Promotiondecision Rahul

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Paper: B. Com H -305 Marketing Management

Lesson No. 9 Author : Dr. Tejinder Sharma

"Developing an optimal promotion mix. Budgeting for promotional strategy"

9.1 Introduction

9.2 Type of Promotion Methods

9.3 Promotion Decisions and strategies

9.4 Introduction promotion mix

9.5 Promotional communication system

9.6 Factors affecting promotion mix

9.7 Elements of promotion mix

9.8 Advertising

9.9 Developing and managing an advertising program

9.10 Summary

9.11 Keywords

9.12 Review Question

9.13 Further Readings

9.0 Objectives

This lesson shall familiarize you with the promotion mix concept and advertising.

9.1 Introduction

Effective communication is the essence of promotion. In the age of information

marketing is in complete without effective communication with the prospective buyer

about the right product at the price that is available at the right place. Marketers must

communication the product, its features, etc to the right target customers by formulating

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right message in the language that is understood by them proper communication requires

advertising, sales promotion, personal selling ,direct marketing, and public relations.

Thus marketer has to use complex marketing, and public relation. Thus marketer has to

use complex of customer. Communication is the responsibility of manufacturers,

distributer, wholesaler, retailer or all in the channel.

Promotion is an important part of the marketing-mix of a business enterprise. It is the

spark plug of the marketing-mix. Promotion is a process of communication involving

information, persuasion, and influence. It includes all types of personal or impersonal

communication with customer as well as middlemen in distribution. The purpose of

promotion is to inform, persuade and influence the prospective customers. Personal

selling, advertising , publicity and sales promotion are widely used to inform the people

about the availability of products and create among them the desire to buy the products.

9.2 Types of promotional methods

There are many methods of sales promotion, including:

Techniques:

Money off coupons customers receive coupons, or cut coupons out of newspapers or a

products packaging that enables them to buy the product next time at a reduced price

Competitions buying the product will allow the customer to take part in a chance to

win a prize

Discount vouchers a voucher (like a money off coupon)

Free gifts a free product when buy another product

Point of sale materials e.g. posters, display stands ways of presenting the product in

its best way or show the customer that the product is there.

Loyalty cards e.g. Nectar and Air Miles; where customers earn points for buying

certain goods or shopping at certain retailers that can later be exchanged for money,

goods or other offers

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Methods:

Personal Selling: Involved personal contact between company person and those

who make purchase decisions (e.g. consumers, manager or company buyer). Selling

occurs face-to-face or via telephone and also now online via video conferencing or text

chat.

Advantage: In personal selling a very large advantage is that the salesperson can change

and/or adjust the message their promoting or pitch their attempting to sell as they gain

feedback from consumers. In the event that a consumer doesn't fully understand the

original message, the salesperson can respond differently in order to address any of the

questions or concerns of their customer.

Disadvantage: In personal selling it's advantage can also be its biggest

disadvantage. Many people have bad experiences with salespeople who didn't match the

personality that would effect their customers the best. Some sales person's could be

overly aggressive or had a tendency to be annoying or repetitive.

Direct Marketing: Involves sending mail direct to the customer, Direct mail can

be cheaper than traditional advertising; you can tailor your message, add more

information and better target your market. Typically Direct mail advertising should be;

personal, creative, informal and selectively directed (not sent to everyone in a database).

Advantage: An advantage to direct marketing is that it is very quick and easy to

produce. A company can prepare and mail a small promotion within days or weeks.

Direct mail would be an effective method of testing new products and prices, seeking

response from customers, while still maintaining control over which customers receive

their promotion and the offer included in the promotion.

Disadvantage: A very large disadvantage to direct marketing revolves around the term

"Junk mail". A large number of consumers become annoyed by the constant influx of

direct marketing to their mailbox. By using direct mail, a company risks causing the

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customers it seeks to gain to become hostile or unsympathetic to their cause and

disregard their promotion.

Advertising: Non personal, mostly paid promotions often using mass media to deliver

the message. The variations of advertising include; TV, Newspaper, Magazine, Internet

and Outdoor advertising (E.g. billboard, posters, buses, etc.)

