Project Marketing
Project Marketing
Project Marketing
A Dissertation submitted to
Madurai Kamaraj University, Madurai
in partial fulfillment o f the requirement
for the degree
Of
MBA
IN
[Marketing Management]
SALES PROMOTION is the bonafide work of JATIN BEDI who carried out
SIGNATURE
ADVERTISING
MANAGEMENT
&
SALES
PROMOTION
ADVERTISING MANAGEMENT
Advertising-meaning
Evolution of advertising
Age of print:
1441 – johannes gutenberg creates movable type
Mid 1400 s printed hand bills
1472 – first ad in english “ pyes of salisburg”
1600’s -- news papers
1622 – 1st ad in london’s weekly relations news.
1655 – first use of the term advertising
1704 – 1st us newspapers to carry ads
1841 – volacy planner becomes first ad sales agent (boston)
Industrial revolution and emergence of consumer society:
1850’s – first branded items
1864 – j. Walter thompson forms agency.
1872 – 1st ward’s illustrated mail order catalog.
1879 – proctor & gamble introduces ivory soap.
1880 – john powers pioneers copywriting focuses on news.
1888 – george eastman creates 1st kodak camera.
Nature of advertising
Element of marketing mix: - price, product, promotion and physical distribution.
Promotion mix: - personal selling, sales promotion, publicity and advertising.
Mass communication: - radio, television, news papers, bill boards and magazines etc,
Messages: - it motivates the customers.
Paid: - charges for the ad agency.
Persuasive: - information passing.
Sponsor: - ad is sponsored by some identifies advertiser, disclosing ideas, messages and
information.
Scope of advertising
Messages- message of the product.
Media- large no of media with those advantages and disadvantages cost and benefits.
Merchandise - demonstration of the attributes of the product.
Advertising functions- demand, promotion, image of the organization.
Advertiser-he helps the peoples to understand the product.
Objectives-increase sales, awareness, interest.
The 5 players of advertising
A. Consumer advertising
Most of the consumer goods producers engage in consumer product advertising. Marketers
of pharmaceuticals, cosmetics, scooters, detergents and soaps, cigarettes and alcoholic
beverages are examples. Baring a few, all these products are all package goods that the
consumer will often buy during the year. There is a heavy competition among the
advertisers to establish an advantage for their particular brand.
B. Industrial advertising
Industrial executives have little confidence in advertising. They rely on this form of
promotion merely out of fear that their competitors may benefit if they stop their
advertising efforts. The task of the industrial advertiser is complicated by the multiple
buying influence characteristics like, the derived demand, etc. The objectives vary
according to the firm and the situation. They are:
to inform,
to bring in orders,
to induce inquiries,
to get the advertiser’s name on the buyer’s list of sources,
to provide support for the salesman,
to reduce selling costs,
to help get items in the news column of a publication,
to establish recognition for the firm or its product,
to motivate distributors,
to recognition for the firm or its products,
to motivate distributors, to create or change a company’s image,
to create or change a buyer’s attitude, and
The basic appeals tend to increase the rupee profits of the buyer or help in achieving his
non-monetary objectives. Trade journals are the media most generally used followed by
catalogues, direct mail communication, exhibits, and general management publications.
Advertising agencies are much less useful in industrial advertising.
5. Trade advertising
A. Retail advertising
B. Wholesale advertising
A. Retail advertising
This may be defined as “covering all advertising by the stores that sell goods directly to
the consuming public. It includes, also advertising by establishments that sell services to
the public, such as beauty shops, petrol pumps and banks.” Advertising agencies are rarely
used. The store personnel are usually given this responsibility as an added task to be
performed, together with their normal functions. The result is that advertising is often
relegated to a secondary position in a retail store. One aspect of retail advertising is co-
operative advertising. It refers to advertising costs between retailers and manufacturers.
From the retailer’s point of view, co-operative advertising permits a store to secure
additional advertising that would not otherwise have been available.
B.wholesale advertising
Wholesalers are, generally, not advertising minded, either for themselves or for their
suppliers. They would benefit from adopting some of the image-making techniques used
by retailers – the need for developing an overall promotional strategy. They also need to
make a greater use of supplier promotion materials and programmes in a way
advantageous to them.
6. Advertising based on area of operation
It is classified as follow:
A. National advertising
B. Regional advertising
C. Local advertising
A. National advertising
It is practiced by many firms in our country. It encourages the consumer to buy their
product wherever they are sold. Most national advertisements concentrate on the overall
image and desirability of the product. The famous national advertisers are:
Hindustan levers, dcm, itc, jay engineering, tisco
B. Regional advertising
It is geographical alternative for organizations. For example, amrit vanaspati based in
rajpura claims to be the leading hydrogenated oil producer in the punjab. But, until
recently, it mainly confined itself to one of the vegetable oil brands distribution to
malihabad district (in u.p. Near lucknow).
C. Local advertising
It is generally done by retailers rather than manufacturers. These advertisements save the
customer time and money by passing along specific information about products, prices,
location, and so on. Retailer advertisements usually provide specific goods sales during
weekends in various sectors.
7. Advertising according to medium
The most common classification of advertising is by the medium used. For example: tv,
radio, magazine, outdoor, business periodical, newspaper and direct mail advertising. This
classification is so common in use that it is mentioned here only for the sake of
completeness.
Effect on the value of products or services: advertising sets off a chain reaction of
economic events. In a free-market system, consumers have the option of choosing the
desired value in the products or services they buy. If price is more important to
consumers, they have options of buying less expensive alternatives. Others looking for
luxury and status may choose more fancy and expensive alternatives. Advertising
contributes to the self-interest of both consumers and advertisers by adding value to
products and services in a free-market system. Further it encourages competition, which
adds to serve the consumer’s self-interest.
Effect on prices: advertising also adds cost and affects prices. This means that if
companies stop this expensive advertising, products would cost less and be available at
lower prices. This is a major area of continuing debate among economists, advertisers
consumer advocates and policy makers. However, this view is not totally correct. While
some advertised products do cost more than the unadvertised products, and the costs are at
least partly borne by consumers, the opposite is true. Advertising may actually help lower
the overall cost of a product and keep down the prices because of economies of scale in
production.
Effect on consumer demand and consumer choice: it is generally agreed that the effect
of advertising and other promotions is an increase in aggregate consumption but to what
extent it effects consumption, is a highly debatable issue. Besides advertising, there are
other important forces such as technological advances, level of education, increases in
population, level of income, changing lifestyles etc. That exert a powerful influence on
aggregate consumption. Advertising can help stimulate demand of new products by
communicating relevant information and facts. Advertising restricts the choice of
alternatives to a few heavily advertised brands.
It is generally agreed that advertising exerts a powerful social influence and is criticized
for encouraging materialism in society.
Advertising is blamed for manipulating consumers to buy things for which they have no
real need, depicting stereotypes and controlling the media.
Materialism is the tendency to accord undue importance to material interests and this
tendency perhaps, lessens the importance of freedom, love and intellectual pursuits of
society, which are non-material.
People from many countries and cultures believe that materialism tends to be negatively
related to happiness and hence is considered undesirable.
Ethics are moral principles and values that govern the actions and decisions of an
individual or group.
Many laws and regulations are put into force that determines what is permissible in
advertising.
