SHRI KRISHNASWAMY COLLEGE FOR WOMEN

ANNA NAGAR CHENNAI-600040

BBA- III YEAR

SHIFT I
ADVERTISING AND SALES PROMOTION
COURSE CONTENT

PREPARED BY
R. GAYATHRI
MLM.,MHRM.,
Asst Professor
 ADVERTISING AND SALES PROMOTION

UNIT – I

INTRODUCTION

Adverting is only one element of the promotion mix, but it often

considered prominent in the overall marketing mix design. Its high visibility and
pervasiveness made it as an important social and economic topic in Indian
society.

Advertising may be defined as the process of buying sponsor-identified

media space or time in order to promote a product or an idea. The American
Marketing Association, Chicago, has defined advertising as “any form of non-
personal presentation or promotion of ideas, goods or services, by an identified
sponsor.”

Promotion may be defined as “the co-ordination of all seller initiated efforts to

set up channels of information and persuasion to facilitate the scale of a good or
service.”

Promotion is most often intended to be a supporting component in a marketing

mix. Promotion decision must be integrated and co-ordinated with the rest of
the marketing mix, particularly product/brand decisions, so that it may
effectively support an entire marketing mix strategy.

The promotion mix consists of four basic elements.

They are:-

1. Advertising

2. Personal Selling

3. Sales Promotion, and

4. Publicity

The activities excluded from advertising are:

 Offering of premiums to stimulate the sale of products,

 The use of exhibitions and demonstrations at fairs, show and conventions,
  The use of samples and activities, involving news releases and the
activities of personal selling forces,
 The payment of advertising allowances which are not used for
advertising,
 The entertainment of customers.

The basic objectives of an advertising programme may be listed as below:

(i) To stimulate sales amongst present, former and future consumers. It involves
a decision regarding the media, e.g., TV rather than print ;

(ii) To communicate with consumers. This involves decision regarding copy ;

(iii) To retain the loyalty of present and former consumers. Advertising may be
used to reassure buyers that they have made the best purchase, thus building
loyalty to the brand name or the firm.

(iv) To increase support. Advertising impliedly bolsters the morale of the sales
force and of distributors, wholesalers, and retailers, ; it thus contributes to
enthusiasts and confidence attitude in the organizational. :

(v) To project an image. Advertising is used to promote an overall image of

respect and trust for an organization. This message is aimed not only at
consumers, but also at the government, shareholders, and the general public.

CLASSIFICATION AND TYPES OF ADVERTISING

1. Product – Related Advertising

A. Pioneering Advertising

B. Competitive Advertising

C. Retentive Advertising

2. Public Service Advertising

3. Functional Classification

A. Advertising Based on Demand Influence Level.

 Primary Demand (Stimulation)

  Selective Demand (Stimulation)

B. Institutional Advertising

C. Product Advertising

 Informative Product Advertising

 Persuasive Product Advertising
 Reminder-Oriented Product Advertising

4. Advertising based on Product Life Cycle

A. Consumer Advertising

B. Industrial Advertising

5. Trade Advertising

A. Retail Advertising

B. Wholesale Advertising

6. Advertising Based on Area of operation

A. National advertising

B. Local advertising

C. Regional advertising

7. Advertising According to Medium Utilized.

The Advertising Plan As pointed out earlier, advertising plan and

decision making focus on three crucial areas; objectives and target selection,
message strategy and tactics, and media strategy and tactics.

Within the framework of advertisements the following should be kept in

mind:

.Understanding the Objective(s) of the advertisement (MISSION)

· Defining the Target Audience (MARKET)

· Understanding the Budget (MONEY)

· Understanding the Message (MESSAGE)

· The Media used for putting the advertisement (MEDIA)

· Seeing whether the advertisement was Effective (MEASUREMENT) The

above would commonly be termed as the 6 M’s of Advertising.

The DAGMAR model is an acronym for ’Defining advertising goals for

measured advertising results’, as expounded in a book by Russell Colley,
published in 1961.The book enlists about fifty-two possible objectives of
advertising. But one can categorize them into four main stages of
communication – namely -

o awareness,
o comprehension,
o conviction and
o action.

Amongst other parameters, the DAGMAR model, also mentions a

checklist of advertising objectives:

• The selling function

• Second sale / or buyers who buy the product again

• Announcing a new or an improved product

• Special offering – price deal, quality, etc.

• Encourage and prompt the consumer to purchase the product

• Set-off any competitor claims

• Correct any false impressions about the product

• Build the brand and even the trademark

• Build customer demand

• Establish a reputation

• Assist the sales team in increasing sales, opening new avenues, getting
prominent sales and display positions, building the morale of the sales team, etc.

• Sustain the market position.

 Primary Functions of Advertising

The primary functions of advertising can be specified as:

• Increase sales: Advertising informs the consumer about the product, thereby
securing more consumption, or attracting attention towards a new product.
Advertising gives an impetus to the consumer to buy the product, thus
increasing the sales and in turn, higher profits. Advertising helps to build up and
encourage demand and expand the market.

