SAKHIE

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SAKHIE PHOTOSTAT
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COURSE: B.COM YEAR: 3

RD

SUBJECT: ADVERTISING & SALES MANAGMENT

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UNIT 1 Q1:- Meaning of advertising. Advertising is the non personal communication of information usually paid for and usually persuasive in nature about products, services or ideas by indentified sponsors through the various media. Q2:- Importance of advertising. Advertising plays a very important role in todays age of competition. Advertising is one thing which has become a necessity for everybody in todays day to day life, be it the producer the traders, or the consumer. Advertising is an important part. Lets have a look on how and where is advertising important. 1. Advertising is important for the customers:- Just imagine television or a newspaper or a radio channel without an advertisement. No one can any day imagine this advertising plays a very important role in customers life. Customers are the people who buy the product only after they are made aware of the products available in the market. If the product is not advertised, no customers will come to know what products are available and will not buy the product even if the product was for their beneath one more thing is that advertising helps people find the best product for themselves. Thus, advertising is important for the customers. 2. Advertising is important for the seller and companies producing the products
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Yes, advertising plays very important role for the producers and the sellers of the products, because 1. Advertising helps increasing sales 2. Advertising helps producers or the companies to know their competitors and plan accordingly to meet up the level of competition. 3. If any company wants to introduce or launch a new product in the market advertising will make a ground for the product. 4. Advertising helps making people aware of the new product so that the consumers come and try the product. 5. Advertising helps creating goodwill for the company and gains customer loyalty after reaching a mature age. 6. The demand for the product keeps on coming with the help of advertising and demand and supply became a never ending process. 3. Advertising is important for the society:Advertising helps, educating people. There are some social issues also which advertising steals with like child, labour, liquor, consumptions girl child killing, smoking, family planning education, etc. Thus advertising plays a very important role in society.

Q3:- Types of advertising: Consumer Advertising:- There are basically nothing but product or service advertisement directed towards the consumer or the consumer as such. Such advertisements can be in the form of national and local advertisement also. Such kind of advertisement uses emotional or rational appeal in their advertisement. Advertisement such as that of DeBeers, Pizza hut etc use be emotional appeal to attract the consumer. On the other hand advertisement such is the Kawasaki Bajaj Caliber, Vim bar etc use the rational appeal to address its target audience.
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1. Advertising to business or profession:- This type of advertising is aimed at resellers and professionals. The media used here is direct mail or professionals magazines. These are ads which are not directed towards the final consumer corporate ads are also a part of these types of ads. The target group pf corporate advertising are most often customers, stockholders, employees, financial institutions, political leaders and government. The objectives of the corporate or the institution may be establish. 2. Industrial Advertising:- Industrial advertising is another important type of advertising. Industrial executives have little confidence in advertising. The expenditure on industrial advertising as a percent of sales is much smaller than that on consumer goods advertising. The task of the industrial advertiser is complicated by the multiple buying influence characteristics of many industrial goods he derived nature of their demand and the fact that many material lose their identity in the end product. 3. Retail Advertising:- This may be defined as covering all advertising by the stores that sells goods directly to the consuming public. It includes, also advertising by establishment that sell services to the public, such as beauty shops, petrol pumps and banks. 4. Non Profit Advertising:- In this type of advertising advertisement depicting an idea, a social cause etc is included surrogate advertisement are also a part of such non product advertisement. Q4:- Meaning of communication process and its models. The communication process is not easy, the words, the presentation, the indication and the silence should be carefully directed towards the objectives of communication. The source delivers the message to the receiver. The message may be handed over to the receiver through a channel-magazine, television radio or a newspaper.

