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INTEGRATED MARKETING COMMUNICATION II MBA -B

DEFINE INTEGRATED MARKETING COMMUNICATION.
Integrated Marketing Communications
A concept of marketing communications planning that recognizes the added value of a comprehensive
plan that evaluates the strategic roles of a variety of communication disciplinesfor example, general
advertising, direct response, sales promotion, and public relationsand combines these disciplines to
provide clarity, consistency, and maximum communications impact.


Don Schultz (1993) stated:
IMC is the process of developing and implementing various forms of persuasive communication
programs with customers and prospects over time.
The goal of IMC is to influence or directly affect the behaviour of the selected audience. IMC
considers all sources of brand or company contacts which a customer or prospect has with the product or
service as potential delivery channels for future messages.
Further, IMC makes use of all forms of communication which are relevant to the customer or
prospect, and to which they might be receptive.
In sum, the IMC process starts with the customer or prospect and then works back to determine and
define the forms and methods through which persuasive communications methods should be developed

Thus I MC means
Integrated marketing communication is a concept of marketing communications planning that recognizes the
added value of a comprehensive plan that evaluates the strategic roles of a variety of communications
disciplines - for example, general advertising, direct response, sales promotion, and public relations - and
combines these disciplines to provide clarity, consistency, and maximum communications impact (through
the seamless integration of discrete messages).
EXPLAIN COMMUNICATION MIX
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Key characteristics of marketing communications tools
Advertising
Sales
promotion
Public
relations
Personal
selling
Direct
marketing
Communications
Ability to deliver a personal message Low Low Low High High
Ability to reach a large audience High Medium Medium Low Medium
Level of interaction Low Low Low High High
Credibility given by target audience Low Medium High Medium Medium
Costs
Absolute costs High Medium Low High Medium
Cost per contact Low Medium Low High High
Wastage High Medium High Low Low
Size of investment High Medium Low High Medium
Control
Ability to target particular audiences Medium High Low Medium High
Management's ability to adjust: the
deployment of the tool as circumstances
change
Medium High Low Medium High

The Marketing Communications Mix is the specific mix of advertising, personal selling, sales
promotion, public relations, and direct marketing a company uses to pursue its advertising and
marketing objectives.
Definitions:
Advertising - Any paid form of nonpersonal presentation and promotion of ideas, goods, or services
by an identified sponsor.
Personal selling - Personal presentation by the firms sales force for the purpose of making sales and
building customer relationships.
Sales promotion - Short-term incentives to encourage the purchase or sale of a product or service.
Public relations - Building good relationships with the companys various publics by obtaining
favorable publicity, building up a good "corporate image", and handling or heading off unfavorable
rumors, stories, and events.
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Direct marketing - Direct communications with carefully targeted individual consumers to obtain
an immediate response and cultivate lasting customer relationships.
Setting the Promotion Mix
When deciding how to properly utilize the marketing communications mix to meet your marketing
objectives, it is important to consider the relative strengths and weaknesses of each component of the mix.
Further, define the total budget first (generally defined in the Marketing and/or Business Plan) and then
decide upon the best way to leverage the different elements of the mix to maximize the return .
Reaches large, geographically dispersed audiences, often with high
frequency; Low cost per exposure, though overall costs are high; Consumers perceive
advertised goods as more legitimate; Dramatizes company/brand; Builds brand image; may
stimulate short-term sales; Impersonal, one-way communication; Expensive
Most effective tool for building buyers preferences, convictions,
and actions; Personal interaction allows for feedback and adjustments; Relationship-oriented;
Buyers are more attentive; Sales force represents a long-term commitment; Most expensive
of the promotional tools
May be targeted at the trade or ultimate consumer; Makes use of a
variety of formats: premiums, coupons, contests, etc.; Attracts attention, offers strong
purchase incentives, dramatizes offers, boosts sagging sales; Stimulates quick response;
Short-lived; Not effective at building long-term brand preferences
Highly credible; Very believable; Many forms: news stories, news
features, events and sponsorships, etc.; Reaches many prospects missed via other forms of
promotion; Dramatizes company or product; Often the most under used element in the
promotional mix; Relatively inexpensive (certainly not 'free' as many people think--there are
costs involved)
Many forms: Telephone marketing, direct mail, online marketing,
etc.; Four distinctive characteristics: Nonpublic, Immediate, Customized, Interactive;
Well-suited to highly-targeted marketing efforts
When deciding upon your unique marketing communications mix, you should also consider the Product
Life Cycle.
Here are some general guideline as to how and when to emphasize different parts of the mix according to
the stages of a typical product life cycle:
Pre-Introduction: Light advertising, pre-introduction publicity
Introduction: Heavy use of advertising, public relations for awareness, sales promotion for trial
Growth: Advertising, public relations, branding and brand marketing, personal selling for distribution
Maturity: Advertising decreases, sales promotion, personal selling, reminder & persuasion
Decline: Advertising and public relations decrease, limited sales promotion, personal selling for distribution


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EXPLAIN THE COMMUNICATION PROCESS
The communications process should start with an audit of all the potential interactions that target customers
may have with the product and company.For example, someone purchasing a new computer may talk with
others,see television commercials, read articles and ads in newspapers and magazines,and try out computers
in the store. Marketers must assess the influence that each of these communications experiences will have at
different stages of the buying process. This understanding will help them allocate their communication
dollars more efficiently and effectively.
To communicate effectively, marketers need to understand how communication works. Communication
involves the nine elements shown in Figure .Two of these elements are the major parties in a
communicationthe sender and receiver. Another two are the major communication toolsthe message
and the media. Four more are major communication functionsencoding, decoding, response, and
feedback. The last element is noise in the system.
Sender: The party sending the message to another party - Hewlett-Packard.
Encoding: The process of putting thought into symbolic form agency assembles words and illustrations
into an advertisement that will convey the intended message.


Message: The set of symbols that the sender transmits -the actual HP multifunction machine ad.
Media: The communication channels through which the message moves from sender to receiverin this
case, the specific magazines in this case, the specific magazines that HP selects.
Decoding: The process by which the receiver assigns meaning to the symbols encoded by the sendera
consumer reads the HP multifunction machine ad and interprets the words and illustrations it contains.
Receiver: The party receiving the message sent by another partythe home office or business customer
who reads the HP multifunction machine ad.
Response: The reactions of the receiver after being exposed to the messageany of hundreds of possible
responses, such as the consumer is more aware of the attributes of HP multifunction machines,actually buys
an HP multifunction machine, or does nothing.
Feedback: The part of the receivers response communicated back to the senderHP research shows that
consumers are struck by and remember the ad, or consumers write or call HP praising or criticizing the ad or
HPs products.
Noise: The unplanned static or distortion during the communication process, which results in the receivers
getting a different message than the one the sender sentthe consumer is distracted while reading the
magazine and misses the HP ad or its key points.
For a message to be effective, the senders encoding process must mesh with the receivers decoding
process. Therefore, the best messages consist of words and other symbols that are familiar to the receiver.
The more the senders field of experience overlaps with that of the receiver, the more effective the message
is likely to be. Marketing communicators may not always share their consumers field of experience.
For example, an advertising copywriter from one social stratum might create ads for consumers
from another stratumsay, blue-collar workers or wealthy business owners. However, to communicate
effectively, the marketing communicator must understand the consumers field of experience.
This model points out several key factors in good communication. Senders need to know what
audiences they wish to reach and what responses they want. They must be good at encoding messages that
take into account how the target audience decodes them. They must send messages through media that reach
target audiences, and they must develop feedback channels so that they can assess the audiences response to
the message.

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WHAT ARE THE MAJOR STEPS /TYPES IN DEVELOPING EFFECTIVE MARKETING
COMMUNICATIONS?

