Advertising & Sales Promotion

AdvertisinG & Sales PromotioN : AdvertisinG & Sales PromotioN 1

Advertising : Advertising 2

Advertising : Advertising Any paid form of Non-Personal Presentation and Promotion of Ideas, Goods or Services by Identified Sponsor. ( by American Marketing Association, 1963)

Elements of Advertising : Elements of Advertising Paid Form Non - Personal Identified Sponsor Mass Media Persuade or Influence 4

Publicity, Propaganda, Personal Selling : Publicity, Propaganda, Personal Selling Publicity -Refers to stories and brand mentions in mass media without any payment . - In Publicity, No payment made by the benefited organisation. Example : 1) SAB TV promoting its channel. 2) Boasting its circulation figure by Times of India in its on publications( TOI, ET, & other publication).

Publicity, Propaganda, Personal Selling : Publicity, Propaganda, Personal Selling Propaganda - Attempts to present certain opinions and ides , which may influence public attitudes and actions. - Source or Originator of propaganda is remain a mystery. - No authenticity of information Example: 1) castes issue raised by Local leader’s to get vote.

Publicity, Propaganda, Personal Selling : Publicity, Propaganda, Personal Selling Personal Selling A face to face presentation, promotion & Selling of product & services. The 6 Step of Personal Selling:- Prospecting PreApproach Presentation & Demonstration Overcoming Resistance & Objection Closing Follow-ups

Product Life Cycle & Advertising : Product Life Cycle & Advertising The Introductory Stage The job of advertising is to introduce the idea that the product is better able to meet the consumer needs than the existing solutions. The competitive Stage In the stages of competition, the combined total effect of competitors creates significant growth for the product category. At this stage ,the key objective of advertising is to clearly and convincingly differentiate the company’s brand & effectively communicate its position. The Reminder Stage When products reach maturity in their life cycle & are widely accepted, they are their reminder stage. Marketers may not feel much need for competitive advertising, as consumer already know all about product. At this stage if marketer don’t advertise , consumer are likely to forget about it & switch to other available advertised alternatives. Its a sufficient reason to do reminder Advertising & keep the brand in eyes of consumer for top-of-mind recall.

Advertising Functions : Advertising Functions Informing Persuading Reminding Adding Value Assisting Other Company Efforts 9

Advertising Functions : Advertising Functions Informing Makes consumers aware, educates them about the features and benefits, and facilitates the creation of positive brand images Facilitates the introduction of new brands and increases demand for existing brands Performs another information role by: 3

Advertising Functions : Advertising Functions Persuading Persuades customers to try advertised products and services Try to Create a repeat purchase of product. 11

Advertising Functions : Advertising Functions Reminding Keeps a company’s brand fresh in the consumer’s memory. Brand remain on the top of the mind of customer. Influences brand switching by: 12

Advertising Functions : Advertising Functions Adding Value Three basic ways by which companies can add value innovating improving quality altering consumer perceptions 13

Advertising Functions : Advertising Functions Assisting Other Company Efforts Advertising is just one member of the marketing communications team Sometimes, an assister that facilitates other company efforts in the marketing communications process 14

5 M’s of Advertising : 5 M’s of Advertising Mission Sales Goals, Advertising Objective Money Stage in PLC, Market Share and Consumer Base, Competition and Clutter, Advertising Frequency , Product Substitutability Message Message Generation, Message Evaluation & Selection, Message execution, Social Responsibility Media Reach-Frequency-Impact, Major Media Types, Specific Media Vehicles, Media timing, Geographical Media Allocation Measurement Communication impact, Sales impact

Types of Advtersing : Types of Advtersing Advertising to Consumer Advertising to Business and Profession Non- Product Advertising

Advertising to Consumer : Advertising to Consumer Classified Advertising Classified ads are arranged under sub-heads that describe the class of goods or the consumer needs. Classified ads are a substantial source of revenue for news paper as these comes from different categories i.e. Matrimonial, Real Estate, Auto’s, Coaching, Employment, Business Opportunities etc. Display Advertising Most Non- Advertising is display advertising ,including TV commerical, Newspaper etc.

Contd….. : Contd….. National Advertising Not Restricted to any geographic area within nation. Goal is to Inform, Persuade, or Remind Consumer. Mostly Used by branded product or service provider but product may or may not get sold Nationally. Ad Intend to communicate Brand, brand features, Benefits, advantages, or uses. Main Message - “ BUY OUR BRAND”.

Contd…… : Contd…… Retail ( local ) Advertising Main Purpose- Encourage patronage from local customer and build store loyalty among them. Sale of any particular brand May or may not be the main concern of retailer. Main Message - “BUY AT OUR STORE”.

Contd…… : Contd…… Co-Operative Advertising When retailers gives adv. in local media under his name with help of Manufacturer to get identification in local market. Manufacturer provide dealer Adv. Material, Guideline & money for developing ads. Ex. Ads given dealers of Bajaj Motorcycle, Maruti Suzuki,

Contd…. : Contd…. End Product Advertising Advertising done for the product bought by Middle-Man to make a end user product i.e. Ads of Intel, Microsoft, AMD Processor etc. Direct Response Advertising Encourage the consumer to respond either by providing feedback or placing the order with advertiser by Telephone, Mobile , Mail, or Internet etc.

Advertising to Business & Profession : Advertising to Business & Profession Trade Advertising Industrial Advertising( B2B Advertising) Professional Advertising Corporate or Institutional Advertising Advocacy Advertising

Trade Advertising : Trade Advertising Trade Advertising is used to promote products to re-sellers, encouraging them to stock the product. The objective of this type of advertising is to achieve maximum distribution. Its aimed to create brand awareness among re-seller’s, which is followed by salespeople or by offering some trade incentive.

Industrial Advertising : Industrial Advertising Industrial Advertising is directed at a specialised and relatively small size target audience. The advertisement of this category use media such as Industry publication, direct Mail, telephone, Internet and Trade fairs. This kind of advertising usually done for industrial goods i.e. heavy machinery.

Professional Advertising : Professional Advertising Professional advertising is directed towards people who are not the final consumer. Many professional i.e. Architects, Engineers, & Medical Consultant, etc. often make the final purchase decision on behalf of their Clients. Advertising media used for such type of marketing are Professional Journal, Direct Mail, and in rare instances Mass media.

