Download as docx, pdf, or txt
Download as docx, pdf, or txt
You are on page 1of 96

PROJECT REPORT

ON
"PROMOTIONAL TOOLS AND TECHNIQUES"
I.K. GUJRAL PUNJAB TECHNICAL UNIVERSITY
KAPURTHALA

in partial fulfillment of the requirement for


the award of degree of
Master of Business Administration (MBA)

Submitted By : Submitted to :
Harpreet Singh HOD, MBA
2109608

DEPARTMENT OF MANAGEMENT
BHAI GURDAS INSTITUE OF MANAGEMENT & TECHNOLOGY
SNAGRUR
MAY, 2023

1
CHAPTER: - 1
INTRODUCTION OF
TOPIC

2
Marketing Concept

Marketing is communicating the value of a product, service or brand to customers, for the
purpose of promoting or selling that product, service, or brand.

Marketing techniques include choosing target markets through market analysis


and market segmentation, as well as understanding consumer behavior and advertising a
product's value to the customer.

From a societal point of view, marketing is the link between a society's material
requirements and its economic patterns of response.

Marketing satisfies these needs and wants through exchange processes and building long-
term relationships.

Marketing blends art and applied science (such as behavioral sciences) and makes use
of information technology.

Marketing is applied in enterprise and organizations through marketing management.

Recent approaches in marketing include relationship marketing with focus on the


customer, business marketing or industrial marketing with focus on an organization or
institution and social marketing with focus on benefits to society. New forms of
marketing also use the internet and are therefore called internet marketing or more
generally e-marketing, online marketing, "digital marketing", search engine marketing,
or desktop advertising. It attempts to perfect the segmentation strategy used in traditional
marketing.

3
Customer Orientation-:

It targets its audience more precisely, and is sometimes called personalized marketing or
one-to-one marketing. Internet marketing is sometimes considered to be broad in scope,
because it not only refers to marketing on the Internet, but also includes marketing done
via e-mail, wireless media as well as driving audience from traditional marketing
methods like radio and billboard to internet properties or landing page.

A firm in the market economy survives by producing goods that persons are willing and
able to buy. Consequently, ascertaining consumer demand is vital for a firm's future
viability and even existence as a going concern. Many companies today have a customer
focus (or market orientation). This implies that the company focuses its activities and
products on consumer demands. Generally, there are three ways of doing this: the
customer-driven approach, the market change identification approach and the product
innovation approach.

In the consumer-driven approach, consumer wants are the drivers of all strategic
marketing decisions. No strategy is pursued until it passes the test of consumer research.
Every aspect of a market offering, including the nature of the product itself, is driven by
the needs of potential consumers. The starting point is always the consumer. The
rationale for this approach is that there is no reason to spend R&D (research and
development) funds developing products that people will not buy. History attests to many
products that were commercial failures in spite of being technological breakthroughs.

4
A formal approach to this customer-focused marketing is known as SIVA (Solution,
Information, Value, Access). This system is basically the four Ps renamed and reworded
to provide a customer focus. The SIVA Model provides a demand/customer-centric
alternative to the well-known 4Ps supply side model (product, price, placement,
promotion) of marketing management.

Product → Solution

Promotion → Information

Price → Value

Place (Distribution) → Access

If any of the 4Ps were problematic or were not in the marketing factor of the business, the
business could be in trouble and so other companies may appear in the surroundings of
the company, so the consumer demand on its products will decrease.

However, in recent years service marketing has widened the domains to be considered,
contributing to the 7P's of marketing in total. The other 3P's of service marketing are:
process, physical environment and people.

Understanding the Marketing Mix used in eureka force – 4Ps

Marketing is simplistically defined as ‘putting the right product in the right place, at the
right place, at the right time.’ Though this sounds like an easy enough proposition, a lot
of hard work and research needs to go into setting this simple definition up. And if even
one element is off the mark, a promising product or service can fail completely and end
up costing the company substantially.

The use of a marketing mix is an excellent way to help ensure that ‘putting the right
product in the right place,…’ will happen. The marketing mix is a crucial tool to help

5
understand what the product or service can offer and how to plan for a successful
product offering. The marketing mix is most commonly executed through the 4 P’s of
marketing: Price, Product, Promotion, andPlace.

These have been extensively added to and expanded through additional P’s and even a
4C concept. But the 4Ps serve as a great place to start planning for the product or even to
evaluate an existing product offering.

© Entrepreneurial Insights

In this article, we will look at 1) the four P’s, 2) history of the marketing mix concept
and terminology, 3) purpose of the marketing mix, 4) key features of the marketing
mix, 5)developing a marketing mix, 6) key challenges, and 7) marketing mix example
– Nivea.

THE FOUR P’S

Product

The product is either a tangible good or an intangible service that is seem to meet a
specific customer need or demand. All products follow a logical product life cycle and it
is vital for marketers to understand and plan for the various stages and their unique

6
challenges. It is key to understand those problems that the product is attempting to solve.
The benefits offered by the product and all its features need to be understood and the
unique selling proposition of the product need to be studied. In addition, the potential
buyers of the product need to be identified and understood.

Price

Price covers the actual amount the end user is expected to pay for a product. How a
product is priced will directly affect how it sells. This is linked to what the perceived
value of the product is to the customer rather than an objective costing of the product on
offer. If a product is priced higher or lower than its perceived value, then it will not sell.
This is why it is imperative to understand how a customer sees what you are selling. If
there is a positive customer value, than a product may be successfully priced higher than
its objective monetary value. Conversely, if a product has little value in the eyes of the
consumer, then it may need to be underpriced to sell. Price may also be affected by
distribution plans, value chain costs and markups and how competitors price a rival
product.

Promotion

The marketing communication strategies and techniques all fall under the promotion
heading. These may include advertising, sales promotions, special offers and public
relations. Whatever the channel used, it is necessary for it to be suitable for the product,
the price and the end user it is being marketed to. It is important to differentiate between
marketing and promotion. Promotion is just the communication aspect of the entire
marketing function.

Place

Place or placement has to do with how the product will be provided to the customer.
Distribution is a key element of placement. The placement strategy will help assess what
channel is the most suited to a product. How a product is accessed by the end user also
needs to compliment the rest of the product strategy.

7
The Marketing Mix

HISTORY OF MARKETING MIX CONCEPT AND TERMINOLOGY

The marketing mix concept gained popularity following an article titled “The Concept of
the Marketing Mix” by Neil Borden published in 1964. Borden explained how he
started using the term inspired by James Culliton who in the 1940s described the
marketing manager as a ‘mixer of ingredients.’ Borden’s article detailed these ingredients
as product, planning, price, branding, distribution, display, packaging, advertising,
promotions, personal selling among many others. Eventually E. Jerome McCarthy
clustered these multiple items into four high level categoriesthat we now know as the 4
P’s of marketing. “Its elements are the basic, tactical components of a marketing plan”.
Together, elements in these four categories help develop marketing strategies and tactics.

PURPOSE OF MARKETING MIX

The 4P’s were formalized and developed over the years by experts to ensure the creation
and execution of a successful marketing strategy. Through the use of this tool, the
attempt is to satisfy both the customer and the seller. When properly understood and
utilized, this mix has proven to a key factor in a product’s success.

KEY FEATURES OF MARKETING MIX

Interdependent variables

The marketing mix is made up of four unique variables. These four variables are
interdependent and need to be planned in conjunction with one another to ensure that the
action plans within all four are complimentary and aligned.

Help Achieve Marketing Targets

Through the use of this set of variables, the company can achieve its marketing targets
such as sales, profits, and customer retention and satisfaction.

8
Flexible Concept

The marketing mix is a fluid and flexible concept and the focus on any one variable may
be increased or decreased given unique marketing conditions and customer requirements.

Constant Monitoring

It is vital to keep an eye on changing trends and requirements, within the company as
well as in the market to ensure that the elements in marketing mix stays relevant and
updated.

Role of Marketing Manager

A mature, intelligent and innovative marketing manager needs to be at the helm of the
marketing mix. This pivotal role means that this manager is responsible for achieving
desired results through the skill manipulation of these variables.

Customer as a focal point

A vital feature of the marketing mix is that the customer is the focal point of the activity.
The value of the product is determined by customer perceptions and the goal is to achieve
a satisfied and loyal customer.

DEVELOPING A MARKETING MIX

Intuition and creative thinking are essential job requirements for a marketing manager.
But relying on just these can lead to inaccurate assumptions that may not end up
delivering results. To ensure a marketing mix that is based in research and combines facts
with innovation, a manager should go through the following systematic process:

Step 1

The first item on the marketing manager’s agenda should be to define what the product
has to offer or its unique selling proposition (USP). Through customer surveys or focus
groups, there needs to be an identification of how important this USP is to the consumer

9
and whether they are intrigued by the offering. It needs to be clearly understood what the
key features and benefits of the product are and whether they will help ensure sales.

Step 2

The second step is to understand the consumer. The product can be focused by
identifying who will purchase it. All other elements of the marketing mix follow from
this understanding. Who is the customer? What do they need? What is the value of the
product to them? This understanding will ensure that the product offering is relevant and
targeted.

Step 3

The next step is to understand the competition. The prices and related benefits such as
discounts, warranties and special offers need to be assessed. An understanding of the
subjective value of the product and a comparison with its actual manufacturing
distribution cost will help set a realistic price point.

Step 4

At this point the marketing manager needs to evaluate placement options to understand
where the customer is most likely to make a purchase and what are the costs associated
with using this channel. Multiple channels may help target a wider customer base and
ensure east of access. On the other hand, if the product serves a niche market then it may
make good business sense to concentrate distribution to a specific area or channel. The
perceived value of the product is closely tied in with how it is made available.

Step 5

Based on the audience identified and the price points established, the marketing
communication strategy can now be developed. Whatever promotional methods are
finalized need to appeal to the intended customers and ensure that the key features and
benefits of the product are clearly understood and highlighted.

10
Step 6

A step back needs to be taken at this point to see how all the elements identified and
planned for relate to each other. All marketing mix variables are interdependent and rely
on each other for a strong strategy. Do the proposed selling channels reinforce the
perceived value of the product? Is the promotional material in keeping with the
distribution channels proposed? Themarketing plan can be finalized once it is ensured
that all four elements are in harmony and there are no conflicting messages, either
implicit or explicit.

Marketing Mix Development

KEY CHALLENGES

Over the years, marketing managers have felt that the traditional marketing mix has its
limitations in how it is structured. Several important elements have been grouped within
four larger categories thereby belittling their true importance amid several factors. Two
main criticisms and their solutions:

Lack of Focus on Services

The conventional marketing mix tends to be applicable to tangible goods i.e. the
traditional definition of products. Services or intangible goods are also a vital customer
offering and can be planned for in much the same way as physical products. To cater to
the unique challenges of services, the 4P model has been supplemented with 3 additional
categories which are:

 Physical Evidence is proof and a reassurance that a service was performed


 People are the employees who deliver the service
 Processes are the methods through which a service is executed and delivered to the
customer

Lack of True Customer Focus

Though a total focus on the customer and what they desire is a vital element of the 4P
model, this truth is often in danger of being overlooked by enthusiastic marketing teams.

11
To counter this, Robert F. Lauterborn put forward his customer centric four Cs
classification in 1990. This model converts the four P’s into more customer oriented four
C’s:

 Product to Customer Solution


 Price to Customer Cost
 Promotion to Customer Communication
 Place to Customer

Convenience Organizational

orientation

In this sense, a firm's marketing department is often seen as of prime importance within
the functional level of an organization. Information from an organization's marketing
department would be used to guide the actions of other departments within the firm. As
an example, a marketing department could ascertain (via marketing research) that
consumers desired a new type of product, or a new usage for an existing product.

With this in mind, the marketing department would inform the R&D (research and
development) department to create a prototype of a product or service based on the
consumers' new desires.

The production department would then start to manufacture the product, while the
marketing department would focus on the promotion, distribution, pricing, etc. of the
product. Additionally, a firm's finance departments would be consulted, with respect to
securing appropriate funding for the development, production and promotion of the
products. Inter-departmental conflicts may occur, should a firm adhere to the marketing
orientation.