Cigarette smoking, for example, has been shown to be associated with high levels of lung
cancer and other respiratory tract diseases and many people would consider cigarette
advertising as unethical.
Sex appeal and / or nudity used simply to gain consumers’ attention and not even
appropriate to the product or service being advertised is in poor taste.
“puffery” is advertising that praises the product or service to be sold with subjective
opinions, exaggerations or superlatives without stating any facts and, for this, advertisers
have a right. This further complicates the issue of deception.
In india, advertising standards council of india (asci) enforces the ethical code for
advertisers. The council is a non-profit organization set up by 43 founder members and
has developed a regulating code. It proposes to adjudicate on whether an advertisement is
offensive or not. The council’s decisions are binding on its members and in case of any
disputes; it proposes to deal with the government.
To ensure the truthfulness and honesty of representation and claims made by the
advertisements and to safeguard against misleading advertising.
To ensure that advertisements are not offensive to generally accepted standards of
public decency.
To safeguard against indiscriminate use of advertising for promotion of products,
which are regarded as hazardous to society or to individuals to a degree or of a
type, which is unacceptable to society at large.
To ensure that advertisements observe fairness in competition so that the
consumers’ need to be informed on choices in the market-place and the canons of
generally accepted competitive behaviour in business are both served.
Truth – advertising shall reveal the truth, and shall reveal significant facts, the omission of
which would mislead.
Bail advertising – advertising shall not offer products or services for sale unless such offer
constitutes a bona fide effort to sell the advertised products or services and is not a device
to switch consumers to other goods or service, usually higher priced.
Price claims – advertising shall avoid price claims that are false or misleading, or savings
claims that do not offer provable savings.
Ad agency
Ad agency is an independent organization that provides one or more specialized
advertising and promotion related services to assist companies in developing, preparing,
and executing their advertising and other promotion programmes. Large and medium size
agencies used ad agencies.
Definition
“an ad agency is a service organization that specializes in planning and executing
advertising programs for its clients”
Types of ad agency
Full service agency: it offers a full range of marketing, communication, and promotion
services, including planning; creating and producing the ads performing research. Various
departments in full service agency.
Account services
Marketing services
Creative services
Management and finance – organization and structure
In house agencies:
It is an ad agency that is setup, owned and operated by the advertisers.
Creative boutiques:
It is an agency that provides only creative services.
Media buying services:
Media buying services are independent companies that specializes in the buying of
media, particularly radio and television time.
Agency compensation
Commission from media 15%
Fee, cost and incentive based system.
Fee arrangement
Fixed fee method
Fee commission combination
Cost plus agreement-cost + profit
Incentive based compensation sales on market store.
Percentage charges
Why agencies lose clients
Poor performance on service
Poor communication
Unrealistic demand by the client
Personality conflicts
Personnel charges
Changes in the size of the client on agency
Conflicts of interests
Changes in the clients corporate on marketing strategy declining sales
Conflicting compensation philosophies.
Changes in policies.
How agencies gain clients
Referrals
Solicitations
Presentations
Public relations
Image and reputation
ADVANTAGE OF USING AGENCIES
1. The marketer gains a number of benefits by employing agencies. An agency
Generally has an invaluable experience in dealing with various advertising and
Marketing issues.
2. The lessons which agency learned in working with other clients are useful inputs
For the marketer.
3. An agency may employ specialists in the various areas of preparation and
Implementation of advertising plans and strategies.
4. The personnel are not members of the marketer’s management team. They bring
Objective and unbiased viewpoints to the solution of advertising and other
Marketing problems.
5. The discounts that the media offer to agencies are also available to advertisers.
This is a strong stimulus to them to use an agency, for the media cost is not much
Affected thereby.
6. The company normally does not have as many types of specialists as a large or
Medium-sized advertising agency has because an agency can spread the costs or its
Staff over many clients. It can do more for the same amount of money.
7. The company can also get an objective, outside viewpoint from an agency,
Assuming that the agency representatives are not acting as “yes man” in order to
Keep the advertiser’s account.
8. A related point is that the company can benefit from the agency’s experience
With many other products and clients.
9. Another advantage is that agency feels a greater pressure than the company’s
Own department to produce effective results. The relations between an agency and a
Client are very easy to terminate; but it is difficult to get rid of an ineffective
Advertising department.
10. The manner in which agencies are compensated, the use of an agency may not
SELECTING AN AGENCY
While selecting an advertising agency, the importance of compatibility should be borne in
mind. An agency takes a long time to grasp the problems and accumulate the facts that are
necessary for the smooth functioning of a client. Though this investment period is long, it
pays rich dividends. Therefore, an agency
Should not be frequently changed. Here are some points that can help the advertiser to:
(i) choose an agency ; and
(ii) get the best out of an agency.
(i) choosing an agency
The agency should be able to think independently on various problems, and not solve them by
pre-conceived notions which it is unwilling to change. The agency should have experience in
selling goods and ideas. It should be able to bring in more results than anticipated. The company
should be financially sound and should be able to cover both local and national advertising
campaigns.
The size of the agency should not be seriously taken into account. A big agency is not necessarily
a better than a small agency.
The agency should not be one that hesitates to correct the advertiser if it feels that he is wrong.
The agency should be able to use both research and brains to solve problems.
An agency that plans to make a profit on an account should be chosen, rather than one that
maintains that it will work on a no-profit-no-loss basis.
Advertising campaign management
“managing an advertising campaign is the process of preparing and integrating a
specific advertising program in conjunction with the overall imc message”
“an ad campaign includes a series of ads placed in various media, that are
designed to meet objectives and are based on an analysis of marketing and
communication situations”
Sales are a convenient and really attractive advertising objective for many managers.
In case of sales as the advertising objectives, it would be quite simple to evaluate the
results of the ad campaign.
Many experts recognize that advertising creates delayed or ‘carryover effect’ and no
matter how much money is spent on advertising, it may not necessarily have an
immediate impact on sales.
Sales, as an advertising objective, offer little guidance to creative and media people
working on the account.
In spite of problems that sales objectives pose, there are certain situations when sales
objectives can be appropriate.
Some direct-action advertising attempts to induce a quick response from the members
of target audience such as ads offering some kind of incentive, or ads announcing
contests, or encouraging prospects to place orders by phone or through the Internet.
Communications Objectives
First the lower level objectives, such as awareness, knowledge or comprehension are
accomplished.
Subsequent objectives may focus on moving the prospects to higher levels in the
pyramid to elicit desired behavioural responses such as associating feelings with the
brand, trial, or regular use etc.
It is easier to accomplish ad objectives located at the base of the pyramid than the
ones towards the top.
Irrespective of the fact whether the brand is new or established, the pyramid can be
used to determine appropriate advertising objectives.
Communication-effect Pyramid
5%
Repurchase/
10% Trial
20% Preference
40% Liking
80% Awareness
• Creating favorable attitudes (persuasion). The next stage and the one that preoccupies
most advertisers, is to crate the favorable attitude to the brand, which will eventually lead the
consumers to switch their purchasing pattern.
• Maintenance of loyalty (reinforcement) One of the tasks which is often forgotten is that of
maintaining loyalty of existing customers who will almost always represent the main source
of future sales.