Corporate or Institutional Advertising : Corporate or Institutional Advertising Corporate Advertising is an extension of public relation function and doses not promote any specific product or services. Corporate Advertising aims to build and maintain the image of a company or institution & usually focuses on company policies, objectives, functions, facilities ideas, technology skill, social contribution, financial strengths etc.

Non – Product Advertising : Non – Product Advertising Idea Advertising Service Advertising Political Advertising Primary Demand Advertising Selective-Demand Advertising Surrogate Advertising

Issues of Advertising : Issues of Advertising Economic Issue Ethical Issue Social Issue

Economic Issue : Economic Issue Effects on the value of product Effects on Price Effects on Consumer Demand & Consumer Choice Effects on Competition

Social Issue : Social Issue Social & Cultural Issue - Materialism Stereotyping

Ethical Issue : Ethical Issue Excess use of Sex appeal & Nudity Misleading & Deceive Customer - Puffery Advertising

Principle Of Advertising : Principle Of Advertising Truth Substantiation Comparison Bait Advertising Guarantees & Warranties Price Claims Testimonial Taste & Decency

Client / Advertiser : Client / Advertiser A Person or Organisation who wants to communicate with target audience about product ,services, ideas, or cause with persuasive intent with help of different type of media can be termed as CLIENT / ADVERTISER. Functions of Advertiser / Client Develop Marketing Plan Provides Required Fund Takes final decision on Advertising & Promotion Prog.

ADVERTISING AGENCY : ADVERTISING AGENCY Advertising agency is an independent organisation that provides one or more specialised advertising and promotion related services to assist companies in developing, preparing and executing their advertising and other promotion programme. Definition by American Association of Advertising Agencies or 4A’s :- “Advertising agency is an independent business, composed of creative and business people who develop, prepare and place advertising in advertising media for sellers seeking to find customers for their goods & services”.

Advertising Agencies : Advertising Agencies In-House Agencies Out Side Agencies

IN-HOUSE Agencies : IN-HOUSE Agencies Some Advertiser in effort to Reduce Cost and maintain more control over the advertising activities of organization, make, Setup, Self Owned and Operated full time Adv. Dept, which they refer as In-house Agency. Advantage of such agencies are Cost saving & provide Greater control over Agency Activities.

Advantages & Disadvantages of In-house Agencies : Advantages & Disadvantages of In-house Agencies Advantages Cost Savings Control on activities and Costs. Increased Co-ordination Disadvantages Less Experience Less Objectivity Less Flexibility

OUT-SIDE Agencies : OUT-SIDE Agencies Full Service Agencies Creative Boutiques / Limited Service Agencies Specialty Agencies Media Buying Agencies

Full Service Agencies( FSA) : Full Service Agencies( FSA) FSA provide advertising services such as Strategic Planning, Creative Development, Production, Media Planning, Media Buying and other related services like sales promotion, direct selling, Designing & branding etc. These companies work on combination of fee based or commission based Compensation. These companies provide complete communication solutions to its clients.

Creative Boutiques/ Limited Services Agencies : Creative Boutiques/ Limited Services Agencies They provide only creative services such as creation & execution of advertising. These Creative Specialists are known as COPY WRITER. They Concentrate on creative aspect of advertising & there services are used by those clients who are looking for high quality Creative work.

Specialty Agencies : Specialty Agencies These type of agencies are the one that works within a particular industry or in a particular function. Ex : Real Estate, Hospital, Education, Hotel, Financial Industry, direct marketing, internet marketing, poster campaign Public Relation etc. SHOBHAGYA is one of such kind agency which specialize in Financial Service Industry .

Media Buying Agencies : Media Buying Agencies They are independent companies that specialize in the buying of media i.e. radio time, TV Space etc. They specialize in Analysis & purchase of time and space. There is two type of agencies: 1) who buy time & space for particular client as per their requirement. 2) Who buy the time & space in advance & sell to different customers.

ADVERTISING PLANNING & DECISION MAKING : ADVERTISING PLANNING & DECISION MAKING

Advertising Planning & Decision Making : Advertising Planning & Decision Making Setting Advertising Objective Setting Advertising Budget Setting Advertising Strategy Setting Advertising Evaluation Parameters 40

Setting Advertising Objectives : Setting Advertising Objectives 45 Communication Objective Sales Objective

Advertising Budget Practices : Advertising Budget Practices Affordable Approach Percent (%) of sales Approach Competitive Parity Approach Objective & Task Approach

UNIT – IIObjective Setting & Market Positioning : UNIT – IIObjective Setting & Market Positioning

Segmentation : Market Segmentation is the process of dividing the total Heterogeneous market into relatively distinct homogenous sub-group of consumers with common needs or characteristics. Segmentation is the process of clubbing together similar customers in a group, so that they can be served by a marketing mix especially designed for a group or segment. The idea is that ,the more homogeneous the group, the more appropriate shall be the elements of the marketing mix for each customer in the segment. Basis of Segmentation Geographic Segmentation Demographic Segmentation Psychographic Segmentation Behaviouristic Segmentation Benefits Segmentation Segmentation 19

Positioning : Positioning Positioning: Positioning is the process of creating a distinct offer and communicating it to the customer. Positioning is created by designing a marketing mix which is suitable for the target market but is different from marketing mixes of other providers.

Targeting : Target Markets: A company may not have the resources and the capabilities to serve all the segments. A company will decide to serve one or more segments depending upon its capabilities & resources. The segments that the company chooses to serve by designing special marketing mixes are called the target markets. Targeting 20

What is Brand? : What is Brand?

What is Brand? : What is Brand? According to American Marketing Association (AMA ) - A brand is a “ name , term, sign, symbol, or design or combination of them, intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition.” A brand is a product or services whose dimension differentiate it in some way from other products or services ( non-branded) designed to satisfy the same need.

Brand Awareness, Brand Attitude & Feelings : Brand Awareness, Brand Attitude & Feelings

Brand Awareness : Brand Awareness Brand Awareness is the consumers ability to recognize or recall ( identify) the brand within a given product category in sufficient detail to make a purchase Decision. Brand awareness is the primary goal of advertising in the early months or years of a product's introduction.

