VIEWS: 89 PAGES: 53 POSTED ON: 2/14/2012
NAME : Mrs.K.Sarguna Class : III BBM Subject: Promotion management UNIT - I Advertising: Meaning-importance-objectives-media-forms of media-press Newspaper trade journal-Magazines-out door advertising-poster-banners - neon signs, publicity literature booklets, folders, house organs-direct mail advertising-cinema and theatre programme-radio and television advertising-exhibition-trade fair-transportation advertising. Advertising Advertising is a form of communication intended to persuade an audience (viewers, readers or listeners) to purchase or take some action upon products, ideals, or services. It includes the name of a product or service and how that product or service could benefit the consumer, to persuade a target market to purchase or to consume that particular brand. These messages are usually paid for by sponsors and viewed via various media. Advertising can also serve to communicate an idea to a large number of people in an attempt to convince them to take a certain action. Commercial advertisers often seek to generate increased consumption of their products or services through branding, which involves the repetition of an image or product name in an effort to associate related qualities with the brand in the minds of consumers. Non-commercial advertisers who spend money to advertise items other than a consumer product or service include political parties, interest groups, religious organizations and governmental agencies. Nonprofit organizations may rely on free modes of persuasion, such as a public service announcement. Modern advertising developed with the rise of mass production in the late 19th and early 20th centuries. Mass media can be defined as any media meant to reach a mass amount of people. Different types of media can be used to deliver these messages, including traditional media such as newspapers, magazines, television, radio, outdoor or direct mail; or new media such as websites and text messages. Importance of advertising In a successful business, advertising play an essential and important role. Though advertising does not mean selling of products and services but it helps in increasing your sells. Advertising create awareness in people. When general public be conscious to the products, services and goods under the brands and pursuit people towards brands and make them buying better brands. Advertising ensures that the sales of the business increase. The second importance is that the product which is sold under the banner of a specific brand also becomes a household name. For example, Coke or coca-cola is a house hold brand name. Same is the case of Pepsi. Such popular brand names have huge customer base that is loyal to the brand and continues to purchase the product for a prolonged time period. Such a customer base also introduces the product and brand to many other people. Creation of awareness is the primary objective of any advertisement. Thus, when any product is advertised, people become aware about its existence and as mentioned above, a need and craving to purchase and own the commodity. Importance of Advertising in Business From the business point of view, advertising not just optimizes sales and product promotion but the goodwill of the specific brand that is earned is an important asset. A well known brand not only has a good customer base but it is a great ground to introduce new products under the same banner. In such a case, there is a very high probability that people are going to purchase the new product out of curiosity. It is often said that reputation gained and maintained due to advertising helps out the business through out the life time. The logic behind that is simple. When advertising creates awareness, people know about the product and when they known about the product, they pay attention to its newer advertisements and the probability that the person will buy the product will increase. To conclude the paragraph it can be said that advertising helps business gain loyal customers as well as a good platform in the entire market. Importance of Advertising in Marketing Apart from gaining a loyal customer base, advertising is often successful in marketing the brand and conveying financial details about the brand to the consumers. The pricing details often generate an interest and the process of money planning, starts ticking in the person's mind. Offers such a buy 2 get 1 free or discounts are introduced to the consumers successfully through advertising. Such offers result into a spurt of sales and are quite instrumental for clearance sales, new introduction sales, re-release sales, etc. Advertising thus, plays quite a comprehensive role in marking policies. Importance of Advertising on the Internet There is a significant importance of online advertising due to the fact that an online advertisement results into global awareness. Today, when a person feels the need to purchase something, his first reaction is to search the web. With your advertisement being present on the web, there is a high possibility that the consumer is going to purchase your product. In fact, financially speaking online marketing services are much more convenient for consumers and cheap for producers as it drastically brings down the cost of advertising. The manifold advantages of advertising have been observed for a long period of time. However, the intensity and importance of advertising have greatly increased due to the technological advancements of the modern era. Media and advertising approaches Increasingly, other media are overtaking many of the "traditional" media such as television, radio and newspaper because of a shift toward consumer's usage of the Internet for news and music as well as devices like digital video recorders (DVRs) 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. Digital signage is poised to become a major mass media because of its ability to reach larger audiences for less money. Digital signage also offer the unique ability to see the target audience where they are reached by the medium. Technological advances have also made it possible to control the message on digital signage with much precision, enabling the messages to be relevant to the target audience at any given time and location which in turn, gets more response from the advertising. Digital signage is being successfully employed in supermarkets. Another successful use of digital signage is in hospitality locations such as restaurants.  and malls. E-mail advertising is another recent phenomenon. Unsolicited bulk E-mail advertising is known as "e-mail spam". Spam has been a problem for email users for many years. 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" (often used by those exposed to many video games) = 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. 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 service. Recently, there appeared a new promotion concept, "ARvertising", advertising on Augmented Reality technology. Types of advertising Paying people to hold signs is one of the oldest forms of advertising, as with this Human billboard pictured above A bus with an advertisement for GAP in Singapore. Buses and other vehicles are popular mediums for advertisers. A DBAG Class 101 with UNICEF ads at Ingolstadt main railway stationVirtually any medium can be used for advertising. 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,doors of bathroom stalls,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 advertising. Digital advertising Television advertising / Music in advertising 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 US$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. This technique is especially used in televised sporting events Virtual product placement is also possible Infomercials: An infomercial is a long-format television commercial, typically five minutes or longer. The word "infomercial" combining the words "information" & "commercial". 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. Nature of Television Advertising: Television Advertising is entertaining in nature as it provides both audio-visual facilities. Television Advertising provides effective reach to the target audience along with good coverage. A television ad generally lasts between 40 and 60 seconds. Advantages of Television Advertising Mass coverage Effective reach and coverage Preferred channel by the mass Radio advertising Radio advertising is a form of advertising via the medium of radio. Radio advertisements are broadcast as radio waves to the air from a transmitter to an antenna and a thus to a receiving device. Airtime is purchased from a station or network in exchange for airing the commercials. While radio has the obvious limitation of being restricted to sound, proponents of radio advertising often cite this as an advantage. Nature of Radio Advertising: Radio Ads usually last between 30 and 60 seconds. Radio Advertising has widespread reach because of its portable nature. Audiences love listening to radio ads along with their musical jingles. Advantages of Radio Advertising Entertaining in nature Mass coverage Efficiently delivers the message to the right target group Portable and can fit anywhere Cheap and affordable Provides call for action facilities for advertisers Online advertising Online advertising is a form of promotion that uses the Internet and World Wide Web for the expressed purpose of delivering marketing messages to attract customers. Examples of online advertising include contextual ads that appear on search engine results pages, banner ads, in text ads, Rich Media Ads, Social network advertising, online classified advertising, advertising networks and e-mail marketing, including e-mail spam. Print Advertising Nature of Print Advertising: Any type of publicity which is carried on through print medium comes under Print Advertising. Examples of Print Advertising include magazines, newspapers, journals, flyers etc. Advantages of Print Advertising Focused target Repetition (one can go through a particular print ad again and again) Good for future reference Message can be effectively transmitted Airport Advertising Nature of Airport Advertising: Airport Advertising is one of the forms of outdoor advertising or OOH Advertising. Airport Advertising is carried through various advertising tools such as kiosks, digital signage, billboards, hoardings etc Advantages of Airport Advertising Effective reach Attention grabbing High-glamour look Outdoor Advertising/ OOH Advertising Nature of Outdoor Advertising/ OOH Advertising: Outdoor Advertising or OOH Advertising involves any kind of promotion carried out of home. Examples of Outdoor Advertising or OOH Advertising include billboards, hoardings, kiosks, digital signage, lampposts etc. Advantages of Outdoor Advertising Wide reach and exposure Attractive and eye-catchy Effectively reaches the target audience Not limited to a particular region Mobile and Internet Advertising Nature of Mobile and Internet Advertising: Mobile and Internet Advertising has become one of the latest trends of promotion Mobile and Internet Advertising both are customer centric. Forms of Mobile Advertising include SMS- Push, Pull, Shortcut, Keywords, WAP/Voice Portal/ Bluetooth/ Gaming, Contest Hosting; Subscription based alerts, Download-Ringtones, Wallpapers, Sponsorship of zones, Brand Zone/ Customer Care Zone etc. Some forms of Internet Advertising include banner/ text advertising (CPM, PPC, CPL), E-mail marketing, Viral marketing etc Advantages of Mobile and Internet Advertising Renders effective reach and immediacy Interactive in nature Not time consuming and delivers the message within a short period of time A personalized mode of promotion UNIT II Advertising agencies – advertising budget – advertising appaels – advertising organisation – social effects of advertising – advertising copy – objectives – essentials - types – elements of copy writing: headlines, body copy – illustration – catch phrases and slogans – identification marks. ADVERTISING AGENCY An advertising agency or ad agency is a service business dedicated to creating, planning and handling advertising (and sometimes other forms of promotion) for its clients. An ad agency is independent from the client and provides an outside point of view to the effort of selling the client's products or services. An agency can also handle overall marketing and branding strategies and sales promotions for its clients. Typical ad agency clients include businesses and corporations, non-profit organizations and government agencies. Agencies may be hired to produce an advertising campaign TYPES OF ADVERTISING AGENCIES Ad agencies come in all sizes and include everything from one or two- person shops (which rely mostly on freelance talent to perform most functions), small to medium sized agencies, large independents such as SMART and TAXI, and multi-national, multi-agency conglomerates such as Omnicom Group, WPP Group, Publicis, Interpublic Group of Companies and Havas. Limited-Service Advertising Agencies Some advertising agencies limit the amount and kind of service they offer. Such agencies usually offer only one or two of the basic services. For example, although some agencies that specialize in "creative" also offer strategic advertising planning service, their basic interest is in the creation of advertising. Similarly, some "media-buying services" offer media planning service but concentrate on media buying, placement, and billing. When the advertiser chooses to use limited-service advertising agencies, it must assume some of the advertising planning and coordination activities that are routinely handled by the full-service advertising agency. Thus, the advertiser who uses limited-service agencies usually takes greater responsibility for the strategic planning function, gives greater strategic direction to specialist creative or media agencies, and exercises greater control over the product of these specialized agencies, ensuring that their separate activities are well-ordered and -coordinated. Specialist Advertising Agencies In addition to the full-service, general-line advertising agencies, there are also agencies that specialize in particular kinds of advertising: recruitment, help- wanted, medical, classified, industrial, financial, direct-response, retail, yellow pages, theatrical/entertainment, investment, travel, and so on. Specialization occurs in such fields for a variety of reasons. Often, as in recruitment advertising, for example, specialized media or media uses are involved that require knowledge and expertise not ordinarily found in a general-line agency. In other cases, such as medical or industrial advertising, the subject is technical and requires that writers and artists have training in order to write meaningful advertising messages about it. Such specialist