There are eight steps to follow in developing an effective marketing communications program: (1) identify
the target audience, (2) determine the communication objectives, (3) design the message, (4) select the
communication channels, (5) establish the total communications budget, (6) decide on the communications
mix, (7) measure the communications results, and (8) manage the integrated marketing communication
process.
Step 1: Identifying the Target Audience
The first step is to identify a clear target audience: potential buyers of the companys products, current users,
deciders, or influencers; individuals, groups, particular publics, or the general public. The target audience is
a critical influence on the communicators decisions about what to say, how to say it, when to say it, where
to say it,and to whom to say it.
Further analysis helps the company assess the audiences current image of the company, its products,
and its competitors. Image is the set of beliefs, ideas, and impressions that a person holds regarding an
object. Peoples attitudes and actions toward an object such as a product or service are highly conditioned by
that objects image. In assessing image, marketers research the audiences familiarity with the product,
then they ask respondents who know the product how they feel about it.
If most respondents have unfavorable feelings toward the product, the organization needs to overcome a
negative image problem, which requires great patience because images persist long after the organization
has changed. Once people have a certain image, they perceive what is consistent with that image. It will take
highly disconfirming information to raise doubts and open their mindsbut it can be done.
Wolverine World Wide of Rockford, Michigan, discovered this when its Hush Puppies brand of
casual shoes lost its fashionable image. Then a fashion designer used Hush Puppies dyed in bright colors,
changing the products image from stodgy to avant garde. Once the new Hush Puppies were in demand,
sales skyrocketed from less than 30,000 to millions of pairs sold in just 2 years.1
Determining the Desired Response
After defining the target audience, the marketing communicator must decide what response is desired. In
most cases, the final response is purchase. But purchase is the result of a long process of consumer decision
making. The target audience may be in any of six buyer readiness stages, the stages that consumers
typically pass through on their way to making a purchase. These stages are awareness, knowledge,liking,
preference, conviction, and purchase.
The marketing communicator needs to know where the target audience is now and to what stage it
needs to be moved.The marketing communicators target market may be totally unaware of the product,
know only its name, or know little about it. The communicator must first build awareness and knowledge.
When Nissan introduced its Infiniti automobile line, it began with an extensive teaser advertising
campaign to create name familiarity. Initial ads for the Infiniti created curiosity and awareness by showing
the cars name but not the car. Later ads created knowledge by informing potential buyers of the cars high
quality and many innovative features.
Once potential buyers know about the Infiniti, Nissans marketers want to move them through
successively stronger stages of feelings toward the car. These stages include liking (feeling favourable about
the Infiniti), preference (preferring Infiniti to other car brands), and conviction (believing that Infiniti is the
best car for them).Infiniti marketers can use a combination of the promotion mix tools to create positive
feelings and conviction. Advertising extols the Infinitis advantages over competing brands. Press releases
and other public relations activities stress the cars innovative features and performance. Dealer salespeople
tell buyers about options, value for the price, and after-sale service.
Finally, some members of the target market might be convinced about the product, but not quite get
around to making the purchase. Potential Infiniti buyers may decide to wait for more information or for the
economy to improve. The communicator must lead these consumers to take the final step. Actions may
include offering special promotional prices, rebates, or premiums. Salespeople may call or write to selected
customers, inviting them to visit the dealership for a special showing.
Designing a Message
Having defined the desired audience response, the communicator turns to developing an effective message.
Ideally, the message should get attention, hold interest, arouse desire, and obtain action (a framework
known as the AIDA model). In practice, few messages take the consumer all the way from awareness to
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purchase, but the AIDA framework suggests the qualities of a good message. In putting together the
message, the marketing communicator must solve three problems: what to say (message content), how to
say it logically (message structure),and how to say it symbolically (message format).
Message Content
The communicator must identify an appeal or theme that will produce the desired response. There are three
types of appeals: rational, emotional, and moral.
Rational appeals relate to the audiences self-interest. They show that the product will produce the desired
benefits. Rational appeal messages may show a prod- ucts quality, economy, value, or performance. In its
ads, Mercedes offers cars that are engineered like no other car in the world, stressing engineering design,
performance,and safety.
Emotional appeals attempt to stir up either negative or positive emotions that can motivate purchase.
Communicators can use such positive emotional appeals as love, pride, joy, and humour. Advocates for
humorous messages claim that they attract more attention and create more liking and belief in the sponsor.
Communicators can also use negative emotional appeals such as fear, guilt, and shame, which get people to
do things they should (brush their teeth, buy new tires), or to stop doing things they shouldnt (smoke, drink
too much, eat fatty foods).
Moral appeals are directed to the audiences sense of what is right and proper. They often are used to
urge people to support such social causes as a cleaner environment and aid to the needy, or combat such
social problems as drug abuse, discrimination, sexual harassment, and spousal abuse.
Message Structure
The communicator must decide which of three ways to use to structure the message.The first is whether to
draw a conclusion or leave it to the audience. Early research showed that drawing a conclusion was usually
more effective; however, more recent research suggests that the advertiser is often better off asking
questions and letting buyers draw their own conclusions. The second structure issue is whether to present a
one-sided argumentmentioning only the products strengthsor a two-sided argumenttouting the
products strengths while also admitting its shortcomings.
Usually, a one-sided argument is more effective in sales presentationsexcept when audiences are highly
educated, negatively disposed, or likely to hear opposing claims. In these cases, two-sided messages can
enhance the advertisers credibility and make buyers more resistant to competitor attacks. The third message
structure issue is whether to present the strongest arguments first or last. Presenting them first gets strong
attention, but may lead to an anti-climactic ending.
Message Format
The marketing communicator needs a strong format for the message. In a print ad, the communicator has to
decide on the headline, copy, illustration, and colour. To attract attention, advertisers can use novelty and
contrast; eye-catching pictures and headlines; distinctive formats; message size and position; and colour,
shape,and movement. If the message will be carried over the radio, the communicator must choose words,
sounds, and voices. The sound of an announcer promoting banking services, for example, should be
different from one promoting quality furniture. If the message is to be carried on television or in person, then
all these elements plus body language have to be planned. Presenters plan their facial expressions, gestures,
dress, posture, and hair style. If the message is carried on the product or its package, the communicator has
to watch texture, scent, colour, size, and shape.
EX. Colour plays a major communication role in food preferences. When consumers sampled four
cups of coffee that had been placed next to brown, blue, red, and yellow containers (all the coffee was
identical, but the consumers did not know this), 75 percent felt that the coffee next to the brown container
tasted too strong; nearly 85 percent judged the coffee next to the red container to be the richest; nearly
everyone felt that the coffee next to the blue container was mild; and the coffee next to the yellow container
was seen as weak. Therefore, if a coffee company wants to communicate that its coffee is rich, it should
probably use a red container along with label copy boasting the coffees rich taste.
Choosing Media
The communicator now must select channels of communication. There are two broad types of
communication channelspersonal and non-personal.
Personal Communication Channels
In personal communication channels, two or more people communicate directly with each other. They can
communicate face to face, over the telephone, or even through the mail or e-mail. Personal communication
channels are effective because they allow for personal addressing and feedback.
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The company controls some personal communication channels directly; company salespeople, for example,
contact buyers in the target market. But other personal communications about the product may reach buyers
through channels not directly controlled by the company. These may be independent expertsconsumer
advocates, consumer buying guides, and othersmaking statements to target buyers.Or they may be
neighbours, friends, family members, and associates talking to target buyers. This last channel, known as
word-of-mouth influence, has considerable effect in many product areas.Personal influence carries great
weight for products that are expensive, risky,or highly visible. For example, buyers of automobiles, home
decor, and fashion often go beyond mass-media sources to seek the opinions of knowledgeable people.
Companies can take several steps to put personal communication channels to work for them. They can
devote extra effort to selling their products to wellknown people or companies, who may, in turn, influence
others to buy. They can create opinion leaderspeople whose opinions are sought by othersby supplying
certain people with the product on attractive terms. For example, companies can work through community
members such as local radio personalities, class presidents, and heads of local organizations. And they can
use influential people in their advertisements or develop advertising that has high conversation value.
Non-Personal Communication Channels
Non-personal communication channels are media that carry messages without personal contact or
feedback. They include major media, atmospheres, and events. Major media include print media
(newspapers, magazines, direct mail); broadcast media (radio, television); and display media (billboards,
signs, posters).Atmospheres are designed environments that create or reinforce the buyers leanings toward
buying a product. Thus, lawyers offices and banks are designed to communicate confidence and other
qualities that might be valued by their clients. Events are staged occurrences that communicate messages to
target audiences, such as press conferences, grand openings, shows and exhibits, public tours, and other
events arranged by public relations departments. Many Canadian companies sponsor sporting events that
draw audiences that match the firms target market.
Non-personal communication affects buyers directly. It also often affects them indirectly by causing
more personal communication. Communications first flow from television, magazines, and other mass
media to opinion leaders and then from these opinion leaders to others. Thus, opinion leaders step between
the mass media and their audiences and carry messages to people who are less exposed to media.This
suggests that mass communicators should aim their messages directly at opinion leaders, letting them carry
the message to others.
Selecting the Message Source
In either personal or non-personal communication, the messages impact on the target audience is affected
by how the audience views the communicator. Messages delivered by highly credible sources are more
persuasive. Therefore, marketers hire celebrity endorserswell-known athletes, actors, and even cartoon
charactersto deliver their messages
Collecting Feedback
After sending the message, the communicator must research its effect on the target audience. This involves
asking the target audience members whether they remember the message, how many times they saw it, what
points they recall, how they felt about the message, and their past and present attitudes toward the product
and company. The communicator also wants to measure behaviour resulting from the messagehow many
people bought a product, talked to others about it,or visited the store.Feedback on marketing
communications may suggest changes in the promotion program or in the product offer itself.
For example, when the new Boston Market restaurant chain enters new market areas, it uses
television advertising and coupons in newspaper inserts to inform area consumers about the restaurant and to
lure them in. Suppose feedback research shows that 80 percent of all consumers in an area recall seeing
Boston Market ads and are aware of what the restaurant offers. Sixty percent of those who are aware of it
have eaten at the restaurant, but only 20 percent of those who tried it were satisfied. These results suggest
that although the promotion program is creating awareness, the restaurant isnt giving consumers the
satisfaction they expect. Therefore, Boston Market needs to improve its food or service while staying with
the successful communication program. In contrast, suppose the feedback research shows that only 40
percent of area consumers are aware of the restaurant, that only 30 percent of those aware of it have tried it,
but 80 percent of those who have tried it return. In this case, Boston Market needs to strengthen its
promotion program to take advantage of the restaurants power to create customer satisfaction.


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An integrated marketing communication plan:
Integrated marketing begins with development of master marketing plan. The marketing plan is the
basis of the total integrated communication design. The plan provides for coordination of efforts in all
components of the marketing mix. The purpose of the plan is to achieve harmony in relaying messages to
customers and other publics . planning also should integrate all key promotional efforts , which in turn keeps
the company s total communication program.
Situation analysis
Marketing objectives
Marketing budget
Marketing strategy
Marketing tactics
Evaluation of perfomance
situational analysis
The first step is a situational analysis, which is the process of examining factors from the
organization internal and external environments. The analysis identifies external environmentally generated
marketing problems and the opportunities; internal company strength and weaknesses are also considered.
Marketing analysis
The second step is to define primary marketing objectives. These objectives normally spelled out in
the areas of sales, market share, competitive position and desired customer actions
Marketing budget
Based on these objectives, a marketing budget is prepared and marketing strategies are finalized
Marketing strategy:
The strategies include the ingredients of the marketing mix plus all positioning, differentiation, and
branding strategies the firm wants to use.
Marketing Tactics
From these strategies, marketing tactics emerge to guide the day-by-day steps necessary to support
marketing strategies.
Evaluation of performance
The final step in the marketing plan is the evaluation of performance . These six steps are similar to those
prescribed by management strategies attempting to integrate all company activities into one consistent
effort.when properly designed and followed they provide guidance to company leaders and marketing
experts as they try to make certain the firms total communication package is fully integrated.

EXPLAIN THE VALUE OF IMC PLAN
A major force compelling firms to seek greater integration of advertising and marketing communications is
information technology. Computers, the World Wide Web, and telecommunications have moved the world
into an information age where business and more business and most consumers have access to an abundance
of marketing communication.
1. Information Technology
2. Changes In Channel Power
3. Increase In Competition
4. Brand Parity
5. Integration of information
6. Decline In The Effectiveness Of Mass-Media Advertising

Information Technology
Technology allows instant communication among business executives, employees, and others around the
world. It has also created new opportunities for marketing communications. For example, predicting the
purchasing behaviors of consumers in the past was based on the results of test markets, attitudinal research,
and intention-to-buy surveys. Although these are excellent means of obtaining information about consumers,
they often are slow, costly, and are potentially unreliable.
Today, predicting purchase behavior is more precise due to the development of the UPC (Universal Product
Code) bar-coding system. The technology was originally used to manage inventories. UPC code combined
with other technology programs allow huge amounts of data and information about customers to be
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gathered. Advanced statistical software helps company leaders analyze these data files. Connections
between financial and business firms make it possible to collect purchasing data. Using this information, the
demographic and psychographic information about consumers can be correlated with the items they buy,
when they make purchases, and where they make purchases. Consequently, marketers can quickly determine
who is buying a companys products and identify best communication channels to reach those customers.

Changes In Channel Power
Technological developments also served as catalysts for changes in channel power. Two typical market
channels are:
Producer wholesaler retailer consumer

Producer business agent business merchant business user

With the advancement of the World Wide Web and information technology, the power has shifted to the
consumer. Currently, consumers can obtain information about goods and services from their homes or
businesses and purchase almost anything over the internet. To illustrate how technology has changed
channel power, think about an individual in the market for a new stereo. First, she goes to the internet and
searches for information. She then identifies several possible brands and narrows them down to three. Next,
she travels to a local mall and investigates the three brands. Asking questions of the sales clerks helps her
gather additional product information. Going home, she then logs onto the Web sites of the three
manufacturers to learn about warranties and company policies. Having gathered sufficient information to
make a decision, she can utilize internet sources or a catalog to finalize the purchase either via the web or by
telephone. Within 3 days, the new stereo arrives complete with a money-back guarantee if she is not
satisfied. The result is that the buyer is in charge of the entire process, not the retailer or the wholesaler.

Increase In Competition
Information technology has dramatically changed the market place. Consumers can purchase goods and
services from anywhere in the world. People want quality, but they also want a low price. The company that
delivers on both quality and price gets the business, regardless of location. In this type of market, the only
way one firm can gain sales is to take customers away from another firm. Integrating advertising and other
marketing communications becomes extremely important in such an environment. Advertising alone is not
enough to maintain sales. The situation is further complicated for manufacturers when retailers hold stronger
channel power and control the flow of merchandise to consumers. In that situation, manufacturers have to
invest in trade promotions to keep their products in various retail outlets. Encouraging retailers to promote a
manufacturer brand or prominently display it for consumer viewing requires even greater promotional
dollars. Manufacturers also must invest heavily in consumer promotions to keep end users loyal to their
companies and encourage them to purchase their brands because they know that the more they promote their
own products, the more attractive the product become to retailers.

Brand Parity
When consumers believe that most brands offer the same set of attributes, the result is called brand parity.
Form the consumers perspective, this means shoppers will purchase form a group of accepted brands rather
than one specific brand. When brand parity is present, quality is often not a major concern because
consumers believe that only minor quality differences exist. Consumers often view quality levels of products
as being nearly equal. As a result, they often base purchase decisions on other criteria such as price,
availability or a specific promotional deal. The net effect is that brand loyalty has experienced a steady
decline. Hence, the marketing team should try to create a message that expresses how the companys
products are clearly different. They must convince consumers that the product is not the same as the
competition. A quality IMC program is, in part, is designed to gain benefits associated with a strong brand
name.
Integration Of Information
Todays consumers have a variety of choices regarding where they obtain information about a brand. If
consumers are not satisfied with what they hear, they can seek additional information. They may go to the
internet and read about other brands and companies. As a result, most companies now list internet address
on advertisements. Web users can discuss products and companies with other customers in chat rooms or in
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web logs. They may also travel to retail stores and discuss various options with the sales clerk.
Others may consult independent sources of information such as consumer reports. The marketing team
should be concerned with the ways consumers integrate the information they receive. Company leaders
should make sure that every contact point projects the same message. Contact points are the places where
customers interact with or acquire additional information form a company. An effective IMC program sends
a consistent message about the nature of the company, its product and the benefits that result from making a
purchase from the organization.