• Introduce a new product: Advertising is the ideal and probably the only way
to introduce a new / improved product to the consumer. Thus passing on
information about the product as fast as possible to the consumer – and creating
a demand.

• Inducing dealers: Advertising prompts dealers to stock more products as

there would be a bigger demand for the product. In areas where the product is in
less demand, advertising and direct contact with the dealer can induce the dealer
to maintain a better stock.

• Helps dealers: Advertising makes it easier for the dealer, retailer to sell
products faster, thus increasing their profits. Dealing with such well advertised
goods has become quite prestigious for the dealers, as the names of their outlets
also appear in the advertisement as dealers of the product. Thus the dealers get
free publicity for their outlet.

• Seasonal swing: Advertising eliminates the seasonal swing. Selling of the

product during the off-season period, e.g., sunglasses can sell all year round.

• Awareness of the product: Advertisement creates confidence in the mind of

the consumer about the advertised product. The consumer would rather buy a
product which he is aware of, rather than an unknown /not advertised product -
a product which he has not heard of.

• Increase of business: Where advertising makes way for a demand for the
product, it in turn increases sales, which makes way for an increase in
production, thus expanding business. Advertising also creates goodwill in the
market and an increase in the volume of sales. This reduces manufacturing cost,
which in turn makes way for more profit for the company and its shareholders.

• Perception function: It is through advertising that the customer moves closer

to buying the product.
 Secondary Functions of Advertising

The secondary functions of advertising can be stated as:

• Spreading of information: The consumer gets all the necessary information

about the product, dealers, manufacturer, etc. through advertisements, which are
often utilised to clear any doubts about the product – e.g., Pepsi and Coca-Cola
recently had a problem with pesticides in their products. Both the companies
used advertising as a medium to clear the doubts in the minds of the consumer.

• Pride for the workers: Advertising increases demand and thus there are
higher sales, in turn, more production. All this creates a sense of pride in the
workers that the product that they manufacture is so highly accepted in the
market. It builds a certain pride in the workers and eggs more commitment to
their work and its quality.

. Safety: Advertising leads to an increase in sales, leading to a sense of safety

and security of jobs for the workers.

• Better employees: The company, with larger profits, can create the best pool
of employees from the market. The employees, on the other hand, are attracted
by the prospect of working for a reputed and famous company and enhancing
their talent. Almost everyone desires to work for reputed and leading companies
like Tatas, Bajaj Auto, Godrej, ICICI Bank and so on.

• Encouragement for the salesman: Advertising makes it much easier for the
salesman to meet the targets set by the management. Advertising eases the job
of the salesman as regards the technical and other specific details of the product.
A good part of the selling is already done by the advertisement.
 MARKET SEGMENTATION

Market segmentation is the process brands use to divide their target

market into smaller segments of people that share common characteristics to
optimize their marketing, advertising and sales efforts.

Four types of market segmentation

As you can imagine, there are many different approaches you can take when
segmenting your target market. This article will walk you through the four main
types of market segmentation and provide examples to help you get started.

Geographic segmentation
Geographic segmentation targets customers based on a predefined geographic
border. Differences in interests, values, and preferences vary dramatically
throughout cities, states, and countries, so it is important for marketers to
recognize these differences and advertise accordingly.

Demographic segmentation
Demographic segmentation divides a market through variables such as age,
gender, education level, family size, occupation, income, and more. This form
of segmentation is a widely used strategy due to specific products catering to
obvious individual needs relating to at least one demographic element.

Psychographic segmentation
Unlike geographic segmentation and demographic segmentation, psychographic
segmentation focuses on the intrinsic traits your target customer possesses.
Psychographic traits can range from values, personalities, interests, attitudes,
conscious and subconscious motivators, lifestyles, and opinions. To understand
your target customers on this level, methods such as focus groups, surveys,
interviews, and case studies can all prove successful in compiling this type of
conclusion.

Behavioural segmentation

Behavioural segmentation has similar measurements to psychographic

segmentation but focuses on specific reactions and the way customers go
through their decision making and buying processes. Attitudes towards your
brand, the way they use it, and their knowledge base are all examples of
behavioural segmentation. Collecting this type of data is similar to the way you
would find psychographic data.

LEVELS OF MARKET SEGMENTATION

To help a company develop more focused marketing plans, each
market is broken down into segments. Each level of a market segment requires
different information and a different marketing approach. A company need to
understand what the levels of market segmentation are, how to address them
and how they work together to develop comprehensive marketing plans.
Different levels of marketing segments are

 Mass marketing

 Micro Marketing

 Segment Marketing

 Niche Marketing

 Local Marketing

 Individual marketing.
 TARGET AUDIENCE

Target audience is a group identified as the focus for communications,

media, entertainment, information or advertising. A well defined target audience
can be used to tailor messages to your audience and to find avenues where they
can be reached.

