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ADVERTISING AND SALES PROMOTION UNIT I

INTRODUCTION
Adverting is only one element of the promotion mix, but it often consideredprominent in the overall marketing mix design. Its high visibility and pervasivenessmade it as an important social and encomia topic in Indian society. Promotion may be defined as the co -ordination of all seller initiated effortsto set up channels of information and persuasion to facilitate the scale of a good or service. Promotion is most often intended to be a supporting component in amarketing mix. Promotion decision must be integrated and co-ordinated with therest of the marketing mix, particularly product/brand decisions, so that it mayeffectively support an entire marketing mix strategy. The promotion mix consistsof four basic elements. They are: 1.Advertising 2.Personal Selling 3.Sales Promotion 4.Publicity

1.Advertising is the dissemination of information by nonpersonal meansthrough paid media where the source is the sponsoring organization. 2.Personal selling is the dissemination of information by nonpersonalmethods, like face-to-face, contacts between audience and employees of thesponsoring organization. The source of information is the sponsoringorganization. 3.Sales promotion is the dissemination of information through a wide varietyof activities other than personal selling, advertising and publicity whichstimulate consumer purchasing and dealer effectiveness. 4.Publicity is the disseminating of information by personal or non-personalmeans and is not directly paid by the organization and the organization isnot the source.

ORIGIN AND DEVELOPMENT OF ADVERTISING


It has been wrongly assumed that the advertising function is of recent origin.Evidences suggest that the Romans practiced advertising; but the earliest indicationof its use in this country dates back to the Middle Ages, when the use of the surname indicated a man s occupation. The next stage in the evolution of advertising was the use of signs as a visual expression of the tradesman s fu nctionand a means of locating the source of goods. This method is still in common use.The seller in primitive times relied upon

his loud voice to attract attentionand inform consumers of the availability of his services. If there were manycompetitors, he relied upon his own personal magnetism to attract attention to hismerchandise. Often it became necessary for him to resort to persuasion to pinpointthe advantages of his products. Thus, the seller was doing the complete promotionjob himself.Development of retail stores, made the traders to be more concerned aboutattracting business. Informing customers of the availability of supplies was highlyimportant. Some types of outside promotion were necessary. Signs on stores and inprominent places around the city and notices in printed matters were sometimesused

What is Included in Advertising?


1.The information in an advertisement should benefit the buyers. It shouldgive them a more satisfactory expenditure of their rupees. 2.It should suggest better solutions to their problems. 3.The content of the advertisement is within the control of the advertiser,not the medium. 4.Advertising without persuasion is ineffective. The advertisement thatfails to influence anyone, either immediately or in the future, is a wasteof money.

5.The function of advertising is to increase the profitable sales volume.That is, advertising expenses should not increase disproportionately

Advertising includes the following forms of messages


: The messages carried in1.Newspapers and magazines; 2.On radio and television broadcasts; 3.Circular of all kinds, (whether distributed by mail, by person,thorough tradesmen, or by inserts in packages); 4.Dealer help materials, 5.Window display and counter 6.display materials and efforts; 7.Store signs, motion pictures used for advertising, 8.Novelties bearing advertising messages and Signature of theadvertiser, 9.Label stags and other literature accompanying the merchandise

Importance of Advertising

Generally, advertising is a relatively low-cost method of conveying sellingmessages to numerous prospective customers. It can secure leads for salesmen andmiddlemen by convincing readers to request more information and by identifying 8outlets handling the product. It can force middlemen to stock the product bybuilding consumer interest. It can help train dealers salesmen in product uses andapplications. It can build dealer and consumer confidence in the company and itsproducts by building familiarity. Advertising is to stimulate market demand .While sometimes advertising alone may succeed in achieving buyeracceptance, preference, or even demand for the product, it is seldom solely reliedupon. Advertising is efficiently used with at least one other sales method, such aspersonal selling or pointof-purchase display, to directly move customers to buyingaction.Advertising has become increasingly important to business enterprises both large and small. Outlay on advertising certainly is the voucher. Non-businessenterprises have also recognized the importance of advertising. The attempt byarmy recruitment is bases on a substantial advertising campaign, stressing theadvantages of a military career. The health department popularizes family planningthrough advertising Labour organizations have also used advertising to make theirviewpoints known to the public at large. Advertising assumes real economicimportance too.

CLASSIFICATION AND TYPES OF ADVERTISING1. Product 1.Related Advertising a.Pioneering AdvertisingB. b.Competitive AdvertisingC. c.Retentive Advertising 2.Public Service Advertising 3.Functional Classificaiton a.Advertising Based on Demand Influence Level. a.Primary Demand (Stimulation) b.Selective Demand (Stimulation) b.Institutional Advertising c.Product Advertising A. Informative Product Advertising b.Persuasive Product AdvertisingC. Reminder-Oriented Product Advertising

4.Advertising based on Product Life Cycle a.Consumer Advertising b.Industrial Advertising 5.Trade Advertising a.Retail Advertising b.Wholesale Advertising 6.Advertising Based on Area of operation a.National advertising b.Local advertising c.Regional advertising 7.Advertising According to Medium Utilized

Public Service Advertising


This is directed at the social welfare of a community or a nation. Theeffectiveness of product service advertisements may be measured in terms of thegoodwill they generate in favour of the sponsoring organization. Advertisements onnot mixing drinking and driving are a good example of public

service advertising.In this type of advertising, the objective is to put across a message intended tochange attitudes or behaviour and benefit the public at largeThis is directed at the social welfare of a community or a nation. Theeffectiveness of product service advertisements may be measured in terms of thegoodwill they generate in favour of the sponsoring organization. Advertisements onnot mixing drinking and driving are a good example of public service advertising.In this type of advertising, the objective is to put across a message intended tochange attitudes or behaviour and benefit the public at large

. Advertising

Based on Demand Influence Level.

