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ADVERTISING & SALES PROMOTION MANAGEMENT

ADVERTISING & SALES PROMOTION MANAGEMENT

A. ANANDA KUMARDepartment of Mgt. StudiesChrist College of Engg. & Tech.Puducherry, India.Mobile: +91 99443 42433E-mail: [email protected]

1

UNIT 1Advertising and Strategic Advertising DecisionsAdvertising Origin and Development Definition and Classification Planning Framework Organizing Framework The Advertiser and Advertising Agency Interface.Setting Advertising Objectives The Budget Decision Preparing the Product and Media brief.

MARKETING COMMUNICATION Marketing is the process of discovering and translating consumer needs and wants into product and service specifications, creating demand for these products and services and then in turn expanding this demand. Companies must also communicate with present and potential stake holders, and the general public. Thus, every company is inevitably cast into the role of communicator and promoter. For most companies, the question is what to communicate to whom, and how often, especially with the consumer.

MARKETING MIX

MARKETING MIXPRODUCTProduct VarietyQualityDesignFeaturesBrand NamePackagingSizesServicesWarrantiesReturnsPROMOTIONSales promotionAdvertisingPersonal SellingPublic relation/PublicityPLACEChannelsCoverage AssortmentsLocationsInventoryTransportPRICEList priceDiscountsAllowancesPayment periodCredit termsTargetMarket

Sales PromotionSales promotion is the dissemination or propagation of information in a very broad sense through a wide variety of activities, including free samples, gifts, coupons, point-of-purchase sings and displays, reduction sales, contests, shows and exhibitions, demonstrations etc.In other words, it includes those marketing activities other than personal selling and advertising.

PERSONAL SELLINGPersonal selling refers to the presentation of goods and services before the customers and convincing or persuading them to buy the products or services.Personal selling is a promotional method in which one party (e.g., salesperson) uses skills and techniques for building personal relationships with another party (e.g., those involved in a purchase decision) that results in both parties obtaining value.

PUBLICITYPublicity is the dissemination of information by personal or non personal means and is not directly paid by the organisation and for which the organisation is not clearly identified as the source.Publicity (a tool used in public relations) is non personal communication, that is typically in the form of a news story, that is transmitted through the mass media. The purpose of publicity is to draw favorable attention to a company and/or its products without having to pay the media for it.

ADVERTISING American Marketing association has defined advertising as any paid form of non-personal presentation and promotion of ideas, goods and services by an identified sponsor. According to the New Encyclopedia Britanica, advertising is a form of communication intended to promote the sale of the product or service to influence public opinion, to gain political support or to advance a particular cause.

ADVERTISING Advertising is a paid form of communication, although some forms of adveritsing, such as public service announcements (PSAs). Second, not only is the message paid for, but also the sponsor is identified. Third, most advertising tries to persuade or influence the consumer to do something. Although in some cases the point of the message is simply to make consumers aware of the product or company.

ADVERTISING Fourth and fifth, the message is conveyed through many different kinds of mass media reaching a large audience of potential consumers. Finally, because advertising is a form of mass communication, it is also non-personal.

Salient Features / Phrases of Advertising

# Any form# Paid form# Non-Personal # Goods, Services, Ideas# Identified Sponsor# Information# Persuasion# Target Audience

CHARACTERISTICS OF ADVERTISINGAdvertising is one of the methods of promotion mix.It is a paid mass communication, not aiming at a specific individual.It is a form of publicity, i.e., dissemination of information regarding a product, service or idea.It is salesmanship in writing or printed salesmanship.It is a mass non-personal communication. That is, communication is only through written, spoken or visual means, and not through persons.

ContIt is a sponsored publicity or communication i.e., the publicity has been deliberately sponsored, initiated or undertaken by a sponsor. It is paid for by the sponsor.The sponsor of advertisement (i.e., one responsible for it) is usually identified in the advertisement itself.It is undertaken to influence the buying behaviour of the customers.It guides the buyers towards a more satisfactory expenditure of their hard earned money.