Decline In The Effectiveness Of Mass-Media Advertising
The influence of mass-media advertising has dramatically changed. The rise in popularity of cable TV, DVR
recorders, and satellite dishes means consumers have a wider variety of viewing choices. Using the remote
while watching television means it is likely that, during most commercials, the viewer is surfing other
channels to see what else is on. Many television advertisements are not seen, even by those people watching
a particular program. In a recent survey conducted by Brandweek magazine, only 16 percent of viewers said
that they watch commercials during a program. To overcome this problem, it is vital to create new and
innovative communications program.
Many firms employ advertising agencies to assist in marketing efforts. Until 1970 almost all advertising
agencies focused only on the advertising aspect of the marketing plan. Now however, many advertising
agency spend substantial amounts of time assisting clients in the development of IMC programs. These
agencies also design consumer promotion materials and direct-marketing programs, along with other
marketing tactics.

EXPLAIN GLOBALLY INTEGRATED MARKETING COMMUNICATION
Integrated marketing communication is called as GIMC, a globally integrated marketing communications
program. The goal is to coordinate marketing efforts. The challenges are grater due to larger national and
cultural differences in target markets.
In the past, marketers could employ two different strategies for global companies. The first approach was
called standardization, in which the idea was to standardize the product and message across countries. The
goal of this approach was generating economies of scale in production while creating a global product using
the same promotional theme. The language would be different but the basic marketing message would be the
same.
The second approach to global marketing was adaptation. Products and marketing messages were designed
for and adapted to individual countries. Thus, the manner in which a product was marketed in France was
different than in Italy, India or Australia. The GIMC approach is easier to apply when a company relies on
the standardization method; however GIMC can and should be used with adaptation or standardization. To
reduce costs, careful coordination of marketing efforts should occur across countries. Even when a firm uses
the adaptation strategy, marketers from various countries learn from each other. A company should try to
transmit a consistent theme, even when there are differences in local messages. In terms of marketing, the
philosophy many countries use is market globally, but act locally.
Global marketing communications is a great way to send a consistent marketing message all across the
globe. It takes careful planning and a thorough execution to pull it off successfully. Global brand building
through advertising is a different matter - firstly the company and its marketing head should be able to think
and act globally, secondly the brand message must be well matched with the company's offering - in this
case high performance IT consulting. Thirdly, it takes serious commitment and budgets to build a strong
brand.
PROMOTIONS OPPORTUNITY ANALYSIS
A promotions opportunity analysis is the process marketers use to identify target audiences for a companys
goods and services and the communication strategies needed to reach these audiences. People are different
and have unique uses for various products. The same is true for businesses. These special features are
especially pronounced in global markets. Therefore communication to each group requires distinct and
somewhat customized approaches. An effective promotional analysis identifies the approach or appeal that
is best suited to each set of customers.
A promotions opportunity analysis must accomplish two objectives: (1) determine which promotional
opportunities exist for the company and (2) identify the characteristics of each target audience so that precise
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advertising and marketing communications message can reach them. The more a marketer knows about an
audience, the greater the chances a message will be heard, understood, and result in the desired outcome.
There are five steps in developing a promotions opportunity analysis as follows.
1. Conduct a communication market analysis
2. Establish communication objectives
3. Create communications budget
4. Prepare promotional strategies
5. Match tactics with strategies.

Communication market analysis
The first step of a promotions opportunity analysis is a communication market analysis. A communication
market analysis is the process of discovering the organizations strengths and weaknesses in the area of
marketing communication and combining that information with an analysis of opportunities and threats
present in the firms external environment. This process is quite similar to a managerial approach called
SWOT analysis. The primary difference is that instead of looking at environment from a company-wide or
strategic business units of view, the analysis is from a communication perspective.
A communication market analysis examines five areas:
a. Competitors
b. Opportunities
c. Target markets
d. Customers
e. Product positioning

Competitors
When examining competitors, the objective is to discover who the competition is and what they are doing in
the areas of advertising and communication. The marketing tactics that competitors use must be identified to
understand how they are attacking the market place. Consumers integrate information from a variety of
sources. It is helpful to know what potential customers see, hear, and read about the competition. The
marketing team should visit the vendors and suppliers who have dealt with the competition or who have read
the competitions statement.

Opportunities
A second component of communication market analysis is the search for opportunities. This includes
carefully watching for new marketing communication opportunities by examining all of the available data
and information about the market. One firm that has recently identified a new and unique communication
opportunity is Digital Lifestyles Group, Inc., of Austin, Texas.

Target markets
A third communication market analysis activity is examining various target markets. This analysis requires
the marketing department to recognize the needs of various consumer and business groups. Company
marketers must discover the benefits customers are seeking and determine the various ways in which the
customers can be reached. The goal is to divide the overall market into smaller market segments. Then the
company can develop marketing programs and advertising campaigns for each of these similar groups.
Customers
Another ingredient in examining a target market is conducting an in-depth analysis of customers. There are
three types of customers to study:
Current company customers
The competitions customers
Potential new customers
Creating effective advertisements and marketing communications requires knowing everything that
goes on in the minds of customers. It is helpful to ascertain how customers perceive individual
advertisements as well as what they think about the larger company. Service metrics examines a
firms Web Site from the customers perspective and, more importantly, compares the website to the
competitions. This type of analysis identifies all of a firms communication avenues. It also tells the
company how its Web Site compares to the competitions.
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Product positioning
Part of a communications analysis is examining the position a firm has relative to its competition. Product
positioning is the perception created in the consumers mind regarding the nature of the company and its
products relative to the competition. The quality of products, prices charged, methods of distribution, image,
communication tactics, and other factors create positioning and are, in turn affected by the brands position.
In examining the brands positioning, the marketing firm should determine how the brands position is
viewed by consumers, businesses and customers. It is important to make sure the position being promoted is
consistent with current views by the various constituencies and is also consistent with various elements of
the IMC program.

ESTABLISHING MARKETING COMMUNICATION OBJECTIVES
The second step of a promotions opportunity analysis is to identify objectives. Communication objectives
help account executives and advertising creatives design effective messages. A communication plan is often
oriented toward a single objective. It is possible, however, for a program to accomplish more than one goal
at a time. The process of defining and establishing communication objectives is a crucial element of a
promotional opportunities analysis. Without clearly specified objectives, the company can quickly drift off
course or lose its focus on the overall IMC program. Communication objectives are derived from marketing
objectives, which tend to be general because they relate to the entire marketing plan. They also must be
measurable. Marketing objectives address:
Sales volume
Market share
Profits
Return on investment.

ESTABLISHING A COMMUNICATIONS BUDGET
The third step of promotions opportunity analysis is preparing a communications budget. Budgets are based
on communications objectives as well as marketing objectives. Communications budgets differ from
consumer markets and business-to-business markets. A much larger percentage of the budget for B-to-B is
allocated for telephone marketing than in the consumer market. There are several factors which influence the
expenditure on promotion and sales.
The goal of the promotion: communication goals differ depending on the stage in the buying process that
is being addressed. Hierarchy of effects model suggests that prior to making a purchase a consumer goes
through stages of awareness such as knowledge, liking, preference, conviction.

Threshold effects: The early effects of advertising are minimal. The same is true for all communication
expenditures. At first, there may be little behavioral response, especially if only advertisements are used.
Over a time, a consumer who is exposed repeatedly to a companys marketing message recalls the company
and eventually is willing to make a purchase.

Carryover effects: Another factor which influences the relation between promotion and sales is a carryover
effect. Many products like washing machines and refrigerators are only purchased when needed.
Promotions for these products must be designed to generate carryover effects. This occurs when the
consumer has been exposed to the companys message for so long that, when the time comes to buy, the
individual remembers the key company.

Wear-out effects: At a certain point, an advertisement or particular promotion simply becomes old or
boring. In such cases consumer tend to ignore the advertisement or just tune it out. The challenge for
marketing communication is to keep an ad beyond the threshold effects and long enough to capture
carryover effects, but no so long that wear-out effects begin to take place.

Decay effects: when the company stops advertising, consumers begin to forget the message. In some
instances, the degree of decay is dramatic. The promotional budget must be structured to avoid the problem
of decay effects.

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Random effects: Random events affect promotions. The September 11, 2001 attacks affected a variety of
industries and individual companies. Promotional expenditures were, in some cases, cut back as the nation
recovered. It would be impossible to demonstrate the relationship between promotions and sales in such
circumstances. Therefore, as the marketing team constructs the budget, the assumptions that drive the
process should be considered.

TYPES OF BUDGET
There are many ways to prepare a communications budget.
The percentage of sales method: Companies using this form prepare communications budgets for coming
years based on 1) sales from previous year or 2) anticipated sales for the next year. A major reason for using
this type of budget is its simplicity. The approach also has problems. First, this type of budget tends to
change in the opposite direction of what may be needed. Second, it does not allocate money for special
needs or to combat competitive pressures. Therefore, many marketing efforts believe the disadvantages of
the percentage of sales method tend to outweigh its advantages.

The Meet-the-competition method: Some firms use the meet-the-competition method of budgeting. The
primary goal of this form of budgeting is to prevent the loss of market share. It is often used in highly
competitive markets where rivalries between competitors are intense. The drawback of this method is that
the marketing dollars are not spent effectively. The concept to remember is that it is not how much is spent,
but rather how well the money is allocated and how effectively the marketing campaign works at retaining
customers and market share.
The what we can afford method: This technique sets the marketing budget after all the companys other
budgets have been determined. Money is allocated based on what the company leaders feel they can afford.
The objective and Task method: To prepare this type of communications budget, management first lists all
of the objectives it intends to pursue during the year; then, they calculate the cost of accomplishing each
objective. The communications budget is the cumulative sum of the estimated costs for all objectives.
Payout planning: payout planning establishes a ratio of advertising to sales or market share. This method
normally allocates greater amounts in early years to yield payouts in later years. By allocating larger
amounts at the beginning of a new product introduction, brand awareness and brand equity are built. Then,
as the brand is accepted and sales build, a lower percentage of advertising dollars is needed to maintain a
target growth.
Quantitative models: In some instances, computer simulations may be developed to model the
relationship between advertising or promotional expenditures with sales and profits. These models are far
from perfect. They do have the advantage of accounting for the type of industry and product as the model is
created.
PREPARING PROMOTIONAL STRATEGIES
The fourth step of promotions opportunity analysis program is to prepare a general communication strategy
for the company and its products. Strategies are sweeping guidelines concerning the essence of the
companys marketing efforts. Strategies provide a long-term direction for all marketing activities. An
excellent example of a general communications strategy is found in the marketing efforts of Mountain Dew.
The primary market for Mountain Dew is teenagers and yound adults. As a result, communication efforts are
directed to that market using slogans such as Do the Dew to Been There Done That and so forth. So
communications strategies should be directly related to a firms marketing objectives. Stategies must be
achievable using the allocations available in the marketing and communications budget.
MATCHING TACTICS WITH STRATEGIES
Tactics are activities performed to support strategies. Tactics include promotional campaigns designed
around themes based on strategic objectives. Tactics do not replace strategies, nor should they distract
consumers from the consistent message or the theme the company is trying to create. At the same time, they
add excitement or interest to what the company is ordinarily doing. The company leaders must be aware of
communication opportunities present in the environment along with any threats to the companys marketing
program. They must study and understand the companys competition to the greatest degree possible. Target
markets must be defined and budgets set. Then, the marketing leaders of the company can establish
strategies and tactics to guide efforts to reach specific marketing objectives and performance targets.
UNIT-I (COMPLETED)
UNIT -II
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There are five main stages in a well-managed advertising campaign:
Stage 1: Set Advertising Objectives
An advertising objective is a specific communication task to be achieved with a specific target audience
during a specified period of time. Advertising objectives fall into three main categories:
(a) To inform - e.g. tell customers about a new product
(b) To persuade - e.g. encourage customers to switch to a different brand
(c) To remind - e.g. remind buyers where to find a product

Stage 2: Set the Advertising Budget
Marketers should remember that the role of advertising is to create demand for a product. The amount spent
on advertising should be relevant to the potential sales impact of the campaign. This, in turn will reflect the
characteristics of the product being advertised.
Factors considered when budget-setting:
Stage of product life cycle
Market share and consumer base
Competition and clutter
Advertising frequency
Product substitutability
For example, new products tend to need a larger advertising budget to help build awareness and to
encourage consumers to trial the product. A product that is highly differentiated may also need more
advertising to help set it apart from the competition - emphasizing the points of difference.
Setting the advertising budget is not easy - how can a business predict the right amount to spend. Which
parts of the advertising campaign will work best and which will have relatively little effect? Often
businesses use "rules-of-thumb" (e.g. advertising/sales ratio) as a guide to set the budget.