advertising agencies are also usually "full-service," in that they offer all the basic advertising agency services in their area of specialization plus other, peripheral advertising services related to their area of specialization. In-House Advertising Agencies Some advertisers believe that they can provide such advertising services to themselves at a lower cost than would be charged by an outside agency. Interactive agencies Interactive agencies may differentiate themselves by offering a mix of web design/development, search engine marketing, internet advertising/marketing, or e- business/e-commerce consulting. Interactive agencies rose to prominence before the traditional advertising agencies fully embraced the Internet. Offering a wide range of services, some of the interactive agencies grew very rapidly, although some have downsized just as rapidly due to changing market conditions. Today, the most successful interactive agencies are defined as companies that provide specialized advertising and marketing services for the digital space. The digital space is defined as any multimedia-enabled electronic channel that an advertiser's message can be seen or heard from. The 'digital space' translates to the Internet, kiosks, CD-ROMs, DVDs, and lifestyle devices (iPod, PSP, and mobile). Interactive agencies function similarly to advertising agencies, although they focus solely on interactive advertising services. They deliver services such as strategy, creative, design, video, development, programming (Flash and otherwise), deployment, management, and fulfillment reporting. Often, interactive agencies provide: digital lead generation, digital brand development, interactive marketing and communications strategy, rich media campaigns, interactive video brand experiences, Web 2.0 website design and development, e-learning Tools, email marketing, SEO/SEM services, PPC campaign management, content management services, web application development, and overall data mining & ROI assessment. The recent boost in the interactive agencies can also be attributed to the rising popularity of web-based social networking and community sites. The creation of sites such as MySpace, Facebook and YouTube have sparked market interest, as some interactive agencies have started offering personal and corporate community site development as one of their service offerings. It still may be too early to tell how agencies will use this type of marketing to monetize client ROI, but all signs point to online networking as the future of brand marketing and Interactive being the core of Brand's Communication and Marketing Strategy. Due to the social networking explosion, new types of companies are doing reputation management. This type of agency is especially important if a company needs online damage control. If a customer becomes disgruntled, it is very easy to damage a company's reputation via social networking sites. Because of how rapidly the information spreads, it becomes absolutely necessary to address any rumors, gossip or other negative online press immediately. Search engine agencies Lately, pay per click (PPC) and search engine optimization (SEO) firms have been classified by some as 'agencies' because they create media and implement media purchases of text based (or image based, in some instances of search marketing) ads. This relatively young industry has been slow to adopt the term 'agency', however with the creation of ads (either text or image) and media purchases, they do technically qualify as 'advertising agencies'. Social media agencies Social media agencies specialize in promotion of brands in the various social media platforms like blogs, social networking sites, Q&A sites, discussion forums, microblogs etc. The two key services of social media agencies are: social media marketing online reputation management Healthcare communications agencies Healthcare communications agencies specialize in strategic communications and marketing services for the Healthcare and Life Science industries. These agencies distinguish themselves through an understanding of the strict labeling and marketing guidelines mandated by the U.S. Food and Drug Administration (FDA) and industry group guidelines, most notably ADVAMED and PHARMA. Medical education agencies Medical education agencies specialize in creating educational content for the Healthcare and Life Science industries. These agencies typically specialize in one of two areas: Promotional education - education and training materials tied to the promotion of a given product or therapy Continuing medical education - accredited education and training materials created for continuing physician and medical professional education. Other agencies While not advertising agencies, enterprise technology agencies often work in tandem with advertising agencies to provide a specialized subset of services offered by some interactive agencies: Web 2.0 website design and development, Content management systems, web application development, and other intuitive technology solutions for the web, mobile devices and emerging digital platforms. The student-run advertising agency model, which mainly operates out of university classrooms or as a student groups, provides free advertising services to clients in exchange for the educational opportunity. Role of Advertising Agency The major role as advertising agency is to work alongside the clients to develop and sustain the brands that they mutually serve, through consumer understanding and insight and through creative and media delivery skills to provide best advice and the best execution thereof to those clients for the advertising of those brands. “Buildings age and become dilapidated. Machines wear out. People die. But what live on are the brands.” Brands are much more than mere products and services. Brands, if successful, are clearly differentiated entities with which consumers can and do form a mutually beneficial relationship over time, because of the values – rational and emotional, physical and aesthetic – that consumers derive from them. The importance can be summed up as follows: “A product is something that is made, in a factory: a brand is something that is bought, by a customer. A competitor can copy a product; a brand is unique. A product can be quickly out-dated; a successful brand is timeless.” The role of advertising and the advertising agency is to help effect this transformation from product or service to brand by clearly positioning the offering to the consumer – its role and its benefits – and by communicating the brand’s own personality. In short its role is to provide meaningful differentiation via the consumer connection. As one wise head in advertising once said, “nothing kills a bad product faster than good advertising”. Typically advertising is playing this role, along with other parts of what we call the marketing mix, in highly competitive market places. Most advertisers assign this job of informing the target audience and creating images to advertising agencies. Thus, the advertising agencies plan, prepare and place ads in the media. But even an advertiser can do all these things. The management can do planning of ad campaigns. For preparing ads, creative personal can be hires. And the advertiser for placing the ads can buy media space or time. So, why hire an advertising agency? The reason can be enlisted as follows: Expertise and experience- An advertising agency brings together people with the required expertise and experience of the various sub-disciplines of advertising. Thus, it has the copywriters, visualizes, researchers, photographers, directors, planners and people who get business and deal with clients working in ad agencies. An agency moulds all these people into a team and gives them a highly conducive work atmosphere. The agency makes the best use of their talents and experience to deliver rapidly, efficiently and in greater depth than a company or organization could do on its own. Objectivity and professionalism- Advertising agencies are highly professional. Objectivity is a major virtue of ad agency. They operate in a strange way. While they take up advertising for others, agencies hardly advertise themselves. Ad agencies being outside intermediaries can be objective. They thus will offer independent and detached viewpoints and suggestions based on objective analysis. Cost effective- If an organization wants to hire people to do its advertising, it can not provide them work all through the year. Also most experts in the fields of advertising like directors, musicians, photographers, charge huge amounts and are often not affordable. Moreover, hiring, organizing and managing all talents required to produce advertising campaigns is not an easy thing. And the fact that 98% of advertisers the worlds over hire as agencies is proof enough about the cost effectiveness of the agencies. Also the kind of consistent, powerful and compelling advertising that can be created by using the expertise, experience, objectivity and professionalism of ad agencies cannot be measured economically. FUNCTIONS OF ADVERTISING AGENCIES Today advertising agencies are found in virtually every major city on the world and their role in stimulating economic growth is solidly established. To understand advertising, we need to examine the functions of an Ad Agency. These are: - Talent & Creative productions: The basic function of an Ad Agency is providing talent. The creative efforts of the art director, the detailed analysis of the research director and the political understanding of the campaign director, are just a few examples of the many abilities of Ad Agency personal have to offer. A business organization or person will contract the services of an ad agency to help market a product. This function involves processing the information collected from the client and through research and designing communication material in the form of advertisements and other publicity material. This also includes planning creative strategies, copy or script writing, visualization, designing, layout, shooting of films, editing, giving music, etc. Research: The second function of an Ad agency is research. In order to distribute the message to the public successfully, the agency must first know all that it can about the product. One of the first jobs is to research the product and the company, one must learn, one possibly can about both. The research must even take one close to the heart of the firm’s inner operations. Ad agencies use research as a tool to test consumer reactions to products and services. Distribution & Media planning: The third important function of an ad agency is distribution. Here you decide what type of message you will create for the company and what media will be most helpful in sending this message to the public. On the basis of the media habits (access and exposure) of the target audience, agency people prepare a media plan. This plan includes which media to be used, which part of the media to be used, when to place the ads and for how long to place the ads, etc. media planners keep track of the viewer ship, listener ship and readership of all kinds of media. Monitoring Feedback: By monitoring consumer feedback, a decision on whether to revise the message, the medium, the target audience or all of them can be made. Ad agencies are developing to reach the target audience. As information is the backbone of all advertising, to prepare ads, one requires information about the product, its competitors, the market situation and trends, information about the audiences (their likes and dislikes and media habits) also need to be collected. Some of the most effective advertising includes advertisement written in their native language. All of these specialized campaigns are creating new demands on agencies and are requiring new talents for people who work in advertising. In addition, many agencies also offer a variety of allied services. These include: Merchandising Public relations Organizing exhibitions and fairs Preparing all kinds of publicity material Planning and organizing special events (event management) Direct marketing ADVERTISING BUDGET Definition: Money set aside by the advertiser to pay for advertising. There are a variety of methods for determining the most desirable size of an advertising budget. Deciding on Advertising Budget Advertising has a carryover effect that lasts beyond the current period. Although advertising is treated as a current expense, part of it is really an investment that builds up an intangible asset called brand equity. This treatment of advertising reduces the company’s reported profit and therefore limits the number of new product launches a company can undertake in any one year. The following are the five factors that are considered while setting the advertising budget: Stage in the product life cycle: new products typically receive large advertising budgets to build awareness and to gain consumers trial. Market share and consumer base: the brands having a high market share usually require less advertising expenditure whereas for products whose brand needs to be built, requires larger advertising expenditure. Competition and clutter: In today’s competitive market, where there are a large number of competitors, a brand must advertise heavily to be heard. Advertising frequency: the number of repetitions that need to be made to put across the brand message to consumers has an important impact on the advertising budget. Product substitutability: brands in the commodity class require heavy advertising to establish a different image. For example, cigarettes, beer, soft drinks. Also advertising is important when the brand can offer unique physical benefits or features. ADVERTISING APPEAL Distinctive claim of an advertising. Creating advertising appeal for a good or service begins with identifying a reason for people to buy it. Advertising agencies then build advertising campaigns around this appeal. See also advertising theme. Different types of Advertising Appeals Audio-Visual Media Advertising: In this advertising technique, the advertisers use the very popular audio and visual media to promote a product. It is the most widely used media that can effectively influence the masses. Television and radio have always been used to achieve a mass appeal. Bandwagon: This advertising appeal aims to persuade people to do a certain thing because the masses are doing it. It is a human tendency to do as the masses do. Bandwagon technique of advertising captures exactly this psychology of human beings to induce them to use a certain product or service. Black and White Fallacy: In this advertising appeal, only two choices are presented before the audiences, thus compelling them to buy the product being advertised. Card Stacking: This advertising appeal involves the display of