There are general objectives of advertising that covers goals like encouraging
increased consumption of a product by current users, generating more sales leads,
increasing brand awareness, increasing repeat purchases and supporting the personal
selling efforts. Some of the broad advertising goals are explained as per the following:
1. Launch of New Products and Services: In a saturated market, the introduction of new
products and brands can give the seller a tremendous opportunity for increasing his sales.
In the case of innovative products (totally new to the market) such as Laptop Computers,
a great deal of advertising has to be done over an extended period of time to make people
aware of “What the product is” and What it does” and “How the customers would find it
useful”. In addition, the advertisement also carries information about the availability of
the product and facilities for demonstration/trial etc. Similarly new brands of existing
product categories are also promoted quite aggressively. Two recent examples are the
launching of “Pepsi Blue” soft drinks during the world cup and launch of “Mountain
Dew” in subsequent period.
2. Expansion of the Market to Include the New Users: Advertising can be used to tap a
new segment of the market, hitherto left unexplored. For example TV and Video Camera
manufacturers who have been concentrating on domestic users and professionals can
direct their advertising to the government institutions and large organization for closed
circuit TV networks, security systems and educational purposes. Another way of
expanding the consumer base is to promote new uses of the product. For example,
Johnson’s baby oil and baby cream were originally targeted to mothers. The same
products have now been directed towards the adult market for their personal use.
Similarly, Milkmaid was originally promoted as a substitute for milk. It is now being
advertised as an ingredient for making sweet dishes and also as a sandwich spread for
children.
7. Reminder Campaigns: This type of advertising is useful for products, which have a high
rate of repeat purchase, or those products, which are bought frequently e.g. Blades,
cigarettes, soft drinks, etc. The advertisement is aimed at remaining the customer to ask X
for the same brand again. The campaign of “Dil Maange More” during television breaks
of cricket matches is to have a top of mind recall.
8. To Sought Dealer Cooperation and Motivation: A successful retail trader depends upon
quick turnover so that his capital can be reused as many times as possible. Dealer support
is critical, particularly for those who have limited shelf space for a wide variety of
products. Advertisers send “display” material to dealers for their shops, apart from
helping the retailer with local advertising.
9. To Create Brand Preference: This type of advertising does two things: (I) it creates a
brand image or personality (ii) It tells the target audience why Brand X is better than
Brand Y. In this type of advertisement, the product or brand acquires a ‘personality’
associated with the user, which gives the brand a distinctive ‘image’. The second type of
advertising also known as ‘comparative advertising’, takes the form of comparison
between two brands and proves why one brand is superior.
10. Few other objectives: Advertising also helps to boost the morale of sales people in the
company. It pleases sales people to see large advertisements of their company and its
products, and they often boast about it. Other uses of advertising could include recruiting
staff and attracting investors through “Public Issue” advertisements announcing the
allotment of shares etc. You must understand that an Advertising Objective is a
Communication Objective "An Advertising goal is a specific communication task, to be
accomplished among a defined audience to a given degree in a given period of time".
AD. CAMPAIGNS
The ad campaign is guided by the promotion and advertising plans which evolve from
marketing objectives and strategy.
The steps are not necessarily sequential and are individual activities; in practice,
advertises undertake two or more of them simultaneously.
2. Analyzing and defining the target market – good advertising starts with a clear
understanding of marketing goals based on a thorough market analysis.
a. Who buys the product
b. What do they really buy
c. When do they buy
d. How do they use the product
3. Setting Advertising Objectives – set objectives for an advertising campaign and also
for each ad in each medium used.
4. Determining the Advertising Budget – the budget controls all proposed expenditures
by fixing a limit. The advertising budget is basically a plan to allocate financial
resources to advertising for future operations.
5. Deciding Media and Creative Strategy – involves decisions about media and
creation of advertisements. Media plan is developed simultaneously with creative
plan. Creative strategy concerns what message to deliver to the audience for
accomplishing the objectives. Deciding the central theme, idea, image, or position is
a critical part of the creative process which becomes the cornerstone of all individual
ads that constitute the campaign.
6. Creating Ads, pre-test and Release Ads – pretesting advertising strategy and
execution, various techniques such as market tests, focus groups, surveys, compute
simulation tests, etc. Used before the ads are placed in the media.
7. Evaluating the final Results (post-testing) – is done to evaluate the final results of
the ad campaign. These results are concerned with measuring the campaigns
effectiveness.
The creative director's post has become a more responsible one. He does not
remain content with a clever copy or stimulating visuals. He is required to understand
the product and its market completely. He is now an overall ad man, an all-rounder.
He participates in research and has active role in positioning.
DAGMAR APPROACH
Russel H Colley (1961) prepared a report for the Association of National Advertisers
titled “Defining Advertising Goals for Measured Advertising Results” DAGMAR.
He developed a model for setting advertising objectives and measuring the results of
an ad campaign.
According to this model, communications effects are the logical basis for setting
advertising objectives and goals against which results should be measured.
ADVERTISING INDUSTRY
THE ADVERTISING INDUSTRY CONSISTS OF THREE PRINCIPAL GROUPS:
(A) SPONSORS;
(B) MEDIA ; AND
(C) ADVERTISING AGENCIES OR ADVERTISING DEPARTMENTS.
ADVERTISING AGENCIES ARE OF TWO BASIC TYPES, VIZ., INDEPENDENT; AND HOUSE.
AN INDEPENDENT AGENCY IS A BUSINESS THAT IS FREE TO COMPETE FOR AND SELECT ITS
CLIENTS.
A HOUSE AGENCY IS OWNED BY ITS MAJOR CLIENT. A HOUSE AGENCY IS NOT
UNIT – II
Media Planning
“Media Planning is the series of decisions involved in delivering the promotional
message to the prospective purchasers and or on users of the product or brand”
“Media planning is a process, which means a number of decisions are made, each of
which may be altered on abandoned as the plan develops”.
Medium:
The Medium is the general category of available delivery systems, which includes
broadcast media (like TV and Radio). Print media (like Newspapers and magazines), direct
mail, outdoor advertising, and other support media.
Media Vehicle
Media vehicle is the specific carriers within a medium category.
The Media Plan / Activities
The media plan determines the best way to get the advertiser’s message to the market.
In a basic source, the goal of the media plan is to find that combination of media that enables
the marketer to communicate the message in the most effective manner to the largest no. Of
potential customer at the lowest cost.
Situation Analysis Marketing Creative strategy
strategy plan plan
Setting media
objectives
Determine media
strategy
Selecting broad
media class
Selecting media
within class
Evaluation and
follow up
Types of scheduling
E) Reach Vs. Frequency:
Since advertise have a variety of objectives and face budget constraints, they usually must
trade off reach and frequency. They must decide whether to have the message be seen /heard
by more people (reach) / by fewer people more often (frequency). Reach is the percentage
of the target population exposed at least once to the advertiser’s message during a specific
time frame. Equally as important as the percentage of people exposed (reach) is the number
of times they are exposed. This rate of exposure is called frequency.
Average Frequency – the average number of times the reached audience is exposed to the
media vehicle during a specified period of time.
How much reach is necessary?
Determinants of reach
1. More prospective customers are reached by a media schedule using multiple media
rather than a single medium
2. Another influencing factor is the number and diversity of media vehicles used
2. Reach can be increased by diversifying the day parts used to advertise
What frequency level is needed?
Media Class – refers to the general category of delivery systems available to carry
advertising messages to a selected audience such as print media, broadcast media,
outdoor media, etc.
