers. So, for the Tamil Nadu market, they created a special campaign The Super Star of the House and made the cine idol Rajnikant their brand ambassador as in that state he is popularly known as Superstar. Whereas, in Andhra Pradesh, they launched their brand as Mega Star of the House as Chiranjeevi was taken as their brand representative. Sales promotion was done by organizing various super shows and mega-shows for the masses in states of Tamil Nadu and Andhra Pradesh respectively. Both these campaigns became a majorsuccess. weaknesses of Sales Promotion While sales promotion is a powerful and effective method to produce immediate short term positive results, it is not a cure for a bad product or bad advertising. In fact, a promotion is speed up the killing of a bad product.

1. Increased price sensitivity Consumers wait for the promotion deals to be announced and then purchase the product. This is true even for brands where brand loyalty exists. Customers wait and time their purchases to coincide with promotional offers on their preferred brands. Thus, the routine sales at the market price are lost and the profit margin is reduced because of the discounts to be offered during saleseason. The Diwali Bonanza Offers on electronic goods. 2. Quality image may become tarnished: If the promotions in a product category have been rare, the promotions could have a negative effect about its quality image. Consumers may start suspecting that perhaps the product has not been selling well, the quality of the product is true compared to the price or the product is likely to be discontinued because it has become outdated.

The Smyle Powder offer of Buy 1 and get 2 free went on and on. Ultimately people stopped asking for the product as the on-going sales promotion strategy made the customers perceive it to be a cheap and an inferior product. 3. Merchandising support from dealers is doubtful: In many cases, the dealers do not cooperate in providing the merchandising support nor do they pass on any benefit to consumers. The retailer might not be willing to give support because he does not have the place, or the product does not sell much in his shop, or may be he thinks the effort required is more than the commission/benefit derived. 4. Short-term orientation: Sales promotions are generally for a short duration. This gives a boost to sales for a short period. This short-term orientation may sometimes have negative effects on long-term future of the organization. Promotions mostly build short-term sales volume, which is difficult to maintain. Heavy use of sales promotion, in certain product categories, may be responsible for causing brand quality image dilution.

Q4. What does it mean when we say that advertising is intended to personate? How different ads personate in different ways? A4. No matter what your advertising medium, drive your message home by making it personal. Because nobody wants to buy a product from someone who sounds stuffy and unfriendly. Write in First Person Let's say you're in real estate. You're running a print ad for an exclusive neighborhood. Tell your customer the benefits of living there as if you're having a one-on-one conversation. For example, the body of your copy could read:You won't have to mow the lawn ever again! All of our properties are right on the beach. A breathtaking view without the hassles of yard work make Grand Island the place you'll want to call home Use Contractions As you've probably noticed, all advertising articles here on the About network contain a lot of contractions. How many I ams and you ares, pluswe wills would you like to read over and over? It's all a part of making it personal. We're just having a friendly conversation about advertising. Limit Your Commas It's similar to the contractions rule. Commas everywhere really distract your eye. Your message gets lost because your reader is trying to make sense out of your sentence. Keep your sentences short enough that you don't require a lot of commas. And, But, Because You probably learned back in elementary school that you can't use And, But or Because to start a sentence. Your teachers lied to you. It's perfectly all right to use them to begin a sentence. Ask your old teacher. She'll probably confess. You were taught that because they didn't want you to make incomplete sentences by using And, But or Because to start a sentence. And if she doesn't confess - just remember - it's advertising so anything goes! Eliminate the Pressure Just pretend you're talking to a friend. One way to make it easier on yourself might be to just forget it.

