ADVERTISING AND SALES PROMOTION

                                                                                                                

            Abstract

 Advertising is the dissemination of information by non-personal means through paid media where the source is the sponsoring organization. The messages carried in-medias. Advertising objectives serve as guidelines for the planning and implementation of the entire advertising programme. It helps the consumer to save their time in purchases.

It helps the manufacturer sell their products. The relation between wholesalers and retailers is improved through advertising. Sales promotion consists of diverse collection of incentive tools, mostly short-term designed to Sales promotion tools vary in their specific objectives. A free sample. Stimulates consumer trial, while a free management advisory service comments a long-term relationship with a retailer stimulates quicker and / or greater purchase of a particular product by consumers or the trade. Rationale of sales promotion may be analyses for Short-term results, Competitive Pressure, Buyers’ expectations, Low quality of retail selling. There is wide acceptance that sales promotion is one of the most mismanaged of all marketing functions. The report contained advantages, purpose of advertising and sales promotion. It also discussed rationale, plan preparation, integrating and planning advertising and sales promotion

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 encomia topic in Indian society. 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

1. Advertising is the dissemination of information by non-personal means   through paid       media where the source is the sponsoring organization.

2. Personal selling is the dissemination of information by non-personal methods, like face-to-face, contacts between audience and employees of the

      sponsoring organization. The source of information is the sponsoring       organization. 3. Sales promotion is the dissemination of information through a wide variety  of activities other than personal selling, advertising and publicity which       stimulate consumer purchasing and dealer effectiveness. 4. Publicity is the disseminating of information by personal or non-personal  means and is not directly paid by the organization and the organization is   not the source.

 DEFINITION OF ADVERTISISNG

  The American Marketing Association,  Chicago, has defined advertising as “any form of non-personal presentation or promotion of ideas, goods or services, by an dentified sponsor.”

 FROM THE ABOVE DEFINITIONS:

 

Advertisement is a MESSAGE to large groups. It is in the form of NON_PERSONAL COMMUNICATION. It persuade the GENERAL PUBLICS to purchase  the goods or services, advertised. It is PAID FOR by advertiser to publisher. Advertising messages are IDENTIFIED with the advertiser.

  Advertising includes the following forms of messages:

       The messages carried in-

Newspapers and magazines; On radio and television broadcasts; Circular of all kinds, (whether distributed by mail, by person, thorough tradesmen, or by inserts in packages); Dealer help materials, Window display and counter – display materials and efforts; Store signs, motion pictures used for advertising, Novelties bearing advertising messages and Signature of the advertiser.

Advertising Objectives

 Each advertisement is a specific communication that must be effective, not just for one customer, but for many target buyers. This means that specific objectives should be set for each particular advertisement campaign. Advertising is a form of promotion and like a promotion; the objectives of advertising should be specific. This requires that the target consumers should be specifically identified and that the effect which advertising is intended to have upon the consumer should be clearly indicated. The objectives of advertising were traditionally stated in terms of direct sales. Now, it is to view advertising as having communication objectives that seek to inform persuade and remind potential customers of the worth of the product. Advertising seeks to condition the consumer so that he/she may have a favorable reaction to the promotional message. Advertising objectives serve as guidelines for the planning and implementation of the entire advertising programme.

Advantages  of  advertising

 

Advertising is considered multi dimensional. It helps number of marketing activities. It is a technique of sales promotion. Sales volume is increased by advertising. It helps and supports the salesman in selling the products. Consumer knowledge about the product is increase by advertising. It helps the consumer to save their time in purchases. It helps the manufacturer sell their products. It helps quick selling is possible which leads to more production at less cast. The relation between wholesalers and retailers is improved through advertising. Advertising introduces new products, stimulates markets regarding the existing    Product and repeated sales

BENEFITS TO MANUFACTURERS:

 1It increase sales volume. On the one hand, it reduces the cost of production and,on the      other increases profits.

It helps easy introduction of products into the markets. It helps to create an image and reputation not only of the product  but also of the advertiser. Retail price maintance is possible. It helps to establish a direct contact between manufacturers and consumers.

                       

BENEFITS TO WHOLESALERS RETAILERS :

 

Easy sale of the products is possible since consumers are aware of rhe product

and its quality.

It increases the rate of the turnover of stock. It supplements the selling activities. The reputation credited is shared by the wholesalers and retailers and alike. It enables them to have product information.