Advantage: A large advantage to advertising is that it alerts a large populous of

consumers of the products that may or may not satisfy what the consumers is looking for

and by doing so increases the customer traffic and allows a company to quickly

determine who their target market is and what their looking for in their product.

Disadvantage: Advertising to some customers can be intrusive or invasive and its

effectiveness may have less of an effect depending on the market the company is selling

in. If the market is already flooded with several other companies that are all using

advertising as their promotion, customers may or may not notice your company due to

the large amount of competition.

Public Relations: This type of promotion uses third-party sources and particularly the

news media, to offer a favorable mention of the marketer's company or product without

direct payment to the publisher of the information.

Advantage: An advantage to using public relations as a form of promotion is that a

well-structured campaign done by a large third-party source can result in the target

market being exposed to a wealth of information that they may not receive from other

forms of promotion.

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Disadvantage: A disadvantage to public relations is that the impact of traditional news

has lost a great deal of hold over the public and due to this the audience companies had

intended to be reached by their promotion may never see the media coverage.

Sponsorship: Supporting an event, activity or organization by providing money or other

resources that is of value to the sponsored event. This is usually in return for advertising

space at the event or as apart of the publicity for the event. (E.g. TV/ Radio, Sports,

Arts, Events, Charity/Causes.)

Advantage: An advantage to sponsorship is the chance of getting free publicity in the

form of other types of promotion, for example should their be an event involving live

broadcasting where a company has sponsored a sport or charity their product name would

show up on the broadcast to a wider audience than originally intended.

Disadvantage: A disadvantage to sponsorship is the pricing involved can become

tremendously expensive in relation to other forms of promotion such as advertising and

not reach the same amount of a companies target audience. For example if the sponsored

individuals loose or were to have something happen to them to cause the public to

disprove of them and your brand image were to be seen on them could cause negative

publicity to be spread to your company.

Sales Promotion: Involves the use of special short-term techniques, often in the form of

incentives, to encourage customers to respond or undertake some activity. (E.g. Sales

flyers/ price discounts, Coupons, Samples/giveaways, special events and point of sale)

Advantage: As sales promotions are often mostly announced to only last for short

periods, customers may feel the need to disregard alternative brand's and are persuaded to

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act quickly in the purchasing of a product rather than later.

Disadvantage: A common occurrence for companies is the increase in price sensitivity in

its customers if a large amount of price discounts or coupons are introduced. Often

customers will wait for the promotional deals to be announced and then purchase the

product, causing the profit margin of the company to decrease because of the 'discounts'

being offered during sale-season.

Digital Communications: Any promotion made for web, cell phone or digital

device (E.g. tablets, game systems etc.) These include; Online advertising,

mobile communications, advergaming, social media, consumer-generated content and

viral strategies.

Advantage: The use of digital communication is very inexpensive as their are very little

materials used in the creation of digital advertisement. The amount of employee's

required to create the promotion is dramatically decreased and overall the promotion type

is very cost efficient and easy to effect a large populous.

Disadvantage: The sending of fake promotions to consumers has caused a mistrust in

this form of promotion. Due to the malicious content generally associated with digital

communication many consumers become wary of this type of promotion and due to this

the audience intended to be effected by a companies promotions may fall short.

9.3 Promotional Decisions and strategies

The selection of a promotional mix is directly related to the promotional strategy the firm

will employ. The marketer has two alternative strategies available to meet these goals:

pushing strategy or pulling strategy.

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Pushing strategy: A pushing strategy is a sales-oriented approach. The product, product

line, or service is marketed to wholesalers and retailers in the marketing channels. Sales

personnel explain to them why they should carry this particular item or service. The

marketing intermediaries are usually offered special discounts, promotional materials,

and cooperative advertising allowances. In the last case, the manufacturer shares the cost

of local advertising of the product or line. All these strategies are designed to motivate

wholesalers and retailers to "push" the product or service to their customers

Pushing Strategy: A pulling strategy attempts to generate consumer demand for the

product, product line, or service, primarily through advertising and sales promotion

appeals. Most advertising is aimed at the ultimate consumer, who then asks the retailer

for the product or service; the retailer in turn requests the item or service from the

supplier. The marketer hopes that strong consumer demand will "pull" the product or

service through the marketing channel by forcing marketing intermediaries to carry it.