Media Vehicle – is the specific message carrier within a medium, such as computer at
home and Business today magazines are vehicles in print media.
Broadcast, press, outdoor, posters and cinema are often referred as ‘above-the-line
media’.
Direct mail, sales promotion, exhibitions, merchandising, sales literature, etc. Are
referred to as ‘below-the-line-media’
‘Media Planning’ refers to a series of decisions that need to taken in delivering the ad
message to the largest number of the target audience in the most effective manner at
the lowest cost. The plan specifies ‘media objectives’ and ‘media strategies’ to
accomplish the objectives.
‘Coverage’ refers to the potential audience that might get exposed to the ad message
through a media vehicle.
‘Frequency’ refers to the number of times the audience is exposed to a media vehicle
in a given period of time.
Gross Rating Points (grps) – refers to the total weight of a media effort, quantatively,
it is equal to reach multiplied by average frequency.
The basic goal of a media plan is to formulate a particular combination of media that
would enable the advertiser to communicate the message successfully and effectively
to the maximum number of potential and existing customers in the target market at the
lowest cost.
Steps in the Development of Media Plan
(i) Market Analysis and Identifying the Target Market - The key questions at this
stage: (1) who is the target audience for advertising, (2) what internal and external
factors may influence the media plan? (3) where and when to focus the advertising
effort? The market analysis may reveal more than a few target markets. To
decide which specific groups need to be addressed, the media planner works with
the client, account executives, marketing department and the creative directors. At
this stage, the media planner may need some secondary or primary data regarding
the audience size, composition and exposure figures, etc.
(ii) Establishing Media Objectives – media objectives are formulated to help
accomplish the advertising communications task and marketing objectives. Media
objectives are translated into specific goals for the media programme and are
limited to those that can be achieved through media strategies. For examples, the
media objectives can be stated as,
a. Use print media to provide coverage of 80% of the target market over a six-
month period, staring May.
b. Reach 60% of the target audience at least three times over the same six-month
period.
c. Concentrate heaviest advertising between October and December, with lighter
emphasis in earlier months.
(iii) Develop and Implementing Media Strategies
a. Media Mix and Target Market Coverage – once media objectives are
established, planners develop suitable media strategies to accomplish these
objectives. The product characteristics, objectives, size of the media budget,
and individual preferences are some of the factors that may influence choice of
media combination. To effectively cover the target market, the media planner
determines the segments that should get the maximum media emphasis.
b. Geographic Coverage – geography is an important consideration in the media
planning process. The demand for certain types of products depends on the
geographic locations of the markets. There may be regional differences in
consumption and accordingly media planners select secondary localized media
to supplement their national media schedule.
c. Scheduling – media schedule is the calendar of advertising plan. Scheduling
is concerned with timing the insertion of advertisements in the selected media.
There are three approaches to scheduling:
i. Continuity – refers to a continuous pattern of advertising, which can
mean every day, every week,or every month.
ii. Flighting – refers to a less regular schedule of advertising messages
and is quite popular. There are intermittent periods of advertising and
no advertising.
iii. Pulsing – is a combination of continuity and flighting. The continuity
is maintained as a base throughout but, during certain periods, the level
of advertising stepped up.
d. Media Reach and Frequency – media planners face the essential task of
ensuring optimal use of media budget while deciding about the reach,
frequency and the number of advertising cycles affordable for the year. Media
planners make compromises and strike a balance between reach, frequency
and the number of advertising cycles in the planning period.
i. “programme rating” is a measure of potential reach of broadcast
media and is expressed as a percentage.
ii. “gross rating points (GRP)” is a numerical figure indicating how many
potential audience members are likely to be exposed to a series of
commercials. GRP = Reach x Frequency
iii. “Target Rating Points (trps)” refer to the number of times and the
number of individuals in the primary target audience that the media
will reach.
iv. “Impact” is the instrusiveness of the ad message which means whether
the ad message was actually perceived by the audience.
e. Qualitative Aspects of Media Vehicle Source – this concept refers to the
qualitative value of the media vehicle and there is general agreement that
vehicle source effect exists. There are at least six attributes that should be
considered while choosing a media vehicle:
i. Expertise – degree of expertise associated with its area of interest is
important.
ii. Prestige – for some products the prestige of a media vehicle is
considered to be important.
iii. Editorial “fit” – in a media vehicle, when the editorial matter discusses
some attribute, it is likely that even an ambiguous ad close by will be
interpreted being in mind, as the editorial matter makes discussed
attribute readily accessible in the memory.
iv. Mood created – media vehicles can enhance the creativity of a
message by creating a mood that affects the impact of a commercial
communication.
v. Involvement – the involvement of target audience members in a media
vehicle should generate more impact of an ad message as compared to
another vehicle that is less interesting to audience.
vi. Unbiased approach – it is also important that advertiser do not attempt
to influence the media objectivity.
This is used to compare cost figures of same medium broadcast vehicles and is also referred
as cost per point. One rating point means 1% of a broadcast station’s coverage area.
Milline rate:
Media buyers use the milline rate to compare the costs of space in newspapers. A milline rate
is the cost in rupees per line of standard dimensions to reach a newspaper circulation of one
million.
FREQUENCY
The term frequency refers to the number of advertisements of the same size appearing in an
individual medium for a given period such as per day, per week, per month, or per campaign.
There is no formula to determine the ideal frequency. The two factors are the size of the
advertising fund and the size of the advertisement to be run. If these are known, frequency can be
derived. The two other factors are the Number of media and the advertising period. As the
number of media increases, there is pressure for a lower frequency, or to shorten the advertising
period. The other possibilities are to enlarge the fund, or to reduce the size of the advertisement.
Manufacturers cannot ignore the fact that what the competitors are doing in respect Of frequency.
The more often a message is repeated, the greater the proportion of it the consumer remembers.
Message Design and Positioning
Message design identifies the consumer’s perceptions about the products. The following
questions give a good insight:
(i) What is the nature of the product: its generic category.
(ii) For whom it is meant: the segment.
(iii) What are the special characteristics of the product? How is the consumer going to
be benefited?
(iv) Who are the competitors? What is their promise?
(v) Is the product different from the other available products? How? Is it a
technological breakthrough?
(vi) On which occasions will the product be used? How often?
(vii) What would you like your consumer to perceive this brands as? What position it
would take?
The answer to these questions is given by marketing research and by the advertiser and his
agency. The creativity of the agency matters more here.
Message Presentation
Message are to be structured keeping the objective of the communication and the
audience in view.
Messages are presented either centrally or peripherally.
o A central message takes a direct route to persuasion. It is a well documented
ad. It compares advantages and disadvantages of a product. This central
presentation provokes active cognitive information processing.
o Peripheral presentation provides pleasant association, scenic background, and
favorable inferences about the product. These are distinct, rational and
emotional appeal ads.
Message Format
Message format an important step in message development. By format, we mean the
organization, plan, style or type of ad message. The message format is the scheme by which
the message content and structure strategy are implemented. It is characterized by the type of
media vehicle in which the message is delivered.
MESSAGE DEVELOPMENT
There are so many media that carry the ad messages. There are so many products which are
advertised in these media. A number of companies advertise their products. We have
therefore a lot of communication in all directions—direct, indirect, zigzag and all-sided.