 

BENEFITS TO CONSUMERS

 

Advertising stresses quality and very often prices. This forms an indirect guarantee to     the consumers. Further more, large scale production assured by advertising enables the seller to sell the product at a lower cast. It provides an opportunity to the customers to compare the merits and demerits of various substitute products. This is perhaps the only medium through which consumers could know the varied and new uses of a product. Modern advertisements are highly informative.

 

BENEFITS TO SALESMEN

 

Introducing the product is made easy. Advertising prepares necessary ground for a salesman to begin his work. Hence sales efforts are reduced. The contact established with the customer by a salesman is made permanent through advertising. The salesman can weigh the effectiveness of advertising when he makes a direct contact with the customer.

 

BENEFITS TO COMMUNITY

 

Advertising in general is educative in nature. In the words of the late president Roosevelt of the USA, ‘Advertising brings to the greatest number of people actual knowledge concerning useful things; it is essentially a form of education and the progress of civilization depends on education’. Advertising leads to large scale production creating more employment opportunities. Advertising has made more popular and universal the uses of such inventions as the auto mobiles, radios, various household appliances. “Advertising nourishes the consuming power of man. Its creates wants for a better standing of living.. It spurs individual exertion and greater production”.

 

CONCEPT OF SALES PROMOTION

 Sales promotion consists of diverse collection of incentive tools, mostly short-term designed to stimulate quicker and / or greater purchase of a particular product by consumers or the trade.. Sales promotion includes tools for consumer promotion (for example samples, coupons, prizes, cash refund, warranties, demonstrations, contest); trade promotion (for example buying allowances, free goods, merchandise allowances, co-operative advertising, advertising and display allowances, dealer sales contests); and sales-force promotion (for example bonuses, contests, sales rallies).Sales promotion efforts are directed at final consumers and designed to motivate, persuade and remind them of the goods and receives that are offered. Sales persons adopt several techniques for sales promotion.

 Definitions of Sales Promotion

 W.J. Stanton defines sales promotion as all those activities other than advertising, personal selling, public relations and publicity that are intended to stimulate customer demand and improve the marketing performance of sellers.

 Purpose of sales Promotion

 Sales promotion tools vary in their specific objectives. A free sample stimulates consumer trial, while a free management advisory service comments along-term relationship with a retailer. From the marketer’s perspective, sales promotion serves three essential rolesit informs, persuades and reminds prospective and current customers and otherselected audiences about a company and its products.  Because distribution channels are often long, a product may pass through many lands between a producer and consumers. Therefore, a producer must inform middlemen as well as the ultimate consumers or business users about the product. Wholesalers, in turn must inform retailers and retailers must inform consumers. As the number of potential customers grows and the geographic dimensions of a market expand, the problems and costs of informing the market increase.

 

Objectives of Sales Promotion

 The basic objectives of sales promotion are:

 i) To introduce new products

 To induce buyers to purchase a new product, free samples may be distributed or money and merchandise allowance may be offered to business to stock and sell the product.

 ii) To attract new customers

 New customers may be attracted through issue of free samples, premiums, contests and similar devices.

iii) To induce present customers to buy more

Present customers may be induced to buy more by knowing more about a product, its ingredients and uses.

iv) To help firm remain competitive

 Sales promotions may be undertaken to meet competition from a firm.

 v) To increase sales in off season

 Buyers may be encouraged to use the product in off seasons by showing them the variety of uses of the product.

 vi) To increase the inventories of business buyers

 Retailers may be induced to keep in stock more units of a product so that more sales can be effected.

RATIONALE OF SALES PROMOTION

 Rationale of sales promotion may be analyzed under the following points.

 ??Short-term results

 Sales promotion such as coupons and trade allowances produce quicker, more measurable sales results. However critics of this strategy argue that these immediate benefits come at the expense of building brand equity. They believe that an over emphasize on sales promotion may under mine a brand’s future.

 ??Competitive Pressure

 If competitors offer buyers price reductions, contest or other incentives, a firm may feel forced to retaliate with its own sales promotions.

 ??Buyers’ expectations

 Once they are offered purchase incentives, consumers and channel members get used to them and soon begin expecting them.

 ??Low quality of retail selling

 Many retailers use inadequately trained sales clerks or have switched to self service. For these outlets, sales promotion devices such as product displays and samples often are the only effective promotional tools available at the point of purchase.

