Advertisement Vs Sales Promotion

After passing out the examinations, suppose you want to start a small firm in your locality. You have sufficient space, required funds and skills to run it. But how people will know about your firms product or service you are going to offer? Even though the quality of goods and services is good, if you must also take measures on continuous basis to make people aware about your firm, the range service you are offering so that you can get clients regularly.

Advertisement

Advertisement

Advertising is any paid form of non-personal presentation and promotion of ideas, goods and services by an identified sponsor. Advertising is non-personal as it is not directed to any single individual. The manufacturer is identified as his name and address is always contained in an advertisement and he also bears the cost involved in the process.

In a newspaper, you not only read articles on current news, but you will also come across information or message about products or services like cycles, hair oils, transporters, builders etc. You also come across such information in journals, magazines, roadside hoardings, radio, television etc. These information make you aware about the products and services in terms of their availability, price and features. Hence, whenever you feel a requirement for such products or services you try go to the place of their availability, look at the features, quality and buy them if they meet your requirement. The very purpose of giving such advertisement is to make the customers aware about any product or service and induce them to avail the product and service

Features of advertising Non-personal presentation of message In advertisement there is no face-to-face or direct contact with the customers. It is directed to prospective buyers in general. Paid form of communication In advertisement, the manufacturer communicates with prospective customers through different media like newspapers, hoardings, magazines, radio, television. He has to pay certain amount for using space or time in those media. Promotion of service, product or idea Advertisement contains message regarding any particular product, service or even an idea. It makes people aware about the product and induces them to buy it. Sponsor is identified The identity of the manufacturer, or service provider who issues advertisement is always disclosed.

Objectives of Advertising To educate customers Can you remember the advertisement of UNIVERSAL SUPER SAVER OFFER? The advertisement educates the customers about the offers and discounts available from UNIVERSAL. To create demand for new product You read in newspaper about Gel Pen introduced in market which is very economical and convenient in writing. This shall motivate you to buy the mentioned product. In turn, demand for the new product is created. To increase sales With the help of advertisements demand for new product could be created, demand for the older products can also be sustained. With Increase in demand, the sale of product also increases.

Media of Advertising

Media of Advertising

Print media

Electronic Media

Other Media

1. Newspapers 2. Periodicals

1. Radio 2. Television 3. Internet

1. Hoardings 2. Posters

Print Media

Print media is commonly used medium of advertising by businessman. It includes advertising through newspaper, magazines, journals etc. Newspapers is a common medium of advertising. The advertiser communicates his message through newspaper which reaches millions of people. Advantages 1. Newspapers normally have wide circulation and a single advertisement in the newspaper can quickly reach to large number of people 2. The cost of advertising is relatively low because of wide circulation.

Periodicals

Periodicals are publications which come out regularly but not on daily basis. These may be published weekly, fortnightly, monthly basis. For example: India Today, Frontline, Ananda Viktan, Kumudam etc. Advantages: 1. Periodicals have selected readership, hence advertisers will know their target customers and accordingly select the advertisement. 2. Preserved for longer time to be referred in future, read at leisure, whenever required.

Electronic Media This is popular form of advertising in modern day marketing. It includes Radio, Television and Internet. Radio Advertising In radio there are short breaks during transmission of any programme which is filled by advertisements of products and services. Advantages 1. It is useful to people who cannot read and write. 2. There are places where newspapers reading may not be possible; but you can hear radio. For example, one can hear radio while traveling or working at home.

Television Advertising

With rapid growth of information technology and electronic media, television tops the list among media of advertising. In TV, products can be shown, their uses can be demonstrated, and their utilities can be told over television. TV appeals both to eye and ear. There are also popular programmes sponsored by advertisers. For example, VIKING PRESENTS JACKPOT Advantages 1. It is most effective as it has an audio-visual impact. 2. With catchy slogans, famous personalities exhibiting products, TV advertisement has a lasting impact. For example, Amitabh Bachchan saying ONLY A DIAMOND CAN UNDERSTAND A DIAMOND Tanishq True Diamonds.