Contd… : Contd… Brand Awareness is equated with “ Brand Name recall”. It shows the strength of the presence of a brand in consumer mind. The ideal Situation in creating brand awareness by the advertiser is aiming to accomplish both brand recognition and brand recall.

Contd….. : Contd….. In some instances, consumer may not aware about the name of product, he/ she might recall the brand by a picture, by logo or by package of the product. It largely happen in rural areas. Ex: People in rural areas ask for cooking oil that has “ palm tree” on the pack, by saying “ who khajoor chhap ghee dena”. They may not know the actual name is “ dalda”. When they ask for the product by the identifying logo, at that point of time they may not accept the substitute of it.

Brand Attitude : Brand Attitude Brand Attitude – tells what people think about a product or service, whether the product answers a consumer need, and just how much the product is wanted by the consumer. It’s the consumer’s evaluation and expression of inner feelings that reflect whether the consumer is favorably or unfavorably inclined towards brand to meet a need or want. Knowledge of brand attitude is very helpful in planning an advertising campaign.

Contd…. : Contd…. A consumers attitude or feelings get structured by composed of 3 main Components of behavioural aspect:- Cognitive ( Awareness, Knowledge, or comprehension) Affective ( Evaluation, liking, preference, and Conviction) Conative or Behavioural(Tendencies towards action, trial, or purchase)

Brand Equity : Brand Equity Brand equity is an intangible asset that depends on associations made by the consumer. The value a customer places on a branded product or service. It is the qualitative sum of everything that a customer thinks, feels and knows about the product or service. Definition’s :- Brand Equity is the added value bestowed on the product by the brand name.” (Chan Su Park and V. Srinivasan ) “ Brand Equity can be thought of as the additional cash flow achieved by associating a brand with the underlying product or services.” ( Alexander L. Biel)

Contd… : Contd… The value of brand equity can be determined by comparing the expected future revenue of the branded product/service against the expected future revenue from an equivalent but non-branded product/service. High Brand Equity gives a company the highly desired competitive advantages.

Contd.. : Contd.. There are three perspectives to view brand equity: Financial Perspective Brand Extension Perspective Consumer based Perspective

Financial Perspective : Financial Perspective One way to measure brand equity is to determine the price premium that a brand commands over a generic product. For example, if consumers are willing to pay Rs.1000- 2000 more for a branded television over the same unbranded television, this premium provides important information about the value of the brand. Expenses such as promotional costs must be taken into account when using this method to measure brand equity.

Brand Extensions Perspective : Brand Extensions Perspective A successful brand can be used as a platform to launch related products. The benefits of brand extensions are the leveraging of existing brand awareness thus reducing advertising expenditures, and a lower risk from the perspective of the consumer. Appropriate brand extensions can enhance the core brand. The value of brand extensions is more difficult to quantify than are direct financial measures of brand equity.

Consumer based Perspective : Consumer based Perspective A strong brand increases the consumer's attitude strength toward the product associated with the brand. Attitude strength is built by experience with a product. Importance of actual experience by the customer implies that trial samples are more effective than advertising in the early stages of building a strong brand. The consumer's awareness and associations lead to perceived quality, inferred attributes, and eventually, brand loyalty.

Example of Brand Equity : Example of Brand Equity In the early 2000s in America, the Ford Motor Company made a strategic decision to brand all new or redesigned cars with names starting with "F". This aligned with the previous tradition of naming all sport utility vehicles since the Ford Explorer with the letter "E". An analyst who warned that changing the name of the well known Windstar to the Freestar would cause confusion and discard brand equity built up, while a marketing manager believed that a name change would highlight the new redesign. The aging Taurus, which became one of the most significant cars in American auto history would be abandoned in favor of three entirely new names, all starting with "F", the Five Hundred, Freestar and Fusion. By 2007, the Freestar was discontinued without a replacement. The Five Hundred name was thrown out and Taurus was brought back for the next generation of that car in a surprise move by Alan Mulally. "Five Hundred" was recognized by less than half of most people, but an overwhelming majority was familiar with the "Ford Taurus".

Brand Personality : Brand Personality Kevin Lane Keller defined Brand Personality as -: The Set of human Characteristics linked to the brand that consumer hold in memory. Ex: Nescafe:- young ,upper middle class, professionally qualified, ambitious and confident. Boost :- young dynamic ,energetic and an achiever. Pepsi :- Young, rule establishment, cool, extrovert.

Contd… : Contd… Brand Personality includes associations with specific characters, symbols, endorsers, users, and lifestyles. Consumer loyalty is associated with positive brand image, which also include personality dimension and they are willing to search for their preferred brand. Five dimensions of brand personality with corresponding dimensions have been identified.

Dimensions of Brand Personality : Dimensions of Brand Personality The Big 5 of Brand Personality Sincerity : Down to earth, Honest, Wholesome, Cheerful. ( Raymond) Excitement : Daring, Spirited, Imaginative, Up-to- date.( MTV) Competence : Reliable, Intelligent, Successful,( Bajaj, Maruti) Sophistication : Upper Class, Charming ( Lakme, Revlon) Ruggedness : Outdoors, Tough ( Levi’s, Woodland) (Source : Jennifer L. Aaker, Aug 1997, AMA)

Brand Image : Brand Image Brand image dimension refers to perceptions about a brand as reflected by the brand associations held in consumers memory and encompasses both physical and perceptual components. Brand image is a customer concept that drives the consumer behaviour. “ Brand Image represent physical features and benefits”. ( by Christine Restall)

Contd…. : Contd…. Subroto Sengupta believes that Brand image is a far broader term & is really the sum total of impression created by the brand in the consumer’s mind. This includes consumer’s impression about the brand’s physical characteristics , its performance, the functional benefits, the kind of people who use the brand, the emotions & associations it develops and the imagery or the symbolic meaning it generates. Joseph Plummer also believes that brand image is inclusive of all associations that a consumer has for the brand, such as all the thoughts, feelings, imagery, sounds, colours and smells, etc., that consumers links mentally to the brand in her/his memory.

