Académique Documents
Professionnel Documents
Culture Documents
TOTAL:45 PERIODS
TEXT BOOKS
1. Wells, Moriarty & Burnett, Advertising, Principles & Practice, Pearson Education
7th Edition, 2007.
2. Kenneth Clow. Donald Baack, Integrated Advertisements, Promotion and Marketing communication,
Prentice Hall of India, New Delhi, 2003.
REFERENCES
1. S. H. H. Kazmi and Satish K Batra, Advertising & Sales Promotion, Excel Books, New Delhi, 2001.
2. George E Belch and Michel A Belch, Advertising & Promotion, McGraw Hill, Singapore, 1998.
3. Julian Cummings, Sales Promotion, Kogan Page, London 1998.
4. E.Betch and Michael, Advertising and Promotion, McGraw Hill, 2003.
5. Jaishri Jefhwaney, Advertising Management, Oxford, 2008.
UNIT – I
1.1 Definition:
Communication
Means through which one person can pass information, ideas or feelings to another through
speech or pictures. Though, communication uses all senses like smell, touch, taste, sound &
sight, only two are useful in advertising i.e. Sound & Sight Sound: Radio, Television —
micro-sound chips in magazines. Sight: The most useful medium of communication like
print, i.e. “A picture is worth a thousand words”
Information
Information is knowledge, fact or news. It comes in different forms: Complete or Incomplete!
Biased or deceptive! what it is? What it looks like? How it works? What are its benefits
&drawbacks etc?
Paid For
If an advertisement is created, placed in the media so the cost to create and time or space in
the media must be paid for. This is the point, where advertising departs from Public
Relations.
Persuasive
Purpose of advertisement is to Identify & differentiate one product from another and to
persuade the customer for preferring one to another.
Identified Sponsors
Telling audience about the sponsors
Various Media
Like Newspapers, Magazines, Radio, TV, Billboards, hoardings, balloons… So “anything
which is used to communicate ideas from one person to another in non personal-way.”
1704 1st newspaper ad, seeking buyer for an Oyster Bay was published.
1843 1st Ad. Agency set up in Philadelphia
1882 Advertising of a soap brand was done with a huge budget of 11000 US$.
1893 A famous beverage brand was registered as a trade mark.
1899 J. Walters: 1st agency opens an office in U.K.
1923 1st entertainment program was sponsored by an advertiser.
1947 J .Walter Thompson 1st agency to cross 100Mil $ in billing.
1976 Indian commercial TV launched.
1978 1st TV commercial is launched.
1990 A new Medium Internet is born.
1993 5 million internet users get on line.
1999 Internet advertising breaks 2 Billion US$ mark
2003 TV show with built in advertising is planned.
ADVANTAGES
Advertising is one tool which can help a company to achieve goals. It is not the end, but a
means to reach the end. The functions of Advertising depend upon six Advertising objectives
1. To make product distinct from others.
2. To communicate information.
3. To push the customers.
4. To expand distribution.
5. To encourage brand preference.
6. To reduce sales cost.
Advertising has become a very demanding profession in this now very competitive world. In
this lecture we will explain various models to judge the response to various efforts. Besides
this we will also explain about advertising themes and the process required to get or develop
a unique and big idea along with key points for developing an advertising campaign..
3. Innovation-adoption model.
4. Information processing model.
b) AIDA model
The AIDA model Developed by E. K. Strong basically means draw / attract attention
Be interesting - Create desire - Initiate action
A I D A stands for:
A for Attention
I for Interest
D for Desire
A for Action
d) Innovation-adoption model.
PRACTICAL BENEFITS:
Economic Benefits: Generation of new jobs – Higher Incomes, comfortable & humane way
of living.
Political benefits: Significant contribution for informing people about candidates & the
party etc.
Cultural Benefits: Contributes positively in decisions about media content for betterment in
society
Moral & Religious Benefits: faith messages etc.
Deception in Advertising
The Subliminal Advertising Myth
The Effect of Advertising on Our Value System
The Proliferation of Advertising
The Use of Stereotypes in Advertising
Offensiveness in Advertising
She is at the centre of all advertisements in almost all media. Woman is an embodiment of
tradition & practically no ad is complete if emotional appeal is underscored without a woman
as she plays a pivotal role in the family. Woman is used to grab attention and stimulate desire
which advertiser wants to transform to product.
Why Ethics?
• Advertisements will not offend morality, decency and religious views / beliefs of the
viewers.
• Should not be directed towards any religious or political end.
• Should not endanger safety of children or create in them any interest in unhealthy practices.
• Indecent, vulgar, suggestive, repulsive or offensive treatment of themes shall be avoided.
“An independent organisation of creative and business people who specialise in the
development and preparation of advertising plans, advertisement and other promotional tools
and arrange for the purchase of advertising space and time in the various media”
Primary Services
1. Contact Department. Creation, sustaining an extension are the three basic functions of
the department. It gets new business and tires to continue the existing business. Accounts
Executive of the departments is the key man who acts as a liaison between the agency on the
one hand and the clients on the other.
2. Media Department. After making the advertisement plan, the agency selects the best
possible medium. It is choosing the channels o communication trough which to distribute the
advertising. The media analyst and estimators decide the approximate kind and number of
potential customers and then to choose the media that get the message to them.
3. Copy Department. The copy director coordinates the work of writing the copy with the
assistance of copy chief and copy writer. The advertisement copy is the heart of advertising
programme as it contains the message. Copy writing requires imagination, flair and fluency
in the language and then to choose the media that copy is the outcome of his interest, mood
and ability.
4. Art and Visualization Department. The art director heads this department. He is assisted
by artists, lay-out men and visualizers. Art director gets prepared visuals and lay-outs for
press advertisements, posters, calendars, printed bulletins, car cards and other out door
pieces. Some agencies hire the outside artiste. There should be close cooperation between the
department of art and copy as they supplement the work of each other.