Production may oppose the installation, support and servicing of new capital stock,
which may be needed to manufacture a new product. Finance may oppose the required
capital expenditure, since it could undermine a healthy cash flow for the organization.

12
Further orientation-:

 An emerging area of study and practice concerns internal marketing, or how


employees are trained and managed to deliver the brand in a way that positively
impacts the acquisition and retention of customers, see also employer branding.
 Diffusion of innovations research explores how and why people adopt new products,
services, and ideas.
 With consumers' eroding attention span and willingness to give time to advertising
messages, marketers are turning to forms of permission marketing such as branded
content, custom media and reality marketing.

Marketing research-:

Marketing research involves conducting research to support marketing activities, and the
statistical interpretation of data into information. This information is then used by
managers to plan marketing activities, gauge the nature of a firm's marketing
environment and attain information from suppliers. Marketing researchers use statistical
methods such as quantitative
research, qualitativeresearch, hypothesistests, Chiquaredtests,linearregression,correlations
,frequency distributions, poisson distributions, binomial distributions, etc. to interpret
their findings and convert data into information.

The marketing research process spans a number of stages, including the definition of a
problem, development of a research plan, collection and interpretation of data and
disseminating information formally in the form of a report. The task of marketing
research is to provide management with relevant, accurate, reliable, valid, and current
information.

A distinction should be made between marketing research and market research. Market
research pertains to research in a given market. As an example, a firm may conduct
research in a target market, after selecting a suitable market segment. In contrast,
marketing research relates to all research conducted within marketing. Thus, market
research is a subset of marketing research.

13
Staying ahead of the consumer is an important part of a marketer's job. It is important to
understand the "marketing environment" in order to comprehend the consumers concerns,
motivations and to adjust the product according to the consumers needs. Marketers use
the process of marketing environmental scans, which continually acquires information on
events occurring outside the organization to identify trends, opportunities and threats to a
business.

The six key elements of a marketing scan are thedemographic forces, socio-cultural
forces, economic forces, regulatory forces, competitive forces, and technological forces.
Marketers must look at where the threats and opportunities stem from in the world around
the consumer to maintain a productive and profitable business.

The market environment is a marketing term and refers to factors and forces that affect a
firm's ability to build and maintain successful relationships with customers. Three levels
of the environment are: Micro (internal) environment - forces within the company that
affect its ability to serve its customers. Meso environment – the industry in which a
company operates and the industry's market(s). Macro (national) environment - larger
societal forces that affect the microenvironment.

The marketing planning process involves forging a plan for a firm's marketing activities.
A marketing plan can also pertain to a specific product, as well as to an organization's
overall marketing strategy. Generally speaking, an organization's marketing planning
process is derived from its. The 4 Ps of marketing are product, price, place and
promotion. All four of these elements combine to make a successful marketing strategy.
Promotion looks to communicate the company’s message across to the consumer.
The four main tools of promotion are advertising, sales promotion, public relation
and direct marketing.

Advertising

Advertising is defined as any form of paid communication or promotion for product,


service and idea. Advertisement is not only used by companies but in many cases by
museum, government and charitable organizations. However, the treatment meted out to
advertisement defers from an organization to an organization.

14
Advertising development involves a decision across five Ms Mission, Money, Message,
Media and Measurement.

Mission looks at setting objectives for advertising. The objectives could be to inform,
persuade, remind or reinforce. Objective has to follow the marketing strategy set by the
company.

Money or budget decision for advertising should look at stage of product life cycle,
market share and consumer base, competition, advertising frequency and product
substitutability.

Message’s development further is divided into four steps, message generation, message
evaluation and selection, message execution, and social responsibility review.

Once the message is decided the next step is finalizing the media for delivering the
message. The choice of depends on reach of media, frequency of transmission and
potential impact on customer. Based on this choice of media types are made from
newspaper, television, direct mail, radio, magazine and the internet. After which timing
of broadcast of the message is essential as to grab attention of the target audience.

Checking on the effectiveness of communication is essential to company’s strategy.


There are two types of research communication effect research and sales effect research.

Sales Promotion

Promotion is an incentive tool used to drive up short term sales. Promotion can be
launched directed at consumer or trade. The focus of advertising to create reason for
purchase the focus of promotion is to create an incentive to buy. Consumer incentives
could be samples, coupons, free trial and demonstration. Trade incentive could be price
off, free goods and allowances. Sales force incentive could be convention, trade shows,
competition among sales people.

Sales promotion activity can have many objectives, for example, to grab attention of new
customer, reward the existing customer, increase consumption of occasional users. Sales
promotion is usually targeted at the fence sitters and brand switchers.

15
Sales promotional activity for the product is selected looking at the overall marketing
objective of the company. The final selection of the consumer promotional tools needs to
consider target audience, budget, competitive response and each tool’s purpose.

Sales promotion activity should under-go pretest before implementation. Once the
activity is launched it should be controlled as to remain within the budget. Evaluation
program is a must after implementation of the promotional scheme.

Public Relations

Companies cannot survive in isolation they need to have a constant interaction with
customers, employees and different stakeholders. This servicing of relation is done by the
public relation office. The major function of the public relation office is to handle press
releases, support product publicity, create and maintain the corporate image, handle
matters with lawmakers, guide management with respect to public issues.

Companies are looking at ways to converge with functions of marketing and public
relation in marketing public relation. The direct responsibility of marketing public
relation (MPR) is to support corporate and product branding activities.

MPR is an efficient tool in building awareness by generating stories in media. Once the
story is in circulation MPR can establish credibility and create a sense of enigma among
sales people as well as dealers to boost enthusiasm. MPR is much more cost effective tool
than other promotional activities.

Direct Marketing

The communication establishes through a direct channel without using any intermediaries
is referred to as direct marketing. Direct marketing can be used to deliver message or
service. Direct marketing has shown tremendous growth in recent years. The internet has
played major part in this growth story. Direct marketing saves time, makes an experience
personal and pleasant. Direct marketing reduces cost for companies. Face to face selling,
direct mail, catalog marketing, telemarketing, TV and kiosks are media for direct
marketing.

16
Advertisement, Promotional activity, Public relation and direct marketing play an
essential role in helping companies reaches their marketing goals.

What is Sales Promotion ?

Promotion is the final element in the marketing mix. After the nature of product is
decided, its price fixed and the methods of distribution decided, the manufactures has to
take effective steps in meeting the consumers in the markets. In the present consumer
oriented markets it is the duty of manufacturers to know what is required by the
consumer. It is also their duty to make the customers know where, when how and at what
prices. The products would be available.

Meaning of Promotion

The term promotion is the term and includes mainly three type of sales activity :

1. Mass impersonal selling methods (Advertising).

2. Face to face personal selling (Salesman ship).

3. Activities other than personal selling and advertising such as point of purchase display
(P.O.P.) show and exhibitions, demonstrations and other non securing selling efforts.
This form of activity is called ‘Sales Promotion’.

There are two type of promotion blends :-

1. Pull Blend.

2. Push Blend.

Both of these are closely related to the channel of Distribution.

1. A pull blend is one in which mass impersonal, sales efforts are given the greatest
emphasis. The purpose of pull blend to pre-sell to the final consumers. So that they
demand the product at the retail level of distribution. The firm adopting this strategy

17
would spend more on advertising and sales promotion rather than in personal selling.
These efforts pull down the product from the manufacturer.

2. A push blend emphasizes personal selling. Naturally firms adopting this method
develop a strong sales force at both the distributor and the dealer level. This method
would tends to push the product through the channel of distribution.

Promotion and Selling

The term promotion is very often used as a synonym for selling. But selling is a
narrow term which includes only transfer of title or personal selling. Promotion on
the other hand is broader in its outlook and includes a variety of activities used
ultimately for increasing sales volume.

Promotion and Sales Promotion

Similarly the terms sales promotion can not be taken to mean what is commonly does.
Sales promotion, is only a part of the promotion. Basically promotion is an "exercise" in
information persecution and influence. Promotion has come to mean the over all co-
ordination of advertising selling, publicity and public relations. Promotion is a helping
function designed to make all other marketing activities more effective and efficient. But
sales promotion as such helps only the selling activity still, there exit same difference of
opinion on the real connection of the term sales promotion.

Acc. to A.H.R. Delons :-

"Sales promotion means any step that are taken for the purpose of obtaining or increasing
sales".

18
Acc. to W.Q. Kelly Opines :-

"Muddled misused misunderstood that is sales promotion Acc. to him the field of sales
promotion as a marketing activity is still vaguely defined and organized.

Sales Promotion and Advertising

There is no universally accepted distribution between these two terms. To same


advertising includes all forms of mass media communication directed towards
influencing the end consumer. Sales promotion on the other hand, includes the form of
mass communication directed towards information and influencing the channel of
distribution (e.g. distributors, retailers etc.). Hence a price of product literature distributed
by retailers in sales promotion. These sales promotion merges on one side in to
advertising and on the other in to personal salesman ship. It is concerned with the
dissemination of information to whole salers, retailers, customers (both actual and
potential, and to the salesman).

Sales promotion is concerned with the creation. Application and dissemination of


material and techniques that supplement advertising and personal selling. Sales
promotion makes use of direct mail, catalogues, trade shows, sales contests, premiums,
samples, windows displays and other aids. Its purpose is to increase the desire of
salesman, distributors and dealers to sell a certain brand to make consumers more eager
to buy that brand. Personal selling and advertising do include prospects to make these
decisions. Sale promotion provides an extra stimulus.

Objective of Sales Promotion

1. To increase sales directly by publicity through media which are complementary to


press and poster advertising.

2. To disseminate information through sales man dealers etc. So as to insure the product
getting in to satisfactory use by the ultimate consumer.

3. To attract new consumer.

19
4. To face the competition effectively.

5. To help salesman in selling more to the retailers and consumers.

6. To check seasonal decline in sales. Generally speaking sales promotion involves


rendering the following services:-

(a) Services to dealers.

(b) Services to own salesman.

(c) Special publicity.

Sales Promotional at different levels

1. Sales promotion at Dealers Level :-

It may include various schemes some of which are discussed here.

(i) Advertising Materials :-

The advertising material prepared by the company such as store signs, banners, shelf
signs, board etc. are distributed to sub dealer for display purposes this is in fact a method
of advertising.

(ii) Store Demonstration :-

In the promises of the whole saler or the retailer the products sales personnel will conduct
special demonstration for the companies product. A personal demonstration is good to
introduce a new product at its peculiar advantage can be high lightened and the
consumer’s doubt clear. It can be used to restimulate an old product. A good
demonstration with a great dealer of action will draw heavy crowds in to the store and
will attract attention to the product.

(iii) Special Display and Shows :-

These are in seasonal in character but could be arranged in an elaborate manner and for
all the products of an company. Usually these are arranged along with trade fair and

20
exhibition. Besides effecting sales these shows impress the company’s name generally on
the public.

Sales promotion at consumer’s level

The various schemes of sale promotion at Consumer’s Level may include.

1. Coupons (A Chit of Stated Value) :-

These are given directly to the consumer these coupons are in most cases kept inside the
package. The consumers many receive a price reduction of the stated values of the
coupon at the time of purchase. The retailer receives reimbursement for the value of the
coupon form the manufacturer. Coupons act as a short run stimulus to the sale of the
product, since they are directly tied with the purchase of the item. They encourage the
retailer to stock the product.

What is important is that a coupon offer does not spoil the named price of the brand nor
does it un pair the margin of the dealers. But it is not easy to measure the effectiveness of
a coupon offer. One over knows how many customer would have bought the product
without the incentive. It is also difficult to find out how many customers were held after
the coupon offer expired.

2. Price-off-offer (Also known as bargain offer price packs) :-

This offer is intended to stimulate the sales during a slump season. In this method the
customer is offered a reduction from the printed price list. It is also used when a
substitute for competing product enters the market.