Stage 3: Determine the key Advertising Messages
Spending a lot on advertising does not guarantee success (witness the infamous John Cleese campaign for
Sainsbury). Research suggests that the clarity of the advertising message is often more important than the
amount spent.
Factors considered when choosing the advertising message:
Message generation
Message evaluation and selection
Message execution
Social responsibility review

The advertising message must be carefully targeted to impact the target customer audience. A successful
advertising message should have the following characteristics:
(a) Meaningful - customers should find the message relevant
(b) Distinctive - capture the customer's attention
(c) Believable - a difficult task, since research suggests most consumers doubt the truth of advertising in
general

Stage 4: Decide which Advertising Media to Use
There are a variety of advertising media from which to choose. A campaign may use one or more of the
media alternatives. The key factors in choosing the right media include:
(a) Reach - what proportion of the target customers will be exposed to the advertising?
(b) Frequency - how many times will the target customer be exposed to the advertising message?
(c) Media Impact - where, if the target customer sees the message - will it have most impact?
(d) Choosing Media Type; Factors to consider:
Media habits of target consumers
Nature of the product
Type of message
Cost
Media vehicles
Specific media within each general media type
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(e) Determining media timing: Must decide how to schedule the advertising over the course of a year.
Follow seasonal pattern
Oppose seasonal pattern
Same coverage all year
Choose the pattern of the ads
Continuity
Pulsing
(f) Deciding on geographical media allocation
For example does an advert promoting holidays for elderly people have more impact on Television (if so,
when and which channels) or in a national newspaper or perhaps a magazine focused on this segment of the
population?

Another key decision in relation to advertising media relates to the timing of the campaign. Some products
are particularly suited to seasonal campaigns on television (e.g. Christmas hampers) whereas for other
products, a regular advertising campaign throughout the year in media such as newspapers and specialist
magazines (e.g. cottage holidays in the Lake District) is more appropriate.

Stage 5: Evaluate the results of the Advertising Campaign
The evaluation of an advertising campaign should focus on two key areas:
(1) The Communication Effects - is the intended message being communicated effectively and to the
intended audience?
(2) The Sales Effects - has the campaign generated the intended sales growth. This second area is much
more difficult to measure.
Types of advertising:
Several categories of organizations are large users of advertising, most important among them being the
manufacturing, trading and service firms, non-profit institutions and government agencies. It is conceptually
more interesting and analytically more important to classify advertising.
By target Audience:
One way to classify advertising is according to the group it targets. Whether its in print, on television, or on
billboards, every advertisement is aimed at a specific group of people, known as target audience.
Advertisements are generally addressed to one of the two broad audience categories: consumers or
businesses.
Consumer advertising:
Much of the advertising around us is aimed at consumers, the individuals and families who buy goods and
services for personal or family use known as consumer advertising. For example, pepsi and coke persuade
consumers to consume their bottled drinks.
Business advertising:
In contrast to the messages aimed at people who buy goods for household use, business advertising directs
messages toward people and/or organizations that buy or use products in businesses. This broad category can
further be classified into four distinct sub-categories-
a) Industrial advertising It targets people who buy or use the materials and services needed to conduct
business or to manufacture other products. For example Epson advertises business houses to buy their
printer cum fax machine that would facilitate their business communication.
b) Trade advertising-targets intermediaries such as wholesalers and retailers that buy goods for resale to
consumers.
c) Professional advertising-is directed toward licensed professional practitioners such as lawyers,
accountants, doctors, and engineers. This category of advertising may be used to persuade professionals to
buy a particular product useful in their work or to recommend that product to their patients or clients. For
example Tally advertises its software to all accountants and businessmen to use its multi utility software in
preparation and maintenance of accounts.
d) Agricultural advertising- is used to sell products such as tractors and insecticides.
By Geographic area
A second way to classify advertising is its geographical coverage
a) International advertising-when an organisation crosses national borders to advertise in more than one
country. For example Pepsi-Cola uses international advertising in dozens of countries.
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b) National advertising- when an organisation advertises in more than one region of a single country.
For example Bajaj, Hero Honda are all considered national advertisers since they use television, national
magazine, and other media to reach large numbers of people in multiple markets across the country.
c) Regional advertising- advertising in a specific region without covering the entire country. For
example Aircel uses regional advertising when it targets people of Tamilnadu to use its cellphone.
d) Local advertising-is a much narrower, concentrating on a more confined area such as a city. For
example AVR and ANS uses cable network to influence people to shop artistic designs in gold jewelry.
By Media
A third way to classify advertising is according to the medium or media used. Popular forms of media
advertising include newspaper, magazine, radio, television, outdoor (posters, billboards), and transit (on or
inside buses). Because of its ability to reach huge audiences across large geographic regions, television and
radio are the most powerful advertising media and do often national advertisers use the primary medium.
Many organisations also advertise through direct mail or in the yellow pages and other directories; the list of
media options grows longer as newer medias such as FM radio, Internet become commonplace.
By purpose
A fourth way to classify advertising is by purpose. Each advertiser has its own goals, but the purpose behind
each message can be classified according to four dimensions:
Product versus institutional advertising
Commercial versus non-commercial advertising
Primary demand versus selective demand advertising
Direct action versus indirect action advertising
a) Product versus institutional advertising
Advertising normally conforms to one of two basic types: product oriented or institutional. A product-
orientated advertising focuses, as the term suggests, on the product or service being offered, whether for
profit or not. Its prime task is to support the product in achieving its marketing goals.
Product-orientated advertising can itself take one of three alternative forms, pioneering, competitive, or
reminder and reinforcement advertising. (see Figure 11.3 Type of advertising)
Pioneering advertising
Pioneering advertising is used in the early stages of the life-cycle when it is necessary to explain just what
the product will do and the benefits it can offer. The more innovative, technically complex and expensive the
product is, the more essential this explanation becomes. Depending on the product's newness, the prime
emphasis might well be on stimulating basic generic demand rather than attempting to beat competition.
Competitive advertising
Competitive advertising is concerned with emphasizing the special features of the product or brand as a
means of outselling the competition. Usually the seller seeks to communicate the unique benefits, real or
imaginary, that distinguishes the product and gives it its competitive edge. Given that most markets are
mature and often crowded, this type of advertising is very Common and very important.
Comparitive advertising
A form of competitive advertising that has grown in significance in recent years is comparative advertising.
This means making a direct comparison between one product and another, showing the advertisers product
in a much more favorable light, of course, alternatively, the comparison may be more subtle, referring to
other leading brands, and leaving it up to the target audience to decide which rival product is intended.
Initially, it was thought unwise to use a direct comparison approach as it gave a free mention to competitors
and was likely to bring about a knocking copy reaction. However, advertisers have now realized that in a
competitive world even if they do make a comparison with the market leader, which already has high
awareness levels, the effect need not be negative.
Through careful selection of the benefits and judgment and criteria to be emphasized, a comparative
advertisement might encourage a perception of relative superiority.
Reminder and reinforcement advertising
Reminder and reinforcement advertising tends to operate after purchase. It reminds customers that the
product still exists and that it has certain positive properties and benefits. This increases the chances of
repurchase and sometimes might even persuade consumers to buy larger quantities. The main emphasis is
not on creating new knowledge or behaviour but on reinforcing previous purchasing behaviour, and
reassuring consumers that they made the right choice in the first place.
Institutional advertising
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In contrast, institutional advertising is not product specific. It aims to build a sound reputation and image for
the whole organization to achieve a wide range of objectives with different target audiences. These could
include the community, financial stakeholders, government and customers to name but a few.
Commercial versus non-commercial advertising
Much of the advertising around us is commercial advertising, placed by a business that expects to make a
profit. In contrast, non-profit and political organisations use non-commercial advertising to promote causes
or candidates rather than profit-making products.
Primary demand versus selective demand advertising
The purpose of primary demand advertising is to stimulate demand for a particular product category, not for
any one brand. Associations that represent many manufacturers or service firms generally place this type of
advertising. For example Tourism Development Corporation of India encourages people to visit India. Once
primary demand advertising has paved the way, individual promoters/ producers to build demand for their
own brands use selective demand advertising. For example Taj group of Hotels persuades people to board in
their suites while visiting India.
Direct action versus indirect action advertising
When advertising is geared toward getting the audience to respond immediately, its called direct-action
advertising. Messages that include a toll-free number, a coupon, or a limited-time offer are forms of direct-
action advertising. The advertiser can quickly see whether the advertisement is working by counting the
responses. On the other hand, when advertising is used simply to build the awareness of a product, boost
products image, explain product benefits, or show where the product may be purchased, its indirect action
advertising.