5. Production Department. When a copy is ready the agency proceeds to its mechanical
production, agencies generally use out side units for these production services. The
production manager as to move to the typographers or type setters to have copy set in type,
later to the photoengraver for the illustrations. Finally he moves to the electro-typer for
electro-types mats or other duplicate material in such qualities as needed.
6. Finance Department. The accountants are responsible to maintain accounts, billing and
collecting the dues from the customers. The checking section verifies the production and
publicity of each individual case, may be press medium or outdoor or radio or television or
cinema etc. The aim is to see that such publicity is really helping the advertiser. It is
interested in realizing the goals of publishing whether the advertisement is to day or after a
couple of days or a week or a month.
7. Research Department. This section of the advertising agency is engaged in the study of h
effects of sales activities at the end of the point f distribution of a particular product.
Sometimes outside research organizations are employed to carry on such research as they are
more economical and reliable. The Research director takes the assistance of analyst,
investigators, marketing assistants clerks and librarians. All these persons are trained in
research work and are in a position to evaluate the information relating to the product.
8. public Relations Department. The birth, growth and survival of an advertising agency
depend very much on the public opinions, support and feelings it sis public opinion that
decides the destiny of the enterprises. The department establishes an maintains mutual
understanding between the organisation an the public. Public relations approach is the
product of publicists an advertising men. The department is headed by the Public relations
Director who a to struggle hard to have always high opinion about the firm. Once the image
is lost the whole business comes to a standstill.
1. Timely and Satisfactory work. Agency is highly specialized in the field of publicity.
It has wider contacts with media owners that facilitates the entering of contacts both
for space and time. It employs experts and veterans in the field of advertising like
photographers, lithographers, block makers, painters, artists, painters, actors singers,
announcers who re fully and timely tapped by the agency director. With such ready
made and deliberate facilities, the quality of advertisement improves to a greater
extent and guarantees timely presentations.
undertake the work which is ticklish and bothersome. The advertising programme is
designed at economical terms by the agents with all the benefits of carefreeness.
3. Sound appropriation of Funds. Agency being the proof of expert is fully aware of
the cost of each media: as such it is able to allocate the available funds on various
items in publicity budgets. This results into net resource allowance allocation and
utilisation. Thus the common advertiser may misapply the funds to his disadvantage
due to the lack of through knowledge. Where as agency does it most appropriately in
pragmatic way to have best results.
(i) Space Broker Stage. About 1840 several people worked as sales representative. They
acted as simple agents to sell space in newspapers on commission basis. But after sometime
they used to take full pages and sold position of it to whatever price they would get from
advertisers. This was known as 'Space broker Stage' in modern advertising agency system.
Thus price cut was seen from advertisers. There was inefficiency in business.
(ii) Standard Service Stage. The agent bought the space by 1876 an got it on printed rates of
the newspapers. Thus the agent was not the seller of space buy became buyer for them from
the newspapers. They charged the advertisers for copy writing, art work, layout, media
selection and research. By 1900 advertising agencies envolved. It began to solve clients
problems. They contracted the magazines. The recognised agencies were given commission by
the newspapers. Advertisers were not allowed to put direct advertising to papers.
(iii) Marketing Agencies Stage. Advertising agencies grew with the industrial expansion.
About 1958 agencies gave different and highly skilled services to the clients and it was highly
used in marketing mix. Thus advertising agencies entered the marketing service stage and
Agency Commissions
1. Set goals.
2. Select process and criteria.
3. Screen initial list of applicants.
4. Request client references.
5. Reduce list to 2-3 viable agencies.
6. Request creative pitch.
Choosing an Advertising Agency-Factors
Work with the agency that handles the advertising in the firm’s home
market.
Pick a purely local agency in the foreign market.
Choose the local office of a large international agency.
Select an international network of ad agencies that spans the globe.
Evaluation Criteria In Selecting Advertising Agency
Size of agency
Relevant experience
Conflicts of interest
Product capabilities
Media purchasing capabilities
Client retention rates
Personal chemistry
Market coverage
Quality of coverage
Expertise with developing a central international campaign
Creative reputation
Scope and quality of support services
Desirable image (“global” versus “local”)
Conflicting accounts
Other services availability
S.Waltson Dunn
Repurchase/
Regular
Setting Advertising Objectives /Use
DAGMAR Approach
60 % Knowledge / Comprehension
Specific Task
Concrete , Measurable Tasks
Target audience
Bench Mark & Degree Of Change Sought
Specified time period
UNIT – II
2.1 MEDIA
It refers to the general category of delivery systems available to carry advertising message to
a selected audience such as print, broadcast , outdoor etc.
It is also a series of decisions made to answer the question, "What are the best means
of delivering advertisements to prospective purchasers of a brand or service?"
Refers to a series of decisions that need to taken in delivering the ad message to the
largest numbers of the target audience in the most effective manner at the lowest cost
Some specific questions are
• Mobility:
The media should be in a position to carry the message across to where ever desired. In this
regard the best example are newspaper and magazines which can be red and carried almost
everywhere i.e. in the house while traveling at the place of work or library etc.
• Results assessable:
Basically it is the effort of evaluation which is possible by dividing the cost of space by the
number of replies received.
Marketing Factors
Brand history
Brand share
Brand loyalty
Purchase cycles
Usage cycle
Competitive Share of voice
Target group
Media Factors
Clutter
Editorial environment
Attentiveness
Scheduling
Number of media used
Repeat exposures
Milline Rate
Is the cost in rupees per line of standard dimensions to reach a newspaper circulation
of one million. Alternately to calculate the cost of space, rupees, per square inch, or
square centimeter is used for media buying. Newspaper with higher circulation
figures charge more per line or per unit space.
Media Scheduling
Once the media has been selected , it is necessary to determine the timing and
allocation of advertising insertion.
It concern answering such questions as
How many of each media vehicles space and time units be bought?
Over what time units, this will be bought?