a comparative study between two competing products. The facts in favor of the product to be advertised are selected. They are put forth in comparison with those of a competing product to make the product appear better than its competitors. Classified Advertising: This type of advertising makes use of newspapers and periodicals to make public appeals about the products or services to be advertised. Know about going global with classified advertising. Corporate Advertising: Corporate advertising is an advertising appeal wherein corporate logos and company message are publicized on a large scale. Hot air balloons are commonly used in advertising a product. Some companies propose to place their logos on booster rockets and space stations to achieve a wide publicity of the company. Covert Advertising: This is the practice of achieving an indirect publicity of the product by advertising it through movies and TV shows. TV actors and characters in movies are often shown using certain products. Covert advertising is an indirect way of advertising a product by featuring it in films and television shows. Demonizing the Enemy: In this advertising appeal, the advertisers make the people with an opposing point of view appear unacceptable. The people bearing certain ideas are made to appear among the disliked individuals of society. This form of advertising involves the idea of encouraging an idea by discouraging the ideas contrary to it. It is like proving a theorem by disproving its inverse! Direct Order: When the advertisers appeal the masses by showing them the steps to take, in order to opt for a particular product or service, they are said to be using direct order. This advertising appeal often communicates the steps to choose a certain product or service and presents them to the audiences in a simplistic manner. Disinformation: This technique involves a purposeful dissemination of false information. In the context of military, this technique is used to mislead the enemy. It commonly includes forging of documents and the spread of rumors. Email Advertising: This is a relatively new advertising appeal that makes use of emails to advertise products. Advertisements are sent through emails, thus bringing out communication with a wide range of audiences. Emotional Words: This advertising appeal makes use of positive words to generate positive feelings in the minds of the people about a certain product. The advertisers often use the words like 'luxury', 'comfort' and 'satisfaction' to create positive vibes among the masses to attract them towards the product being advertised. Euphoria: The use of positive events characterizes this advertising appeal. Declaration of a great discount or sale on a holiday and making luxury items available at affordable prices are often used to aim mass appeal. Flag-waving: The advertising appeal that makes use of the patriotic flavor to publicize a product is known as flag-waving. In case of flag-waving, the advertisers try to justify certain actions on the grounds of patriotism. The masses are persuaded to choose a particular product because doing so will be an exhibit of patriotism. Glittering Generalities: In this form of advertising, advertisers make use of logical fallacies. They use appealing words without giving any concrete idea about what is being advertised. Half Truth: In this advertising appeal, the advertisers use deceptive statements to publicize their product. They often use double-meaning words or statements to convey their message to the masses. Interactive Advertising: This advertising appeal makes use of the interactive media to reach out to the target audiences. Advertisers often hold exhibitions or trade-shows and offer rewards in the forms of discounts and free gifts to increase the sale of their product. Distribution of free samples of a newly launched product and publicity of a product through interactive means are some examples of interactive advertising. Have you participated in contests intended to promote products? Have you come across websites offering free products to users? The free stuffs are popularly known as freebies. Know more about Freebies. Internet Advertising: It is a relatively recent form of advertising appeal. Internet has become one of the most influential media of the modern times. Websites attract thousands of users everyday and expose them to the advertisements on the websites. Labeling: With an intent to increase or diminish the perceived quality of a product, the advertisers use labeling or categorization. Categorizing a product under a group of associated entities makes it appealing or unappealing to the masses. Name-calling: This advertising appeal makes use of direct or indirect attack on the products in competition with the product being advertised. Direct name-calling involves making a direct attack on the opponent while indirect name-calling makes use of sarcasm to demean the products of the competitors. Outdoor Advertising: Outdoor advertising is a popular advertising appeal that uses different tools to attract the customers outdoors. Billboards, kiosks and tradeshows are some of the commonly used means of outdoor advertising. Fairs, exhibitions and billboards that draw in the passersby are often used in outdoor advertising. Performance-based Advertising: In performance-based advertising appeal, the advertisers pay only for the results. The advertising agency assumes the entire risk and hence ensures that the advertisement is pitched well. Plain Folks: This advertising appeal aims at attracting the masses by using common people to advertise a product. Bombastic words may not always appeal the common folks. They can rather be attracted by communicating with them in their language. The use of homey words, as they are called, and purposeful errors while speaking to give a natural feel to the speech, is characteristic to this advertising appeal. Print Media Advertising: The print media is one of the most effective means of advertising. Many advertising appeals make use of the print media to reach out to the masses. Media like newspapers, brochures, manuals and magazines are used for publicizing the products. Public Service Advertising: This advertising technique is used to convey socially relevant messages to the masses. Social messages on issues like poverty, inequality, AIDS awareness and environmental issues such as global warming, pollution and deforestation are conveyed by the means of appeals to the public through public service advertising. Quotes Out of Context: This advertising appeal makes use of popular quotes. The advertisers using this advertising appeal alter the widely known quotes to change their meaning. This technique is used in political documentaries. Relationship Marketing: This form of advertising focuses on the retention of customers and customer satisfaction. Advertisers appeal to the target audiences with information that suits their requirements and interests. Repetition: This advertising appeal uses the technique of repeating the product name several times during an advertisement. Jingles are often used in this advertising technique to linger the product name in the minds of the masses. Scientific Evidence: This technique attempts to appeal the masses to use the advertised product, by providing the audiences with survey results. The advertisers often use statistical evidences and market surveys to publicize their product. Shockvertising: This advertising appeal makes use of shocking images or scenes to advertise a product. The name is derived as a combination of the two words, ‘shocking’ and ‘advertising’. Slogans: Slogans, as we all know, are striking phrases used to convey important information of the product to be advertised in an interesting manner. There are lot many famous advertising slogans that we are familiar with. Snob Appeal: Snob appeal is an exact reverse of the bandwagon technique. In this advertising appeal, people are induced to buy a certain product so that they can stand out of the crowd. It is often indicated that buying the product will make them look different from the rest. It is often indicated that the product is not affordable for the common masses by attaching a 'sense of exclusivity' to such products. Stereotyping: This advertising appeal is also known as name-calling or labeling and attempts to categorize the advertised object under the class of the entities, which the masses fear. Subliminal Advertising: This advertising appeal makes use of subliminal messages, which are intended to be subconsciously perceived. Subliminal signals go undetected by the human eye. However, they are perceived at a subconscious level. Subliminal appeal often makes use of hidden messages and optical illusions. Surrogate Advertising: In cases where advertising of a particular product is made illegal, the product companies come up with other products with the same brand name. Advertising the legal products with the same brand name reminds the audiences of their legally banned products as well. Testimonial: People tend to relate to their favorite figures in the glamor industry. People attracted to their idols often tend to adopt what their idols do. They want to emulate the people they relate to. Testimonial makes use of this human tendency by using the words of an expert to recommend their products. Celebrities are used as ambassadors for products in order to promote the sale. Transfer: This advertising appeal is implemented in two ways. In a positive transfer, a product is made to associate with a respected individual of society. However, in case of a negative transfer, the advertisers state an analogy between a product and a disliked figure in society. Unstated Assumption: When the idea behind the product or service being advertised is repeatedly implied, it is known as an unstated assumption. In case of using this advertising appeal, the advertisers do not state the concepts explicitly. They rather imply their ideas in various ways. Viral Advertising: It can take the form of word-of-mouth publicity or of Internet advertising. The aim of the advertiser is to market the product on a very large scale. This advertising appeal intends to achieve a speedy publicity of a product similar to the spreading of a pathological or a computer virus! Word-of-Mouth Advertising: It can turn out being a very effective advertising appeal. It can achieve phenomenal success to an extent where a brand is equated to a common noun. Vaseline can be sited as one of the excellent examples of word- of-mouth publicity, where the company name, ‘Vaseline’ became synonymous with the product name, ‘petroleum jelly’. This was an overview of the different advertising appeals that advertisers around the world use to market their products and services. Many of the popularly used products and services of today have gained popularity thanks to the advertising techniques that were implemented for their publicity. Advertising appeals used by a company are important determinants of its success. Learn about the different Advertising Techniques Here are some tips on Successful Advertising Do you want to know more about the different types of advertising? You would also like to know about Cross cultural Advertising Enlighten yourself on Free Advertising The most important types of advertising appeals include emotional and rational appeals. Emotional appeals are often effective for the youth while rational appeals work well for products directed towards the older generation. Here are just some of the various different kinds of advertising appeals seen in the media today: Emotional Appeal An emotional appeal is related to an individual’s psychological and social needs for purchasing certain products and services. Many consumers are emotionally motivated or driven to make certain purchases. Advertisers aim to cash in on the emotional appeal and this works particularly well where there is not much difference between multiple product brands and its offerings. Emotional appeal includes personal and social aspects. 1. Personal Appeal Some personal emotions that can drive individuals to purchase products include safety, fear, love, humor, joy, happiness, sentiment, stimulation, pride, self esteem, pleasure, comfort, ambition, nostalgia etc. 2. Social Appeal Social factors cause people to make purchases and include such aspects as recognition, respect, involvement, affiliation, rejection, acceptance, status and approval. 3. Fear Appeal Fear is also an important factor that can have incredible influence on individuals. Fear is often used to good effect in advertising and marketing campaigns of beauty and health products including insurance. Advertising experts indicate that using moderate levels of fear in advertising can prove to be effective. Humor Appeal Humor is an element that is used in around 30% of the advertisements. Humor can be an excellent tool to catch the viewer’s attention and help in achieving instant recall which can work well for the sale of the product. Humor can be used effectively when it is related to some benefit that the customer can derive without which the joke might overpower the message. Sex Appeal Sex and nudity have always sold well. Sexuality, sexual suggestiveness, over sexuality or sensuality raises curiosity of the audience and can result in strong feelings about the advertisement. It can also result in the product appearing interesting. However use of sex in types of advertising appeals can have a boomerang effect if it is not used carefully. It can interfere with the actual message of the advertisement and purpose of the product and can also cause low brand recall. If this is used then it should be an integral part of the product and should not seem vulgar. The shift should be towards sensuality. Music Appeal Music can be used as types of advertising appeals as it has a certain intrinsic value and can help in increasing the persuasiveness of the advertisement. It can also help capture attention and increase customer recall. Scarcity Appeal Scarcity appeals are based on limited supplies or limited time period for purchase of products and are often used while employing promotional tools including sweepstakes, contests etc. Rational Appeal Rational appeals as the name suggests aims to focus on the individual’s functional, utilitarian or practical needs for particular products and services. Such appeals emphasize the characteristics and features of the product and the service and how it would be beneficial to own or use the particular brand. Print media is particularly well suited for rational appeals and is often used with good success. It is also suited for business to business advertisers and for products that are complex and that need high degree of attention and involvement. Masculine Feminine Appeal Used in cosmetic or beauty products and also clothing. This