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Models of communication process The model process of communication has been described under each component of the communication process, viz, source, message, perception, channel, receiver and effect 1. Source The source of a communication or message is known as the encoder, sponsor, advertiser or sales representative. The source is the sender of the message. It is the place where the message originates. The spokesperson is the source of the message of the advertising. The message is carried to the receiver through a channel, such as the newspaper, magazines, radio or television. The message may relate to the brand, product, quality, price, etc. which are to be brought to the knowledge of the receiver. 2. Message The term message refers to the content of the communication. It is the creative idea of communication. It may be include words, pictures, symbols, order of presentation, appeal, refuting or ignoring certain statements. The emotional appeal in advertising has been considered to be very effective in message transmission. 3. Perception Perception is an important factor in the communication process. The message can be perceived by the receiver according to his nature and culture, its attention, interest, desire and action. The attitude and desire of the sender also influence the perception level. Perception can be increased if the attention and interest of the receiver are aroused at a higher speed. Words, pictures and sounds are important factor influencing perception.
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4. Channel The message is carried through some channel a newspaper, magazine, radio, or television from the sender to the receiver. The impact of a communication is different when it is transmitted through different channels. Individual communication may be word of mouth or face to face communication. The individual channel is costly and advertiser cannot communicate effectively, efficiently and economically with the entire audience. 5. Feedback Feedback is an essential factor in making communication more effective. It indicates how the communication process is working feedback is received from the receiver or audience. The receivers may provide feedback on their needs, knowledge, cultural system, attitudes and communication skills. Marketing or advertising research may be very useful in assessing the value of feedback. Q5:- Strength and weakness of advertising as a promotion tool. Strength of Advertising Advertising as a means of communication has numerous advantages. The strength of advertising can be summarize below: 1. Mass Reach Advertising is a communication medium which can reach a wide range of people over broad geological region. For example advertising via a daily newspaper reaches millions of people all over the country. 2. Boosting customer contentment and confidence It creates a sense of assurance amidst potential customers as they are contented and comforted about the quality of the product and thus feel more relaxed.
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3. Expressiveness As because of the progress of graphic designing, art and computer skills, advertisement has changed into one of the most aggressive weapon of communication. A simple product can look attractive with all the special effects and modern computer skills. 4. Economy Advertising by far is the most economic medium of communication for creating mass awareness. As a result of it wide reach the total advertising cost gets stretched over several communication links recognized. This ultimately lowers per limit cost for advertising.

Weakness of Advertising Though advertising has many advantages, it also has several disadvantages. The weakness of advertising as a medium of communication are listed below: 1. Less Forceful Being an impersonal medium of communication it is less forceful when compared to personal selling. Advertising is a common message and you are not compelled to pay attention to the message conveyed. 2. Lack of feedback It is not possible to study the efficiency to advertising message as it is not possible to gather immediate and precise feedback of the message communicated. 3. Inflexibility Advertising is not very flexible because of standardization and is not custom made meet the necessities of the various group of customers.
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4. Low effectiveness Because of the growth in volume of advertise is becoming impossible to make advertising message heard by the prospective group of consumers. This ultimately influence the efficiency of advertising.

Unit 2nd Q1:- Advertising Decisions Marketing management must take five important decisions when developing an advertising program a) Setting advertising objectives b) Setting advertising budgets c) Developing advertising strategy d) a) Message decision b) Media decision e) Evaluating advertising campaigns Q2:- Deciding advertising objectives Marketing management must make five important decisions in developing an advertising program. These decisions will be listed and discussed here in this writing. 1. Objective Setting The first step in developing an advertising program is to set the advertising objectives. These objectives must flow from prior decisions on the target market, marketing positioning and marketing mix. 2. Possible Advertising objective To inform: Telling the market about a new product suggesting new uses for product information the market of a price change. Explaining how the

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product works. Describing available services correcting false impressions. Reducing consumer fears building a company image. 3. To Persuade Building brand preference encouraging switching to your brand. Changing customers perception of product attributes. Persuading customer to purchase now, persuading customer to receive a sales call. 4. To Remind Reminding customers that a the product may be needed in the near feature. Reminding them where to buy it keeping it in their minds during off season. 5. Reminder Advertising Is highly important in the nature stage to keep the consumer thinking about the product. Q3:- Deciding Advertising budget The following are the five factors that are considered while seting the decising advertising budget. 1. Stage in the product life cycle New products typically receive large advertising budgets to build awareness and to gain customers trial. 2. Market share and consumer base The brands having a high market share usually require less advertising expenditure where as for products whose brand needs to be built, require larger advertising expenditure. 3. Competition and clutter In todays competitive market, where there is large number of competitors, a brand must advertise heavily to be heard.
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4. Advertising Frequency The number of repetitions that need to be made to put across the brand message to consumers has an important impact on the advertising budget.

5. Product Substitutability Brands in the commodity class require heavy advertising to establish a different image. For example, cigarettes, beer, soft drinks. Also advertising is important when the brand can offer unique physical benefits or features. Q4:- Deciding Media The advertisers are to choose advertising media to carry the advertising message. The steps of deciding media 1. 2. 3. 4. Deciding on reach, frequency, and impact. Choosing among major media types Selecting specific media vehicles Deciding on media timing.

