LEEWAY

SEVENTH SEMESTER BBA LLB

Advertising & publicity

management
CREATED BY
AJITH.V, RATHULDEV.S, MUHAMMED NASEEB P
[BBA LLB 5th YEAR]

POWERED BY
UDSF MCT LAW COLLEGE
MCT COLLEGE OF LEGAL STUDIES MALAPPURAM
12 MARK

Promotion Mix

 Promotion mix is the blend of different methods and tools of communication you use in presenting your
company, products or services to target customers.
 Effective promotion is a key component of the marketing mix, as it is the element that helps you attract
customers, persuade them to buy, and generate loyalty.
 Promotion is one of the four primary strategic components of the marketing mix, often called the "4 P's."
 The promotion mix is broad, but generally includes techniques in three broad areas: advertising, public
relations and personal selling.
 Advertising is often the most expensive part of promotion, as it includes paid messages delivered through
media such as television, radio, newspapers, magazines, billboards and the Internet.
 Public relations includes efforts to promote goodwill through media exposure, press conferences, news
announcements and community involvement.
 Personal selling is more interactive and is common when you sell complex or expensive products that
require more assertive persuasion.
 The types of methods and tactics you use in your promotion mix normally correlate with your
communication objectives.
 New companies typically use promotion to create awareness about their company or products. Once a
company or product is established, much of promotion centers on promoting strong benefits and value to
target customers.
 Motivating buyer intent and maintaining connections with loyal customers are ongoing activities for
accomplished brands

Elements of promotion mix

 Advertising
 Personal Selling
 Sales Promotion
 Publicity

Advertising

 Advertising is an impersonal form of communication which is paid for by the marketers to promote their
goods and services. It is the most commonly used element of promotional mix.
 It is a non-personal presentation and promotion of ideas, good or services by an identified sponsor. It is an
inter personal method of communicating messages regarding products or services from an identified source
to a particular segment of the consumers market or prospective buyers.
 The means of communication used vary from outdoor media, which may be purely visual (such as
newspapers and magazine space) or broadcast media, such as radio; or a combined visual and annual media
such as television.

Personal Selling:

 The buyers and sellers negotiate juxtapose under personal selling, It facilitates the mutual reactions of the
buyers on the product and it enables to know and to transact the information.
 It is most effective factor for the sale promotion. It provides an elastic and two-way communication.
 Personal selling has been considered more useful for the sale of industrial products but this factor plays a
particular role in the sale of consumer products covered under large publicity.
Sales Promotion:

 Sales promotion refers to the promotional activities designed to encourage customers to make immediate
purchase of goods or services.
 These activities include the incentives viz. sales contest, free gifts, cash discounts, free samples etc.
 Sales promotion usually supports other promotional activities like advertising, personal selling, publicity
etc. to increase sales in the short run.
 Every company designs sales promotion activities specific to customers, tradesmen, middlemen or dealers
and sales person.

Publicity:

 Publicity refers to spreading information about the products or services of a company by unidentified
sponsors which is usually ‘media’.
 It is an impersonal form of communication.
 It is non-paid form of communication. It does not involve any direct expenditure by the marketing firm.
 It can be good publicity or bad publicity. When favourable news is spread in the mass media about a product
or service, it is called as positive or good publicity and if media informs negative points of a product it is
considered to be bad publicity.
 The reviews written by customers over the internet about specific products, companies or their experiences
is the latest publicity tool.

Sales Promotion Methods

 Sales promotion is needed to attract new customers, to hold present customers, to counteract competition,
and to take advantage of opportunities that are revealed by market research. Methods used in sales
promotion include coupons, samples, premiums, point-of-purchase (POP) displays, contests, rebates, and
sweepstakes.
 Free Sampling – Consumer gets one sample free, after their trial and then could decide whether to buy or
not, this helps in boosting sales.
 Offer of Price discounts/price deals – A temporary or seasonal reduction in the price, such as flat 50% off, is
a good technique of attracting customers.
 Money back and Rebates – Consumers are offered money back if the receipt and barcode are mailed to the
producer.
 Loyal customers Reward Points – Consumers collect points, miles, or credits for purchases, and redeem
them for rewards, gifts or money.
 Price-pack/Bonus packs offers – The packaging offers a consumer a certain percentage more of the product
for the same price for instance, ’25 percent extra’, ‘10% extra’, is seen mostly on goods.
 Gift Coupons or cash back coupons – coupons have become a standard mechanism for sales promotions.
Many times the discount coupon issued can be redeemed on the next purchase only.
 Mobile couponing – Coupons are available on a mobile phone. Consumers show the offer on a mobile
phone to a salesperson for redemption.
 Loss leader policy – the price of a popular product is temporarily reduced below cost in order to stimulate
other profitable sales.
 Free-standing insert (FSI) – A coupon booklet is inserted into the local newspaper for delivery, though it
may not give the real benefit as mostly customers do not carefully see the pamphlets or stickers in the
newspaper.

Television Advertising
 Advertising on television allows you to showcase your business, product, or service with a wide audience.
You can show viewers how your product or service works and how it’s packaged so prospective customers
will know what to look for at the point of sale. In advertising, it often takes multiple touch points to
effectively influence consumers’ purchasing behavior.
 Television advertising has been a popular medium for large retailers ever since the TV first began to appear
in living rooms. With the arrival of cable television came lowered production costs and the opportunity to
reach smaller, more targeted markets, making it a viable option for small to medium-size businesses as well.
 To create an effective television ad, it’s first necessary to have a good script that highlights a strong offer.
Ads must also be effectively produced, and it’s for this reason that it’s often better to enlist the services of
an advertising agency, which can help you create an entire campaign.

Advantages of TV advertising

Some of the advantages to advertising your small business on television include the following:

 TV reaches a much larger audience than local newspapers and radio stations, and it does so during a
short period of time.
 It reaches viewers when they’re the most attentive.
 It allows you to convey your message with sight, sound, and motion, which can give your business,
product, or service instant credibility.
 It gives you an opportunity to be creative and attach a personality to your business, which can be
particularly effective for small businesses that rely on repeat customers.

Difference in Print Media Vs. Television Advertising

 Print and television advertising both offer an avenue to get your message to your target audience and
promote your business.
 Each has strengths and weaknesses that determine whether the medium is right for you. Examine the goals
of your marketing campaign and what your target audience consumes to make the choice that's right for
your business.

 Speed
o Advertising in print media allows you to get your message out quickly and change it as needed. It
also allows you to target your advertising to reach a particular audience.
o TV commercials take more time to produce, particularly for a small business with a lower
advertising budget, so the opportunities to take advantage of a rapidly changing market conditions
are fewer.

 Impact
o Unlike print, television advertising offers a medium to disseminate high-impact messages combining
both audio and visual images.
o A campaign designed to get people to use your service to check their house for termites, for
example, benefits from the target audience being able to see the negative effects of termites and hear
victims discuss their damage. On the other hand, newspaper remains a more trusted medium

 Targeting
o Both print and television offer the opportunity to target a particular audience, but both have
limitations.
o You have little control of your advertisement's magazine placement in most cases, and newspaper
also may not guarantee a particular spot for your advertising copy. Television advertising,
 particularly cable, offers a chance to target niche markets. A lower-rated show may be perfect for
you if it matches with your target market, such as a nursery might find on a gardening channel.

 Cost
o The variety of print ad sizes means you can make them as big or as small as your needs and budgets
allow.
o TV commercials cost more to produce than newspaper ads, and the cost of airtime is considerably
higher than the price per newspaper column inch. That being said, relate expenditures to your
audience and their preferences before making a decision.