Many experts on sales promotion fed that ‘Off Schemes’ are among the weaker and less
desirable methods of promotion. These can be trade resentment particularly when the
retailer raises the price to retain his margin. Secondly that is not conductive to building
up brand loyalty. Consumers may simply shift to the products that offer this scheme.

3. Samples :-

In the hope of converting a prospect into a customer a sample (Some quantity of the
product) may be given. This helps the consumer to verify the real quality of the product.
Various pair manufacturing companies offer this method. For developing brand loyalty
21
this method is quite useful. Sampling is a fast method of demand creation because one
knows the result as soon as the consumer has had time to use the sample and buy the
brand.

Disadvantage of Sampler :-

Offering sample in quit expensive. There is the cost of producing samples. The
distribution costs are also high. Sample have to be mailed to potential customers or to be
distributed through retail shops. There are also problems when the real product does not
resemble the sample supplied.

4. Money Refund Offer :-

An offer usually stated on the package is that manufacturers will return with in a stated
period part or all of the purchaser’s money if he is not completely satisfied with the
product.

5. Trading Stamps :-

A premium in the form of stamps is given by the sellers to consumers while selling
goods. The number and value of stamp that the buyer receives depends on the values of
the purchase. These stamps are redeemable through premium catalogues at the stamp
redemption centres.

6. Buy-Back Allowance :

This an allowance following a previous trade deal not offer a certain amount of money
for new purchases based on the quantity of purchases on the first trade deal. It extends the
life of a trade deal and helps to prevent part deal sales decline. It greatly strengthens the
buyer’s motivation to co-operate on the first deal.

7. Premium :-

There are various forms of premiums provided by the manufacturer as sales promotional
devices :-

(a) Coupons are supplied for effecting price reductions.

22
(b) Factory in pack premium these are popular in the case of Body food and Tin food
items, Spoons, Cups, Measuring, Glass etc. and such other items are packed with the
product in the box itself. Factory in pack premium are particularly goods for product
meant for children. The Binaca Toothpaste packs contain animal shape toys. These are
very attractive and qutie popular among the children.

(c) Self Liquidating Premiums :-

The cost of the premium is collected from the buyer himself. But when the buyers pays
for it he has to pay only a considerably low price for the premium. This is possible for the
manufacturer purchases the items in bulk at a premium and his cost per unit as is
substantially low.

Other Steps by Manufacturer for Promoting Sales

Dealers can be helps in different ways :-

1. Communicating Market News :-

Often this service is reciprocal the manufacturer may acquaint his dealer with the fact
relating to his production and prices while the dealer may familiarize him in return with
the information bearing on charges in the consumer's demand, their like and dislike
complaints and criticism, substitutes etc.

2. Inviting to Sales Conference and Convention :-

The gestures of regard and respect pave the way for better relation and co-operation.

3. Offering Reasonable Terms of Sale :-

Of all the forms of encouragement, the monetary incentive evokes immediate response.
Hence every producer must offer the most responsible terms of sale such as longer
periods of credit and higher rates of descants.

4. Supplying suitable packages and useful things.

5. By taking the return back.

23
6. By furnishing them with sales literature and display materials.

Aggressive Selling

Meaning :-

Goods are produced for market. Manufacturers have to make efforts to sell all they
produce. When the manufacturers uses various sales efforts to obtain increased sales
volume for his product it is called aggressive selling or offensive selling. The sales efforts
which a manufacturer makes to retain his customers i.e. to protect his already
established market against against his competitors is termed as defensive selling. In
contrast to this aggressive selling is concerned with the sales efforts made with the
express objective of selling more by expanding the market for the product of the selling
firm.

Aggressive Selling and Defensive Selling :-

Aggressive selling is based on the answer to the question how much does the firm gain
(in term of sales with profit) by using this method defensive selling is based on
consideration as to how much the firm will lose if it does not use this method increase of
sales can be obtained from two sources:-

1. New customers if the market is expending.

2. From the competitors i.e. those consumers who were purchasing similar product of
competiting firms, if the market for the product is static.

Acc. to H. Whitehead :-

"In case of an expanding market all the firm may stand to gain by following the methods
of aggressive selling but if the market is static manufacturer of a new market will have to
be much more aggressive to capture the established market of competitors".

When Aggressive selling is resorted ?

Usually manufacturer of a new product has to do aggressive selling :-

24
1. When the product has been improved.

2. When the manufacturer’s product is supervisor in quality to the product of the


established competitor.

3. When the total market for the product or line of product to expanding.

4. If the manufacturer’s share of the market is comparatively small.

5. If the manufacturer has unused production capacity with heavy investment in plant and
equipment he will like to develop the demand for his product rapidly so that demand for
his product is equal to the optimum production capacity of his plant ; and

6. When primary demand for a product must be created and provision must be made in
the channel of distribution to educate consumers regarding the new product and to
instruct them in its use.

Method of Aggressive Selling :-

Sales promotion efforts use for aggressive selling may be divided in two classes.

1. Trade Promotion.

2. Consumer Promotion.

1. Trade Promotion :-

Under trade promotion methods special incentives are offered to the trader to buy
products of the firm. Such incentive may take one or more of the following firm :-

(a) Cash Allowance :-

A definite percentage of discount is allowed on the purchase of given unit of a product.

(b) Extra Product :-

Instead of giving any cash allowance extra product is given with each unit of product
ordered. For instance if a box normally contains 20 Cakes of Soap, special box contains
25 cakes may be made and sold at the same price as that of the box of 20 cakes.

(c) Gifts :-

25
Various gifts are awarded in return for an order of a particular magnitude.

2. Consumer Promotion :-

Under consumer promotion method special incentives are offered to the consumers to
buy the firms product. The more prominent amongst such incentives are as following.

(a) Coupons :-

A coupon of a giving value is sent to the consumer. By presenting this coupon to the
retailer consumers can purchase a particular product mentioned on the coupon at a
reduced price. The retailer sells the products mentioned. In the coupon to such consumer
(consumers presenting the coupons) under and agreement with the manufacturer at a
price lower than the user retail price. Thus the consumer get the benefit of reduced price
to the extent of the value of the coupons.

(b) Self Liquidating Offers :-

Under this system, the firm offers an article at an attracting price if the consumer send a
given sum of money accompanied by a given number of box tops from the packages of a
particular product the benefit to the consumer is that he receives the articles at a bargain
price.

(c) Bargain Packs :-

Under this system a product is sold at a reduced price for a short period Bargain pack
method encourages new consumers to try the product. It is also helpful in obtaining large
displays in the shops.

(d) Sampling :-

The method involves giving the product or a small quantity of the product to a consumer
free with the hope that the customer will be favourable impressed with its actual use and
will eventually become a regular purchaser of the product.

A firm selling new product or an extensively improved product finds this methods useful.
Also a firm whose market is hold by competitors whose free sampling almost expensive.

26
The above mentioned methods may be reinforced by adopting.

(i) Direct method of selling through.

(ii) Offer of door to door selling.

(iii) Hire purchase and installment payment methods of selling and by forming
combination.

Other Methods of Aggressive Selling :-

(i) Employment of ‘Missionary Salesman also known as Promotional Salesman’. These


salesman call upon retailers and aggressively promote a product.

(ii) Instead of using wholesalers, the firm may develop its own sales force to call directly
on retailers.

(iii) The firm may follow a compromise method by employing a manufacturer’s agent
and giving him a large enough commission to encourage him to sell product intensively
and aggressively.

(iv) New territory exploitation sales promotion has a particularly important role in
developing the company’s product in new territories.

(v) Increment and promotions.

(vi) Letters to dealer and Customer.

In fact, an ingenious sales manager can devise any number of incentives schemes for
promoting the sales volume.

“The business that considers itself immune to the necessity for advertising sooner or later
finds itself immune to business.” The need for advertising cannot be denied by any
business because every business needs to reach out to its people in a positive manner so
as to build a group of loyal customers to their brand who can further bring profits to their
brand. Advertising provides the platform to the business to interact with their customer,

27
increase their visibility, build their brand and developing relations with their customers.
Need for advertising can in no way be denied, because if there is business, there ought to
be customers and if there are customers. Communication is evident. This communication
is advertising. Advertising being an investment to company future and like every
investment, a lot depends on advertising, as well, in terms of people, profit, longevity of
business, sustainability etc. Thus, After a company, has come to realize the need of
advertising for its business, prime questions it faces are

• Where are my target buyers?


• What is the best medium to reach them?
• Which medium can allow us maximum reach in minimum possible investment?

These our some of the questions on top of the mind of every business once they have
decided to go for advertising. With advent of technology, changing consumer’s
preferences etc, A lot has changed in the way we should advertise. Why does most
business advertising fail to yield expected return on investment. That is because of some
of our wrong decisions, we make while advertising. And one of the major decision is,
“What should be the right medium to adverise?” Thus the aim of our study is to
understand business needs and correlate it with advertising basics and hence formulating
a comparative study for understanding the effectiveness of various mediums of
advertising according to business needs and expectations. To help business maximize
their reach, public acceptance, personalization, cost effectiveness by selecting the right
medium to advertise. The questions to everyone’s mind now would be, Is selecting
advertising mediums before advertising such an important and crucial decision before
anything. Yes, It is. Lets understand how. There are various mediums for advertising like
newspapers, magazines, radio, television, cinema, outdoor, mobile internet, direct mailer
etc. Every medium follows its own set of customers, cost and advantages. Differentiating
between different mediums becomes essential to get the maximum advantages of
Communication, reach, public acceptance, cost advantage, building brand image,
switching abilities, acceptance and cost, effectiveness and quality of add, compatibility of
ad with the medium, compatability with time, shelf life, personalization of message,

28
shortcomings etc. Every mediums rates differently on the scale for above things and thus
being different on the basis of needs and priority of business. Thus our first objective of
the study is to understand all the available mediums of advertising on the above said
aspects. After understanding different available mediums of advertising, It needs to be
comprehended with business needs to deicide the suitability of medium according to
business needs, which varies extensively from the stage the company is in to customer sit
is targeting to the budgets it wants to spend. The various questions which every company
should ask before choosing an advertising medium are
• What are the long term advertising objectives of the company
• What respective benefits are they expecting from there advertisements.
• Are they aware of there target buyers. Whether they are keeping it in mind, before
going in for a particular choice of advertising medium.
• What prompts them to a particular advertising medium for there company / Product.
Whether it depends on some outside agency or internal decisions.

Once, we have understood the needs of advertising by various businesses. There would
be a comparative study for you to understand which advertising medium is suitable to
what needs and which business can make the most effective use of the said medium.

Nothings satisfies man than an intelligent reason or a logic. Once we have actually
understood, which medium could be best for your business. Our prime concern would be
to know were these choices justified. Thus our next step would be to correlate the
correlate the effectiveness of various advertisements with respect to the medium used i.e
How successful a particular medium is to add on to an advertisement meeting its
objectives. Having understood all, not leaving any scope for a “what if” situation. The
study next aims to comparatively analyze different advertisement campaigns of different
companies under same industry using different mediums for advertising their products
After understanding all the above knowledge on advertising and choice of advertising
medium, the study would be incomplete without understanding the consumers response
to advertising on different mediums. Thus the study next aims to studying the attitude of

29
people to advertising on various mediums and understanding which respective segment
of people are effected more by which medium of advertising.

30
WHAT IS ADVERTISING?
The word advertising is derived from the Latin word viz, "advertero" "ad" meaning
towards and "verto" meeting towards and "verto" meaning. "I turn "literally specific
thing". Simply stated advertising is the art "says green." Advertising is a general term for
and all forms of publicity, from the cry of the street boy selling newspapers to the most
celebrate attention attracts device. The object always is to bring to public notice some
articles or service, to create a demand to stimulate buying and in general to bring logethel
the man with something to sell and the man who has means or desires to buy".
Advertising has been defined by different experts. Some of the quoted definition are :
American marketing association has defined advertising as "any paid form of non
personal presentation and promotion of ideas, goods or services by an identified sponsor.
The medium used are print broad cast and direct. Stanton deserves that "Advertising
consists of all the activities involved in presenting to a group a non- personal, oral or
visual openly, sponsored message regarding a product, service, or idea. This message
called an advertisement is disseminated through one or more media and is paid for by the
identified sponsor. Advertising is any paid form of non – personal paid of presentation of
ideas goods or services by an identified sponsor. Advertising is a "non- personal paid
message of commercial significance about a product, service or company made to a
market by an identified sponsor. In developing an advertising programme, one must
always start by identifying the market needs and buyer motives and must make five major
decisions commonly referred as 5M (mission, money message, media and measurement)
of advertising.