type of appeal aims at creating the impression of the perfect person. The message is that the product will infuse the perfection or the stated qualities in you. Brand Appeal This appeal is directed towards people who are brand conscious and wish to choose particular products to make a brand statement. Snob Appeal This appeal is directed towards creating feeling of desire or envy for products that are termed top of the line or that have considerable qualities of luxury, elegance associated with them. Adventure Appeal This appeal is directed towards giving the impression that purchasing a product will change the individual’s life radically and fill it with fun, adventure and action. Less than Perfect Appeal Advertisements often try to influence people to make certain purchases by pointing out their inadequacies or making them feel less perfect and more dissatisfied with their present condition. These types of advertising appeals are used in cosmetic and health industries. Romance Appeal These advertisements display the attraction between the sexes. The appeal is used to signify that buying certain products will have a positive impact on the opposite sex and improve your romantic or love life. Frangrances, automobiles and other products use these types of advertising appeals. Emotional Words/Sensitivity Appeal These advertisements are used to drive at and influence the sensitivities of consumers. Youth Appeal Advertisements that reflect youth giving aspects or ingredients of products use these types of appeals. Cosmetic products in particular make use of these appeals. Endorsement Celebrities and well known personalities often endorse certain products and their pitching can help drive the sales. Play on Words Advertisements also make effective use of catch phrases to convey the message. Such appeals help in brand recognition and recall and can be quite popular with the youth in particular. Statistics Advertisements also use statistics and figures to display aspects of the product and its popularity in particular. Plain Appeal These advertisements use every day aspects of life and appeal to ordinary people regarding the use of a product or service. Bandwagon Appeal This type of advertising appeal is meant to signify that since everybody is doing something you should be a part of the crowd as well. It appeals towards the popularity aspect or coolness aspect of a person using a particular product or service. SOCIAL EFFECTS OF ADVERTISING In recent times, the word 'Advertising' has become a fiercely mooted topic. Advertising has positive as well as negative, social and economic impacts on our society. Considering advertising as a public welfare is a positive social impact whereas exposing women as a sex tool comes at the negative side. As far as economic factors are concerned, funding for the media and stimulating an active and competitive economy, are the major examples. Assorted techniques are enforced for persuading consumers that they want the product which is being advertised. These techniques usually give attention to the benefits that would be brought to the consumers rather than focusing on the actual products. For instance, an automobile advertisement adverting the mechanical attributes of a vehicle, most likely concentrates the exhilaration, reputation and social progression it may bring to the buyer. This swarming advancement is habitually sexual, or involving the opposite gender to attract the consumers with the glamorous women/men's fancy car. There are various blames that advertising is causing a negative social impact on the lives. The chief unfavorable judgment for advertising is that it hales the public to buy things that they are not their real want. It is arrogated that advertising plays with emotions and encourages people to think that buying and depleting are the activities of life. According to advertisers, they state that people are capable enough to set their mind and no one can force them to buy anything which they dislike or which they think is not a necessity. Advertisers also think that there are positive impacts of advertising on our society and culture. For example, it can be used to generate awareness among the public that which product is OK or to which they should say NO. In other words, advertising also acts as an educator in the sense that it educates people what is good and what is bad for them and puts a ceiling on the harmful products like smoking and drinking etc. There are not only social benefits of advertising, but it also has some economic advantages. Without advertising, the media, including newspapers, television and radio would never be much strong. Advertising provides revenue for commercial mediums which would otherwise need to be funded by the actual consumer of these mediums. So, we can see a major economic infrastructure based around advertising, in which the big companies fund and subsidize the commercial media by the way of advertisements. The major economic negative aspect of advertising is that it boosts the price of goods and services. The source of this contention is that, when organizations subsidize the mass media with advertising, we, the purchaser, subsidize advertising by compensating a grossly increased price for heavily advertised goods and services. An easy example of this is that a box of Omo washing powder generally costs around two to three dollars while the market price of the product would be seven to eight dollars. The fact behind this is that the remaining proportion goes in heavy advertising in television and print media. So, the impact of advertising on our society is in a jumble form, depending on the functions and implementations of numerous campaigns. Our society and the marketing of products depend very badly upon advertising. The companies have become much dependent of advertising that even its negative impacts can never outweigh the many positive social and economic effects. ADVERTISING COPY Definition Text of a print, radio, or television advertising message that aims at catching and holding the interest of the prospective buyer, and at persuading him or her to make a purchase all within a few short seconds. The headline of an advertising copy is said to be the most important part, and quite often a small change in its wording brings disproportionate results. Although a short advertising copy is more common in consumer-product advertising, according to the UK advertising guru David Ogilvy (1911-1999) people do read (and listen or attend to) lengthy advertisements if they are skillfully written. Most advertising copy is based on advertising/consumer research and is composed by professional copywriters hired by advertising agencies. Also called advertisement copy, ad copy, or just copy. FEATURES OF A GOOD ADVERTISING COPY A successful marketing plan relies heavily on the pulling-power of advertising copy. Writing result-oriented ad copy is difficult, as it must appeal to, entice, and convince consumers to take action. There is no definitive formula to write perfect ad copy; it is based on a number of factors, including ad placement, demographic, even the consumer’s mood when they see your ad. So how is any writer supposed to pen a stunning piece of advertising copy -- copy that sizzles and sells? The following tips will jumpstart your creative thinking and help you write a better ad. All good advertising copy is comprised of the same basic elements. Good advertising copy always: Grabs Attention: Consumers are inundated with ads, so it’s vital that your ad catches the eye and immediately grabs interest. You could do this with a headline or slogan (such as VW’s “Drivers Wanted” campaign), color or layout (Target’s new colorful, simple ads are a testimony to this) or illustration (such as the Red Bull characters or Zoloft’s depressed ball and his ladybug friend). Promises Credible Benefit: To feel compelled by an ad, the consumer must stand to gain something; the product is often not enough. What would the consumer gain by using your product or service? This could be tangible, like a free gift; prestige, power or fame. But remember: you must be able to make good on that promise, so don’t offer anything unreasonable. Keeps Interest: Grabbing the consumer’s attention isn’t enough; you’ve got to be able to keep that attention for at least a few seconds. This is where your benefits come into play or a product description that sets your offer apart from the others Generates Action: This is the ultimate point of advertising copy -- it must make the reader react in some way. This doesn’t necessarily translate to buying the product immediately or using the service. Your ad could be a positioning tool to enable the reader to think about you in a certain light. Speak to your audience, or the audience you’d like to reach, and you’ll be surprised how frequently they come to you in the future. KNOW THE MEDIUM How you write your advertising copy will be heavily based on where you will place your ad. If it’s a billboard ad, you’ll need a super catchy headline and simple design due to the speed at which people will pass. Online ads are similar; consumers are so inundated with Internet advertising that yours must be quick and catchy. Magazine advertising is the most versatile, but this is solely dependent on the size of your ad and how many other ads compete with yours. If you’ve got a full page, feel free to experiment; more page space gives you more creative space. If the ad is tiny, you’ll need to keep things as simple as possible. KNOW THE STYLE Advertising copy is a unique type of writing. As the ad copywriter, your aim is to balance creativity and readability into something persuasive and entertaining. Keep the following points in mind when you write your copy: Be Succinct: Messy wordiness will completely destroy an ad campaign. Use short sentences with as many familiar words as possible; save the thesaurus for a thesis or dissertation. Always make sure to use precise phrasing (why use five adjectives when one good action verb would do?); and eliminate any redundancies, such as “little tiny” or “annual payments of $XXX per year.” Talk To Your Audience, Not At Them: Though you are announcing the availability of a product or service, avoid being clinical or overly formal. Write as if you’re talking to your ideal customer; use a style they’d use, words they’d be familiar with, slang they’d probably know. But be absolutely certain that you’re using these terms and phrases correctly. A recent McDonald’s campaign attempted to reach a certain audience by using the phrase “I’d hit it” in reference to a cheeseburger, unaware that the phrase is almost always used as a sexual reference. Avoid Clichés: It’s easy for writers new to advertising copy to fall into this trap, but it’s a trap that can severely damage the writing. Clichés fail to ignite the imagination; and consumers so numb to the phrases will often skip right past them, effectively ruining the succinct element of your ad. If you find yourself tempted to use a cliché, think about the message you want to convey with that cliché and try to rephrase it in a more imaginative, personal way. Always Proofread: It’s an obvious point, but you’d be surprised how many ads run in a magazine or on a billboard with an error of some sort. Go through your advertising copy carefully to make sure that every word is spelled correctly, the grammar is impeccable and the punctuation is dead on. Even the best ads can be ruined by a misplaced comma or dangling modifier. MAJOR ELEMENTS OF COPYWRITING Copy Elements The major elements of copy are briefly described below. All of them may not be necessary advertisements. The Headline The first and possibly the most important copy element is the headline. The headline of an advertisement will normally present a selling idea or will otherwise serve to involve the prospect in reading of the advertisement. Most advertisements have headlines of one sort or another and their primary function is to catch the eye of the reader. A headline may be set in big type or small. Headlines need not always contain special messages. Even a company or brand name could be used as a headline. The Sub head Sometimes important facts may have to be conveyed to the reader and it may require more space than what should be ideally used for the headline. In order to give prominence to such formation it can be put in smaller type than the headline, known as a subhead. All advertisements do not require subheads. Example: Mahindra Scorpio – the NFO Automotive 2003 Total Customer Satisfaction Study. Yet another high for Scorpio. The Body Copy The body copy refers to the text in the advertisement which contains details regarding the functions of the product/service and its benefits. Ogilvy recommends plunging in the subject matter straightaway without beating about the bush. The body copy can be short or long depending on how much information the company is willing to tell the reader. Captions Captions are the small units of type used with illustrations, coupons and special offers. These are generally less important than the main selling points of the advertisement in the body copy and are usually set in type sizes smaller than the text. Health Total – exciting new year offer last 6 days The Blurb A blurb or a balloon is a display arrangement where the words appear to be coming from the mouth of one of the characters illustrated in the advertisement. At times the complete body copy can be composed of blurbs, as in the case of comic strips. DIT – speech bubble having the text “ Sunoji, today is the last date for payment of Advance Tax…… Sunti ho” Boxes and Panels Boxes or panels are, in fact, captions placed in special display positions so as to get greater attention. A box is a caption that has been lined on all sides and singled out from the rest of the copy. A panel is a solid rectangle in the centre of which the caption is placed either in white or centered in the white space. Boxes and panels are generally used in advertisements containing features such as coupons, special offers and consumer contests. Slogans, Logo Types and Signatures A slogan may refer, for instance, to the age of the advertiser’s firm, meant for inclusion in every advertisement. A symbol of the company name, seal or trademark is called logotype and is a typical feature of most advertisements. It is also referred to as signature, indicating identification of the company or the brand. A logotype is an important aid in quick recognition of an advertisement and in creating familiarity for the audience. Add a strapline A ‘strapline’ or ‘tag line’ usually appears underneath the logo. The strapline summarizes the product’s benefits in a memorable way. Put the same strapline at the bottom of the ad, on point-of-sale material and on brochures, and you link all the different promotional