Perhaps there is over-communication. This leads us to the concept of clutter, and how to
overcome it.
2.1 MEANING
Layout is the logical arrangement of components of an advertisement in the copy. It refers to the
overall structure, the position assigned to the various elements of the copy and illustrations. It is
deciding on the placement of headlines, copy,
Illustrations, marketer’s name, logo and the amount of free space in an advertisement copy. Thus,
the physical arrangement of all the elements of advertisement is called layout. It is concerned
with placing all the elements of the advertisement more attractively within the allotted space and
time. The pattern of layout varies according to the medium to be used.
DEFINITION
According to sandage and fryburger, “the plan of an advertisement, Detailing the arrangement of
various parts and relative spatial importance of each is referred to as layout”.
Background: Could have picture, tiles, blocks, and graphics but should not
overshadow the foreground.
Border: Is the frame of the advertisement. Could be,
o · Heavy
o · Light
o · Obvious
o · Unobtrusive
o · Plain
o · Fanciful
o · Useful
o · Useless
The practice you must know is the elimination of border in today’s context. Except when
you have to present a key point, or a sales pitch then it could be used.
Heading: This is the title of the ad. Should be short, but could be four, five or even six
decked. Words in the heading should be short and verbs should be used to attract
attention.
Illustration: It is the dominating picture in the ad. It could be the product itself or a
model. Large pictures are preferred than small ones but it is not a hard and fast rule.
Small pictures are to make the copy comfortable. The main picture tries to position
the picture. It can attract the right target audience by showing the right picture. People
showing the product could be a better picture than the product itself. The illustration
should show the benefit offered by the product.
Caption: Used to describe the sub-title. It tells the story quickly, clearly and
decisively. Sometimes difficult to locate. But it is an important part of the layout.
Coupon: This is a part of the advertisement that enables a consumer to get in touch
with the advertiser. The name and postal address is an integral part of any coupon.
The offer or the request must follow in close heal. The obligation of the customer is
given by their signature space. No hard and fast rule is there regarding the position of
the coupon in the layout. Although in most of the advertisements it normally lies at
the end. Both rectangular and triangular ones are in popular use. It is normally on the
right hand side keeping in mind that most people are right handed.
Decoration: Greater interest for the applicability of decoration is in the fact that it
should supplement or emphasize the message of the advertisement as a whole. Heavy
or light would be at the discretion of the layout person.
Mascot: It is also known as the ‘Trade Character’ or ‘Trade Figure’. It may be defined
as an illustration of either real or an imaginary figure or personality introduced into
the advertisement to personalize the sales message or the name of the product or
service. Maharaja of the Air India is a suitable example.
Logo or Name Plate: This is the signature of the advertisement. The inclusion of the
company’s name and address is not always important hence the logo or a specially
designed image of the brand or the company can replace that. The popular logos of
Tata, Mercedes Benz, Toyota, Star TV network, etc are a good example. The logo
goes on to make the Corporate Identity i.e. What does the company or the brand
stands for?
(Ii) opportunity of modification - the layout offers an opportunity to the creative teams, agency
management and the advertiser to suggest modification before its final approval and actual
construction and production begins.
(iii) specification for costs – the layout provides specification for Estimating costs and it is a
guide for engravers typographers and other craft workers to follow in producing the
advertisement.
(2) proportion- proportion is closely related to balance since it refers to the division of space
among layout elements for a pleasing optical effect. Good proportion in an advertisement requires
a desired emphasis on each element in terms of size and position. If the major appeal in an
advertisement is product’s price. The price should be displayed in proportionate space position.
(3) contrast and emphasis – contrast means variety. It gives life to
The whole composition and adds emphasis to selected important elements. An advertiser always
looks to advertisements from completion point of view and desires the policy of the most
important elements to attract the attention of the people. An advertisement with good contrast
may attract the attention of customers contrast maybe visible in a number of ways. It may be
witnessed through sizes, shapes and colours. Different colours sizes and shapes of elements in an
advertisement add contrast. The varying directions, of design elements (vertical trees, horizontal
pavements arched rainbows) add contrast; too there must be sales
Communication purpose behind every layout decision made.
(4) eye movement – eye movement is the design principle which helps
Move the eyes of the readers from element to element in the order given in the hierarchy of
effects model for effective communication of the message in advertising. An effective ad uses
movement to lead its reading audience from initial message awareness through product
knowledge and brand preference, to ultimate action (intent to purchase). Direction and sequence
are two terms for the same element and artists may perform it in many ways. Mechanical eye
direction may be created by devices such as pointing fingers lines arrows or even a bouncing ball
that moves from unit to unit. Planned eye movement should follow the established reading
patterns too, such as the tendency to start to top left corner of a page and read through to the
lower right corner. The eyes also moves naturally from large items to small from dark to light and
from colours to not – colours.
(5) unity or harmony – unity or harmony is another important design
Principle. Although each element should be considered as a separate unit in striving for balance,
proportion, contrast and eye movement. The complete layout or design should appear as a unified
composition. Common methods of securing unity in layouts are (i) use of consistent
typographical design. (ii) repetition of the same
Shapes and motifs, (iii) the overlapping of elements (iv) use of a boarder to hold elements
together and (v) avoidance of too much which space between various element. Although unity
and contrast seem conflicting but they function quite smoothly together if they operate at cross
purposes – if the artists strive for balance
Here too as well as in the layout overall. Unity contributes orderliness to elements – a state of
coherence. And if they are properly placed. Contrasting size shapes colours and directions can
flow together beautifully.
2.1.5 elements of a layout
An advertising copy is the means by which the advertiser’s ideas are
Given expression to in a message to readers. Regardless of its length and brevity copy refers to all
the reading matters of an advertisement, including the headline, sub- headlines, text or body, and
the name of the firm or the standard initials of the advertiser. As we have seen that advertising has
so many immediate purposes but
Its ultimate goal is to stimulate sales. As a reader turns the pages of a magazine or newspaper, he
notices so many advertisements but a great variation in copy. Some copy may be so sticking that
the reader takes immediate action and rush to the nearest dealer to purchase it while there may be
some other copy or copies that he does not like or it does not click to his mind. The first copy
conforms to the requisites of a good copy. A copywriter must take pains in making up a sound
Advertisement copy containing its various components i.e. Headlines, subhead lines, illustrations
etc. The following are the main components of an advertisement copy
1. Background 9. Name plate
2. Border 10. Price
3. Caption 11. Product
4. Coupon 12. Slogan
5. Decoration 13. Space
6. Heading 14. Sub-heading
7. Illustration 15. Text
8. Mascot 16. Trademark16. Trademark
1. Background
The background for the advertisements should be somewhat catchy and colourful. The
arrangement of background differs from medium to medium and advertisement to advertisement.
In short, background should be suitable for the contents of the advertisement.
2. Border
It is defined as the frame of the advertisement. Border is employed to impart the reading
atmosphere. The border may be light or heavy, obvious, plain or fanciful. The border may also
contain a logo.
3. Caption
It refers to the subtitle. But in most of the advertisement it is converted into heading or sub-
heading.
4. Coupon
Coupon is that part of the advertisement which is intended for the
Convenience of the prospective customer in communicating with the advertiser. The coupon must
contain the name and full postal address of the firm followed by the offer. The offer should be
brief and clear. There should be space for name and address of the prospective customer. The
usual shape of the coupon is triangular or rectangular.