Over what time units, should such buying be ?
I Continuity
This model is primarily for non-seasonal products, yet sometimes for seasonal products.
Advertising runs steadily with little variation over the campaign period. There may be short
gaps at regular intervals and also long gaps—for instance, one ad every week for 52 weeks,
and then a pause. This pattern of advertising is prevalent in service and packaged goods that
require continuous reinforcement on the audience for top of mind recollection at point of
purchase.
Advantages:
Works as a reminder Covers the entire purchase cycle Cost efficiencies in the form of large
media discounts Positioning advantages within media Program or plan that identifies the
media channels used in an advertising campaign, and specifies insertion or broadcast dates,
positions, and duration of the messages.
In media scheduling for seasonal product categories, flighting involves intermittent and
irregular periods of advertising, alternating with shorter periods of no advertising at all. For
instance, all of 2000 Target Rating Poinered in a single month, "going dark" for the rest of
the year. Halloween costumes are rarely purchased all year except during the months of
September and October.
Advantages:
Advertisers buy heavier weight than competitors for a relatively shorter period of time
Little waste, since advertising concentrates on the best purchasing cycle period
Series of commercials appear as a unified campaign on different media vehicles
III Pulsing
Pulsing combines flighting and continuous scheduling by using a low advertising level all
year round and heavy advertising during peak selling periods. Product categories that are sold
year round but experience a surge in sales at intermittent periods are good candidates for
pulsing. For instance, under-arm deodorants, sell all year, but more in summer months.
Advantages:
Covers different market situations
Advantages of both continuity and flighting possible
Types Of Scheduling
Steady Pulse
Eg one ad per week for 52 weeks
Seasonal Pulse
Eg A/C For summer seasons
Period Pulse
At regular intervals but not related to the seasons.
Start up pulse;
Heavy media scheduling for new product
Promotional pulse:
Suits for particular promotional theme of a company.
Erratic Pulse:
Advertising is spaced at irregular intervals.
IV Direct Response
Mailers as letters
Mailers as pamphlets
Telemarketing
V Outdoor Media
Posters
Hoardings
Wall painting
Neon Signs
Sky Advertising
VI Vehicular Media
Mainline Trains
Sub Urban Trains
Buses & trams
Taxis & Auto Rickshaws
Private Vehicles
I NEWSPAPERS
Advantages
Flexibility:
• advertising space from 1 inch to multiple pages can be used.
• ads can be scheduled on any day of the week.
• ads can be prepared on very short notice.
Range Of Market Coverage
Provide geographical flexibility.
Competitive Advantage:
Relatively cheap as against other media.
Positive Consumer Attitudes:
High reader interest & approx 80% coverage.
Interaction Of National & Local:
Provide a bridge between the national advertiser and the local retailer.
Disadvantages
Despite being very useful medium for advertising it has certain disadvantages which should
be kept in mind and are as under:
1. No Audience Selection: Does not provide audience selectivity.
2. High waste circulation: makes them too expensive on national basis.
3. Short life Span: unlikely to be put aside and read later like magazine.
4. Poor reproduction: generally poor color reproduction.
II MAGAZINES
Advantages
Target Audience:
The magazines can reach specialized audiences and thereby prove very useful e.g.
magazines like men’s health target men’s for their health and women magazines target
women.
Audience Receptivity:
Magazines have a very high level of audience receptivity such as an ad in fortune magazine
would impress business audience.
Long life Span:
Magazines have longest life span of all the media because some of them might never be
discarded like National Geographic magazine etc. moreover these have highest reach
potential as they are past along to family friends customers and colleagues.
Format:
Generally, the magazines format allows creative advertising variety through multiple pages
inserts and other features.
Visual Quality:
The production quality has become excellent being printed on top class paper and with very
good reproduction quality.
Sales promotions:
Advertisers can use magazines to distribute various sales promotions like coupons, samples
and information cards etc.
Disadvantages:
Magazines are limited by certain factors and the most prominent disadvantages as are given
and explain below:
Limited distribution: In view of the magazines having limited distribution they lack
penetration, thus selectivity of the medium is lost.
Lack of immediacy:
Advertisements may take long time to have an effect on the reader because some readers may
not look at an issue of a magazine until after it comes to them so the ad may take long time to
have an effect on the reader.
Limited flexibility:
Despite magazines offering advertisers many benefits long leave time and limited flexibility
are drawbacks there is closing dates often 2 to 3 months prior to the date of issue.
High cost:
The production costs for magazines are relatively high because of high quality color
production.
III TELEVISION
Advantages
Creativity and Impact:
The greatest advantage of TV is the opportunity it provides for presenting the advertising
message, the blend of sight and sound offers tremendous creative flexibility and resultantly
making deep impact.
Coverage and cost effectiveness:
Television advertising makes it possible to reach large audience nearly everyone regardless
of age, gender, income or educational level watches TV at least for sometime. In view of the
large coverage of its telecast makes it more effective both for advertising and cost
effectiveness.
Captivity and attention:
The combined power of site, sound, motion and emotion creates a very good effect
Selectivity and flexibility:
Limitations:
IV RADIO
Advantages:
• Low cost option.
• Definable target markets based on their format.
• Radio stations offer considerable flexibility & a short lead time.
• Intimacy like FM stations etc, liking to presenters, DJ’s etc.
• Mobile: Its portability makes it mobile and can be taken anywhere.
Disadvantages:
Radio has its disadvantages too which are given below:
• Short exposure time: Radio advertisements normally last only 15 or 30 seconds and
listeners busy with other activities may not register them.
• Target duplication: Several radio stations may try to reach the same target market and
advertising on all of them may not be financially feasible yet reaching everyone in that
target market may not be possible unless all stations are used.
• Overloading of ads: Normally too much information is put in one add thus overloading
the consumer mind and very little is retain.
• Loyal listenership: Radio stations have loyal listener who do not prefer to listen to other
stations.