elements together. Writing a strapline is like writing a headline. You sit down and produce fifteen or more short lines (each two to five words long). Occasionally, a strapline becomes a national saying, but people usually forget which brand it was attached to. Strap lines often make good headlines because they summarize a major benefit in a pithy way. Similarly, discarded headlines often make good straplines, though they may have to be shortened. BPL – Believe in the Best UNIT III Advertising layout- functions-design of layout-typography printing process- lithography printing plates and reproduction paper, and cloth- size of advertising- repeat advertising campaign- steps in campaign planning. Advertising layout An advertisement layout can be defined as the systematic design of size, color scheme, graphics, object and text placement to send intended message to the target audience. Advertising Layout Strategy Proportional guideline: 1. Illustration 65 % 2. Headline 10 % 3. Copy 20 % 4. Logo 5 % 100 % of space allocation (20%+ white space) Illustration In most ads, the illustration is used to attract attention. Large, single illustrations attracted the most attention (advertising recall studies by Starch). Though the headline may be the "stopper", the illustration is the most critical element in the ad's success. It can also visually communicate product benefits and concept, and lead the reader into the headline and copy. Headline The headline is used to attract attention, arouse interest, and make the ad more attractive and readable. However, it should not be over 10 words and more than 15 % of the ad's total area. Copy Style of typeface used in the headline, subhead and copy will impact the mood and readability of the ad. Mixed type should be either very similar or very different. Mixing more than two (or three at most) different typefaces makes an ad busy and confusing. Logo Because we read left to right and top to bottom, the logo or company signature can be strategically placed in the lower right hand corner of an ad. With this position, the logo is the last element we see and most likely remember. Direct the viewer's eye from the page's top, down through the center and end at the page's bottom. The eye sees the illustration first, then we read down from there (David Ogilvy). Headlines located below the illustration pull 10% more readers (research by Simmons). Emphasis The optical center of an ad is in the center and two-thirds up from the bottom. This should be the ad's focal point. Proportional use of space The proportional use of space in an ad is dependent upon the product and market target. Product ads that try to communicate an image (perfume, jewelry, etc.) will have a greater proportion of illustration and little copy. Conversely, an ad for a technical product will have more copy. White Space At least 20 % of an ad should be blank (white space). Ample white space helps gain attention, create contrast, and unify the ad. According to Albert Books, white space is probably the most underestimated element in advertisements. Bleed and borders Bleed A page without a border is called a bleed because the ink bleeds through the surrounding white border into the trim space. An obvious benefit of this technique is that the ad itself becomes larger. Although most publishers charge extra for bleeds, this cost is often justified by the ads extra impact. A bleed carries the implication of action, freedom and adventure and tends to make the ad more lifelike. In research by Fosdick, nearly half of all high readership ads used bleeds. Conversely, only 14% of low readership ads used this technique. Borders In contrast, borders set up continuity, structure, and formality. Borders can isolate the ad from surrounding copy and other ads -forcing you to focus on the ad. However, they tend to make the ad appear smaller. Advertising campaign An advertising campaign is a series of advertisement messages that share a single idea and theme which make up an integrated marketing communication (IMC). Advertising campaigns appear in different media across a specific time frame. The critical part of making an advertising campaign is determining a champion theme as it sets the tone for the individual advertisements and other forms of marketing communications that will be used. The campaign theme is the central message that will be communicated in the promotional activities. The campaign themes are usually developed with the intention of being used for a substantial period but many of them are short lived due to factors such as being ineffective or market conditions and/or competition in the marketplace and marketing mix. Effective Advertising Campaign The goal of advertising is to cost-effectively reach a large audience and attract customers. If done correctly, advertising can enhance the success of your business. Here are 10 advertising tips to pay attention to: 1. Go after your target audience. An advertising campaign should be geared to your niche market. It is a common mistake to create generic ads that do not speak the language or grab the attention of your potential customers. For more information, read How to Identify and Reach Niche Markets for Your Business. 2. Highlight your competitive advantage. One of the keys to all advertising is to accentuate the pros of your company, those factors that give you your competitive edge. Too many ads are clever but fail to sell the benefits of the product or service. 3. Establish an image. You can recognize the McDonald's arches while whizzing by on the highway. Likewise, there are plenty of products that you recognize by their packaging or logo. Image counts when it comes to advertising and promoting your business. Too many advertisers do not work to build a consistent image. Check out Three Brand Identity Myths That Will Bring Your Business Down for additional issues to avoid. 4. You have to spend money to make money. There are ways to save money, but typically advertising is not the place to cut corners. It will affect sales, and that affects the bottom line. Successful advertising may cost some money, but that is because it works. Check out More Bang for Your Advertising Buck for cost-cutting tips that won't cut your goals. 5. Advertise in the right places. Your favorite magazine, radio station, or even television program might not be a favorite of your audience. Know what they read, watch, and listen to, and advertise in media that reaches your target market. 6. Don't allow your budget to run your advertising campaign. If you budget $5,000 per month for advertising, you've made it very easy from a bookkeeping perspective. However, if like most businesses you have seasonal highs and lows, you are spending too much money advertising during down times and not enough when you want to attract customers. Too many entrepreneurs do not budget according to their seasonal advertising needs. 7. Diversify. It is all too common for business owners to choose the best place to advertise based on price and potential rate of returns and then stop. As is the case with investing, you do not want to put all of your eggs in one basket. Spread your advertising dollars around. 8. Don't try to be everything to everyone. No product or service will appeal to everyone. Many business owners, including corporate executives, try to come up with ways to reach every market. Typically, this does not work. It can spell disaster for small businesses, who cannot afford to spread themselves too thin. Therefore, find your market and be everything you can be to that audience. 9. Test your ads in advance. If you have the time or money to invest in focus groups, you should test your ads on other people. Do they understand and accept the message that you are trying to convey? For further information, read Focus Groups: How They Can Work for Your Small Business. There are other less-expensive ways to test your ads as well: questionnaires, for example. The article Creating Questionnaires for Gathering Market Research can be helpful. 10.Monitor your ads. It is very easy to ask new customers or clients where they heard about you. As simple as this is, many entrepreneurs do not bother to do so. It is advantageous to know which ads generate business. SEVEN BASIC STEPS IN PLANNING THE AD CAMPAIGN 1. Appraise your advertising opportunity: - Is there a favorable primary-demand for the product? Are people willing and able to purchase my product at a price that will return me a reasonable profit? - Are there opportunities for product differentiation? - Can I identify any hidden qualities which might serve as the focal point of an ad campaign? - Are there any powerful emotional buying motives attached to my product? - What proportion of the people can afford to buy my product and can I reach them with ads and product? 2. Analyze your market: - Do I have sufficient information to define closely the target market? - Am I aware of the factors of that affect demand for my product? - What do I suspect will be the competitive response to my ad campaign? - Are there any legal constraints surrounding my advertising certain products or services? - Can I afford advertising? If so, how much is appropriate considering my market situation? - Do I have the capabilities to produce sufficient volumes of my product if sales increase dramatically because of advertising? 3. Determine your advertising objectives -- should contain: - What is the basic message I want delivered? - Who is the audience I want reached? - What do I want to happen because of the ad campaign? - What are the specific criteria which will be used to measure the success or failure of the campaign after it is completed? 4. Establish you budget and the necessary control systems: - What kind of balance between reach, frequency, and continuity will be most effective? **reach: total number of different people or households to whom your message is delivered; **frequency: number of times your message is delivered within a given period of time; **continuity: length of time your media schedule will run 5. Develop your strategy: - Which media will deliver the most effective advertising messages to the greatest number of prospects at the lowest possible cost? - What kind of message should be created? To answer this consider the following: 1) What business goals do you want to accomplish? 2) What kind of people do you now sell to? What kind of people should you be selling to? 3) How do people in your target market currently think, feel, and believe about your product, your company, and your competition? 4) What do you want these people to feel, think, and do? 5) What key thought can you put into these peoples' minds to make them think, feel, believe, or do what you would like? 6) What tone of voice will get those people to hear and believe you? - What is the basic theme that needs to be included as it appears, at least by implication, in all your ads and publicity. 6. Coordinate advertising with other promotional and marketing methods: - What other types of advertising and marketing efforts am I currently involved in? - How will these other activities affect my ad campaign? 7. Evaluate advertising results: - Have I done adequate pretesting before investing substantial money in a major campaign? - What criteria will I use to judge the effectiveness of my advertising expenditures after the campaign is completed? - What have I learned that will help insure that future campaigns will be more effective? UNIT V Sales Promotion Suppose you go to the market to buy soap. The shopkeeper suggests that if you buy two soap cakes, an extra soap cake will be given to you free of cost under “buy 2 get 3” scheme. You feel attracted to buy as by doing so you are saving money on one soap. Moreover, soap is an item which is required on a regular basis, and so you can keep the extra two cakes to be used later. This is an approach of increasing sale of a product and it is quite different from what you have learnt in the earlier two lessons. Let us learn more about it in this lesson. Objectives After studying this lesson, you will be able to: �� �� �� �� he role of each tool in promoting sales; and �� Meaning of Sales Promotion Every businessman wants to increase the sale of goods that he deals in. He can adopt several ways for that purpose. You might have heard about “lakhpati bano”, “win a tour to Singapore”, “30% extra in a pack of one kg”, “scratch the card and win a prize” etc. You might also have seen gifts like lunch box, pencil box, pen, shampoo pouch etc. offered free with some products. There are also exchange offers, like in exchange of existing model of television you can get a new model at a reduced price. You may have also observed in your neighbouring markets notices of “winter sale”, “summer sale”, “trade fairs”, “discount upto 50%” and many other schemes to attract customers to buy certain products. All these are incentives offered by manufacturers or dealers to increase the sale of their goods. These incentives may be in the form of free samples, gifts, discount coupons, demonstrations, shows, contests etc. All these measures normally motivate the customers to buy more and thus, it increases sales of the product. This approach of selling goods is known as “Sales Promotion”. Personal selling involves face-to-face contact with specific individuals, while advertising is directed towards a large number of potential customers. They also help in increasing sales of goods. Thus, advertising can be used as means of communication to inform potential customers about the incentives offered for sales promotion. Personal selling can as well include communication of the incentives to individual customers. But, sales promotion differs from advertising and personal selling in terms of its approach and technique. Sales promotion adopts short term, non-recurring methods to boost up sales in different ways. These offers are not available to the customers throughout the year. During festivals, end of the seasons, year ending and some other occasions these schemes are generally found in the market. Thus, sales promotion consists of all activities other than advertising and personal selling that help to increase sales of a particular commodity. Questions Answer the following in the space provided after each question. a) What is meant by ‘Sales Promotion’? b) How can advertising help sales promotion? Objectives of Sales Promotion You have learnt that the main objective of sales promotion is to increase sales. However, there are also some other objectives of sales promotion. The objectives are: i. To introduce new products ii. To attract new customers and retain the existing ones iii. To maintain sales of seasonal products iv.To meet the challenge of competition Let us learn about these objectives in details . (i) To introduce new products: Have you ever heard