Deciding on Reach, Frequency, and Impact In order to select media, the advertiser must determine the desired reach, frequency and impact needed to achieve the advertising objectives. 1. Reach The advertiser must decide how many persons in the target audience should be exposed to the ad campaign during the specified period 2. Frequency
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The advertiser must also decide how many times the average person in the target audience should be exposed to the message during the specified time period.

3. Impact The advertiser must also decide on the impact that the exposure should have message on television typically have more impact than message on radio because television combines sight and sound not just sound. Choosing among Major Media The media planner has to know the capacity of the major media types to deliver reach frequency and impact 1. Target audience media habits. Example radio, T.V are the most effective media for reaching teenagers. 2. Product, womens dresses are best shown in colour magazines, and cameras are best demonstrated on T.V. Selection specific Media vehicle The media planner now chooses the specific media vehicle that will be most cost effective. The media planner turns to several volumes published by standard rate and data that provide circulation and cost for different ads size, colour options, ad positions, and quantities of insertions in different womens magazines. Deciding on Media Timing The advertiser has to decide how to schedule the advertising over the year in relation to seasonality and expected economic developments, suppose sales of an particular product peak in December and wave in march. The seller has options.
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Unit 3rd Q1:- What is Sales planning and organization Sales planning is a logical process of planning or reading or estimating the future sales for a definite time in all dimensions of quality, quantity, value, area and so on. It is predicting the expected change in sales in terms of value, volume type based on the last years and this years figure. Sales organization Sales organization is the planning, direction and control or personnel selling including recruitment, selection, training, equipping, assigning, routing, supervising, paying and motivating, as these tasks apply to the personal sales force. Q2:- What is the meaning of personal selling and sales promotion Personal Selling Personal selling involves interpersonal communication, which aims at informing and persuading customers to know and buy product. It is a face to face relationship between seller and potential customers. It provides immediate feedback which helps sales person to adapt the sales techniques to the needs of the situation. Sales Promotion A sales promotion is a way for retailers and wholesalers to offer extra goods or services for purchasing sometime. Sometimes sales promotions bring in carnival creatures to help bring people to their business.
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Q3:- Sales planning process 1. Basics While the sales planning process various between companies and individual sales professionals, certain basic elements should be included in any marketing plan or direct sales strategy. Customers can provide sales organization with clearer direction, pointing to what they want, how they want it delivered, what they are willing to pay for it and when they will be ready to buy. 2. Path Since most sales organizations rely on a few customers to purchase the bulk of their products or services, the first step in the planning process should be to identify those highly valued clients. Sales planning should focus on these customers and their desire. Second step is to make a strategy to reach these clients and then check their validity with the accounting department. 3. Technology Software programs such as those developed by plan write, sales planner and kin axis can assist sales organizations in the planning process by guiding the collection of information and helping to organise it usefully. Sales costs, timeliness and forecasts can be evaluated in one platform from a desktop various department such as marketing, IT, sales, operations, supply chain management and human resources can work on the planning process through the software network. 4. Follow up Follow up is another area in which sales professionals often fall short. Built in to the planning process, Follow up can be one of the best source of feature business and referrals. Companies should build in automatic follow up techniques. Follow up processes, which include customers
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service, can be triggered by the software thats been implemented to create the plan.

Q4:- Sales For casting Prediction of the future sales of a particular product over a specific period of time based on past performance of the product, inflation rates, unemployment, consumers spending patterns, market trends, and interest rates. In the preparation of a comprehensive marketing plan, sales forecast help the marketer develop a marketing budget. Q5:- Territory Allocation / Sales Territory A sales territory is a number of present and potential customers located within a geographical area, and assigned to a sales person, branch or middleman. Q6:- Sales Quotas Sales quotas are the sales goal set for a product line, company division or sales representatives. It helps the managers to define and stimulate sales effort. Sales quota is the minimum sales good for a set time span. Q7:- Sales Budget A sales budget is valuable tools that give a direction to a company with regards to its targeted sales. It helps to improve the profit ability of a company. The company makes a financial plan with regard to the amount of goods and services. Q8:- Principles of sales organization The seven principles of sales p0roductivity have been condensed from global survey results on sales people across a variety of industries and
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cultures regardless of what business or environment one is in the applicability of these ideas are universal. 1. 2. 3. 4. New prospectus is the life blood of a business. Selling is a Number Game the more you contact, the more you close. Without new prospectus all presenting and closing skills are worthless. Getting sales people to prospect, rather than showing them how to prospect is sales managements greater challenge. 5. Eighty percent of new sales people, who terminate in year 1 do so due to lack of prospecting activity. 6. Forty percent of veteran sales people experience one or more episodes of call. Reluctance severe enough to threaten their sales carrers. 7. Assessment of existing willingness or reluctance to prospect is the starting point in improving sales productivity.