Views on Brand Personality & Brand Image : Views on Brand Personality & Brand Image “ The manufacturer who dedicates his advertising to building the most favorable image, the most sharply defined personality, is the one who will get the largest share of the market at the highest profit – in the long run. ( David Ogilvy in The unpublished Ogilvy, 1995)

Views on Brand Personality & Brand Image : Views on Brand Personality & Brand Image David Ogilvy regards Brand Image and personality as meaning the same thing. “You have to decide what image you want for your brand. Image means Personality… the personality of a product is an amalgam of many thing – its name, its packaging, its price, the style of its advertising and above all, the nature of the product itself ”. ( David Ogilvy, “ Ogilvy on Advertising”, 1983). In many markets there are no real differences among the competitors'. So you begin to explore a more emotional and this is where the brand personality comes in. Brand image refers to rational measurement like quality, strength, flavour. Brand Personality explains why people like some brands more than others even when there is no physical difference between them. (Christine Restall of McCann ERICKSON has drawn a distinction between Brand Image & Personality )

Contd… : Contd… According to Subroto Sengupta “ Brand personality represents that part of brand image, which in the consumer’s mind is associated with the brand‘s emotional aspects & symbolism.

World Top ten most Valuable Brands ( In Billions, 2009) : World Top ten most Valuable Brands ( In Billions, 2009) Coca-Cola -$68.73 IBM -$60.21 Microsoft -$56.65 GE - $47.78 Nokia -$34.87 6. McDonald's -$32.28 7. Google -$31.98 8. Toyota -$31.33 Intel -$30.64 10. Disney -$28.45

Creative Strategies & Techniques : Creative Strategies & Techniques

Creative Concept Development : Creative Concept Development

What is Creativity : What is Creativity The Word “create” denotes originating or conceiving an idea or a thing that did not exists before. Creativity involves combining previously unconnected ideas or objects into something new. Creativity can be learnt and used to generate original ideas.

Advertising Creativity : Advertising Creativity Advertising creativity is the ability to come up with fresh, perhaps unconventional, unique, appropriate and effective ideas can be used as solutions to an advertiser’s communications problems. In other words, it’s the that “ THE BIG IDEA” , the creative solution that in few words of images sums up the compelling reason to plop down your hard earned money for something you may not have known, you even needed.

Advertising Strategy ( Creative Strategy ) : Advertising Strategy ( Creative Strategy ) “ People love great advertising, but they don’t want bad stuff, the mediocre stuff and a lot of it is just annoying”. ( Conrad, CCO, Leo Burnett, AMA ,2006) Adv Strategy Blends the element of creative mix. Four Elements has been majorly accepted by all.

Four Elements of Creative Mix : Four Elements of Creative Mix The Target Audience The specific audience the advertising is intended to focus upon will typically be larger than target market. Advertiser need to know who the actual end user of product is, who is involved in influencing and making purchase decision and who makes the purchase.

Contd.. : Contd.. The product & it’s Positioning The product is a “bundle of values” offered to the consumer. While writing the advertising plan the concerned person must develop a simple statement describing the product and its positioning – how the advertising will present the product to audience.

Contd… : Contd… The Communication Media The selection of right media is very important to reach the specific targeted audience The Advertising Message Advertising message involves everything that the marketer plans to say in its ads and how it plans to say both verbally and non-verbally are critical aspects.

Style of Thinking : Style of Thinking Roger van Oech defined two types of these as :- Hard Thinking Hard thinking refers to concepts like logic, reason, precision, consistency, work, reality, analysis, and specificity. In this, things are right or wrong, black or white.

Contd… : Contd… Soft thinking Soft Thinking refers to less tangible concepts such as metaphor, dream, humour, ambiguity, play, fantasy and hunch. In this, there maybe many right answers and many shades of grey between black and white.

Contd.. : Contd.. Max Weber, The German sociologist, determined two ways : Fact-based Manner Fact based style of thinking used while we prepared for a test. Value Based Manner Value based style of thinking used while purchase the things i.e. a Dress

Planning Creative Strategy : Planning Creative Strategy The Work of creative people in advertising business is quite Challenging. Plan in Advance with inputs from all the sides i.e. research findings, creative briefs, Strategy statements, Communication Objectives etc. to convert them in a effective Advertising message.

The Creative Process : The Creative Process Alex F. Osborn - ex-head, BBDO, given Seven step Creative Process: Orientation – Pointing Out Problem Preparation – Gathering pertinent data Analysis – Breaking down the relevant Material Ideation – Piling up Alternative Material Incubation – Putting the problem aside to invite spontaneous ideas at some later, unguarded time. Synthesis – Putting the pieces together, and Evaluation – Judging the resulting ideas.

Gathering Information : Gathering Information Information from all the departments of Advertiser i.e. Sales, Marketing, product or research dept. to learn about product, marketing history of company, its competitors & adv. style of competitors. Primary Data In depth Interviews, questionnaire, Product Testing , visiting malls, stores, using product, Focus group Opinion etc. Secondary Data Information from books, Trade journals, research reports etc.

Developing Brand Personality : Developing Brand Personality

Developing Brand Personality : Developing Brand Personality Brand Personality is the personification of brand identity. The personification of identity requires the blending of human psychological attributes into brand related attributes. Brand personality can be defined in simple terms as, “ What will happen if the brand becomes a person?”

Contd… : Contd… Brand Personality can be driven by product- related attributes or non product- related attributes. Product Related Attributes If a brand is considered to be upper class and sophisticated, brand personality is also sophisticated and upper class.( Reid & Taylor, BMW, Mercedes )

Contd… : Contd… Non Product – Related Attributes User Imagery User imagery can be a powerful tool for a brand personality because user is already a person and thus the difficulty of conceptualizing a brand personality is used.( Ex. Coke chooses Hrithik & Aamir Khan, Pepsi chooses Shahrukh khan, John Abraham & Kareena Kapoor

Contd.. : Contd.. Sponsorships The activities that brand sponsors also projects its brand personality. Ex: Sports brands or brands targeting youth like pepsi and coke often sponsor cricket tournaments. Bournvita sponsored quizzing contest.

Contd… : Contd… Symbols A symbol is also a part of the identity of a brand; however, it can also be a powerful influence on the personality of the brand. For Ex: Pillsburry dough boy, HMV’s dog in front of a gramophone, Marlboro cowboy or Bacardi’s bat. Country of origin Some brands get added leverage from claiming to be from a country know for its expertise in that category. Ex: Sony talks about Japanese engineering, Slice of Italy for pizza etc.