ORGIN AND GROWTH OF ADVERTISINGAdvertising by word of mouth is probably the earliest form of advertising because, oral skills were developed well before reading and writing did. The origin of advertising as a public announcement is traceable to the town crier and the village drummer. These used their lungs to shout out their own or others messages. The messages could relate to government announcement or even to sales of goods on market days. Then there were signs on shops or drinking houses to indicate the name of the shop owner or of the shop

Cont1. Ancient Times up to 5th Century2. 5th to 8th Centuries3. 9th to 15th Centuries4. 16th and 17th Centuries5. 18th and 19th Centuries6. The 20th Century

1. Ancient Times up to 5th Century The artisans, bakers, shoe-makers, green-grocers and other merchants were eager to exchange their goods for money and advertising came to their timely help. Selling goods in ancient times involved personal selling abilities. Merchants needed to identify their places with a symbol that told their trade, and so the shop signs were born.

Cont The merchants impressed upon the minds of consumers of the qualities of their wares which was done by the hired criers or the barkers. Other form of communication was the wall signs. On the walls of the tall buildings near important gathering places were letter sign advertisements, entertainments, helped the location of taverns and goods for sale.

2. 5th to 8th Centuries The period from 475 AD to 800 AD is referred to as Dark Age. This is the period that starts with the downfall of Roman Empire and ends with the coronation of Charlemagne. It was furthered in the form of Voice. Public barkers equipped with the horns and bells were capable of attracting the attention of consumers. Advertising was done either by human voice and or by hand executed signs and play cards.

3. 9th to 15th Centuries The latter part of the Middle Age was a great and bold leap forward in human civilization and culture. These men developed a new gimmick of free samples. Printing originated in China and the oldest book printed was dated 868 AD. To increase in education was essential to the growth of advertising. New methods of advertising were now available like printed posters, hand-bills, signs, pamphlets, books and newspapers.

4. 16th and 17th Centuries During the 16th century, newspapers were largest among the prints and these newspapers were in the form of news-letters. The first news-letter was started in 1622 in England. Latter half of the 16th century witnessed newspapers in the form of news-books and were common by the middle of 17th century. The outstanding features of 17th century were that there were special advertising periodicals. By the end of 17th century, newspapers were well established in England undertaking advertising on a regular basis.

5. 18th and 19th Centuries The age old principle of Caveat Emptor ruled the transactions and hence the advertising that was resorted to was untruthful. That is why, the people did not believe totally in the advertisement message given. Buyers were to be cautious and diligent in buying the goods so advertised. The 19th century was marked by a new trend of brand advertising. Magazines both weeklies and monthlies started catching the imagination of the people by popularising the brands.

6. The 20th Century The current century is marked with the advent of two fascinating media of communication namely, radio and television. Americans have the credit of having these first. Radio ruled the scene from 1922 to 1947 and 1948 onwards, television took over. Television could beat radio advertising with the visual effects. The outdoor advertising has its own developments such as travelling displays, sky-writing, painted displays.

CLASSIFICATION AND TYPES OF ADVERTISING1. Product Related AdvertisingA. Pioneering AdvertisingB. Competitive AdvertisingC. Retentive Advertising2. Public Service Advertising3. Functional ClassificationA. Advertising Based on Demand Influence Level.i. Primary Demand (Stimulation)ii. Selective Demand (Stimulation)B. Institutional AdvertisingC. Product Advertising

i. Informative Product Advertisingii. Persuasive Product Advertisingiii. Reminder-Oriented Product Advertising4. Advertising based on Product Life CycleA. Consumer AdvertisingB. Industrial Advertising5. Trade AdvertisingA. Retail AdvertisingB. Wholesale Advertising6. Advertising Based on Area of operationA. National advertisingB. Local advertisingC. Regional advertising7. Advertising According to Medium Utilized

i. Pioneering AdvertisingThis type of advertising is used in the introductory stages in the life cycle of a product. It is concerned with developing a primary demand. It conveys information about, and selling a product category rather than a specific brand.

ii. Competitive Advertising:It i