That's right. Forget that you're writing an ad, your company needs this ad to be successful, etc. Throw out all the pressures and sit down with your computer or legal pad and pen. Now, write a letter to a friend. Tell your friend about your product. When you're finished, you'll have a lot of copy blocks you can extract and use in your ad. It's a great mental trick that can help in a pinch. .Q.5 what is the roles of media palnning and media scheduling in the success of advertising compaign of a product? Justify your answer using some examples? A .5 Media planning is generally the task of a media agency and entails finding the most appropriate media platforms for a client's brand or product. The job of media planning involves several areas of expertise that the media planner uses to determine what the best combination of media is to achieve the given marketing campaign objectives. In the process of planning the media planner needs to answer questions such as: 1. How many of the audience can I reach through different media? 2. On which media (and ad vehicles) should I place ads? 3. Which frequency should I select? 4. How much money should be spent in each medium? MEDIA SCHEDULING This involves the scheduling and timing of advertisement. The schedule shows the number of advertisements that are to appear in each medium, the size of the advertisements, and the date on which they are to appear. There are many ways of scheduling any advertising programme. No single way can be said to be best for all advertisers. Each advertiser must prepare a specific schedule most suitable for its market and its advertising objectives Q.6 advertising is said to be an investment is the brand equity bank but only if the advertising is strong.explain? A.6 Relationship between Advertising and Brand Equity Advertising expenditure, as the main marketing communications tool in the consumer market, should be considered when determining the effects of marketing communications on consumers, and the perceptions that the messages are provoking among different target individuals (Angel and Manuel, 2005). Keller (2003) notes that the firms marketing communications contribute to brand equity. That is, effective communication enables the formations of brand awareness and a positive brand image. When consumers perceive high spending on advertising, this contributes to their perception of the level of confidence that marketing managers have in the product (Kirmani and Wright, 1989). Perceived advertising spending has positive effects, not only on brand equity as a whole, but also on each of the elements it is made up of: loyalty, awareness, perceived quality and brand associations.

Advertising Brand equity Price promotion

Perceived quality Brand loyalty Brand awareness Brand associations

Product category
Search product Experience product

Q7.one requirement for effective advertising is the ability to break through competitive clutter.explain what this means and provide examples of advertising methods that successfully accomplish this. A.7Major Methods of Advertising (Repeatedly Getting Message Out) Brochures or flyers -- Many desk-top publishing and word-processing software packages can produce highly attractive tri-fold (an 8.5 inch by 11-inch sheet folded in thirds) brochures. Brochures can contain a great deal of information if designed well, and are becoming a common method of advertising. (See Writing Brochures.) Direct mail -- Mail sent directly from you to your customers can be highly customized to suit their nature and needs. You may want to build a mailing list of your current and desired customers. Collect addresses from customers by noticing addresses on their checks, asking them to fill out information cards, etc. Keep the list online and up-to-date. Mailing lists can quickly become out-of-date. Notice mailings that get returned to you. This should be used carefully and it can incur substantial cost, you don't want to inundate your stakeholders with information so make the most of your message. (See Using Direct Mail and Mailing Lists.) E-mail messages -- These can be wonderful means to getting the word out about your business. Design your e-mail software to include a "signature line" at the end of each of your e-mail messages. Many e-mail software packages will automatically attach this signature line to your email, if you prefer. (See Netiquette - Techniques and styles of writing e-mail messages and Email vs. voice mail.) Magazines -- Magazines ads can get quite expensive. Find out if there's a magazine that focuses on your particular industry. If there is one, then the magazine can be very useful because it already focuses on your market and potential customers. Consider placing an ad or writing a

short article for the magazine. Contact a reporter to introduce yourself. Reporters are often on the look out for new stories and sources from which to collect quotes. (See Classifieds of Newspapers and Magazines.) Newsletters -- This can be powerful means to conveying the nature of your organization and its services. Consider using a consultant for the initial design and layout. Today's desktop publishing tools can generate very interesting newsletters quite inexpensively. (See Newsletters.) Newspapers (major) - Almost everyone reads the local, major newspaper(s). You can get your business in the newspaper by placing ads, writing a letter to the editor or working with a reporter to get a story written about your business. Advertising can get quite expensive. Newspaper are often quite useful in giving advice about what and how to advertise. Know when to advertise -this depends on the buying habits of your customers. (SeeClassifieds of Newspapers and Magazines.) Newspapers (neighborhood) -- Ironically, these are often forgotten in lieu of major newspapers, yet the neighborhood newspapers are often closest to the interests of the organization's stakeholders. (See Classifieds of Newspapers and Magazines.) Online discussion groups and chat groups -- As with e-mail, you can gain frequent exposure to yourself and your business by participating in online discussion groups and chat groups. Note, however, that many groups have strong groundrules against blatant advertising. When you join a group, always check with the moderator to understand what is appropriate. (See the groups listed on the right-hand side, Netiquette - Techniques and styles of writing e-mail messages and E-mail vs. voice mail.) Posters and bulletin boards -- Posters can be very powerful when placed where your customers will actually notice them. But think of how often you've actually noticed posters and bulletin boards yourself. Your best bet is to place the posters on bulletin boards and other places which your customers frequent, and always refresh your posters with new and colorful posters that will appear new to passers by. Note that some businesses and municipalities have regulations about the number of size of posters that can be placed in their areas. (See Signs and Displays.) Radio announcements -- A major advantage of radio ads is they are usually cheaper than television ads, and many people still listen to the radio, for example, when in their cars. Ads are usually sold on a package basis that considers the number of ads, the length of ads and when they are put on the air. . A major consideration with radio ads is to get them announced at the times that your potential customers are listening to the radio. (SeeAdvertising on Radio and T.V.) Telemarketing -- The use of telemarketing is on the rise. (See Telemarketing.) Television ads -- Many people don't even consider television ads because of the impression that the ads are very expensive. They are more expensive than most of major forms of advertising. However, with the increasing number of television networks and stations, businesses might find good deals for placing commercials or other forms of advertisements. Television ads usually are