about distribution of free samples? Perhaps you know that many companies distribute free samples while introducing new products. The consumers after using these free samples may develop a taste for it and buy the products later for consumption. (ii) To attract new customers and retain the existing ones: Sales promotion measures help to attract or create new customers for the products. While moving in the market, customers are generally attracted towards the product that offers discount, gift, prize, etc on buying. These are some of the tools used to encourage the customers to buy the goods. Thus, it helps to retain the existing customers, and at the same time it also attracts some new customers to buy the product. (iii) To maintain sales of seasonal products: There are some products like air conditioner, fan, refrigerator, cooler, winter clothes, room heater, sunscreen lotion, glycerin soap etc., which are used only in particular seasons. To maintain the sale of these types of products normally the manufactures and dealers give off-season discount. For example, you can buy air conditioner in winter at a reduced price. Similarly you may get discount on winter clothes during summer. (iv) To meet the challenge of competition: Today’s business faces competition all the time. New products frequently come to the market and at the same time improvement also takes place. So sales promotion measures have become essential to retain the market share of the seller or producer in the product-market. Questions a. Which of the following statements are true and which are false? b. Discount on price is allowed only for those products of which sales tend to decline. C . Sales promotion schemes are announced only when new products frequently come in the market. d. Free samples are distributed to induce customers to try out new products. e. Customers want to buy air-conditioners in summer to get the benefit of off- season discount. e. Sales promotion helps to retain existing customers as well as create new ones. Business Studies Tools of Sales Promotion To increase the sale of any product manufactures or producers adopt different measures like sample, gift, bonus, and many more. These are known as tools or techniques or methods of sales promotion. Let us know more about some of the commonly used tools of sales promotion. (i) Free samples: You might have received free samples of shampoo, washing powder, coffee powder, etc. while purchasing various items from the market. Sometimes these free samples are also distributed by the shopkeeper even without purhasing any item from his shop. These are distributed to attract consumers to try out a new product and thereby create new customers. Some businessmen distribute samples among selected persons in order to popularize the product. For example, in the case of medicine free samples are distributed among physicians, in the case of textbooks, specimen copies are distributed among teachers. (ii) Premium or Bonus offer: A milk shaker along with Nescafe, mug with Bournvita, tooth brush with 500 grams of toothpaste, 30% extra in a pack of one kg. are the examples of premium or bonus given free with the purchase of a product. They are effective in inducing consumers to buy a particular product. This is also useful for encouraging and rewarding existing customers. (iii) Exchange schemes: It refers to offering exchange of old product for a new product at a price less than the original price of the product. This is useful for drawing attention to product improvement. ‘Bring your old mixer-cum-juicer and exchange it for a new one just by paying Rs.500’ or ‘exchange your black and white television with a colour television’ are various popular examples of exchange scheme. (iv) Price-off offer: Under this offer, products are sold at a price lower than the original price. ‘Rs. 2 off on purchase of a lifebouy soap, Rs. 15 off on a pack of 250 grams of Taj Mahal tea, Rs. 1000 off on cooler’ etc. are some of the common schemes. This type of scheme is designed to boost up sales in off-season and sometimes while introducing a new product in the market. (v) Coupons: Sometimes, coupons are issued by manufacturers either in the packet of a product or through an advertisement printed in the newspaper or magazine or through mail. These coupons can be presented to the retailer while buying the product. The holder of the coupon gets the product at a discount. For example, you might have come across coupons like, ‘show this and get Rs. 15 off on purchase of 5 kg. of Annapurna Atta’. The reduced price under this scheme attracts the attention of the prospective customers towards new or improved products. (vi) Fairs and Exhibitions: Fairs and exhibitions may be organised at local, regional, national or international level to introduce new products, demonstrate the products and to explain special features and usefulness of the products. Goods are displayed and demonstrated and their sale is also conducted at a reasonable discount. ‘International Trade Fair’ in New Sales Promotion Delhi at Pragati Maidan, which is held from 14th to 27th November every year, is a wellknown example of Fairs and Exhibitions as a tool of sales promotion. (vii) Trading stamps: In case of some specific products trading stamps are distributed among the customers according to the value of their purchase. The customers are required to collect these stamps of sufficient value within a particular period in order to avail of some benefits. This tool induces customers to buy that product more frequently to collect the stamps of required value. (viii) Scratch and win offer: To induce the customer to buy a particular product ‘scratch and win’ scheme is also offered. Under this scheme a customer scratch a specific marked area on the package of the product and gets the benefit according to the message written there. In this way customers may get some item free as mentioned on the marked area or may avail of price-off, or sometimes visit different places on special tour arranged by the manufacturers. (ix) Money Back offer: Under this scheme customers are given assurance that full value of the product will be returned to them if they are not satisfied after using the product. This creates confidence among the customers with regard to the quality of the product. This technique is particularly useful while introducing new products in the market. Questions A. Match the tools/techniques with their objectives. Tools / Techniques Objectives 1. Free Samples (a) To induce customers to buy a product more frequently. 2. Exchange Schemes (b) Useful for drawing attention towards product improvement. 3. Price-off offer (c) When a new product is to be introduced 4. Trading stamps (d) To boost up sales in off-season. Importance of Sales Promotion The business world today is a world of competition. A business cannot survive if its products do not sell in the market. Thus, all marketing activities are undertaken to increase sales. Producers may spend a lot on advertising and personal selling. Still the product may not sell. So incentives Business Studies need to be offered to attract customers to buy the product. Thus, sales promotion is important to increase the sale of any product. Let us discuss the importance of sales promotion from the point of view of manufacturers and consumers. From the point of view of manufacturers Sales promotion is important for manufacturers because i. it helps to increase sales in a competitive market and thus, increases profits; ii. it helps to introduce new products in the market by drawing the attention of potential customers; iii. when a new product is introduced or there is a change of fashion or taste of consumers, existing stocks can be quickly disposed off; iv. it stabilizes sales volume by keeping its customers with them. In the age of competition it is quite much possible that a customer may change his/her mind and try other brands. Various incentives under sales promotion schemes help to retain the customers. From the point of view of consumers Sales promotion is important for consumers because i. the consumer gets the product at a cheaper rate; ii. it gives financial benefit to the customers by way of providing prizes and sending them to visit different places; iii. the consumer gets all information about the quality, features and uses of different products; iv. certain schemes like money back offer creates confidence in the mind of customers about the quality of goods; and v. it helps to raise the standard of living of people. By exchanging their old items they can use latest items available in the market. Use of such goods improves their image in society. Questions Given below are some statements, which are wrong. Correct them in the space provided below each. a. “Money back offer” helps customers to improve their status in the society and so it is important to them. b. Existing stock can be quickly disposed off by sales promotion when dealers want to compete in the market and that is why it is important to them. c. The importance of sales promotion is appreciated by consumers because they cannot change over to new brand of goods. d. Dealers consider sales promotion to be important because it involves cheaper rates being offered to customers. e. For consumers sales promotion has no importance even if it provides information about improvement in quality of goods because that does not bring monetary benefit. Exercise 1. Define Sales Promotion. 2. State the importance of Sales Promotion from the point of view of manufacturers. 3. State the importance of Sales Promotion from the point of view of consumers. 4. List any six tools used in Sales Promotion 5. State the objectives of Sales Promotion 6. Explain the meaning of ‘Sales Promotion’. Why is Sales Promotion necessary? 7. Explain any two techniques of Sales Promotion, with example. 8. State any two objectives of Sales Promotion. 9. Explain – “Price off offer” and “Free-Samples” as techniques of Sales Promotion. 10. Explain how Sales Promotion techniques help in promoting sales. 11. A toothpaste company is giving 250 grams toothpaste free with a pack of 500 gm toothpaste. Name this technique of sales promotion. What is the specific objective of this scheme? Explain two more schemes of Sales Promotion other than this. 12. ‘To introduce new products, to create new customers and retain the existing ones, to remain competitive’ are the objectives of Sales promotion. Explain how? 13. Define Sales Promotion. What are the objectives of Sales Promotion? 14. Explain the term ‘Sales Promotion’. Discuss any four techniques of Sales Promotion? 15. ‘Sales Promotion is important both for manufacturer and consumers’. Explain how? Personal selling When you want to buy something you usually go to a concerned shop and purchase it from there.But, sometimes you find people bring certain goods or products and make them available to you at your place. For example, you find persons selling vegetables or rice by carrying the same in a cart and moving from door to door to sell. You must have noticed persons selling sarees, carpets, electronic items, etc. in a similar fashion. While traveling in buses or local trains you must also have seen people selling pens, toys, books, combs, etc. inside the bus or train. In cities also persons move from door to door to sell different products like water purifiers, air purifiers, detergents, mosquito repellents, etc. Don’t you think these are different methods of selling goodsunlike keeping them in a shop and sell? In this lesson let us learn more about these types of selling. Objectives After studying this lesson, you will be able to: �� State the meaning of personal selling; �� explain the essential elements of personal selling; �� describe the importance of personal selling; and �� identify the qualities of a successful salesman. 22.2 Meaning of Personal Selling Think about the persons who come to you to sell goods and commodities. What do they do? They show certain variety of goods to you, try to explain the features of the products, if required demonstrate the functioning of the items, inform you about the price concession available, persuade you to buy the product and also in some cases promises you to bring certain items of your choice in future. So not only do they inform and explain to you about the product but also persuade you to buy those items and want you to buy from them in future also. On the other hand, you also gather more information about the product, see and handle it personally to judge it better. The person who sells goods to you in this way is called a ‘salesman’ and the technique of selling is known as ‘personal selling’ or ‘salesmanship’. Thus, personal selling refers to the presentation of goods before the potential buyers and persuading them to purchase it. It involves face-to-face interaction and physical verification of the goods to be purchased. The objective is not only just to sell the product to a person but also to make him/her a permanent customer. You can also find personal selling in some shops where salesmen are employed by the shopkeeper to use this technique. For example, you can find such salesmen in jewellery stores, consumer goods stores, saree houses, etc. In case of some services, we also find personal selling used in shops. For example, we find people going to the same barbershop to cut their hair and get a massage from a specific barber. This shows that in case of personal selling the seller usually come to know about the taster and preferences of the customer and thus attracts him to buy the goods or services. Personal selling refers to the presentation of goods and services before the customers and convincing or persuading them to buy the products or services. After having an idea about personal selling, let us know about some of the essential elements of personal selling. Essential elements of Personal Selling Personal selling consists of the following elements: i. Face-to-Face interaction: Personal selling involves a salesmen having face-to-face interaction with the prospective buyers. ii. Persuasion: Personal selling requires persuasion on the part of the seller to the prospective customers to buy the product. So a salesman must have the ability to convince the customers so that an interest may be created in the mind of the customers to use that product. iii. Flexibility: The approach of personal selling is always flexible. Sometimes salesman may explain the features and benefits of the product, sometimes give demonstration of the use of product and also faces number of queries from the customers. Looking into the situation and interest of the customers, the approach of the salesman is decided instantly. iv. Promotion of sales: The ultimate objective of personal selling is to promote sales by convincing more and more customers to use the product. v. Supply