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AKSHARAINSTITUTE OF MANAGEMENT & TECHNOLOGY.(Approved by AICTE, New Delhi. & Affiliated to Sri Venkateswara University, Tirupati.)

Prepared by: M. Subramanyiam Reddy., MBA., (PhD)., | I – CET CODE: AMTT 1

314 – ADVERTISING AND SALES PROMOTIONMANAGEMENT

UNIT – IINTRODUCTION TO ADVERTISING

Q1: What is advertising? Explain the type ofAdvertising process?

Ans: Advertising is a message designed to promote aproduct, a service, or an idea. The purpose ofadvertising is to sell products or services. Businessfirms, charitable trusts and government agencies useadvertising to promote their products, services andideas.Definitions:DAGMAR: Defining Advertising Goals for MeasuredAdvertising Results (Russell Coley in 1950)AIDA: Attention, Interest, Desire, Action(Ad shouldattract attention, gain interest arouse a desire and resultin action)Advertising is any form of paid non-personalpresentation of ideas, goods, or services for the purposeof inducing people to buy. -WEELER.Finally: Advertising is a promotional activity whichaims to sell a product or service to a target audience.

Advertising theory:The model of Clow and Baack clarifies the objectivesof an advertising campaign and for each individualadvertisement. The model postulates six steps a buyermoves through when making a purchase:1. Awareness2. Knowledge3. Liking4. Preference5. Conviction6. Purchase

Types of Advertising:o Print Advertisingo Outdoor Advertisingo Broadcast Advertisingo Covert Advertisingo Surrogate Advertisingo Public Service Advertisingo Celebrity Advertising

Types of Advertising:

Product – Related Advertising

o Pioneering Advertisingo Competitive Advertisingo Retentive Advertising

Public Service Advertising Functional Classificaiton

o Advertising Based on Demand Influence Level.o Primary Demand (Stimulation)o Selective Demand (Stimulation)

Institutional Advertising Product Advertising

o Informative Product Advertisingo Persuasive Product Advertisingo Reminder-Oriented Product Advertising

Advertising based on Product Life Cycleo Consumer Advertisingo Industrial Advertising

Trade Advertisingo Retail Advertisingo Wholesale Advertising

Advertising Based on Area of operationo National advertisingo Local advertisingo Regional advertising

Advertising According to Medium Utilized

Q2: What is meant by Advertising Process? Discussabout Advertising Campaign Planning?

Ans: Advertising process refers to series of steps takenby advertiser to plan, design, execute and evaluate theadvertising campaign.













































Advertising Campaign Planning:An advertising campaign is a systematic effort toachieve some predetermined objectives. It may be apolitical campaign for eclections or a social campaignto raise money, or a systematic effort to promote aproduct or service.An advertising campaign includes a series of ads placedin various media, that are designed to meet objectivesand are based on an analysis of marketing andcommunication situation.

- Dunn and Barban.

Steps in Planning an advertising Campaign:

UNIT – IIADVERTISING CREATIVITY

Q3: Explain the Adverti s ing creativity?Ans: Creativity is the soul of advertising andbranding. It is what gives life to messages aboutproducts and services that may otherwise beboring or insignificant in the hearts and minds oftarget customers.

Advertising creativity is the ability to generate fresh,unique and appropriate or relevant ideas that can beused as solutions to Communication problems.

Determinants of Creativity:1.Originality: Ads contains elements that are rare,surprising, or move away from the obvious andcommonplace.2. Flexibility: Ads that contain different ideas or switchfrom one perspective to another.

3. Elaboration: Ads that contains unexpected details orfinish and extend basic ideas so they become moreintricate, complicate and sophisticated.4. Synthesis: Ads that combine connect or blendnormally and unrelated objects or ideas.5. Artistic value: Ads that contain artistic verbalimpressions or attractive shapes and colors.PLANNING CREATIVE STRATEGY:

The Creative Process:English sociologist Graham Walls outlined the

four steps in creative process as follows:

Fig: 1.1 Graham Walls Creative Process

Step 1: Preparation:Gathering background information needed to solvethe problem through research and study.

Step 2: Incubation: Getting away and letting ideasdevelop.

Step 3: illumination: Seeing the light or solution

Step 4: Verification: Refining and polishing the ideaand seeing if it is an appropriate solution.




- Dunn and Barban.

















- Dunn and Barban.
