Most marketing situations require the use of both strategies, although the emphasis can

vary. Consumer products are often heavily dependent on a pulling strategy, while most

industrial products are sold through a pushing strategy.

9.4 Promotion mix concept

The term Promotion-Mix is used to refer to the combination of different kinds of

promotional tools used by a firm to advertise and sell its products. The main promotional

tools or activities which make-up the promotion-mix are:

Personal Selling

Advertising

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Public Relations

Publicity

Sale Promotion

The modern business cannot depend upon a single promotional tool. They have to make

use of all the promotional tools in different degrees depending upon the nature of

product, nature of competition and kinds of customers. The marketing manager is

supposed to decide about the use of various promotional activities and allocate budget for

them. While taking a decision about promotional-mix, two factors need adequate

consideration.

9.5 Marketing communication system

In the traditional manner, the communication between two humans involves a simple

process which is as follows

Sender > Encoding > Message > Decoding > Receiver

Like the above human model, Marketing communications too involves a communication

message being sent from the Sender (which can be a company, product or a brand) to a

receiver (who can be an audience, your target group, stakeholders or anyone whom you

want to target your message)

Sender: In marketing communications, there are two main entities Sender and

Receiver. The sender may be the company wanting to target the consumer group. The

receiver is the consumer himself. There are several features which you need to know

about the sender and receiver before the communication process begins, like their

demographics, financial power and their compatibility.

Encoding: The message needs to be bundled in the right format for the sender to send the

appropriate message to the receiver. This is known as encoding. In

marketing communications, this is where advertising agencies play an important role.

Depending on the choice of the sender, the creative ad agencies encode the message in

the proper format. The format depends on the type of media vehicle being used to

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deliver the communication message. Thus, you will find that a radio message, a TV

message or a print message are encoded differently as all of them have their own pros and

cons. Whatever media vehicle / message format you may use, the focus message needs to

be the same.

Message: During marketing communications, there are various ways in which the

message can be sent to the end customers. Television and print is known to have the

highest retention and hence advertisers use them the most. Other then these 2, there is

radio marketing, online marketing, out of home media, banner advertising, so on and so

forth. Any of these media vehicles can carry your message. The important point here is

that the message should reach to as large a target audience as possible. In the sales funnel,

the more prospects you have the more would be the conversion rate. Thus the objective ofa message is to reach as many prospects as possible. A proper message can immediately

connect you with your target group, build a betterbrand positioning, and thereby give an

immediate boost to your organization. Marketing communications messages can be of

various types. Some of the normally used ones are

Introducing a new product

Creating awareness

Building brand image

Sales promotion offers

A marketing message therefore needs to be altered on the basis of these three

fundamental factors

a) Media vehicle to be used

b) What is the objective of the message

c) Which is the target group

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Decoding: Decoding a message is not in the hands of the sender. It is instead done by the

receiver. All the sender can do is encode the message as best as he can and ensure that it

reaches the receiver. The receiver than decodes the message.

Receiver: The receiver is the one making the decision after decoding the message. In

other words, the receiver is your end customer / prospect. Thus the receiver is a very

important entity in the marketing communications process. Ideally, the receiver should

act on the message he has received. Thus if your message was of a sales promotion, your

receiver will go ahead and purchase the product. However, as in any situation, there are

different variants of receivers. Some will completely ignore the message, some will use it

for reference later and others will act on it. To make sure that the receiver acts on the

message, integrated marketing communications is used. The same message is sent indifferent formats through various media vehicles. The receiver receives the same message

in differently encoded format and decodes it. This is why nowadays advertising

frequency plays an important role in converting prospects to customers. As FMCG

companies have the maximum consumer interactions, they are known to use integrated

marketing communications in the best manner.