5. Decoration
Advertisement decoration is the ornament of the advertisement. This is done to emphasis the
advertisement message.
6. Heading the heading or headline is defined as the title of the advertisement. The words in the
heading should be short.
7. Illustration
Illustrations are the part of layout that pictures the basic theme of the advertisement. It has the
power to capture the attention of the reader. The advertisements become richer by the use of
illustrations.
8.mascot
It is known as the trade character or trade figure. It is an illustration of either a real or an
imaginary figure or personality given in the advertisement.
9. Name plate (logo)
The name plate or name block is the signature of the advertiser. It represents the personality of
the company and its product.
10. Price
It is another part of layout. The price of the product should be featured clearly. The price is
usually taken in the concluding lines of the copy.
11. Product
It refers to the representation of the product offered for sale. A very popular practice is to show
the product in use with illustrations.
12. Slogan
Slogan is a sales argument. The arrangement of slogan in the layout is determined by the
importance of its relation to the advertising message.
13. Space
Space refers to the entire space left in the space hired by the advertiser. This depends on the
design of the copy.
14. Subheading
It is a secondary heading. It is given to support the heading or to pick out the various selling
points given in the text.
15. Text
Text or body of the advertisement refers to the general reading matter. It is the subject matter of
the copy. It should be neither too wide nor too narrow.
16. Trade mark
It is a word or design by which a product is defined. If the trade, marks are registered it can be
included in the layout.
Importance of measuring the effectiveness of advertising
(1) it acts as a safety measure
Testing effectiveness of advertising helps in finding out ineffective
Advertisement and advertising campaigns. It facilitates timely adjustments in advertising to make
advertising consumer oriented and result oriented. Thus waste of money in faulty advertising can
be avoided.
(2) provides feed back for remedial measures
Testing effectiveness of advertising provides useful information to the advertisers to take
remedial steps against ineffective advertisements.
(3) avoids possible failure
Advertisers are not sure of results of advertising from a particular
Advertising campaign. Evaluating advertising effectives helps in estimating the results in order to
avoid complete loss.
(4) to justify the investment in advertising
The expenditure on advertisement is considered to be an investment. The investment in
advertising is a marketing investment and its objectives should be spelt out clearly indicating the
results expected from the campaign. The rate and size of return should be determined in advance.
If the expected rate of return is
Achieved in terms of additional profits, the advertisement can be considered as effective one.
(5) to know the communication effect
The effectiveness of the advertisement can be measured in terms of their communication effects
on the target consumers or audience. The main purpose of advertising is communicated the
general public, and existing and prospective consumers, various information about the product
and the company. It is therefore desirable to seek post measurements of advertising in order to
determine whether advertisement have been seen or heard or in other words whether they have
communicated the theme, message or appeal of the advertising.
(6) compare two markets
Under this procedure, advertising is published in test markets and results are contrasted with
other. Markets – so called control markets – which have had the regular advertising programme.
The measurements made to determine results may be measurements of change in sales, change in
consumer attitudes, changes in dealer display. And so on depending upon the objectives sought by
the advertiser.
AD APPEAL
Appeals and Advertising Message
The message content refers to what the advertiser has to say to the target audience that
will produce the desired response. It may be an appeal, a time, an idea or a unique
selling proposition.
In fact, the message content ultimately formulates some kind of benefit, motive or
reason why the audience should respond to, or do, something.
Rational appeals are those directed at the thinking process of the audience. They
involve some sort of a deliberate reasoning process, which a person believes would be
acceptable to other members of his social group. They attempt to show that the
product would yield the expected functional benefit.
Rationality has come to be equated with substance. A rational ad becomes believable
and effective. Although there may be some disagreement regarding which motives are
rational and which are emotional.
The following are some buying motives, which are normally, considered rational
under ordinary circumstances:
(i) High Quality : People buy television, stereophonic music systems, furniture,
refrigerators, electric gadgets; kitchenware and a host of consumer durables for
their high quality. Many consumer goods, too, are bought for their quality, such as
clothing, beverages, food items, etc., and not merely because of their taste or
fashion, or style.
(ii) Low Price : Many people buy low-priced locally made air conditioners for their
homes because they believe that these products will show a product performance
similar to, or slightly inferior to, that of nationally reputed brands at higher price.
Whether this is true or not, a person, as long he believes this to be true, thinks his
reason will be accepted as a “good” one by his social group. In this case, he is
exhibiting a rational motive.
(iii) Long Life, as of a car tyre that will give 30,000 kms, before its utility has been
exhausted.
(iv) Performance, as of a ballpoint pen that won’t release excessive ink or skip under
any circumstances.
(v) Ease of use, as of a screwdriver with a magnetized tip which clings to the metal
head of the screw, or a timer in the kitchen mixer which switches off automatically
after a predetermined time period.
(vi) Re-sale Value, as of a two-wheeler scooter. “Bajaj” has a better re-sale value than
any other make.
(vii) Economy, in the operating expenses of some brands of refrigerator is greater
because they consume less electricity. Many two-wheeler vehicles claim a better
mileage per litre consumption of fuel than similar other vehicles.
Consumer durables of high value ‘are also often bought on the basis of rational
appeals.
People are ready and willing to give rational motives if asked why they have made a
particular [purchase.
Emotional appeals are those appeals, which are not preceded by careful analysis of
the pros and cons of making a buying.
Emotions are those mental agitations or excited states of feeling which prompt us to
make a purchase.
Emotional motives may be below the level of consciousness, and may not be
recognized by a person; or even if he is fully aware that such a motive is operating, he
is unwilling to admit it to others because he feels that it would be unacceptable as a
“proper” reason for buying among his associates and colleagues.
Emotional appeals are designed to stir up some negative or positive emotions that will
motivate product interest or purchase.
Different emotional appeals, which are particularly important from the advertising
point of view, are listed below.
Following several motivation research studies, it has been found that negative
emotional appeals are more effective than positive ones.
We shall also, therefore, name the negative appeals first.
Negative Emotional Appeals: An advertiser may try to induce a particular behavioral
change by emphasizing either positive or negative appeals, or a combination of both.
For example, an advertising campaign to get the target audience to buy fire insurance
may stress the positive aspect -low cost relative to other investment, the services the
insurance company provides, early settlement of claims, and so on; or it may stress
the negative aspect of not getting insurance - the danger of losing one’s possessions or
the ravages of fire. Positive appeals use the strategy of “reducing” a person’s anxiety
about “buying and using” a product, while negative appeals use the strategy of
“increasing” a person’s anxiety about “not using” a product or service.
In general, a positive appeal stresses the positive gains to a person from complying
with the persuasive message; the negative appeal stresses his loss if he fails to
comply. We give here the different dimensions of emotional appeals.
Fear Appeals
The fear appeal is most important among emotional appeals, and also the most
effective. It is said that the message’s effectiveness increases with the level of fear it
generates. The use of fear appeal in getting people to start doing things they should is
very common.
Many ad messages of toothpaste employ this appeal. They present the fear of tooth
decay or unhealthy gums or bad breath, and then suggest the use of a specific brand of
toothpaste to get rid of such fears.
(i) Desire to be different, as illustrated by people who build an ultra modem home in
an area of traditional homes.
(ii) Desire to confirm, as in the case of teenage boy and girls who want to be “in
jeans” because all their friends wear jeans.