Advertisement Layout

 In the initial stages of an ad’s development either the copy writer or the art director forms a mental image of
the ad.
 The copy writer may use rough sketches to develop the theme and to convey ideas to the artist. The artist
will visualize the thought sketch and provide a pictorial representation of it.
 Visualisation is often confused with the terms illustration and layout. Visualisation precedes both the
illustration and layout and is the process of forming a mental image, picture or representation of an object or
idea.
 The layout is the physical arrangement of the elements in an advertisement so that this mental idea may be
effectively presented. The picture portion of the layout is generally referred to as the illustration
 Effective advertising requires that these images be consistent with a advertiser’s message, which is
concerned with the need or desire the product fulfills.
 It is the job of the layout artist to combine all the elements in the idea into a single, effective
communication. This requires adding to the idea a head line, illustration, body text, logotype and
occasionally a sub head line, picture caption trade mark, coupons or seal of approval.
 The layout is the arrangement of all the verbal copy element plus the art work (drawing, photography, logo
types) on the paper. The layout shows the rough composition of the design of a print ad so that all of those
concerned with the ad can evaluate it and so that those who need to produce the ad will have the blue print
to follow.

Purposes and Function of Layout:

There are following reasons for making a layout:

 The layout provides a working blending of the creative abilities of all personnel involved in the preparation
of the advertisement.
 It provides a blue print to meet the mechanical requirements of engravers, typographers, and others, as well
as giving specifications for estimating costs.
 A layout shows how an ad is to look and, therefore, must contain all the necessary elements.
 It permits all interested parties, particularly the client, to see the advertisement before final steps are taken to
put it in print.
 The layout also serves as gauge to determine if all the materials that will go into the advertisement will fit
into a given space.

Evaluating Consumer Behavior

 Consumer behavior evaluations take a closer look at motivations, reasoning and actions that go into
purchase decisions. Understanding the aspects of consumer behavior and the methods of study provide
valuable insight for your own business and offer important techniques for driving your business to the next
level of success.
 The psychology behind consumer behavior has been widely studied, regarding both the reasoning for
purchase and the contributing factors that can influence the decision.
 When making a purchase, most consumers don’t stop and think about why they do what they do, but the
reasoning is a combination of several aspects.
 Over time, social researchers have developed many methods of studying consumers and the behaviors that
drive purchase decisions. The research falls into two categories.
 Primary research is designed and conducted by an individual or organization, and secondary research uses
information that others have conducted to draw new or different conclusions.

 Surveys – Surveys are ideal for gathering a large amount of specific information, whether containing
open-ended questions (What state are you from?) or multiple choice (Are you married? Yes or No).
Surveys can be mailed, emailed or conducted in person.
 Sample – Offering samples of new products to consumers is an excellent way to gauge what will (or
won’t) work. Most people will offer their honest opinion if given a free sample or incentive.
 Focus Groups – Focus groups are particularly useful for testing new products or making changes to
existing product, allowing a group to discuss a certain idea or product and gathering data from the
conversations that transpire.
 Personal Interviews – A personal interview can gather very in-depth information from a consumer, but
can be very costly and time-consuming.
 Observation – Simple observation can often provide the most honest opinions from a consumer,
whether it is observing an online marketplace or a physical store space.
 Online Research – Pop-up surveys are becoming more common; gathering data from consumers
through data forms during online shopping or purchase. Online data can also be gathered by monitoring
page visits and behavior on a website.
 Scanned Data – Many stores are using ‘frequent shopper’ or ‘VIP’ cards to encourage shoppers to
become regulars, but these cards are also used to gather data about the types and frequencies of
purchases made by certain groups of people.

Motivating Salesman

 The motivating salesman is an important aspect of salesforce Management. Sales personnel require
additional help to achieve given results.
 Most salespeople require motivational “help” from management to reach and maintain acceptable
performance levels. They require motivation as individuals and as group members.
 As individuals, they are targets for personalized motivational efforts by their superiors. As members of the
Salesforce, they are targets for sales management efforts aimed towards welding them into an effective
selling team.
Need and importance for motivating salesman

 Nature of the Sales Job

 Role Conflicts

 To Maintain Feeling of Group Identity

 Diversity in Company Goals

 To Improve Mutual Relations

 To Satisfy the Needs

Ways to motivate a salesman are as follows:

Sales Contests:

 By sales contests, we mean a competition among the salesmen, by maximizing their effort to boost up the
sales, to earn the name of superior salesman.
 The aim of this contest is to increase the sales, to develop a team spirit, boosting the morale, encouraging to
work hard, fast moving or slow moving items, to overcome the depression period etc.

Conventions and Meetings:

 This is a group motivation. All employees meet at a place. Everyone meets and contacts fellow workers.
Exchange of ideas and opinions takes place.
 Salesmen have a close touch with the fellow workers and executives. Problems are solved and new policies
are developed.

Personal Meet:

 The performance of the salesmen can be known from their reports. Further, to have more effect on the sales,
salesmen may be facilitated to meet the sales manager in finding solutions to their typical problems.
 The sales manager gives satisfactory solutions to one’s problems or discusses them to arrive at a satisfactory
solution. This type of personal meet is a good encouragement.

Promotions:

 By considering abilities and experience, as a stimulation policy, the salesmen are promoted to a higher post
on a higher salary.
 Thereby status increases, self-respect increases, remuneration increases; and naturally, it is the best
motivation of salesmen. Further promotion is aimed at through further and more hard work.

Personal Communication:

 It is always good for the sales manager to write personal letters to the salesman, solving the problems of the
salesman, who is performing his work.
 The two- way flow of ideas, facts, opinions, feelings is good in shaping a goodwill and developing a high
morale apart from confidence and co-operation.
Functions of a Salesman

The duties and responsibilities of a salesman differ from one business to another depending upon the nature of
the business, the size of the business, the type of selling job, the sales policies of the concern, etc. However,
there are certain duties and responsibilities which are common to all types of business.

 Selling: The fundamental duty of a salesman is selling. This duty includes meeting the prospects, presenting
and demonstrating the products, inducing the prospects to buy, taking orders and effecting sales.
 Guiding the buyers: A salesman should guide the buyers in buying the goods they want.
 Attending to complaints: A salesman should attend to the complaints of the customers immediately and try
to settle their grievances quickly and sincerely.
 Collection of bills: Sometimes, a salesman may be required to collect the outstanding bills relating to the
goods sold by him. In such a case, he has to collect the bills and remit the amount to his firm.
 Collection of credit information: A salesman may, sometimes, be required to collect information about the
credit-worthiness of the customers. In such a case, he has to collect detailed information and submit it to his
firm in time.
 Reporting: A salesman, especially a traveling salesman, is required to send daily, weekly or monthly reports
to his firm, providing information about the calls made, sales effected, services rendered, route schedule,
expenses incurred, business conditions, competition, if any, etc.
 Organizing: A salesman, i.e., a traveling salesman, is required to organize his tour programme. He has to
prepare the route and time schedules for his tour so as to systematize his sales efforts.
 Attending sales meetings: A salesman is required to attend the sales meetings convened by his employer at
periodical intervals to discuss the marketing problems, sales promotion activities, sales policies, etc.
 Promotion of goodwill: Every salesman has to build up satisfied clientele (i.e., customers) for his employer
and thereby promote the goodwill of his firm.
 Recruiting and Training: Recruiting new salesmen, imparting training, by accompanying them while making
sales calls.
 Working with Middlemen: Salesmen establish direct relations with middlemen — distributors, wholesalers,
etc., and collect market information and pass it on to their firm.

Methods of Salesmen Training

Induction and orientation training

 When a newly appointed employee reports for work, he must be assisted to get acquainted and adjusted with
work environment.
 Thus, it is necessary to give him a friendly welcome when he joins the organization, to get him introduced
to the organization and to help him to get a general idea about the rules and regulations, working conditions,
etc.