EXPLAIN ADVERTISING AND IMC PLAN.
A. IMC: The Concept and the Process
1. IMC is both a concept and process. Integration of the elements of marketing mix.
2. The evolution of the IMC concept - integrated marketing communications is the process of building and
reinforcing mutually profitable relationships with employees, customers, other stakeholders, and the general
public by developing and coordinating a strategic communications program that enables them to make
constructive contact with the company/brand through a variety of media.
3. Companies had to change their perspectives: Inside-out view of IMC, Outside-in view of IMC
4. How the customer sees marketing communications
5. The four Sources of Brand Messages: Planned, product, service, and unplanned messages
B.The IMC Approach to Marketing and Advertising Planning -
1. IMC is a new approach: mixes marketing and communications planning together, rather than separating
them.
2. Begins with the customer and works back to the brand.
3. Computer technology can determine customer behavior for use in IMC programs.
4. The ever-expanding database of customer behavior becomes the basis for planning all future marketing
and communications activities.
Wang and Schultz developed a seven-step IMC planning model using a database as follows:
a. Segment the customers
b. Develop brand connection
c. Set marketing objectives
d. Set brand behavior objectives
e. Develop communication objectives and strategies to make contact with customer
f. Market communication/contact tools selected to further encourage the desired behavior
g. Market communication/contact tactics to be used to make contact and influence the consumers
behavior
The Advertising Plan - In IMC planning, the advertising plan is an integral part of the overall
procedure.
Reviewing the marketing Plan - first section of advertising plan is a situation analysis that briefly restates the
companys current situation, reviews the target market segments, itemizes the long-and short-term marketing
objectives, and cites decisions regarding market positioning and the marketing mix.
Setting Advertising Objectives
1. Understand what advertising can do
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2. The advertising pyramid: A guide to setting objectives - is a model of the progression of effects
advertising has on mass audiences especially for new products.
a. Awareness
b. Comprehension
c. Conviction
d. Desire
e. Action
The old model versus the new
a. The advertising pyramid represents the earn-feel-do model of advertising effects (attitude ->
behavior). The advertising pyramid also reflects the traditional mass marketing monologue. The advertiser
talks, and the customer listens.
b. The IMC model is based on the fact that many marketers have database of information on customers.
When marketers can have a dialog and establish a relationship, the model is no longer a pyramid but a circle.
c. By starting with the customer and then integrating all aspects of their marketing communications,
companies hope to accelerate the communications process, make it more efficient, and achieve lasting
loyalty from good prospects, not just prospects.
C. Advertising Strategy and the Creative Mix - Advertising strategy blends elements of the creative
mix.
The target audience: Everyone who should know
The target audience - the specific people the advertising will address, is typically larger than the target
market
Advertisers need to know who the end user is, who makes the purchase, and who influences the purchasing
decision
1. The product concept: Presenting the product
2. The communication media: The message delivery system
3. The advertising message: What the advertising communicates
EXPLAIN ADVERTISING AGENCY AND ITS STRUCTURE.
Definition of advertising agencies:
According to American Advertising Agency Association (A.A.A.A.), an Advertising Agency is:
(i) an independent business organization,
(ii) Composed of creative and business people,
(iii) Who develop, prepare and place Advertising on Advertising media,
(iv) For sellers seeking to find customers for their goods and services.
FUNCTIONS OF ADVERTISING AGENCIES
1) Selection of clients - The primary function of an Advertising Agency is to contact & Select clients who
are desirous of adopting their products, services or anything, which they want to sell. The Advertising
Agency generally prefer to maintain accounts of those clients who have sound values, able management,
good financial muscle, and manageable size and nature of business.

2)Media selection - another basic function of an Advertising Agency is making media selection. In making
media selection, agencies often keep in mind the cost, circulation, population that it serves, audiences, nature
of the product, types of customers and above all the needs of the clients.

3)Advertising Planning - another major function of Advertising Agency is the Advertising planning for its
clients. For this purpose, the advertising agency requires a detailed knowledge of the firms products, its
history, market conditions, channel of distribution, knowledge of competitors products and their advertising
techniques, field to be covered etc.,

4)Creative function - the creative function starts when the planning function ends. It includes preparation of
an Advertising copy, layout, illustration, photographs, advertising message, etc., these functions are carried
out by the specialized staff of Advertising agency.

5)Research function - the Advertising agency makes a thorough investigation about the nature of the
product, type of the market and consumers, competitors product and Advertising strategy. This may help
the creative personnel to develop appropriate Advertising campaign.
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6)Marketing function - Advertising agency often involves itself in marketing function such as selecting
target consumers, designing products and packages, developing channel of distribution strategy, determining
prices and rate of discount etc., It gives useful advice to its clients with regard to the nature and trend of the
market conditions.

7)Evaluation - Advertising Agency does not end its job with creating and launching advertisement
campaigns. It goes further in making exhaustive evaluation and effectiveness of the campaign and makes
necessary modifications for future campaigns.

8)Co-ordination function - the last but not the least important function of the Advertising Agency is to
establish effective co-ordination with clients sales force & determination network to ensure the long running
success of the advertisement campaign.
Criteria for selection of an advertising agency:
The following factors should be kept in mind while selecting an Advertising Agency
1.Suitability - The agency should be suitable enough to satisfy the needs and requirements of the advertiser.
It should be able to create convincing, attraction effective and results oriented messages.
2.Agency Infrastructure - The agency should have a adequate and established infrastructure. It should have
qualified staffs to carry out all the tasks of developing, creating and placing Advertisement. It must be
capable of doing research work in different fields and also utilize the results effectively.
3.Track record - The Agency must have a proven performance record and must command a good image in
the public and good reputation in the field.
4.Management - The management of Advertising Agency should be professional, efficient, and competent to
handle the work promptly and efficiently. It should be well equipped with a team of experts in different
fields such as copy-writing, research, art, sales promotion, merchandising, accounting etc.,
5.Agency - Client relationship - the relationship should be standardized, codified and vigorously adhered to.
6.Rates - The rates charges by the Advertising Agency should be quite reasonable so as to suit the pockets of
the clients.
ROLE OF ADVERTISING AGENCIES
The marketing and advertising functions of an Advertising Agencies warrants a keen understanding of the
complete marketing and merchandising problems of the advertiser as well as an intermediate knowledge of
the markets, Media and consumer psychology. The role of advertising agencies benefits both its clients and
media owners -
Benefits to clients:
1.It replaces advertising department
An advertising agency practically eliminates the need for an independent advertising department, which is
costly to start, maintain & operate. Advertising Agency virtually takes care of all the promotional activities
of a firm leaving the in house advertising manager to concentrate on other more important and pressing
problems.
2.It provides expert view-point:
Advertising Agency houses a-team of experts with independent research mind and orientation; it puts the
company issues to the acid test of cold facts. Moreover as an outside organization it has no bias towards a
particular organisation. It identifies and analyses the client problems dispassionately with foolproof testing.
3.It brings in economy and excellence.
Advertising agency is capable of doing the advertising job more economically and with excellence as it is a
professional organisation. It has a pool of experts and creative people for various specialised works such as
creating copy, designing layout, production of commercial for radio & T.V. all these minute and tedious jobs
are handled with more ease because agencies normally have lot of research and knowledge already done in
various spheres of marketing environment.
4.It shares its rich experience.
An agency has a rich background in the areas of advertising. By handling thousands of ticklish problems for
different customers under different conditions, agencies gain lot of experience and have ready and effective
solutions for unique problems.
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Benefits to the media owners
1.It assures risk-free business
As an intermediary between the client and media owners, the Advertising Agency buys space & time for the
large number of clients. Apart from procuring contracts for the media owners. Advertising agency perform
the job of the client investigation as to their credit standings and ratings. This reduces lot of botheration and
investment for the media owners.
2.It performs the sales job
Consumer solicitations, client hunting, location, maintenance and expansion are no more a problem of media.
All this is being done by the agency in a more economical and effective way. It saves lot of time, talent and
treasure for the media owners as all it has to do is to approach Advertising Agency who will be maintaining
up-to-date accounts of clients and make a wholesale deal of buying space and time in the media.
3.It undertakes the advertising scheduling.
The most critical aspect of advertising is its timing and scheduling. Advertising Agency shoulders this
responsibility with ease and interest. For example, Advertisement of white goods is usually scheduled
during diwali & New Year days since many people will be on the look out for newer products and better
deals.
4.It reduces time and effort
Normally Advertising Agency provides the media owners with the advertising palates or the mats are given
for final printing straight. Such direct presentation of blocks and materials naturally reduces time and costs.
The crucial tasks of copy creation, layout designing are all done by the agency for the media on behalf of the
clients. Practically, the technical job is resumed by the agency where media is only to print or relay.
TYPES OF ADVERTISING AGENCY
Advertising Agency can be classified either by their position in or out of the organisation and by their
quantum of services they render.
CLASSIFICATION BY THEIR POSITION / RELATION WITH THE ORGANISATION
One can think of two types of Advertising agency, one an in-house Advertising Agency which is owned and
operated by the company itself, it is a part of advertisers organisation another is an independent agency -
separate form advertisers, they operate autonomously.
INDEPENDENT AGENCY
Advertisers hire Independent Agency for variety of reasons.
Not every organisation can afford to hire all the specialty staff it needs for dealing which the technical
aspects of creating, producing and placing advertisement.
Often Independent Agency are cost effective way to gain access to a group of trained professionals, they
offer expertise in every aspect of advertising from advertising research & planning to evaluation.
Since Independent Agency are continually exposed to a variety of products and advertising problems.
They are often more objective about an advertisers products than In house agencies.
INHOUSE AGENCIES
Advertiser prefers in house agencies due to the following factors
They prefer to have absolute control, responsiveness and cost-control on their in-house department.
In-house agencies focuses only on advertisers needs and goals, so its staff develops a more thorough
understanding of companys products and the dynamics of industry.
Since the in-house agencies is physically close to the rest of the organisation. Its staff can more quickly
and easily co-ordinate efforts with other departments.