Feedback: Feedback is gaining importance with the noise that happens due to too many

products being advertised. Thus after an ad campaign for increasing awareness of a

product, the company can take market feedback to know what percentage of target

customers are aware of the new product. This feedback will tell the company whether its

advertising strategy was right or wrong. In the end, you have to understand that

marketing communications is not just an interaction between the company and the end

customer. Rather it involves the presence of numerous entities. Marketing

communications is an art in itself. A significant amount of an organizations resources are

used to ensure that the right message reaches the end customers and the end customer

acts in a desired manner

9.6 Factors Affecting Promotion-Mix

There is no tailor-made promotional mix for a firm. Every firm has to design its own

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promotional-mix i.e. to determine the various promotional tools to be used for promoting

the sales of its products. The most striking feature of the promotional tools is their cross-

substitutability calls for treating various promotional tools in a joint decision framework.

Promotional Strategy is determined by the product-market strategy and overall marketing

strategy. Various combinations, types and degrees of personal selling, advertising and

other forms of promotional tools are brought together into a promotional mix to develop

the promotional strategy. For each component of the promotional mix, management has

to set objectives, determine policies and formulate strategies.

The managerial decision about the promotional- mix of a firm is influenced by the

following factors:

Nature of Product

The type of promotional mix will differ depending upon the nature of the product. In

case of sale of consumers products, advertising, publicity and sales promotion are

necessary in addition to personal selling. But in order to push up industrial goods,

personal selling is much more effective because its market is easily identifiable, products

are often made to specifications and a great deal of pre-sale and after-sale services are

required to sell and install the product.

Product Image

Prestige goods rarely use coupons or point-of purchase-displays.They may occasionally

arrange sales. However, there may be great usage of freebies.

Pricing Policy:

The pricing of product can broadly decide the type of promotional-mix.

Level of competition

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The type of competition existing in the market is one of the factor which can affect the

penetration of the product/brand into the market. The promotional efforts must match the

level of competition and there is generally tendency to go for high advertising, sales

promotion and personal selling, when there is highly competitive marketing environment.

Geographical Coverage

In case of wide market coverage, advertising and sales promotion are desirable. For

example, to inform that the Colgate toothpaste is widely available at competitive prices,

high promotional campaign is launched by Colgate Palmolive Company.

Promotional Budget

The allocation of funds by the top management for the promotional activities must be

kept in mind by the marketing manager while determining the promotional mix. A firm

with huge promotional budget can spend on all promotional activities. But a marketer

with financial constraints will be selective in the use of promotional activities. Personal

selling is cheaper and more effective in short-run. Advertising in reputed magazines and

journals is very costly, but can attract the status conscious customers towards the product.

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9.7 Elements of Promotion Mix

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There are seven main elements in a promotional mix. They are:

1. Advertising - Any paid form of non-personal communication through mass

media about a service or product or an idea by a sponsor is called advertising. It is

done through non personal channels or media. Print advertisements,

advertisements in Television, Radio, Billboard, Brouchers and Cataloges, Direct

mails, In-store display, motion pictures, emails, banner ads, web pages, posters are

some of the examples of advertising. Paid promotion and presentation of goods,

services, ideas by a sponsor comes under the advertisement.

2. Personal Selling - This is a process by which a person persuades the buyer to

accept a product or a point of view or convince the buyer to take specific course of

action through face to face contact. It is an act of helping and persuading through

the use of oral presentation of products or services. Target audience may very from

product to product and situation to situation. In other words personal selling is a

person to person process by which the seller learns about the prospective buyer's

wants and seeks to satisfy them by making a sale. Examples: Sales Meetings, sales

presentations, sales training and incentive programs for intermediary sales people,

samples and telemarketing etc. It can be of face-to-face or through telephone

contact.

3. Publicity: Non-personal stimulation of demand for a product, service or

business unit by generating commercially significant news about it in published

media or obtaining favourable presentation of it on radio, television or stage.