Basic Features of Advertising On the basis of various definitions it has certain basic
features such as :
1. It is a mass non-personal communication.
2. It is a matter of record.
3. It persuades buyers to purchase the goods advertised.
4. It is a mass paid communication.

31
5. The communication media is diverse such as print (newspapers and magazines)
6. It is also called printed salesmanship because information is spread by means of the
written and printed work and pictures so that people may be induced to act upon it.

FUNCTIONS OF ADVERTISING
For many firms advertising is the dominant element of the promotional mix –particulars
for those manufacturers who produce convenience goods such as detergent, non –
prescription drugs, cosmetics, soft drinks and grocery products. Advertising is also used
extensively by maters of automobiles, home appliances, etc, to introduce new product
and new product features its uses its attributes, pt availability etc. Advertising can also
help to convince potential buyers that a firms product or service is superior to competitors
product in make in quality, in price etc. it can create brand image and reduce the
likelihood of brand switching even when competitors lower their prices or offer some
attractive incentives. Advertising is particularly effective in certain other spheres too such
as :
i) When consumer awareness of products or service is at a minimum.
ii) When sales are increasing for all terms in an industry.
iii) When a product is new and incorporates technological advance not strong and
.iv) When primary buying motive exists.

It performance the following functions :


i) Promotion of sales
ii) Introduction of new product awareness.
iii) Mass production facilitation
iv) Carry out research
v) Education of people.

32
TYPES OF ADVERTISING
Broadly speaking, advertising may be classified into two categories viz., product and
institutional advertising.

a) Product Advertising:
The main purpose of such advertising is to inform and stimulate the market about the
advertisers products of services and to sell these. Thus type of advertising usually
promote specific, trended products in such a manner as to make the brands seam more
desirable. It is used by business government organization and private non-business
organizations to promote the uses features, images and benefits of their services and
products. Product advertising is sub-divided into direct action and indirect action
advertising, Direct action product advertising wages the buyer to take action at once, ice
he seeks a quick response to the advertisement which may be to order the product by
mail, or mailing a coupon, or he may promptly purchase in a retail store in response to
prince reduction during clearance sale. Product advertising is sub-divided into direct &
indirect action advertising &product advertising aims at informing persons about what a
products is what it does, how it is used and where it can be purchased. On the other hand
selective advertising is made to meet the selective demand for a particular brand or type
is product.

b) Institutional Advertising :
It is designed to create a proper attitude towards the sellers to build company image or
goodwill rather than to sell specific product or service. Its purpose is to create a frame of
mind and to implant feeling favourable to the advertisers company. Its assignment is to
make friends for the institution or organization. It is sub-divided into three categories :
patronage, public, relations and public service institutional advertising.

33
i) In patronage institutional advertising the manufacturer tells his prospects and customer
about himself his policies and lives personnel. The appeals to the patronage motivation of
buyers. If successful, he convince buyers that his operation entitles him to the money
spent by them.

ii) Public relations institutional advertising is used to create a favourable image of the
firm among employees, stock-holders or the general public.

iii) Public service institutional advertising wages public support.

c) Other Types
The other types are as follows :
i)Consumer advertising
ii) Comparative advertising
iii) Reminder advertising
iv) Reinforcement advertising

34
ADVERTISING OBJECTIVES
The long term objectives of advertising are broad and general, and concern the
contribution advertising should make to the achievement of overall company objectives.
Most companies regard advert singly main objective as hat of proving support to personal
selling and other forms of promotion. But advertising is a highly versatile
communications tools and may therefore by used for achieving various short and long
term objectives. Among these objectives are the following :

1. To do the entire selling job (as in mail order marketing).

2. To introduce a new product (by building brand awareness among potential buyers).

3. To force middlemen to handle the product (pull strategy).

4. To build brand preference by making it more difficult for middleman to sell


substitutes.

5. To remind users to buy the product (retentive strategy).

6. To publicize some change in marketing strategy (e.g., a price change, a new model or
an improvement in the product).

7. To provide rationalization (i.e. Socially acceptable excuses).

8. To combat or neutralize competitors advertising.

9. To improve the moral of dealers and/or sales people (by showing that the company is
doing its share of promotion).

35
10. To acquaint buyers and prospects with the new uses of the product(to extend the
PLC).

BENEFITS
The functions of advertisement, and that purpose its ethics, may be discussion below :

1. It leads to cheaper prices. "No advertiser could live in the highly competitive area of
modern business if his methods of selling were more costly than those of his rivals."

2. It acquaints the public with the features of the goods and advantages which buyers will
enjoy.

3. It increases demand for commodities and this results in increased production.

Advertising :
a) Creates and stimulates demand opens and expands the markets;
b) Creates goodwill which loads to an increase in sales volume;
c) Reduces marketing costs, particularly product selling costs.
d) Satisfied consumer demands by placing in the market what he needs.

4. It reduces distribution expenses in as much as it plays the part of thousands of


salesman at a home. Information on a mass scale relieves the necessity of expenditure on
sales promotion staff, and quicker and wider distribution leads to diminishing of the
distribution costs.

5. It ensures the consumers better quality of goods. A good name is the breath of the life
to an advertiser.

36
6. By paying the way for large scale production and increased industrialization,
advertising contributes its quota to the profit of the companies the prosperity of the
shareholder the uplifts of the wage earners and the solution of he unemployment
problem.

7. It raises the standard of living of the general public by impelling it to use to articles of
modern types which may add to his material well being. "Modern advertising has made
the luxuries of yesterday the necessities of today ..................... It is a positive creative
force in business. It makes two blades of grass grow in the business world where one
grew before.

8. It establishes the goodwill of the concern for the test articles produced by it and in
course of time they sell like not cakes consumer search for satisfaction of their needs
when they purchase goods what they want from its beauty, superiority, economy,
comfort, approval, popularity, power, safety, convenience, sexual gratification and so on.
The manufactures therefore tries to improve this goodwill and reputation by knowing the
buyer behaviour.
To sum up it may be said that advertising aims at committing the producers, educating
the consumer, supplementing the salesman converting the producer and the dealer to
eliminate the competitor, but above all itis a link between the produce and the consumer.

Need for reviewing advertising performance

Consumers in today’s marketplace have the opportunity to choose between several


available alternatives in almost every product category. The willingness of consumers to
exercise this option is demonstrated in two significant ways—the large market share
differences among competitors within product categories and the high failure rate of new
product introductions. An indication of the failure rate is refiected in the statistic that
about one out of 540 new product ideas ultimately becomes a successful product.
Consequently the marketer is literally forced to devote a very considerable amount of
money and effort to planning and executing the advertising program that will, hopefully,

37
yield the greatest financial reward. Various sources suggest that the sum of money spent

38
to communicate a desired message to the consumer is approaching $17 billion in the
United States alone, an all-time high. Furthermore, this figure will in all probability
continue to rise in the years to come. To put this sum into the proper perspective, it may
be noted that the average family of four is reportedly exposed to more than 1,500 separate
advertising messages during the course of a single day. And this too may be rising.
Within this context, it is surprising that a large number of advertisers make no attempt to
measure the effectiveness of their advertising investment. In fact, a recent National
Industrial Conference Board study indicated that a large portion of current advertising
efforts are nothing more than “. . . Untested advertising that small groups of agency or
company executives believed would be effective.” Sound management practice dictates
that all phases and operations of the company be subject to systematic review in order to
achieve a maximum level of performance. This should include advertising. The short-
term and long-term benefits of systematically reviewing a firms advertising efforts are
overwhelming.

For example:—Management will be forced to define specifically what each element of its
program is intended to accomplish, in advance of actual advertising exposure.—An
accurate feedback system could be provided to management, assisting them in
uncovering what the advertising program—working in conjunction with other marketing
forces—is actually accomplishing in the marketplace.—Management would be able to
use and to learn from experience (both successes and failures) in order to create more
effective communications in the future.2.4 Information flow from advertiser to consumer
and a realistic program to measure advertising effectiveness Information from various
impersonal sources is communicated to the consumer, either directly or by another
person. This message is affected by many subtle yet meaningful variables over which the
advertiser has little control. For example, several studies have illustrated that the type of
message presentation, the attitudes of the audience to the transmitter (whether it is media
or human), the order of presentation, and the emotional set of the audience" all serve to
influence the effectiveness of information, that is, all information supplied by a variety of
sources and affected by many different factors, eventually results in a product-related
message of some kind being perceived by the consumer. The reception of information

39
directed to the consumer is merely the beginning of the communications process.
Furthermore, there is no certainty that even this initial step of the advertising
communications process will be successful. An advertising message will be received by
the consumer only if it is transmitted through appropriate media. A message which
theoretically communicates well (for example, in a test situation it is remembered and
understood; it is successful in changing or confirming attitudes, opinions, and
preferences) could easily be ineffective when presented by in appropriate media. Even if
appropriate media are used and the consumer does become exposed to the message, it is
still unrealistic to expect that he will buy the product at the first opportunity. The message
must first attract the consumers attention in some way (either consciously or
subconsciously). Otherwise, no matter how well-constructed and how well-transmitted,
the message would be ineffective as an advertising vehicle. The fact that consumers
retain only a .small portion of what they are actually exposed to—either because of an
inability to retain all messages or a lack of desire to do so—suggests that considerable
attention should be given to this problem. Assuming the sales message is received by the
consumer, and attracts his attention, the marketer should still not expect changes in
purchase behavior. The message must first influence changes in preference by altering or
strengthening key attitudes and images about the product. Both in-theatre and
questionnaire research tests have demonstrated the possibility that a consumer may be
exposed to a message with no resultant change in any image or attitude about the product,
much less a change in preference. The key issue here is the true saliency of the product
message from the consumers point of view, rather than the effectiveness with which the
advertiser communicated the product message he judged to be important to consumers.
Some experimenters have recently suggested that consumers may alter their behavior
without any prior changes in attitude or preference. However, analysis of their findings
suggests that perhaps their definition of attitude maybe incorrect, casting doubt on their
"findings" of no relationship between attitudes and behavior. "Realistic Program for the
Measurement of Advertising Effectiveness It is within the preceding framework that one
can proceed with the development of a systematic method of measuring advertising
effectiveness. By understanding how information about a product is transmitted from the
advertiser to the consumer and the complex paths it sometimes takes, an evaluative

40
program can be designed. This program must, however, have one basic methodological
objective. It must utilize valid and reliable research instruments. There can be no
elements of the program which are based upon magic formulas and unfounded
assumptions. This section describes such an evaluative system. A. An important element
of the program is to measure consumer exposure to all media in the advertisers target
market segments. The data may be valuable in defining the specific media to which
consumers have recently been exposed, and the frequency of such exposure. For
example, one could carefully itemize the specific magazines read, television shows seen,
or radio shows heard. Such data would help to determine

(1) if the target market segment was exposed to the sales messages in the past, and
(2) what media selections should be made to insure optimum exposure per dollar spent in
the future. B. It is also important to measure retention of the advertising and other
"messages" received by the consumer. Information should be collected for the product
under investigation, as well as for all competitors in the appropriate product category.
Specific information could be obtained about retention of the individual elements of a
sales message and also consumers explanations and interpretations of what an advertiser
is communicating about his product. C. The level of consumer preference, both for the
advertised product and for its competitors, can be developed. Consumers can be
categorized into several intensities of preference. For example, the first and lowest level
of preference could be a complete lack of awareness for the product. Next might be a
general state of product awareness (either with a negative feeling or with no observable
preference). A third, and more intense level of preference, could be an evaluation by the
consumer that the product is within a group of products toward which he has some level
of favorable feeling. Finally, the highest level of preference could be the single product
that is most preferred. (The concept behind these preference levels has application in
most product categories. However, many studies of advertising effectiveness suggest that
the number and definition of the various levels of preference may vary among different
product categories.)D. Salient images and attitudes toward the product under
investigation, as well as for all of its competitors, can also be measured. Knowing a
consumers level of preference, as well as his specific attitudes, enables the correlation of