CLASSIFICATION BY THE QUANTUM OF SERVICES
Advertising Agency varies widely in size from a single-person shop or a partnership of copywriter and art
director to a globe-spanning agency with a staff of thousands. In addition to size, agencies vary according to
their level of service or their specialty. Depending on their needs, advertisers may hire full service, limited
service, or specialised agencies.
1.Full Service Agencies.
A Full service agency is capable of providing all the service necessary to develop, create and execute
advertising for its clients. They even handle planning and programming for movies and T.V. shows
sponsored by their clients. A recent trend among full service agencies is to integrated a wide variety of
common specialties, including public relations, sales promotion and others. The agency uses an integrated
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marketing communications approach to create, place and co-ordinate the advertising communications so that
all messages are compatible.
2.Limited Service Agencies.
A Limited Service Agencies concentrates on selected advertising services. Limited service agency may
restrict its function and specializes either in
Developing innovative advertising concepts and messages or
In media buying service - planning, buying and placing space and time in the medias.
This lets an advertiser buy the services it needs from specialized agencies and mix and match the services of
several agencies.
3.Specialized Agencies.
Some advertisers sell to smaller, more specialized markets, so they hire special agencies that concentrate on
the audiences they want to reach. Specialized Agencies know their markets needs and jargon, so they can
create appropriate messages and select the right media for their clients. These agencies generally perform all
the functions of all full service agencies, but only in their specialized field/area.
METHODS OF REMUNARATING AN ADVERTISING AGENCY
There are basically four methods of remunerating an advertising agency, viz
1.COMMISSION
This is the oldest and most common method of remunerating an advertising agency. Under this method the
advertising agency has a fixed commissions by the media owners on the advertising bill for the advertising
space bought by the respective advertising agency. Though the rate of commission varies from media to
media and from country to country but the rate of 15% is almost universal. For Example, an Advertising
Agency places a full-page advertisement in a magazine at an agreed charge of Rs. 50,000/-. The magazine
will bill the agency for Rs. 42,500/- (Rs 50000 less 15%). The Advertising Agency will bill the advertiser of
Rs. 50,000. Thus the differences of Rs. 7,500/- will be treated as the remuneration of the Advertising
Agency.
2.FEES
Although many variations exist, two types of fee arrangements are common: a fee-commission combination
and a cost plus system. When commissions from media placements dont bring in enough revenue to
profitably service an advertisers account, the agency will often supplied commission revenue with fee
revenue. This involves charging a separate fee for extras services such as developing advertising strategy,
public relations etc. Under the cost plus system certain fixed percentage on cost may be charged from the
client as fee to be paid to the agency. This system is usually used in radio & T.V advertising.
3.MARKUPS
As they prepare an advertisement agencies often buy services from outside suppliers such as photographers
and video production houses. These suppliers dont normally offer an agency commissions, instead agency
adds a mark-up, an additional percentage to the suppliers bill when its presented to the client.
4.SPECULATIVE:Under this method, the Advertising Agency speculates the future trends of the business of
the client and plans to charge accordingly. During the time of low sales the advertising agency charges very
less or may not charge at all. Once the client turns the corner and is in sunshine, it will recover even what is
last during the dark-phase.
EXPLAIN ADVERTISING DESIGN
Once creative strategy, appeals, and execution styles have been decided, it is time to create the actual
advertisement.
The three basic components of a Print ad are the headline, body copy, and visual or illustrations. The
headline and body copy portions of the advertisement are the responsibility of the copywriters, while artists,
often working under the direction of an art director-are responsible for the visual presentation of the ad.
Artists also work with copywriters to develop a layout. The layout involves the arrangement of the various
components of the ad, such as headlines, subheads, body copy, and taglines. The tagline is a memorable
saying or slogan that conveys a selling message.
Television copy consists of, two elements- the audio and the visual. The video (visual elements) is what
the viewer sees on the television screen. The visual generally dominates the commercial so it must attract the
viewers attention and communicate a key idea, message, and/or image. The audio includes such elements as
voices, music, and sound effects. Broadcast commercials are demanding to make and they must be credible
and relevant. Research shows that the following techniques work best: the opening should be short,
compelling attention getter, demonstrations should be interesting and believable; the content should
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be ethical, in good taste, and entertaining; and the general structure of the commercial and copy
should be simple and easy to follow.
Radio copy presents a particular challenge to advertisers and their agencies because it lacks the visual
aspects of both print and television. Successful radio spots usually enable listeners to visualize the product
or something related to it. For this reason, radio advertising is often referred to as theater of the mind.
One of the most challenging aspects of writing for radio is making the script fit the time slot. The copywriter
should read the script out loud for timing. With electronic compression, recorded radio advertisements can
now include 10 to 30 percent more copy than text read live.
To appear professional and to be easy to produce, copy must adhere to the appropriate industry format. All
copy begins with the name of the advertisers in the upper left-hand corner. The size of the print ad or length
of the broadcast script followed by identification of the medium to be used appears on the second line. The
name given to the advertisement appears on the third line. Often a series of advertisements are created for a
specific advertising campaign. In this case, all the ads created for the campaign may have one name, which
unifies the series.
In Print advertising, the key format elements are the headlines, the visuals, subheads, body copy,
slogans, seals, logotypes (logos), and signature.
Copywriters can correlate the headline, visual, and subhead to the attention step of the creative pyramid. The
interest step typically corresponds to the sub-headline and the first paragraph of body copy. Body copy
handles credibility and desire, and the action step takes place with to logo, slogan, and signature block.
The Headline
Effective headlines attract attention, engage the audience, explain the visual, lead the audience into the body
of the ad, and present the selling message. The headline is the most important thing as advertiser says to the
prospect. It explains or gives greater meaning to the visual and then immediately dictates the advertisers
position in that persons mind, whether or not the prospect choose to read on.
Ideally, headlines present the complete selling idea. Working off the visual, the headline creates the mood
and tells the reader to take action (through implication) and triggers a recognition response, which reinforces
brand recognition and brand preference. Also, the headline should present product news. Consumers look
for new products, new uses for old products, or improvements on old products. If they havent been
overused in a category,
Power words that imply newness can increase readership and should be employed whenever honestly
applicable. Examples include free, now, amazing, suddenly, announcing, introducing, its here, improved, at
last, revolutionary, just arrived, and important development.
Subheads
The subheads, an additional smaller headline, may appear above the headline or below it. A subhead above
the headline, called a kicker (or over line) is often underlined. Subheads may also appear in body copy.
Subheads are usually set smaller than the headline but larger than the body copy or text. Subheads generally
appear in boldface (heavier) type or a different color. Like a headline, the subhead transmits key sales points
fast. But it usually carries less important information than the headline. Subheads are important for two
reasons: most individuals read only the headline and subheads, and subheads usually support the
interest step best. Subheads are longer and more like sentences. They serve as stepping-stones from the
headline to the body copy, telegraphing whats to come.
Body Copy
The advertiser tells the complete sales story in the body copy or text. The body copy comprises the interest,
credibility, desire, and often even the action steps. It is a logical continuation of the headline and subheads,
set in smaller type. Body copy covers the features, benefits, and utility of the product or service.
The body copy is typically read by only one out of ten readers, so the writer must speak to the readers self
interest, explaining how the product or service satisfies the customers need. The best ads focus on one big
idea or one clear benefit.
Copywriters often read their copy aloud to hear how it sounds, even if its intended for print media. The ear
is a powerful copywriting tool.
Slogans
Many slogans (also called theme lines or taglines) begin as successful headlines. Through continuous use,
they become standard statements, not just in advertising but also for salespeople and company employees.
Slogans have two basic purposes: to provide continuity to a series of ads in a campaign and to reduce an
advertising message strategy to a brief, repeatable, and memorable positioning statement. DeBeers ads, for
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example, still use the famous slogan Diamonds are forever.
Seals, Logos, and Signatures
A seal is awarded only when a product meets standards established by a particular organization. Since these
organizations are recognized authorities, their seals provide an independent, valued endorsement for the
advertisers product.
Logotypes and signatures cut (sign cuts) are special designs of the advertisers company or product name.
They appear in all company ads and, like trademarks, give the product individuality and provide quick
recognition at that point of purchase.
Stages of Advertising Design Process
The design process serves as both a creative and an approval process. In the creative phase, the designer uses
thumbnails, roughs, dummies, and comprehensives-in other words, non-final art to establish the ads look
and feel. The final artwork with the actual type in placed along with all the visuals; the printer will need to
reproduce the ad. The approval process takes place throughout the entire design process.
(i) Thumbnail Sketches the thumbnail sketch, or thumbnail, is a small, rough, rapidly produced
drawing the artist uses to visualize layout approaches without wasting time on details. Thumbnails are very
basic. Blocks of straight or squiggly lines indicate text placement, and boxes show placement of visuals. The
best sketches are then developed further.
(ii) Rough Layout in a rough, the artist draws to the actual size of the ad. Headlines and subheads
suggest the final type style, illustrations and photographs are sketched in, and body copy is simulated with
lines. The agency may present rough to clients, particularly cost-conscious ones.
(iii) Comprehensive the comprehensive layout, or comp, is a highly refined facsimile of the finished
ad. A comp is generally quite elaborate, with elaborate, with coloured photos, press-on-learning, Photostats
of sub visuals, and a glossy spray coat. Today, a copy for the comp is typeset on computer and positioned
with the visuals, and the ad is printed as a full-colour proof. At this stage, all visuals should be final.
(iv) Art work-this is the final stage of layout. Here care is taken to look into each minute detail. The
copy is properly composed or lettered. Proper photographs, paintings, sketches, or graphics are used. Other
elements like borders etc are properly places. Colouring is done. Finishing artists give the final touches. This
stage is now ready to be printed. All these various stages of preparing the layout are beneficial in a many
ways. First these stages save time, money and efforts. If you prepare a final layout without taking the
approval and it gets rejected, then all the material used, efforts and time spend are wasted. Also working on
only one idea curtails the various other possible options.
A layout starts with a blank piece of paper. What the layout artist does is to place the copy, visuals, and
other elements on it. This placing of elements is not just mere decoration. What is required is a good, clear
vision and interpretation of the selling concept of the story. A good layout allows all its elements-visuals,
headlines, subheadings, body copy, charts, maps, logo, borders, and other elements-to work together to do
the job of telling the product story.
A good layout takes into consideration the principles of balance, proportion, unity, contrast, harmony,
rhythm, and direction. And finally a good layout must be attractive, must create an appropriated
mood or feeling, must have individually to stand out from the clutter of advertisements.
(v) Dummy a dummy presents the handheld look and feel of brochures, multipage materials, or point-
of-purchase displays. The artist assembles the dummy by hand, using color markers and computer proofs,
mounting them on sturdy paper, and then cutting and folding them to size. A dummy for a brochure, for
example, is put together, page by page, to look exactly like the finished product.
(vi) Mechanical (paste-up) the type and visuals must be placed into their exact position for
reproduction by printer. Today, most designer does this work on computer, completely bypassing the need
for a mechanical. Some agencies, however, still make traditional mechanicals where black type and line art
are pasted in place on a piece of white art board- called a paste-up- with overlay sheets indicating the hue
and positioning of colour. Printers refer to the mechanical or paste-up as camera-ready art because they
photograph it using a large production camera before starting the reproduction process creating colour keys,
prints, and films of the finished ad. At any time during the design process-until the printing press lays ink on
paper- changes can be made on the art. However, the expense may grow tenfold with each step from roughs
to mechanicals to printing.
(vii) Approval the work of copywriter and art director is always subject to approval. The larger the
agency and the larger the client, the more formidable this process becomes. The agencys creative director
*first approves a new ad concept. Then the account management team reviews it. Next, the clients product
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managers and marketing staff review it, often changing a work or two or sometimes rejecting the whole
approach. Both the agencys and clients legal departments scrutinize the copy and art for potential
problems. Finally, the companys top executives review the final concept and text.
The biggest challenge in approval is keeping approvers from corrupting the style of the ad. The creative
team works hard to achieve a cohesive style. Then a group of non-writers and non-artists have the
opportunity to change it all. Maintaining artistic purity is extremely difficult and requires patience,
flexibility, maturity, and the ability to articulate an important point of view.
Design is art term meaning the arrangement of elements that make up a work of art. Painters call it
composition. In film it is called editing. It is the sense of visual elements working together to influence the
viewers. It may be the visual images working one after another on the pages of an annual report. In may be
the sequence of images hitting the viewer in fast cut scenes in a television spot. It may be the sequence of
elements arranged in important and dominant style on a single page of making an ad photo, type, and logo.
Layout & Design
Once headlines and body copy have been written, copywriters prepare rough sketches to convey their
concept to the art directors. These sketches rough out the desired placement of headlines, subheads, and
body copy, the company logo, and visuals. Basic advertising layouts include these types: Copy Heavy (ad
space dominated by text), Frame (graphics or other image frame the copy), Grid (space divided by squares
of equal size), Mondrian (space divided into boxes or sections, not necessarily of equal size), Picture
Window (space largely occupied by art- a photo, drawing, or other image), and Type Specimen (space
dominated by the headline which substitutes for art). Subheads are often used to break up long copy.
Italicized copy and reverses (white print on black) should be used sparingly.
Typography
Typography is the art of selecting and setting type. Because almost every advertisement has some reading
matter, type has tremendous importance. Typefaces affect an advertisements appearance, design, and
readability. Art directors rely on stark, eye -catching typefaces to help break through the clutter of
competing advertisements.
Type Families
All typefaces (or type fonts) come in families, just as human faces do. Many of them have proud family
names, usually inherited from the original designer of the typeface, such as Bodoni, Gothic, Goudy. Certain
families offer all kinds of variations. To present his clients product well, creative executives use various
typefaces. Most traditional types have small cross strokes, called Serifs that appear on the arms of certain
letters. Some of the more modern type designs do not have these tiny extensions on the end of letters. Such
typefaces are called Sans Serif. Each family offers capital letters and small letters referred to by
typographers as uppercase and lowercase and may usually be italicized.
Typefaces
Families of type fall into one of several faces . These include Roman (Bookman, New Century,
Schoolbook, and Times), Sans Serif (Franklin, Gothic, Futura 2, and Helvetica), Square serif, or Egyptian
(Aachen Bold), Script (Calligrapher and Nuptial), and Pi faces (Wood type Ornaments and Zapf Dingbats).
Typographic noise is said to occur when type families of the same face are mixed in an advertisement, Sans
Serif types are best used for headlines and serifs for body copy as the serif enhances readability. The serif
makes reading easier because it cuts down the reflection of light from around the letter into the readers eye
(halation); it links the letters in a word and provides a horizontal guideline; and it helps distinguish one letter
from another. Because of their superior readability, serif types are also preferred for copy that will be faxed
as individual letters lose clarity in faxing. Most of the type one sees in a textbook, novels, newspaper
stories, and a magazine article is Roman type.
Points
Type is measured in points. There are 72 points to 1 inch vertically. Most families of type offer sizes from
tiny 6 point to giant 72 point and larger. When fairly long text is being set in type, 10-point, 12 point, or 14-
point size makes for good reading. Beyond 14 point are the display or headline sizes. The ad layout included
the amount of actual length and width of the advertisement itself.
Pica measurements
In typography the unit of area measurement is called a pica. There are 12 points in a pica, 6 picas to an
inch. A copy block might be termed 16 picas wide by 36 picas deep.
TYPES OF DESIGNS
Creative Visuals Role in Advertising
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Visual recall is becoming increasingly important, and corporate symbols and advertising will need to be
stronger and eye-catching to capture consumer attention. Nonverbal communication will not only become a
means for drawing attention to a verbal message, but it will also become the message itself in many
instances. The use of imagery, visual associations, drawings and paintings, models, visual memory devices,
product and corporate symbols, are pervasive in advertising.
Advertising visual and its graphical components has long been the target of studies since marketers began to
adopt full -scale marketing activities in the late nineteenth century. The important theme was how the visual
appeal could be translated into an effective selling message.
The role of advertising visuals includes obtaining attention, creating impact, and stimulating interest
from an indifferent audience through conveying a main selling point of products or brands.
Advertising visuals perform two main functions - literal and symbolic. Literal visuals provide factual
information on products or services, and symbolic visuals perform an indirect role to connect the images of
products or services with the meanings that are appropriately assigned to them.
Advertising is part of the changing social, economic, and cultural environment, and its visuals might have
been created in a way that could reflect those changes that people would want to adjust themselves to.
Another way of linking advertising and its visuals to society and culture is, the cultural approach to
advertising. Cultural historians argue that advertising is an important window through which different
aspects of society and culture can be explained.
But also, the advertising itself can be explained to determine how it might have been shaped by society. This
approach recognizes advertising not only as a window to culture but also a mirror that reflects the culture, or
the cultures.
Your ad becomes an extended image of your business. It conveys your style and hence attracts customers
who appreciate that style. It should reflect the product you have to offer - sophisticated, whimsical, classic,
etc. Everything you do should reflect the feel of the product. Develop an ad that's a stopper! One that gets
a reader's attention, and causes a reaction.
Some guidelines for ad design:
Make sure the ad reflects your product and image.
Don't let the design overshadow the message.
Have a logo professionally designed and use it. A logo design is the visual equivalent of your name. Your
name gives form to your identity, and a recognizable identity is the name of the game in advertising.
Make sure the ad contains clear information on where you are, when you are open, and how to reach you.
Photographs, graphics, illustrations, or typography alone can be equally effective at grabbing the reader's
eye. Use what best gets your well thought-out, clear message out there.
Establish a look and maintain it. Repetition is important in advertising; it would defeat your purpose to
change the look of every ad. Once you've established a basic design, you can use creative ways, such as
varying the illustration, to change it.
Do you often see, as much as you see when you surf through the Web? Its pretty sure that you have entirely
different views and reactions upon seeing and actually taking notice to these two different kinds of
advertising. The differences may vary in print advertisements outdoors and Web advertisements in the use of
color, typefaces, and space.
Whatever else the difference is between Print Ads and Web Ads, many would still prefer the traditional
print advertisements in order to promote their business, products, or services. Not all people have
access to the Web, such that Print Ads are still widely used and appreciated. It is also practical for a short-
term marketing plan or strategy.
Types of Newspaper Advertisements Designs
The major types of newspaper advertising are display, classified, public notices, and preprinted inserts.
Display Advertisement:Display advertising includes copy, illustrations or photographs, headlines, coupons,
and other visual components. Display ads vary in size and appear in all sections of the newspaper except
page one, the editorial page, obituary page, the classified section, and the first page of major sections.
One common variation of the display ad, the reading notice, looks like editorial matter and sometimes costs
more than normal display advertising. To prevent readers from mistaking it for editorial matter, the word
advertisement appears at the top.
Retailers often run newspaper ads through cooperative programmes sponsored by the manufacturers whose
products they sell. The manufacturers pay fully or partially to create and run the ad, which features the
manufacturers product and logo along with the local retailers name and address.
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Classified Advertisements
Classified ads provide a community marketplace for goods, services, and opportunities of every type from
real estate and new car sales to employment and business opportunities. A newspapers profitability usually
depends on a healthy classified section. Classified ads usually appear under subheads that describe the class
of goods or the need the ads seek to satisfy. Most employment, housing, and car advertising is classified.
Special Advertisements
Some special commodities and products are advertised under specific advertisements columns. Sometimes, a
few pages are devoted only to advertisements. They are well planned and are in colour to draw the attention
of readers. Advertisements are more effective if they are specially intended for certain type so readers i.e.
sportsmen, women, professionals, etc.
Advertisements should be planned logically and judiciously to attract all type of readers. The first page is
read thoroughly. So advertisements on the first page attract greater attention. The back page is equally good,
but it follows the first page. Similarly, the middle two pages are also read thoroughly. The third page is
devoted to local news. So, ads for local shops and manufacturers may be placed on the third page, men read
sports news, political news and these columns should be made, keeping in mind their attitudes.
Advertisements should meet the different requirements of the different segments of the market.
Preprinted Inserts
Like magazines, newspapers carry preprinted inserts and delivers them to the newspaper plant for insertion
into a specific edition. Inserts sizes range from a typical newspaper page to a double postcards, formats
include catalogue, brochures, mail-back devices, and perforated coupons.
Some large metropolitan dailies allow advertisers to limit their inserts to specific circulation zones. A retail
advertiser that wants to reach only those shoppers in its immediate trading area can place an insert in the
local-zone editions. Retail stores, auto dealers, large national advertisers, and other find it less costly to
distribute their circulars this way than to mail or deliver them door-to-door.
Public Notices
For a normal fee, newspapers carry legal public notices of changes in business and personal relationships,
public governmental reports, notices by private citizens and organization, and financial reports. These ads
follow a present format.
Advantages of Newspaper Advertising
Local advertising is in fact possible only in newspapers. Barring a few national advertisements, newspapers
contain mostly local advertisements. This is the biggest advantage, for newspapers provide advertising in a
geographically segmented market. Local and regional newspapers offer news, editorial, entertainment, and
personal interest stories for local readers, which create an interest in the local community and the region.
The advertising message thus delivered in local or community newspaper is most effective.
EXPLAIN THE THEORIES OF ADVERTISING
Strong Theory:In the Strong theory explanation, there have a hierarchy models are classically 'strong'
theory models which is suggest a rational, sequential approach to advertising. On this hierarchy models all
the marketing communication with AIDA Strong 1925, DAGMAR Colley 1961, Lavidge and Steiner 1961
and Wells et al. 1965 a imply for advertising to be successful from one stage to another until the ultimate
goal is achieve.
Other 'strong' models who developed followed a similar linear development it is cognitive response model -
exposure to advertising elicits different types of response & purports to suggest how these responses relate
to attitudes & purchase intentions. 3 'thoughts';
Product/message thoughts, Source orientated thought and advertising execution thoughts.
Weak Theory
The main alternative to the Strong theory is Weak theory. Weak theory of advertising assumes that the
advertising cause and the sales effect are far less directly linked than strong theories. The link is,
nevertheless, powerful and enduring. (Hackley, 2005) Ehrenberg (1999) also position the Weak theory as
simply publicity which defined as Bringing X to public notice. Publicity is to remind consumers that the
brand is around or relevant. Under Weak theory, the role of advertising is not only to create long-term
memory in consumers mind but also recall the memory in consumers mind. In other words, advertising
develops or maintains salience which is here defined as being in the consideration set of brands you does
or might buy. (Andrew, Neil, Rachel, Helen, 2002) Ehrenbergs (1974) awareness---trial---reinforcement
(ATR) model is typical of this theory models. Under Ehrenbergs ATR model, advertising will help
consumers to gain awareness or interest about a product first. Then the consumers might try it. In other
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words, advertising facilitate consumers to make a trial purchases. After trying a different brand, people may
go back to their habitual brands if there is no obvious reason for them to change to the new brand. But if
there is satisfaction after previous usage, a repeat buying habit may be developed and reinforced. The
repetitive advertising of well-established brands is therefore reinforcing already developed repeat buying
habits. This is the crucial determinant of long term sales.
Explain Advertising Appeal :-
Every successful advertisement works because it makes an effective appeal to some need or desire in the
people who view, read or listen to it. The advertising appeal is an attempt to draw a connection between
the product being advertised and some need or desire that the audience feels. Appeals fall into two general
categories :-
(i)Logical Appeals or Rational Appeals :-It aims for the buyers head. It tries to sell the products on the
basis of performance, features or the ability to solve the problems.
(ii)Emotional Appeal :-It aims for the buyers heart. It tries to sell product on the basis of satisfaction that
comes from purchasing and then either owning or giving the product as a gift.
For e.g. the ad for diamonds - one for diamond rings and the other for industrial diamonds. An emotional
appeal would be more effective for first case and logical for the second case. DeBeers ad - " diamonds are
forever ". The ad draws commitment between the product and the need for love commitment and
emotional security.
On the other hand ad for industrial diamonds will talk of performance and features.
Ad for Hallmark cards, it doesn't simply say -"You sure love your mom dont you "but it says, " Show mom
how much you love her by sending a Hallmark Card this year ". This is how it connects feelings to
purchase decision.
There can be lot of other appeals also :-
1. Price or value appeal :-It tells the customer that they will get more than what they are spending. e.g.
lowering the price and making them aware of the new price, or keeping the price same but offering more,
keeping the price and the product same but convincing the people the product is worth the charge.
2. Quality Appeal :-An appeal to quality includes guarantee for say 20 years or telling the product
history. An appeal to quality works only if the product possesses the right level of quality e.g. Raymonds -
since 1925.
3. Star Appeals and Testimonials :-The public fascination for sports superstars and entertainers is the
foundation of celebrity endorcement advertisement. The presumed pull of the star appeal is that people
like to identify with their favorite stars and will therefore be positively influenced by a star's appearance
in the ad. E.g. Sachin Tendulkar in Boosts ad.
A related appeal is testimonials, in which real users of the product celebrities or not make the sales pitch by
showing the product in use, discussing the benefits they got from it. It is a powerful advertising because
the core message comes from satisfied customers, and not the advertiser. e.g. Vim bar
4. Ego Appeal :- Most consumers are open to their ego appeals whether the appeal relates to their physical
appearance, intellect, sense of humor or any other real or imaginary personal quality. E.g. the L'oreal ad
featuring Miss World Diana Hyden where she admits the product is expensive but says " I am worth it"She
is appealing to the egos of the potential buyers to think the same of themselves. The ego appeal has to
happen in private, so it works without embarrassing the audience.
5. Fear or Anger Appeal :-Extreme cases of emotional appeals are those based on fear or anger. However
appeals to fear have to be managed carefully. Extreme appeals to fear can anger the audience or even
cause them to block the message completely. On the other hand, reducing somebody's fear or anxiety, rather
than artificially increasing it, can be effective. e.g. LIC's fire insurance policy.
Similar to fear anger can also be a strong emotional pull. For e.g. Wheel detergent cake.
6. Sensory Appeal :-Many ads aim right for one or more of the five senses of taste, touch, vision, smell &
hearing. E.g. food items. Advertisers often combine an appeal to one of the five senses with a supporting
appeal such as price.
7. Sex, Love & Social Acceptance appeal :- Another common appeal is sex, love & social acceptance
appeal. The sex appeal has to be used with some caution. At its extreme it can keep an ad from running,
when print or electronic media refuses to accept it for publication or broadcasting. Also, attempts to present
a sexy image may cross the line & offend some readers & viewers as simply sexist & not sexy.
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8. Novelty appeals :- A no of advertisers in recent years have tried to catch the audience attention by
creating ads that are really strange. One should be careful not to loose sight of ones advertising message &
make sure it doesnt get buried by any strange elements in the ad.
EXPLAIN THE STRUCTURE OF ADVERTISING AGENCY :-
a) Role of the Advertising Manager: -
A common perception is the advertising manager works in the advertising agency but in fact the
advertising manger is the person who interacts with the adverting agency on behalf of the advertiser. The
agency client relationship and negotiations will be conducted between the agency accounts executive and the
companys advertising manager. The advertising manager may also be the marketing manager or sales
manager, product or brand manager.
b) Accounts director: -
The accounts director will be responsible for group of accounts or clients. There will be many
accounts executives handling one or more clients working under an accounts director. The accounts director
is
Responsible to the board of directors
Lead negotiation for new & renewal of business
Will direct policy matters whether or not to accept certain accounts
Handling competing accounts usually considered unethical