One of the most popular approaches to creativityin advertising was developed by James Webb Young,a former creative vice president at the J. WalterThompson agency. Young’s model of the creativeprocess contain five steps:

Fig 1.2 James Webb Young Creative Process

Step 1: Immersion: Gathering raw materialand information through background research andimmersing yourself in the problem.Step 2: Digestion: Taking information, working itover, and wrestling with it in the mind.Step 3: Incubation: Putting the problems out of yourconscious mind and turning the information over tosubconscious to do the work.Step 4: illumination: The birth of an idea—The“Eureka! I have it” phenomenon.Step 5: Reality or Verification: Studying the idea tosee if it still looks good or solves the problem, thenshaping the idea to practical usefulness.

Q4: Explain Creative Strategy Implementation andEvaluation?Ans: Creativity is the soul of advertising and branding.It is what gives life to messages about products andservices that may otherwise be boring or insignificantin the hearts and minds of target customers.Appeals and Execution Style:

Informational / Rational Appeals:

Feature: Focus on the dominant product traits.Competitive: Makes comparisons to other brands.Price: Makes Price offer the dominant point.News: News announcement about the product.Popularity: Stresses the brand’s popularity.

Appealing to Personal States or Feelings:

AD Execution Techniques:



UNIT - IIIESTABLISHING OBJECTIVES

Q5: Explain the objectives and Budgeting forAdvertising?

Ans: An advertising budget is the money a company iswilling to set aside to accomplish its marketingobjectives. When creating the advertising budget, acompany must weigh the trade-offs between spendingone additional advertising dollar with the amount ofrevenue that dollar will bring in as revenue.

Objectives of Advertising:Important objectives of advertising:

To Inform: To inform the customers about the new

product. To build a company image. Giving information regarding the features of

the new product. Giving ideas about the new uses of the product. Provide a good impression about the product.

To Persuade: Persuading the buyers to purchase the product

as soon as possible. Encouraging buyers to switch from competitors

product to our product. Changing the perception about the product. Building brand preference.

To Remind: Reminding the customers that the product is

readily available in the market. Reminding the buyers where to buy the

product. Reminding buyers that the product may be

needed in the near future eg: Umbrella

Advertising Budgeting:

It defines how much to spend on advertising. It is one of an important decision. It will not be same for every companies &

industries.Factors to Consider While Setting AdvertisingBudget: Stages in the product life cycle:- New product

have to spend more on advertising than existingproducts.

Market share and consumer base:- Companieswhich have high market share usually require lessfor advertising.eg: Apple products.

Advertising frequency:- Number of repetitionsneeded to put.

Competition:- A product which facing highcompetition have to spend more on advertising.

Product substitutability:- Commodities like beer,soft drinks, cigarettes etc require heavy advertisingto establish a different image.

Advertising Budgeting Methods: Historical Method





















































Task Objective Method: Bottom – UP Percentage –of-sales Method Competitive Methods All you can afford Method.

Functions of Advertising Agency:

Q6: What are the important ethical and Economicaspects of Advertising?Ans:

Social aspects of advertising:Advertising as a part of firm’s marketing effort operatesin the society. It has to therefore follow the socialnorms.Key areas of debate regarding society and advertisingare:

Deception Manipulation Taste

Legal aspects of advertising:The government in each country has to make sure

that advertisements appearing do not flaunt of theirrules & regulations. It should not:-

show anti-national feelings contain misleading information about the

product Violate government rules.

Ethical aspects of advertising:

Ethics are the moral standards against which behavior isjudged Key areas of debate regarding ethics andadvertising are:

Truth in advertising Advertising to children Advertising controversial products

Economic aspects of advertising: Making Consumers Aware of Products and

Services Providing Consumers With Information to Use

to Make Purchase Decisions Encouraging Consumption and Fostering

Economic Growth

Economic impact of Advertising: Effects on Consumer Choice

o Differentiationo Brand Loyalty

Effects on Competitiono Barriers to entryo Economies of scale

Effects on product costs and priceso Advertising as an expense that

increases the cost of productso Increased differentiation

UNIT – IVSales Promotion

Q7: What is Sales Promotion? Explain the strategyof sales promotion?Ans: Sales promotion is the process of persuadinga potential customer to buy the product. Salespromotion is designed to be used as a short-termtactic to boost sales – it is rarely suitable as amethod of building long-term customer loyalty.