41
attitudinal factors with preference for all products in the category of interest. E. Recent
actual marketing behavior of the consumer should be investigated. Information sought
might include such factors as product brand, size and amount usually purchased, various
uses and methods of usage, as well as the consumers current product inventory on hand.
F. The type of data described above can be used only to measure what the advertising for
a product is accomplishing relative to its competition. However, it cannot tell the
marketer the economic value of his current advertising strategy. As noted earlier, there
are a large number of variables which must be accounted for and controlled in order to
provide this type of information. The actual experience of several manufacturers"
suggests that it is possible to provide management with a series of objective indicators of
advertisings economic value. These observations may then be examined in light of
current market conditions, government actions, competitive activities, and so on, in order
to gain insight into a measure of advertisings economic value.2.5 Generalizations about
advertising effectiveness in mark Based on over 260 estimates, the mean elasticity of
sales or market share to advertising is 0.1 percent. Another 450 field experiments suggest
that changes in media, product, target segments, advertising scheduling, and advertising
content are more likely to yield changes in sales than do changes in advertising weight.
Numerous other studies suggest that advertising wear-in does not exist or occurs quite
rapidly while advertising wear-out occurs more slowly. Details of and differences in
these results by condition are discussed in this articl

Different mediums of Advertising

The promise of media advertising is great. It’s an opportunity for a brand to tell its story
directly to the ultimate consumer. It’s an opportunity to build awareness and project a
powerful brand image. It’s an opportunity to create and build brand equity. It’s an
opportunity to bypass the trade, an opportunity to circumvent competitors. In actual
practice, however, the promise of media advertising I seldom realized. In fact, the
opposite is true. Media advertising is probably the most inefficient, least productive
expenditure in the typical company’s marketing budget.

42
1. Television Advertising
Television advertising provides a very powerful vehicle for delivering a message about
your product or service to the widest audience possible. The visual impact of video
simply has a great ability to capture and hold the audience—more so than the more static
mediums of print or audio media. Although it may seem like a daunting task, you can
write and produce your own commercial at a television studio, or at a local college or
high school that has an audio-visual department. The costs of producing a fifteen-,thirty-,
or sixty-second television spot will vary depending upon the sets, special effects, talent,
equipment, and crew necessary to pull off your concept. The cost for placing a television
ad depends upon the type of station, the time of day your ad airs, and the ad run
frequency. Station types, in order of expense, include UHF,VHF, and local cable access.
When determining which time slot to place your ads in, consider any documentaries,
features, or sporting events with local content that cater specifically to an audience that
would be interested in your product or service. Remember that the frequency of your ads
is as important as the time of day they air. Running your commercial once or twice a
week, for example, is unlikely to generate any response at all. The effect of TV
commercials, or any other form of advertising, can and has been measured on a variety of
criteria. Advertising recall, message comprehension, product awareness and knowledge,
attitude toward and intentions to buy the advertised product are some of the more
frequently used commercial and product-related measures of advertising effectiveness.
These measures, being non purchase in nature, should ideally be related to the
theoretically "optimal" criterion of advertising effectiveness—the present value of the
relative profitability of advertising alternatives. Unfortunately, there is no sound
theoretical (or even an empirical) basis for selecting any one measure as the single "best"
criterion. This may suggest the need for advertising evaluation tests which utilize a
number of relevant commercial and product related criteria. Yet, most current
commercial testing procedures, including those that are consistent with the Dagmar
approach, determine the effectiveness of a given commercial based on its performance on
a single criterion.

43
2. Newspaper Advertising
Every advertising medium has characteristics that give it natural advantages and
limitations. As you look through your newspaper(s), youll notice some businesses that
advertise regularly. Observe who they are and how they advertise their products and
services. More than likely, their advertising investment is working if its selling! Some
Advantages in Newspaper Advertising Almost every home receives a newspaper, either
by newsstand or home delivery. Reading the newspaper is a habit for most families. And,
there is something for every body: sports, comics, crosswords, news, classifieds, etc. You
can reach certain types of people by placing your ad in different sections of the paper.
People expect advertising in the newspaper. In fact, many people buy the paper just to
read the ads from the supermarket, movies or department stores. Unlike advertising on
TV and radio, advertising in the newspaper can be examined at your leisure. A newspaper
ad can contain details, such as prices and telephone numbers or coupons. There are many
advantages to advertising in the newspaper. From the advertisers point-of-view,
newspaper advertising can be convenient because production changes can be made
quickly, if necessary, and you can often insert a new advertisement on short notice.
Another advantage is the large variety of ad sizes newspaper advertising offers. Even
though you may not have a lot of money in your budget, you can still place a series of
small ads, without making a sacrifice.

Some Disadvantages with Newspaper Advertising


• Newspapers usually are read once and stay in the house for just a day.
• The print quality of newspapers is not always the best, especially for photographs. So
use simple artwork and line drawings for best results.
• The page size of a newspaper is fairly large and small ads can look minuscule. Your ad
has to compete with other ads for the readers attention.

44
3. Magazines advertising
Many of the same "print" type principles which apply to newspaper advertising also
apply to magazine advertising. The biggest differences are: Magazines are usually weekly
or monthly publications instead of daily. Advertising messages are more image-oriented
and less price-oriented. The quality of the pictures and paper are superior to newsprint.
Advertisements involve color more often. The general rule that you can run the same ad
3-5 times within a campaign period before its appeal lessens applies to magazine
advertising as well, even with a monthly publication. So it makes sense to spend extra
time and money to prepare a worthwhile ad that can be successfully repeated. Over long
terms such as these, however, be aware that the client (you) often tires of the ad before
the audience does. Because ads in magazines are not immediate, they take more planning.
Often, an ad for a monthly magazine must be prepared at least a month in advance of
publication, so ads detailing prices and items have to be carefully crafted to insure
accuracy..

There are two categories of magazines: trade magazines and consumer magazines.
Trade magazines are publications that go to certain types of businesses, services and
industries. Consumer magazines are generally the kind you find on the average
newsstand. Investigate which type would do your business the most good. An agency can
also purchase the magazine space for you, often at no charge, because the magazine pays
the agency a commission directly. If you wish to purchase the advertising yourself,
contact the magazine directly and ask for an "Ad Kit" or "Media Package." They will
send you a folder that includes demographic information, reach information, a current
rate card and a sample of the publication. Although most magazines are national in
nature, many have regional advertising sections that allow your business to look like it
purchased a national ad when it only went to a certain geographical area. This can be
especially useful if your product or service is regional in nature as well and could not
benefit from the magazine’s complete readership. Each magazine does this differently, so
contact the one(s) you are interested in and ask them about their geographic editions.
Some sophisticated magazines even have demographic editions available, which might
also be advantageous. Also, Magazine and television work in different ways Magazine

45
and television advertising work in different ways and in assessing advertising
effectiveness these differences should be taken into account. The measures developed for
television are not necessarily appropriate for magazines. Moreover, exposure to a
magazine ad is under the reader’s control, whereas exposure to a TV commercial is not in
the viewer’s control. Television and magazine advertisements are stored in memory in
different ways. A TV commercial tends to beheld in the mind as a ‘story’. With magazine
advertisements a higher proportion of memories are stored as information about the
product rather than about the ad itself. Consequently, as a criterion of the advertising
efficiency of magazines, measuring the absorption of product messages is more relevant
than ad awareness. Unlike television, magazines offer repeat exposures to the advertising.
The typical reader looks at an average page on more than two occasions.

4. Cinema Advertising
Cinema advertising is a dynamic medium offering advertisers the opportunity to reach
their target consumers in a distraction-free, compelling environment. Advertisers
showcase their brands on an entertainment backdrop and access the star power that drives
consumers to theatres. Cinema advertising is becoming a more essential, strategic part of
the media plan, for many brand categories. Consumers are more likely to consider and
choose a brand when in-cinema advertising is part of the overall media mix. Moviegoers
who saw in-theatre advertising are 44% more likely to remember the ad than consumers
who saw it on TV. Cinema advertising has longevity. Up to one week after seeing
commercial at the movies, nearly half of consumers could name the specific brands they
saw advertised. In terms of reach, it is lower than TV but in terms of impact it is around 5
times higher. There is better ROI on Cinema as a medium when compared with
television. Cinema attendance worldwide has increased rapidly in recent years and this
growth inttendance has seen a parallel increase in the utilization of cinema as an
advertising medium (Val Morgan Cinema Advertising, personal communication 1996).

In addition to the increasing reach of cinema, some researchers have argued that cinema
possesses a number of advantages which make it a more attractive medium than has

46
hitherto been recognized (see Johnson 1981). In the only major study to explore cinema
advertising, Johnson identified the high quality, high resolution presentation offered by
cinema; the "social" aspect of movie going which, he suggested ,ensures decision-makers
view advertising in the company of purchase influencers; the captive environment of
cinema, and the lack of clutter affecting the medium, as reasons for its increasing
popularity. He acknowledged some disadvantages, especially the difficulty of building
frequency (although this is easily addressed through the use of other media within a
specific schedule); the lower reach when compared to traditional broadcast media, and
booking constraints. However, despite these problems, Johnson concluded that cinema
was an under-utilized medium.

5. Radio Advertising
Since its inception, radio has become an integral part of our culture. In some way, it
touches the lives of almost everyone, every day. Radio, as a medium, offers a form of
entertainment that attracts listeners while they are working, traveling, relaxing or doing
almost anything. A farmer, for example, may listen to the radio while he is having
breakfast or plowing his field. People driving to work often listen to the radio. Radio
offers information such as: news, weather reports, traffic conditions, advertising and
music for your listening pleasure. Radio is a relatively inexpensive way of reaching
people. It has often been called the "theater of the mind" because voices or sounds can be
used to create moods or images that if crested by visual effects would be impossible to
afford. You can also negotiate rates for your commercials, or even barter. Stations are
often looking for prizes they can give away to listeners, so its possible to get full
commercial credit for the product or service you offer.

Advantages to radio advertising include:


• The ability to easily change and update scripts are paramount to radio broadcasting,
since news stories can and often do happen live.

47
• Radio is a personal advertising medium. Station personalities have a good rapport with
their listeners. If a radio personality announces your commercial, its almost an implied
endorsement.
• Radio is also a way to support your printed advertising. You can say in your
commercial, "See our ad in the Sunday Times," which makes your message twice as
effective.
• Radio advertising is not without its disadvantages too, such as:
• You cant review a radio commercial. Once it plays, it’s gone. If you did not catch all the
message, you cant go back and hear it again. Since there are a lot of radio stations, the
total listening audience for any one station is just a piece of a much larger whole. That’s
why its important to know what stations your customers and prospects probably listen to.
Therefore, most of the time, you’ll have to buy time on several radio stations to reach the
market you are after. People do not listen to the radio all the time...only during certain
times of day. So, its important to know when your customers or prospects are listening.
For example, if you want to reach a large portion of your audience by advertising during
the morning farm report, you’ll have to specify that time period to the radio station when
you buy the time. Radio as a broadcasting medium, can effectively sell an image...or one
or two ideas at the most. It is not, however, a detailed medium...and is a poor place for
prices and telephone numbers. Radio listeners increase in the spring and summer,
contrary to television audiences which increase in the fall and winter and decrease in the
summer. This is an important aspect to consider when you are choosing advertising
media.

