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ASM (MB-904)


Maximum Marks

Mid Semester Tests

Attendance Class Tests Assignments

6 4 6



MM_MB 204_Preeti Virdi

Title Foundations of Advertising Advertising and Sales Management


Publisher Himalaya Publishing House Kalyani Publishers

Chunawalla, Sethia C.N. Sonatakki

Advertising Management

Batra, Myers, Aaker

Pearson Publishers

Advertising Management

Manendra Mohan

Mc Graw Hill

MM_MB 204_Preeti Virdi


ASM (MB-904)

A shop wants to attract more customers or clear stocks, so it decides to offer special discounts for a period. It advertises in the daily newspapers to inform the public of its sale. A company brings out a new product which is much more economical than the existing ones in its category. If the company cannot advertise the product, it would never be able to enter the market. Any other form of communication would be long drawn out and uneconomical.
The Government wants corporate, businessmen and salaried people to pay taxes. It advertises in newspapers, radio and television to reach the target audience.
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Inform people about their products and services to make their brand names familiar to the public
To give the company a personality which sets it apart from the others. To remind customers about their brands at the right time and right place

To tell the public about improvements in products

To help their sales force to be more effective To reinforce customer confidence in his/her purchase
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the delivery of the most persuasive product message at the right time, in the right place, to the right person, at the lowest possible cost


ASM (MB-904)

Paid form of non-personal communication about an organization, product, service or idea from an identified sponsor, using mass media to persuade or influence an audience
The paid aspect of this definition reflects the fact that the space or time for an advertising message must be bought. The non-personal component means that advertising involves mass media (eg. TV, radio, magazines, newspapers) that can transmit a message to large groups of individuals, often at the same time.


ASM (MB-904)

The non-personal nature of advertising means that there is generally no opportunity for immediate feedback from the message recipient (except in direct response advertising) Therefore before the message is sent, the advertiser must consider how the audience will interpret and respond to the message
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(1) Paid (2) Non-personal Communication (3) from An Identified Sponsor (4) using Mass Media (5) to Persuade or Influence (6) an Audience.
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To differentiate itself from other offerings

To communicate information about the product to prospective customers

To persuade consumers to try new products and to suggest reuse To stimulate the distribution of a product and its usage To build brand preference and loyalty

To increase sales turnover

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To identify a product offering from many To get information regarding the product offering To act as a driving force in decision making To ensure better quality products at reasonable prices

To save consumers time To act as a catalyst for change

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Information to Consumers Brand Image building Reduction of risk of Innovation Growth of new media frontiers


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Uses advertising to send out a message about its products Initiates the advertising effort by identifying a marketing problem Approves audience, plan and budget Hires the advertising agency
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Has strategic and creative expertise, media knowledge, workforce talent, and negotiating abilities
Advertising department In-house agency

Key services rendered by the agency

Creation and development of advertisements Selection and placement of advertisements in the media


ASM (MB-904)


The channels of communication that carry the message to the audience Are usually companies or huge conglomerates

Mass media advertising can be cost effective because the costs are spread over the large number of people the ad reaches Combination of media channels for effective message
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Assist advertisers, agencies, and the media in creating and placing the ads

Vendor services are often cheaper than those in-house


ASM (MB-904)


The desired audience for the advertising message individuals and consumers

Data-gathering technology improves accuracy of information about customers Advertisers must recognize the various target audiences they are talking to and know as much about them as possible
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Elected officials pass laws that have a bearing on the Industry Officials issue rules and regulations that influence the behaviour of the media, advertisers, agencies directly and the consumers indirectly The courts of law establish the rules of behaviour through individual and organizational cases
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Advertising shall occur when:

The product possess unique, important features to

focus on Unique Selling Point (USP) The hidden qualities important to the buyers The general demand trend for the product is adequate The market potential for the product is adequate The competitive environment is favourable The organization is able and willing to spend the required money to launch an advertising campaign
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ASM (MB-904)


Advertising, can be used to address several broad objectives including:

Building product awareness,

Creating Interest,
Providing Information, Stimulating Demand and

Reinforcing the Brand.

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ASM (MB-904)


To inform: This type of advertising is heavily used in the

pioneering stage of a product category, where the aim is to build primary demand.

To Persuade: when the product is in the competitive stage,

where the companys objective is to build selective demand for a particular brand.

To Remind: when the product is in the maturity stage. They

are intended to remind people to purchase the brand.

To Reinforce: It seeks to ensure the buyers that they have

made the right choice by purchasing the brand.
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Launch of new product/service:- To inform consumers

about new product launching.

Expansion of market to new users:- To inform about

companys market expansion.

Announcement of product modification:- To inform

about product modification.

Announcement of dealers location:- To inform about

place where the product is available.
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Announcement of special offers:- To inform about

latest/special offers.

To educate the customers:- To tell about what are the

benefits from the product and how to use that.

To create social responsibility:- To make customer


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ASM (MB-904)