 SALES PROMOTION PLAN PREPARATION

There is wide acceptance that sales promotion is one of the most mismanaged of all marketing functions. This can be attributed to the confusion as to what sales promotion really is – which often results in expenditures not being properly accounted for. Some companies record it as advertising expenditure, others as sales force expenditure and others as general marketing expenditure – while the loss of revenue from special price reductions is not recorded at all.

The companies can no longer afford not to set objectives or to evaluate results after the event, or to fail to have some company guidelines. For example, a 1 Euro case allowance on a product with a contribution rate of 3 Euro per case has to increase sales by 50% just to maintain the same level of contribution.

In order to manage a company’s sales promotion expenditure more effectively, there is one essential step that must be taken. First, an objective for sales promotion must be established in the same way that an objective is developed for advertising, pricing, or distribution.

 Advertising, Promotion And The Brand

 By now it is clearly understood that The role of Advertising and promotion In fast moving consumer Good Markets. Advertising has been seen as one of the primary tools of Brand Building. The high cost and difficulties of mass advertising are seen as one of the major challenges to fast moving consumer good brands.

Do All Brands Need Advertising?

 The basic assumption is that brands need advertising but some strong brands apparently do not. Spencer used to spend almost nothing on advertising, Yet it was an enormously powerful brand.  Of course, Both these are retailers; they have stores which people pass by go into. The Stores Themselves Are – In Their Way – Advertising, and It Is Difficult to think of major brands other than retailers those have done without advertising.

 We can safely make two statements about brand communication :

 ??Every brand must have some means of communicating with its buyers.

        This may not be advertising, but it must be direct if it is to be controllable.

        and frame can be achieved, but the message has to be one that its

        really new and interesting.

??All the means of communication and the messages transmitted must be

       Co-ordinate to make some that they are saying the sense thing,

        confused consumers don’t buy.

 

There Is A Price Paradise

 

The standard model of advertising and the brand suggests that a strong  brand is less sensitive to price than a weaker one. When advertising increases sales, the average sensitivity to price also increases. In other words, a seemingly successful campaign has made buyers more sensitive to price, where as we would expect our brand buyers to be, if anything, less sensitive.

Integrating Advertising And Promotions

 

The answer to the problem of conflicting communications must be to Integrate advertising and Promotion. There are two common sense reasons for integration.

The First reason is that integration creates synergy. This is a much – Abused word, but the evidence shows clearly that advertising and promotion can work together to produce a greater effect.

 

In addition, The integration of advertising and promotion gives the consumer a coherent message. If  advertising and promotion are to achieve synergy and to build a cumulative

effect in consumers’ minds, they must be mutually consistent.

 

Planning Advertising And Promotion

The advertising and promotion plan is only one part of the overall marketing plan and must fit within it. In order to start the advertising plan, we need some background – which Is not a very formal restrictive planning, but for a process of thinking through what the advertising and promotion are trying to achieve. 

 

From The brand plan we should expect to find the following elements.

 

??A situation analysis (Where we are and why)

??Objectives (What the brand is aiming for in sales, share and other targets)

??Positioning (How the brand is positioned in the consumer’s mind )       

??Strategy (How the brand is Going to compete in this market)

???Advertising strategy (What role advertising has next period with in tshe

        overall strategy) And

??Budget (What moneys are available to spend on advertising promotion).

        advertising objectives must include Long-Term brand building. They

        may of Course also include shorter-term tasks such as announcing a new

       variation or promotion.

 CONCLUSION

 Advertising: A firm as its basic of fundamental tool production uses it. It normally has long-term objectives like building brand awareness or building consumers loyalty or repositioning a brand. It helps sales by adding some durable and long-term value to the product. Advertising in mostly an indirect way for consumer to buy a product.

 sales: It is generally designed to supplement advertising and facilitates personal selling.It performs the immediate task of increasing current sales. It aids selling by temporarily changing the existing price value relationship of the  product. Sales promotion is a direct and almost open inducement to consumers to immediately try the product.

Thus from all the above studies it can be concluded that for the marketing of any product, the best way to increase sales is through the Sales promotion rather than advertising. It is so because in advertising a product there is many criteria’s, which are to be, fulfilled which is not an easy task. Thus it is easier to increase the sales through sales promotion.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Advertising is a means through which a product gains popularity. Advertising facility helps a customer judge a product better. Advertising enables a customer to make a wise decision. Advertising is a very good means for a business enterprise to spread information about a particular product.