Examples of Brand Personality : Examples of Brand Personality MRF Its Uses Sachin Tendulkar- to deliver its personality of high performance. Its mascot show’s a muscleman which signifies Strength. VODAPHONE The brand claims to be loyal. It has made an excellent use of the pug as its brand personality, which follows you wherever you go. TAG HEUER Shows the biggest celebrities like Shah Rukh Khan, Priyanka Chopra, Anna karnikova, Brad Pitt and Tiger Woods wearing their watches and hence shows itself to be high class, sophisticated and the choice of the successful.

Copy Writing : Copy Writing

Copy Writing : Copy Writing Copywriting is the use of words to promote a person, business, opinion or idea. Although the word copy may be applied to any content intended for printing. Copy Writing is a specialised form of communicating ideas that are meant to serve the requirement of modern marketing. Its helps in establishing links between advertisers and their prospects. The author of newspaper or magazine copy, for example, is generally called a reporter or writer or a copywriter.

Element of Copy Writing : Element of Copy Writing Major Element of Copy Writing The Headline The headline of an advertisement will normally present a selling idea or will otherwise serve to involve the prospect in reading of advertising. Headline need not always contain special message. Ogilvy adds that five times as many people read the headline as those who read the body copy.

Element of copy writing : Element of copy writing The Sub Head Important facts which require more space than headline. Give prominence to such information it can be put in smaller type than headline, know as a Sub-head. When the subhead is above the headline, it referred as a kicker or overline is often underlined. Subheads are longer than headline, more like a sentence and serve as a stepping-stone from headline to body copy.

Contd… : Contd… The Body Copy The main text portion included in advertisement is called the body copy. The Body copy contains the complete story and its logical continuation of the headline & Subheads. It contains details regarding the attributes, functions & Utility of the product/services and its benefits. Ogilvy recommends plunging in the subject matter straightaway without beating about bush.

Element of copy writing : Element of copy writing Captions Captions are small units of type used with illustration, coupons, and special offers. The Blurb A blurb or balloon is a display arrangement where the words appear to be coming from the mouth of one of the characters.

Element of copy writing : Element of copy writing Boxes and Panels A box is a caption which 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 reverse type, or centered in white space. Boxes & panels are generally used in advertisements containing features such as coupons, special offers and consumer contests.

Element of copy writing : Element of copy writing Slogans & logo types A slogan or punch may refer age of the advertiser’s firm, meant for inclusion in every advertisement. A symbol of the company name, seal, or trademark is called logo. A logo is an important aid in quick recognition of an advertisement and in creating familiarity for audience.

Criteria of Effective Copy : Criteria of Effective Copy Be precise Be concise Aim to sell Be sincere Be addressed as per type of the audience Stimulate Interest Create desire Inspire confidence Influence the readers thoughts and / or action

Copy Writing Approaches & Appeals : Copy Writing Approaches & Appeals Negative Approaches Positive Approaches Fear appeals Humor Appeals

Famous Copy Writer : Famous Copy Writer David Ogilvy, O&M David Abbott, founder of Abbott Mead Vickers BBDO William Bernbach, founder of DDB Worldwide Drayton Bird, founder of Trenear-Harvey, Bird & Watson (THB&W) Leo Burnett, founder of Leo Burnett Worldwide Fairfax M. Cone, founder of Foote Cone & Belding Bernice Fitz-Gibbon, 1982 Advertising Hall of Fame inductee Jo Foxworth, key writer at McCann Erickson

Unit IVMedia Strategy & Tactics : Unit IVMedia Strategy & Tactics

MEDIA TYPES : MEDIA TYPES

Type of Media : Type of Media Television Radio Direct Mail / Direct Marketing Newspaper Magazines Outdoor media Internet/Mobile/

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Basic Media Strategy : Basic Media Strategy

Media Strategy : Media Strategy Reach Is a measure of % of people in the target market whom are exposed to the ad. Campaign during a given period of time. Frequency Is a measure of how many times the average person in the target market is exposed to message. Media Impact The qualitative value of a message given through a given media

Contd.. : Contd.. Choosing Media types As each medium has its advantages & limitations , media planner should choose the right media carefully. Media mix should be examine regularly for its impact. Selecting Specific Media Vehicles Advertiser should choose the best media vehicles – specific media vehicles within each general media type.

Setting Media Budget : Setting Media Budget

Media Budgeting : Media Budgeting Absolute Cost Of the medium or vehicle is the actual total cost required to place message. Ex: for placing a 4 page ad in INDIA TODAY cost Rs. 5 Lakh. Relative Cost Refers to the relationship between the price paid for advertising time or space and the size of audience delivered. It is used to compare media vehicle. Relative cost has more important in present scenario.

Relative Cost : Relative Cost Cost pert thousand (CPM) Cost of ad space ( absolute cost) _____________________________________________________________________________________________ X 1000 Circulation Cost per rating point ( CPRP) / TRP Cost of commercial time _______________________________________________________________________ program rating Daily Inch rate Television = Cost of 1 unit of time x1000 --------------------------------------------------------------------------------------------------------------- Program rating

Contd.. : Contd.. Newspaper / Magazine Cost of Ad space x1000 -------------------------------------------------------------------------------------- Circulation

Advertising Organization : Advertising Organization Client - Agency Relationship ( CAR )

What is Client / Advertiser? : What is Client / Advertiser? Advertiser ( Client) are the ones who want to communicate with the target audience about product / services, ideas or cause with persuasive intent. Client / Advertiser provide the necessary fund that go into media buying and creating the advertising. Advertiser are the key participants in this process.

What is Advertising Agency? : What is Advertising Agency? Advertising Agency is an independent Organisation that provides one or more specialised advertising and promotion related services to assist companies in developing, preparing and executing their advertising and other promotion programmes.

Basic Principle of CAR : Basic Principle of CAR The agency should avoid advertising a close substitute competing product. The client , to , avoids engaging the services of another competing agency. The agency should receive the green signal from the client for all the expenses incurred on its advertising on time. The agency keeps the media commission for itself, and the client undertakes, to foot the bill promptly. If media grants any cash discount, it is passed on to the client.

