ASM (MB-904) 1

Advertising and Sales Management

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Assessment Parameters

2MM_MB 204_Preeti Virdi

Parameters Maximum Marks

Mid Semester Tests 24

Attendance 6

Class Tests 4

Assignments 6

TOTAL 40

Books and Reference

3MM_MB 204_Preeti Virdi

Title Author Publisher

Foundations of Advertising Chunawalla, Sethia Himalaya Publishing

House

Advertising and Sales Management C.N. Sonatakki Kalyani Publishers

Advertising Management Batra, Myers, Aaker Pearson Publishers

Advertising Management Manendra Mohan Mc Graw Hill

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What is Advertising?

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When to advertise

• A shop wants to attract more customers or clear stocks, so it decides to offer special discounts for a period. It advertises in the daily newspapers to inform the public of its “sale”.

• A company brings out a new product which is much more economical than the existing ones in its category. If the company cannot advertise the product, it would never be able to enter the market. Any other form of communication would be long drawn out and uneconomical.

• The Government wants corporate, businessmen and salaried people to pay taxes. It advertises in newspapers, radio and television to reach the target audience.

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Companies use advertising for: Inform people about their products and services to

make their brand names familiar to the public

To give the company a “personality” which sets it apart from the others.

To remind customers about their brands at the right time and right place

To tell the public about improvements in products

To help their sales force to be more effective

To reinforce customer confidence in his/her purchaseGJSM

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Advertising

the delivery of the most persuasive

product message at the right time, in the right place,

to the right person, at the lowest possible cost

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Advertising is:

Paid form of non-personal communication about an organization, product, service or idea from an identified sponsor, using mass media to persuade or influence an audience

The paid aspect of this definition reflects the fact that the space or time for an advertising message must be bought.

The non-personal component means that advertising involves mass media (eg. TV, radio, magazines, newspapers) that can transmit a message to large groups of individuals, often at the same time.

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Advertising is:

The non-personal nature of advertising means that there is generally no opportunity for immediate feedback from the message recipient (except in direct response advertising)

Therefore before the message is sent, the advertiser must consider how the audience will interpret and respond to the message

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Advertising is:

(1) Paid

(2) Non-personal Communication

(3) from An Identified Sponsor

(4) using Mass Media

(5) to Persuade or Influence

(6) an Audience.

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Role of Advertising: Organization

• To differentiate itself from other offerings

• To communicate information about the product to prospective customers• To persuade consumers to try new products and to suggest reuse

• To stimulate the distribution of a product and its usage

• To build brand preference and loyalty

• To increase sales turnoverGJSM

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Role of Advertising: Consumer

•To identify a product offering from many

•To get information regarding the product offering

•To act as a driving force in decision making

•To ensure better quality products at reasonable prices

•To save consumer’s time

•To act as a catalyst for change

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Advantages of Advertising

Information to Consumers Brand Image building Reduction of risk of Innovation Growth of new media frontiers

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Advertising Industry

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THE BUSINESS ENVIRONMENT

THE BUSINESS ENVIRONMENT

GOVERNMENT RULES AND REGULATIONS

GOVERNMENT RULES AND REGULATIONS

SUPPLIERS OF INFORMATION (ADVERTISERS)

SEEKERS OF INFORMATION (CONSUMERS)

ADVERTISING AGENCY

CHANNEL OWNERS/MEDIA

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Advertiser

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Uses advertising to send out a message about its products

Initiates the advertising effort by identifying a marketing problem

Approves audience, plan and budget

Hires the advertising agency

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Advertising Agency

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Has strategic and creative expertise, media knowledge, workforce talent, and negotiating abilities• Advertising department• In-house agency

Key services rendered by the agency• Creation and development of

advertisements• Selection and placement of

advertisements in the media

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Media Owners

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The channels of communication that carry the message to the audience

Are usually companies or huge conglomerates

Mass media advertising can be cost effective because the costs are spread over the large number of

people the ad reachesCombination of media channels for

effective message

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Suppliers

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Assist advertisers, agencies, and the media in creating and

placing the ads

Vendor services are often cheaper than those in-house

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Audience/ Consumer

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The desired audience for the advertising message – individuals

and consumers

Data-gathering technology improves accuracy of information about

customers

Advertisers must recognize the various target audiences they are

talking to and know as much about them as possible

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Government

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Elected officials pass laws that have a bearing on the Industry

Officials issue rules and regulations that influence the

behaviour of the media, advertisers, agencies – directly and the consumers – indirectlyThe courts of law establish the

rules of behaviour through individual and organizational cases

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Nature of Advertising

Advertising shall occur when: The product possess unique, important features

to focus on Unique Selling Point (USP) The hidden qualities important to the buyers The general demand trend for the product is

adequate The market potential for the product is

adequate The competitive environment is favourable The organization is able and willing to spend the

required money to launch an advertising campaignGJSM

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Advertising is salesmanship mass produced. No one would bother to use advertising if he could talk to all his prospects face-to-face. But he can't. 

Morris Hite 

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Advertising Objectives

Advertising, can be used to address several broad objectives including: Building product awareness, Creating Interest, Providing Information, Stimulating Demand and Reinforcing the Brand.

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Basic Objectives To inform: This type of advertising is heavily used

in the pioneering stage of a product category, where the aim is to build primary demand.

To Persuade: when the product is in the competitive stage, where the company’s objective is to build selective demand for a particular brand.  

To Remind: when the product is in the maturity stage. They are intended to remind people to purchase the brand.

To Reinforce: It seeks to ensure the buyers that they have made the right choice by purchasing the brand.

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Broad Objectives

Launch of new product/service:- To inform consumers about new product launching.

Expansion of market to new users:- To inform about company’s market expansion.

Announcement of product modification:- To inform about product modification.

Announcement of dealer’s location:- To inform about place where the product is available.

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Broad Objectives

Announcement of special offers:- To inform about latest/special offers.

To educate the customers:- To tell about what are the benefits from the product and how to use that.

To create social responsibility:- To make customer social.