Advertising helps to gain instant popularity. Television advertising is another important means of advertising these days. Due to busy routine of life, people these days are unable to read newspapers and other print forms of newspaper. In such cases, Television advertising occupies a great role. Therefore, Television advertising occupies a major role. Television advertising is sent to the customer in the form of commercials on the television set.

Another important and most eminent form of advertising is print advertising. Print advertising is mode of advertising which is being practiced for years. Thus, all companies should invest good amount of money in print advertising. The investment in print advertising is the basic investment for the company.

Radio advertising is very important to spread knowledge about a given line of products. Radio advertising is extremely important because not every person can afford a television. In that case, radio advertising becomes extremely important. Radio advertising is also very effective as well as impressive mode of advertising.

Outdoor advertising is very important as people look around when they are travelling. This is very important. Outdoor advertising attracts and fetches the customer towards a certain product. Thus, Outdoor advertising occupies a major rile in the advertising process.

Thus, this mode of advertisement must be taken up very seriously. These days airport advertising also occupies a major role. This is because travelers tend to spend lot of time at the airports. Therefore, airport advertising becomes extremely important. Business entrepreneurs must show adequate interest in airport advertising.

These days internet advertising has become the heart of every company.  Thus, internet advertising is very important for every company. A lot of traffic can be obtained from internet advertising. Internet advertising is very important form of advertising. Internet advertising has become very important because these days every second person has access to computer as well as internet.

Mobile is every effective means to communicate these days. All this makes mobile advertising very significant as well as important. This every business person must pay proper attention towards mobile advertising. The mobile market has become very vast.

Every person has a mobile in his hand these days. Thus, it is very important to do advertising over the mobile. Thus every company must pay adequate amount of money on mobile advertising. This advertising really helps to earn lot of money. Thus, this type and mode of advertising is very effective as well as important.

Reference Website: www.worldwideadvertisingnetwork.com

Advertising is very different from personal selling. In personal selling, the customer is guided by a sales person, but in advertising the advertisement is shown to the customer and the decision is in the hands of the customer. Therefore, advertising may be called written personal selling. Thus, advertising is very effective for all kinds of products.

Thus, every company must use television advertising to advertise their products. Television advertising is the most preferred way to advertise these days. Thus, every business entrepreneur must take interest in television advertising. Commercials are big sellers and the most important part of television advertising. Thus, the most famous form of advertising is television advertising.

Print advertising can also spread a lot of information. The main elements of print advertising are pamphlets, leaflets, brochure, newspapers, magazines and visiting cards. Print advertising is a must for every company. Every company must take appropriate interest in print advertising. Thus, print advertising occupies a major role in the advertising process.

Another important mode of advertising is radio advertising. These days everybody listens to radio advertising in a temptation to come across songs. Thus, radio advertising is very important for spreading mass awareness about a product. Thus, every company must invest in radio advertising. Adequate care must be taken that radio advertising is not skipped.

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Airport advertising is very important because customers tend to do shopping in their free time and they have a lot of free time at the airport. That’s why airport advertising must be given adequate importance.  Company must make adequate investment in airport advertising. People tend to look around at an airport which makes airport advertising extremely important.

Internet is a very important mode of communication these days. And this very fact has made internet advertising very important in today’s scenario. Thus, every company must invest wisely in internet advertising. Internet advertising will help a company increase its sale manifolds since internet is within the reach of every second person these days.

The most important form of advertising these days is mobile advertising. It is because mobile is in the hands of every second person these days. Thus, mobile advertising occupies a very major role in the advertising process.  Mobile connects very well. Thus, mobile advertising plays an eminent role in advertising process. Thus, every business entrepreneur must pay adequate attention towards mobile advertising. This is because mobile advertising I the most common as well as effective means of advertising these days.

Reference Website: www.worldwideadvertisingnetwork.com

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Well, first of all Advertising tells people about the products and services.  Advertising informs consumers about the existence and benefits of products and services, and attempts to persuade them to buy them. The best form of advertising is probably word-of-mouth advertising, which occurs when people tell their friends about the benefits of products or services that they have purchased. Yet virtually no providers of goods or services rely on this alone, but use paid advertising instead. Indeed, many organizations also use institutional or prestige advertising, which is designed to build up their reputation rather than to sell particular products.

In this context let me remind you that a wise man once said, “The person who saves money by not advertising is like the man who stops the clock to save time.” In today’s fast-paced, high-tech age, businesses have to use some form of advertising to make prospects aware of their products and services.