Points in consideration for Agency Selection : Size of the agency and its corporate Structure, Organizational Setup and no. of Employees, Profile of key personnel, Services offered by the agency, Terms & Condition of business, Accounts held and periods for which they are held, Growth of agency’s Billings Case histories of some campaigns Points in consideration for Agency Selection

Additional Points in consideration for Agency Selection : Additional Points in consideration for Agency Selection Assistance in preparing or reformulating Marketing Plans Marketing and Advertising Research Sales Promotion Merchandising Public Relation Media Buying

Reason for CAR Breakup : Reason for CAR Breakup International Alignment Management Changes Product conflict with merger, takeovers, or new product introductions Disenchantment with each other Brand Faliure

Agency Compensation : Agency Compensation Commission The most traditional method for compensating Adv. Agency Agency get paid a fixed Commission for its services ( usually 15 % & for outdoor media 16.66%) Simplest system to determine the commission Negotiated Fees Fixed fee method Cost Plus Method Incentive based Method Percentage Charges

Legal Aspect Of advertising : Legal Aspect Of advertising

Legal Aspect in India : Legal Aspect in India As compare to other advanced economies , India has only one body of self regulation in advertising – the ASCI ASCI - The Advertising Standards Council of India. ASCI – safe guard the interest of consumers.

Advertising Standards Council of India - ASCI : Advertising Standards Council of India - ASCI Established in 1985, a Voluntary Self-Regulatory council registered as not-for-profit company under sec 25 of the Indian Company Act. Main Objective – ensure all advertising should be legal, decent, honest, and truthful along with the sense of social responsibility to the consumers and to the rules of fair competition.

Contd.. : Contd.. ASCI encourage the public to complain against advertisement which they consider to be false, misleading, offensive or unfair. All of such kind of complaint are evaluated by an independent Consumer Complaints Council ( CCC)

Objective of ASCI : Objective of ASCI Ensuring the truthfulness and honesty of representations and claims made through advertising and safeguard against misleading advertising. To ensure that Advertisement are not offensive to generally accepted standards of public decency. To safeguard against Indiscriminate use of adv. For promotion of product, which are regarded hazardous to society or to individuals to a degree or of a type, which is unacceptable to society at large. To ensure that advertisements observe fairness in competition so that both the consumers’ need to be informed about choices in the market place and the cannons of generally accepted competitive behaviour in business, are served.

Sales Promotion : Sales Promotion

Managing the Sales Force & Planning for Sales Efforts : Managing the Sales Force & Planning for Sales Efforts

What is Sales Promotion : What is Sales Promotion Sales Promotion refers to many kind of incentive and technique directed towards consumer and traders with intention to produce primarily immediate or short-term sales effects. Def. by AMA,” In a specific snese, sales promotion includes those sales activities that supplement both personal selling and advertising and coordinate them & help them to make effective, such as displays, shows and expositions, demonstrations and other non-recurrent selling efforts not in the ordinary route.

Sales Promotion : Sales Promotion “ Sales Promotion are short –Term Incentive to encourage purchase or sale of a product.” by John A. Quelch “ Sales Promotion is an action-focused marketing event whose purpose is to have a direct impact on the behaviour of the firm’s customers.” by Institute of Sales Promotion - UK Sales Promotion is the direct inducement or incentive to the sales force, the distributors, or the consumer, with the primary objective of creating an immediate sale. By Stanley M. Ulanoff.

Topic – 1Selection Requirement & Training : Topic – 1Selection Requirement & Training

Selection Requirement & Training : Selection Requirement & Training Sources for Recruiting Sales Force Word of mouth Sales Representative of Competing Companies Salesman of Non-competing Companies Internal Transfers Campus recruitment from Educational Institute Placement Firms Advertisement

Selecting Sales Personnel : Selecting Sales Personnel Following procedurals Steps can considered as systematic Selection Process:- Receiving Application Selection Test Interview Inspection of Documents, Educational Certificates, & Past Career, References Etc. Primary Selection Final Selection Medical Checkup Placement & Trainning

Training of Sales Force : Training of Sales Force Creation of a sales Training Programme is a five –Step Process. The Steps called A-C-M-E-E. A - Aim C - Content M - Methods E - Execution E - Evaluation

Compensation of Sales Force : Compensation of Sales Force Straight Salary Straight Commission Plan Combined salary and Incentive / Commission Plan Bonus Fringe Benefits

Training Methods : Training Methods On the Job In this method Sales person accompany his superior and perform the selling job. Sometime Superiors demonstrate the way to sell the product. Off the Job Orientation Programme / Induction, Class room Training, Conference , Seminar, Case Study / Role Playing

Monitoring and Performance Appraisal : Monitoring and Performance Appraisal

Monitoring : Monitoring Methods of Monitoring Through Sales Reports Work plan content Progress Report Expense Component Complaint and adjustment Component New Business or potential Business Component Lost Business Component Through field visits by the supervisors or field sales manager

Sales Forecasting, Quota & Territory Allocation : Sales Forecasting, Quota & Territory Allocation

Sales Forecasting : Sales Forecasting Sales Forecasting :- methods is a procedure for estimating, how much of a given product or product line we can sell. This all will depend upon how the marketing plan has been implemented. No sales forecasting method is full proof. Well managed companies do not rely upon a single sales forecasting methods.

Methods of Sales Forecasting : Methods of Sales Forecasting Jury of High Profile Executive Opinion : Certain high profile executive of company decide or give estimate the probable level of future sales. A rough average of estimates given. Pool of sales force Opinion :- Individual sales manager forecast the sales of his region or territory. Later the all the figure get combined & taken as Sales forecast for entire company.

Sales Quota : Sales Quota Minimum sales volume goal established by the seller. Quotas may also be set for sales activity (number of calls per day), sales costs and profitability in addition to sales volume. A sales quota may be required of a salaried or commissioned salesperson or may be a goal set for a brand, a product line, or a company division. Sales quotas are used to ensure that company sales goals are met even though they may exceed an individual salesperson's personal goals or abilities. Sales quotas are prepared on the basis of sales forecasts and budgets.