V CABLE TV :
Advantages
• Can buy time on programs for specific audiences
• Cost is lower than normal TV.
• Production costs more affordable.
• More innovative production people available.
• Message reach assured
Limitations:
There are various disadvantages of cable TV which limit its benefits these are appended
below:
• Limited or small Reach.
• May have less experienced production crew.
• Reaching specific customers, but not potential customers.
• Audience may be fragmented and viewers may stay with a program for a shorter period of
time.
VI TRANSIT ADVERTISING
Advantages
• Exposure to one ad can be long if inside a transit vehicle.
• Frequency.
• Ads outside the transit vehicle are seen by large & diverse audiences.
• Ad message can be timely.
• Method tends to be quite inexpensive.
• Ads could be somewhat lifestyle targeted – passing through specific neighborhoods.
Disadvantages
• Ad design is usually limited to size of space.
• People on mass transit are not generally in a receptive mood.
• Transit ads are hard to target.
• Surroundings may distract from the message.
• Mass transit environment may not suit Message.
Disadvantages
• Hard to reach specific audience.
• Creativity inhibited by space limitations.
IX INTERNET MEDIA
Advantages:
● Fast growing
● Ability to reach narrow target audience
● Short lead time
● Moderate cost
Disadvantages:
● Difficult to measure ad effectiveness and ROI
● Ad exposure relies on “click through”
● Not all consumers have access to internet
X OUTDOOR MEDIA
Advantages:
● High exposure frequency
● Moderate cost
● Flexibility
● Geographic selectivity
● Broad, diverse market
Disadvantages:
● Short message
● Lack of demographic selectivity
XI ONLINE ADVERTISING
Button Ads:
Squarish Ads that are usually at the bottom of a web page & contain only a corporate
name of brand.
Click Through or Click Rate:
How often a viewer responds to an ad by clicking on it.
Cookies:
Information stored on a viewer’s web browser to help identify that particular person to
the web provider – the next time that viewer visits a particular site.
Cost per Click:
The rate charges to advertisers if the user responds to a displayed ad.
Cost per Lead/Sale:
The rate charged to advertisers if the user responds with personal information.
Impressions:
The total number of times an ad is displayed on a web page – different than hits.
Sponsorships, or Co –Branded Ads:
Integrating companies brands & products on web sites.
Ad Views:
Number of times an ad banner is down loaded.
Banner:
Ad on Web site hot linked to advertiser’s site.
Interstitial:
An ad that appears in a window on your screen while waiting for web page to load.
Rich Media:
Special effect technology like streaming video, audio used for internet ads etc.
JAVA: It is extensively used in internet media for applets, graphics & other interactive
applications.
HTML: Hyper text markup language is very useful tool in creating web pages.
ASP & JSP: Active server pages & Java server pages –latest technology for interactive web
pages.
UNIT – III
National
Offers a product or service to the general consumer audience across the country Eg
IBM
Local:
Firms may like to restrict their business to a very small geographical area – state or a
region. Eg Jewellery, Retail Chain
Global:
MNC Advertisement for all the countries where the product is selling with minor
differences with culture & legal factors. Eg Nestle,
Institutional /Corporate
Aims by institutions to build up image of itself in the public mind.
Pioneering - Information new products
Image Building – Reinforce, create
Advocacy –Communicate a view on issue
Eg Bajaj , Shakthi Masala, Tata,
IV Product Basis
Pioneering – Explain new product
Competitive – compare competition
Remind/ Reinforce -– remind, reinforce, encourage repeat purchase
VI APPEAL – BASIS
Rational - Aims to provide information , it explains the consumer benefits rather
than product features. Eg Aquaguard
Emotional - Fear, Humor, Sex advertisements. Eg Deebeers, ICICI Prudential,
Slice,
Celebrity Advertisements
Use of celebrity spokespeople for products. It build brand equity but can hurt brand if
celebrity is hit by scandal.
Surrogate Advertising
It is prominently seen in cases where advertising a particular product is banned by law.
Eg Kingfisher beer brands
Covert Advertising
A product or a particular brand is incorporated in some entertainment and media
channels like movies, television shows or even sports.
Advertising Creativity
Stages Of Creativity
Preparation Stage;
The creative people immerse himself or herself in the problem. At this stage the
writer gathers the raw material that will become the substance the should exist in the mind of
creative person in the form of previous experience.
relationship that is the foundation of an idea. At this stage writer reaches the point of
exhaustion and hopelessness.
Incubation Stage:
At this stage writer puts the problem out of his mind and turn it over the unconscious
mind to work on while he or she turns to something else. It is often referred to as day
dreaming.
Illumination Stage:
At the stage when the individual least expects it, a new idea will appear as if out of
nowhere. It is the stage of creative the process that most people associate with the creative
act.
Application stage:
The creative person takes his or her idea out into the real world to test it against reality
to see. If it really works. This stage requires patience and persistence to see the
implementation of the idea through to its final success.
Advertising Objectives:
It is a statement explaining the purpose and role of an advertising campaign or a
particular advertisement. It should describe what the ad maker wants the target audience to
think, feel, or do.
Strategic Approach
It outlines the statement of how the product will be positioned, what appeals will be
used and what key benefits will be presented.
Support:
It provides the copy writer with supporting details that explains the reason why the
audience should believe the primary message of the advertisement.
Types of Appeal
Fear
Humor
Sex
Music
Rationality
Emotions
Scarcity
Rational Appeal
Focuses on the consumer’s practical, functional, or utilitarian need for the product or
service
Emphasizes the features or benefits
Messages emphasize facts and logic
Used by business-to-business advertisers.
Well-suited for
Print media
Complex products
High involvement products
Rational Motives
Comfort
Convenience
Economy
Health
Quality
Dependability
Durability
Performance
Efficiency
EMOTIONAL APPEAL
Relate to consumers’ social and/or psychological needs for purchasing a product or
service.