priced with similar considerations to radio ads, that is, the number of ads, the length of ads and when they are put on the air. (See Advertising on Radio and T.V.) Web pages -- You probably would not have seen this means of advertising on a list of advertising methods if you had read a list even two years ago. Now, advertising and promotions on the World Wide Web are almost commonplace. Businesses are developing Web pages sometimes just to appear up-to-date. Using the Web for advertising requires certain equipment and expertise, including getting a computer, getting an Internet service provider, buying (usually renting) a Website name, designing and installing the Website graphics and other functions as needed (for example, an online store for e-commerce), promoting the Website (via various search engines, directories, etc.) and maintaining the Website. Yellow Pages --The Yellow Pages can be very effective advertising if your ads are well-placed in the directory's categories of services, and the name of your business is descriptive of your services and/or your ad stands out (for example, is bolded, in a large box on the page, etc.). The phone company will offer free advice about placing your ad in the Yellow Pages. They usually have special packages where you get a business phone line along with a certain number of ads. Q.8 How promotion is different from sales-promotion? Explain? A.8 Promotion is one of the four elements of marketing mix (product, price, promotion, place). It is the communication link between sellers and buyers for the purpose of influencing, informing, or persuading a potential buyer's purchasing decision.[1] The specification of five elements creates a promotional mix or promotional plan. These elements are personal selling, advertising, sales promotion, direct marketing, and publicity.[2] A promotional mix specifies how much attention to pay to each of the five subcategories, and how much money to budget for each. A promotional plan can have a wide range of objectives, including: sales increases, new product acceptance, creation of brand equity, positioning, competitive retaliations, or creation of a corporate image. Fundamentally, however there are three basic objectives of promotion. These are:[3] 1. To present information to consumers as well as others 2. To increase demand 3. To differentiate a product. There are different ways to promote a product in different areas of media. Promoters use internet advertisement, special events, endorsements, and newspapers to advertise their product. Many times with the purchase of a product there is an incentive like discounts, free items, or a contest. This is to increase the sales of a given product. The term "promotion" is usually an "in" expression used internally by the marketing company, but not normally to the public or the market - phrases like "special offer" are more common 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, andpublicity/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 contests, coupons, freebies, loss leaders, point of purchase displays, premiums,prizes, product samples, and rebates Sales promotions can be directed at either the customer, sales staff, or distribution channel members (such as retailers). Sales promotions targeted at theconsumer 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 gimmicks by many. Sales promotion includes several communications activities that attempt to provide added value or incentives to consumers, wholesalers, retailers, or other organizational customers to stimulate immediate sales. These efforts can attempt to stimulate product interest, trial, or purchase. Examples of devices used in sales promotion include coupons, samples, premiums, point-ofpurchase (POP) displays, contests, rebates, and sweepstakes

Q.9 Discuss in detail advertising planning and decision making process.Highlight the importance and specification of adverstising copy design. A.9An effective advertising plan is only one part of your overall marketing plan. Effective advertising and promotional materials are born from your strong marketing plan. You want everything integrated and working together. The better your marketing plan is, the more effective your advertising plan will be. 1. Marketing is probably your companys only source of income, and as such your marketing plan is probably the most important document you have. 2. Your marketing plan accurately describes your market, your customers, your products and services, and your competition. 3. Your marketing plan calculates the size or potential of your market. 4. Your marketing plan will help you to efficiently allocate money and resources. 5. Your marketing plan provides focus, guidance, and direction for effective advertising and business practices. 6. Your marketing plan positions your company in the marketplace. 7. Your marketing plan will help with proper customer management and retention. 8. Your marketing plan will define your communications strategy. It will help your entire company give a planned, clear, comprehensive, and consistent message to your customers, employees, investors, and business partners.