Types of Sales Quota : Types of Sales Quota Sales volume quotas. Financial Quota Activities Quota The two types of profit quotas: Gross margin quota determined by subtracting cost of goods sold from sales Volume. Net profit quota determined by subtracting cost of goods sold and salespeople’s direct selling expense from sales volume. Expense quotas. Activity quotas. set objectives for job-related duties useful toward reaching salespeople’s performance targets.

Territory Allocation : Territory Allocation What is territory The sales territory is “where the action is!” Territory may represent: A particular geographical area mostly A group of customer accounts or prospects e.g. hospital or banking etc. A market An Industry A place where sales person perform its duty ( sales).

Objective of Sales Territory : Objective of Sales Territory To cover the market properly, To deploy the sales people Effectively, To services the customer Grouping efficiently, To evaluate the sales representative performance, To facilitate higher productivity in selling & marketing efforts To control selling expenses To co-ordinate personal selling and advertising.

Designing Sales Territory : Designing Sales Territory There are two basic approaches :- Market Build-up Approach Depends upon Market Share/Sales potential of whole market , the area broken down in Territory –Wise. It is then given the necessary marketing Back-up. Sales territories are designed so as to equalize the sales potential and the workload for each Territory.

Workload Approach : Workload Approach This approach has been introduced by W.J.Talley. The Steps Involved are:- Customer are grouped in categories. Optimum call frequency for each category estimated. Present and potential customers are then located geographically and arranged category-wise. No. of customers in each category is multiplied by desired call frequency to get total no. of calls. Geographical control unit is then established. It gives adequate workload to each SR.

Sales Budgeting and Control : Sales Budgeting and Control

Sales Budget & Control : Sales Budget & Control Budget : What For? Budget are a tool of control & instrument of Planning. Once the budget is accepted in terms of estimated sales, expenses and profit figures, the actual result are measured, and compared against the budgeted Figures. Budget show how to spend money to achieve the targeted sales.

Budgetary Process : Budgetary Process Sales are the key variable for formulating budget of the other departments. Sales budget becomes a major input for the financial plan in terms of working capital requirement, capital expenditure, cash flow and fund flow and administrative expenses.

Budgetary Control : Budgetary Control Budgets are used, after approval, for controlling. Each budget has quotas or standards, against these, management has to measure performance. For controlling, Budget progress reports are prepared periodically & proper & timely corrective action is taken. Budgeted figure can be revised to keep pace with the changing environment ( external factor’s)

Sales Promotion Budget : Sales Promotion Budget % to sales Method Unit sales Method In this method, the base is the physical volume of either the past or anticipated sales of product unit. This figure of unit is then multiplied by a fixed amount of money to reach the budget amount. Competitive Parity Method All you can afford Objective and task Method.

Distribution and Logistics Management : Distribution and Logistics Management

Logistics Management : Logistics Management Application of management principles to logistics operations for efficient and cost effective movement of goods and personnel. Logistics is the management of the flow of goods, information and other resources, including energy and people, between the point of origin and the point of consumption in order to meet the requirements of consumers (frequently, and originally, military organizations). Logistics involves the integration of information, transportation, inventory, warehousing, material-handling, and packaging, and occasionally security. Logistics is a channel of the supply chain which adds the value of time and place utility.

Distribution : Distribution Sales department’s function is greatly affected by the network of distributors. The sales force operates through a channel network of distributors. It is the part and parcel of geographical coverage. It is a pivotal for order generation. The number of outlets at each distribution level shapes the sales organization.

Channel of distribution : Channel of distribution Manufacturer > Consumer ( Dell, Eureka Forbes) Manufacturer > Retailers > Consumer ( SALE Through Big Bazaar) Manuf. > wholesaler > Retailer > Consumer ( Traditional Channel) Manuf. > Agent > Wholesaler > retailer > Con. ( A foreign brand’s Not having presence in that country) Manuf. > Chain store > Consumer

Sales Promotional Methods, Salesmanship and Selling Process : Sales Promotional Methods, Salesmanship and Selling Process

Methods of sales promotion : Methods of sales promotion Price Deals ( price-off, price cut, percents – off) Price packs ( bonus packs) Refunds & rebate ( both terms are used interchangeably) Coupons & Contest Product Sampling Trade Coupons & Trade allowances Premium ( free premium, free in the mail, Free , In Pack, On-pack, Near pack, Container Premium, Self liquidating Premium) Continuity Plans ( reward points) Exchange or Buy back offer Display, Trade Fair & Event Sponsorship

How to Plan and Evaluate a Successful Promotion : How to Plan and Evaluate a Successful Promotion

Steps in planning of a sales promotion plan : Steps in planning of a sales promotion plan Promotion choice : what promotion to use? Should the promotion be ‘ same for less’ or ‘more for the same’ Product Choice : which product, what pack sizes, or a model should be chosen to promote etc. Choice of market area : should the promotion be for regional markets or for the entire national market? Promotion Timing, duration and frequency : Rate of discount, terms and conditions: what should be the rate of discount? What would terms & conditions for participation, prizes, or premiums etc. Protection from Competition: is competition proofing required? What strategies will be used?

Sales Promotion Evaluation Methods : Sales Promotion Evaluation Methods Pre Testing : how sales promotion is to be communicated and what would be communicated to the target groups is important and can be pretested. Concurrent testing : is done when the sales promotion is in progress. Concurrent testing may permit the promotion manager to modify the sales promotion needed. Post Testing : is done after the promotion period is over, to assess the change in consumer awareness & attitude, telephone calls, Questionnaire mailed to consumer and personal interview can be used.

Consumer & Dealer Promotion : Consumer & Dealer Promotion

Consumer : Consumer Consumer is a broad label that refers to any individuals or households that use goods and services generated within the economy. The concept of a consumer is used in different contexts, so that the usage and significance of the term may vary. An individual who buys products or services for personal use and not for manufacture or resale. A consumer is someone who can make the decision whether or not to purchase an item at the store, and someone who can be influenced by marketing and advertisements. Any time someone goes to a store and purchases a toy, shirt, beverage, or anything else, they are making that decision as a consumer.