Many advertisers believe consumers’ emotions work better at selling brands that do
not differ from competing brands.
Based on three ideas:
o Consumers ignore most ads
o Rational ads go unnoticed
o Emotional ads can capture attention
Key to developing brand loyalty.
Use more in b2b advertising.
SCARCITY APPEAL
Based on
o Limited supply
o Limited time to purchase
Tied with promotional tools such as contests, sweepstakes, and coupons.
Encourage customers to take action.
It refers to written material which is to be set in type for the print media or spoken by
announcers for broadcast commercials.
A copy writer translates the selling points of a clients product or services into benefits
for selected consumers. He is concerned with what to say and show, how best to say
and show it.
HEADLINE
Is a word or phrase which is more prominent and catching than the other elements of the
copy,
And carries an ad message either below or above it.
Forms Of Headlines
Direct Forms Headline - “ Exclusive double duty door lock from Godrej”
New Headline – “Nation’s Best News Channel
Curiosity or provocative – What does the next generation want from us?
Selective Headline – “The choice of Mothers”
Humorous Headline – “Bonds in A Snap”
Command Headline – “Be Yourself”
Situation Headline – Tsunami, Swine Flu
Challenging Headline – Money Back offer, HLL
Negative Headline - I don’t Need a Insurance
Affirmative Headline – Growing Children need Complan
Question Headline – ‘Why Kenstar microwave Oven?
SUB – HEADLINE
Eg. “The Finolex Assurance” “No Shocks. No Short Circuit. No electrical Fires”
BODY COPY
The main text of the advertisement called ‘Body Copy” is the logical continuation of
headlines and subheads, and completes the sales story.
SLOGAN
Is a catchy Sentence or phase which is easy to remember.
Are direct, short,, summarized
It gives an identity to the company or to its products.
Eg “Believe in the Best”
I LAYOUT
A plan which indicates where the different components of an headline, text and
illustrations are to be placed, for the effective communication of the advertising
message.
It creates Image , It attract readership
Elements Of A Layout
Background
Border
Caption
Coupon
Decoration
Heading
Illustration
Mascot
Name Plate
Price
Product
Slogan
Space
Sub Heading
Trade Mark
Text
Stages Of Layout
Thumbnail Sketch – Refers to miniature rough sketches of possible layouts.
Rough Layout – More detailed sketches done in the actual size of the final
layout.
Finished layout – Once a selection has been made from among alternative
rough, a more finished layout is prepared.
Comprehensive – Body copy or text will be pasted in and the ad appears on a
cardboard surface, so that it can be presented to the client.
Artwork – This is a camera ready paste up prepared for distribution to the
media.
Layout Format
Standard Layout – This consist of a dominant illustration a headline, body
copy and logotype , arranged in that order. Also known as a conventional layout.
Editorial Layout – This resembles editorial material in a publication. It can be
effective when the message is a serious one.
Poster layout – This is a picture dominant layout, with the visual covering almost
the entire advertisement.
Comic Strip Layout- This is a picture caption arrangement and could include
cartoon, drawings that follow the format of the comic strip.
All –Type – Layout has no visual and includes only lettering.
Qualities Of A Layout
Balance – An advertisement is balanced when it looks balanced that is. When
each element seems to appear in their place. This kind of balance in a layout
means that the top and bottom halves or the right and left halves contain identical
masses.
Proportion: This refers to the total space occupied by the layout elements, as
opposed to the white space around them. Elements in an advertisements should
be accorded space based on their importance to the completed advertisement.
II ILLUSTRATIONS
These consist of Photographs, drawing, graphs, Charts, painting and other pictorial
devices. These are used to gain attention, comprehension, attitude change and
behavior change.
Significance
They are more effective than words
They support the copy
They are demonstration
They can make us understand technical details.
Associations and images are created
They evoke moods.
Color photograph give high fidelity to the products.
Background and atmosphere can be shown effectively with their use.
It attract attentions.
It make advertising message believable.
Bound the audience in the headlines and copy
Good Illustration
They should be suggestive.
Methods Of Illustration
Symbolic Illustration
Comparison Illustration
Product /use Illustration
Magnification of details
Product in the setting illustration
Result of a product’ use illustration
Product Alone Type illustration
Dramatized illustration
III SIZE :
The readership increases proportionately with advertising size.
IV COLOUR :
It has been found that colours attract more attention than mere use of black and
white, in terms of readership.
V TOPOGRAPHY:
The choice of the typeface can also contribute to the mood. Image and credibility of
an advertisement. When selecting a typeface the factors to be considered are reading
ease, and the image of the advertiser.
UNIT – IV
Definition: “Materials that act as a direct inducement, offering added value, or incentive for
the product, to resellers, sales persons or consumers.”
A marketer must do the following while planning and sending communications to a target
audience:
3. Product Characteristics
o Complexity: How much information must be communicated. The more
complex the message, the greater the need to use personal selling.
o Risk: Greater risk, greater need for personal selling
In many cases the final response sought is purchase, but purchase is the result of a long
process of consumer decision making. Need to know where the target audience now
stands (in the process), and what state they need to be moved to.
Adoption Process
o Not Aware--Advertising/Publicity
o Aware--no knowledge Advertising/Publicity
5. ChannelStrategies
(i) To introduce new products: Have you ever heard about distribution of free samples?
Perhaps you know that many companies distribute free samples while introducing new
products. The consumers after using these free samples may develop a taste for it and buy
the products later for consumption.
(ii) To attract new customers and retain the existing ones: Sales promotion measures help
to attract or create new customers for the products. While moving in the market,
customers are generally attracted towards the product that offers discount, gift, prize, etc
on buying. These are some of the tools used to encourage the customers to buy the goods.
Thus, it helps to retain the existing customers, and at the same time it also attracts some
new customers to buy the product.