A strong marketing plan guides your advertising plan. You dont want to back into an overall marketing strategy based on your advertising plan. This doesnt mean you need a forty-page document about your marketing. But you absolutely need a clear, realistic picture of your business environment and of your customers. If you want great advertising, start with a solid marketing plan. Decision making process-Decision-making is one of the defining characteristics of leadership. Its core to the job description. Making decisions is what managers and leaders are paid to do. Yet, there isnt a day that goes by that you dont read something in the news or the business press that makes you wonder, What were they thinking? or Who actually made that decision? Thats probably always been the case, but it seems exponentially more so in the opening decade of the new millennium where everything seems marked with, too big, too fast, too much, and too soon. The reality seems to be that most organizations arent overrun by good decision makers, yet alone great ones. When asked, people dont easily point to what they regard as great decisions. Stories of bad decisions and bad decision-making come much more readily to mind. Some of that is due to our tendency to notice and recall exceptions vs. all the times things go as planned. For example, youve walked along side buildings more times than you could possibly count. Yet you remember vividly the one time you got nailed by a pigeon overhead. Thats how we are about bad decisions. Were also that way because the really bad ones tend to really hurt. Its not that people dont have the capacity to make high-quality decisions in them. Decisionmaking is a distinctly human activity. Its what that great, big frontal lobe is for. We all make decisions all the time. But the fact that were hard-wired to make decisions doesnt by itself make us good decisionmakers. That takes discipline: discipline to do at least four things all the time and well. Realize when and why you need to make a decision. Declare the decision: decide what the decision is, how youll work it, and who should be involved. Work the decision: generate a complete set of alternatives, gather the information you need to understand the possibilities and probabilities, and ultimately make a choice that best fits your values. Commit resources and act. Q.10 Throw light on some latest trends I sales promotion tools.justify your answer with few examples from white goods segment. A.10 Sales Promotion Trends: Customers Expectations Marketers who employ sales promotion as a key component in their promotional strategy should be aware of how the climate for these types of promotions is changing. For instance, the onslaught of sales promotion activity over the last several decades has eroded the value of the short-term requirement to act on sales promotions.

1. 2. 3.

4.

Sales Promotion Trends: Electronic Delivery Sales promotions are delivered to customers in many ways such as by mail, in-person or within print media. However, the Internet and mobile technologies, such as cellphones, present marketers with a number of new delivery options. For examples, the combination of mobile devices and geographic positioning technology will soon permit marketers to target promotions to a customers physical location. This will allow retailers and other businesses to issue sales promotions, such as electronic coupons, to a customers mobile device when they are near the location where the coupon can be used. sales Promotion Trends: Tracking As we discussed in our coverage of advertising, tracking customers response to marketers promotional activity is critical for measuring success of an advertisement. In sales promotion, tracking is also used. For instance, grocery retailers, whose customers are in possession of loyalty cards, have the ability to match customer sales data to coupon use. This information can then be sold to coupon marketers who may use the information to get a better picture of the buying patterns of those responding to the coupon. Q.11What are the principles of the DAGMAR approach? A.11 Term DAGMAR is an acronym that means "Defining Advertising Goals for Measured Advertising Results". DAGMAR advertising model was proposed by Russel H. Colley in 1961 According to DAGMAR, before purchase customer goes through 4 steps : 1. Awareness 2. Comprehension 3. Conviction 4. Action These steps are also known as ACCA advertising formula. ACCA/DAGMAR is an descendant of AIDA advertising formula and cosidered to be more popular and comprehensive than AIDA. According to DAGMAR the goals for an ad campaign should be established in such a way that it is possible to determine whether or not the goals have been met. DAGMAR has now increasingly become more popular and comprehensive than AIDA. DAGMAR steps are more defined and easy to apply. Term DAGMAR is an acronym for Defining Advertising Goals for Measured Advertising Results. According to DAGMAR, a sale must carry a potential customer through four stages: I. Awareness II. Comprehension III. Conviction IV. Action Suppose you are having a service or product and your customer knows nothing about the

product. As your client is unaware of the product, the first step is to make him aware of your product by posting advertisement regarding your product on respective websites. Comprehension is the second step of DAGMAR. Try to know the answers to these following questions. a)What is your product about? b)What are products potential features and benefits of product? c)What will your customer get from your product? And how? Answers to all these questions will help you to get a potential customer. Next stage is conviction and this is very important. Convince your customer by telling him the benefits of your product. After convincing, your next step starts i.e. action, which is not controlled by you. You have to depend on the customer. However, your previous actions will have a major role to play. If you have been able to convince, the customer ad have answered him satisfactorily and then you will definitely be the winner of the day. 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 consumerthrough four levels of understanding: from unawareness to Awareness the consumer must first be aware of a brand or company Comprehensionhe or she must have a comprehension of what the product is and its benefits; Convictionhe or she must arrive at the mental disposition or conviction to buys the brand; Actionfinally, he or she actually buy that product. Awareness Awareness of the existence of a product or organization is necessary before the purchase behavior 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.