A. Primary Demand Stimulation Primary demand is demand for the product or service rather than for aparticular brand. It is intended to affect the demand for a type of product, and notthe brand of that product. Some advertise to stimulate primary demand. When aproduct is new, primary demand stimulation is appropriate. At this time, themarketer must inform consumers of the existence of the new item and convincethem of the benefits flowing from its use. When primary demand has beenstimulated and competitors have entered the market, the advertising strategy may beto stimulate the selective demand. B. Selective Demand Stimulation

This demand is for a particular brand such as Charminar cigarettes, Surf detergent powder, or Vimal fabrics. To establish a differential advantage and toacquire an acceptable sort of market, selective demand advertising is attempted. Itis not to stimulate the demand for the product or service. The advertiser attempts todifferentiate his brand and to increase the total amount of consumption of thatproduct. Competitive advertising stimulates selective demand. It may be of eitherthe direct or the indirect type. iii. Product Advertising Most advertising is product advertising, designed to promote the sale orreputation of a particular product or service that the organization sells. Indanes Cooking Gas is a case in point. The marketer may use such promotion to generateexposure attention, comprehension, attitude change or action for an offering. Itdeals with the non-personal selling of a particular good or service. It is of threetypes as follows:-A. Informative Product AdvertisingB. Persuasive Product AdvertisingC. Reminder-Oriented Product Advertising

B.Wholesale Advertising
Wholesalers are, generally, not advertising minded, either for themselves orfor their suppliers. They would benefit from adopting some of the image-makingtechniques used by retailers the need for developing an overall promotionalstrategy. They also need to make a greater use of supplier promotion materials andprogrammes in a way advantageous to them.

A. National advertising It is practiced by many firms in our country. It encourages the consumer tobuy their product wherever they are sold. Most national advertisements concentrateon the overall image and desirability of the product. The famous nationaladvertisers are: 1.TISCO 2.Jay Engineering 3.DCMITC 4.Hindustan Levers

Local advertising
Itis generally done by retailers rather than manufacturers. Theseadvertisements save the customer time and money by passing along specificinformation about products, prices, location, and so on. Retailer advertisementsusually provide specific goods sales during weekends in various sectors

Type of Media Outlets


While just a few years ago marketers needed to be aware of only a few mediaoutlets, today s marketers must be well -versed in a wide range of media options.The reason for the growing number of media outlets lies with advances incommunication technology, in particular, the Internet. As we discussed in theAdvertising Trends section in Part 13, the number of media outlets will continue togrow as new technologies emerge.

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Type of Media Outlets


While just a few years ago marketers needed to be aware of only a few media outlets, today s marketers must be well -versed in a wide range of media options.The reason for the growing number of media outlets lies with advances incommunication technology, in particular, the Internet. As we discussed in theAdvertising Trends section in Part 13, the number of media outlets will continue togrow as new technologies emerge. Next we provide an overview of 10 leading media outlets: 1. Television 2.radio 3.newspaper 4.intrenet 5. DirectMail 6. Signage 7. Product Placement 8. MobileDevices 9. Sponsorships 10. Others CONTROL BY GOVERNMENT

Control by the government is felt to be necessary to check deceptive,misleading, highly competitive and immoral advertising. The government is after allresponsible to see to it that there is no undesirable advertising. It has the power tocontrol it. It should exercise this power to protect the interests of consumers, smallbusinesses and other sections of society and to ensure that there is no deceptive andmisleading advertising. The content of advertisements has to be regulated by theGovernment. In India, regulations concerning advertising are limited. Only thepublic laws and Sale of Goods Act are employed to control advertising. The PenalCode and the Criminal Procedure Code have been used against deceivers andlawbreakers. The Consumers' Protection Act and other relevant laws have beenenacted to control objectionable advertising.

Brand Values For Non-Business Organisations


Most Of The Marketing Examples Are Generally Drawn From The BusinessSector. Starting In 1990s, There Has Been A Broadening Of Marketing To CoverAll Organisations. All Organisations Have Marketing Problems And NeedMarketing Skills. The Non-Profit And Public Sectors Account For More Than AQuarter Of The Indian Economy And Are In Great Need Of Management AndMarketing Skills.Many Non-Business Organisations College, Hospitals, Social ServiceOrganisations, Charities, Museums, Government Agencies, Trusts

AreExperiencing Difficult Times. They Are Losing Clients On The One Hand AndFinding It More Difficult To Raise Public And Private Funds On The Other Hand.