6. Mobile Advertising
The high penetration rate of mobile phones has resulted in the increasing use off hand
held devices to deliver advertisements for products and services. Short Messaging
Service (SMS), in particular, has been very successful. A series of surveys conducted by
A.T. Kearney indicates that the use of mobile information services and SMS has
increased dramatically since 2001. More than 100 billion SMS messages were sent
worldwide in a single year. More than half of the 19–34 age group in Taiwan use SMS at

48
least once a day. The rising popularity of SMS has created a new channel for advertising,
called mobile advertising. Ads are rendered as short textual messages and sent to mobile
phones.

7. Outdoor Advertising
Out-Of-Home (OOH) or Outdoor Advertising is defined as “any type of advertising that
reaches the consumer while he or she is outside the home (or office). This is in contrast to
broadcast, print, or internet advertising, which may be delivered to viewers out-of-home
(e.g. via tradeshow, newsstand, hotel lobby room), but are more-often viewed in the
home or office.”2OOH advertising falls into one of four formats:

• Billboards – Standardized large format advertising displays intended for viewing


from extended distances, generally more than 50 feet (including digital billboards)

• Street furniture – Advertising displays, many that provide a public amenity,


positioned in close proximity to pedestrians and shoppers for eye-level viewing, or at
curbside to influence vehicular traffic (including traffic barriers, benches, bollards, post
boxes, phone boxes, street lamps, street lighting, traffic lights, traffic signs, grit bins,
public lavatories, fountains and memorials, and waste receptacles)

• Transit – Advertising displays affixed to moving vehicles or positioned in the


common areas of transit stations, terminals and airports (including buses, commuter
trains, trucks, taxicabs, and mobile billboards)

• Alternative – new media advertising different from billboards, street furnitures, and
transit. This include mobile projections, cinema, place-based advertising (such as in
malls, golf courses, parking garages, stadiums and arenas, rest areas and

49
resorts),postcards, vending carts, and place-based digital networks (also called digital
displays)

OOH advertising has emerged as a new frontier for what has


traditionally been dominated by TV, radio and print. With a projected growth of 28% in
2007, OOH advertising is now slowly being regarded as a co-equal of traditional media.

Need of OOH Advertising

According to recent studies cited by the Outdoor Advertising Association of America


(OAAA), people are spending more time out of home than in-home. This is widely
influenced by two key factors:
• Increasing mobility of consumers as they spend more time on the road while
commuting to and from places of work and relaxation, in spite of the increasing cost of
fuel
• Increasing number of working individuals per family, itself influenced by an increasing
cost of living and life style.

Furthermore, consumers are increasingly exerting control of their purchase and


consumption habits, demanding the ad content that they want to see when they want to
see it. The increasing clutter of home-based advertising from a burgeoning number of TV
and radio channels, and a widening option of print media from magazines to newspapers,
has made it difficult to make purchase decisions at home. As a result, most consumers are
now making such decisions out-of-home, at that moment in time immediately before the
point of purchase.

50
8. Direct Mail
What makes "direct" mail different than regular mail? Nothing. Its just a way the
advertising world describes a promotional message that circumvents traditional
media(newspaper, radio, TV) and appeals directly to an individual consumer. Usually
through the mail, but other carriers also participate. Direct mail may be used more than
you think. Studies indicate that it is the third largest media expenditure behind television
and newspaper.

Rules to Remember
1. Define your audience. Figure out who you want to reach before developing your direct
mail program. This allows you to specifically target your message to fit common needs. It
is the best advertising medium for "tailoring" your appeal.

2. Locate the right mailing list. You can either build a "house list" by doing the research
yourself and compiling the information on a computer - or you can purchase an "outside
list" from a list house or mailing organization already pre- prepared and ready to go.

3. There are many ways to purchase lists. You can buy them demographically (by age,
profession, habits or business), or geographically (by location, or zip code). Or you can
by a list with both qualities. More than likely, there is a mailing list company in your area
that would happy to consult with you on your needs. If not, there are a number of national
mailing lists available.

4. For assembly, addressing and mailing your project, you also have the choice of doing it
yourself or locating a mailing service company to do it for you. As the numbers of your
direct mail pieces increase, the more practical it is for you to enlist such an organization
for assistance. They also are very good at getting you the lowest postal rates.

5. Consider using a self-addressed reply card or envelope to strengthen return. Use a


Business Reply Postage Number on the envelope and you’ll only pay for the cards which

51
are sent back to you. The blessing (or curse) of direct mail is that there are no set rules for
form or content. The task of deciding what your mailing should have as content, its
design and its message(s) is up to you.

However, remember to attract the readers attention with color and creativity. Use clear,
comfortable writing and make your appeal easy to respond. And of course, coordinate the
mailing with other advertising media if you are also using them in the same campaign. It
can significantly increase the potential return.

9. Specialty Advertising
"Giveaways" -- the pencils, pens, buttons, calendars and refrigerator magnets you see
everyday -- are called "Specialty Advertising" in the advertising business. Chances are,
you have some specialty advertising items right at your desk. Businesses imprint their
name on items and give them away (or sometimes sell them at very low cost) in order
that:
You notice their name enough times on the item to build "top-of-the-mind" awareness. So
when you need a restaurant, for instance, you think of their name first.
You appreciate the goodwill of the company giving you the item and eventually return
the favor by giving them some business.

These are both long-term advertising investments that can take months or years to turn
into actual sales.

First, select the best item that would tell your story most effectively. While an accountant
can give away an inexpensive calculator, the same item may not be ideal for a
hairdresser. A comb or brush might be more appropriate in that case.

Second, decide what you are going to say on the item. A company slogan? Address
directions? Since you have a relatively small area, you must be very concise and direct.

52
Third, figure out your method of distribution. Are you going to send them to each
customer through the mail? If so, how much will that cost? Will you have them in a big
bowl that says "take one"? Distribution is just as important to consider as buying the
item.

Just as there are many reputable specialty advertising professionals in your area, the
industry is notorious with a lot of high-pressure telephone and mail solicitors who of ten
give specialty advertising a bad name. Don’t buy specialty advertising through the mail
without checking the quality and prices with trusted local representatives first. And,
buying specialty advertising over the telephone is not recommended at all. Specialty
advertising is a unique way to generate goodwill and put your name on items that people
remember. But don’t do it unless you have an item and distribution plan that will benefit
your business.

WHY & WHEN TOADVERTISE


Advertising as a tool to marketing not only reaches those who buy , but also those whose
opinions or authority is counted for example a manufacturer of marble tiles and building
boards advertises not only to people who intend to build houses but also to architect and
engineers. While the manufacturers of pharmaceuticals products advertise to doctors as
well as to the general public. At time it is necessary for a manufacturer or a concern to
advertise things which it does not sell but which when sold stimulates the sales of its own
product. There are concerns like electric heaters, iron etc. because the use of these
increases the demand for their products. Advertising should be used only when it
promises to bring good result more economically and efficiently as compared to other
means of selling. There are goods for which much time and efforts are required in
creating a demand by sending salesman to prospective buyers than by simply advertising
them. In the early days of the cash register in America it was sold by specially trained
salesman who called on the prospective users and had the difficult task of convincing
them that they could no longer carry on with the old methods, and that they urgently

53
needed a cash register. In our country certain publishers have found it less costly to sell
their books by sending salesman from house to house among prospective buyers than to
advertise them. In these two examples the cost of creating demand would be too high if
attempted by advertising alone under such circumstances advertising is used to make the
salesman acceptable to the people they call upon to increase the confidence of the public
in the house. Naturals when there are good profits competitors will be attracted and they
should be kicked out as and when sufficient capital is available by advertising on a large
scale. Immediate result may not justify the increased expenditure but it will no doubt
secure future sales.

DESIGNINGADVERTISING CAMPAIGN:
An advertising is an organized series of advertising messages. It has been defined as "a
planned, co-ordinate series of promotional efforts built around a central theme and
designed to reach a specified goals." In other words, it is an orderly planned effort
consisting of related but self – contained and independent advertisements. The campaign
may appear in one more media. It has single theme or keynote idea and a single objective
or goal. Thus, "a unified theme of content provides psychological continuity throughout
the campaign while visual and oral similarity provide physical continuity. In short run, all
campaign want pre-determined psychological reaction in the long run, practically all
campaigns have sales goal. The series of advertisements used in the campaign must be
integrated with the sales promotional efforts and with the activities of the sales force.
Campaign vary in length some may run only for a few days, other for weeks, yet other for
a season or the entire year. Usually a range of 3 to 6 months includes many campaigns.
Many factors influences campaign length such as competitors advertising media, policies,
seasonal falls curves of the product involved, the size of the advertising funds, campaign
objectives and the nature of the advertisers marketing programme.

54
OBJECTIVES OF CAMPAIGN
The advertising campaign, especially those connected with the consumers aims at
achieving these objectives :

i) To announce a new product or improve product.

ii) To hold consumers patronage against intensified campaign use.

iii) To inform consumers about a new product use.

iv) To teach consumers how to use product.

v) To promote a contest or a premium offer.

vi) To establish a new trade regional, and

vii) To help solve a coca regional problem.

The institutional advertising campaign on the other hand, have these objectives.
i) To create a corporate personality or image.

ii) To build a company prestige.

iii) To keep the company name before the public.

iv) To emphasize company services and facilities.

iv) To enable company salesman to see top executive consistently when making sales
calls, and

55
vi) To increase friendliness and goodwill towards the company.

Developing the campaign programmes


The advertising campaigns are prepared by the advertising agencies, which work an
behalf of their clients who manufacture product or service enterprises, which have
services to sell. The word campaign is used because advertising agencies approach their
task with a sum Blanca of military fanfare in which one frequently hears words like target
audience logistics, zero in and tactics and strategy etc. The account executive co-
ordinates the work in a campaign. The creation of an advertising campaign starts with an
exploration of consumers habits and psychology in relation to the product. This requires
the services of statistical trained in survey techniques and of others trained in social
psychology. Statisticians select samples for survey which are done by trained
interviewers who visits individuals, included in the sample and ask question to find out
about their taste and habits. This enquiry often leads to a change in a familiar product.
For instance bathing soap may come in several new colors or cigarette in a new packet or
talcum powder in another size. Such interviews are often quite essential to find out the
appeal of advertising message for a product that would be most effective with consumers.
David Ogilvy describes a consumers survey to find out the most meaningful benefit in
which women are interested when they buy a face cream. The largest preference as given
to "Cleans deep into pores" followed in order of importance by prevent dryness, "is a
complete beauty treatment, recommended by skin doctors "makes skin look younger
contains estrogenic hormones, pasteurized for purity, prevent skin form aging, smooth
our wrinkles ogi lvy concludes, form this voting come one of Helena Rubinsteins most
successful face creams. We christened it deep cleanser, thus, building the winning form
into name of the product. After getting the data the account executive puts together the
essential elements of his clients brief, interprets the research findings and draws up what
he calls the "advertising strategy".

56
STAGE INADVERTISING CAMPAIGN
Several steps are required to developed an advertising campaign the number of stages and
exact order in which they are carried out may vary according to an organisations
resources, the nature of its product and the types of audiences to be reached. The major
stages/step are :

1. Identifying and analyzing the advertising.


2. Defining advertising objects.
3. Creating the advertising platform.
4. Determining the advertising appropriation.
5. Selection media plan.
6. Creating the advertising message.
7. Evaluating the effectiveness of advertising.
8. Organizing of advertising campaign.

1. Identifying & Analyzing the Advertising target :


Under this step it is to decided as to whom is the firm trying to reach with the message.
The advertising target is the group of people towards which advertisements are aimed at
four this purpose complete information about the market target i.e. the location and
geographical location of the people, the distribution of age, income, sex, educational
level, and consumers attitudes regarding purchase and use both of the advertising product
and competing products is needed with better knowledge of market target, effective
advertising campaign can be developed on the other hand, if the advertising target is not
properly identified and analyzed the campaign is does likely to be effective.