Awareness grid

Involvement High Low

HIGH

Sustain current levels Refine ofawareness awareness

Awareness Build awarenessquickly. Create association of awareness of product with product class need

LOW

ntroduction DAGMAR is Defining Advertising Goals for Measured AdvertisingResults. It is basically an approach to advertising planning and a precise method for selecting and quantifying goals and for using those goals to measure performance. An advertising objective involves a communication task, intended to create awareness, impart information, develop attitudes or induce action. In the DAGMAR approach, the communication task is based on a specific model of the communication process, as shown below.

Communication Process in DAGMAR Approach The model suggests that before the acceptance of a product by an individual, there is a series of mental steps which the individual goes through. At some point of time, the individual will be unaware of the product or offer in the market. The initial communication task of the advertising activity is to increase consumer awareness of the product or offer. The second step of the communication process is comprehension of the product or offer and involves the target audience learning something about the product or offer. What are its specific characteristics and appeals, including associatied imagery and feelings? In what way does it differ from its competitors? Whom is it supposed to benefit? The third step is the attitude (or conviction) step and intervenes between comprenension and final action. The action phase involves some overt move on the part of the buyer such as trying a brand for the first time, visiting a showroom, or requesting information. The whole communication process is a bit more complex. And under different circumstances, it may differ slightly, but the the basic concept revolves around what is mentioned in the paragraphs above. The DAGMAR approach emphasises the communication task of advertising. The second important concept of the approach is that the advertising goal be specific. It should be a written, measurable task involving a starting point, a defined audience, and a fixed time period.

Q.12 What do you mean by ethical aspects of adversting?explain. A.17 ETHICS IN ADVERTISING INTRODUCTION 1. The importance of advertising is "steadily on the increase in modern society."1 That observation, made by this Pontifical Council a quarter century ago as part of an overview of the state of communications, is even more true now. Just as the media of social communication themselves have enormous influence everywhere, so advertising, using media as its vehicle, is a pervasive, powerful force shaping attitudes and behavior in today's world. Especially since the Second Vatican Council, the Church has frequently addressed the question of the media and their role and responsibilities.2 She has sought to do so in a fundamentally positive manner, viewing the media as "gifts of God" which, in accordance with his providential design, bring people together and "help them to cooperate with his plan for their salvation."3 In doing so, the Church stresses the responsibility of media to contribute to the authentic, integral development of persons and to foster the well being of society. "The information provided by the media is at the service of the common good. Society has a right to information based on truth, freedom, justice and solidarity."4 It is in this spirit that the Church enters into dialogue with communicators. At the same time, she also calls attention to moral principles and norms relevant to social communications, as to other forms of human endeavor, while criticizing policies and practices that offend against these standards. Here and there in the growing body of literature arising from the Church's consideration of media, the subject of advertising is discussed.5 Now, prompted by the increasing importance of advertising and by requests for a more extensive treatment, we turn again to this topic. We wish to call attention to positive contributions that advertising can and does make; to note ethical and moral problems that advertising can and does raise; to point to moral principles that apply to this field; and, finally, to suggest certain steps for the consideration of those professionally involved in advertising, as well as for others in the private sector, including the churches, and for public officials. Our reason for addressing these matters is simple. In today's society, advertising has a profound impact on how people understand life, the world and themselves, especially in regard to their values and their ways of choosing and behaving. These are matters about which the Church is and must be deeply and sincerely concerned. 2. The field of advertising is extremely broad and diverse. In general terms, of course, an advertisement is simply a public notice meant to convey information and invite patronage or