Consumer Promotion : Consumer Promotion Price Discount ( also called %-off deals) – A price reduction from regular price. Price packs ( bonus packs / Banded packs) – also called value packs. In bonus packs offer, an additional quantity of same or other product is offered free when the standard pack size of the product is purchased at regular price. In BANDED pack offer when two or more unit of a product are sold at a reduced price compared to regular price.( toilet soaps, tooth brush). Another version of this ‘ BUY ONE GET ONE FREE’. Rebate ( Also called refund) – A certain amount of money given back by the marketer when customer submit proof of purchase required. The term Coupons & Contest - Product Sampling, Free trials & Free Service Camps

Contd… : Contd… Premium ( free premium, free in the mail, Free In Pack, On-pack, Near pack, Container Premium, Self liquidating Premium) – Premium is a reward given to the consumer for performing a particular act, generally purchasing a product or services. The premium may be free or available to the consumer by paying a price well below the regular market price. Inpack : The premium is enclosed inside the product pack. Such premium are generally small & low priced, such as toy, steel glass bowl. On Pack : is attached outside of product package or to the product itself if no outer package used. ( tooth brush with tooth paste). Near Pack : The premium is bulky in size and hence cannot be attach to the product. ( 14 ltr bucket with 5 kg deterget). Container Premium : in this type of premium the product itself is packed in side the premium. ( nescafe in pet jar). Free in mail : in this consumer has to take some action to claim the premium, such as sending proof of a single or multiple purchase & wait for some time to receive the premium.

Contd.. : Contd.. Self liquidating : hp desk deskjet ke saath national geography library worth rs. 4999 in Rs.2999. AC ke saath stablizer worth rs. 2000 for rs.1200. Continuity Plans ( reward points) - Exchange offer - Pop Display - Low Interest Financing -

Dealer Promotion : Dealer Promotion More of same Product e.g. In Pepsi 36 bottle crate ( cola of four bottle free) Foreign Trips on achieving Target Discount on particular Slabs Painting Their Shops, Giving them Signboards Lucky Draw for Dealers / Contest Trade Show & Exhibitions External House Organs Push Money Trade Deals

Relationship Between Advertising and Promotion : Relationship Between Advertising and Promotion

Advertising & Promotion : Advertising & Promotion The basic difference between advertising and promotion is that :- advertising is strategically more long term, ‘turning’ the consumer towards the brand by creating positive brand attitude, While promotion is more short term, focusing on immediate sales.

Theoretical approach of selling & Classification of Salesmanship : Theoretical approach of selling & Classification of Salesmanship

Approach to selling : Approach to selling Selling is studied as cumulative experience of sales persons and advertising Professional. It include few theories AIDAS Theory, Right set of Circumstances Theory Buying Formula Theory Behavioural Equation Theory

AIDAS Theory : AIDAS Theory The popular AIDAS Theory is based upon the initials of the five letters which stand as:- A Attention I Interest D Desire A Action S Satisfaction

Right Set of Circumstances Theory : Right Set of Circumstances Theory This theory can summarized as ‘ everything was right for that sale’. It is called situation-response theory. The set of circumstances refer to both the internal and external factors working on the prospects. It puts the sales man in charge of the situation without paying any heed to the response generated.

Buying Formula Theory : Buying Formula Theory Need or Problem Product Brand Purchase Or Satisfaction Pleasant Feelings Adequacy

Contd.. : Contd.. This is buyer- oriented theory which seeks answer to why a consumer buys what he does. It emphasizes the problem solving job of a sales man. This theory takes into account the internal factors, and does not place all the importance on external factors. The purchase must lead to satisfaction to continue the buyer-seller relationship. it is a simply a problem, solution purchase theory. Problem solution can be either a product or brand. product or brand must be considered as adequate in solution must induce pleasant feelings. Both Adequacy and pleasant feelings can be simultaneously present.

Behavioural Equation Theory : Behavioural Equation Theory Howard explains buying behaviour as phases of the learning process resulting into purchasing. This is modified Stimulus-response(SR) model. Drives, cues, response, and re-inforcement are the four elements of the learning process. Drives – are strong internal stimuli which can be innate like – hunger, thirst, pain etc. Cues – are weak stimuli which decide when the buyer will respond. They can trigger the decision making or may not trigger it. Product cues are directly received from the product. Information cues provide information of a symbolic nature about the product.

Contd… : Contd… Response – is what buyer does. Reinforcement – Any event that strengthens this response is called Reinforcement. B( Response or purchasing) = P ( force or habit) X D ( drive level or motivation) X K ( value of the produce to provide satisfaction) X V ( Intensity of all cues)

Fundamentals of Successful Selling : Fundamentals of Successful Selling

Major Steps Involved In Selling : Major Steps Involved In Selling Prospecting and Qualifying Pre Approach & Approach Sales Presentation & Demo Handling Objection Closing Follow-Up & Maintenance

Steps in Personal Selling Process : Steps in Personal Selling Process Opening a call Need Exploration Presentation Handling objections Closing the sale Follow-up

Personal Selling : Personal Selling Personal Contact with the buyer in an oral fashion: Order Taking Order Getting Most Flexible and Individualized promotion device.

Push Money : Push Money Special monetary incentive to retail sales person to push particular line or branded goods. It is given by Manufacturer in addition to normal compensation received from retailers as special reward for selling manufacturer product. It is best used when retail sales people are a vital link in selling a product to the customer. Retailers must agree to let the manufacturer pay “ push money “ to its sales person’s. Some retailers might not agree to this practice as it can lead to over selling of a particular product & a possible unbalanced stock situation.

Ambush Advertising : Ambush Advertising An attempt by a party to associate itself directly or indirectly to one of said propitious circumstances by including given wordings, sounds and/or images in ads or promotions without proper authorization –and of course without paying- is called “ambush advertising” or “ambush marketing". ambush advertising is widely used in terms of promotions and/or use of elements for ads related to said competition. In Ambush advertising, in which one advertiser attack on its competitor by picking up its ad. Concept or idea. Ex. Adv. Of Cadbury Dairy milk & Attack by Nestle munch using same idea. & same in case of sprite & Pepsi advertising.

Tools for ConsumerSales Promotion : Tools for ConsumerSales Promotion Coupons Premiums and Gifts Subsidized financing Sampling Price Packs Contests

ADVERTISING & SALES PROMOTION : ADVERTISING & SALES PROMOTION