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Unit 4TH Q1:- Meaning of Sales promotion and Sales Management Sales Promotion Sales promotion is a marketing technique designed to create sales for a product over a defined period of time. The result of sales promotion activities are measurable in terms of number of units sold, number of coupons redeemed, number of contest entrants or other quantifiable measures. Sales Management Sales management involves the direction and control of salesmen, sales planning, budgeting, policy making, coordination of marketing, research, advertising, sales promotion and merchandising and the integration in the marketing programme of all the business activities that contribute to the increased sales and profits. Q2:- Nature and functions of sales promotion The importance of sales promotion is the unique role it plays in the marketing mix. 1. Incentives While advertising is primarily used to build a products visibility and favourability overtimes. Sales promotion is a means of giving buyers incentives to make an immediate purchase or to switch from a competitive brand.
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2. Behavioural Targeting Sales promotion is most effective when it is tailored to the buying behaviour of a particular target. Among the most relevant behavioural dimensions are purchase frequency and brand loyalty. For example people who buy spices rarely, or in some quantities, decide to buy more often in large volume, if the received free recipes in return. 3. Consumer Promotion Many popular sales promotions are targeted primarily or solely to household consumers. Those focused on price include both discount coupons and the significant but time limited price breats known as deals like one get one free offers. 4. Trade Promotion Trade sales promotion is aimed at a market that buys for resale, not for personal consumption. Primarily, this group includes retribution to household consumers. Certain type of consumers promotion can influence the trade, but marketers also use devices specifically designed for this audience. Functions of Sales Promotion Sales promotion may take the form of temporary price reduction or a campaign to introduce an item. 1. Production Differentiation Use of sales promotion techniques helps to differentiate your products from those of your competitors. A method often used to make products stand out is to offer them at a slightly reduced price for a short period of time. 2. Attract Customers

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Sales promotions are used to attract customers during periods of slow sales. For example you offer a seasonal product such as grills by running a promotion in the middle of winter where the price is reduced by 50% may encourage people to buy a bill at a time where it might not otherwise loss their mind. 3. Increasing Market Share Sales promotions can lead to an increase in market share for the manufacturer. The promotions will likely increase your sales by taking way sales from your competitors. As a result market share will increase while your competitors share decrease. 4. New Product Introduction Retailers can use sales promotions to introduce new product. By offering the new item a reduced price and placing a new item in front of it, they can persuade customers to given the new product a try. This technique has the effect of keeping the category fresh while fleecing up needed shelf space. 5. Inventory Control Sales promotion can help retailers limit out of stock situations by allowing them to purchase large quantities at a reduced price. This can be especially advantageous to the retailer for items that are popular sellers that can be difficult to keep on the shelf. Q3:- Types of sales promotion schemes There are mainly four types of sales promotion scheme:1. Affordable Method Many companies set the promotions budget at what they think the company can afford. One executive explained this method as follows:

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Why, its simple. First I got upstairs to the controller and how much they can afford to give us this year. He says a million and half. Later, the boss comes to me and asks how much we should spend and I say about a million and half. It is a method which is uncertain one and makes long term planning difficult.

2. Percentage of Sales Method Many companies set their promotions expenditure at a specified percentage of sales. In this a specified sales percentage is decided for the promotions budget. It encourages the competitive stability to the exent that competing firms spend approximately the same % of their sales on promotion. 3. Competitive Parity Method Some companies set their promotional budget to achieve share of voice parity with other competitor. Two arguments are made in support of competitive parity method. One is that the competitors expenditure represents the collective wisdom of the industry. The other is that maintaining a competitive party helps prevent promotional wars. 4. Objectives and Task Method The objectives and task method calls upon market to develop their promotions budget by defining their specific objectives, determing the task that must be performed to achieve these objectives, and estimating the cost of performing these tasks. Deciding on the Promotion Mix Companies face the task of distributing the total promotion budget over the five promotional tools. 1. Advertising
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2. 3. 4. 5.