(iii) Desire to attract the opposite sex, as shown by a teenage girl who buys a new
cosmetic in order to make her skin more beautiful.
(iv) Desire for prestige, as shown by a person who buys the most expensive
automobile (Mercedes, Toyota, etc.) He can afford in order to impress his friends.
Direct Appeals
Direct appeals are those that clearly communicate with the consumers about a given
need, followed by a message that extols the advertised brand as a product that satisfies
that need.
In Industrial advertising, some ads may have a direct appeal, satisfying the customer’s
technical need; but, in consumer advertising, the direct appeal plays a very limited
role.
Indirect Appeals
Indirect appeals are those that do not emphasize a human need, but allude to a need.
Because advertisers understand the influence of needs upon selective perception, they
leave some ambiguity in the message so that the consumers may be free to interpret it
and the need to which the advertiser is appealing.
I. Feature-oriented Appeals: The basic message is about product features, characteristics and
attributes. Examples: Instant Shine, Cherry shoe polish, ‘’Promise,’’ the unique toothpaste
with the time-tested clove oil.
Ii. Use-oriented Appeals: The basic message emphasizes specific in-operation and/or post-
operation advantages of the brand advertised. Examples: Anne French hair remover ad: “How
much cruelty can a woman’s skin bear?” The headline is a searching question. The- ad
message discards other methods of hair removing - they are shaving, waxing, and threading.
Then it goes on to inform you how gently hair is removed with Anne French.
Iii. Product Comparison Appeals: “The basic message emphasizes the differences between
the advertised brand and the competing brands. The advertised brand, of course, has a net
advantage over those with which it is compared; otherwise the whole exercise becomes futile.
(i) Attitude-oriented Appeals: The basic message is one that is in line with the
consumer’s attitude - his value – belief structure. Example: The ad series by
Shriram group, namely: “Indian Corporate Evolution. The Shriram Experience.”
In one of the ads, it says: “we are Indians. We must remember our roots.” Then it
goes on to state the group’s belief in Indian traditions and the advantages it shares
with the country. This message refers indirectly to Maslow’s esteem need.
(ii) Significant Group-oriented Appeals: The basic message emphasizes the kind of
group that uses or approves of the advertised brand. The group may be a reference
group, a social group, or a peer group, or any other group that is significant for the
consumer target. The ad says: “Some possessions define a character. Some
distinguish it. A cigarette so distinguished, it’s by appointment to your Majesty.”
(iii) Life Style-oriented Appeals: The basic message emphasizes an identifiable life
style relevant to a defined target market. Example: An ad of Charminar cigarette
making an appeal with its strong taste. For some hard smokers, a “strong”
cigarette can only give relaxation, particularly after a day’s hard work. One needs
a Charminar.
(iv) Sub-conscious-oriented Appeals: The basic message is distinguished and is
directed at the consumer’s subconscious or unconscious) need. These messages
are aimed at the buyer’s dream world, but are veiled in some manner by messages
appealing to the buyer’s conscious mind. Example: ‘Petals’ brassieres of VIP are
advertised with a dreamy message: “As you flower into a woman, you discover
the epitome of international fashion. Discover Petals.”
(v) Image-oriented Appeals: Although all advertising appeals create a brand image in
the minds of consumers, the image oriented approach is distinct in the sense that
here the advertiser, consciously and purposefully, makes an effort to mould a
brand image. There is an intention to create a specific brand image. One strategy
is to create a brand image that “fits” either the self-image or self-ideal image of
the target market.
Selling points are those product attributes that are listed in the advertisement copy to impress
upon the consumer the significance of a product to him. They could be specifications, quality
statements, composition statements, descriptive or narrative or performance statements. Some
selling points are primary selling points and the rest are subsidiary selling points. Selling
points in order to be effective must have the force to appeal to a particular buying motive. So
selling points successfully touch upon the buying motives.
Consumer sales promotions are steered toward the ultimate product users—typically
individual shoppers in the local market—but the same techniques can be used to
promote products sold by one business to another, such as computer systems, cleaning
supplies, and machinery. In contrast, trade sales promotions target resellers—
wholesalers and retailers—who carry the marketer's product.
Following are some of the key techniques used in consumer-oriented sales
promotions.
PRICE DEALS
A consumer price deal saves the buyer money when a product is purchased. The main
types of price deals include discounts, bonus pack deals, refunds or rebates, and
coupons.
Price deals are usually intended to encourage trial use of a new product or line
extension, to recruit new buyers for a mature product, or to convince existing
customers to increase their purchases, accelerate their use, or purchase multiple units.
Price deals work most effectively when price is the consumer's foremost criterion or
when brand loyalty is low.
Price Discounts: Buyers may learn about price discounts either at the point of sale or
through advertising. At the point of sale, price reductions may be posted on the
package, on signs near the product, or in storefront windows. Many types of
advertisements can be used to notify consumers of upcoming discounts, including
fliers and newspaper and television ads. Price discounts are especially common in the
food industry, where local supermarkets run weekly specials. Price discounts may be
initiated by the manufacturer, the retailer, or the distributor. For instance, a
manufacturer may "pre-price" a product and then convince the retailer to participate in
this short-term discount through extra incentives. For price reduction strategies to be
effective, they must have the support of all distributors in the channel. Existing
customers perceive discounts as rewards and often respond by buying in larger
quantities. Price discounts alone, however, usually do not induce first time buyers.
Bonus Pack or Banded Pack: Another type of price deal is the bonus pack or banded
pack. When a bonus pack is offered, an extra amount of the product is free when a
standard size of the product is bought at the regular price. This technique is routinely
used in the marketing of cleaning products, food, and health and beauty aids to
introduce a new or larger size. A bonus pack rewards present users but may have little
appeal to users of competitive brands. A banded pack offer is when two or more units
of a product are sold at a reduction of the regular single-unit price. Sometimes the
products are physically banded together, such as in toothbrush and toothpaste offers.
Coupons: Coupons are legal certificates offered by manufacturers and retailers. They
grant specified savings on selected products when presented for redemption at the
point of purchase. Manufacturers sustain the cost of advertising and distributing their
coupons, redeeming their face values, and paying retailers a handling fee. Retailers
who offer double or triple the amount of the coupon shoulder the extra cost. Retailers
who offer their own coupons incur the total cost, including paying the face value. In
this way, retail coupons are equivalent to a cents-off deal. Manufacturers disseminate
coupons in many ways. They may be delivered directly by mail, dropped door to door,
or distributed through a central location such as a shopping mall. Coupons may also
be distributed through the media—magazines, newspapers, Sunday supplements, or
free-standing inserts (FSI) in newspapers. Coupons can be inserted into, attached to,
or printed on a package, or they may be distributed by a retailer who uses them to
generate store traffic or to tie in with a manufacturer's promotional tactic. Retailer-
sponsored coupons are typically distributed through print advertising or at the point of
sale. Sometimes, though, specialty retailers or newly opened retailers will distribute
coupons door to door or through direct mail.
CONTESTS/SWEEPSTAKES
The main difference between contests and sweepstakes is that contests require
entrants to perform a task or demonstrate a skill that is judged in order to be
deemed a winner, while sweepstakes involve a random drawing or chance contest
that may or may not have an entry requirement.