(iii) To maintain sales of seasonal products: There are some products like air conditioner,
fan, refrigerator, cooler, winter clothes, room heater, sunscreen lotion, glycerin soap etc.,
which are used only in particular seasons. To maintain the sale of these types of products
normally the manufactures and dealers give off-season discount. For example, you can
buy air conditioner in winter at a reduced price. Similarly you may get discount on winter
clothes during summer.
(iv) To meet the challenge of competition: Today’s business faces competition all the time.
New products frequently come to the market and at the same time improvement also
takes place. So sales promotion measures have become essential to retain the market
share of the seller or producer in the product-market.
The business world today is a world of competition. A business cannot survive if its
products do not sell in the market. Thus, all marketing activities are undertaken to
increase sales.
Producers may spend a lot on advertising and personal selling. Still the product may
not sell. So incentives need to be offered to attract customers to buy the product.
Thus, sales promotion is important to increase the sale of any product.
Let us discuss the importance of sales promotion from the point of view of
manufacturers and consumers.
C. Sales promotion must be viewed as supplementary, and not as a replacement for other
tools.
Sales promotion has grown substantially in recent years. There are several reasons for
this dramatic growth in sales promotion.
First, consumers have accepted sales promotion as part of their buying decision
criteria. It provides reluctant decision makers with an incentive to make choices by
increasing the value offered by a particular brand.
Third, the emergence of computer technology has enabled manufacturers to get rapid
feedback on the results of promotions. Redemption rates for coupons or figures on
sales volume can be obtained within days.
Finally, an increase in the size and power of retailers has also boosted the use of sales
promotion. Historically, the manufacturer held the power in the channel of
distribution. Mass marketers utilized national advertising to get directly to consumers,
creating a demand for the heavily advertised brands that stores could not afford to
ignore. With consolidation and the growth of major retail chains, however, retailers
have gained the power to demand incentives from manufacturers to carry their
products. Many sales promotions are designed to provide benefits to the retailers.
Limitations
o Shift focus away from the product itself to secondary factors, therefore no
product differential advantage.
Consumer sales promotions are steered toward the ultimate product users—typically
individual shoppers in the local market—but the same techniques can be used to
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PRICE DEALS
A consumer price deal saves the buyer money when a product is purchased. The main
types of price deals include discounts, bonus pack deals, refunds or rebates, and
coupons.
Price deals are usually intended to encourage trial use of a new product or line
extension, to recruit new buyers for a mature product, or to convince existing
customers to increase their purchases, accelerate their use, or purchase multiple units.
Price deals work most effectively when price is the consumer's foremost criterion or
when brand loyalty is low.
Price Discounts: Buyers may learn about price discounts either at the point of sale or
through advertising. At the point of sale, price reductions may be posted on the
package, on signs near the product, or in storefront windows. Many types of
advertisements can be used to notify consumers of upcoming discounts, including
fliers and newspaper and television ads. Price discounts are especially common in the
food industry, where local supermarkets run weekly specials. Price discounts may be
initiated by the manufacturer, the retailer, or the distributor. For instance, a
manufacturer may "pre-price" a product and then convince the retailer to participate
in this short-term discount through extra incentives. For price reduction strategies to
be effective, they must have the support of all distributors in the channel. Existing
customers perceive discounts as rewards and often respond by buying in larger
quantities. Price discounts alone, however, usually do not induce first time buyers.
Bonus Pack or Banded Pack: Another type of price deal is the bonus pack or banded
pack. When a bonus pack is offered, an extra amount of the product is free when a
standard size of the product is bought at the regular price. This technique is routinely
used in the marketing of cleaning products, food, and health and beauty aids to
introduce a new or larger size. A bonus pack rewards present users but may have little
appeal to users of competitive brands. A banded pack offer is when two or more units
of a product are sold at a reduction of the regular single-unit price. Sometimes the
products are physically banded together, such as in toothbrush and toothpaste offers.
Coupons: Coupons are legal certificates offered by manufacturers and retailers. They
grant specified savings on selected products when presented for redemption at the
point of purchase. Manufacturers sustain the cost of advertising and distributing their
coupons, redeeming their face values, and paying retailers a handling fee. Retailers
who offer double or triple the amount of the coupon shoulder the extra cost. Retailers
who offer their own coupons incur the total cost, including paying the face value. In
this way, retail coupons are equivalent to a cents-off deal. Manufacturers disseminate
coupons in many ways. They may be delivered directly by mail, dropped door to
door, or distributed through a central location such as a shopping mall. Coupons may
also be distributed through the media—magazines, newspapers, Sunday
supplements, or free-standing inserts (FSI) in newspapers. Coupons can be inserted
into, attached to, or printed on a package, or they may be distributed by a retailer who
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CONTESTS/SWEEPSTAKES
The main difference between contests and sweepstakes is that contests require
entrants to perform a task or demonstrate a skill that is judged in order to be
deemed a winner, while sweepstakes involve a random drawing or chance contest
that may or may not have an entry requirement.
At one time, contests were more commonly used as sales promotions, mostly due
to legal restrictions on gambling that many marketers feared might apply to
sweepstakes.
SPECIAL EVENTS
According to the consulting firm International Events Group (IEG), businesses spend
over $2 billion annually to link their products with everything from jazz festivals to
golf tournaments to stock car races. In fact, large companies like RJR Nabisco and
Anheuser-Busch have special divisions that handle nothing but special events.
Special events marketing offer a number of advantages. First, events tend to attract a
homogeneous audience that is very appreciative of the sponsors. Therefore, if a
product fits well with the event and its audience, the impact of the sales promotion
will be high. Second, event sponsorship often builds support among employees—who
may receive acknowledgment for their participation—and within the trade.
PREMIUMS
Incentives that are given for free at the time of purchase are called direct premiums.
These offers provide instant gratification, plus there is no confusion about returning
coupons or box tops, or saving bar codes or proofs of purchase.