of Information: Personal selling provides various information to the customers regarding availability of the product, special features, uses and utility of the products. So it is an educative process. vi. Mutual Benefit: It is a two-way process. Both seller and buyer derive benefit from it. While customers feel satisfied with the goods, the seller enjoys the profits. Questions Fill in the blanks with appropriate words. i Personal selling involves persuading _________ to buy the goods ii. The ultimate objective of personal selling is ________. iii. The most important element of personal selling is ________ interaction. iv. Supply of information to customers makes personal selling an ______ process. Importance of Personal Selling Personal Selling is extremely important as it helps in increasing sales. But there are other features as well which make it important. Let us discuss the importance of personal selling from the point of view of manufactures as well as consumers. From manufacturer’s point of view i. It creates demand for products both new as well as existing ones. ii. It creates new customers and, thus help in expanding the market for the product. iii. It leads to product improvement. While selling personally the seller gets acquainted with the choice and demands of customers and makes suggestions accordingly to the manufacturer. From customer’s point of view i. Personal selling provides an opportunity to the consumers to know about new products introduced in the market. Thus, it informs and educates the consumers about new products. ii. It is because of personal selling that customers come to know about the use of new products in the market. The sellers demonstrate the product before the prospective buyers and explain the use and utility of the products. iii. Personal selling also guides customers in selecting goods best suited to their requirements and tastes as it involves face-to-face communication. iv. Personal selling gives an opportunity to the customers to put forward their complaints and difficulties in using the product and get the solution immediately. Questions Which of the following statements are true and which are false? i. Personal selling helps manufacturers to improve their products based on suggestions made by sellers. ii. Customers do not have immediate solution of their problems regarding a product from the salesman. iii. Personal selling leads to creation of new customers only for the existing products. iv. Better use of product is not the result of personal selling. v. Customers can not make complaint to the salesman about a product. Qualities of salesperson engaged in Personal Selling It is very difficult to enlist the qualities of people engaged in personal selling. The quality will vary from time to time and from situation to situation. It also depends upon the customers’ demand and nature of the product. Again a salesman may be effective in one situation but may fail in another situation. So in real life certain qualities may be suitable for a particular line of product and may be irrelevant in any other case. However, there are certain common qualities, which every salesman should possess in order to become successful in their life. These qualities are listed below. i. Physical Quality ii. Mental Quality iii. Integrity of character iv. Knowledge of the product and the company v. Good behaviour vi. Ability to persuade Now let us discuss the above qualities in detail. i. Physical quality: A salesman should have a good appearance and an impressive personality.He should also have a sound health. ii. Mental quality: A good salesman should posses certain mental qualities like imagination, initiative, self-confidence, sharp memory, alertness etc. He should be able to understand the needs and preferences of customers. iii. Integrity of character: A good salesman should posses the qualities of honesty and integrity.He is to gain the confidence of the customers. He should be able to understand their needs and guide them how to satisfy those needs. His employer too should have faith in him. A salesman should be loyal both to the employer and to the customers. iv. Knowledge of the product and the company: A salesman should have full knowledge of the product and the company he is representing. He should be able to explain each and every aspect of the product i.e. its qualities, how to use it, what precautions to be taken, etc. He should be able to explain the business and service record of the company. He should also have knowledge of products of rival companies. So that he can put across the superiority of his own products. v. Good behaviour : A salesman should be co-operative and courteous. Good behavior enables one to win the confidence of the customers. He should not feel irritated if the buyer puts up many questions even if the questions are irrelevant. It is also not necessary that the person he is trying to convince buys the product. The salesman has to remain and courteous in every case. vi. Ability to persuade: A good salesman should be good in conversation so that he can engage the person he is attending in conversation. He should be able to convince him and create the desire in his mind to posses the commodity. Questions State whether the following statement are ‘true’ and which are ‘false: (i) Knowledge of product is not necessary to make one a good salesman. (ii) A good salesman should have imagination, initiative and alertness. (iii) It is not necessary for a good salesman that he must be accepted by the society. (iv) A good salesman should be loyal to the consumer but not to the employer. (v) Impressive voice, good appearance and sound health has no place in qualities of a good salesman. Exercise 1. What is meant by personal selling? 2. State the essential elements of personal selling. 3. Describe the importance of personal selling form the point of customers. 4. Explain the importance of personal selling from the point of view of manufacturers. 5. State the physical and mental qualities of sales persons engaged in personal selling. 6. State the social qualities of sales persons engaged in personal selling. 7. What are the occupational qualities of salespersons engaged in personal selling? 8. Define personal selling. Explain the importance of personal selling from the point of view of customers and manufacturers. 9. What is meant by personal selling? Explain the essential elements of personal selling. 10. Do you think that to be a successful salesperson only personal and mental qualities are sufficient? Give reasons in support of your answer. 11. Describe the different qualities of sales persons engaged in personal selling. 12. A salesman need not possess any quality if the product is good. Do you agree with the statement? Give reason. Promotional Strategies This could also be referred to as guerilla marketing, which involves getting conventional profits from unconventional methods. Be creative and don’t be afraid on new ideas. A lis to get you started! How much farther you go is up to you. • Advertise in the classified advertising section of your community newspaper. • Advertise in the Yellow Pages. • Advertise on a grocery buggy or bag. • Approach your prospective customers over the phone, in person or by mail. • Be a guest speaker at seminars and present on your area of expertise. • Be a guest speaker on radio talk shows. • Build and maintain a customer mailing and contact list on database software. • Build your image with well designed letterhead and business cards. • Design a brochure that best explains the benefits of your services. • Design a mail order campaign. • Design a point of purchase display for your product. • Design a telemarketing campaign. • Design an image building logo for your company. • Design and distribute a quarterly newsletter or an industry update announcement. • Design and distribute company calendars, mugs, pens, note pads, or other advertising specialties displaying your company name and logo. • Design and distribute a free "how to do it" hand-out related to your industry (e.g. Tips for conserving energy in your home). • Design T-shirts displaying your company name and logo. • Explore cross promotion with a non-competing company selling to your target market. • Explore the costs of advertising in newspapers, magazines, on radio, television, billboards, bus shelters and benches. Refer to the publication "Canadian Advertising Rates and Data" (CARD) for some of this information. • Explore ways to share your advertising costs using cooperative advertising. • Follow up customer purchases with a thank you letter, Christmas or birthday cards. Promotional Strategies • Have your company profiled in a magazine or newspaper that is read by prospective customers. • Hire an advertising agency or public relations firm. • Hold a promotional contest. • Hold a seminar on your service, product or industry. • Include promotional material with your invoices. • Look for prospective customers at trade shows related to your industry. • Look for prospective customers in associations & at seminars related to your industry. • Look for prospective customers in magazines and newspapers related to your industry. • Package your brochure, price lists and letter in a folder for your customers. • Place a sidewalk sign outside your store or office. • Place flyers on bulletin boards and car windshields. • Place promotional notes on your envelopes, mailing labels. • Place signs or paint logos on your company vehicle(s). • Prepare a corporate video. • Prepare a list of product features and benefits to help you plan your advertising and promotional campaigns. • Prepare proposals offering solutions to your customers' needs • Provide free samples of your product or service. • Have an open house at your business • Join the Chamber of Commerce • Become a sponsor of a community event. • Sponsor a community sports team. • Have a folded business card made up. On the front, place a catchy slogan. On the inside, list your product or service and how you provide it. On the other side, offer contact information. For More Information Internet: www.smallbusinessbc.ca www.gmarketing.com SALESMANSHIP 1. INTRODUCTION Selling is one of the most important marketing activities in most organizations. The scope for selling has increase substantially during the past few decades due to growth in the trade and industry. Persuasive selling skills are being used not only by organizations whose objective is to earn profit but also by non-profit organizations because of this varied nature of the selling jobs professional selling has developed into a specialized area of management. Recognizing its scope significance and importance specialized salesmanship course is designed. 2. OBJECTIVES To train the students as a competent Salesman and Sales Assistant. 1. Identifying customers and their needs 2. Marketing sales presentation and organizing demonstration 3. Computer basics and needs and used in selling techniques Specific Objectives 1. Receiving and attending customers 2. Handling customer objections 3. Use of Selling Aids 4. Collecting data for Marketing Intelligence 5. Use of Computers Skills to be provided • Receiving and attending customers • Identifying and determining customer needs • Displaying and demonstration methods • Making Sales Promotion • Handling credit and collection • Salesmanship • Knowledge of Sales Promotion Schemes • Analyse customer motivation and behaviour • Ability to communicate effectively • Ability to listen and understand customers location merchandise • Ability to demonstrate the practice use of products • Ability to explain and demonstrate the products • Skill in assessing customers preference • Skill of displaying goods • Skill in packing the products The 3 types of salesman A few years ago, the University of Houston did a study of salesmen. They looked at thousands of people who had been working in sales for 3 years or longer and they found that these salespeople could be divided into 3 different psychological profiles. The three types and their strengths and weaknesses are: (1) Engager – a people person whose key value is to be liked. Strengths: meets and greets well – seems to have no fear – is great at opening new contacts – good at cold calling. Weaknesses: has follow-up reluctance – focuses on immediate response. (2) Assurer – expert type whose key value is to be respected. Strengths: great at answering questions – knows all the details – can develop existing client relationships. Weaknesses: can’t take rejection – doesn’t want to cold call – doesn’t like to close. (3) Compeller – hard closer, competitive, key value is “winning”. Strengths: gets the money – closes the deal. Weaknesses: lacks patience – has a tendency to cherry-pick leads and throw the rest away. In the real world, many salespeople are a hybrid of two or three of these profiles, but the vast majority lean towards one of the three. In the University of Houston survey, the split between the groups was: Engagers: 20% Assurers: 70% Compellers: 10% This means, if you take a sales team, the majority of the team will be assurers. Or, to put in another way, the majority of the team won’t enjoy prospecting or cold calling and they won’t like to close. And, if you’ve got a sales team that doesn’t like to prospect and doesn’t like to close, you’ve got problems. With a sales team like that, one of the simplest ways to increase sales is to break down the sales process so the sales people are working in the areas where they’re strongest. Take your engagers and have them do all the cold calling to set up appointments. Send them to the networking events and trade shows. Then let your assurers take over. They can tell the prospect all about the product and, although they don’t close very well, you’ll find that some of the prospects will close them. And those prospects that don’t close with the assurer can be passed to the compeller to have a final go. You should find that, just by working to your team’s strengths rather than having everyone do everything, this will create an immediate and significant increase in sales. Packaging Packaging refers to the container or wrapper that holds a product or group of products. Most commercial packaging serves two basic functions: protecting the product from damage during shipping, and promoting the product to the ultimate consumer. Some common types of packaging include shipping cartons, containers for industrial goods, and bags, boxes, cans, and other holders for consumer products. Packaging is of great importance to both sellers and buyers of products. It can prevent spoiling, breakage, tampering, or theft; enhance convenience in use or storage; and make products easier to identify. A significant improvement in packaging can even create a "new" product by expanding the ways in which it can be used, and thus its