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Departments and functions of a large full service advertising agency.
c) Accounts executive:-
He/she is the link between the agency and client. An a/c executive has to understand the clients need,
the business & the industry & interpret these needs to the agency. He also has to present the agency
proposal, ideas & works to the client .
The a/c executive should have
Broad knowledge of advertising
Be able to work with everyone in the agency
prepare a contact report after every meeting with client where the following has to be stated-
When & where the meeting was held
Who was present
To whom in the clients organization & agency the report is being distributed
The items reported & decisions taken
On the margin the instruction given & the person to whom the instruction is given his initials should
be his initials should be there
d) Marketing Manager :-
Following are the function of an agencys marketing manager
Marketing advice is offered to clients who dont have marketing manager
Advice on the use of marketing research & commission surveys
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Advice on aspects of marketing mix such as product development, naming and branding, packing
market segment, test marketing and distribution
It would be beneficial for the advertiser if the agency account executive and marketing manager sit in
the advertisers decision making conference from the earliest possible moment
A marketing manager can particularly influence in the following stages like
Naming does the name lend its self to good promotion
Packing would it be easier to promote the product if it were to be packaged differently
Distribution would it be more economical to sell directly to retailers rather than through
wholesalers
The marketing manger would be able to advice the client on the basis of his wider experiences
e) Media planner :-
In large agencies the media planner & media buyer will be different persons where as in small
agencies both the function will be handled by one person
The job of a media planners is to decide the media mix on the basis of minimum use of media of
maximum advertising value. This is done on the basis of following factors
Media statistics:-
This includes the figures on circulation as well as readership for print media.
Television audience figures
Radio audience figures
Media rates :-
There are expressed as cost per thousand sales, readers, viewers, listeners, passenger & passers by .It
has to be decided advertising in which of the media vehicle will be most cost efficient.
Media schedule:-
This is a plan or diary of the proposed insertions in the press, or appearances on the radio or the use of
other media over the period of the advertising campaign with their costs.
(f) Media buyer:-
When the media schedule has been prepared ,approved or amended ,it becomes the media media buyers
task to make the bookings .He negotiates with the media for purchase of space & airtime. He uses his skills
to get the best price & best position & times.Sometimes bookings has to be made months in advance and so
he has to make tentative bookings even before the media schedule is prepared.He is also contacted by the
representatives of media from time to time with offers and proposals.The media buyer is being constantly
being approached by hard selling sales representatives.
(g) copy writer:-
He is responsible for writing the wordings of an advertisement.He should convert sales proposition into
selling ideas ,creating themes or copying platforms for campaigns .He should squeeze the sales argument
into the fewest no. of necessary words.The copy writer doesnt use complete grammatical sentences.The
copy writer can write a word, one sentence, paragraph that grips the audience s interest or desire .The copy
writers can be employed in the agency or they may even work free lance.
(h) Art director:-
He is the head of the studio .He will have a team of visualizers, layout artists.If there is no separate art buyer
,artwork will be bought through artists agents, or direct from artists.Photographs will be
commissioned.Models engaged through a model agency.
Visualiser:-
He interprets in visual terms the copy writers ideas.Copywriter and visualiser usually works as a team .He
produces rough sketches and may scribble many versions until the ideas are sufficiently well exposed .
Layout artist;-
A layout is an exact plan of an advertisement ,converting the visual into a measured representation of
the advertisement which can be followed by the printer or made up as camera ready copy.The layout artist
draws the layout & adaptations of it.
(k) Typographer:-
He is a master of type .He knows hundreds of display & text typefaces.He knows how to use them both to
create effect and to ensure legibility.The typographer will take the written copy & the draw layout and select
and instruct the type setter on the faces and sizes required.
Television producer:-
31