Other types of direct premiums include traffic builders, door openers, and referral
premiums. The garden tool is an example of a traffic-builder premium—an incentive to lure
a prospective buyer to a store. A door-opener premium is directed to customers at home or to
business people in their offices. For example, a homeowner may receive a free clock radio
for allowing an insurance agent to enter their home and listening to his sales pitch. Similarly,
an electronics manufacturer might offer free software to an office manager who agrees to an
on-site demonstration. The final category of direct premiums, referral premiums, rewards the
purchaser for referring the seller to other possible customers.
Mail premiums, unlike direct premiums, require the customer to perform some act in order to
obtain a premium through return mail. An example might be a limited edition toy car offered
by a marketer in exchange for one or more proofs-of-purchase and a payment covering the
cost of the item plus handling. The premium is still valuable to the consumer because they
cannot readily buy the item for the same amount.
CONTINUITY PROGRAMS
Continuity programs retain brand users over a long time period by offering ongoing
motivation or incentives.
Continuity programs demand that consumers keep buying the product in order to get
the premium in the future.
Trading stamps, popularized in the 1950s and 1960s, are prime examples. Consumers
usually received one stamp for every dime spent at a participating store. The stamp
company provided redemption centers where the stamps were traded for merchandise.
A catalog listing the quantity of stamps required for each item was available at the
participating stores.
When competing brands have reached parity in terms of price and service, continuity
programs sometimes prove a deciding factor among those competitors.
SAMPLING
A sign of a successful marketer is getting the product into the hands of the consumer.
Sometimes, particularly when a product is new or is not a market leader, an effective
strategy is giving a sample product to the consumer, either free or for a small fee. But
in order for sampling to change people's future purchase decisions, the product must
have benefits or features that will be obvious during the trial.
There are several means of disseminating samples to consumers. The most popular
has been through the mail, but increases in postage costs and packaging requirements
have made this method less attractive.
An alternative is door-to-door distribution, particularly when the items are bulky and
when reputable distribution organizations exist. This method permits selective
sampling of neighborhoods, dwellings, or even people.
Direct sampling can be achieved through prime media using scratch-and-sniff cards
and slim foil pouches, or through retailers using special displays or a person hired to
hand out samples to passing customers.
Though this last technique may build goodwill for the retailer, some retailers resent
the inconvenience and require high payments for their cooperation.
A final form of sample distribution deals with specialty types of sampling. For
instance, some companies specialize in packing samples together for delivery to
homogeneous consumer groups, such as newlyweds, new parents, students, or
tourists. Such packages may be delivered at hospitals, hotels, or dormitories and
include a number of different types of products.
The objectives of sales promotions aimed at the trade are different from those directed
at consumers.
o Generate excitement about the product among those responsible for selling it.
Some of the most common forms of trade promotions—profiled below—
include point-of-purchase displays, trade shows, sales meetings, sales
contests, push money, deal loaders, and promotional allowances.
Probably the most effective way to ensure that a reseller will use a POP display is to
design it so that it will generate sales for the retailer. High product visibility is the
basic goal of POP displays.
In industries such as the grocery field where a shopper spends about three-tenths of a
second viewing a product, anything increasing product visibility is valuable.
The theme of the POP display should coordinate with the theme used in ads and by
salespeople.
TRADE SHOWS
Thousands of manufacturers display their wares and take orders at trade shows. In
fact, companies spend over $9 billion yearly on these shows.
Trade shows provide a major opportunity to write orders for products. They also
provide a chance to demonstrate products, disseminate information, answer questions,
and be compared directly to competitors.
Related to trade shows, but on a smaller scale, are sales meetings sponsored by
manufacturers or wholesalers. Whereas trade shows are open to all potential
customers, sales meetings are targeted toward the company's sales force and/or
independent sales agents. These meetings are usually conducted regionally and
directed by sales managers. The meetings may be used to motivate sales agents, to
explain the product or the promotional campaign, or simply to answer questions.
For resellers and salespeople, sales contests can also be an effective motivation.
Typically, a prize is awarded to the organization or person who exceeds a quota by the
largest percentage.
PUSH MONEY
For example, a manufacturer of refrigerators might pay a $30 bonus for each unit of
model A, and a $20 bonus for each unit of model B, sold between March 1 and
September 1.
At the end of that period, the salesperson would send evidence of these sales to the
manufacturer and receive a check in return.
Although some people see push money as akin to bribery, many manufacturers offer
it.
DEAL LOADERS
The second is a display loader, which means the display is given to the retailer after
the campaign.
For instance, General Electric may have a display containing appliances as part of a
special program. When the program is over, the retailer receives all the appliances on
the display if a specified order size was achieved.
TRADE DEALS
Trade deals are special price concessions superseding, for a limited time, the normal
purchasing discounts given to the trade.
Trade deals include a group of tactics having a common theme—to encourage sellers
to specially promote a product.
The marketer might receive special displays, larger-than-usual orders, superior in-
store locations, or greater advertising effort. In exchange, the retailer might receive
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special allowances, discounts, goods, or money. In many industries, trade deals are
the primary expectation for retail support, and the marketing funds spent in this area
are considerable.
There are two main types of trade deals: buying allowances and advertising/display
allowances.
UNIT V
SETTING OBJECTIVES
Some aspects that are important to consider in marking sales promotions successful are as
follows:
1. Maximum effect at minimum cost: when the nature of promotion objective is such
that is can best be achieved by sales promotion, rather than advertising alone, and the
objective is achieved at minimum cost.
2. Motivates consumers to buy now: successful sales promotions induce a sense of
urgency to buy now and avoid postponing purchases.
3. Offers what the consumers want: sales promotion must not attempt to push any offer
that is not regarded as desirable by target consumers.
4. The promotion should be clear and uncomplicated: simple and clear language must
be used in communicating with the consumers.
5. Promotion should be highly visible: the offer must draw attention of target
consumers. Effective promotions draw attention from high visibility and from
creative qualities.
6. Promotion should benefit all concerned: usually promotions involve cooperation of
sales force and channel members. They need to be motivated to make the efforts
successful.