57
2. Determining the advertising objectives :
The objectives of advertisement must be specifically and clearly defined in measurable
terms such as "to communicate specific qualities about a particulars product to gain a
certain degree of penetration in a definite audience of a given size during a given period
of time", increase sales by a certain percentage or increase the firms market shares." The
goals of advertising may be to :

i) Create a favourable company image by acquainting the public with the services
offered available to the employees and its achievements.

ii) Create consumers or distributor awareness by encouraging requests providing


information about the types of products sold; providing information about the
benefits to be gained from use of the company’s products or services; and
indicating how product (or services) can be used;

iii) Encourage immediate sales by encouraging potential purchasers through special


sales contests, getting recommendation of professional people about company’s
products etc. iv) It secures action by the reader through associating ideas,
repetition of the same name in different contexts, immediate action appeal.

3. Creating the Advertising platform :


An advertising platform consists of the basic issues or selling points that an advertiser
wishes to include in the advertising campaign. A single advertisement in an advertising
campaign may contain one or more issues in the platform. A motorcycle producers
advertising platform should contain issues which are of importance to consumers filling
and such issues also be those which the competitive product do not posses.

58
4. Determining the Advertising Appropriation:
The advertising appropriation is the total amount of money which marketer allocates. For
advertising for a specific time period. Determining the campaign budget involves
estimating now much it will cost to achieve the campaigns objectives. If the campaign
objectives are profit relating and stated quantitatively, then the amount of the campaign
budget is determined by estimating the proposed campaigns effectiveness in attaining
them. If campaigns object is to build a particular type of company image, then there is
little basis for predicting either the campaigns effectiveness or determining the budget
required.

5. Selecting the Media :


Medias election is an important since it costs time space and money various factors
influence this selection, the most fundamental being the nature of the target market
segment, the type of the product and the cost involved. The distinctive characteristics of
various media are also important. Therefore management should focus its attention on
media compatibility with advertising objectives.

Media Form
1. Press Advertising or Print
i) Newspapers City, Small town, Sundays, Daily, weekly, Fortnightly, quarterlies,
financial and annuals, English, vernacular or regional languages.
ii) Magazines General or special, illustrated or otherwise, English, Hindi, Regional
language.
iii) Trade &Technical Journals, Industrial Circulated all over the country yearbooks,
commercial, directories, and among the industrialist and telephone, Directories,
references business magnates. books &annuals.

59
2. Direct Mail Circulars, catalogues, leaflets, brochures, booklets, folders, colanders,
blotters, diaries & other printed material.

3. Outdoor or Traffic Poster and bills on walls, railways stations platforms outside public
buildings trains, buses.

4. Broad castor radio and T.V. Spot, Sectional or national trade cost

5. Publicity Movie Slides and films non theatrical and documentary films metal plates
and signs attaches to trees.

6. House to house Sampling , couponing, free gifts, novelties, demonst- rations.

7. Dealer aids Counter and widows display demonstration given by retailer or the
advertises goods.

8. Internet Today, Internet is a big spot for advertising.

So these are the media of the advertising campaign of the selecting of the media.

6. Creating the Advertising Messages :


This is an important stage of advertising campaign. The contents of the message has to be
very carefully drafted in the advertisement. Characteristics of person in the advertising
target influence the message content and form. An advertisers must use words, symbols
and illustration that are meaningful, familiar and attractive to those persons. The type of
media also influence the content and form of the message.

60
7. Evaluating the Effectiveness of Advertising :

The effectiveness of advertising is measured for a variety of reasons :

a) To determine whether a campaign accomplished its advertising objects.

b) To evaluate the relative effectiveness of several advertisements to ascertain which


copy, illustrations or layout is best.

c) To determine the strengths and weaknesses of various media and media plans.

In other words, measuring advertising effectiveness is needed to determine whether


proposed advertisement should be used and if they will be now they might be
improved; and whether going campaign should be stopped, continued or changed. In
accomplishing these purposes, pretests and post test are conducted. The former tests
before exposing target consumers to advertisements and the letter after consumers
have been exposed to advertisements and the letter after consumers have been
exposed to advertisements. For an effective advertising programme, the advertising
manager requires a basic understanding of the medium that is going to carry it. For
effectively using advertising the management must test advertising to know which of
the advertisement to know which of the advertisement have proved profitable and
why as compared to others.

61
CHAPTER:-2
LITERATURE REVIEW

62
Literature Review

Advertising
Seth and Gupta (2013)studied the highly competitive, dynamic and technology
driven business circumstances, marketers are under steady pressure to deliver the best.
Organizations are continuously improving and upgrading themselves to meet customer
expectations and demands. Technology has not only changed the way in which business
is done in modern times but has also transformed the way to reach out to target audience.
Marketers have identified most recent media options to communicate and convince
potential customers. Numerous scholars have studied the research domain of advertising
and have tried to recognize different measures of advertisement effectiveness in context
of various media. The objective of this paper is to critically review accessible literature
on advertisement effectiveness in context of varied advertising media, recognize major
gaps in the literature and identify future research prospects on the basis of critical
analysis of literature.

Corvi(2013) studied The aim of the paper is to propose a simple approach to monitor
and control the encoding phase, too often neglected by the doctrine and operators in the
communication process. The paper is discusses a possible methodology to investigate the
degree of coincidence / discordance between what is conveyed through the advertising
and what is actually understood by some consumers. The object of investigation is the
verbal text of the spot in order to verify the level of understanding of the message and, if
necessary, to find the reasons of a wrong perceived meaning.

TELLIS(2012) studied Based on over 260 estimates, the mean elasticity of sales or
market share to advertising is 0.1 percent. Another 450 field experiments suggest that

63
changes in media, product, target segments, advertising scheduling, and advertising
content are more likely to yield changes in sales than do changes in advertising weight.
Numerous other studies suggest that advertising wear-in does not exist or occurs quite
rapidly while advertising wear-out occurs more slowly. Details of and differences in
these results by condition are discussed in this article.

Hosein,Javadi, and Baluchianzad(2012) studied The importance of creativity in


advertising as one of the primary factor for advertising effectiveness has been much
advocated by advertising professionals and academicians particularly in a cluttered
media. Industry experts argue that advertisements have to be more creative to break
through the greater media clutter and develop an impression for the brand. This study
examines the potential effectiveness of award- winning television advertisements in India
in both single and three advertising exposures.
Both creative and control advertisements were embedded in a television program which
were shown to two separate groups of research subjects with single and three advertising
exposures respectively. After watching the advertisements, Subjects’ tapped their
responses about brand and advertisement recall, attitude and lastly purchase intent.
Contrary to expectations, the finding of this study in single exposure does not verify the
superior performance of creative advertising in terms of recall, brand and advertisement
attitude and purchase intent. However, in three exposures, creative advertisements
developed significantly more favorable brand and advertisement attitude and greater
unaided brand recall than control advertisements.
Creative advertisements developed greater mean purchase intent for the advertised brands
than control group of advertisements; however, it just slipped from attaining significance.
Being an optimum and more mature response of research participants in three exposures
as compared to single exposure, the results of this study in three exposures conclude that
creative advertisements are really more effective than conventional advertisements and
bestow value to the advertised brands.

Zuzana, ,Jaroslava and Radovan (2011) studied Advertising creates a communication


relationship between the producer or the provider of a service and the target group or the

64
consumers. The main task of psychology of advertising is to motivate the consumer to
take the desired action, to buy the promoted product or service.
That is why more and more sophisticated forms and tools for reaching the goal set by the
advertisment creator are used. The aim of the presented study was to determine whether
an individual's temperament plays a major role in favouring a particular advertising spot
and to identify which type of advertising corresponds with the type of a consumer’s
personality temperament.
The research sample consisted of 126 respondents with different types of temperaments,
aged between 22 to 68 years, who filled out two methodologies: Assessment of the
television advertising in relation to personality typologies and the EPI – Eysenck
Personality Inventory . By means of this research, the existence of a relationship between
temperament of individuals and their perception of various types of advertising spots
(funny, calm, nostalgic, dynamic) was recorded.
A successful advertisement should be aimed properly at a given group of individuals
whom it should effectively reach. For that reason, psychology becomes an essential part
in marketing and advertising strategies.

Harald(2010) studied Firms are under increasing pressure to justify their marketing
expenditures. This evolution toward greater accountability is reinforced in harsh
economic times when marketing budgets are among the first to be reconsidered. To make
such decisions, managers must know whether, and to what extent, marketing's
effectiveness varies with the economic tide; however, surprisingly little research
addresses this issue. Therefore, the authors conduct a systematic investigation of the
business cycle's impact on the effectiveness of two important marketing instruments:
price and advertising. To do so, they estimate time-varying short- and long-term
advertising and price elasticities for 150 brands across 36 consumer packaged goods
categories, using 18 years of monthly U.K. data from 1993 to 2010. The long-term price
sensitivity tends to decrease during economic expansions, whereas long-term advertising
elasticities increase. During contractions, the long-term own and cross price elasticities
increase. Moreover, throughout the observation period, the short-term price elasticity

65
became significantly stronger. Finally, patterns differ across categories and brands, which
presents opportunities for firms that know how to ride the economic tide

Mike(2013) studied the application of an integrated econometric time‐series model for


advertising effectiveness. The model form gives rise to three possible advertising effects:
brand loyalty, current effects (both simple and compound) and carryover effects. The
inherent nature of these effects is related to the degree of involvement and the affective or
cognitive aspects of the purchase decision. Consequently, the positioning of the product
on the Foote, Cone & Belding grid may be used to hypothesize the nature of effects. The
results of the application of this model to new car purchases in the South African market
by media type lead to the propositions that: (1) the creative devices and content of an
advertisement determine whether it will be effective but not the magnitude of the effect;
(2) the magnitude of the effectiveness of an advertisement is dictated by the extent to

which the medium in which it is placed is used .


.

66
CHAPTER 3
OBJECTIVES OF THE STUDY

67
Objectives
1. To understand the importance of promotion for TCS -ION employes.
2. to understand the promotional tools and techniqes which is used by TCS -ION.
3.To findout the factos which is effect the promotional stiatiges.
4. To findout the effectiveness of promotoinal tools.
5. To understand the promotional tools and types which is used by TCS -ION

68
CHAPTER: - 4
RESEARCH METHODOLOGY

69
Research Methodology
Research methods are used to provide a systematic approach to research and helps in
ordering the data collected in order to be to analyze it and conclude whether it answer eda
particular question or not. There are basically, two types of researches, Primary research
and secondary research. We have used both the researches in our study. Our primary
research supports the knowledge and curiosity behind our secondary research.

“IF A MAN WILL BEGIN WITH CERTAINITIES HE SHALL END IN DOUBTS;


BUT IF HE WILL BE CONTENT TO BEGIN WITH DOUBTS HE SHALL END
IN CERTAINITIES “ .(Francis Bacon)

Research is a scientific and systematic search for pertinent information on a specific


topic. Research is an art of scientific investigation. It is an academic activity and thus the
term should be used in a technical sense. Research comprises defining the problem,
formulating hypothesis or suggesting solutions; collecting organizing and evaluating
data; making deductions and reaching conclusions to determine whether they fit the
formulating hypothesis.
Research methodology is a way to systematically solve the research problem. The
research methodology included the various methods and techniques for conducting a
research. “Research is a systematic designing, collection, analysis, and reporting of data
and finding relevant solution to a specific situation or problem.” Research is thus, an
original contribution to the existing stock of knowledge making for its advancement, the
purpose of research is to discover answers to the questions through the application of
scientific procedure.

My research project has a specified framework for collecting the data in an effective
manner. Such framework is called “RESEARCH DESIGN”.