The set of marketing activities undertaken to boostsales of the product or serviceProcess of persuading a potential customer to buy theproduct.

Sales promotion tools are used byorganizations, including

o Manufacturerso Distributorso Retailerso Not-for- profit institutions

Targeted towards final buyers



Methods of sales promotion: Money off coupons Competitions Discount vouchers Free gifts Point of sale materials Loyalty cards

Objectives of Sales Promotion:

Tools of Sales Promotion:A. Consumer Oriented Promotion Tools

Free samples Coupons Exchange scheme Discounts Premium offers Personality promotions Installment sales

B. Trade-oriented Sales Promotion Cash bonuses Stock return Credit terms Dealer conferences Dealer trophies Push incentives

ADVANTAGE OF SALES PROMOTION price discrimination effect on consumer behaviour luring new customers with price

DISADVANTAGE OF SALES PROMOTION increase price sensitivity short term orientation

SALES PROMOTION STRATEGIES:

Q8: Explain the evaluation of effectiveness of salespromotion?Ans: Sales promotions result in an upward bump insales during the promotion period. Because customersbuy during sales promotions for reasons that may affecttheir purchases before and after the promotion, thecompany should evaluate the volume of sales for thesales promotion period plus an equal period before, andat least two equal periods after, the promotion.

Evaluation of Sales Promotion:1. It is easier to evaluate sales promotion results:

most sales promotions have definite startingand ending points

most sales promotions are designed to impactsales directly.

2. Two humor ads: Beer: holster pils Airline

3. People pay attention4. Generate positive feeling5. Sometimes the message is not clear6. HBO Ads.7. Sprite

Comparative Advertising Persuasive goal

Evaluation - Theory Obtain the actual volume of sales: before the

promotion and after the promotion Three consumer responses

o Competitor stealo Brand cannibalizationo Category growth

Customer survey to evaluate brand awareness Calculate total costs of the promotion

o Main cost = Volume sold * Reducedprice per pack

o Other costs like dealer incentivesSeek help from marketing agencies



Use panel data gathering to determine howsuccessful the promotion waso Loyal customerso Cherry pickerso Brand-switcherso Consumption per person in the short and

long runo The extent to which the promotion was

made known to target group Retailer to evaluate sales

o Beforeo Duringo Aftero Using ad hoc research like surveys

Short term sales promotions may result in greatersales, so retailers should prepare more stocks toprevent shortage.

Promotions can excite shoppers. Promotions can also encourage trials and raise brand

awareness Frequent price promotions are harmful Promotions should be used together with advertising

for best outcomes Ensure consistency between promotional tool and the

product position

UNIT – VConsumer Promotion Tools

Q9: Explain the Consumer promotional tools?Ans: Those Marketing activities other than personalselling, advertising and publicity, that stimulatecustomer purchasing, dealer effectiveness, such asdisplay, shows and exposition, demonstrations andvarious non-recurrent selling efforts not in the ordinaryroutine.

Selecting Consumer promotion tools:o Different types of market, sales promotion

objectives, competitive conditions and costeffectiveness

o Eg. In auto industryo manufacturer: rebates, gift to motivate for test

drives, purchases, high value trade in credito Retailer : price cuts, feature ads, retailer coupons,

contests or premiumso Consumer franchisee building and those that are noto Eg. Free sample, coupons/premiums, contests.

Consumer promotion tools:



Q10: Discuss the sales force promotion tools?Ans: Sales promotion is one of the seven aspects of thepromotional mix. Media and non-media marketingcommunication are employed for a pre-determined,limited time to increase consumer demand, stimulatemarket demand or improve product availability.

Sales force promotion tools:Companies spend large amount of money on businessand sales-force promotion tools to gather businessleads, impress and reward customers, and motivate thesales force to greater effort. They develop budgets fortools that remain fairly constant from year to year.

Trade shows and conventions Sales contests Specialty advertising Coupons, Vouchers, Commissions Competitions, incentive programmes, free

samples, free gifts. Bonus Scheme

Points system with gift catalogue Club for high achievers.

Trade Shows & ConventionsIndustry associations organize annual trade shows andconventions. Business marketers may spend as much as35% of their annual promotion budget on trade shows.Participating vendors expect several benefits including-

Generating new sales leads Maintaining customer contacts Introducing new products Meeting new customer Selling more to present customers Educating customers with publications/videos Other audio visual materials

Sales Promotion Type:

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