On-the-job training

 This is considered to be the most effective method of training salesmen. Under this method, the salesperson
is trained on the job at his place of work.
 One of the easiest ways is to give him on-the-job coaching. This enables him to get training under the same
working conditions and with the same process, materials and equipment that he will be using for the job
execution.
 The responsibility of training may be given to his immediate supervisor who knows exactly what he should
learn.
Off-the-job training

 When the job is complicated and requires much technical information or when on-the-job experience has to
be supplemented by further knowledge and experience, the employees are required to attend training
courses in institutions outside the organization.
 Training in a class-room is preferable as the atmosphere is congenial and there would be no fear of
interruption of work. In the classroom, actual working conditions may be reproduced to enable the trainees
to acquire actual-job experience.

Organization of Lectures

 Under this method, lectures by experts on various aspects of selling are organized by the firm for the benefit
of the salesmen (to make the salesmen know the principles of selling).
 The salesmen attending the lectures take down notes of the lectures. They also take part in the group
discussions, seminars and written tests that follow the lectures.
 The main advantages of this method are that salesmen get exhaustive information about the products,
markets, techniques of selling, etc

Conducting of Sales Conferences and Seminars

Under this method, the salesmen are invited to attend the sales conferences at periodical intervals. In such
conferences, selling techniques, selling policies of the firm, complaints received from the customers,
competition faced by the firm, company’s advertising programme, difficulties faced by the salesmen, etc., are
discussed.

Advertising Campaign

 An advertising campaign is a specifically designed strategy that is carried out across different mediums in
order to achieve desired results such as increased brand awareness, increased sales, and improved
communication within a specific market.
 An online advertising agency specifically geared towards digital marketing is your best bet and the best way
to achieve your desired results.
 Mostly used media tools are print media and electronic media. Print media includes newspaper, magazines,
pamphlets, banners, and hoardings.
 Electronic media includes radio, television, e-mails, sending message on mobiles, and telephonic
advertising. The only point to remember is getting a proper frequency for the ad campaign so that the ad is
visible and grasping time for customers is good enough.
 All campaigns do not have fix duration. Some campaigns are seasonal and some run all year round. All
campaigns differ in timings.
 Some advertising campaigns are media based, some are area based, some are product based, and some are
objective based.
 It is seen that generally advertising campaigns run successfully, but in case if the purpose is not solved in
any case, then the theory is redone, required changes are made using the experience, and the remaining
campaign is carried forward.

Process of making an advertising campaign is as follows:

1. Research: first step is to do a market research for the product to be advertised. One needs to find out the
product demand, competitors, etc.
2. Know the target audience: one need to know who are going to buy the product and who should be
targeted.
3. Setting the budget: the next step is to set the budget keeping in mind all the factors like media,
presentations, paper works, etc which have a role in the process of advertising and the places where there is
a need of funds.
4. Deciding a proper theme: the theme for the campaign has to be decided as in the colors to be used, the
graphics should be similar or almost similar in all ads, the music and the voices to be used, the designing of
the ads, the way the message will be delivered, the language to be used, jingles, etc.
5. Selection of media: the media or number of Medias selected should be the one which will reach the target
customers.
6. Media scheduling: the scheduling has to be done accurately so that the ad will be visible or be read or be
audible to the targeted customers at the right time.
7. Executing the campaign: finally the campaign has to be executed and then the feedback has to be noted.

Elements of an Print Advertisement

 A good print advertisement can present your product to new eyes. Successful print ads convey information
about your products and store.
 They include a clear and specific offer, along with information about how readers can act on that offer. Not
all print ads are created equal, however. In order to maximize your investment, include all of these elements
in your advertisement.

The Offer

 A good print advertisement offers readers an immediate benefit or reason to learn more about your product.
This can be anything from a hot new product to a sale or limited-time discount. Your offer is the hook that
draws the reader in and it should be the focus on your ad.

The Headline

 The ad title offers a short, snappy preview of what the reader will find in the copy. Your headline explains
to the reader the key benefit or offer you are providing.
 In general, headlines are the largest part of the advertisement. A good headline keeps a potential customer
reading; a weak headline and the customer turns the page.

Image

 A print ad includes one or two striking pictures that illustrate your offer. If you are offering a free product,
your ad should include an attractive photo of the product.
 If you are highlighting a hot new product or sale, your image should be of that hot new product. If possible,
run your images in color to draw in readers.

The Body

 The body of your ad includes details about your offer, details about your store or product and any other
information you want to highlight.
 Keep your body text short and easy-to read. Use bullet points or subheadings to break up the text. Readers
want to get the information they need as quickly as possible.

Call to Action
 Include a sense of urgency in your ad. Don't just tell readers about your product, urge them to take action in
order to benefit from your offer. Set a time limit and clear, concise instructions for what readers should do.

Contact Information and Store Logo

 Your ad should include the address and phone number for your store, along with any other information a
reader needs to follow through on your call to action. Also include a logo for your product to build up brand
recognition.

Smart Ad Placement

 Once you've designed a successful advertisement, place it in publications that reach your target market.
Before you place your ad, ask the publication for statistics on their demographics.

Types of Print Advertising

 Newspapers
 Magazines
 Directories
 Brochures
 Direct Mail
 Billboards

Advantages of Print Advertising

 Cost-Effective. Print advertising, without any doubt, is generally a very cost-effective option. A local
business can easily advertise its products or services in local newspapers at an affordable cost. Similarly,
brochures, direct mails, etc., are also very economical options.
 Credibility and Trust Building. Newspapers and magazines are considered as credible sources of
information. That means a newspaper won’t advertise any illegitimate or ambiguous brand, product, or
service. Therefore, advertising in a newspaper automatically helps you build creditability and trust in
your target audience.
 Better Engagement. People read the newspaper for different purposes but obtaining information is a
common objective of newspaper readers. This means a business can have higher audience engagement
through newspaper ads. However, a business must be unique with its ads because they can be easily
ignored in a cluster of ads.
 Longevity. Even a single newspaper is read by multiple readers. That means your ad will have an
extended viewership. Apart from that, shops, offices, and other venues display newspapers for longer
periods. That means your ad will be exposed to a lot of people for a long time.
 Flexibility. Print advertising is also a flexible option for advertisers or marketers. That said, a brand can
advertise its products or services in a specific newspaper to reach an area-specific audience or reach a
general audience. Similarly, if a business has a low budget for advertising, it can place its ad on the
publication accordingly.

Disadvantages of Print Advertising

 Against the Trend. Just as mentioned earlier, print media has been surpassed by digital channels. In
fact, the modern generation is not very fond of reading newspapers or magazines. People born before the
90s still like reading newspapers, but that means a business may miss a huge potential customer base by
relying on print advertising.
  Lower Accessibility. The world has become a global village, and international trade is the new common
now. Even small businesses are making their way out to international markets. That is why reaching a
global audience through print advertising is simply next to impossible. You cannot have a global reach
with a national newspaper.
 Paper Media Is “Killing Our Planet”. There are no easy words to say this, but you need to cut down a
lot of trees to make paper. To be honest, trees and plants are a lifeline for this planet, and you need 10
liters of water to make one A4 size sheet, which is pretty “expensive” in terms of natural resources.

Classification of Advertising:

Advertising can be most commonly classified as national, local or selective demand. Primary demand of
advertising is on one hand and B2B advertising, professional advertising and trade advertising on the other
hand.

i. Consumer Market Advertising:

(a) National Advertising:

 When advertising is done by large business houses on nationwide basis or in most regions of the country to
inform consumers about their brand, its features, benefits and users, it is called national advertisement.
 The national advertisement creates and also reinforces the image of the company in the minds of consumers
in order to influence them to purchase the product/service of the advertiser.

(b) Local/Retail Advertisement:

 The advertisements which are done by local merchants or retailers to influence the customers towards their
stores, local services etc., are called local or retail advertisements.
 The local advertisements tend to emphasize specific patronage goals such as – price, services, hours of
operation, assortment of goods etc.
 Retailers are concerned with increasing the store footfall so they design the advertisements to produce
immediate store footfall and sales.

(c) Primary Demand Advertising:

 Primary demand advertising is designed to stimulate demand for the general product class. Primary demand
advertising is often used as a part of a promotional strategy to help new product gain market acceptance,
since the major challenge for the marketers is to sell customers the concept as well as the brand

(d) Selective Demand Advertising:

 Selective demand advertising is focused on creating a demand for a specific company’s brands. Most
advertisements are in the category of selective demand advertising as here the challenge for the marketer is
to create a demand for a specific company’s brand.
 The advertisements here speak about why the consumers should go for the company’s product. The
advertisements speak about the reasons for purchasing the company’s product.
 The marketer here tries to also differentiate his brand from others so as to influence the potential customers
towards his brand.
 Thus, the selective advertising campaigns try to sway the consumers away from other brands and come
towards the marketer’s product. This makes the marketer’s brand dominant in the market place.
ii. Business and Professional Markets Advertising:

(a) B2B Advertising:

 This kind of advertising targets individuals who are buyers of goods for industrial purposes or influence the
purchase of industrial goods and services for their organizations.
 Industrial goods are those goods which become an input in the manufacture of other goods.
 They are those goods which help the company to conduct its business, e.g., office supply of stationary,
computers, raw materials etc.
 Services such as – travel services, insurance, banking, healthcare, beauty culture etc., are also included in
this category.

(b) Professional Advertising:

 The advertising which targets professionals like doctors, lawyers, dentists, architects, engineers or teachers
to encourage them to use a firm’s product in their business operations.
 A professional may also be encouraged to recommend a firm’s product to the end users e.g., an architect
may recommend the usage of a particular brand of cement for building the structure to the client or a doctor
may recommend a particular brand of medical cotton bandage to his patients.

(c) Trade Advertisement:

 Some advertisements are targeted to marketing channel members such as – the wholesalers, distributors,
retailers etc.
 The main objective of such an advertisement is to encourage these middle men to stock, promote and sell
the manufacturer’s branded product to their customers.
 If the middlemen are not influenced by the marketer they may not be fully charged to sell the product of the
marketer at the market place and thus the firm will lose the share in the market.

Consumer Decision Making

 Consumer Decision Making refers to the process under which consumers go through in deciding what to
purchase, including problem recognition, information searching, evaluation of alternatives, making the
decision and post-purchase evaluation.
 The consumer decision process starts with the recognition of need, that is, the consumer must recognize the
need to purchase a product, then goes through the process to choose the product.
 A display or any other promotion may remind the consumer that she/he needs the product, or may awaken
the latent demand for the brand or product category.
 The buying process begins when customers recognise an unsatisfied need. Then they seek information about
how to satisfy the need- what, products might be useful and how they can be bought.
 Customers evaluate the various alternative sources of merchandise such as stores, catalogues, and the
Internet and choose a store or an Internet site to visit or a catalogue to review.

1. Psychological Factors

Human psychology is a major determinant of consumer behavior. These factors are difficult to measure but are
powerful enough to influence a buying decision.

Some of the important psychological factors are:

i. Motivation

 When a person is motivated enough, it influences the buying behaviour of the person. A person has many
needs such as the social needs, basic needs, security needs, esteem needs and self-actualization needs.
 Out of all these needs, the basic needs and security needs take a position above all other needs. Hence basic
needs and security needs have the power to motivate a consumer to buy products and services.

ii. Perception

 Consumer perception is a major factor that influences consumer behavior. Customer perception is a process
where a customer collects information about a product and interprets the information to make a meaningful
image about a particular product.
 When a customer sees advertisements, promotions, customer reviews, social media feedback, etc. relating to
a product, they develop an impression about the product. Hence consumer perception becomes a great
influence on the buying decision of consumers.

iii. Learning

 When a person buys a product, he/she gets to learn something more about the product. Learning comes over
a period of time through experience.
 A consumer’s learning depends on skills and knowledge. While a skill can be gained through practice,
knowledge can be acquired only through experience.
 Learning can be either conditional or cognitive. In conditional learning the consumer is exposed to a
situation repeatedly, thereby making a consumer to develop a response towards it.
 Whereas in cognitive learning, the consumer will apply his knowledge and skills to find satisfaction and a
solution from the product that he buys.

iv. Attitudes and Beliefs

 Consumers have certain attitude and beliefs which influence the buying decisions of a consumer. Based on
this attitude, the consumer behaves in a particular way towards a product.
 This attitude plays a significant role in defining the brand image of a product. Hence, the marketers try hard
to understand the attitude of a consumer to design their marketing campaigns.

2. Social Factors

 Humans are social beings and they live around many people who influence their buying behavior. Human
try to imitate other humans and also wish to be socially accepted in the society.
 Hence their buying behavior is influenced by other people around them. These factors are considered as
social factors. Some of the social factors are:

i. Family

 Family plays a significant role in shaping the buying behavior of a person. A person develops preferences
from his childhood by watching family buy products and continues to buy the same products even when
they grow up.
ii. Reference Groups

 Reference group is a group of people with whom a person associates himself. Generally, all the people in
the reference group have common buying behavior and influence each other.

iii. Roles and status

 A person is influenced by the role that he holds in the society. If a person is in a high position, his buying
behavior will be influenced largely by his status.
 A person who is a Chief Executive Officer in a company will buy according to his status while a staff or an
employee of the same company will have different buying pattern.

3. Cultural factors

A group of people are associated with a set of values and ideologies that belong to a particular community.
When a person comes from a particular community, his/her behavior is highly influenced by the culture relating
to that particular community. Some of the cultural factors are:

i. Culture

 Cultural Factors have strong influence on consumer buyer behavior. Cultural Factors include the basic
values, needs, wants, preferences, perceptions, and behaviors that are observed and learned by a consumer
from their near family members and other important people around them.

ii. Subculture

 Within a cultural group, there exists many subcultures. These subcultural groups share the same set of
beliefs and values.
 Subcultures can consist of people from different religion, caste, geographies and nationalities. These
subcultures by itself form a customer segment.

iii. Social Class

Each and every society across the globe has form of social class. The social class is not just determined by the
income, but also other factors such as the occupation, family background, education and residence location.
Social class is important to predict the consumer behavior.

4. Personal Factors

Factors that are personal to the consumers influence their buying behavior. These personal factors differ from
person to person, thereby producing different perceptions and consumer behavior.

i. Age

 Age is a major factor that influences buying behavior. The buying choices of youth differ from that of
middle-aged people. Elderly people have a totally different buying behavior.
 Teenagers will be more interested in buying colorful clothes and beauty products. Middle-aged are focused
on house, property and vehicle for the family.
ii. Income

 Income has the ability to influence the buying behavior of a person. Higher income gives higher purchasing
power to consumers.
 When a consumer has higher disposable income, it gives more opportunity for the consumer to spend on
luxurious products.
 Whereas low-income or middle-income group consumers spend most of their income on basic needs such as
groceries and clothes.

iii. Occupation

 Occupation of a consumer influences the buying behavior. A person tends to buy things that are appropriate
to this/her profession. For example, a doctor would buy clothes according to this profession while a
professor will have different buying pattern.

iv. Lifestyle

Lifestyle is an attitude, and a way in which an individual stay in the society. The buying behavior is highly
influenced by the lifestyle of a consumer.

10 MARK

Advertising:

It is a non-personal presentation and promotion of ideas, good or services by an identified sponsor. It is an inter
personal method of communicating messages regarding products or services from an identified source to a
particular segment of the consumers market or prospective buyers.

The means of communication used vary from outdoor media, which may be purely visual (such as newspapers
and magazine space) or broadcast media, such as radio; or a combined visual and annual media such as
television.

Advertising is a paid form of non-personal communication. It is one of the best forms of promotion, it reaches
the mass and with the influence of technology it reaches in a customized way.

Role of Advertising

Awareness:

 One of the important roles of advertising is to create awareness of the product or services such as brand
name and price.

Information:

 Advertising helps to inform the target audience about the product. Providing information is closely related
to creating awareness of the product.
Persuasion:

 When business firms offer similar products, the firm must not only inform the customers about the product’s
availability, but also persuade them to buy it.

Attitudes:

 Promotion is required to build or reinforce attitudes in the minds of target audience. The marketers expect
the target audience to develop a favourable attitude towards their brands. Positive attitude towards the brand
helps to increase its sales

Reminder:

 If target customers already have a positive attitude towards a firm’s product or service, then a reminder
objective may be necessary.

Brand Image:

 An advertiser helps to develop a good image of the brand in the minds of target audience. There are several
factors that can be of help to audience.

Importance of Advertising

(A) Importance of Advertising to Producers:

1. To Introduce New Products:

Advertisement of the new product is necessary so that consumers become aware about the product, its
availability, its utility, its price etc., thus, advertising is crucial to promote the sale of a new product.

2. To Induce Potential Customers:

Advertising is one of the best means by which the sale of an existing product can be increased. For this purpose,
the advertisement should emphasize the usefulness of the product, its quality, price advantages, etc., so as to
win over the potential buyers and make them actual buyers.

3. Reminding Users:

In a competitive market, new products are introduced frequently. All these products are advertised in the
market. As a result, old brands are likely to be forgotten by the consumers.

4. To Create Brand Image:

Business firms very often advertise for establishing an image for the product and creating customers’ loyalty for
that product. When customers develop brand loyalty, they are unlikely to switch to other brands easily.

5. To Highlight Brand Character:

For certain products, consumers feel that a particular characteristic is very important. Its existence determines
the buyer’s choice of a particular brand out of several brands
6. To Educate Customers about New Uses of a Product:

 Advertising is sometimes, used to convey new uses of an existing product to the customers or to draw their
attention to some new features of the product.
 The basic objective of advertising in this case is to convince the customers about the superiority of a product
in comparison with other products in the same line.

7. To Support Dealers:

Sometimes, the aim of advertisement is to provide support to dealers and distributors. Thus, there are many
advertisements in newspapers in which the list of dealers and distributors is given along with the particulars of
the product.

(B) Importance of Advertising to Consumers:

1. Improved Quality of the Product:

It is absolutely essential to improve the quality of the product to maintain confidence of the customers and
ensure brand loyalty. Hence, advertised goods are usually of good quality.

2. Protects Consumers from Exploitation:

Advertising also acts as an information service and educates the consumer. It enables him to know exactly what
he wants and where to get it.

3. Reduction in Price:

Advertising stimulates production and reduces the cost per unit. This reduction in the cost is generally passed on
to the consumer and that is why price of well-advertised goods is found to be generally lower than other goods
of the same quality which are not so well advertised.

4. Facilitates Direct Selling:

Advertising also makes it possible to sell direct to the consumer by Mail Order Business. Thus, consumers from
remote areas can also enjoy the comforts and luxuries available only in the cities or towns. In this way
advertising improves social welfare.

5. Improved Consumer Satisfaction:

As manufacturers control the price of well- advertised goods, price-cutting is not available to the retailers and
the shopkeepers as they try to attract customers by giving better and more satisfactory service.

6. Enables Comparison:

 Advertising helps consumers find best product for themselves by facilitating comparison among various
products available in the market.
 When consumers are aware about the range of products, they are able to compare the price, quality and
characteristics and pick up the best from among them.
(C) Importance of Advertising to Society:

 Advertising helps in increasing awareness among people. Advertising dealing with social issues such as
child labour, liquor consumption, female foeticide, smoking, family planning etc. and promotes social
welfare.
 Advertising provides direct employment to large number of people engaged in designing, writing and
issuing advertisements. Indirectly, advertising increases employment opportunities by increasing the volume
of production and distribution.
 Advertising helps in improving the standard of living of people by promoting variety and quality in
consumption. It educates people about new uses of a product and provides information for developing better
ways of leading life.

Types and Classification of Advertising Media:

Television Broadcasting:

 Television is considered as the most ideal form of advertising medium and has exhibited the most rapid
growth among other advertising mediums.
 Its ability to combine visual images, sound, motion, and colour presents the advertiser with the opportunity
to develop the most creative and imaginative appeals of any medium.

Radio Advertising:

 Radio is the other broadcast media which presents programmes and sells airtime in a manner similar to
television.
 National network, spot and local ads are the broadcast options for radio advertising. Unlike television which
combines sound with both sight and motion, radio depends entirely on sound.

Print Media:

 Print Media is the age old media available to advertisers for the purpose of message delivery. The term print
media is generally used to refer to newspaper and magazines.
 It is considered as a high involvement media because it involves active learning on the part of a reader.

Newspaper Advertising:

Newspaper widely competes with other forms of media in terms of its audience size and advertising revenues.
Over the years newspaper industry has responded to market requirements and introduced changes such as the
introduction of various newspaper additions catering to the requirements of geographic region, profession,
business, age and so on.

Measure Advertising Effectiveness

 Pre-test and Post Test: Pre-test implies testing advertising message before it is sent to specific media. Post
test implies testing impact of advertising message after it is published in any of the media.
 Communication and Sales Effect Test: Communication test measures communicability (ability to
communicate) of the message. Whereas sales-effect test measures advertising impact on sales volume.
 Laboratory and Field Test: Clearly, a laboratory test is conducted in a controlled environment in a limited
scale. Respondents are invited in a laboratory to state their response
 Message and Media Effect Test: While message test involves measuring clarity, contents, believability,
action ability, etc., of the message, the media test measures effectiveness/ suitability of one or more media.

Types of Outdoor Advertising

 Billboards

Billboards are some giant posters that are displayed in some of the most popular locations in the area. Now,
these giant posts are the ones that have some advertisement about the product or the services.

 Mobile

There are some graphics and advertisement options that are often seen on trucks and buses, and they seem to be
mobile. So any form of advertising media which is mobile can be used as Outdoor media.

 Digital

There are some other types of billboards which we are pretty sure that you are going to love for sure. You might
have seen a proper digital billboard which has some different advertisement every single time.

 Transit

Now, this is another form of excellent advertisement which can target the tourists, commuters, and people in the
city. These people are always using extreme types of transport. So, that is something which they can see a lot of
times.

 Outdoor Advertising on Bridges

You can opt for this type of advertising for targeting commuters, and for this, you can make a bridge banner for
busy pulling in more prospects.

Advertising Budget

An advertising budget is an amount set aside by a company planned for the promotion of its goods and services.
Promotional activities include conducting a market survey, getting advertisement creatives made and printed,
promotion by way of print media, digital media and social media, running ad campaigns etc

steps are followed to set up this budget –

 Setting advertising goals based on the company’s objectives.

 Determine the activities that are required to be done.
 Preparing the components of the advertising budget;
 Getting the budget approved by management;
 Allocation of funds for activities proposed under the advertisement plan;
 Periodically monitoring the expenses being incurred on the advertising process;

common methods are discussed as follows:

 Percentage of Sales: Under this method, the advertising budget is set as a percentage of either the past
sale or expected future sales. Small businesses usually use this method.
  Competitive Parity: This method advocates that a company sets an advertising budget similar to the
one that is set up by its competitor to yield similar results.
 Objective and Task: This method is based on the advertising objectives under this method. Once the
objectives are decided, the cost is estimated to complete those objectives, and accordingly, a marketing
budget is set.
 Market Share: In this method, the advertising budget is based on the market share of a company. For a
higher market share, less marketing budget is set.
 All available Funds: This is a very aggressive method under which all available profits are allocated
towards advertising activities. This method can be used by start-up businesses that need advertisements
to attract customers.
 Unit Sales: Under this method, the cost of advertisement per article is calculated and based on the total
number of articles, it is set.
 Affordable: As the name suggested, the company sets its budget based on how much it can afford to
spend.

Factors Affecting Advertising Budget

 Existing Market Share: A company having a lower market share will require to spend more on its
promotional activities. On the other hand, companies with larger market shares can spend less on their
promotional activities.
 Competition level in the industry: If there is a high competition level in the industry in which the
company operates, then the advertising budget would be required to be set on a higher side to get
noticed by audiences. In case monopoly exits or where there is the least level of competition involved,
the company will need to invest less in marketing.
 Stage of the Product Life Cycle: It is a well-known fact that in the initial introduction stage and growth
stage of a product or service, more amounts would be required for advertising. While in the later stages
of the product life cycle, the need for advertising will decline.
 Decided frequency of Advertisement: Advertising budget will also depend on how frequently a
company wants to run its ads. Frequent ads will call for a greater budget.

Advertising Agency

 An advertising agency is an independent company set up to render specialized services in advertising in

particular and in marketing in general. Today the term agency is a legal misnomer.
 These firms are not agents in the legal sense, but are independent companies. Advertising agencies started as
space brokers for the handling of the advertisements placed in newspapers.
 Through the years, however, the function of the agencies has changed. Their main job today is not to aid
media but to serve advertisers.
 It acts as an agent or consultant of the advertiser who is a manufacturer, wholesaler, or retailer. It is not an
agent in the legal sense. Originally, it acted as a space broker for advertisements given to the media owner,
e.g., newspapers.

Functions

Advertising Plan

Advertising agency either prepares or helps in preparing advertising plans and programmes for its clients.
Preparing an advertising plan needs concerted efforts and investigative information.
Creation and Execution

 An advertising plan, prepared by the advertising agency will be sent to the advertiser for approval. Once
approved, its execution is normally assigned to the agency.
 The agency enters into contracts with the suitable media and the stage is set for creating an effective
advertisement to suit the advertising media

Co-ordination

Coordination is another important function of an advertising agency. It has to ensure a proper coordination
between the clients, sales force and the distribution network to ensure long-run success of the advertising
programme.

Research

Research may enable them to make stronger presentation to their clients. It may help the copy and art personnel,
to create better advertisements for their clients.

Public Relations

The fundamental objective of this department is to build and maintain goodwill with the cross sections of
public. The tools used in communicating with the public are corporate advertising and publicity.

Factors To Consider Before Selecting An Advertising Agency

1. Total extent of the Agency:

In most cases, the larger the agency, the better quality of services offered by the same. When an agency operates
on a larger scale, it is pretty obvious that it has the financial prowess to hire a good amount of ad professionals.

2. Number of clients under the Agencies’ belt:

Most agencies have their own website or brochure. You must log on to their website and view the existing
clients being handled by the agency, before hiring them to carry out your own work

3. Types of services on offer:

It is essential to view the types of ad and non-ad based services offered by the agency. Depending on your
promotional needs and size or extent, you can hire a small or a large ad agency accordingly. Moreover, certain
types of agencies specialise in a particular field such as FMCG advertising while other agencies may specialise
in industrial marketing.

4. Creative talent possessed by the Agency:

You must always calculate the number and amount of creative personnel owned by the ad agency, as it forms
the basic criteria for selection. Creativity can be calculated on the basis of factors such as quality of personnel,
experience, diversity, specialisation and so on.

5. Media Contacts possessed by the Agency:

With the help of adequate media contacts, the agency will be able to accommodate the desired place, date and
time required for the promotion of your business. Agencies that closely work with most communication
channels such as radio channels, TV channels, publishers, printers and so on are the ones to consider.
6. Agency location and Proximity:
It is important to calculate the location of the agency for better communication and contact with the agency. The
closer the proximity to the agency, the better convenience, control and involvement with its activities.

Sales Promotion:

 Sales promotion refers to the promotional activities designed to encourage customers to make immediate
purchase of goods or services. These activities include the incentives viz. sales contest, free gifts, cash
discounts, free samples etc.
 Sales promotion usually supports other promotional activities like advertising, personal selling, publicity
etc. to increase sales in the short run.
 Every company designs sales promotion activities specific to customers, tradesmen, middlemen or dealers
and sales person.
 “Any paid form of short-term communication of ideas, goods and services by offering some incentives to
encourage the sales.” – ‘The American Marketing Association’

Sales promotion has the following advantages:

 Attention Value – Sales promotion activities attract attention of the people because incentives are related
with sales.
 Useful in New Product Launch – The sales promotional activities induce customers to break away from
their regular buying behaviour and try new products. Thus, sales promotion tools help to introduce new
products.
 Synergy in Total Promotional Efforts – Sales promotional activities supplement the other promotional tools
like advertising, personal selling etc. to make the overall promotional efforts of the firm effective.

Limitations of Sales Promotion:

Sales promotion activities help to make sealer promotional tools effective but there are certain limitations as
well.

 Reflects Crisis – Frequent sales promotional activities may give an impression to customers that the firm is
unable to create natural demand for its products or there are not too many takers for the product. It may send
a message that the company is clearing stocks.
 Spoils Product Image – Too many promotional activities may affect the product’s image. Customers’ may
feel that the product may not be of good quality or the company may be trying for distress sale.

Buying Motives

 D. J. Durdian, “Buying motives are those influences or considerations which provide the impulse to buy,
induce action or determine choice in the purchase of goods and services.”
 Behind every sale there is always a buying motive, but that motive is never merely to own the article on
question.
 It is on the other hand, always the prospects believe that ownership of the article will satisfy some specific
desire on his part. A motive is the inner state that moves, or prompts a person to action.
 In the words of W. J. Stanton, “A motive may be defined as a drive or an urge for which can individual
seeks satisfaction. It becomes a buying motive when the individual seeks satisfaction through the purchase
of something.”

Physical, Psychological and Sociological Buying Motives:

 The psychological buying motives are related to the satisfaction of basic human needs for subsistence such
as satisfaction of the needs for food, shelter and clothes, and security.
 The psychological buying motives relates to the need for prestige or self-preservation, etc. the sociological
buying motives are related to the motives that exist at present and is expected in all the social situations.

Acquired and Inherent Buying Motives:

 The acquired buying motives are learned motives and are influenced by the environment factors. Such
motives are related to socioeconomic conditions and the level of education, such as economy, information,
work efficiency, profit facility, quality, beauty, fashion, social presage, acceptance, etc.
 The inherent buying motives are present in a person from his birth. It belongs to basic human instincts
whereas the acquired buying motives are concerned with the environment.

Primary and Selective Buying Motives:

 The primary buying motives increase the general demands for products and not the specific demands for a
specified product/brand.
 The demands for radios, TVs, cars, motorcycles, etc. fall under this category of primary motives. The
selective buying motives influence for the purchase of specific brands, for instance, the demands for Bajaj’s
Chetak Scooter, Onida TV, Philips Radios, etc.

Conscious and Dormant Buying Motives:

 The conscious buying motives are such motives, which are identified by the buyer without any help from
marketing functions, like advertising, personal selling or promotional tools.
 The conscious buying motives influence the satisfaction of presently existing needs of a customer. Such
buying motives take shape within the sub-conscious minds of the customers and are not influenced by the
external environmental factors.

Product and Patronage Buying Motives:

 Product buying motives motivates a person towards purchasing a special products. This motive is a
generated by the physical and psychological features of the product, such as design, colour, size,
package, quality, price etc.

Consumer survey?

 Consumer Survey is a source to obtain information about consumer satisfaction levels with existing
products and their opinions and expectations regarding new products and services.
 For years now, Consumer Surveys have been instrumental in providing a platform for the clientele to
opine about an organization’s products or roadmap. These surveys are key sources of crucial
information from the consumers which in turn can heavily impact a company’s overall performance.
 Consumer survey should ideally be a systematically developed procedure by the marketers to garner
insights in real-time.
 Satisfaction levels among the consumer database can be measured by asking the right questions, answers
of which can be analyzed to create strategies for improvement.
 Product consumer satisfaction should be inline with the overall consumer satisfaction which can be
established by analyzing the answers received from the surveys.
 Decades ago, marketers preferred conducting consumer surveys using paper questionnaires or face-to-
face interviews. These modes proved to be highly cumbersome for those in-charge, giving way to online
Consumer Surveys which are currently supremely popular.
5 MARK

Slogan Advertising

 A slogan is a catchy phrase or series of words used to help consumers remember a company, brand or
product. Companies create slogans to use in various marketing efforts in hopes that the phrases will stick in
people's minds.
 That way, when a consumer needs a product or service offered by a variety of companies, that consumer
will choose the product or service that is top-of-mind from slogan recognition.
 Slogans must be memorable. They must give people an idea of what your company or product does and
must relate to your business in some way.
 Even though they consist of only a few words, slogans can take hours, sometimes much more, to write. Each
word has to be perfect.

Sales Contest

 The sales department is the only department which helps in generating revenue, and it is important to keep
the salespersons motivated and maintain a stimulating environment so that maximum sales can be achieved.
 Sales contest are used to organizations to boost the sales of a newly launched product or to make their
salesperson put more efforts to acquire more customers or to complete the annual target of sales.
 The incentives given as a reward for the sales contest are not part of regular incentives given to salesperson
when they achieve their target. These are added incentives which stimulate instant sales.
 Salespersons like these type of contests as they get the chance to earn extra within a short period and this
type of sales contests keep them on toes to work hard so that they can enjoy the reward.

Advantages

 Motivates team members by healthy competition:

 More Sales

 New Customers

 Deserving candidates get paid

Unethical Issues In Advertising

 In modern times, advertising has been playing a significant role in our socio-economic life. It is considered
an effective and cost efficient tool for communication.
 Though advertising is used for non economic purposes, it is highly used to attain business objectives. In this
era of globalization and deregulation, advertising has acquired a new status.
 It is normally believed that most of the advertisements today are the embodiment of unethical practices.
Most of the advertisements are viewed as offensive, indecent, vulgar, repulsive, and against public decency
o Forms of Unethical Advertising
 Alcohol Advertising
 Tobacco Advertising
 False Claims
 Exaggerated Claims
 Unverified claims
Corporate advertising?

 Corporate advertising is the advertising done for an entire institution/ company/ organization and not for
individual brands or products.
 This kind of activity is an extension of the Public Relations (PR) activity done by the company to improve
its image in the minds of the general public and increase its goodwill which is an extremely important
intangible asset.
 Instead of advertising for its individual brands and products, the corporate advertises to build its own image.
We know many companies across the globe which have numerous brands under them. HUL, P&G,
Volkswagen, General motors are some examples
 The main objective of corporate advertising is to improve the image of the company and make it a more
desirable workplace at times and also a desirable corporation to buy from.

objectives of corporate marketing:

1. Creating a positive brand image of the firm

2. Explain a view point to the public and to take a stand during controversial times
3. Engage and enhance employee morale
4. Maintain good relations with labour unions

Benefits of Radio Advertising

Tremendous Reach

Enables Selective Targeting

Radio allows messages to be tailored and localized to each targeted audience. Advertisers can direct their
message to specific demographics, psychographics, geographic areas, and around events and genres in a market.

Cost-Effective
Radio advertising can improve your campaign’s cost-effectiveness. The reason for this is information
transmitted through sound is more memorable, which, in turn, helps increase your brand’s “share of mind.”

Improves Brand Awareness

Radio enables you to speak openly to your listeners. Rather than seeing your name and associating it with an
online or outdoor display, those who’ve heard your radio ad a few times form a mental image of your brand
based on your tone, attitude, and message

Anywhere, Anytime Medium

People engage in a broad range of activities while listening to the radio — it’s your companion on your daily
commute and while you’re working in the office.

Provides Measurable Results

You can track and analyze radio ad results daily, and if the message is not working, a new radio spot can
replace it efficiently. Conversely, with TV and print advertising, it may take months for measurable results.

Unique Selling Proposition

 Unique Selling Proposition or USP is the one feature or the perceived benefit of a good which makes it
unique from the rest of the competing brands in the market.
 It is that very reason which motivates a buyer to purchase that product even though it might be costlier than
other products.
 The key to boost the sales of the product effectively through advertising is to highlight the USP of the
product prominently.
 Unless you highlight the USP, consumers will not be tempted to buy your product. Every product should
have its own USP, which makes it stand apart from other products in the similar category.
 USP alone can guarantee to a product’s success. Superior product quality and at par service, both before and
after-sale are very important in creating the foundations of a market for a product.

Public Relations

 Public Relations is a strategic communication tool that uses different channels, to cultivate favourable
relations for the company.
 It is a practice of building a positive image or reputation of the company in the eyes of the public by telling
or displaying the company’s products or services, in the form of featured stories or articles through print or
broadcast media.
 It aims at building a trust-based relationship between the brand and its customer, mainly through media
exposure and coverage.
 Public Relations can be called as non-paid publicity earned by the company through its goodwill, word of
mouth, etc.
 The tactics used in public relations are publicity, social media, press releases, press conferences, interviews,
crisis management, featured stories, speeches, news releases.

Competitive Parity Method:

 Competition is one of the powerful factors affecting marketing performance. This method considers the
competitors’ advertising activities and costs for setting advertising budget. The advertising budget is fixed
on the basis of advertising strategy adopted by the competitors.
 Thus, competitive factor is given more importance in deciding advertising budget. For example, if the close
competitors spend 3% of net sales, the company will spend, more or less, the same per cent for advertising.
 Here it is assumed that “competitors or leaders are always right.” If not followed carefully, this method may
result into misleading.
 It is obvious that a company differs significantly from the competitors in terms of product characteristics,
objectives, sales, financial conditions, management philosophy, other promotional means and expenses,
image and reputation, price, etc.
 Therefore, it is not advisable to follow the competitors blindly. Marketing/advertising manager should take
competitors’ advertising strategy as the base, but should not follow as it is.

Affordable or Fund Available Method:

 This is, in real sense, not a method to set advertising budget. The method is based on the company’s
capacity to spend.
 It is based on the notion that a company should spend on advertising as per its capacity. Company with a
sound financial position spends more on advertising and vice versa.
 Under this method, budgetary allocation is made only after meeting all the expenses. Advertising budget is
treated as the residual decision.
 If fund is available, the company spends; otherwise the company has to manage without advertising. Thus, a
company’s capacity to afford is the main criterion.
Print Media Advertising

 Print media advertising is a form of advertising that uses physically printed media, such as magazines and
newspapers, to reach consumers, business customers and prospects.
 Advertisers also use digital media, such as banner ads, mobile advertising, and advertising in social media,
to reach the same target audiences.
 The proliferation of digital media has led to a decline in advertising expenditure in traditional print media,
but print isn't dead.
 Print media advertising is physically printed media including newspapers, magazines, posters and billboards
and direct mail.
 Print media advertising offers advertisers the opportunity to target different readerships, with advertising
costs based on circulation and nature of the readership.

Post-testing methods:
 Inquiry tests:
o It is controlled experiment conducted in the field. In inquiry test, the number of consumer inquiries
produced by an advertising copy or the medium is considered as to the measure of its
communication effectiveness.

 Split-run test:
o A split-run test is a technique that makes possible testing of two or more ads in the same position,
publication, issued with a guarantee of each ad reaching a comparable group of readers.

 Recognition tests:
o Recognition is a matter of identifying something as having seen or heard before. It is based on the
memory of the respondent. It attempts to measure the ad effectiveness by determining the number of
respondents who have read or seen the ads before.

 Recall tests:
o Recalling is more demanding than recognizing as a test of memory. It involves respondents to
answer as to what they have read, seen or heard without allowing them to look at or listen to the ad
while they are answering.

 Sales tests:
o Sales tests represent controlled experiment under which actual field conditions than the simulated
are faced. It attempts to establish a direct relationship between one or more variables and sales of a
product or service.