Unlike advertising, this form of promotion is not paid for by the sponsor. Thus,

publicity is news carried in the mass media about an organization, its products,

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policies, actions, personnel etc. It can originate with the media or the marketer,

and is published or broadcast at no charge for media space and time. Examples:

Magazine and Newspaper articles/reports, radio and televison presentations,

charitable contributions, speeches, issue advertising, and seminars. Publicity can

be favourable (positive) or unfavourable (Negative). The message is in the hands

of media and not controlled by the organization/firm.

4. Sales promotion - is any activity that offers an incentive for a limited period to

obtain a desired response from the target audience or intermediaries which includes

wholesalers and retailers. It stimulates consumer demand, market demand and

improve product availability. Examples: Contests, product samples, Coupons,

sweepstakes, rebates, tie-ins, self-liquidating premiums, trade shows, trade-ins, and

exhibitions.

5 Corporate image - It is important to create a good image in the sight of general

public as the Image of an organization is a crucial point in marketing. If the

reputation of a company is bad, consumers are less willing to buy a product from

this company as they would have been, if the company had a good image.

6 Exhibitions: Exhibitions provide a chance to try the product by the customers. It

is an avenue for the producers to get an instant response from the potential

consumers of the products.

7 Direct Marketing is reaching the customer without using the traditional channels

of advertising such as radio, newspaper, television etc. This type of marketing

reaches the targeted consumers with techniques such as promotional letters, street

advertising, catalogue distribution, fliers etc.

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9.8 Advertising

Advertising is the dissemination of information concerning an idea, product or service to

induce action in accordance with the intent of the advertiser. According to William .J.

Stanton, Advertising consists of all the activities involved in presenting to an audience a

non-personal, sponsor-identified, paid-for message about a product or organization.

Advertising is any paid form of non-personal presentation and promotional of ideas,

goods or services of an identified sponsor. However , since every form has limited

resources, it cannot advertise industry , it must evaluate whether the advertisement has

achieved its objectives or not. Some of the techniques of measuring ad-effectiveness are

explained in the following discussion.

9.8.1 Role of Advertising

Advertising has become an essential marketing activity in the modern era of large scale

of production and serve competition in the market. It performs the following functions:

Promotions of Sales

It promotes the sale of goods and services by informing and persuading the people to buy

them. A good advertising campaign helps in winning new customers both in the national

as well as in the international markets.

Introduction of New Product

It helps the introduction of new products in the market. A business enterprise can

introduce itself and its product to the public through advertising . A new enterprise cant

make an impact on the prospective customers without the help of advertising. Advertising

enables quick publicity in the market.

Creation of Good Public Image

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It builds up the reputation of the advertiser. Advertising enables a business firm to

communicate its achievement in an effort to satisfy the customers needs. This increases

the goodwill and reputation of firm which is necessary to fight against competition in the

market.

Mass Production

Advertising facilitates large-scale production. Advertising encourages production of

goods in large-scale because the business firms knows that it will be able to sell on large-

scale with the help of advertising. Mass production reduces the cost of production per

unit by the economical use of various factors of production.

Research

Advertising stimulates research and development activities. Advertising has become a

competitive marketing activity. Every firm tries to differentiate its product from the

substitutes available in the market through advertising. This compels every business firm

to do more and more research to find new products and their new uses. If firm does not

engage in research and development activities, it will be out of the market in the near

future.

Education of People

Advertising educate the people about new products and their uses. Advertising message

about the utility of a product enables the people to widen their knowledge. It is

advertising which has helped people in adopting new ways of life and giving-up old

habits.

Support to Press

Advertising provides an important sources of revenue to the publishers and magazines. It

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enables to increase the circulation of their publication by selling them at lower rates.

Manufacturers and Traders

Advertising helps in introducing new products. A business enterprise can

introduce itself and its products to the public through advertising.

It can create new taste among the public and stimulate them to purchase the new

product through effective advertisement.

Advertising assists to increase the sale of existing products by entering into new

markets and attracting new customers.

Advertising help in meeting the forces of competition in the market-place. If a

product is not advertised continuously, the competitors may snatch its market

through increased advertisements.

Advertising is used to increase the goodwill of a firm by promising improved

quality to the customers.