Other Media

All the media discussed above are mostly used by customers while they are at home. In these media, customer has to spend some money to access the advertisement. There are other media available, where the customer have to spend nothing and he can see the advertisement while moving outside. Some of such advertising are Hoardings While moving on roads one can see large hoardings placed on iron frames, walls etc. These boards on which advertisements are painted or electronically designed so that they are visible during day or night. Posters Poster are printed and posted on walls, buildings, bridges etc to attract the attention of customers. Example, posters of films which are screened on cinema halls.

Suitability of Advertising medium

The advertisers must look into suitability of each medium of advertising in relation to their product. For this purpose, they should consider nature of product or service to be advertised, target customers, amount of allocated funds, availability of space and time in each medium. Newspapers These are suited for consumer goods designed for general public. In case of new product to be launched, newspaper advertising is useful as the same space could be used at regular basis.

Periodicals These are suitable for products required by target customers of periodicals. For example, interior decorators, architects, builders can advertise in magazines specifically containing items of design and decoration. Radio Radio is suitable for advertising different products. However the timing is important. (e.g) When farmers come back from field they normally listen to radio. During this time, firms producing agricultural products can advertise their products, sponsor their programmes.

Television Choice of channels and programmes is very important for advertisers. For example, in Cartoon Network Channel, products related to children can be advertised. In case of a new product to be advertised in TV, the product could be advertised during the commercial breaks of any mega event happening in the country. For example, Bingo advertised their product during WORLD CUP 2011.

Sales Promotion

The marketing activities other than personal selling, advertising and publicity that stimulate consumer purchasing and dealer effectiveness such as display shows and exhibitions, demonstrations and various non-recurrent selling efforts. Sales Promotion efforts are directed at final consumers and designed to motivate, persuade and remind them of the goods and discount that are offered.

Sales Promotion informs, persuades and reminds prospective and current customers, selected audiences about a company and its products. The most useful product or brand will be a failure if no one knows it is available. A producer must inform the ultimate consumers about the product and services being offered. As number of potential consumers grow and the geographic dimensions of a market expand, the cost of informing consumers increase. Another purpose is persuasion. The intense competition among different industries, puts tremendous pressure on promotional programmes of sellers. In case of luxury product, for which sales depend on the ability to convince the customers that the products benefits exceed those of other luxuries, persuasion is even more important.

Consumers must be reminded about a products availability and its ability to satisfy. Given the intense competition for consumers attention, even an established firm must constantly remind people about its brand to retain a place in their minds.

Objectives of Sales Promotion

To introduce new products free samples, merchandise allowance offered to stock and sell the product. To attract new customers To induce present customers to buy more To help firm remain competitive

Sales Promotion strategies & practices

Tools and programmes for Sales Promotion (Customers)

Sample free samples are given to customers to introduce a new product or to expand the market. The consumers can try the product. Demonstrations or Instructions The instructions are given to educate the customers about using the product. Example, Vacuum Cleaner. Coupon Discount coupons are given to customers where he gets the product at lower price. Coupons are also accepted as cash at selected shop. Price-off The price-off label is printed on the package, e.g Rs. 4 offer given on Brooke Bond teach pack of 500 grams. It gives a temporary discount to the customers.

Price Packs These are offers to consumers of savings off the regular price of the product, flagged on the label or product. They may take the form of reduced price pack, that is, single packages sold at reduced price or a bundled pack where two related products are bundled together ( tooth paste and tooth brush). It is very effective in stimulating short-term sales. Prizes These are offers of the chance to win cash, trips or merchandise as a result of purchasing something. Pepsi-cola offered the chance to win Cash by matching the numbers shown in television. Sometimes the price might be cash or dinner with a celebrity. Hamam soaps Grahapravesam offer.

Tools and programmes for Sales Promotion (dealers/distributors)

Free display There is a provision of free display of material either at POP or POS depending on ones view point. Retail Demonstrations These are arranged by manufacturers for preparing and distributing the product as sample. Advertising and display allowance These are also offered to retailers to popularise the product and brand name of the manufacturer.

Bait Advertising Bait means something that is meant to influence consumers. For example, TATA INDICOM has used 1 paise per second prominently in its advertisement to bring the attention of its users in mind which will influence them to opt for TATA INDICOM service. This way of influencing consumer to opt for TATA INDICOM is called Bait Advertising. Switch Advertising Switch advertising means when an advertisement is released, it should ignite the minds of consumers to notice the advertisement and take a decision to buy the product. For example, Arokya Milk

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