It a matter of common knowledge, that even a famous company like Coca-Cola continually spends money on advertising to support recognition of their products. In 1986 Coca-Cola spent over 0 million to keep its name at the first page of public’s eye. So the question isn’t whether or not you can afford to advertise, you simply must if you want your business to succeed. Advertising is an investment in your business’s future. And like any investment, it’s important to find out as much as you can before you make a decision.

Although large companies could easily set up their own advertising departments, write their own advertisements, and buy media space themselves, they tend to use the services of large advertising agencies. These are likely to have more resources, and more knowledge about all aspects of advertising and advertising media than a single company. The most talented advertising people generally prefer to work for agencies rather then individual companies as this gives them the chance to work on a variety of advertising accounts (contracts to advertise products or services). It is also easier for a dissatisfied company to give its account to another agency than it would be to fire its own advertising staff.

The client company generally gives the advertising agency an agreed budget; a statement of the objectives of the advertising campaign, known as a brief; and an overall advertising strategy concerning the message to be communicated to the target customers. The agency creates advertisements and develops a media plan specifying which media – newspapers, magazines, radio, television, cinema, posters, mail, a sandwich board man (the cheapest one), any kind of sponsorship & etc. – will be used and in which proportions. (On television and radio, ads are often known as commercials.)

The agency’s media planners have to decide what percentage of the target market they want to reach (how many people will be exposed to the ads) and the number of times they are likely to see them. Advertising people talk about frequency or ‘OTS’ (opportunities to see) and the threshold effect – the point at which advertising becomes effective. The choice of advertising media is generally strongly influenced by the comparative cost of reaching 1,000 members of the target audience, the cost per thousand (often abbreviated to CPM, using the Roman numeral for 1,000). The timing of advertising campaigns depends on factors such as purchasing frequency and buyer turnover (new buyers entering the market).

How advertising differs from other outside purchases. It is intended to add value to the product after manufacture, by increasing the consumer’s perception of its value.

It cannot be equated with the raw materials that go into a product. There is a great difference between them:

Buying specification – In Adv. it is broad and subjective; Raw Mat. – detailed and objective.

Correct amount to buy – In Adv. it is not known; Raw materials – exactly known.

Now I feel like saying about advertising expenditure. Advertising is a much more important cost ingredient in some markets than in others. Based on numbers from the USA, which accounts for over 50% of world advertising expenditure, toys have the highest ratio of advertising spending to sales, followed by cosmetics and pharmaceuticals. Car and office-equipment manufacturers both spend quite large absolute sums of money on advertising.

“I know that half of my advertising budget is wasted, but I am not sure which half” -  is a comment that was made many years ago and has now passed into advertising folklore. Accountants particularly enjoy repeating it.

How much to spend on advertising is always problematic. Some companies use the comparative-parity method – they simply match their competitors’ spending, thereby avoiding advertising wars. Others set their ad budget at a certain percentage of current sales   revenue. But both these methods disregard the fact that increased ad spending can increase current sales. On the other hand, excessive advertising is counter-productive because after too many exposures people tend to stop noticing ads or begin to find them irritating.

As soon as every company, which aim is to get successes on the market spends a certain amount of money on advertising, it has come under the watchful eye of many critics. Most of their dis­approval centers around several complaints, which have, in some cases, lead to reg­ulation.

One common complaint concerns the high cost of-advertising, which many believe causes higher product prices. Many critics overlook the fact that advertising helps develop a mass market for products, which in turn reduces the unit price. Another common complaint is that much advertising is offensive or in poor taste. For example, many people find it offensive to hear commercials about per­sonal problems. Many critics accuse advertising of sometimes being false and misleading. Most people agree that advertising should be allowed a certain degree of puffery or le­gitimate artistic license. Finally, some critics charge that advertising programs people to buy the things they don’t need at all, to purchase merchandise they cannot afford and often really do not need. True but only to a degree. As Abraham Maslow claimed, our wants and needs are never completely fulfilled. Thus, it is human nature to work harder for the money to purchase those things that make life more comfortable.

The criticism that has been leveled at advertising through the years has led to regulation for the industry. There are two types of regulation in advertising: self-reg­ulation and government regulation.

Self-regulation is a healthy attempt by the advertising industry to keep its act clean and to avoid further government regula­tion.

Government regulation of the advertising industry is controlled by the Federal Trade Commission (FTC). Its re­sponsibility is to protect consumers from unfair and deceptive advertising prac­tices.