Customers

Advertising helps the customers to know about the existence of various products

and their prices. They can choose from the various brands to satisfy their wants.

Thus, they cannot be exploited by the seller.

Advertising educates the people about new products and their diverse uses.

Advertising increased the utility of existing products for many people adds to the

amount of satisfaction which they are already enjoying.

Advertising induces the manufacturers to improve the quality of their products

through research and development. This ensures supply of the products of better

quality to the consumers

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Society

Advertising provides employment to persons engaged in writing, designing and

issuing advertisements. Increases employment brings additional income with the

people which stimulates more demand. Employment is further generated to meet

the increased demand.

Advertising promotes the standard of living of the people by increasing the

variety and quality in consumption as a result of sustained research and

development activities by the manufacturers.

Advertising educates the people about the various uses of different products and

this increases their knowledge.

Advertising also helps in finding customers in the international market which is

essential for earning foreign exchange.

9.8.2 Types of advertising

Advertising is also classified according to their functions and role. Some of the important

classifications of advertising are as follows:

1. Social Advertising: Social Advertising is undertaken by noncommercial organisations

such as Trust, Societies, Associations etc. The main objective of Social Advertising is to

work for social cause. Advertisements for collecting donations for war victims or for

victims of natural calamities, sales of tickets for a show etc. are examples of Social

Advertising.

2. Political Advertising: Political advertising is undertaken by political parties to

motivate the general public in favour of the ideology of the party in question. Political

advertising are intensively made during election times to gain favour of the voters.

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3. Advocacy Advertising: We often come across advocacy advertised relating to the use

of family planning methods. Conservation of scarce resources, maintaining green

environment.

4. Retail Advertising: Retail advertising is the advertising by retailers who usually sell

goods direct to the customers. Retail advertising has such objectives as: (i) to sell the

stock; (ii) to establish the identify of business; (iii) to attract personal, telephone or mail

order shoppers. Retail advertising is done through window display, neon signs, posters,

leaflets etc. It is usually local in character

5. Corporate Image Advertising: Corporate Image advertising designed or aimed to

create a proper attitude towards the seller and to build goodwill or image for the

advertiser (manufacturing concern or the selling concern) rather than to sell a specific

product or service. Institutional advertising is done to build good public relations image

in the market for the marketer and a patronage for its product or products.

6. Institutional Advertising: The object of institutional advertising is to build

manufacturers reputation in the minds of the public in general. The advertising message

is directed to tell about the Company, its people, its contribution in promoting social

welfare activities, in promoting consumer satisfaction its achievements in technology its

broad philosophies, its share in economic progress of the Company etc.

7. Product Advertising: Product Advertising refers to the advertising of tangible

product. It is for the marketing of the product advertising as a powerful instrument has

emerged. A product may be anything in which a trader deals or trade. A product may be

tangible of intangible. Products like radio, soap, pen cloth etc. are tangible products and

services of professional people like doctors, lawyers, engineers etc. are intangible

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products

8. Service Advertising: Service advertising is designed to operate in the public interest.

It is undertaken to seek public welfare and social development. It is in the nature of non-

commercial institutional advertising. In this type of advertising, the objective is to put

across a message intended to change attitudes or behavior and, as a result, benefit the

public at large. It is generally used by government and other organisations to promote

public welfare

9. Advertising at Pioneering Stage: Advertising at pioneering stage is undertaken to

make the audience fully aware of the new brand of product and to inform, influence, and

persuade them to buy, or, use it by highlighting its unique features.

10. Advertising at Competitive Stages: Once the brand survives the introductory stage,

it has, soon to face a stiff competition with other well established brands in the market. At

this stage, competitive advertising is undertaken to promote sales effectively.

11. Advertising at Retentive Stage or Reminder Advertising: When the product has

captured a large share of the market,retentive advertising is undertaken to maintain, or

retain the stableposition in the market as long as possible. Moreover, if the sameproduct

is passing through the declining stage in the market, this type of advertising is used to

remind the buyers about the product hence, it is also known as reminder advertising.

9.8.3 Pre-requisites of effective advertising

Goodadvertising is that which achieves its objectives.