The following are common types of target audience.

Broad Audience
Communications, media and entertainment with a large budget may target as
broad an audience as possible. For example, a beverage company with a high
market share may create ads that simply convey a positive feeling that is likely
to have broad appeal.

Demographics
Demographics such as a film intended to appeal to a particular age group.

Locations
Locations such as information about a festival aimed at residents of a
neighbourhood in Tokyo.

Subculture

Subcultures are spontaneously formed groups that identify with a shared

experience such as a music scene. In many cases, media and entertainment is
targeted to a subculture.

Super Cultures

Super cultures are large groups that share elements of culture that span multiple
nations such as classical music fans or sailing enthusiasts.

Needs
Information that targets a set of needs such as a video channel that helps people
with common do-it-yourself home improvement projects.
Attitudes & Opinion
Target audiences based on how people feel about a particular topic. For
example, a charity may seek communication channels that reach people who are
concerned about an environmental problem.

Personality
Personality traits such as a movie for people with a certain sense of humor.

Lifestyle
A lifestyle is how people spend their time. For example, an audio book
collection that targets people who have a long commute and would like to use
the time to improve knowledge and skills.

Fans
Communications aimed at fans of a media or entertainment series.

Customers

Messages targeting existing customers of a firm. For example, ads for

upgrading to a premium version of a service.

Target Market

A target market is an identified group of customers for a product or service. It is

common for a target market and target audience to be different. For example, a
such as an advertisement for car insurance intended for target market could be
everyone but advertising messages could be tailored to a particular demographic
people over 60.

ADVERTISEMENT MESSAGE

Message consists of fact, opinions, appeal, idea, symbols, pictures or

convincing arguments about the product. Main purpose of ad copy is to
communicate with the target audience.
 Message Attributes

1.Messages that drive perception:

a. Attention and Awareness

b. Interest
c. Memory

2.Messages that Drive Cognition

3.Messages that touch emotions

4.Messages that persuade:

a. Appeals
b. Selling premises
c. Conviction

5.Messages that transform a product into a Brand

6.Messages that drive Action

Message objectives and Strategies

 Promoting brand recall

 Link key attributes to the brand name
 Persuade the Customer
 Affective Association
 Scare the consumer into Action
 Change Behaviour by inducing Anxiety
 Transform consumption experience
 Situate the brand socially
 Define the brand image.

Message Development

The advertising message is very important to the success of the

advertising campaign. It must attract audience attention and communicate
effectively.
1. Message Structures
 Order of presentation
  Drawing conclusion
 One sided or Two sided message
 Reputational Message
 Verbal versus Nonverbal Message
2. Message Appeal
3. Message Format
4. Message Source.

Advertising Copy

The word copy has specific meaning in the world of advertising. The
wording use in advertising and promotion is called copy. Ad copy is
written or spoken message which the advertiser wants to communicate to
its target audience through any type of advertisement.

Features of Good advertising copy

1. Attractive
2. Interesting
3. Retention Value
4. Suggestive
5. Educative
6. Believable
7. Appropriate Appeal
8. Brief
9. Confirm To Rules
10.Match With Consumers Requirements.

Elements of Advertising Copy

The basic components of an advertising copy used in copywriting process

especially in print ads are as follows:

1. Headlines
2. Subheads
3. Illustration
4. Body copy
 5. Slogans, Logo Types and Signatures
6. Catchy Phrases
7. Blurb
8. Boxes and panels
9. Indentification Mark
10.Closing Idea.
Advertising Copy Development

Creativity is of paramount importance in initiating the process of writing a

copy especially in evolving the basic approach. At the same time creative
ardour(passion) has to be combined with purposeful thinking. Clarke has
envisaged the following phases of purposeful thinking:
1. Abstracting
2. Synthesising
3. Hypothesising
4. Gestation
5. Coalescence
6. Performance
Types of Advertising Copy

1. Scientific Copy
2. Descriptive Copy
3. Topical Copy
4. Narrative Copy
5. Institutional Copy
6. Personality Copy
7. Questioning Copy
8. Educative Copy
9. Humorous Copy
10.Prestige Copy
11.Colloquial or Conversational Copy
12.Suggesting Copy
13.Reason Why Copy
14.Announcement Copy
15.Human Interest Copy
16.Fear Copy
 Significance of Advertisement Copy

Following points describe the significance of Advertising Copy:

1. Heart and Soul of Advertising

2. Reading Matter of Advertising
3. Central Idea of an Advertisement
4. Affects Buying Behaviour
5. Essential for Preparation of Advertisement.

Guidelines for Effective Advertising Copy

1. Define the Audience

2. Define the Brand Identity
3. Write down the product of service unique value proposition
4. Language
5. Write the Copy
6. Proof read Carefully