Measurements of results, in any are of business activity, is related to the objects that are
set. The sales promotion can be evaluated at three different stages:
To measure the sales effect, sales figures before the promotion period can be compared with
figures at the end of promotion, and one month after the promotion ends.
Background Information
The cola market is a mature market with lots of variety. Consumers are trying new and
innovative products. There’s strong growth in bottled water, juices, sports drinks and energy
drinks. Consumers are conscious cola drinkers; they are calorie conscious especially in their
20s and 30s. The Lime Coke is a new product in the market. Sprite, Coca-Cola’s ‘solid’
performer continues to be a great success as a strong competitor to this new product.
The nature of product is revolutionary; it should create emotional connection with the
consumers. The Lemon Cola drinkers, driven by youthful liberation, relate to life’s more
light-hearted and fun experiences. It is a drink of choice for people who are younger and
more exciting.
Objectives
New distribution of Lime Coke products through the channel distribution by motivating top
20% of the Manufacturer’s independent salespeople to move more Lime Coke products to
Retailers in order to generate an ultimate 40 to 50% sales during the Christmas season by
attracting consumers.
The distribution system has only two divisions (Independent Sales Rep and Retailer) before it
reach the consumer.
The product is new in a matured market, needs additional explanation and education for the
sales reps to have that carried over to the retailer to gain maximum consumer exposure in this
dominant market position.
There is a competitor product such as Sprite, certainly, there is a competition for distributor
resources in order to get attention. The channel function will only be selling, inventory
support, physical distribution and post sales services.
Promotion Mix
SELL-IN Devices
Encourage wholesalers or retailers to carry Lime Coke product. Free good deals- Give free
packs of Lime Coke instead of money at no cost. Off-allowance or Buying allowance – is a
good option for this new product, retailers have an opportunity to stockpile the products at
the reduced price to sell at the regular price latter. The allowance is deducted directly from
the invoice of the product
SELL-OUT Devices
Induce retailers to promote Lime Coke through advertising and displays. Cooperative
advertising- since this is a new product and competitive market, it makes sense to have long-
term contract with the retailer. The retailer will run advertisement and manufacturer pays an
allowances based on the quantity and retailer orders . Dealer listing – Great opportunity to
have manufacturer to place advertisement in different medias ( TV, radio, magazines or news
papers) for the Lime Cola product and announcing the retailers (name and addresses) who
stock Lime Coke.
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Stimulate retailers and their channel members to ‘push’ Lime Coke product rather that of
competitor product e.g. Sprite. Spiffs will be a great compensation for the retailer store clerk
rewarded for selling Lime Coke. Dealer Loader – the purpose is to gain new product
distribution, gifts in return for an order or premium for special price display.
Motivation the Independent Sales Rep (Sales Promotion) to supplement their regular
compensation- Sales Incentive plans (reward for achieving sales Quota) and sales aids in
combination to assist sales persons in selling situations.
Personal selling, advertisement and sales promotion are methods of the promotional
methods. During most of the situation two or more promotional methods are to be used
for each campaign. Advertising needs the support of personal selling or display to
increase the sales.
This will decide the promotional mix. For consumer goods advertisement and dealer
display will have more effect. Industrial goods with high technology will need much of
personal selling and cosmetics.
If the communication are mostly to middlemen, then personal selling will be more
effective and very little spending on advertisement will do. If information are to be
passed to consumers and when the number of consumers is large, it is better to advertise.
Nature of Market:
If market for a product is only local then personal selling alone will be sufficient. If the
market for a product is available at national level, then advertisement is more suitable.
Availability of funds:
The amount of funds available for promotion will decide the promotional mix. The
companies having huge funds for promotion will favor advertisement and try to cover
wider market. If the funds are available are less than maximum portion and such funds
will be allocated for personal selling in limited areas.
Associate linked products. If a customer buys a video game, ask if he’d alswo like to buy
some batteries, games or other peripherals. Those are items the customer may forget to
purchase of might to expire not realize are available.
Many web users prefer to gather information about products online. They visit a few sites
to get an idea of what’s available and at what cost. But they don’t complete the sales
online instead, many log off and head directly for nearest brick mortar store to make their
actual purchase.
it doesn’t take much more time and effort to pack and ship 5 items than to pack and ship
1 item. Its more efficient for you to pack more items in each order. So give customers an
incentive to purchase more at one time.
People want to know the total price to deal with. Raise your profit margin and encourage
larger orders form. Most users will leave a site without completing their purchase if the
site doesn’t show total cost including shipping.
You don’t want onetime customers. It takes far more effort to attract new customers than
it does to keep existing ones. That simple concept seems to be forgotten in these days of
anonymous email and the torture of automated phone system.
Website design is an important component of website credibility, but design only takes
you so far. Visitors quickly note the design, but then look for content. Format your
content to reflect how people read online and consult the copy writer’s handbook for
instruction on how to write persuasive.
Information pages
Features:
Targetability
Global reach
Tracking ability
Less expensive to produce
Flexibility and rich media combination
Immediacy
Interactivity
Disadvantages
Customer-dominated environment
A cognitive, not emotional medium
Psychological fear of IT
Limited space and information in some formats
Connection problems
Non internet users
Clutters
WWW Banners
Graphic display on a web page linked to the advertisers page
Types of banners
random banner
keyword banner
Economics
through)
Banner swapping
Banner exchange
Design issues
Spot Leasing
Some sites provide a space on their site that can be leased for a given period of time
Unlike banners spot adverts = are always displayed for the duration of the lease
Not targeted, so only effective on extremely high traffic sites (e.g. major search engines)
www.lastminute.com
www.student.com
www.yahoo.com
www.hotmail.com
IRC chat rooms are commonly used by groups sharing a specialist interest
Hobbyists
Political activists
Self-help groups
usually the sponsors provide the server as a “service” to the target community
JARGON: