Brand Promotion by ajaysharma1185

VIEWS: 132 PAGES: 89

									       A PROJECT REPORT ON


           SUBMITTED TO

          Col. RAJ DUGAL

           SUBMITTED BY
      DHANKAWADI PUNE-411043


We have taken this opportunity to express our sincere gratitude towards the
pillars of successful completion of our 4th Semester Projects at BVU-COE
without whose unflinching assistance & co-operation at all times it would
rather have been impossible for us to achieve the desired goal.
Technologically advancement will enable us to get the environment we
desire. In this era of modernization & sophistication our endeavour to
achieve complete and perfect knowledge in the field we choose will be
successful only with the help of guidance, direction, stimulation &
encouragement by our esteemed professors. We the students of PGD-
Telecom Management are proud to reiterate that our best professors have
always emphasized on the importance of self-culture and stimulate us to gain
possible knowledge by exercise of our own facilities. They have tried to
make their students ‘active partners’ in the work of education, but not
passive receivers of information. The great mantra of success according to
our respected director Col. RAJ DUGAL is “Know your passion quotient
first, get hold of it and work with complete dedication to achieve your goal.”
We express our sincere thanks to our respected director Col. RAJ DUGAL
deputy director Prof. Col. V.J.GOMAS, Prof. PRASANT HINDUJA for
availing us this great opportunity to learn vital element of this corporate
world through 4th Semester Projects. We also express our sincere gratitude
toward all other faculties and staff of BVU-COE AMPLIFY, DITM who
always helped us to know and learn various aspects of telecom management
at various stages of our curriculum.

                               TABLE OF CONTENT

SNO        CONTENT                                PAGE NO
1.         OBJECTATIVE OF REPORT                  4
2.         RESEARCH METHODOLOGY                   5
3.         WHAT IS “BRAND”?                       6
              A. CONCEPT                          6
              B. HISTORY OF BRANDING              8
              C. TYPES OF BRANDIND                9
              D. PRODUCT VS BRAND                 12
           E. SELECTION OF BRANDS                 19
4.         BRAND STRATEGIES                       20
5.         BRAND PROMOTION GUIDE                  28
6.         WHAT IS “PROMOTION”?                   35
7.         ADERTISING                             70
8.            A. TYPES OF ADVERTISING             71
              B. ADV & CONSTITUTITIONAL RIGHT     76
              C. OPPOSITIONS                      88
              D. FUTURE                           91
9.         FINDINGS                               93
10.        CONCLUSION                             94

                  1. OBJECTIVE OF REPORT

 Objective of this report is to below:-

      1- The cause & effect.

      2- Future consequences of the BRAD BAND.

      3- Its impact on Global Marketing impact.
   4- Its impact on developing countries like India.

   5- Steps taken by the all new company and brand.

   6-   Present method and strategy.

   7-   Time and case of brand promotion.

                 2. RESEARCH METHODOLOGY

Hence we have evaluated TM as a B-school and as a brand. First we had gone
through questionnaire which we supposed to ask to targeted respondents.
Then we had discussion over pros and cons of each segment of questionnaire so
that no one should face problem while dealing with odd or unexpected response
from respondent. We divided the target respondents by quota sampling technique.

We gathered required data and scrutinised it well for its correctness and validity.
Then we analysed the particular segments of questionnaire which were probing
more towards decision of investment in to the ITM institute.
To add on to the client’s requirements we have also highlighted the areas where
improvement is required in ITM and the vital areas which require more flow of
financial resources towards them.


                       3. WHAT IS BRAND

BRAND:- A brand is a collection of experiences and associations connected with
a service, a person or any other entity.
Brands have become increasingly important components of culture and the
economy, now being described as "cultural accessories and personal philosophies".
"A company's brand is the primary source of its competitive advantage and a
valuable strategic asset."
"A company's brand is the primary source of its competitiveadvantage and a
valuable strategic asset." differentiates from the rest.”
Some people distinguish the psychological aspect of a brand from the experiential
aspect. The experiential aspect consists of the sum of all points of contact with the
brand and is known as the brand experience. The psychological aspect,
sometimes referred to as the brand image, is a symbolic construct created within
the minds of people and consists of all the information and expectations associated
with a product or service.
People engaged in branding seek to develop or align the expectations behind the
brand experience (see also brand promise), creating the impression that a brand
associated with a product or service has certain qualities or characteristics that
make it special or unique. A brand is therefore one of the most valuable elements
in an advertising theme, as it demonstrates what the brand owner is able to offer in
the marketplace. The art of creating and maintaining a brand is called brand
Careful brand management, supported by a cleverly crafted advertising campaign,
can be highly successful in convincing consumers to pay remarkably high prices
for products which are inherently extremely cheap to make. This concept, known
as creating value, essentially consists of manipulating the projected image of the
product so that that the consumer sees the product as being worth the amount that
the advertiser wants him/her to see, rather than a more logical valuation that
comprises an aggregate of the cost of raw materials, plus the cost of manufacture,
plus the cost of distribution. Modern value-creation branding-and-advertising
campaigns are highly successful at inducing consumers to pay, for example, 50
dollars for a T-shirt that cost a mere 50 cents to make, or 5 dollars for a box of
breakfast cereal that contains a few cents' worth of wheat.
A brand which is widely known in the marketplace acquires brand recognition.
When brand recognition builds up to a point where a brand enjoys a critical mass
of positive sentiment in the marketplace, it is said to have achieved brand
franchise. One goal in brand recognition is the identification of a brand without
the name of the company present. For example, Disney has been successful at
branding with their particular script font (originally created for Walt Disney's
"signature" logo), which it used in the logo for
Consumers may look on branding as an important value added aspect of products
or services, as it often serves to denote a certain attractive quality or characteristic
(see also brand promise). From the perspective of brand owners, branded products
or services also command higher prices. Where two products resemble each other,
but one of the products has no associated branding (such as a generic, store-
branded product), people may often select the more expensive branded product on
the basis of the quality of the brand or the reputation of the brand owner.
Brand name:-
The brand name is often used interchangeably within "brand", although it is more
correctly used to specifically denote written or spoken linguistic elements of any
product. In this context a "brand name" constitutes a type of trademark, if the brand
name exclusively identifies the brand owner as the commercial source of products
or services. A brand owner may seek to protect proprietary rights in relation to a
brand name through trademark registration. Advertising spokespersons have also
become part of some brands, for example: Mr. Whipple of Charmin toilet tissue
and Tony the Tiger of Kellogg's.
Brand identity:-
How the brand owner wants the consumer to perceive the brand - and by extension
the branded company, organization, product or service. The brand owner will seek
to bridge the gap between the brand image and the brand identity.[2] Brand identity
is fundamental to consumer recognition and symbolizes the brand's differentiation
from competitors.
Branding approaches/Company name:-
Often, especially in the industrial sector, it is just the company's name which is
promoted (leading to one of the most powerful statements of "branding"; the
saying, before the company's downgrading, "No one ever got fired for buying
In this case a very strong brand name (or company name) is made the vehicle for a
range of products (for example, Mercedes-Benz or Black & Decker) or even a
range of subsidiary brands (such as Cadbury Dairy Milk, Cadbury Flake or
Cadbury Fingers in the United States).

                    B.HISTORY OF BRANDING

Although connected with the history of trademarks and including earlier examples
which could be deemed "protobrands" (such as the marketing puns of the
"Vesuvinum" wine jars found at Pompeii), brands in the field of mass-marketing
originated in the 19th century with the advent of packaged goods. Industrialization
moved the production of many household items, such as soap, from local
communities to centralized factories. When shipping their items, the factories
would literally brand their logo or insignia on the barrels used, extending the
meaning of "brand" to that of trademark.
Bass & Company, the British brewery, claims their red triangle brand was the
world's first trademark. Lyle’s Golden Syrup makes a similar claim, having been
named as Britain’s oldest brand, with its green and gold packaging having
remained almost unchanged since 1885.
Cattle were branded long before this; the term "maverick", originally meaning an
unbranded calf, comes from Texas rancher Samuel Augustus Maverick who,
following the American Civil War, decided that since all other cattle were branded,
his would be identified by having no markings at all.
Factories established during the Industrial Revolution, generating mass-produced
goods and needed to sell their products to a wider market, to a customer base
familiar only with local goods. It quickly became apparent that a generic package
of soap had difficulty competing with familiar, local products. The packaged goods
manufacturers needed to convince the market that the public could place just as
much trust in the non-local product. Campbell soup, Coca-Cola, Juicy Fruit gum,
Aunt Jemima, and Quaker Oats were among the first products to be 'branded', in an
effort to increase the consumer's familiarity with their products. Many brands of
that era, such as Uncle Ben's rice and Kellogg's breakfast cereal furnish
illustrations of the problem.
Around 1900, James Walter Thompson published a house ad explaining trademark
advertising. This was an early commercial explanation of what we now know as
branding. Companies soon adopted slogans, mascots, and jingles which began to
appear on radio and early television. By the 1940s, manufacturers began to
recognize the way in which consumers were developing relationships with their
brands in a social/psychological/anthropological sense.
From there, manufacturers quickly learned to build their brand's identity and
personality (see brand identity and brand personality), such as youthfulness, fun
or luxury. This began the practice we now know as "branding" today, where the
consumers buy "the brand" instead of the product. This trend continued to the
1980s, and is now quantified in concepts such as brand value and brand equity.
Naomi Klein has described this development as "brand equity mania". In 1988, for
example, Philip Morris purchased Kraft for six times what the company was worth
on paper; it was felt that what they really purchased was its brand name.
Marlboro Friday: April 2, 1993 - marked by some as the death of the brand [1] - the
day Philip Morris declared that they were to cut the price of Marlboro cigarettes by
20%, in order to compete with bargain cigarettes. Marlboro cigarettes were
notorious at the time for their heavy advertising campaigns, and well-nuanced
brand image. In response to the announcement Wall street stocks nose-dived for a
large number of 'branded' companies: Heinz, Coca Cola, Quaker Oats, PepsiCo.
Many thought the event signalled the beginning of a trend towards "brand
blindness" (Klein 13), questioning the power of "brand value".

                        C.TYPES OF BRANDIND
Individual branding:-
Main article: Individual branding
Each brand has a separate name (such as Seven-Up or Nivea Sun (Beiersdorf)),
which may even compete against other brands from the same company (for
example, Persil, Omo, Surf and Lynx are all owned by Unilever).

Attitude branding:-
Attitude branding is the choice to represent a larger feeling, which is not
necessarily connected with the product or consumption of the product at all.
Marketing labeled as attitude branding include that of Nike, Starbucks, The Body
Shop, Safeway, and Apple Computer.[1] In the 2000 book, No Logo, attitude
branding is described by Naomi Klein as a "fetish strategy".
"A great brand raises the bar -- it adds a greater sense of purpose to the experience,
whether it's the challenge to do your best in sports and fitness, or the affirmation
that the cup of coffee you're drinking really matters." - Howard Schultz (president,
ceo and chairman of Starbucks).

"No-brand" branding:-
Recently a number of companies have successfully pursued "No-Brand" strategies,
examples include the Japanese company Muji, which means "No label" in English
(from 無印良品 --- "Mujirushi Ryohin" --- literally, "No brand quality goods") .
Although there is a distinct Muji brand, Muji products are not branded. This no-
brand strategy means that little is spent on advertisement or classical marketing
and Muji's success is attributed to the word-of-mouth, a simple shopping
experience and the anti-brand movement. Another brand which is thought to
follow a no-brand strategy is American Apparel, which like Muji, does not brand
its products.

Derived brands:-
In this case the supplier of a key component, used by a number of suppliers of the
end-product, may wish to guarantee its own position by promoting that component
as a brand in its own right. The most frequently quoted example is Intel, which
secures its position in the PC market with the slogan "Intel Inside".

Brand extension:-
The existing strong brand name can be used as a vehicle for new or modified
products; for example, many fashion and designer companies extended brands into

fragrances, shoes and accessories, home textile, home decor, luggage, (sun-)
glasses, furniture, hotels, etc.
Mars extended its brand to ice cream, Caterpillar to shoes and watches, Michelin to
a restaurant guide, Adidas and Puma to personal hygiene. Dunlop extended its
brand from tires to other rubber products such as shoes, golf balls, tennis racquets
and adhesives.
There is a difference between brand extension and line extension. When Coca-Cola
launched "Diet Coke" and "Cherry Coke" they stayed within the originating
product category: non-alcoholic carbonated beverages. Procter & Gamble (P&G)
did likewise extending its strong lines (such as Fairy Soap) into neighboring
products (Fairy Liquid and Fairy Automatic) within the same category, dish
washing detergents.

Alternatively, in a market that is fragmented amongst a number of brands a
supplier can choose deliberately to launch totally new brands in apparent
competition with its own existing strong brand (and often with identical product
characteristics); simply to soak up some of the share of the market which will in
any case go to minor brands. The rationale is that having 3 out of 12 brands in such
a market will give a greater overall share than having 1 out of 10 (even if much of
the share of these new brands is taken from the existing one). In its most extreme
manifestation, a supplier pioneering a new market which it believes will be
particularly attractive may choose immediately to launch a second brand in
competition with its first, in order to pre-empt others entering the market.
Individual brand names naturally allow greater flexibility by permitting a variety of
different products, of differing quality, to be sold without confusing the consumer's
perception of what business the company is in or diluting higher quality products.
Once again, Procter & Gamble is a leading exponent of this philosophy, running as
many as ten detergent brands in the US market. This also increases the total
number of "facings" it receives on supermarket shelves. Sara Lee, on the other
hand, uses it to keep the very different parts of the business separate — from Sara
Lee cakes through Kiwi polishes to L’eggs pantyhose. In the hotel business,
Marriott uses the name Fairfield Inns for its budget chain (and Ramada uses
Roadway for its own cheaper hotels).

Cannibalization is a particular problem of a "multiband" approach, in which the
new brand takes business away from an established one which the organization
also owns. This may be acceptable (indeed to be expected) if there is a net gain
overall. Alternatively, it may be the price the organization is willing to pay for
shifting its position in the market; the new product being one stage in this process.
Own brands and generics:-
With the emergence of strong retailers the "own brand", a retailer's own branded
product (or service), also emerged as a major factor in the marketplace. Where the
retailer has a particularly strong identity (such as Marks & Spencer in the UK
clothing sector) this "own brand" may be able to compete against even the
strongest brand leaders, and may outperform those products that are not otherwise
strongly branded.
Concerns were raised that such "own brands" might displace all other brands (as
they have done in Marks & Spencer outlets), but the evidence is that — at least in
supermarkets and department stores — consumers generally expect to see on
display something over 50 percent (and preferably over 60 percent) of brands other
than those of the retailer. Indeed, even the strongest own brands in the UK rarely
achieve better than third place in the overall market.
This means that strong independent brands (such as Kellogg's and Heinz), which
have maintained their marketing investments, are likely to continue their strong
performance. More than 50 per cent of UK FMCG brand leaders have held their
position for more than two decades, although it is arguable that those which have
switched their budgets to "buy space" in the retailers may be more exposed.

The strength of the retailers has, perhaps, been seen more in the pressure they have
been able to exert on the owners of even the strongest brands (and in particular on
the owners of the weaker third and fourth brands). Relationship marketing has been
applied most often to meet the wishes of such large customers (and indeed has
been demanded by them as recognition of their buying power). Some of the more
active marketers have now also switched to 'category marketing' - in which they
take into account all the needs of a retailer in a product category rather than more
narrowly focusing on their own brand.

At the same time, probably as an outgrowth of consumerism, "generic" (that is,
effectively unbranded) goods have also emerged. These made a positive virtue of
saving the cost of almost all marketing activities; emphasizing the lack of
advertising and, especially, the plain packaging (which was, however, often simply
a vehicle for a different kind of image). It would appear that the penetration of
such generic products peaked in the early 1980s, and most consumers still appear
to be looking for the qualities that the conventional brand provides.

                  D. Product vs Brand

• A product is made in a factory…
A Brand is bought by the customer.
• A Product can be copied… A brand is unique.
A product is quickly outdated…Abrand is timeless
Brands differentiate Products
• Fairness Creams: Fair & Lovely vs Ponds
    Dream Fairness
• Coconut Hair Oil: Parachute vs Dabur
• Cola: Coca Cola vs Pepsi

                     E. Selection of Brands

The Brand Promotion Grant will only be granted to eligible brands identified to be
assisted by the Brand Grant Approval Committee. Evaluation of brands to be
selected for the grant will be based on several considerations including:-

• Branding strategy and Plan.

• Business and Marketing Plan.

• Resources invested by the company on branding and its commitment to the
branding programme.

• Activities undertaken to promote the brand.

• Trend in overall sales and exports over past 3 years.

• Market share both local and overseas.

• Potential for the brand to further expand in the international market.

• How the brand will help project Malaysia's image as supplier of quality products
and services.

                   4. BRAND STRATEGIES

To Fuel the Brand Engine
• Strategy 1:- Extension- Giving birth to new product brands
• Strategy 2 :- Revitalization- Injecting life to the existing brand

Brand Revitalization Strategy:-
Injecting life to same brand, energizing a mature brand Need to inject life into the
Mature Brand “Facelift” … Recharging the Brand Batteries
Brand Decisions: Leveraging Brand Identity
• Brand Extension Strategy
• Brand Revitalization / “Restage”
• Brand Identity: What does a Brand mean / stand for
• Brand Extension: What would you like (enjoy, love, admire) the brand to do for
• Brand Revitalization: How would you like to see the Brand tomorrow (Future
• Brand System / Architecture: What are the important Relations that the Brand
Brand Extension Strategy:-
Brand Growth
– Mature brand : provide fillip to stagnating sales
– Threat of new entrants: Protect Market Share
– Strengthen franchise
• Enhance Brand Image
– Strengthen Brand Identity
– Revive core values
Ways in which a Brand can be Extended
1. Line Extension
2. Brand Extension
3. Multiple Brands
4. New Brands

1.Line Extension Strategy
• Extend existing brand name to existing product category: Identify & occupy
different segments of the market – “market fragmentation”
– Pack variants: shampoos: sachets to economy packs…tubes to jars, bottles to
cans : differentiate uses
– Price variants: Rin Shakti to Rin Supreme. Taj Luxury to Taj Executive:
differentiate user groups… Parachute Uttam (differentiate Line Extension

2. Brand Extension Strategy
• Flavours / Variants: Diet Coke, Sunsilk Black, Parachute Lite…. Hair type, skin
type, user groups: Differentiate user needs … Colgate Gel, MaggiChinese Noodles
• Ingredient Lead: Lux Sunscreen, Pond’s Talc with SAM : upgrade user needs
Brand       Extension Strategy
• Extend the brand name to a new Product Category: Brand fit in a new business
– Supplementary Categories: BPL TV to Washing machines, Maggi soups &
sauces, Lakme lipsticks to perfumes
– Complementary Categories: Colgate toothbrush & toothpaste
– Image Accessories: Bennetton T-shirts to sun-glasses, Nike sports shoes to T-
– Diverse Categories: Similar core values: Britannia biscuits to dairy products

3.Multiple Extension Strategy
• New Brand names in the same product category “market saturation”
• Expensive strategy: Leading corporates… often through acquisitions…
economies of scale
– HLL soaps- Lux, Breeze, Kai, Hamam,Lifebuoy, Dove, Pears
– P&G Detergents: Ariel, Tide
– Coca Cola: Coca Cola, Thums Up…
– Lakme: Elle 18, Orchids

4.New Brand Strategy
• New Brand Name for a product category: poor brand fit but business potential
– Kotex to Kleenex
– Huggies to Depend
– Thums Up to Gold Spot, Pepsi to Mirinda
– Lakme to Elle 18
Stretching the Brand Vertically Understanding the terms:
• Vertical stretch: Technically a Line extension since it is the introduction of Price
Variants of an existing Brand in the existing Product Class
• Stretching Up: Extending the Brand to a Higher Priced Segment
Eg: From Surf detergent 500g at Rs 43 to Surf Excel detergent 500g at Rs 60
• Stretching Down: Extending the brand to a Lower Priced Segment
Eg: From Ariel Washing Powder to Ariel Gain Washing Powder

Effect of Brand Extensions
• More Good: Extension enhances Brand name.
• Good: Extension aids Brand Name
• Bad: Extension fails to help Brand Name
• Ugly: Extension Damages Brand Name
• More Ugly: Brand Name is Forgone Post Mortem
• Colgate Gel: More Good
• Rexona Does: More Good
• Close Up Whitening: Good or Bad ? (credibility?)
• Amul Pizza : Good or Bad (price?)
• Britannia Cheese, Ghee… More Good
• Sunsilk Hairoil : Bad (Identity or product?)
• Diet Coke: Bad… Good?? (Identity… Market evolution)
• Frooti Apple Drink: Ugly (Identity?)
Good understanding of the Brand Identity… may or may not lead to the Success of
the Brand Extension. But a poor understanding of Brand Identity will definitely
lead to the failure of the Brand Extension… & may also damage the existing
Brand Revitalization
• Inject life into a Mature Brand = Facelift
• Enhance Brand equity: improved recognition, enhanced perceived value, changed
associations, an expanded consumer base & or increased loyalty
• Movement from milking Cash Cows to Brand Restage (External Stars), ina
competitive context
• Recognition of the Power of Old Brands

Increased Usage
• Increased Salience: Dettol
• Increased Frequency/Regular Use: Shampoos : Head & Shoulders, economy
pack, travel pack
• Incentives/Promotions: Filmfare,
Frequent Flier Programs New Uses
• New Gifting Solutions: Tiffany’s & Cadbury’s
• Festive Occasions: Asian Paints
• Multiple Functional Uses: Milkmaid recipes
• Behavioral shifts: Moov – Sprains to Back Aches New Markets
• Redefine Target Segment: Cadbury’s Dairymilk Chocolates for Adults
• Growth in new segments: Personal Computers Repositioning the Brand
• Image Upgrade: Philips “Lets make things Better”
• Revive Image: Lakme, Dettol
• Change Association: Britannia from biscuits to healthy food Augmenting the
• Packaging Upgrade: Crocin, Shampoo, fliptops
• Product Upgrade: New improved Lux
• Increased Customer
Involvement: Wills & Cricket, Sunsilk & Parlours, Surf & Laundry Service
Obsolescing the Product
• Fashion Products: Colour cosmetic range, Revlon, Designer Watches-Titan
• Technology Products: Sony Music… mobiles… Windows
• Dying Categories: Pond’s vanishing cream – Oil Balanced Formula Restage Vs
• Restage: Maintain the Star Status of a product through constant innovation &
activity to CONTINUOUSLY enhance the brand equity salience over a period of
• Re-engineer: To reinstate the Star Status of a Cash Cow / Dog product…. inputs
risk…. multiple changes to be orchestrated in conjunction …..
Remember… If you don’t, someone What Iodex did not do, Moov did. What HMT
did not do, Titan did What Indian Airlines did not do, Jet Airways did. Brand
Exercise• Develop a Benefit Ladder for the product Category based on Consumer
needs / Motivation
• Create a perceptual map for the leading 3-4 brands in the Category
• Outline the Brand Image (from consumer research & Brand Values assuming the
of the Company)
• Give 3 possibilities of Brand extension, Line extension and Brand Revitalization
• Develop a brand Positioning Statement
• Identify a consumer insight which you can Motivation Perception Image
Insight…. Question Bank
1. How would you describe Hit as a person vs Raid vs Baygon?
2. Imagine 10 years from now, where would you see these people… (individually)
3. Can you describe their family members
4. Which animal would you associate with the following brands?
5. Which Car would you associate with eash of the above brands?
6. Which celebrity / sport person would you associate with each of the above
7. Which kind of person do you think will use the above brands?

Building a strong business using the Internet is a challenge. E-commerce can yield
tremendous returns, and may prove more cost-effective than traditional ways of
doing business.
The number of people using the Internet continues to grow, providing an attractive
growth opportunity for e-commerce. This means that the Internet will be important
for businesses in the foreseeable future. However, there is a growing list of
companies which have learned the hard way that they have to build their e-business
on a sound platform. Traditional marketing techniques remain valid. Developing
and maintaining the e-business solutions to communicate with people online,
whether via a PC, mobile phone or even a fridge, is an expensive investment in
technology and marketing. It has to create a return. A business web site has to
work effectively. The right people need to see it. It has to sell. And it has to give
reasons for users to come back.
This simple 10 Steps guide is designed to help you in planning and marketing your
web site to achieve your e-business objectives.
Step 1. What are your objectives for the site? What is its purpose?
'To be seen to be there' or 'because my competitor is there' are really no longer
viable justifications for being on the 'Net!
There are four clear stages of web development that can be identified:
- promotional tool - an interactive, online brochure
- sales tool - customers can place orders via the site
- process improvement - integration with other parts of the business
- new business model - integrate customer care, relationship management,
distributor management
You need to consider where you are in terms of development and therefore
which of the following purposes are in your short and
medium term plans:
- providing information
- giving a preview of products or services
- selling products or services online
- delivering sales online (e.g. software, data etc.)
- reaching new markets (e.g. by segment, geographically)
- reducing customer servicing and distribution costs
- managing customer relationships
- building customer lifetime value
- generating revenue though advertising (e.g. portals) and to add your
  specific objectives.
Step 2. Assess your online marketing mix

Can you put together the right 'marketing mix' or commercial package to
meet the needs of your target audience and your own objectives? Products
Be sure that your products or services are suitable for selling online. How
complicated is the purchase decision? What does the buyer need to know? As e-
commerce grows, it is becoming increasingly common to buy books, travel, CDs,
and groceries online - even to manage all one's personal finances. But ever
more unusual consumer products are starting to be sold successfully via the 'Net, as
well as quite complex business products and services. As penetration of the
Internet increases and users become more sophisticated, what are their expectations
likely to be for you to sell online? Should you sell your core product range or a
different level of service and a different type of product?
There are increasing customer expectations that online goods will be cheaper.
What impact will reducing prices have on your business? Do you actually want to
cannibalise offline sales?
What will be the overall impact on your margins of selling online? Will it cut your
costs? What impact on distribution costs?
Fulfillment is key here. An online sale is effectively a direct sale, and you need to
be sure that you have all the systems and capabilities in place to process the order,
deliver efficiently and deal directly with customers.
The e-business needs customer-pull to generate sales, as there is no intermediary to
do it for you. Can you afford to rely on search engines and telling your customers
you have a site? Do you have the budget to build an appropriate campaign to drive
people to your site in the competitive world of the Internet? More of this in step
Unfortunately not all sales go through smoothly. There are sometimes problems.
Buyers often need more information or reassurance before they buy. Some
products, like investments, can't even be fully transacted over the Web yet. What
customer service issues might you face? And what media will you set up to handle
customers? As the Internet is still less favoured by consumers for obtaining
information than the use of telephone, post or face to face, will you need desk staff,
and or a call centre?
Step 3. Define your online customers
Consider who you want to talk to through your web site. Your online audience may
differ from that addressed by your current business. Will you use your web site to
target new customer groups - e.g. in other countries not served by your existing
How can you use the web to grow business with your existing customers through
relationship management? Talking to them more directly than before, can you find
ways to offer further opportunities for them to buy and build their lifetime value
you? What information can you collect to ensure that these opportunities are really
well targeted?
Step 4. Plan the project implementation
Like most projects, the time invested in planning a web site - from the start or
when redeveloping - will pay dividends. You need to plan each phase of the
process, and note that it may take longer than you think! Do you know what you
want to achieve at each stage of the project? Do you know exactly what you need
to communicate through the site? What back end systems and integration will you
need to be able to deliver all that is promised on the site?
You'll need to brief this clearly to your suppliers (internal or external) to ensure
they create a workable solution for you. They can then develop a site map, design
concepts and functional specifications. Copy can then be written, as the last
Step 5. Select the team
Internally, your e-commerce team would ideally have a range of skills, including
marketing, and IT. The project manager needs to be a hybrid, with ideally some
marketing knowledge, a feel for design and an understanding of IT speak – such
people are in high demand! Most businesses then look outside for specialist
suppliers. Use experienced consultancies for the planning, design, development,
programming and ongoing management of your site. The newness and excitement
of the Internet has drawn in many different types of company who all offer web
site design services. Graphic designers will focus on the design of web pages; IT
companies on database integration and linking your
computer systems. Marketing expertise in the Internet world is less easy to find,
with a few companies such as Zed-Axis available to provide it. Which of these
skills are you likely to need to give you the best chance of success on the Web?
Step 6. Scope and design the site
When designing the site the user interface is key - if this doesn't work well don't
think that you will sell much or keep people on the site. It is essential to think
?? Branding - is it consistent with offline/printed materials? Is it prominent
through the site?
?? Flexibility - does the design lend itself effectively to all requirements, e.g.
product/service sampling, enquiries, purchasing?
?? Navigation - is the navigation bar really clear? Is it consistent? Is everything
accessible within three mouse clicks?
?? Images - are there colorful, relevant graphics and images? Can these be used in
a way that doesn't negatively impact download times?
?? Animation - is it appropriate? Can it be done in a way that does not drastically
slow download?
?? Interactivity - can you involve the visitor in the site? Can you gather useful
information without deterring the customer? Can you provide reasons to return to
the site?
Step 7. Bring in the back end
If you are using your site to sell online, then just as with a retail outlet, you may
well have goods that need to be stored, processed, packaged, and delivered. If your
goods are 'soft', you'll need online fulfillment facilities.
Have you got the right systems in at the back end? Including secure payment
facilities and customer databases?
Step 8. Integrate the IT systems
Your web site needs to run, or be 'hosted', on a dedicated server to deliver pages to
web browsers. You may choose to invest in this technology in-house and run the
site yourself, or outsource to a specialist supplier.
Do you need to transfer information from your site into other systems? In most
cases the answer is likely to be yes. Although the smallest business may be able to
do this manually, it is best achieved through electronic links. Have you planned
Are links to legacy systems going to cause you any problems?
Step 9. Promote, promote, promote!
A site with no promotion is like a poster in a rural shop window - only the locals
see it. But you don't always have to spend millions. A well-constructed, well
targeted plan will start to drive people to your site.
You'll need a well-rounded plan. It's no longer enough to rely on trying to get listed
on a few search engines - it's a very busy world out there. So, you'll need a well
balanced mix of promotions to get ahead of the competition, including:
?? Public relations - media, sponsorship, events
?? Advertising - press, poster, radio, TV
?? Direct marketing - direct mail, door to door, direct response TV
?? Banner advertising
?? Email marketing
?? Affiliate links to other sites
?? Directories and portals
?? Search engines
Step 10. Monitor and evaluate
Make sure that you have software linked to your site to monitor its performance.
The ever-changing world of the 'Net means you can't be complacent. Make sure
you can identify monthly and weekly trends in:
?? 'hits' on the site and on specific pages, from individual users.
?? time spent on the site (to measure its 'stickiness')
?? click-throughs to ads and links · where traffic is coming from.
Also, do you have 'contact us' and feedback options on the site? What other
measures are important to you and anyone advertising on your site?
To stay ahead on the 'Net you need to constantly evaluate and update your
site and proposition - don't get complacent as there is always someone else out
there who will happily supply your customers.
Other issues
International matters
When planning a site that you want to work internationally, some of the issues to
consider include:
If your operations in different countries wish to promote their own local business
individually, ensure you have design guidelines to ensure consistent branding and
design to promote the business in a coordinated way.
Consider making the site available in local languages as well as the 'international
language' of English.
Be aware of regulations in each country in which you wish to actively sell your
services. Areas to consider include data protection, advertising and promotion.
If you are quoting local prices, be aware that visitors will look for consistency
across your individual country sites.
Domain names
The regulations for setting up a web site vary. In some countries you have to prove
that you have a bona fide business before you can register a domain name. In other
countries, you do not have to offer any proof of identity. Find out the local
situation early.
The cost of web site development varies, depending on the size of the site, its
complexity, and the software used. It is advisable to get several competitive quotes
before commencing the implementation. Prior to launch, you will need to budget
for consultancy, design, copywriting, programming, and domain name registration.
Other costs may include online promotion and payment services. Although many

services appear to be free, you will probably find that these are just taster services.
You need to pay in order to get what you want for your online business.
There are ongoing costs of hosting and managing your site. You must also budget
for continual maintenance and updating of the site. Your target audience will
expect that your content is reviewed and updated frequently.
Bandwidth - the capacity of a telecommunications link. Correctly speaking, it
measures the range of frequencies which can be conveyed on a channel and is
measured in Megahertz or Kilohertz (MHz or KHz). The term is often used
interchangeably with the speed of the link, which is measured in Kilobits per
(Kbits/s) or Megabits per second (Mbits/s).
Banner advertisement - a form of advertising using a strip across the top of a web
page. Usually, the banner is linked to the advertiser's site.
Cache - the part of a computer's memory that temporarily stores web pages that
you have downloaded. Having the pages in the cache means you can read them
again without re-connecting.
Clickthrough - an expression for measuring the success of a banner
advertisement.When a visitor to a web page clicks on a banner, and goes through
to the advertiser's site, it is termed a 'clickthrough'.
Cookie - a piece of computer code that is placed onto your computer when you
visit a website. It helps the site owner track if you return to the site.
Extranet - a privately-owned Internet-type network that is used by a company to
communicate with its suppliers or customers.
Gateway page - a technical device used to direct search engine traffic to a web
GIF - a graphics file format, used for digital images.
Hit - a popular expression for a user visiting a web page. However, the expression
is problematic for recording web user activity. When a user visits a web page, any
file which is opened on that page will be recorded as a 'hit'. This means that if a
page has lots of image files, it will be recorded as several 'hits'.
HTML - hypertext mark-up language. A computer language developed specially
to facilitate the display of graphics and text pages on the Internet. Before HTML,
all you could do was read basic text.
Http: - hypertext transfer protocol. A system used by computers on the Internet to
transfer the web pages.
Internet - a public network of computers, based on the Internet protocol.
Originally developed by the US military in the late 1970s. The most used functions
today are the World Wide Web and email and newsgroups.

Internet Protocol (IP) - an agreed industry standard set of rules for carrying data
over computer networks.
IP address - a unique numeric code which is allocated to every server attached to
the Internet, for the purposes of identifying that server.
ISP - Internet Service Provider. A company that provides you access to the
Intranet - a privately-owned Internet-type network which is used exclusively by
the employees of a company for internal communications.
Java - a programming language developed by Sun Microsystems. It provides web
programmers with more flexibility than HTML, especially to create more
interactive features on the site.
Keyword - a word used by search engines to index web pages.
Metatag- a piece of HTML software code on a web page that contains information
readable only to computers and not viewed by visitors to the page.
Page impression - an expression used to measure activity on a web site. Each time
a visitor clicks on a page, it is recorded as one 'impression'. Unlike 'hits', it
doesn'tmatter if the page is made up of multiple files.
Search engine - a computer program that literally crawls through the World Wide
Web to find new pages. It indexes the pages under keywords so that people can
easily retrieve them.
World Wide Web - a collection of information on the Internet, which is written in
HTML and is easily accessible to the public.

                  6. WHAT IS “PROMOTION”

Promotion is tool with which public will be informed about the availability of a
particular product or service and the uses of such product. Production decides the
increase in demand for a product; promotion will make the prospective buyers to
know about the want, satisfying characteristics of the product, its price and place of
availability. This term includes advertisement, personal selling sales promotion and
other selling tools which are increasing the sales volume.

                     DEFINITION OF PROMOTION

    The nature and role promotions and their function in the marketing of
    packaged goods are defined below. These definitions apply universally in
    the marketing sense irrespective of accounting practice of marketing
    technology within particular companies. They define promotions in the
    broadest possible sense.

FORCE             GOODS

                  Promotion ranks with advertising and field selling effort
                  as one of the major activities that can be utilized in the
                  marketing of packaged goods.
                  Promotion is an extra incentive over and above (1) the
                  product’s inherent qualities, (2) its established price, (3)
                  its advertising and (4) its field selling efforts.
                  INFLUENTIAL GROUPS

                  Promotion, in its broadest sense, provides extra
                  incentives for any group that is an important factor in
                  the marketing of a brand. Although it is most often
                  directed to the consumer or to the trade, it may also be
                  directed to the sales force, or to other influential groups
                  (such as doctors, home economists or appliance
                  manufacturers) … or to all of them at one. Promotion
                  covers a wide field.
                Usually promotion is short-term in nature. On occasion,
                however, it can be a long-term activity (as in the case of
                a continuing in-pack premium operations).
                BASIC ENTRES

                 Although promotion covers a wide field and seems to
                 offer endless variety, almost all promotional activity is a
                 variation on one or more of a few basic types. An
                 understanding of what promotion is and what it does
                 starts with a knowledge of these basic types. A check
                 list of basic promotion types is provided in Appendix 1.

      Promotions are an extremely valuable tool for the marketing of packaged
      goods brands. Like all other tools, promotions can make a valuable
      contribution to marketing when they are properly used. Of course, they are
      capable of misuse as well by unskilled and inexperienced hands. The doubts
      about promotions and their misuse can be guarded against by clear
      understanding of its proper function and mechanics in the context of the full
      range of marketing activities and situations.


                        Promotion acts as a catalyst to accelerate action, primarily
                        on the part of the consumer, the trade or the sales force. It
                        supplements, but is not a substitute for, advertising and
                        selling efforts.

                        Its function is to speed up or trigger the action that: (1)
                        advertising has persuaded the consumer she should take
                        … )2) the salesman has persuaded the retailer he should
                        take … or (3) the sales manager has exhorted the salesman
                        to take. Promotion’s function is to act as a catalyst that
             triggers action on the part of those who are favourably
             predisposed – largely because of previous advertising and
             selling efforts – to act.

             Every product has an established value in the minds of the
             consumer, the trade or the sales force. This is what the
             consumer or the retailer or the salesmen is normally willing
             to expend (in money or effort) for what he gets, or thinks
             be gets, when he buys (or sells) the product.

             Promotion changes this price-value relationship to the point
             where the individual is stimulated to take a desired action.
             It does this in most cases either by lowering the price or by
             increasing the value of the product, or both.

             Where the product or its advertising or its selling efforts
             have failed to establish any worthwhile value, promotion is
             unlikely to be successful because promotion seldom if ever,
             provides basic lasting values by itself.
MARKETING    A product improvement can increase the real or imagined
ACTIVITIES   value of a brand – at least until competition duplicates the

             An attractive, convenient, image-reinforcing package can
             increase a brand’s value to the consumer or trade.

             A price reduction can change the price-value relationship –
             but in a way that can quickly be matched by competition.

             Effective selling efforts (effective distribution, pricing,
             display, etc.) can improve the price-value relationship – not
             only to the trade, but to the consumer as well. Yet the
                number of salesmen is limited end they call infrequently on
                most stores.

                Improved advertising is one of the best ways to increase
                the value of a brand. A better advertising copy story – or
                possibly better media coverage and frequency – can give a
                brand an advantage that competitive brands cannot easily
                duplicate. For advertising persuades by implanting ideas in
                the mind – and what is put into the consumer’s mind is the
                key to her action in the market place. And the consumer’s
                action in the market place is, in turn, the key to the value
                the trade puts on the brand. No other marketing endeavor
                works so effectively o the consumer’s mind

                - and thus indirectly on the retailer’s mind
                - as advertising.

                Promotion – provided it supplements all these other
                marketing activities – can quickly accelerate action by
                providing meaningful, readily visible (but temporary)
                change in the price-value relationship. Without a backleg
                of other value-building marketing support, however,
                promotion is not likely to be effective long term.

            Used properly, promotion can be an effective method of
            temporarily changing the price-value relationship and thus
            accelerating desired action by consumers, the trade, the
            sales force, and other influential groups.

                COMPETITION; OR
                2. A BRAND’S ADVERTISING IS NOT AS

                There is no known formula for determining what
                percentage of a brand’s marketing expenditures should be
                 devoted to promotion. It depends on the situation. But there
                 are some guide lines.

                 Generally, promotion is most needed when a significant
                 number of consumers (or retailers) are not convinced that a
                 brand’s value in relation to competition is high enough to
                 warrant its price.

                 This usually occurs (1) when an established brand is
                 inferior to competitive brands in quality, appearance or
                 results, or 92) when the brand’s advertising copy –
                 completely apart from the media expenditures behind it – is
                 not as effective as competitive copy in persuading the
                 consumer to buy the brand, or (3) when a new brand is in
                 the process of establishing its basic value through its initial
                 advertising and through increasing consumer trial or the
                 product – trial which promotion can accelerate.

                 Obviously there are many degrees of need for promotion,
                 and in actual practice even a healthy brand needs a certain
                 amount of promotion in its marketing mix. But, long term,
                 the more the product’s quality and its advertising
                 persuasiveness fail to meet competition, the greater is the
                 need for promotion to improve the brand’s price-value

              Therefore, (except short term in new-product introductions)
              a high ratio of promotion to advertising generally indicates
              that work needs to be done to improve the brand’s quality
              and/or its advertising copy.
              In a competitive market a brand generally follows a well
              defined life cycle, each stage of which requires different
              promotional treatment.

New Product      A new product can usually profit from substantial
                promotion support – if the product, the advertising,
                distribution and price are right … i.e. equal to competition
                in most respects and superior in some respects.

                Here is where promotion can truly perform its function of
                accelerating trial and purchase of a brand whose value has
                not yet been fully established in the minds of all
                consumers. Although good advertising on a new brand will
                persuade many consumers to try the brand, it is not likely
                to persuade every logical prospect to take immediate
                action. Those that advertising does not quickly move to
                action require an extra incentive, such as a free sample or
                coupon or some other devide that increases the value of the
                brand, or lowers its price, to the point where the prospect
                decides to buy it. If the product is of good quality,
                promotion thus helps to establish its value ore quickly in
                the minds of more people.

                There are indications, incidentally, that many new brands
                (but not all) reach their share-of-market peak within six
                months to a year after the completion of their introduction.
                This leads to the conclusion that a brand of proven product
                and advertising copy superiority would be well advised to
                meet maximum trial during the introductory period by
                spending heavily in the advertising media and on the
                promotional devices that are most effective in reaching the
                brand’s best longterm prospective consumers. Investment
                at the highest practicable level in offective advertising and
                promotion during the introductory stage, therefore – by
                quickly achieving a high franchise level – can establish a
                business that is less vulnerable to competition and that
                returns higher level of profit in the following years.
Growing Brand
                An established, growing brand generally requires minimal
                promotion support, usually of a selective nature. The
                product and its advertising are still equal to or better than
                competition. A high proportion of potential customers have
                tried the brand and many have become more or less regular

                  In such a healthy situation, the job that promotion has to do
                  usually is much narrower and more specialized. It can be
                  sued for sch specific purposes as improving distribution on
                  large sizes, attracting new users from fringe groups or areas
                  where usage levels are below potential, or increasing the
                  consumption among present users. Total promotion
                  expenditures, however, can be cut back to levels that
                  generate optimum profits – so long as the brand continues
Stable Brand      to represent superior value for the price.

                  A mature, stable brand may need increased promotional
                  support as competition begins to match it in product quality
                  and in the persuasiveness of its advertising copy, or as the
                  brand reaches its natural franchise level. When this
                  happens, growth ceases, sales and share level off.

                Although the market appears to be in a state of equilibrium,
                there is seething turmoil under the surface. Consumers are
                switching to competitive brands – but are balanced by
                those switching away from competitors. In this dynamic
                market increased promotional effort can provide the
                improved price-value relationships needed to hold onto
                present customer and to attract new users to replace those
                lost to competition. But here also is the time for efforts to
                be redoubled to develop an improved product, a better
                package, a new and more persuasive advertising story,
                better distribution or a new use or market. Promotion can
                delay the day of reckoning and give time for such work …
                but it cannot prevent the inevitable decline that will occur
Declining Brand without an improved product and better advertising to re-
                establish the basic value of the brand.

                  A declining brand may need much heavier promotion
                  support as it becomes old and out-dated by new or
                  improved competitive brands. Efforts to improve the
                  brand’s quality and its advertising copy to equal
                  competition may have been unsuccessful. Increasing the
                  advertising appropriation may not help – and may, in fact,

merely reduce profits.

Yet the old successful brand has a strong base of loyal
users – or potential users – because of past product quality
and memorable advertising … a substantial reservoir of
good will, an established value in the consumer’s mind.
True, the value may be lower that it used to be before
competitive brands made inroads, but it is there and it still
is substantial.

Under these conditions, promotion can temporarily
maintain brand sales by building on the established good
will. It can increase the value of the brand, or lower its
price, to the point where the reservoir of potential
consumers is persuaded to buy the brand. Unfortunately,
unless improvements are made in the product and the
advertising – and unless the advertising is maintained –
heavy emphasis on promotion at this stage seems to erode
the brand’s basic values, so that ever larger discounts and
heavier promotions are required to maintain sales volume.
Ultimately, advertising may be discontinued and a decision
made to “milk” the brand by relying solely on promotion to
brake the decline.

The decision to “milk” a brand through promotion,
however, must not be taken prematurely. Brands that were
once strong can retain remarkable vitality under the
survace. They may have a more firmly established value
and longer life than is realized. Abandoning efforts to
improve the product and the advertising while switching to
heavy promotion may serve only to erode more quickly the
established values of the brand. This in turn hastens its
eventual demise and the loss of profits which the brand has
generated. The decision to switch almost completely to
promotion is one that should not be taken lightly.

In Summary, it appears that there is no magic formula to
tell the marketing man what promotion of his funds should
be spend on promotion. But there is a general life-cycle

                        that most brands in a competitive market follow. And this
                        life-cycle greatly influences promotion activity, as needs
                        change for improving the price-value relationship … needs
                        that are satisfied in many cases most practically by
            Basic Principles that Are crucial to Successful Promotion Projects
            (Regardless of Promotion Type, Product, Country or Time

            It is to be noted that there are general principles that seem to be
            common to successful packaged-goods promotions. These principles
            relate to individual promotions and describe inherent qualities of the
            promotion; they do not cover techniques of planning or administration
            or execution. (Such points are covered later in the report.)

            It has been observed that an effective promotion adheres, in the
            greatest possible degree, to the following 11 basic principles:

                      ACCOMPLISH BETTER

                      The promotion is directed towards specific objectives that
                      promotion properly can achieve. It is not used to perform
                      functions that are best performed by advertising or a good
                      salesman. It is not offered simply because of whim or habit
                      or desire for a change. It is aimed at specifically-defined
                      goals that promotion realistically can be expected to achieve
                      better than any other marketing endeavour.
                      THE GOAL

                      Every basic type of promotion has certain fundamental
                      strengths and limitations. Some are better fitted to one task
                      than another; some cost more than others. Some attract new
                      users at the expense of immediate sales to present users, or
                      vice versa. Successful promotions employ the type of

    promotion that – on the basis of past record and logical
    analysis – offers the best chance of achieving the desired
    goals under existing conditions.

    The consumer is the key to packaged goods marketing
    success. Strong consumer demand is one of the best
    incentives that can be offered to the trade to stock, display or
    feature a brand. Promotion to the trade or to the sales force
    without ensuring that consumers will take the goods out of
    the store is likely to be inefficient and ineffective. This does
    not mean that trade promotions should be used properly. The
    most successful promotions have consumer appeal built into

    It does not require them to do something that is completely
    foreign to their practice (unless there is strong evidence to
    suggest that predisposition to change these practices already
    exists). Unless conditions are right and unless the incentive
    to action is adequate, consumers will not buy sizes or
    quantities they don’t usually use or need … nor will the
    trade buy merchandise they can’t sell or deals that require
    involved administrative procedures. Successful promotions
    build on existing – or latent – behavior patterns.

    The successful promotion appeals strongly to the self-
    interest of the consumer (or the trade, or other target group).
    It frequently does this on the emotional, as well as the
    rational, level.

    While the rational appeal of a reduced price can be very
    effective, cut prices or conetary rewards are not the only
    incentives that move people to buy. Equally effective – or
    even more effective – is the addition of extra value to a
    brand. Frequently an added-value promotion not only
    provides longer-lasting benefits than reducing the price, but
    also is much more difficult for competition to duplicate.

    The added value may be extrinsic, or tangible (as in the case
    of a premium or reusable container) …. Or it may be
    intrinsic, or intangible – even emotional. Here, especially, is
    where ideas become so important to the success of a
    promotion. For ideas evoke actions which can enhance a
    brand’s prestige and quality, its reputation for service and
    surety of results – its image and its value.

    A great opportunity also exists for adding ideas and
    emotional qualities even to cut price or other so called
    rational promotions – ideas such as creatively tying in with
    news of a product improvement or a new package;
    dramatizing a new advertising claims; supplying spring
    house-cleaning hints or Christmas dinner service
    suggestions. Ideas such as linking an intriguing name or a
    plausible reason with what would otherwise be a prosaic
    price-off pack.

    Successful promotions employ both emotional and rational
    approaches in appealing to the self-interest of the groups the
    brand is trying to move to action.

    Promotions may be successful because no other brands in
    the category are using promotions, or because the promoted
    brand may be the first or only brand to use a particular type
    of promotion or an intriguing variety of promotions. But
    more likely, success is due to creative, imaginative thinking
    in the conception and execution of the promotion – creativity
    in the basic idea or the reason for the promotion, in the name
    given to it, in the prizes or premiums offered, in the little,
    intriguing differences that excite imagination and arouse
    enthusiasm at all levels. Creative thinking is just as
    important in promotion as it is in advertising, field selling
    and product development.

    An effective promotion is arresting and cannot be ignored. It
    is concentrated within a limited time period and is limited in
    quantity. It features a sense of urgency, an incentive to
    action. It is not something that the consumer or the trade or
    the sales force can put off doing until later. Generally, the
    more immediate the reward, the greater the effectiveness of
    the promotion. A successful promotion is an infrequently-
    offered incentive of limited duration and quantity that
    demands action now.

    A promotion that is too weak to accomplish what it sets out
    to do is a waste of money. An effective promotion has
    sufficient impact at every level to achieve its goals. The
    incentive is adequate to trigger the desired action. Deal
    quantities realistically meet the trade’s obvious minimum

    But, on the other hand, an effective promotion does not give
    away more than is necessary. The amount of money spent on
    a promotion, or the size of the incentive that is offered, is not
    necessarily a measure of its effectiveness. A 20-cent coupon
    usually does not get twice as many new triers as a 10-cent
    coupon. Doubling the deal quantity may do nothing more
    than reduce brand profits. A good on-pack premium may
    attract more potentially loyal consumers than a price-off
    pack costing 50% more. Adding a trade display allowance to
    a strong consumer promotion may result in only a few more
                      displays than would have been obtained anyway.

                      A brand with an established value may need a smaller price-
                      off concession than a brand of lesser value or poorer image.
                      A good promotion is strong enough to do the job, but does
                      not waste money.
                      AND EXECUTE

                      The consumer refuses to be confused. If the promotion is
                      complicated, she will ignore it. So will the trade. And so will
                      the sales force. The most successful promotions are simple
                      in concept, clear in presentation, easy to operate. There is
                      little opportunity for things to go wrong.
                      GOOD VALUE AND QUALITY

                      It is straight forward and honest in presenting the terms of
                      the promotion offer and in describing the incentive. Prizes
                      and premiums are not misrepresented in terms of value or
                      quality. It avoids trickery or subterfuge or gimmickry that
                      the consumer or trade is quick to spot and which diminishes
                      believability and brand loyalty.

                  A good promotion can enhance brand image. But many
                  promotions actually conflict with the image that the product,
                  its package, its advertising, its positioning have carefully
                  developed. By appealing to the wrong type of consumers,
                  some promotions not only waste money but actually drive
                  the brand’s best prospects away. Good promotions are
                  consistent with the brand image.

      It has been observed that successful promotions don’t “just happen.” They
      not only incorporate the 11 basic principles previously cutlined, but are also
      the result of careful planning and organization. Successful promotions

require the existence of certain essential conditions and the application of an
organized, disciplined approach and follow-up to all promotion activities.

The conditions and disciplines that are essential to long-term brand and
company success follow:

               CAN BE EFFECTIVE

               A reduced price on an unwanted brand does not make the
               brand more wanted. A significant value for the brand must
               exist in the minds of consumers (or others) before promotion
               can be effective. (In the case of a new product this value
               sometimes is created almost simultaneously with the offer of
               the promotion – usually through media advertising, the
               advertising massage accompanying the sample or coupon, or
               even through broad consumer awareness of the product class.)

               The establishment of brand value relies on many things, of
               which the following two are most important:

Good Product The product must be good. The better the product is in
             relation to competitive brands, the more effective promotion
             will be in attracting and holding new triers … and at the same
             time the less will be the need for continuing and heavy use of
             promotion beyond the introductory period. On the other hand,
             the more the brand fails to meet competitive product quality,
             the greater must be the reliance placed on promotion to
             compensate for diminished value. In order for promotion to be
             truly effective in accelerating long-term growth and profits, a
Persuasive   good product is essential.
             The advertising must be persuasive. Even a good product will
             not be successful unless consumers (and everyone else)
             believe that the brand offers the advantages (i.e. value)
             provided by no other brand. Implanting this idea in the
             consumer’s mind is the function of advertising. If advertising
             does this job well, promotion can effectively provide added

            incentives to accelerate purchase and trial. If advertising
            performs this job poorly, promotion must make much more
            drastic changes in the brand’s price-value relationship. Good
            advertising copy and the effective use of media, therefore, are
            prerequisities for effective promotion.

            Some brands seem at first glance to be exceptions to these
            conditions. Take, for example the older brand with no product
            superiority which has abandoned advertising completely in
            favor of promotion … and which is building its share of
            market in spite of this. Does not this cast doubt on the validity
            of these conclusions? The answer is “No”. For it is clear that
            the brand’s past advertising and product quality have
            effectively created a scund value concept as the base upon
            which promotion builds … at least until such time as the
            brand’s value begins to decrease in the minds of a shrinking
            group of consumers. Promotion cannot be effective unless a
            significant value has been established for the brand.

            Since promotion has already been found to be an important
            element of marketing that supplements advertising and filed
            selling and is interrelated with every from of marketing
            activity on a brand, it seems clear that consideration of
            promotion must be included in every overall marketing plan.
            It cannot be treated as an afterthought, nor can it be ignored. It
            must be included in every brand’s and every company’s
            marketing planning, rimarily in the following two ways:

Marketing   All promotion planning must stem from and be part of the
Strategy    brand’s marketing strategy. The marketing strategy (which
            must be a written, working document) defines the brand’s
            long-range marketing objectives, the brand concept and
            reason for being, and the basic strategy by which it hopes to
            achieve these objectives throughout the years. It is based upon
            an intensive, organized study of the consumer, the market, the
            product and the competition.

            The marketing strategy also defines in general terms the role
                of each marketing element (i.e. advertising, promotion, sales
                effort, etc.) in achieving the brand’s marketing objectives and
                provides broad guidelines as to the relative proportion of
                marketing funds that will be put against each element –
                particularly the relationship of promotion to advertising effect
                – under defined conditions or during various stages of
                marketing development. It is the basic long-range planning
                document for the brand and (while it must be kept up to date)
                the basic strategy should be changed infrequently.
Marketing Plan Promotion activities must be planned and budgeted on an
               annual basis. They must be part of the brand’s annual
               marketing plan. The annual plan is (1) a statement of brand
               objectives, strategies and tactical plans for all marketing
               activities during the coming year, and (2) a financial forecast
               that translates these plans into sales, expenses and profits.
               Failure to include realistic plans and expenditures for
               promotions means that when a decision is suddenly made to
               use promotion, advertising or other marketing activities must
               be cut to provide promotional funds. This in turn makes it
               impossible 91) to forecast profits accurately, and (2) to
               coordinate promotion with other marketing activities.

                An annual brand marketing plan, therefore, must include
                objectives, strategy and plans for promotion as well as for
                advertising, field sales effort, product development, etc. the
                annual plan must also (1) be consistant with the brand’s long-
                range marketing strategy, and (2) provide a reasonable degree
                of flexibility when periodic reviews show that importantly-
                changed conditions dictate changes in plans. Promotion, like
                advertising and field selling efforts, must be planned on an
                annual basis and coordinated with other marketing activities
                on the brand.

                The promotion strategy statement is one of the major
                elements of the brand’s annual marketing plan. It fundamental
               purpose is to establish guidelines and principles that are most
               likely to ensure promotion success for the brand. It does this
               by translating the eleven principles of effectives promotions
               ………. Into basic policy decisions applying more
               specifically to the brand involved. The promotion strategy
               statement should cover five major points (each to the extent
Objectives     applicable)
Program        Broad objectives – What the brand’s promotion program is
               espected to accomplish. (See Promotion Principle No.1)

               Kinds of promotion that will be used (or not used) – The
               relative reliance that will be placed on cutting price vs. adding
               value to the brand in order to achieve these objectives; the
               approsimate proportion of annual promotion effort that will be
               directed against the consumer vs. the trade or other groups.
               The specific types of promotion, therefore, that will generally
Program        be used (or not used) by the brand. (See Promotion Principles
Principles     Nos. 2, 3, 5, and 11).

               Policies relating to the annual program – The frequency,
               duration and number of promotions to be offered; the times of
               year or types of areas in which promotions will be
               concentrated or in which no promotions will be run; the
               relative emphasis (in broad terms), if any, that will be placed
               on promoting specific package sizeds; provision of funds, and
Guidelines For broad policies to be followed, to meet specified types of
Promotion      competitive conditions that may arise. (See Promotion
Development Principles Nos. 2, 4, 7 and 8)

               Guidelines relating to individual promotions – Limitations,
               ranges or standards to assist in establishing pack quantities,
               price discounts, types and values of premiums, coupon values,
               etc.; the degree and nature of advertising coordination or
               support, if any, that is deemed essential for certain type of
Supporting     promotions or conditions; the nature of tie-in promotions that
Reasons        will be used and the standards established for the selection of
               products and brands as tie-in partners; etc. (See Promotion
               Principles Nos. 4 through 11)

                Reasons – Why these strategic decisions a and guidelines are
                believed to be the ost effective and efficient way to achieve
                the brand’s promotion – and overall marketing – objectives,
                based on analysis of results of prior efforts and appraisal of
                current conditions.

                The promotion strategy a statement tell what the brand will do
                in promotion, but not how to do it. It is a long-term statement
                of principle and policy that provides guidance to all
                concerned. It is changed only when the product manager and
                his management agree that new conditions or new knowledge
                dictate a change in basic strategy. Once the strategy has been
                agreed upon, all promotional activities on the brand must
                conform to it.
                THAT PROMOTION

                The promotion strategy statement, as just described,
                establishes general promotion objectives for the brand’s
                promotion program and tells what the brand will do (in terms
                or principle and policy) to achieve these objectives. A tactical
                promotion plan, on the other hand, tells how the brand will
                execute an individual promotion that is part of the progress,
                translating the strategy into specific terms for that promotion,
                and establishing numerical goals against which each
                promotion’s accomplishment can be measured.
Details of Plan
and Time        The tactical promotion plan also gives full details of the plan,
Table           the quantities, the cost, the timing, the specific areas covered,
                the responsibilities of sales, Manufacturing and other groups
                involved. It must include a time table showing the time
                required for each preparatory step and establishing realistic
                target dates. Where possible, the tactical promotion plan
                should also past experience, research or other facts to support
                the reasonableness of the stated objectives, anticipated
Plans To      consumer and trade reaction, and costs.
Results       Finally, the tactical promotion plan should describe the basis
              for evaluating the promotion afterit has run, and should
              indicate what special measurements must be set up in advance
              for this purpose.

              The tactical promotion plan, in summery, serves (1) as a tool
              to sharpen planning, (2) as a device to communicate plans,
              coordinate operations and control the execution and cost of
              the promotion, and (3) as the basis for measuring how
              successful and efficient the promotion, as run, actually was in
Outline And   relation to anticipated goals and costs. A separate tactical plan
Summary       is prepared for each promotion in the brand’s program.
Included in
Annual Plan   A consolidated outline and summery of the individual
              promotions planned for the year’s promotion program is
              included in the brand’s annual marketing plan to show how
              the strategy will be carried out and to provide a finance
              breakdown and summery of the total annual promotion
              budget. This consolidated summary include information on
              the timing, nature, scope and cost of each promotion planned
              for the year (or it set up reserves and indicates preliminary
              plans for these promotions for which final plans have not been
              established.) the detailed tactical plan sheets for each
              promotion, however, usually are not included in the annual
              plan, since the consolidated outline and summary provides the
              essential information for management purposes.

              A written tactical plan for each promotion is an essential
              element in the effective use of promotions.

              In almost no other marketing activity do so many different
              groups of people become involved as in promotion. It requires
              the assistance of manufacturing, warehousing, transportation,
              sales, accounting, purchasing and legal groups – in addition to
    promotion specialization, sales, accounting, purchasing and
    legal groups – in addition to promotion specialists, creative
    people, advertising agencies and brand marketing
    management. Careful and articulate communication of
    objectives and plans is essential. So is the effective scheduling
    and coordination of their activities. And so is the
    establishment of controls to ensure that the promotion works
    in practices as it was planned in theory. A good plan can be
    vitiated, for example, by salesmen who don’t understand its
    purpose, or who authorize payment of trade allowances for
    services not actually performed as specified; or by failure of
    the plant to ship deal packs on specified dates. Delays and
    mistakes cost money – such of it hidden – that may seriously
    reduce brand and company profits.

    Every promotion must, of course inform to legal and ethical
    standards. But the interpretation of law often is unclear …
    some times even personal and capricious.

    Lack of understanding and enthusiasm by legal advisors can
    result in routine legal opinions that deny to a brand a form of
    promotion that a more aggressive competitor may kind a way
    to carry out, within legal restrictions, with only minor change.
    A lawyer who is clearly told the purpose and the concept of a
    promotion can frequently make constructive legal, conceptual
    and operational suggestions of great value.

    The successful execution of sound promotion plans requires
    persistent attention to detail effective communication,
    contagious enthusiasm, disciplined coordination and tight

    It costs as much to run a bad promotion as a good one,
    perhaps even more. The best way to eliminate bad promotion
    is to build each promotion plan on a solid foundation of

              Unfortunately, too little is known about promotion and the
              way it works. There are few experts or authorities with a
              broad knowledge of promotion principles and with objective
              experience in the things that mean better results for less
              money. And the information that is known is usually not
              made available to others facing the same problem … or else it
Pre-Testing   is ignored.

              Pre-Testing – Every important unknown element of a given
              promotion should be pre-tested if the risk of failure is greater
              than the risk of delay or breach of security. In addition, a
              general program of testing alternative promotions, or lower-
              cost variations, or premium items or contest prizes must be
              established to build a backlog of proven devices that can be
Analyzing     utilized when conditions do not permit full-scale pre-testing.

              Analysis of past records – Frequently a study of past records
              on the same or other brands suggests how promotions can be
              improved or prevents a brand from repeating a bad mistake.
              But analysis is impossible unless records are kept and unless
              they are interpreted and conclusions are drawn by a qualified
              person. Faulty memory, superficial study and minister
Evaluating    pretation are dangers that must be eliminated.

              Evaluation of results – Every promotion should be evaluated
              after it has been used to determine whether it did, in fact,
              achieve its objectives within the budgeted cost. If it did, how
              could it have been improved? If it did not, conclusions should
              be drawn – with complete objectivity – as to why it failed to
              perform as planned. The evaluation should be in writing and
              should be made available to others within the company as a
              means of increasing their knowledge.

              Such a program of evaluation depends on two essentials:

              The objectives of the promotion must be clearly defined and
              stated in measurable terms (i.e. “to obtain offshelf displays of

               at least five cases each in 15% of the Class A stores”, or “to
               build retail inventories from a 3-week supply to a 5-week
               supply,” or “to raise the usage level from 7% to 10%).

               Agreement must be reached in advance regarding what will
               be measured and arrangements must be made before the
               promotion runs to obtain the necessary measurement and
               information needed for the evaluation. After the promotion
               has ended it is too late to set up research or to ask for special
Developing     reports or to make personal observations.
Knowledge To   Developing insights about how promotion works through co-
Replace        ordinated methods and special research – Every promotion
Unproved       plan is based on a combination of fact and unproved
Assumptions    assumption. Some of these assumptions are of basic
               importance. If they are incorrect the plan will fail. Hence it is
               vital to confirm or disprove such assumptions as the

               … “New triers obtained by a price-off valuable to a brand as
               those obtained by a coupon (or by a sample).”

               … “New triers usually buy the small size and “trade up” to
               larger sizes if they are satisfied.”

               … “Misredemption of a magazine coupon follows the same
               pattern as for a mail coupon”.

               … “The real value of a sendaway offer lies in the number who
               buy the product but forget to send in the box top.”

               In order to prove or disprove such broad assumptions as these
               – assumptions which are important to every brand and
               company – three steps are necessary:

               All promotion tests and evaluations – on all brands must be
               designed not only to answer the questions of immediate
               interest ot the specific brand but also to permit deeper analysis
               and insights into the fundamental behavior of people and the

               basic ways in which promotion works standard methods of
               testing and evaluating brand promotions may be needed to
               permit brand-to-brand comparisons.

               Special research may have to be undertaken – probably
               underwritten by several brands or an entire company – to
               determine the validity of some of the most important basic
               assumptions about promotion. It is likely that such validation
               will not come from normal brand testing and research, but
               will have to be obtained through planned corporate projects of
               major importance.

               Research techniques must be improved and developed which
               will provide the basic knowledge that each brand needs to
               define the right marketing and promotion objectives, rather
               than objectives that are assumed to be right. Establishing the
               right objective for a brand requires that basic knowledge
               abuut consumer needs, usage habits and attitudes and about
               consumer profiles and brand images be available.

               In summary, something more than ad-ccc testing and
               evaluation of specific promotions is required. A special effort
               must be made to develop deeper knowledge of the
               fundamentals of promotion and marketing – knowledge that
               can be applied to all brands in all countries, knowledge that
Assembling     can replace the many unproved assumptions on which most
And            objectives and most promotion plans are now based.
Circulating All
Promotion       Assembling, analyzing and interesting this knowledge – What
Knowledge       one brand learns can be of great value to another brand. A
                piece of information about one type of promotion may
                provide insights on how another type works. Basic research,
                while it may have little application to a given brand’s
                immediate problems, has vital implications for every brand’s
                long-range marketing program.

               A way must be provided to assemble all available promotion
               information and knowledge, t analyze and interpret it, and to
               develop fundamental insights and uncover basic principles.

               Then a way must be provided to make this knowledge
               available to every product manager, to every promotion
               specialist, to every echelon of management so that it can be
               applied to current marketing operations.

               The mounting cost of promotion and the high risk of failure
               demand that knowledge be developed as rapidly as possible. It
               also demands that this knowledge be assembled and made
               available in valid and actionable from to all involved in


               The planning, execution and evaluation of promotion is a
               highly skilled task that require specialized knowledge and
               professional ability. It is not something to be turned over to
Product        the newest trainee.
Primary        Many groups are involved in promotion planning and
Responsibility operation, including both sales and advertising departments. It
               seems clear, however, that primary responsibility for all
               promotion activity on a brand must lie with the individual
               responsible for formulating the brand marketing mix and for
Professional profit contributions. In most companies this is the product
Assistance     manager.
               But it is also clear that the product managere requires the
               same sort of professional help in promotion that the
               advertising agency (and company staff experts) provide in
               advertising Just as no product manager is expected to be an
               expert in copy, media, advertising production and advertising
               research (although he may well be very capable in some), so
               no product manager should be expected to be an expert in
               promotion theory, promotion research and analysis,
               promotion development, promotion execution and promotion
Advertising    evaluation. The job is too complex, too specialized – it
Agency         requires too much knowledge beyond the product manager’s

Limitations   have the time or the opportunity or the inclination to develop.

              Advertising agencies have at times been suggested as a
              possible source of this professional assistance in promotion.
              Undoubtedly they can be of great help in the development of
              promotion ideas. But their help in preparing and executing
A Staff       detailed plans is likely to be limited. It is doubtful, therefore,
Promotion     that any agency can contribute in the promotional field in the
Group Is      same way that it contributes in advertising.
              This means that there is a real need for a central staff
              promotion group within every company where promotion is
              employed. The form of organisation will very with each
              situation. A large company may need a complete department
              staffed with broadly-experienced managers and with
              specialists in such activities as couponing, contests,
              premiums, trade promotions, promotion research, evaluation,
              etc. in a small company the promotion specialist may well be
              one person who may also have other responsibilities.

              The point is that there must be a central, iniesnient staff group
              – responsible to top management – to supply specialized
              knowledge and reccive annual and ato ….. company-wide and
              basic projects. This staff promotion group can also pending
              specialized services such as preparing display material; or
              setting up managements with mailing beauses; or developing,
              testing and buying premiums; or assisting in pre-tests and
              evaluations. There must be someone within the company to
              whom both the product manager and management can turn for
              professional assistance in promotion as they turn to the
              advertising agency for help in advertising.

              Successful promotion under today’s conditions requires that
              specialized, professional skill and knowledge be brought to
              bear on every phase of promotion planning, execution and

In convenitnece, the most important types of promotions have been typed
under broad headings, even though it may be misleading in the cased to do
so. For example, a trade allowance that is passed …100% to consumers in
the form of a special reduced price might be classified as a consumer
promotion. Likewise, a coupon distributed only to present users of a brand
might not be used as sampling device”.

Inspite of these drawbacks, the following check list of basic promotion types
if furnished with the hope that it will illustrate the promotion is:


A Sampling       1. Sampling (distribution of free special or regular size
Devices          package to consumers)

                 House to house
                 By mail
                 In or on packages of same brand or other brands
                 F…. inserts

                 2.Couponing (distribution of certificates with a stated
                 monetary or merchandize value which the consumer
                 redeems through a retailer towards the purchase of the
                 specified item

                 House to house
                 By mail
                 In or on packages (same brand or different brand)
                 In media advertisements

                 3. Demonstrations ( An illustration or demonstration of how
                 a product is prepared and/or used, frequently involving
                 consumer tasting of food products and usually involving the
                 presence of a home economist or other trained

              In Store
B. Pack       Fairs, exhibits, etc.
              1. Reduced-revenue packs (usually at factory, but also may
              be banded in stores)

              Price off
              ½ price sale
              “Two for…..” sale
              Bonus packs (larger quantity at same price)

              2. Premium packs

              In or on-pack premium free or self-liquidating, or partially
              liquidating ( Premium may be a sample of another brand)
              May also include separate premiums distributed in stores,
C. Other      but not actually attached to package).
Promotions:   1. Refund offers

              (Cash, check or coupon given consumer for proof of
              purchase…usually by mail)

              2. contests or competitions (puzzles, games, estimates, or
              competitions involving skill for prizes or rewards of various

              3. Sweepstakes-type drawings (No skill or proof of purchase

              4. Sendaway (or mail-in) premiums Free or liquidating
              (usually with proof of purchase) Label saving plans

              5. Display promotions, Receipe or service or “idea” display
              promotions (alone or tied in with other items)

              6. Other miscellaneous consumer promotions, such as
              trading stamps, out-of-pack premiums, etc.

A. Trade
             Payments to the trade usually for a specific purpose and for
             a specified time. Payment may be in the form of cash or
             credit. There are several types, including:

             Count and recount allowance

             Customer stocks counted at beginning and end of period
             (plus purchases) to give net movement out of stock;
             allowance paid on net movement.

             Advertising and/or display or merchandising
             Allowance paid for performance of specified activity, such
             as featuring in dealer’s advertising, display, reduced price,
             or offer of extra trading stamps, etc.

             Introductory allowance

             Payment during introductory period to obtain distribution

             Buying allowance

             Payment made without stipulation as to service required in
B. Trade     return.
Promotion    Reduced Revenue offers

             A reduction in the regular price to the trade without
             requiring that such reductions be passed along to the

                 consumer or that my specified action be performed. The
                 distinction between this promotion and a buying allowance
                 is small. Generally, however, the reduced revenue
                 promotion takes the following forms.

                 One package free with purchase of 11 (assuming cases are
                 packed 12’ s)
                 Baker’s dozen deal (13 for the price of 12) One case of one
C. Other Trade   size free with purchase of specified number cases of another
Promotions.      size.

                 1. Trade Premiums (A gift to the organization or to
                 individuals, frequently upon the purchse of specified
                 quantities or selections. May include permanent display
                 racks, or dual-use display pieces, such as a plastic boat).
                 2. Redemption of retailer certificates packed in each case of
                 3. Trade contests, competitions or Prizes
                 4. Trade Sampling

                 Distribution of free product samples to dealers and
                 distributors (usually for personal use).

                 5. Other miscellaneous trade incentives

            (Pushmoney for retailer’s salesmen; billing; etc.) Some
            forms – such as delayed billing dates or opportunities to buy
            in advance of an announced price increase – are frequently
SALES FORCE classified as other than promotions, but actually might be
INCENTIVE   considered as promotional devices.


                  1. Sales contests
                  Prizes for best or target performances by salesmen

                  2. Salesmen’s premiums

                  Merchandize awards for achievement of established sales or
                  pint-value goals, frequently from premium catalogues.

INCENTIVES        3. Salesmen’s cash bonus plans
FOR OTHER         These are usually classified as selling expense or
SPECIALIZED       compensation, but ma be considered a special form or
GROUPS            promotion.
A. Professional

                  Offering of samples, premiums, service material, special
                  literature, and other incentives to professional people in
                  order to inform that of product advantages in their fields and
                  so encourage them to use and/or recommend the brand in
                  their contacts with consumers and/or other influential
                  groups. Such professional include:

B. Appliance      Dentists
Manuracturer      Nurses
Promotions        Teachers
                  Home Economists
                  Hair Dressers

                  Incentive programs designed to encourage equipment and
                  appliance manufacturers or dealers to recommend the brand
                  in their instruction books and service literature and/or
                  enclose samples, coupons or brand service materials with

their equipment and appliances. (Examples: washing
machine manufacturers, dishwasher manufacturers, electric
mixer or frying pan manufacturers, retail appliances stores,
etc.) Promotions may include:

Free service material
Display material
Merchandising allowances
Advertising cooperation and support
Technical assistance

                          7. ADVERTISING

Advertising is a form of communication that typically attempts to persuade
potential customers to purchase or to consume more of a particular brand of
product or service. “While now central to the contemporary global economy and
the reproduction of global production networks, it is only quite recently that
advertising has been more than a marginal influence on patterns of sales and
production. The formation of modern advertising was intimately bound up with the
emergence of new forms of monopoly capitalism around the end of the 19th and
beginning of the 20th century as one element in corporate strategies to create,
organize and where possible control markets, especially for mass produced
consumer goods. Mass production necessitated mass consumption, and this in turn
required a certain homogenization of consumer tastes for final products. At its
limit, this involved seeking to create ‘world cultural convergence’, to homogenize
consumer tastes and engineer a ‘convergence of lifestyle, culture and behaviors
among consumer segments across the world’.”

Many advertisements are designed to generate increased consumption of those
products and services through the creation and reinvention of the "brand image" .
For these purposes, advertisements sometimes embed their persuasive message
with factual information. Every major medium is used to deliver these messages,
including television, radio, cinema, magazines, newspapers, video games, the
Internet, carrier bags and billboards. Advertising is often placed by an advertising
agency on behalf of a company or other organization.[citation needed]

Organizations that frequently spend large sums of money on advertising that sells
what is not, strictly speaking, a product or service include political parties, interest
groups, religious organizations, and military recruiters. Non-profit organizations
are not typical advertising clients, and may rely on free modes of persuasion, such
as public service announcements.[citation needed]

Money spent on advertising has increased dramatically in recent years. In 2007,
spending on advertising has been estimated at over $150 billion in the United
States and $385 billion worldwide, and the latter to exceed $450 billion by 2010.

While advertising can be seen as necessary for economic growth, it is not without
social costs. Unsolicited Commercial Email and other forms of spam have become
so prevalent as to have become a major nuisance to users of these services, as well
as being a financial burden on internet service providers. Advertising is
increasingly invading public spaces, such as schools, which some critics argue is a
form of child exploitation.

   A. Types of advertising:-

                    1. Media

Commercial advertising media can include wall paintings, billboards, street
furniture components, printed flyers and rack cards, radio, cinema and television
adverts, web banners, mobile telephone screens, shopping carts, web popups,
skywriting, bus stop benches, human billboards, magazines, newspapers, town
criers, sides of buses, banners attached to or sides of airplanes ("logojets"), in-
flight advertisements on seatback tray tables or overhead storage bins, taxicab
doors, roof mounts and passenger screens, musical stage shows, subway platforms
and trains, elastic bands on disposable diapers, stickers on apples in supermarkets,
shopping cart handles (grabertising), the opening section of streaming audio and
video, posters, and the backs of event tickets and supermarket receipts. Any place
an "identified" sponsor pays to deliver their message through a medium is

One way to measure advertising effectiveness is known as Ad Tracking. This
advertising research methodology measures shifts in target market perceptions
about the brand and product or service. These shifts in perception are plotted
against the consumers’ levels of exposure to the company’s advertisements and
promotions. The purpose of Ad Tracking is generally to provide a measure of the
combined effect of the media weight or spending level, the effectiveness of the
media buy or targeting, and the quality of the advertising executions or creative.

                    2. Covert advertising

Covert advertising is when a product or brand is embedded in entertainment and
media. For example, in a film, the main character can use an item or other of a
definite brand, as in the movie Minority Report, where Tom Cruise's character
John Anderton owns a phone with the Nokia logo clearly written in the top corner,
or his watch engraved with the Bulgari logo. Another example of advertising in
film is in I, Robot, where main character played by Will Smith mentions his
Converse shoes several times, calling them "classics," because the film is set far in
the future. I, Robot and Spaceballs also showcase futuristic cars with the Audi and
Mercedes-Benz logos clearly displayed on the front of the vehicles. Cadillac chose
to advertise in the movie The Matrix Reloaded, which as a result contained many
scenes in which Cadillac cars were used. Similarly, product placement for Omega
Watches, Ford, VAIO, BMW and Aston Martin cars are featured in recent James
Bond films, most notably Casino Royale. Bladerunner includes some of the most
obvious product placement; the whole film stops to show a coca cola billboard.

                   3. Television commercials

The TV commercial is generally considered the most effective mass-market
advertising format, as is reflected by the high prices TV networks charge for
commercial airtime during popular TV events. The annual Super Bowl football
game in the United States is known as the most prominent advertising event on
television. The average cost of a single thirty-second TV spot during this game has
reached $3 million (as of 2009).
The majority of television commercials feature a song or jingle that listeners soon
relate to the product.
Virtual advertisements may be inserted into regular television programming
through computer graphics. It is typically inserted into otherwise blank backdrops
or used to replace local billboards that are not relevant to the remote broadcast
audience. More controversially, virtual billboards may be inserted into the
background where none exist in real-life. Virtual product placement is also

There are two types of infomercials, described as long form and short form. Long
form infomercials have a time length of 30 minutes. Short form infomercials are 30
seconds to 2 minutes long. Infomercials are also known as direct response
television (DRTV) commercials or direct response marketing.
The main objective in an infomercial is to create an impulse purchase, so that the
consumer sees the presentation and then immediately buys the product through the
advertised toll-free telephone number or website. Infomercials describe, display,
and often demonstrate products and their features, and commonly have
testimonials from consumers and industry professionals.
Some well known companies in the infomercial business are Script to Screen,
Hawthorne Direct, International Shopping Network and Guthy-Renker.

This type of advertising focuses upon using celebrity power, fame, money,
popularity to gain recognition for their products and promote specific stores or
products. Advertisers often advertise their products, for example, when celebrities
share their favourite products or wear clothes by specific brands or designers.
Celebrities are often involved in advertising campaigns such as television or print
adverts to advertise specific or general products.

Media and advertising approaches
Increasingly, other media are overtaking television because of a shift towards
consumer's usage of the Internet as well as devices such as TiVo.
Advertising on the World Wide Web is a recent phenomenon. Prices of Web-based
advertising space are dependent on the "relevance" of the surrounding web content
and the traffic that the website receives.
E-mail advertising is another recent phenomenon. Unsolicited bulk E-mail
advertising is known as "spam".
Some companies have proposed placing messages or corporate logos on the side of
booster rockets and the International Space Station. Controversy exists on the
effectiveness of subliminal advertising (see mind control), and the pervasiveness of
mass messages (see propaganda).
Unpaid advertising (also called publicity advertising), can provide good exposure
at minimal cost. Personal recommendations ("bring a friend", "sell it"), spreading
buzz, or achieving the feat of equating a brand with a common noun (in the United
States, "Xerox" = "photocopier", "Kleenex" = tissue, "Vaseline" = petroleum jelly,
"Hoover" = vacuum cleaner,nintendo(older people)=video games, and "Band-Aid"
= adhesive bandage) — these can be seen as the pinnacle of any advertising
campaign. However, some companies oppose the use of their brand name to label
an object. Equating a brand with a common noun also risks turning that brand into
a genericized trademark - turning it into a generic term which means that its legal
protection as a trademark is lost.
As the mobile phone became a new mass media in 1998 when the first paid
downloadable content appeared on mobile phones in Finland, it was only a matter
of time until mobile advertising followed, also first launched in Finland in 2000.
By 2007 the value of mobile advertising had reached $2.2 billion and providers
such as Admob delivered billions of mobile ads.
More advanced mobile ads include banner ads, coupons, Multimedia Messaging
Service picture and video messages, advergames and various engagement
marketing campaigns. A particular feature driving mobile ads is the 2D Barcode,
which replaces the need to do any typing of web addresses, and uses the camera
feature of modern phones to gain immediate access to web content. 83 percent of
Japanese mobile phone users already are active users of 2D barcodes.
A new form of advertising that is growing rapidly is social network advertising. It
is online advertising with a focus on social networking sites. This is a relatively
immature market, but it has shown a lot of promise as advertisers are able to take
advantage of the demographic information the user has provided to the social
networking site. Friendertising is a more precise advertising term in which people
are able to direct advertisements toward others directly using social network
From time to time, The CW Television Network airs short programming breaks
called "Content Wraps," to advertise one company's product during an entire
commercial break. The CW pioneered "content wraps" and some products featured
were Herbal Essences, Crest, Guitar Hero II, CoverGirl, and recently Toyota.
Recently, was created a new promotion concept, called "ARvertising" which is
supported on Augmented Reality technology.

Criticism of advertising
Criticism of advertising is closely linked with criticism of media and often
interchangeable. They can refer to its audio-visual aspects (e. g. cluttering of public
spaces and airwaves), environmental aspects (e. g. pollution, oversize packaging,
increasing consumption) , political aspects (e. g. media dependency, free speech,
censorship), financial aspects (costs), ethical/moral/social aspects (e. g. sub-
conscious influencing, invasion of privacy, increasing consumption and waste,
target groups, certain products, honesty) and, of course, a mix thereof. Some
aspects can be subdivided further and some can cover more than one category.

As advertising has become increasingly ubiquitous in modern Western societies, it
is also increasingly being criticized. A person can hardly move in the public sphere
or use a medium without being subject to advertising. Advertising occupies public
space and more and more invades the private sphere of people, many of which
consider it a nuisance. “It is becoming harder to escape from advertising and the
media. … Public space is increasingly turning into a gigantic billboard for products
of all kind. The aesthetical and political consequences cannot yet be foreseen.”
Hanno Rauterberg in the German newspaper ‘Die Zeit’ calls advertising a new
kind of dictatorship that cannot be escaped.
“’’’Ad Creep’’’: …There are ads in schools, airport lounges, doctors offices,
movie theaters, hospitals, gas stations, elevators, convenience stores, on the
Internet, on fruit, on ATM's, on garbage cans and countless other places. There are
ads on beach sand and restroom walls.” “One of the ironies of advertising in our
times is that as commercialism increases, it makes it that much more difficult for
any particular advertiser to succeed, hence pushing the advertiser to even greater
efforts.” Within a decade advertising in radios climbed to nearly 18 or 19 minutes
per hour; on prime-time television the standard until 1982 was no more than 9.5
minutes of advertising per hour, today it’s between 14 and 17 minutes. With the
introduction of the shorter 15-second-spot the total amount of ads increased even
more dramatically. Ads are not only placed in breaks but e. g. also into baseball
telecasts during the game itself. They flood the internet, a market growing in leaps
and bounds.

Other growing markets are ‘’product placements’’ in entertainment programming
and in movies where it has become standard practice and ‘’virtual advertising’’
where products get placed retroactively into rerun shows. Product billboards are
virtually inserted into Major League Baseball broadcasts and in the same manner,
virtual street banners or logos are projected on an entry canopy or sidewalks, for
example during the arrival of celebrities at the 2001 Grammy Awards. Advertising
precedes the showing of films at cinemas including lavish ‘film shorts’ produced
by companies such as Microsoft or DaimlerChrysler. “The largest advertising
agencies have begun working aggressively to co-produce programming in
conjunction with the largest media firms” creating Infomercials resembling
entertainment programming.
Opponents equate the growing amount of advertising with a “tidal wave” and
restrictions with “damming” the flood. Kalle Lasn, one of the most outspoken
critics of advertising on the international stage, considers advertising “the most
prevalent and toxic of the mental pollutants. From the moment your radio alarm
sounds in the morning to the wee hours of late-night TV microjolts of commercial
pollution flood into your brain at the rate of around 3,000 marketing messages per
day. Every day an estimated twelve billion display ads, 3 million radio
commercials and more than 200,000 television commercials are dumped into North
America’s collective unconscious”. In the course of his life the average American
watches three years of advertising on television.

More recent developments are video games incorporating products into their
content, special commercial patient channels in hospitals and public figures
sporting temporary tattoos. A method unrecognisable as advertising is so-called
‘’guerrilla marketing’’ which is spreading ‘buzz’ about a new product in target
audiences. Cash-strapped U.S. cities do not shrink back from offering police cars
for advertising. A trend, especially in Germany, is companies buying the names of
sports stadiums. The Hamburg soccer Volkspark stadium first became the AOL
Arena and then the HSH Nordbank Arena. The Stuttgart Neckarstadion became the
Mercedes-Benz Arena, the Dortmund Westfalenstadion now is the Signal Iduna
Park. The former SkyDome in Toronto was renamed Rogers Centre. Other recent
developments are, for example, that whole subway stations in Berlin are
redesigned into product halls and exclusively leased to a company. Düsseldorf
even has ‘multi-sensorial’ adventure transit stops equipped with loudspeakers and
systems that spread the smell of a detergent. Swatch used beamers to project
messages on the Berlin TV-tower and Victory column, which was fined because it
was done without a permit. The illegality was part of the scheme and added

It’s standard business management knowledge that advertising is a pillar, if not
“the” pillar of the growth-orientated free capitalist economy. “Advertising is part
of the bone marrow of corporate capitalism.” “Contemporary capitalism could not
function and global production networks could not exist as they do without

For communication scientist and media economist Manfred Knoche at the
University of Salzburg, Austria, advertising isn’t just simply a ‘necessary evil’ but
a ‘necessary elixir of life’ for the media business, the economy and capitalism as a
whole. Advertising and mass media economic interests create ideology. Knoche
describes advertising for products and brands as ‘the producer’s weapons in the
competition for customers’ and trade advertising, e. g. by the automotive industry,
as a means to collectively represent their interests against other groups, such as the
train companies. In his view editorial articles and programmes in the media,
promoting consumption in general, provide a ‘cost free’ service to producers and
sponsoring for a ‘much used means of payment’ in advertising. Christopher Lasch
argues that advertising leads to an overall increase in consumption in society;
"Advertising serves not so much to advertise products as to promote consumption
as a way of life.


Advertising is equated with constitutionally guaranteed freedom of opinion and
speech. Therefore criticizing advertising or any attempt to restrict or ban
advertising is almost always considered to be an attack on fundamental rights (First
Amendment in the USA) and meets the combined and concentrated resistance of
the business and especially the advertising community. “Currently or in the near
future, any number of cases are and will be working their way through the court
system that would seek to prohibit any government regulation of ... commercial
speech (e. g. advertising or food labelling) on the grounds that such regulation
would violate citizens’ and corporations’ First Amendment rights to free speech or
free press.” An example for this debate is advertising for tobacco or alcohol but
also advertising by mail or fliers (clogged mail boxes), advertising on the phone, in
the internet and advertising for children. Various legal restrictions concerning
spamming, advertising on mobile phones, addressing children, tobacco, alcohol
have been introduced by the US, the EU and various other countries. Not only the
business community resists restrictions of advertising. Advertising as a means of
free expression has firmly established itself in western society. Surveys e. g. reveal
that advertising is generally seen as a welcome information and seldom as a
nuisance. At worst it is seen as a necessary evil to be endured and most often its
entertaining value is pointed out. Hardly any by-law restricting advertising fails to
appease possible critics by pointing out the positive effects and the necessity of
advertising in its foreword. McChesney argues, that the government deserves
constant vigilance when it comes to such regulations, but that it is certainly not
“the only antidemocratic force in our society. ...corporations and the wealthy enjoy
a power every bit as immense as that enjoyed by the lords and royalty of feudal
times” and “markets are not value-free or neutral; they not only tend to work to the
advantage of those with the most money, but they also by their very nature
emphasize profit over all else….Hence, today the debate is over whether
advertising or food labelling, or campaign contributions are speech...if the rights to
be protected by the First Amendment can only be effectively employed by a
fraction of the citizenry, and their exercise of these rights gives them undue
political power and undermines the ability of the balance of the citizenry to
exercise the same rights and/or constitutional rights, then it is not necessarily
legitimately protected by the First Amendment.” In addition, “those with the
capacity to engage in free press are in a position to determine who can speak to the
great mass of citizens and who cannot”. [33] Critics in turn argue, that advertising
invades privacy which is a constitutional right. For, on the one hand, advertising
physically invades privacy, on the other, it increasingly uses relevant, information-
based communication with private data assembled without the knowledge or
consent of consumers or target groups.

For Georg Franck at Vienna University of Technology advertising is part of what
he calls “mental capitalism”, taking up a term (mental) which has been used by
groups concerned with the mental environment, such as Adbusters. Franck blends
the “Economy of Attention” with Christopher Lasch’s culture of narcissm into the
mental capitalism : In his essay „Advertising at the Edge of the Apocalypse“, Sut
Jhally writes: “20. century advertising is the most powerful and sustained system
of propaganda in human history and its cumulative cultural effects, unless quickly
checked, will be responsible for destroying the world as we know it.

The price of attention and hidden costs
Advertising has developed into a billion-dollar business on which many depend. In
2006 391 billion US dollars were spent worldwide for advertising. In Germany, for
example, the advertising industry contributes 1.5% of the gross national income;
the figures for other developed countries are similar. Thus, advertising and growth
are directly and causally linked. As far as a growth based economy can be blamed
for the harmful human lifestyle (affluent society) advertising has to be considered
in this aspect concerning its negative impact, because its main purpose is to raise
consumption. “The industry is accused of being one of the engines powering a
convoluted economic mass production system which promotes consumption.”

Attention and attentiveness have become a new commodity for which a market
developed. “The amount of attention that is absorbed by the media and
redistributed in the competition for quotas and reach is not identical with the
amount of attention, that is available in society. The total amount circulating in
society is made up of the attention exchanged among the people themselves and
the attention given to media information. Only the latter is homogenised by
quantitative measuring and only the latter takes on the character of an anonymous
currency.” According to Franck, any surface of presentation that can guarantee a
certain degree of attentiveness works as magnet for attention, e. g. media which are
actually meant for information and entertainment, culture and the arts, public space
etc. It is this attraction which is sold to the advertising business. The German
Advertising Association stated that in 2007 30.78 billion Euros were spent on
advertising in Germany , 26% in newspapers, 21% on television, 15% by mail and
15% in magazines. In 2002 there were 360.000 people employed in the advertising
business. The internet revenues for advertising doubled to almost 1 billion Euros
from 2006 to 2007, giving it the highest growth rates.

Spiegel-Online reported that in the USA in 2008 for the first time more money was
spent for advertising on internet (105.3 billion US dollars) than on television (98.5
billion US dollars). The largest amount in 2008 was still spent in the print media
(147 billion US dollars). For that same year, Welt-Online reported that the US
pharmaceutical industry spent almost double the amount on advertising (57.7
billion dollars) than it did on research (31.5 billion dollars). But Marc-André
Gagnon und Joel Lexchin of York University, Toronto, estimate that the actual
expenses for advertising are higher yet, because not all entries are recorded by the
research institutions. Not included are indirect advertising campaigns such as sales,
rebates and price reductions. Few consumers are aware of the fact that they are the
ones paying for every cent spent for public relations, advertisements, rebates,
packaging etc. since they ordinarily get included in the price calculation.
Influencing and conditioning
The most important element of advertising is not information but suggestion more
or less making use of associations, emotions (appeal to emotion) and drives
dormant in the sub-conscience of people, such as sex drive, herd instinct, of
desires, such as happiness, health, fitness, appearance, self-esteem, reputation,
belonging, social status, identity, adventure, distraction, reward, of fears (appeal to
fear), such as illness, weaknesses, loneliness, need, uncertainty, security or of
prejudices, learned opinions and comforts. “All human needs, relationships, and
fears – the deepest recesses of the human psyche – become mere means for the
expansion of the commodity universe under the force of modern marketing. With
the rise to prominence of modern marketing, commercialism – the translation of
human relations into commodity relations – although a phenomenon intrinsic to
capitalism, has expanded exponentially.”’Cause-related marketing’ in which
advertisers link their product to some worthy social cause has boomed over the
past decade.

Advertising exploits the model role of celebrities or popular figures and makes
deliberate use of humour as well as of associations with colour, tunes, certain
names and terms. Altogether, these are factors of how one perceives himself and
one’s self-worth. In his description of ‘mental capitalism’ Franck says, “the
promise of consumption making someone irresistible is the ideal way of objects
and symbols into a person’s subjective experience. Evidently, in a society in which
revenue of attention moves to the fore, consumption is drawn by one’s self-esteem.
As a result, consumption becomes ‘work’ on a person’s attraction. From the
subjective point of view, this ‘work’ opens fields of unexpected dimensions for
advertising. Advertising takes on the role of a life councillor in matters of
attraction. (…) The cult around one’s own attraction is what Christopher Lasch
described as ‘Culture of Narcissism’.”

For advertising critics another serious problem is that “the long standing notion of
separation between advertising and editorial/creative sides of media is rapidly
crumbling” and advertising is increasingly hard to tell apart from news,
information or entertainment. The boundaries between advertising and
programming are becoming blurred. According to the media firms all this
commercial involvement has no influence over actual media content, but, as
McChesney puts it, “this claim fails to pass even the most basic giggle test, it is so

Advertising draws “heavily on psychological theories about how to create subjects,
enabling advertising and marketing to take on a ‘more clearly psychological tinge’
(Miller and Rose, 1997, cited in Thrift, 1999, p. 67). Increasingly, the emphasis in
advertising has switched from providing ‘factual’ information to the symbolic
connotations of commodities, since the crucial cultural premise of advertising is
that the material object being sold is never in itself enough. Even those
commodities providing for the most mundane necessities of daily life must be
imbued with symbolic qualities and culturally endowed meanings via the ‘magic
system (Williams, 1980) of advertising. In this way and by altering the context in
which advertisements appear, things ‘can be made to mean "just about anything"’
(McFall, 2002, p. 162) and the ‘same’ things can be endowed with different
intended meanings for different individuals and groups of people, thereby offering
mass produced visions of individualism.”

Before advertising is done, market research institutions need to know and describe
the target group in order to exactly plan and implement the advertising campaign
and to achieve the best possible results. A whole array of sciences directly deal
with advertising and marketing or is used to improve its effects. Focus groups,
psychologists and cultural anthropologists are ‘’’de rigueur’’’ in marketing
research”. Vast amounts of data on persons and their shopping habits are collected,
accumulated, aggregated and analysed with the aid of credit cards, bonus cards,
raffles and, last but not least, internet surveying. With increasing accuracy this
supplies a picture of behaviour, wishes and weaknesses of certain sections of a
population with which advertisement can be employed more selectively and
effectively. The efficiency of advertising is improved through advertising research.
Universities, of course supported by business and in co-operation with other
disciplines (s. above), mainly Psychiatry, Anthropology, Neurology and
behavioural sciences, are constantly in search for ever more refined, sophisticated,
subtle and crafty methods to make advertising more effective. “Neuromarketing is
a controversial new field of marketing which uses medical technologies such as
functional Magnetic Resonance Imaging (fMRI) -- not to heal, but to sell products.
Advertising and marketing firms have long used the insights and research methods
of psychology in order to sell products, of course. But today these practices are
reaching epidemic levels, and with a complicity on the part of the psychological
profession that exceeds that of the past. The result is an enormous advertising and
marketing onslaught that comprises, arguably, the largest single psychological
project ever undertaken. Yet, this great undertaking remains largely ignored by the
American Psychological Association.” Robert McChesney calls it "the greatest
concerted attempt at psychological manipulation in all of human history." [51]

Dependency of the media and corporate censorship

Almost all mass media are advertising media and many of them are exclusively
advertising media and, with the exception of public service broadcasting are
privately owned. Their income is predominantly generated through advertising; in
the case of newspapers and magazines from 50 to 80%. Public service broadcasting
in some countries can also heavily depend on advertising as a source of income (up
to 40%). In the view of critics no media that spreads advertisements can be
independent and the higher the proportion of advertising, the higher the
dependency. This dependency has “distinct implications for the nature of media
content…. In the business press, the media are often referred to in exactly the way
they present themselves in their candid moments: as a branch of the advertising

In addition, the private media are increasingly subject to mergers and concentration
with property situations often becoming entangled and opaque. This development,
which Henry A. Giroux calls an “ongoing threat to democratic culture”, by itself
should suffice to sound all alarms in a democracy. Five or six advertising agencies
dominate this 400 billion U.S. dollar global industry.

“Journalists have long faced pressure to shape stories to suit advertisers and
owners …. the vast majority of TV station executives found their news
departments ‘cooperative’ in shaping the news to assist in ‘non-traditional revenue
development.” Negative and undesired reporting can be prevented or influenced
when advertisers threaten to cancel orders or simply when there is a danger of such
a cancellation. Media dependency and such a threat becomes very real when there
is only one dominant or very few large advertisers. The influence of advertisers is
not only in regard to news or information on their own products or services but
expands to articles or shows not directly linked to them. In order to secure their
advertising revenues the media has to create the best possible ‘advertising
environment’. Another problem considered censorship by critics is the refusal of
media to accept advertisements that are not in their interest. A striking example of
this is the refusal of TV stations to broadcast ads by Adbusters. Groups try to place
advertisements and are refused by networks.

It is principally the viewing rates which decide upon the programme in the private
radio and television business. “Their business is to absorb as much attention as
possible. The viewing rate measures the attention the media trades for the
information offered. The service of this attraction is sold to the advertising

business” and the viewing rates determine the price that can be demanded for

“Advertising companies determining the contents of shows has been part of daily
life in the USA since 1933. Procter & Gamble (P&G) …. offered a radio station a
history-making trade (today know as “bartering”): the company would produce an
own show for “free” and save the radio station the high expenses for producing
contents. Therefore the company would want its commercials spread and, of
course, its products placed in the show. Thus, the series ‘Ma Perkins’ was created,
which P&G skilfully used to promote Oxydol, the leading detergent brand in those
years and the Soap opera was born …”

While critics basically worry about the subtle influence of the economy on the
media, there are also examples of blunt exertion of influence. The US company
Chrysler, before it merged with Daimler Benz had its agency, PentaCom, send out
a letter to numerous magazines, demanding them to send, an overview of all the
topics before the next issue is published to “avoid potential conflict”. Chrysler
most of all wanted to know, if there would be articles with “sexual, political or
social” content or which could be seen as “provocative or offensive”. PentaCom
executive David Martin said: “Our reasoning is, that anyone looking at a 22.000 $
product would want it surrounded by positive things. There is nothing positive
about an article on child pornography.” In another example, the „USA Network
held top-level ‚off-the-record’ meetings with advertisers in 2000 to let them tell the
network what type of programming content they wanted in order for USA to get
their advertising.” Television shows are created to accommodate the needs for
advertising, e. g. splitting them up in suitable sections. Their dramaturgy is
typically designed to end in suspense or leave an unanswered question in order to
keep the viewer attached.

The movie system, at one time outside the direct influence of the broader
marketing system, is now fully integrated into it through the strategies of licensing,
tie-ins and product placements. The prime function of many Hollywood films
today is to aid in the selling of the immense collection of commodities. The press
called the 2002 Bond film ‘Die Another Day’ featuring 24 major promotional
partners an ‘ad-venture’ and noted that James Bond “now has been ‘licensed to
sell’” As it has become standard practise to place products in motion pictures, it
“has self-evident implications for what types of films will attract product
placements and what types of films will therefore be more likely to get made”.

The commercialisation of culture and sports
Performances, exhibitions, shows, concerts, conventions and most other events can
hardly take place without sponsoring. The increasing lack of public funding or
support makes the arts and cultural events dependant on private business. Thus,
arts and culture are put into the service of sales promotion. Wherever sponsors
finance publicly born arts and culture they buy the service of attraction. Artists are
graded and paid according to their art’s value for commercial purposes.
Corporations promote renown artists, therefore getting exclusive rights in global
advertising campaigns. Broadway shows, like ‘La Bohème’ featured commercial
props in its set.

Advertising itself is extensively considered to be a contribution to culture.
Advertising is integrated into fashion. On many pieces of clothing the company
logo is the only design or is an important part of it. There is only little room left
outside the consumption economy, in which culture and art can develop
independently and where alternative values can be expressed. A last important
sphere, the universities, is under strong pressure to open up for business and its
interests. inflatable billboard in front of a sports stadium

Competitive sports have become unthinkable without sponsoring and there is a
mutual dependency. High income with advertising is only possible with a
comparable number of spectators or viewers. On the other hand, the poor
performance of a team or a sportsman results in less advertising revenues. Jürgen
Hüther and Hans-Jörg Stiehler talk about a ‘Sports/Media Complex which is a
complicated mix of media, agencies, managers, sports promoters, advertising etc.
with partially common and partially diverging interests but in any case with
common commercial interests. The media presumably is at centre stage because it
can supply the other parties involved with a rare commodity, namely (potential)
public attention. In sports “the media are able to generate enormous sales in both
circulation and advertising.”

“Sports sponsorship is acknowledged by the tobacco industry to be valuable
advertising. A Tobacco Industry journal in 1994 described the Formula One car as
‘The most powerful advertising space in the world’. …. In a cohort study carried
out in 22 secondary schools in England in 1994 and 1995 boys whose favourite
television sport was motor racing had a 12.8% risk of becoming regular smokers
compared to 7.0% of boys who did not follow motor racing.”

Not the sale of tickets but transmission rights, sponsoring and merchandising in the
meantime make up the largest part of sports association’s and sports club’s
revenues with the IOC (International Olympic Committee) taking the lead. The
influence of the media brought many changes in sports including the admittance of
new ‘trend sports’ into the Olympic Games, the alteration of competition distances,
changes of rules, animation of spectators, changes of sports facilities, the cult of
sports heroes who quickly establish themselves in the advertising and entertaining
business because of their media value and last but not least, the naming and
renaming of sport stadiums after big companies. “In sports adjustment into the
logic of the media can contribute to the erosion of values such as equal chances or
fairness, to excessive demands on athletes through public pressure and multiple
exploitation or to deceit (doping, manipulation of results …). It is in the very
interest of the media and sports to counter this danger because media sports can
only work as long as sport exists.

Occupation and commercialisation of public space
Every visually perceptible place has potential for advertising. Especially urban
areas with their structures but also landscapes in sight of through fares are more
and more turning into media for advertisements. Signs, posters, billboards, flags
have become decisive factors in the urban appearance and their numbers are still
on the increase. “Outdoor advertising has become unavoidable. Traditional
billboards and transit shelters have cleared the way for more pervasive methods
such as wrapped vehicles, sides of buildings, electronic signs, kiosks, taxis,
posters, sides of buses, and more. Digital technologies are used on buildings to
sport ‘urban wall displays’. In urban areas commercial content is placed in our
sight and into our consciousness every moment we are in public space. The
German Newspaper ‘Zeit’ called it a new kind of ‘dictatorship that one cannot
escape’. Over time, this domination of the surroundings has become the “natural”
state. Through long-term commercial saturation, it has become implicitly
understood by the public that advertising has the right to own, occupy and control
every inch of available space. The steady normalization of invasive advertising
dulls the public’s perception of their surroundings, re-enforcing a general attitude
of powerlessness toward creativity and change, thus a cycle develops enabling
advertisers to slowly and consistently increase the saturation of advertising with
little or no public outcry.”

The massive optical orientation toward advertising changes the function of public
spaces which are utilised by brands. Urban landmarks are turned into trademarks.
The highest pressure is exerted on renown and highly frequented public spaces
which are also important for the identity of a city (e. g. Piccadilly Circus, Times
Square, Alexanderplatz). Urban spaces are public commodities and in this capacity
they are subject to “aesthetical environment protection”, mainly through building
regulations, heritage protection and landscape protection. “It is in this capacity that
these spaces are now being privatised. They are peppered with billboards and
signs, they are remodelled into media for advertising.”

Socio-cultural aspects, sexism, discrimination and stereotyping
“Advertising has an “agenda setting function” which is the ability, with huge sums
of money, to put consumption as the only item on the agenda. In the battle for a
share of the public conscience this amounts to non-treatment (ignorance) of
whatever is not commercial and whatever is not advertised for. Spheres without
commerce and advertising serving the muses and relaxation remain without
respect. With increasing force advertising makes itself comfortable in the private
sphere so that the voice of commerce becomes the dominant way of expression in
society.” Advertising critics see advertising as the leading light in our culture. Sut
Jhally and James Twitchell go beyond considering advertising as kind of religion
and that advertising even replaces religion as a key institution. "Corporate
advertising (or is it commercial media?) is the largest single psychological project
ever undertaken by the human race. Yet for all of that, its impact on us remains
unknown and largely ignored. When I think of the media’s influence over years,
over decades, I think of those brainwashing experiments conducted by Dr. Ewen
Cameron in a Montreal psychiatric hospital in the 1950s (see MKULTRA). The
idea of the CIA-sponsored "depatterning" experiments was to outfit conscious,
unconscious or semiconscious subjects with headphones, and flood their brains
with thousands of repetitive "driving" messages that would alter their behaviour
over time….Advertising aims to do the same thing." Advertising is especially
aimed at young people and children and it increasingly reduces young people to
consumers. For Sut Jhally it is not “surprising that something this central and with
so much being expended on it should become an important presence in social life.
Indeed, commercial interests intent on maximizing the consumption of the
immense collection of commodities have colonized more and more of the spaces of
our culture. For instance, almost the entire media system (television and print) has
been developed as a delivery system for marketers its prime function is to produce
audiences for sale to advertisers. Both the advertisements it carries, as well as the
editorial matter that acts as a support for it, celebrate the consumer society. The
movie system, at one time outside the direct influence of the broader marketing
system, is now fully integrated into it through the strategies of licensing, tie-ins and
product placements. The prime function of many Hollywood films today is to aid
in the selling of the immense collection of commodities. As public funds are
drained from the non-commercial cultural sector, art galleries, museums and
symphonies bid for corporate sponsorship”. In the same way effected is the
education system and advertising is increasingly penetrating schools and
universities. Cities, such as New York, accept sponsors for public playgrounds.
“Even the pope has been commercialized … The pope’s 4-day visit to Mexico in
…1999 was sponsored by Frito-Lay and PepsiCo. The industry is accused of
being one of the engines powering a convoluted economic mass production system
which promotes consumption. As far as social effects are concerned it does not
matter whether advertising fuels consumption but which values, patterns of
behaviour and assignments of meaning it propagates. Advertising is accused of
hijacking the language and means of pop culture, of protest movements and even
of subversive criticism and does not shy away from scandalizing and breaking
taboos (e. g. Benneton). This in turn incites counter action, what Kalle Lasn in
2001 called ‘’Jamming the Jam of the Jammers’’. Anything goes. “It is a central
social-scientific question what people can be made to do by suitable design of
conditions and of great practical importance. For example, from a great number of
experimental psychological experiments it can be assumed, that people can be
made to do anything they are capable of, when the according social condition can
be created.”

Children and adolescents as target groups
The children’s market, where resistance to advertising is weakest, is the “pioneer
for ad creep”. “Kids are among the most sophisticated observers of ads. They can
sing the jingles and identify the logos, and they often have strong feelings about
products. What they generally don't understand, however, are the issues that
underlie how advertising works. Mass media are used not only to sell goods but
also ideas: how we should behave, what rules are important, who we should
respect and what we should value.” Youth is increasingly reduced to the role of a
consumer. Not only the makers of toys, sweets, ice cream, breakfast food and sport
articles prefer to aim their promotion at children and adolescents. Advertising for
other products preferably uses media with which they can also reach the next
generation of consumers. “Key advertising messages exploit the emerging
independence of young people”. Cigarettes, for example, “are used as a fashion
accessory and appeal to young women. Other influences on young people include
the linking of sporting heroes and smoking through sports sponsorship, the use of
cigarettes by popular characters in television programmes and cigarette
promotions. Research suggests that young people are aware of the most heavily
advertised cigarette brands.”

“Product placements show up everywhere, and children aren't exempt. Far from it.
The animated film, Foodfight, had ‘thousands of products and character icons from
the familiar (items) in a grocery store.’ Children's books also feature branded items
and characters, and millions of them have snack foods as lead characters.“
Business is interested in children and adolescents because of their buying power
and because of their influence on the shopping habits of their parents. As they are
easier to influence they are especially targeted by the advertising business. “The
marketing industry is facing increased pressure over claimed links between
exposure to food advertising and a range of social problems, especially growing
obesity levels.” In 2001, children’s programming accounted for over 20% of all
U.S. television watching. The global market for children’s licensed products was
some 132 billion U.S. dollars in 2002. Advertisers target children because, e. g. in
Canada, they “represent three distinct markets:
Primary Purchasers ($2.9 billion annually)
Future Consumers (Brand-loyal adults)
Purchase Influencers ($20 billion annually)

Kids will carry forward brand expectations, whether positive, negative or
indifferent Kids are already accustomed to being catered to as consumers. The long
term prize: Loyalty of the kid translates into a brand loyal adult customer” [94]

The average Canadian child sees 350,000 TV commercials before graduating from
high school, spends nearly as much time watching TV as attending classes. In 1980
the Canadian province of Québec banned advertising for children under age 13. “In
upholding the consititutional validity of the Quebec Consumer Protection Act
restrictions on advertising to children under age 13 (in the case of a challenge by a
toy company) the Court held: ‘...advertising directed at young children is per se
manipulative. Such advertising aims to promote products by convincing those who
will always believe.’” Norway (ads directed at children under age 12), and Sweden
(television ads aimed at children under age 12) also have legislated broad bans on
advertising to children, during child programmes any kind of advertising is
forbidden in Sweden, Denmark, Austria and Flemish Belgium. In Greece there is
no advertising for kids products from 7 to 22 h. An attempt to restrict advertising
directed at children in the USA failed with reference to the First Amendment. In
Spain bans are also considered undemocratic.

According to critics, the total commercialization of all fields of society, the
privatization of public space, the acceleration of consumption and waste of
resources including the negative influence on lifestyles and on the environment has
not been noticed to the necessary extent. The “hyper-commercialization of the
culture is recognized and roundly detested by the citizenry, although the topic
scarcely receives a whiff of attention in the media or political culture”. “The
greatest damage done by advertising is precisely that it incessantly demonstrates
the prostitution of men and women who lend their intellects, their voices, their
artistic skills to purposes in which they themselves do not believe, and …. that it
helps to shatter and ultimately destroy our most precious non-material possessions:
the confidence in the existence of meaningful purposes of human activity and
respect for the integrity of man.” “The struggle against advertising is therefore
essential if we are to overcome the pervasive alienation from all genuine human
needs that currently plays such a corrosive role in our society. But in resisting this
type of hyper-commercialism we should not be under any illusions. Advertising
may seem at times to be an almost trivial of omnipresent aspect of our economic
system. Yet, as economist A. C. Pigou pointed out, it could only be ‘removed
altogether’ if ‘conditions of monopolistic competition’ inherent to corporate
capitalism were removed. To resist it is to resist the inner logic of capitalism itself,
of which it is the pure expression.”

“Visual pollution, much of it in the form of advertising, is an issue in all the
world's large cities. But what is pollution to some is a vibrant part of a city's fabric
to others. New York City without Times Square's huge digital billboards or Tokyo
without the Ginza's commercial panorama is unthinkable. Piccadilly Circus would
be just a London roundabout without its signage. Still, other cities, like Moscow,
have reached their limit and have begun to crack down on over-the-top outdoor
advertising.” “Many communities have chosen to regulate billboards to protect and
enhance their scenic character. The following is by no means a complete list of
such communities, but it does give a good idea of the geographic diversity of
cities, counties and states that prohibit new construction of billboards. Scenic
America estimates the nationwide total of cities and communities prohibiting the
construction of new billboards to be at least 1500. A number of States in the USA
prohibit all billboards:
Vermont - Removed all billboards in 1970s
Hawaii - Removed all billboards in 1920s
Maine - Removed all billboards in 1970s and early 80s
Alaska - State referendum passed in 1998 prohibits billboards [103]
Almost two years ago the city of São Paulo, Brazil, ordered the downsizing or
removal of all billboards and most other forms of commercial advertising in the

Technical appliances, such as Spam filters, TV-Zappers, Ad-Blockers for TV’s and
stickers on mail boxes: “No Advertising” and an increasing number of court cases
indicate a growing interest of people to restrict or rid themselves of unwelcome

Taxation as revenue and control
Public interest groups suggest that “access to the mental space targeted by
advertisers should be taxed, in that at the present moment that space is being freely
taken advantage of by advertisers with no compensation paid to the members of the
public who are thus being intruded upon. This kind of tax would be a Pigovian tax
in that it would act to reduce what is now increasingly seen as a public nuisance.
Efforts to that end are gathering more momentum, with Arkansas and Maine
considering bills to implement such a taxation. Florida enacted such a tax in 1987
but was forced to repeal it after six months, as a result of a concerted effort by
national commercial interests, which withdrew planned conventions, causing major
losses to the tourism industry, and cancelled advertising, causing a loss of 12
million dollars to the broadcast industry alone”.

In the US many communities believe that many forms of outdoor advertising blight
the public realm. As long ago as the 1960s in the US there were attempts to ban
billboard advertising in the open countryside. Cities such as São Paulo have
introduced an outright ban with London also having specific legislation to control
unlawful displays.

There have been increasing efforts to protect the public interest by regulating the
content and the influence of advertising. Some examples are: the ban on television
tobacco advertising imposed in many countries, and the total ban of advertising to
children under 12 imposed by the Swedish government in 1991. Though that
regulation continues in effect for broadcasts originating within the country, it has
been weakened by the European Court of Justice, which had found that Sweden
was obliged to accept foreign programming, including those from neighboring
countries or via satellite.

In Europe and elsewhere, there is a vigorous debate on whether (or how much)
advertising to children should be regulated. This debate was exacerbated by a
report released by the Kaiser Family Foundation in February 2004 which suggested
that food advertising, such as that for fast foods, targeting children was an
important factor in the epidemic of childhood obesity in the United States.

In many countries - namely New Zealand, South Africa, Canada, and many
European countries - the advertising industry operates a system of self-regulation.
Advertisers, advertising agencies and the media agree on a code of advertising
standards that they attempt to uphold. The general aim of such codes is to ensure
that any advertising is 'legal, decent, honest and truthful'. Some self-regulatory
organizations are funded by the industry, but remain independent, with the intent
of upholding the standards or codes like the Advertising Standards Authority in the

In the UK most forms of outdoor advertising such as the display of billboards is
regulated by the UK Town and County Planning system. Currently the display of
an advertisement without consent from the Planning Authority is a criminal offense
liable to a fine of £2,500 per offence. All of the major outdoor billboard companies
in the UK have convictions of this nature.

Naturally, many advertisers view governmental regulation or even self-regulation
as intrusion of their freedom of speech or a necessary evil. Therefore, they employ
a wide-variety of linguistic devices to bypass regulatory laws (e.g. printing English
words in bold and French translations in fine print to deal with the Article 120 of
the 1994 Toubon Law limiting the use of English in French advertising).[124] The
advertisement of controversial products such as cigarettes and condoms is subject
to government regulation in many countries. For instance, the tobacco industry is
required by law in most countries to display warnings cautioning consumers about
the health hazards of their products. Linguistic variation is often used by
advertisers as a creative device to reduce the impact of such requirements.


Global advertising

Advertising has gone through five major stages of development: domestic, export,
international, multi-national, and global. For global advertisers, there are four,
potentially competing, business objectives that must be balanced when developing
worldwide advertising: building a brand while speaking with one voice, developing
economies of scale in the creative process, maximising local effectiveness of ads,
and increasing the company’s speed of implementation. Born from the
evolutionary stages of global marketing are the three primary and fundamentally
different approaches to the development of global advertising executions:
exporting executions, producing local executions, and importing ideas that travel.

Advertising research is key to determining the success of an ad in any country or
region. The ability to identify which elements and/or moments of an ad that
contributes to its success is how economies of scale are maximised. Once one
knows what works in an ad, that idea or ideas can be imported by any other
market. Market research measures, such as Flow of Attention, Flow of Emotion
and branding moments provide insight into what is working in an ad in any country
or region because the measures are based on the visual, not verbal, elements of the


With the dawn of the Internet came many new advertising opportunities. Popup,
Flash, banner, Popunder, advergaming, and email advertisements (the last often
being a form of spam) are now commonplace.

The ability to record shows on digital video recorders (such as TiVo) allow users
to record the programs for later viewing, enabling them to fast forward through
commercials. Additionally, as more seasons of pre-recorded box sets are offered
for sale of television programs; fewer people watch the shows on TV. However,
the fact that these sets are sold, means the company will receive additional profits
from the sales of these sets. To counter this effect, many advertisers have opted for
product placement on TV shows like Survivor.

Particularly since the rise of "entertaining" advertising, some people may like an
advertisement enough to wish to watch it later or show a friend. In general, the
advertising community has not yet made this easy, although some have used the
Internet to widely distribute their ads to anyone willing to see or hear them.

Another significant trend regarding future of advertising is the growing importance
of the niche market using niche or targeted ads. Also brought about by the Internet
and the theory of The Long Tail, advertisers will have an increasing ability to reach
specific audiences. In the realm of advertising agencies, continued industry
diversification has seen observers note that “big global clients don't need big global
agencies any more”. This trend is reflected by the growth of non-traditional
agencies in various global markets, such as Canadian business TAXI and SMART
in Australia and has been referred to as "a revolution in the ad world".

In freelance advertising, companies hold public competitions to create ads for their
product, the best one of which is chosen for widespread distribution with a prize
given to the winner(s). During the 2007 Super Bowl, PepsiCo held such a contest
for the creation of a 30-second television ad for the Doritos brand of chips, offering
a cash prize to the winner. Chevrolet held a similar competition for their Tahoe line
of SUVs. This type of advertising, however, is still in its infancy. It may ultimately
decrease the importance of advertising agencies by creating a niche for
independent freelancers

                         9. FINDINGS

1) Company. were not able to put 100% effort for getting more and more sales due
lack of internal and external factors which includes lack of timely availability of
their salaries and incentives, lack of motivation as and when required etc. So
company should provide them returns on timely basis which is a big external
motivational factor.

2) Too much pressure of sales on employees, due to which their is increase in
attrition rate and false commitments were made by employees which ultimately
leads to dissatisfaction from customer. So company should adopt some long term
strategy in which they can satisfy both internal and external customers too.

3) There is lack of sufficient training given to Company. due to which they were
not effective in generating sales so before sending them to field they should be
trained properly, how to pitch in front of customers.

4) Customers were not satisfied with connectivity or speed of Company service
due to which they are not able to get good customer base for promotion. So they
should concentrate on how increasing the connectivity speed.

5) Plans under brand promotion were very much costly which is not affordable for
common people or it doesn’t suit mass market. So if any company wants to be
successful in India like country they should think of mass market too because more
than 60% revenue is generated by the mass market itself.

6) Their was lack of relationship mgt. part from company side due to which
company was not able to make sales on reference basis which acts as an important
tool of generating sales.

7) Analysing the collected data is very essential for arriving at any conclusion.
During the process of analysis we found out that many COMPANY do get
influenced by brand and reputation of BRAND, they consider this factor a lot
while deciding the college for the admission.

In this project we have also mentioned the areas where improvement is required in
BRAND according to its PROJECT REPORT.

                       10. CONCLUSION

   1- "A company's brand is the primary source of its competitive advantage and a
      valuable strategic asset."

   2-   "A company's brand is the primary source of its competitiveadvantage and a
        valuable strategic asset." differentiates from the rest Branding is necessary
        for marketing company.

   3-   New company always focus on promote their product.

   4- Modern people choose branded product from the market.

   5- So important is that company always be a good repo in the market.

   6-    Naturally, many advertisers view governmental regulation or even self-
        regulation as intrusion of their freedom of speech or a necessary evil.

   7- With the dawn of the Internet came many new advertising opportunities.
      Popup, Flash, banner, Popunder, advergaming, and email advertisements
      (the last often being a form of spam) are now commonplace.

                 11. BIOBLIOGRAPHY

Text book of “Brand promotion”

Text book of “Project Management”


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