At one time, contests were more commonly used as sales promotions, mostly due
to legal restrictions on gambling that many marketers feared might apply to
sweepstakes.
Furthermore, participation in contests is very low compared to sweepstakes, since
they require some sort of skill or ability.
SPECIAL EVENTS
According to the consulting firm International Events Group (IEG), businesses spend
over $2 billion annually to link their products with everything from jazz festivals to
golf tournaments to stock car races. In fact, large companies like RJR Nabisco and
Anheuser-Busch have special divisions that handle nothing but special events.
Special events marketing offer a number of advantages. First, events tend to attract a
homogeneous audience that is very appreciative of the sponsors. Therefore, if a
product fits well with the event and its audience, the impact of the sales promotion
will be high. Second, event sponsorship often builds support among employees—who
may receive acknowledgment for their participation—and within the trade.
PREMIUMS
Incentives that are given for free at the time of purchase are called direct premiums.
These offers provide instant gratification, plus there is no confusion about returning
coupons or box tops, or saving bar codes or proofs of purchase.
Other types of direct premiums include traffic builders, door openers, and referral
premiums. The garden tool is an example of a traffic-builder premium—an incentive to lure a
prospective buyer to a store. A door-opener premium is directed to customers at home or to
business people in their offices. For example, a homeowner may receive a free clock radio for
allowing an insurance agent to enter their home and listening to his sales pitch. Similarly, an
electronics manufacturer might offer free software to an office manager who agrees to an on-
site demonstration. The final category of direct premiums, referral premiums, rewards the
purchaser for referring the seller to other possible customers.
Mail premiums, unlike direct premiums, require the customer to perform some act in order to
obtain a premium through return mail. An example might be a limited edition toy car offered
by a marketer in exchange for one or more proofs-of-purchase and a payment covering the
cost of the item plus handling. The premium is still valuable to the consumer because they
cannot readily buy the item for the same amount.
CONTINUITY PROGRAMS
Continuity programs retain brand users over a long time period by offering ongoing
motivation or incentives.
Continuity programs demand that consumers keep buying the product in order to get
the premium in the future.
Trading stamps, popularized in the 1950s and 1960s, are prime examples. Consumers
usually received one stamp for every dime spent at a participating store. The stamp
company provided redemption centers where the stamps were traded for merchandise.
A catalog listing the quantity of stamps required for each item was available at the
participating stores.
When competing brands have reached parity in terms of price and service, continuity
programs sometimes prove a deciding factor among those competitors.
SAMPLING
A sign of a successful marketer is getting the product into the hands of the consumer.
Sometimes, particularly when a product is new or is not a market leader, an effective
strategy is giving a sample product to the consumer, either free or for a small fee. But
in order for sampling to change people's future purchase decisions, the product must
have benefits or features that will be obvious during the trial.
There are several means of disseminating samples to consumers. The most popular
has been through the mail, but increases in postage costs and packaging requirements
have made this method less attractive.
An alternative is door-to-door distribution, particularly when the items are bulky and
when reputable distribution organizations exist. This method permits selective
sampling of neighborhoods, dwellings, or even people.
Direct sampling can be achieved through prime media using scratch-and-sniff cards
and slim foil pouches, or through retailers using special displays or a person hired to
hand out samples to passing customers.
Though this last technique may build goodwill for the retailer, some retailers resent
the inconvenience and require high payments for their cooperation.
A final form of sample distribution deals with specialty types of sampling. For
instance, some companies specialize in packing samples together for delivery to
homogeneous consumer groups, such as newlyweds, new parents, students, or
tourists. Such packages may be delivered at hospitals, hotels, or dormitories and
include a number of different types of products.
o Generate excitement about the product among those responsible for selling it.
Some of the most common forms of trade promotions—profiled below—
include point-of-purchase displays, trade shows, sales meetings, sales contests,
push money, deal loaders, and promotional allowances.
Probably the most effective way to ensure that a reseller will use a POP display is to
design it so that it will generate sales for the retailer. High product visibility is the
basic goal of POP displays.
In industries such as the grocery field where a shopper spends about three-tenths of a
second viewing a product, anything increasing product visibility is valuable.
POP displays also provide or remind consumers about important decision information,
such as the product's name, appearance, and sizes.
The theme of the POP display should coordinate with the theme used in ads and by
salespeople.
TRADE SHOWS
Thousands of manufacturers display their wares and take orders at trade shows. In
fact, companies spend over $9 billion yearly on these shows.
Trade shows provide a major opportunity to write orders for products. They also
provide a chance to demonstrate products, disseminate information, answer questions,
and be compared directly to competitors.
Related to trade shows, but on a smaller scale, are sales meetings sponsored by
manufacturers or wholesalers. Whereas trade shows are open to all potential
customers, sales meetings are targeted toward the company's sales force and/or
independent sales agents. These meetings are usually conducted regionally and
directed by sales managers. The meetings may be used to motivate sales agents, to
explain the product or the promotional campaign, or simply to answer questions.
For resellers and salespeople, sales contests can also be an effective motivation.
Typically, a prize is awarded to the organization or person who exceeds a quota by the
largest percentage.
PUSH MONEY
At the end of that period, the salesperson would send evidence of these sales to the
manufacturer and receive a check in return.
Although some people see push money as akin to bribery, many manufacturers offer
it.
DEAL LOADERS
The second is a display loader, which means the display is given to the retailer after
the campaign.
For instance, General Electric may have a display containing appliances as part of a
special program. When the program is over, the retailer receives all the appliances on
the display if a specified order size was achieved.
TRADE DEALS
Trade deals are special price concessions superseding, for a limited time, the normal
purchasing discounts given to the trade.
Trade deals include a group of tactics having a common theme—to encourage sellers
to specially promote a product.
The marketer might receive special displays, larger-than-usual orders, superior in-
store locations, or greater advertising effort. In exchange, the retailer might receive
special allowances, discounts, goods, or money. In many industries, trade deals are the
primary expectation for retail support, and the marketing funds spent in this area are
considerable.
There are two main types of trade deals: buying allowances and advertising/display
allowances.
Background Information
The cola market is a mature market with lots of variety. Consumers are trying new and
innovative products. There’s strong growth in bottled water, juices, sports drinks and energy
drinks. Consumers are conscious cola drinkers; they are calorie conscious especially in their
20s and 30s. The Lime Coke is a new product in the market. Sprite, Coca-Cola’s ‘solid’
performer continues to be a great success as a strong competitor to this new product.
The nature of product is revolutionary; it should create emotional connection with the
consumers. The Lemon Cola drinkers, driven by youthful liberation, relate to life’s more
light-hearted and fun experiences. It is a drink of choice for people who are younger and
more exciting.
Objectives
New distribution of Lime Coke products through the channel distribution by motivating top
20% of the Manufacturer’s independent salespeople to move more Lime Coke products to
Retailers in order to generate an ultimate 40 to 50% sales during the Christmas season by
attracting consumers.
Channel Distribution Strategy
The distribution system has only two divisions (Independent Sales Rep and Retailer) before it
reach the consumer.
The product is new in a matured market, needs additional explanation and education for the
sales reps to have that carried over to the retailer to gain maximum consumer exposure in this
dominant market position.
There is a competitor product such as Sprite, certainly, there is a competition for distributor
resources in order to get attention. The channel function will only be selling, inventory
support, physical distribution and post sales services.