Social Advertising?

 Social advertising is defined as a type of advertising used to optimize social interest causes to fulfill non-
commercial objectives, channel social development, and optimize brand awareness by using relevant
mediums.
 Social media platforms provide brands and companies specific and valuable user data, which helps them
maintain social relationships with customers to increase public awareness.
 The social networks are rich in data and personalized information of the customers. Therefore, the messages
or ads sent through Social Advertising stand an excellent chance to connect with people and expect an
immediate response from them.
Benefits

 Awareness of the Brand

 Improvisation in Conversion Rates

 ROI efficiency

 The loyalty of the Brand

 Insights of Marketing

Benefits of Online Advertising

The benefits of online advertising can be felt by businesses of all sizes, allowing business owners to deliver
relevant, personalised and timely messages to their customers at a fraction of the cost.

 Cost Efficiency
o One of the largest benefits of online advertising is that it is much more affordable compared with
other traditional adverting methods.

 Targeted Campaigns
o Traditional media such as flyers, television, billboards and direct mail offer no way to hone in on
your target market.
o Your budget is spent on showering your ad over as many people as possible, in the hope a few will
see your message and act. Online advertising gives us much more control.

 Global Reach
o If you have your eyes on overseas markets or are launching an international e-commerce business,
online advertising is a must.

 Measurable Performance
o Online marketing is also a lot easier to measure and quantify.
o Online analytics tools can help show what’s working for you and what’s not, allowing further
targeting of your marketing spend.

 Instant Feedback & Trust

o The internet, in particular social media websites such as Facebook, helps people connect with their
friends and family all over the world. It can also help you contact your audience via many different
platforms.

AIDA Model in Marketing

The AIDA Model, which stands for Attention, Interest, Desire, and Action model, is an advertising effect model
that identifies the stages that an individual goes through during the process of purchasing a product or service.
The AIDA model is commonly used in digital marketing, sales strategies, and public relations campaigns.

 Attention
o Often, the attention part is overlooked by many marketers. It is assumed that the product or service
already got the attention of the consumers – which may or may not be the case. In any event, don’t
just assume that everyone is already aware of your product
 Interest
o Creating interest is generally the hardest part. For example, if the product or service is not inherently
interesting, this can be very difficult to achieve. Make sure that advertising information is broken up
and easy to read, with interesting subheadings and illustrations.

 Desire
o The second and third steps of the AIDA model go together. As you are hopefully building interest in
a product or service, it is important that you help customers realize why they “need” this product or
service.

 Action
o The last step of the AIDA model is getting your consumer to initiate action. The advertisement
should end with a call to action – a statement that is designed to get an immediate response from the
consumer. For example, Netflix uses persuasive text to convince the consumer to try their free trial.

Publicity

 Publicity is also a way of mass communication. It is not a paid form of mass communication that involves
getting favourable response of buyers by placing commercially significant news in mass media.
 Publicity is not paid for by the organisation. Publicity comes from reporters, columnists, and journalists. It
can be considered as a part of public relations.
 Publicity involves giving public speeches, giving interviews, conducting seminars, offering charitable
donations, inaugurating mega events by film actors, cricketers, politicians, or popular personalities,
arranging stage show, etc., that attract mass media to publish the news about them.
 Publicity is undertaken for a wide range of purposes like promoting new products, increasing sales of
existing product, etc.
 “Non-personal stimulation of demand for the product or service, or business unit by placing commercially
significant news about it in public medium or obtaining favourable presentation of it upon radio, television,
or stage that is not paid for by the sponsor.” - Philip Kotler

Survey Method

 The Survey method is the technique of gathering data by asking questions to people who are thought to have
desired information.
 A formal list of questionnaire is prepared. Generally a non disguised approach is used. The respondents are
asked questions on their demographic interest opinion.

Advantages of Survey Method

1. As compared to other methods (direct observation, experimentation) survey yield a broader range of
information. Surveys are effective to produce information on socio-economic characteristics, attitudes,
opinions, motives etc and to gather information for planning product features, advertising media, sales
promotion, channels of distribution and other marketing variables.
2. Questioning is usually faster and cheaper that Observation.
3. Questions are simple to administer.
4. Data is reliable
5. The variability of results is reduced.
6. It is relatively simple to analyze, quote and interrelate the data obtained by survey method
Disadvantages of Survey Method

1. Unwillingness of respondents to provide information- This requires salesmanship on the part of the
interviewer. The interviewer may assure that the information will be kept secret or apply the technique
of offering some presents.
2. Inability of the respondents to provide information- This may be due to
a. Lack of knowledge
b. Lapse of memory
c. Inability to identify their motives and provide “reasons why?” for their actions
3. Human Biases of the respondents are there, for eg: “Ego”
4. Symantec difficulties are there - it is difficult, if not impossible, to state a given question in such a way
that it will mean exactly same thing to each respondent.

Evaluate Effectiveness Of Advertisements

Measuring the effectiveness of advertising programme in the limited market area is one of the important task
of the advertising manager. If different media and different advertisements are used in different markets, the
effectiveness of the different media and advertisement can be evaluated.

Exposure

In order to be effective, an advertisement must gain exposure, i.e., how many consumers have seen or heard
about the message. Without exposure, advertising is doomed to failure. Whether the media used has exposed the
idea can be found out by:

 Examining its circulation or audience data (i.e., number of print copies sold, persons passing billboards
or riding in city buses, persons living in radio-listening area, etc.); or
 Conducting readership or “listenership” surveys.

Attention

Advertisement cannot be effective unless they get the attention of target consumers. This attention getting
response can be obtained by asking consumers to indicate the degree to which they recognize or recall each
advertisement. Various mechanical devices provide indices of attention.

Comprehension

Consumers utilize advertisements as a means of obtaining information. They cannot be informed unless they
comprehend the message. Marketers use various tests of comprehension, such as recall tests, i.e., consumers
will recall what they comprehend.

Attitude Change

Attitudes towards the product or organization, both before and after the appearance of an advertisement, are
measured by measuring instruments which normally contains 15 to 20 sales.

Action

Advertising aims at stimulating action or behavior. The intention can be measured by instruments, and the
answers to certain questions may be analyzed to find out the future trends in purchasing.
After-Sales Service Support?

 After-sales support, sometimes called after-sales service, is any service provided after a customer has
purchased a product.
 After-sales support may be provided by a retailer, manufacturer, or a third-party customer service or
training provider. Typically, examples of after-sales service include support regarding warranty service,
training, or repair and upgrades. After-sales support may also be considered to be part of a company's
overall marketing strategy
 After-sales support helps ensure that a customer gets as much use and value as possible out of their
purchase. This may entail training on existing features or education about new uses or capabilities.
 The business reasoning behind after-sales support is that it can contribute to brand loyalty and repeat
sales; happier customers tend to create repeat customers. Good after-sales services can also result in
positive word-of-mouth for a company.

o Help Desk and Technical Support Services

o Real-Time Online Support

o Automated Support Resources

o Automated Customer Service Lines

Patronage Motives?

Patronage Motives are the reasons or considerations which makes a buyer to prefer one particular retailer, outlet
or service provider over others.

Example:

Certain consumers’ preference to buy Samsung Mobile phones over Apple’s iPhone.

Emotional Patronage buying motives:

When a consumer patronages a particular retailer or outlet without any reasoning then he is said to be
influenced by emotional patronage buying motives. Those motives are include

 Appearance of the store

 Display of goods inside the store
 Recommendations from Influencers
 Prestige
 Habits
 Imitation

Rational Patronage buying motives:

When a consumer patronages a particular retailer by considering the possible benefits through logical reasoning
then he is said to be influenced by rational buying motives. Those motives include

 Convenience
 Low price offered at the shop
 Availability of credit facilities
  Sale person efficiency
 Availability of wide options
 Reputation of the shop

Difference Between Advertising and Personal Selling