70
The research process which was followed by me consisted of following steps:
A. DEFINING THE PROBLEM & RESEARCH OBJECTIVES
It is said, “A problem well defined is half solved”. The first step is to define the
problem under study and decide the research objective. The definition of problem is
to understand and study the tools and technique of promotional mix.
B. DEVELOPING THE RESEARCH PLAN:
The second stage of research calls for developing the efficient plan for gathering the
needed information. Designing a research plan calls for decision on the data sources,
research approach, research instruments, sampling plan and contacts method.
The development of Research plan has the following Steps:
 DATA SOURCES
Two types of data were taken into consideration i.e. primary data and secondary
data. My major emphasis was on gathering the primary data. Secondary data has
also been used to make things more clear.
i. PRIMARY DATA: Direct collection of data from the source of information,
personal interviewing, questionnaire, survey.
ii. SECONDARY DATA: Indirect collection of data from sources containing past
or recent information like company reports, company websites and books.
 RESEARCH APPROACH

Surveys are best suited for Descriptive Research. Surveys are undertaken to learn
about people’s knowledge, beliefs, preferences, satisfactions and so on and to
measure these magnitudes in the general public. Therefore I have done this Survey
for the Descriptive Research Process.
1. RESEARCH INSTRUMENT
A close friendly questionnaire was constructed for the survey. A Questionnaire
consists a set of statements was presented to respondents for their answers
2. SAMPLING PLAN
The sampling plan calls for two decisions.
(a) Sampling unit: Who is to be surveyed? The employees of TCS iON Patiala.
(b) Sample Size: 50
Sample Size:
71
For the purpose of the study, the selection of the customer is done with the help of sales
department. The samples are selected randomly. The following table summarized the
sample size in terms of units in nature of job.
NATURE OF SAMPLE NO OF SAMPLE

RESPONDENTS 50

(B) THE SAMPLE SIZE IS TAKEN AS 50 RESPONDENTS:


(C) CONTACT METHODS
Once the sampling plan has been determined, the question is how the subject should
be contracted i.e. by telephone, mail or personal interview. Here in this survey, I have
contacted the respondents through personal interviews and providing them with the
questionnaire so that they could fill their responses.

72
Limitations of the study
1. Due to lack of time the scope of research is limited.
2. Marketing Information System is has been less developed in the Indian markets which
makes it difficult to understand it in a short span.
3. Very few people have knowledge about the different segments of marketing information
system.
4. Lack of awareness about maintenance of the records of the customers among Indian
companies is yet another limitation of my study.
5. The sample may not be representing the whole population.

73
CHAPTER:-5
DATA ANALYSIS
AND
INTERPRETATION

74
Q1. Do you think that promotional tools are necessary to run a
company in market ?
A) Agree B) Disagree C) Strongly agree D) Strongly Disagree
Data collection
OPINION AVERAGE
Agree 20%
Disagree 5%
Strongly Agree 70%
Strongly Disagree 5%

Pie Chart

Strongly Disagree
5%

Agree
20%

Agree
Disagree
Disagree
5%
Strongly Agree
Strongly Disagree

Strongly Agree
70%

Interpretation
According to the bar chat,70% respondents are strongly agree with that the
promotional tools are necessary to run a company in market and 5%
respondents are disagree,20% respondents are agree and 5% respondents
are strongly disagree with this statement.

75
Q2. Do you want think that promotional scheme helps to increase the
sale and value of company ?
A) Agree B) Disagree C) strongly agree D) Strongly Disagree
Data collection
OPINION AVERAGE
Agree 10
Disagree 5
Strongly Agree 80
Strongly Disagree 5

Pie Chart

Strongly
Disagree
Disagree
5%
Agree 5%
10%

Agree
Disagree Strongly Agree Strongly Disagree

Strongly Agree
80%

Interpretation
According to the bar chat,80% respondents are strongly agree with that the promotional

scheme helps to increase the sale and value of company and 5% respondents
are disagree,10% respondents are agree and 5% respondents are strongly
disagree with this statement.

76
Q3. Do you think that Tcs-ion has need of advertiesment to create a
good image in the market as well as to stay in that field ?
A) Agree B) Disagree C) Strongly agree D) Strongly Disagree
Data collection
OPINION AVERAGE
Agree 85%
Disagree 3%
Strongly Agree 10%
Strongly Disagree 2%

Pie Chart
Strongly disagree Strongly agree
10% 2%
Disagree
3%

Agree
Disagree Strongly disagree Strongly agree

Agree
85%

Interpretation
According to the bar chat,85% respondents are strongly agree with that the TCS-

ION has need of advertisement to create a good image in the market as well
as to stay in that field and 3% respondents are disagree,10% respondents are
agree and 2% respondents are strongly disagree with this statement.

77
Q4. According to you what type of sources used by Tcs-ion to make our
promotional activities?
A) Advertisment B) sale promotion C) word of mouth D) other tools
Data collection
OPINION AVERAGE

Adevertisement 50%

Sale promotion 20%

Word of mouth 15%

Other tools 15%

Pie Chart

Other Tools
15%

Advertisement

Word of Mouth Sale Promotion


15% Advertisement Word of Mouth
50% Other Tools

Sale Promotion
20%

Interpretation
According to the bar chat,50% respondents are say advertisement with that the
type of sources used by TCS-ION to make our promotional activities and
15% respondents are say word of mouth,20% respondents are say sale
promotion and 15% respondents are say other tools with this statement.

78
Q5. According to you what is the main purpose of advertisement ?
A) Awareness B) customer attachment C) sale increase D) all and above
Data collection
OPINION AVERAGE

Awareness 70%

Customer attachment 20%

Sale increase 10%

All and above 00%

Pie Chart
All and Above
0%
Sale increase 10%

Customer attachment 20%

Awearness
Customer attachment Sale increase
All and Above

Awearness
70%

Interpretation
According to the bar chat,70% respondents are say awareness with that the main

purpose of advertisement and 20% respondents are say customer


attacment,10% respondents are say sale increase and 0% respondents are say
all and above with this statement.

79
Q6. According to you how much money will company spend upon
promotional activites ?
A) 10000 B) 10000-100000 C) 100000-above
Data collection
OPINION AVERAGE

10000 70%

10000-100000 10%

100000-above 20%

Pie Chart

100000-above
20%

10000
10000-100000 10000-100000
10% 100000-above

10000
70%

Interpretation
According to the bar chat,70% respondents are say company spend upon

promotional activites 20% respondents are company spend upon


promotional activites,10% respondents are say sale increase and 10%
respondents are say all and above with this statement

80
Q7. Has company will conduct the inhibitions?
A) yes B) no
Data collection
OPINION AVERAGE

yes 64

no 36

Pie chart

no 36%

yes no
yes 64%

Interpretation
According to bar chat 64% respondents are say yes with that the company will
conduct the enibitions and 36% respondents are say no with that statement.

81
Q8. Has company conduct the seminar in college?
A) yes B) no
Data collection
OPINION AVERAGE

yes 70

no 30

pie chart

Interpretation

no 30%

yes no

yes 70%

According to bar chat 70% respondents are say yes with that the company
conduct the seminar in college and 30% respondents are say no with that statement.

82
Q9. Do you think that Tcs-ion has a effective promotional tools and
techniques ?
A) yes B) no
Data collection
OPINION AVERAGE

yes 60

no 40

Pie chart

no 40%
yes
no
yes 60%

Interpretation
According to bar chat 60% respondents are say yes with that the Tcs-ion has a
effective promotional tools and techniques and 40% respondents are say no with
that statement.

83
Q10. what type of promotional stratigies as well as comprtition for
advertisement ?
A) Advertisement stretigies B) sale promotional stretigies C) discounted stretigies D)
others
Data collection
OPINION AVERAGE

adevtisement stretieges 50

sale promotional 20

discounted stretiges 30

other 0

Pie chart

discounted other
stretiges 23% 0%

Adevtisement
Adevtisement
adevtisement stretieges sale promotional discounted stretiges
39%
other

sale promotional
23% adevtisement
stretieges 15%

Interpretation
According to the bar chat,50% respondents are say advertisement stretiges with
that the type of promotional stratigies as well as comprtition for advertisement and 20%
respondents are say sale promotion,30% respondents are say discount stretiges and 0%
respondents are say other with this statment.

84
Q11. Do you think that services provided a good ?
A) yes B) no
Data collection
OPINION AVERAGE

yes 80

no 20

pie chart

no
20%

yes no

yes 80%

Interpretation
According to bar chat 80% respondents are say yes with that the services provided a
good and 20% respondents are say no with that statement.

85
Q12. Has company used advertisement ?
A) yes B) no
Data collection
OPINION AVERAGE

yes 60

no 40

pie chart

no
40%
yes no
yes
60%

Interpretation
According to bar chat 60% respondents are say yes with that the company used
advertisement and 40% respondents are say no with that statement.

86
Q13. what type of advertisement used by Tcs-ion ?
A) Conventional B) non-conventional C) others
Data collection
OPINION AVERAGE

convenstional 40

non-conventional 40

others 20

Pie chart

others
20%

convenstional convenstional
40% non-conventional
others
non-conventional
40%

Interpretation
According to the bar chat 40% respondents are say conventional with that the type
of advertisement used by Tcs-ion and 40% respondents are say non-conventional and
20% respondents are say other with this statement.

87
CHAPTER : - 6
FINDINGS
AND
SUGGESTIONS

88
Findings
1. Promotional tools helps to run a company in market becouse it help increase the
sales and value of company.
2. Tcs is creating a advertisment police because it helps to make a good image in
market and stay in that filed.
3. Advertisment,sale promotion,wordof mouth,discountare the major toolswhich used
by tcs-ion for promotion.
4. Finanace,competitor,hr sources are the major factors which effect promotion
stretegies. 5.The promotional techniqies is not much effective so their is need of changes
in that advertisment stratigies,sale promotion,and discount.
6. Customer satisfaction also effect the promotion tecniques advertisement is
major resourse on tcs for promotion.

89
Suggestions
The main aim of suggestions is to bring about certain level of improvements and for
amendments. These suggestions are only for the shortcomings that were observed during
the training and as per the research done in the overall proceedings of TCS iON Limited
located at Leela bhawan, Patiala.
The study proved that the marketing tactics used at TCS iON is very effective, however
certain suggestions that could be given to improve upon the process are as follows:
 Advertisements that are rarely used as a source could be brought into use as it
would make more people aware about the offers and more number of customers
could be received in turn.
 The organisation can reduce the rigidness in terms of giving sales target according
to the market conditions.
 The sales can be increased if the evaluation of the old services is done according
to the market value of those.

90
CHAPTER : - 7
CONCLUSION

91
Conclusion

The information in previous chapters brought forward in front of us various facts and
behaviors of the people, which we can use in any possible way. The above study is like
water, which can take any shape of knowledge and the any conclusions can be derived
from it based on the different needs of the people and companies. Our job was to uncover
various facts, which could be further shaped with any conclusions. Your needs and
requirements could be put in front and being matched with the facts stated in the analysis
and findings and your own conclusions can be derived, which could be further put to use.
All mediums of advertising, have their different functions, cover different needs and have
different set of target audience. The needs of the business should be analyzed first and
then the above information can be used to understand, which medium of advertising
could be best for any business.

92
CHAPTER : - 8
BIBLIOGRAPHY
AND
REFERENCES

93
Bibliography

Books

• Marketing Management by Philip Kotler

• Advertising Management by Rajiv Batra, John G. Myers. Research papers

Journals
• International Journal of Social, Education, Economics and
Management Engineering Prateek Maheshwari, Nitin Seth, Anoop Kumar Gupta
, Advertisement Effectiveness: A Review and Research Agenda,Vol:8, No:12, 2014.

• The Effectiveness of Advertising: a Literature Review Elisabetta Corvi and


Michelle Boner Feb 18, 2012

• Marshall School of Business University of Southern California GERARD J. TELLIS


Generalizations about Advertising Effectiveness in Markets 05/19/09

• Determining the effect of ethics on advertising effectiveness with Mellat Bank


customers

• INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN


BUSINESS COPY RIGHT Institute of Interdisciplinary Business Research 96 Ali
Sanayei , Mohammad Hosein Moshref Javadi , Ruhollah Baluchianzade JANUARY
2012

94
Journal of Finance and Economics, Zuzana BIRKNEROVÁ, , Radovan
BAČÍK, Jaroslava GBUROVÁ, The Effectiveness of Advertising in Relation to the Personality of the Cons

• American Marketing Association Harald J. Van Heerde Price and Advertising


Effectiveness over the Business Cycle Volume 50, Issue 2 (April 2013)

• European Journal of Marketing Advertising Effects and Effectiveness, Mike T.


Bendixen (2012 )

95
96

You might also like