It should have the following features:

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1. It must be able to attract the customers attention to the advertisement. An

advertisement which goes unnoticed by existing or potential customers is a waste of

money.

2. The customer should read or listen to or view the advertisement. The purpose of

advertisement to educate the customers can be achieved, only if the message contained in

the advertisement is properly communicated to them.

3. The customer should act in the desired manner.

The aim of advertising is to create and sustain demand for goods and services.Good

advertising is one which is able to create and sustain demand for goods and services.

Requisites of Effective advertising

Good advertising requires that advertising be undertaken on a scientific basis, so that it is

both effective and efficient. In other words, the advertising programme should be so

designed that the objectives of advertising are achieved at the least cost. A scientifically

designed advertisement programme involves the following four phases:

(i)Investigation Phase : This phase involves collecting facts on the following matters

(a) The customers, both the existing or prospective, to whom advertising is to be directed.

(b) The needs and requirements of customers and how the product to be advertised will

meet these requirements.

(c) Factors or reasons that motivate customers to buy a product.

(ii) Budgeting and media planning : This phase involves determining the amount of

money to be spent on advertising programme and the media to be used.

(iii) Implementing the advertising programme :

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This phase involves actual advertising. It involves preparation of an advertisement copy

and its communication to the customers through the selected media.

(iv) Ascertaining performance : This phase involves finding out the

9.9 Managing Advertising Effectiveness/Campaign

In managing the advertising programme, company should carefully evaluate the

effectiveness of previous ads and use the results to improve the quality of future ads. It is

however, the most demanding task facing an advertiser. But there is difficulty of

evaluation because ads have different objectives and ads can have an effect over time.

Testing ad effectiveness can be done either before or after the campaign.

Pre-Test

These tests estimate the likely effective was of an advertisement before it is released.

These tests are used to determine the based appeal, layout and media. Some common

pretests are as follow:

Consumer jury test- it uses a panel of consumers from the target market. They rank the

ads by perceived effectiveness and explain their ranking and their reaction to each ad.

Portfolio or unfinished rough test-The purpose is to evaluate print advertising.

Consumers are asked what ads they remember. Then they respond to questions about

specific ads. It also helps in measuring the effectiveness of proposed television

commercials.

Physiological Tests

Consumers have involuntary physical reactions to advertisements.

Physiological Tests

Measure these human responses, using galvanic skin response tests, eye movement

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experiments & pupil dilation measurements.

Post-Test

After advertiser implements a campaign, they often conduct test to measure its

effectiveness. The post effectiveness of a campaign usually tested through the following:

Recognition Tests- It is used to measure the effectiveness of magazine advertising .

Aided Recall asking people if they can recall seeing any ad for a particular, brand with

help of clues.

Unaided Recall asking people if they can remember seeing any ad within a identified

product category, without providing any clues.

Attitude Measures Often attitude measures are incorporated into recall and recognition

tests. For example, interviwers may ask interviewees multiple- choice questions such as

the following:

How did the advertisement affect your desire for the product?

Increased very much

Increased somewhat

Decreased some what

Decreased very much

Unaffected

9.10 Summary

Advertising helps in spreading information about the advertising firm, its products,

qualities and place of availability of its products, and so on. It helps to create a non-

personal link between the advertiser and the receiver of the message. The significance of

advertising has increased in the modern era of large scale production and tough

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competition in the market. Advertising is needed not only by the manufacturers and

traders but also for the customers and the society.

Key Words: Promotion, Promotional mix, marketing communication. Advertising

9.12 Review Questions

Q.1 What is promotion? What are the important objectives of promotion?

Q.2 What do you understand by advertising? Discuss?

Q.3 Examine the role of advertising?

Q.4 Examine the Utility of Advertising in the business world?

Q.5 Discuss various types of advertising.

9.13 Further Readings

Sengupta, Subroto, Cases in Advertising and communications management in India.

Kotler, Philip Marketing Management

Kotler,Philip, and Gary Armstrong, Principles of Marketing.

Date post:	14-Apr-2018
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Promotiondecision Rahul

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