some other response. As that suggests, advertising has two basic purposes: to inform and to persuade, and while these purposes are distinguishable both very often are simultaneously present. Advertising is not the same as marketing (the complex of commercial functions involved in transferring goods from producers and consumers) or public relations (the systematic effort to create a favorable public impression or ?image' of some person, group, or entity). In many cases, though, it is a technique or instrument employed by one or both of these. Advertising can be very simple a local, even ?neighborhood,' phenomenon or it can be very complex, involving sophisticated research and multimedia campaigns that span the globe. It differs according to its intended audience, so that, for example, advertising aimed at children raises some technical and moral issues significantly different from those raised by advertising aimed at competent adults. Not only are many different media and techniques employed in advertising; advertising itself is of several different kinds: commercial advertising for products and services; public service advertising on behalf of various institutions, programs, and causes; and a phenomenon of growing importance today political advertising in the interests of parties and candidates. Making allowance for the differences among the different kinds and methods of advertising, we intend what follows to be applicable to them all. 3. We disagree with the assertion that advertising simply mirrors the attitudes and values of the surrounding culture. No doubt advertising, like the media of social communications in general, does act as a mirror. But, also like media in general, it is a mirror that helps shape the reality it reflects, and sometimes it presents a distorted image of reality. Advertisers are selective about the values and attitudes to be fostered and encouraged, promoting some while ignoring others. This selectivity gives the lie to the notion that advertising does no more than reflect the surrounding culture. For example, the absence from advertising of certain racial and ethnic groups in some multi-racial or multi-ethnic societies can help to create problems of image and identity, especially among those neglected, and the almost inevitable impression in commercial advertising that an abundance of possessions leads to happiness and fulfillment can be both misleading and frustrating. Advertising also has an indirect but powerful impact on society through its influence on media. Many publications and broadcasting operations depend on advertising revenue for survival. This often is true of religious media as well as commercial media. For their part, advertisers naturally seek to reach audiences; and the media, striving to deliver audiences to advertisers, must shape their content so to attract audiences of the size and demographic composition sought. This economic dependency of media and the power it confers upon advertisers carries with it serious responsibilities for both.

Q.13 Discuss the importance of the concept of product-placement, tie-ups & co-branding for promoting the product in low involvement category. A.13 Product placement, or embedded marketing is a form of advertisement, where branded goods or services are placed in a context usually devoid of ads, such as movies, music videos, the story line of television shows, or news programs. The product placement is often not disclosed at the time that the good or service is featured. Product placement became common in the 1990s, until the ramifications of product placement were clearly understood. In April 2006, Broadcasting & Cable reported, "Two thirds of advertisers employ 'branded entertainment'product placementwith the vast majority of that (80%) in commercial TV programming." The story, based on a survey by the Association of National Advertisers, said "Reasons for using in-show plugs varied from 'stronger emotional connection' to better dovetailing with relevant content, to targeting a specific group.

Co-branding refers to several different marketing arrangements: Co-branding, also called brand partnership, is when two companies form an alliance to work together, creating marketing synergy. As described in Co-Branding: The Science of Alliance: "the term 'co-branding' is relatively new to the business vocabulary and is used to encompass a wide range of marketing activity involving the use of two (and sometimes more) brands. Thus co-branding could be considered to include sponsorships, where Marlboro lends it name to Ferrari or accountants Ernst and Young support the Monet exhibition."

Co-branding is an arrangement that associates a single product or service with more than one brand name, or otherwise associates a product with someone other than the principal producer. The typical co-branding agreement involves two or more companies acting in cooperation to associate any of various logos, color schemes, or brand identifiers to a specific product that is contractually designated for this purpose. The object for this is to combine the strength of two brands, in order to increase the premium consumers are willing to pay, make the product or service more resistant to copying by private label manufacturers, or to combine the different perceived properties associated with these brands with a single product.

SUBMITTED TOMANASWINI ACHARYA

SUBMITTED BYLALIT SINGLA

MBA 3RD TERM 100251040 (roll no) Nov 15, 2011

SHARDA UNIVERSITY

Q.14 Discuss the significance of novelty of idea in brand building efforts. What is the role of message strategy in this connection?. Why paint companis are ramping up their brand-building activities? A.14
What is a message strategy?
The message strategy is like a foundation for all your marketing. It needs to be strong or your marketing efforts will fall apart. Your message strategy consists of a positioning statement and three support points. They address key target market problems by stating a benefit; i.e. why the target market should care about your product, service or company. A message strategy can be extremely detailed and is like a recipe for all marketing communication. Follow the recipe and you get a good dish. Ah story! Your message strategy makes it easier to deliver the same message across all marketing media including Web sites, brochures, advertisements and presentations to investors, industry analysts and prospects. Consistent execution of the same message is a critical factor in successful marketing. Messages that Matter uses a formal, systematic methodology to help you develop the right message strategy; one that communicates a benefit and can adapt to all marketing communications - brochures, product descriptions, Web sites, sales presentations public relations and advertisements