Sales Promotion Public relation and publicity Sales Force Direct Marketing product it must be

Whatever method a company adopt for promoting from above mentioned method. Q4:- Meaning of consumer and Trade Promotion. Consumer Promotion:

The name for a wide variety of marketing activities whose goal is to induce specific consumer action. Among the more common consumer promotion tactics are P.O.P displays, coupons, sweep takes and events. Trade Promotions A trade promotion is an incentive to get retailers to stock and support or merchandise a brand. Trade promotions goals include obtaining or maintaining product distribution increasing sales volume and encouraging retailer advertising and displays. Q5:-Requirements for Sales departments Sales managers are a part of a field sales force. They are typically responsible for a specific geographic area and the territory sales managers within that area companies looking to hire for a regional sales manager position should carefully consider a number of common requirements for the position. 1. Sales Experience Sales managers should have at least three to five years of individual sales experience in most cases sales skill and experience are transferable between industries, but companies in highly specialized industries such

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as environmental engineering or pharmaceuticals, may require experience in their own or a similar industry. 2. Management Experience Sales managers should have at least two years experience managing others. Some companies and industries may require significantly greater experience ideally, the applicant should have experience managing sales people. Through other management experience will suffice in some cases. In addition, he should have experience collecting, analyzing and reporting sales data. 3. Personal Traits Sales managers must motivate and manage differe3nt personalities. They must be persistent and must encourage their subordinates to be persistent. They must be able to understand the companys overall sales plan and communicate the information in an actionable way to the sales force. They must be well- organized and must help keep their people organized. 4. Ability to Travel Sales regions often consist of several states containing many territories. Sales managers must regularly vistit the sales people in each territory to provide ongoing training and to evaluate performance. They must be prepared to travel at least 80 percent of the work week. Sales managers should live close to a major airport to make air travel efficient. Q6:- Meaning of Salesmanship Sales man ship consists of winning the buyers confidence for the sellers house and ghosts thereby winning a regular and permanent customer. Q7:- Qualities of a Salesman 1. Physical qualities

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A good sales man should be good looking and must have an alluring posture. He must be convincing by voices, thus requiring a caring and loving voice. He should not show a negative expression under any circumstance. 2. Metal/ Psychological Qualities A good salesman must have a marvellous personality. He should be sweet natured and must be patient. He should know to deal with people of different age groups, classes and gender. In no condition should be lose his temper at it may spoil the image of the company for which he is working. 3. Technical qualities A good salesman should posses all the technical qualities i.e, he should have knowledge about the product he is selling in full. He should know as to how it works, its usefulness and other specifications. 4. Knowledge about the firm He should have complete knowledge about the firm he is working for. He should know about the people behind the success of the firm and the history of the same. He should not pursue his work with partial knowledge. 5. Communication Skills A good salesman requires fantabulous communication skills. He should know diversified languages and must be confident and nit stammer while speaking. Q8:- What is sales force motivation? Motivation is a general term applying to the entire class of drives, desires, needs, wishes and similar forces to say that managers motivate this subordinates is to say that they do these things which they hope will
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satisfy these drives and desires and involve the subordinates to act in a desired manner. Q9:- What is sales meeting? A gathering in which a product or services is being discussed, and the benefits are outlined to the potential buyer. The sales meeting is not always a pre4sentation format. It can sometimes be an informal conversion phone call or online affair.

Contests of Sales Meeting 1. Contest Format Direct or Novelty Direct Format describes specific objective. Novelty Format uses a particular theme based current events, sport or any idea important points. Timely and effective understandable to the audience. 2. Contest Prize Cash Merchandise, Travel or Special honour cash. Potency Weakness as an individuals needs are up in need hierarchy. No permanent evidence of their achievement. 3. Contest Duration Mostly run for one to four months no set. 4. Sales contest Managerial Evaluation of contest Contest vs alternatives short and long term effect Design Fairness impact upon sales force morale. 5. Sales contests objections No reasons to reward sales persons for their regular duties high calibre and more experience need sales personnel. Bunch sales disappointment to losers temporary motivating devices weakness team spirits.
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