potential markets. For example, a soup that is packaged in a microwavable bowl might suddenly increase its sales to working people. Prior to World War II, packaging was used primarily to surround and protect products during storage, transportation, and distribution. Some packages were designed with aesthetic appeal and even for ease-of-use by the end consumer, but package design was typically left to technicians. After World War II, however, companies became more interested in marketing and promotion as a means of enticing customers to purchase their products. As a result, more manufacturers began to view packaging as an integral element of overall business marketing strategies to lure buyers. This increased attention to packaging coincided with socioeconomic changes taking place around the world. As consumers became better educated and more affluent, their expectations of products—and their reliance on them—increased as well. Consequently, consumers began to rely much more heavily on manufactured goods and processed food items. New technologies related to production, distribution, and preservatives led to a massive proliferation in the number and type of products and brands available in industrialized nations. Thus, packaging became a vital means of differentiating items and informing inundated consumers. The importance of consumer packaging was elevated in the United States during the late 1970s and 1980s. Rapid post-war economic expansion and market growth waned during that period, forcing companies to focus increasingly on luring consumers to their product or brand at the expense of the competition. Package design became a marketing science. And, as a new corporate cost-consciousness developed in response to increased competition, companies began to alter packaging techniques as a way to cut production, storage, and distribution expenses. Furthermore, marketers began to view packaging as a tool to exploit existing product lines by adding new items and to pump new life into maturing products. Today, good package design is regarded as an essential part of successful business practice. Since many potential customers first notice a new product after it has arrived on the shelves of a store, it is vital that the packaging provide consumers with the information they need and motivate them to make a purchase. But packaging decisions involve a number of tradeoffs. While making a product visible and distinctive may be the top priority, for example, businesses must also comply with a variety of laws regarding product labeling and safety. Protecting products during transport is important, but businesses also need to keep their shipping costs as low as possible. The following provides an overview of some of the factors to consider in packaging products for consumer markets. Package Design Consumer packaging serves to contain and communicate. A product's "packaging mix" is the result of several requirements that determine how a package accomplishes those two basic functions. Robert D. Hisrich identified eight major package requirements that dictate the mix. A package must: protect the product, be adaptable to production-line speeds, promote or sell the item, increase the product's density, help the consumer use the product, provide reusable value to the user, satisfy legal requirements, and keep packaging-related expenses low. Two classes of package design criteria are functional requirements and sales requirements. FUNCTIONAL REQUIREMENTS. Package design must meet five groups of functional criteria: in-home, instore (or warehouse), production, distribution and safety, and legal. In-home requirements usually dictate that packaging be convenient to use and store, remind users when and what to repurchase, reinforce consumers' expectations of the product, and tell them how to safely and effectively use the product. In addition, increasing numbers of consumers expect packaging to be recyclable and environmentally sensitive. In-store criteria require that packaging attract attention on the shelf, instill confidence in the buyer, identify the product or brand and differentiate it from the competition, communicate benefits and uses, and entice customers to actually purchase the item. The product must also be easy for retailers to store and stock on the shelves or the floor, and simple to process at a check- out counter or other final point of distribution. For instance, packaging that is oddly shaped and takes up a large amount of space may draw attention, but it may also be shunned by mail-order sellers concerned about shipping costs or by space-conscious store retailers. Production demands, the third group of functional criteria influencing packaging, are primarily based on cost. A designer may create a fantastic package that would perform excellently in the marketplace, but if the company cannot find a way to produce the package cost-effectively, the design is useless. Among the most important considerations in this realm is production line speed. If a container is too long, wide, or short, it could significantly slow the speed of the production machines. Similarly, if the top or spout of a container is too small or is oddly shaped, the product may not flow easily into the package. Packaging considerations related to distribution and safety are important and numerous. If an unacceptable portion of the goods are damaged during storage, transportation, or distribution, the package has failed. Likewise, if the package injures the user, future sales could be lost or the company could be liable for damages. As a result, packaging engineers face numerous technical considerations that have a residual impact on the final look and feel of the package. For instance, packages must be able to withstand the pressure of several other crates stored on top of them. They must also be able to resist moisture, adapt to temperature changes, and withstand rough handling. From a cost standpoint, packages must also be designed to suit standardized transportation requirements related to weight, size, and durability. Finally, they should be designed so that the bar code on the package is easily scanned. Furthermore, packages should ideally be designed to handle normal use by consumers. Examples of packages that may result in harm to consumers include: those with sharp edges, such as some pull-top canisters; glass containers; and heavy item boxes which might break when the consumer is carrying them or cause strain or injury to the consumer when picked up or set down. The fifth basic group of functional packaging requirements relate to laws and legislation. Various federal laws have been passed to protect consumers from misrepresentation and unsafe products. For instance, some laws require that potentially dangerous goods, such as gasoline or drugs, be stored in specially constructed containers. Other laws forbid producers from misrepresenting the quality or quantity of a product through misleading packaging. Perhaps the most influential class of laws that affect packaging, however, is that related to labeling. PRODUCT LABELING. The label is the text printed on a product package or, in the case of items like clothing, attached to the product itself. Legally, labels include all written, printed, or graphic material on the containers of products that are involved in interstate commerce or held for sale. The main body of legislation governing packaging and labeling is the Fair Packaging and Labeling Act of 1966. It mandates that every product package or label specify on its "principal display label" (the part of the label most likely to be seen by consumers) the following information: 1) the product type; 2) the producer or processor's name and location; 3) the quantity (if applicable); and 4) the number and size of servings (if applicable). Furthermore, several restrictions apply to the way that the label is displayed. For example, mandatory copy required by the act must be in boldface type. Also, if the company is not listed in the telephone book, the manufacturer's or importer's street address must be displayed. Other information required by the act relates to specific foods, toys, drugs, cosmetics, furs, and textiles. For instance, under the act labels for edible products must provide sodium content if other nutritional information is shown. They must also show ingredients, in descending order from the one of highest quantity to the one of least quantity. Certain food items, such as beef, may also be required to display qualitative "grade labels" or inspection labels. Likewise, "informative labeling" may be required for products such as home appliances. Informative label requirements mandate information about use, care, performance capability, life expectancy, safety precautions, gas mileage, or other factors. Certain major home appliances, for example, must provide the estimated cost of running each make and model for one year at average utility rates. Congress passed significant new labeling legislation, the Nutrition Labeling and Education Act of 1990, that became effective in the mid-1990s. This act is intended primarily to discourage misleading labeling related to health benefits of food items. Specifically, many package labels subjectively claimed that their contents were "low-fat," "high-fiber," or possessed some other health virtue when the facts indicated otherwise. Basically, the new laws require most food labels to specify values such as calorie and cholesterol content, fat and saturated fat percentages, and sodium levels. SALES REQUIREMENTS. In additional to functional requirements, product packaging must be designed in a way that will appeal to buyers. The four principal merchandising requirement areas are: apparent size, attention drawing power, impression of quality, and brand-name readability. Apparent size entails designing packaging to look as large as possible without misrepresenting the actual contents. This objective can be achieved by ensuring that the panels or dimensions of the package most likely to be viewed by the consumer are the largest, and that the product or brand name is shown on the most visible areas in large letters. In addition, the package can be made to look larger by using solid colors and simple, bold designs free of borders, superfluous art work, and unnecessary print. The pretense of largeness is particularly important for packages containing commodity items, such as rice, driveway salt, and canned fruit or vegetables. Attention drawing power refers to the aesthetics and obtrusiveness of the package design. Depending on the product and the goals of the marketers, the package may be made to appear attractive, exciting, pure, soft, sexy, scary, intriguing, or to evoke some other emotion. In most cases, though, the product is displayed on the front of the package in the form of a picture, art, or see-through window. In addition, bright colors, glossy stock, obtrusive carton displays, and other elements can garner positive attention if used prudently. A quality impression is an important sales requirement for packaging because items that are perceived to be of low quality are usually assumed to be a poor value, regardless of price. Examples of packaging mistakes that convey low quality or poor value include: faded lettering or colors, tacky designs or strange typeface, outdated pictures and designs, and cheap construction. Readability is the fourth basic sales requirement for successful package design. This element is of paramount importance for products like breakfast cereal that are shelved next to several competing brands and products. If the package attempts to convey too many messages, it will likely fail to connect with the consumer. Because of the mass of buying choices, buyers typically do not take time to absorb messages on packaging, with the possible exception of high-priced specialty items. Among other guidelines, letters or logos should be large and printed in the same type style as that used in complementary print and television advertising. The requirement of readability contributes to the difficulty in packaging completely new products. Packaging Strategy One of the most critical roles for packaging is promoting products. Indeed, just as ease-of-use and readability are elements of the strategic packaging mix, packaging is an important part of a company's strategic marketing mix. Most packages for consumer products are designed for one of three purposes: 1) to improve the packaging of an existing product; 2) to add a new product to an existing product line; or 3) to contain an entirely new product. Redesign of packaging for existing products may be prompted by several factors. Many times, a company may simply want to breathe new life into a maturing product by updating its image or adding a new feature to the package, such as an easy-pour spout. Or, a company may redesign the package to respond to a competitive threat, such as a new product that is more visible on the shelf. Other strategic reasons for package redesign are: changes in the product; economics, which may require less or more expensive packaging; product line restructuring; alterations in market strategy, such as aiming the product at a different age group; trying to promote new uses for a product; or legal or environmental factors that lead to new materials or technology. Even small packaging changes for established brands and products typically require careful consideration, since a great deal of money is often at risk if a company alienates or confuses customers. A second reason for package redesign is to extend a product or brand line. In these instances, the packaging strategy usually reflects an effort to closely mimic the established brand or product, but to integrate the benefits of the new feature into the existing package in such a way that customers will be able to easily differentiate it from other products in the line. The chief risks inherent in packaging for extensions are that the new package will confuse customers or frustrate retailers. The third impetus for package design is the need to generate housing for an entirely new product. This is the most difficult type of packaging to create because it often requires the designer to instill consumer confidence in an unknown product or brand, and to inform the buyer about the product's uses and benefits. Packaging for products and brands that are entirely new to the marketplace are the most challenging to develop. In contrast, packaging for goods that are entering established product categories require less education, but they must overcome established competition. A common packaging strategy for such products entails mimicking the packaging of leading products, which helps to assure the buyer that the product is "normal."
Pages to are hidden for
"PROMOTIONAL MANAGEMENT"Please download to view full document