He creates ideas for commercials and these are presented in the form of storyboard which resembles a series
of cartoons in shapes like television screens or rectangles.He will be responsible for casting the actors &
presentor ,hiring music & appointing a director and production unit
Production manager:-
He organizes the production of advertising throughout the agency ,according to a set time table so that the
advertisements are delivered to the media on time .He is also responsible for ordering type settings &
supplying finished advertisements as they are required for flexography, photogravure or offset-litho printing.
Voucher:-
It is a copy of a journal in which the advertisement has appeared ,and is supplied by the publisher as a proof
of appearance.Sometimes only the advertisement and not the whole publication is sent to the client & this is
called a tear sheet .

EXPLAIN ADVERTISING MEDIA AND MEDIA PLANNING AND MEDIA STRATEGY.
Defining Media Planning.
Media planning is the process of directing the advertisement message to the target audience at the
appropriate time and place, using the appropriate channel. In other words, a media planning outlines how
advertising time and space in various media will be used to achieve the marketing objectives of the company
through advertising. It helps answer such questions as:
What audiences do we want to reach? - Target Audience
How to reach the audience? - Media Selection
When and where do we want to reach them? - Media Scheduling & Timing
How many people should we reach? - Reach
How often do we need to reach them? - Frequency
What will it cost to reach them? - Cost effectiveness.
Media planning and marketing plans:
Just as advertising is one of the key functions of marketing, media planning is one of the key
functions of advertising. The advertising plan, which is based on the situation analysis and the marketing
plan, sets the advertising objectives. In turns, these plans & objectives guide the development of a
comprehensive media plan that outlines the specific media objectives, strategies, schedule and vehicle to be
used to carry out the advertising message.










Factors influencing media planning
There are several factors that influence the designing of a media plan. These may be grouped under
the following heads.
I. Marketing Consideration.
II. Specific media consideration.
III. Level of competition consideration.
I . Marketing Consideration.
For an appropriate media plan, it is essential to know the type of consumers, its size, location and its
qualitative characteristics such as sex, age, socio-economic conditions, literacy level etc., people spend less
time with each media vehicle. Their attention to each media vehicle is becoming fragmented day by day,
Posing an additional challenge for media planners.
a)Products considerations. - The type of product & its features also determine the media to be used. For
example, industrial products are advertised through trade journals where as fashion wear are advertised in
film magazines or fashion magazines.
Marketing Plan


Situational analysis
Marketing
objectives
Marketing
strategies
Action plan
Advertising Plan

Situational analysis
Marketing strategies
Promotional strategy
Advertising objectives

Advertising strategy
Creative strategy
Media plan
Budget

Media Plan


Media objectives
Media strategies
Media schedules
Media vehicles
32

b)Channels of distribution consideration - Distribution outlets may be classified into local, regional,
national and international. If the product is to be distributed locally or regionally, the media, which may
cover these areas, may be considered. If the product is to be distributed on a national basis, adequate
national media that has reasonable national coverage shall be considered.
C)Advertising copy formulation: The type of message to be conveyed influences the type of media vehicle
to be selected. In turn, the type of target audience influences the type of message. The underlying principle
should be that the message should effectively reach the target audience, reinforce the ideas, convenience
them and elicit buying action from the consumers.
I I . Specific media considerations.
A)Size of the budget:
Quite often the size of the advertisement budget defines and confuses the advertising efforts. The
advertiser should select the media & plan the schedule strictly in accordance to his budget.
B)Media availability
Media availability covers such qualitative values such as audience charters, editorial personality and
contribution to advertisement effectiveness. Today, the number of media choices, and the number of options
within each category has multiplied. New medias are popping up, all around, favoring on the select type of
audiences. These have made media planners to evaluate their choices and media alternatives. The media
availability is measured in terms of
i) Distribution measurement - expressed in the number of copies. Circulated.
ii) Audience measurement - expressed in terms of audience size, composition and exposure.
iii) Exposure measurement - expressed in terms of creative advertising exposure &
its impact in terms of perception & behavioral response.
c) Media Characteristics -the inherent characteristics of a media viz, its reach, frequency and
continuity are to be considered for effective coverage.
d) Media costs - not only can it be expensive to produce commercials but it can also be costly to run them.
In fact, no matter what media are used, the media budget can dwarf the production budget, which makes
rising media costs a major concern.
I I I . Competitive considerations.
Media planners must always be like a watchdog on their competitors moves. They must analyse
their spending, type of media used and the timing & scheduling of their advertisement message. Many times
media planners are significantly influenced by the competitors advertisement campaign. They must plan to
match and win their competitors ad campaign.
Media planning process











Developing media objectives
The first step in the media planning process is to set media objectives that will act as a guide in the
selection and use of media. Whether the marketing objective is to launch a new product, introduce a product
in a new market, repositioning a product, or fend off new competitors, specific measurable objectives guide
media decisions. They provide a focus for co-coordinating advertising activities, and offer a clear standard
for measuring performance after the advertisement campaign has run.
Reaching the Target audience.The first step in media planning is the collection of useful information about
the audience or the market to be reached through advertising. Target audience profiles are generally
developed using demographic, psychographics, and produce wise descriptions, including age, education,
income, occupation, life-style & brand preference. The more specific and detailed description of target
audience, the better will be the selection of the media vehicles that effectively & efficiently reach the target
Media objectives
Target
audience

Distributing
the message
Media strategy
Determine
geographic
scope

Cost
effectiveness
Media schedule
Determine timing
Determining
continuity
Determining
size/length
Media selection
Factors
influencing media
selection

Cost
effectiveness
33

audience, avoiding those media that reach only a few members of the target market or that reach people who
never use the type of product being advertised.
Distributing the message
Once you have identified the target audience, the next step is to set objectives for
- When, where and how often to distribute the message to that audience.
- How many messages to schedule?
- How often to schedule them?
To answer these questions, one need to consider how to balance reach and frequency within the
overall budget set by the marketing department.
Reach :Reach is expressed in terms of the number of households or individuals reached by a given media
over a period of time. Reach measures the number of audience members exposed to that medium at least
once, no matter how many times they actually see or hear the message in that medium.
Thus if 6000 out of the target audience of 10000 young adults aged 13 to 18 time in a daily MTV
Programmed one or more times during a month, the reach is 60% (i.e., 6000/10000)
Frequency :Frequency measures the number of times different households or individuals are reached by
a medium in a given period of time.
Thus, if 3000 people in the TARGET AUDIENCE watch a daily MTV Programmed 4 times during a
month and another 3000 watch it 6 times, then
Total number of exposures = (3000 x 4) + (3000 x 6) = 30000
Total audience reach = 6000
Average Frequency = 30000/6000 = 5 times.
Marketing planners must actually determine the effective frequency, the number of times a target
audience must be exposed to a particular advertisement in a given medium to communicate the message &
stimulate action. Some of the factors that influence frequency are -
i. Purchase Cycle
ii. Market Share
iii. Brand History
iv. Clutter & Competitive share of voice
v. Message complexity.
vi. Message size and length.
Continuity: Refers to message delivers over a period of time or season. (same Medium). This is
important because isolated advertisements generally make very little impact.
Gross rating points. Message weight is the size of the combined target audiences reached by the media
vehicles in a single media plan. To calculate message weight, add up all the reach numbers for each
advertisement in the plan, ignoring any overlap or duplication message weight is expressed in terms of
GRPs.
GRPs is calculated by multiplying reach and frequency.
Thus, the GRP in the above example will be
GRP = Total reach x average frequency
60 x 5 = 300 points.
Ideally, media objectives should represent the best balance of reach and frequency as well as the
appropriate message weight, to support adopting and marketing plans. For example, to combat a heavy
competitive advertising, the aims should be to increase frequency rather than reach. When advertising a new
product the aim should be to increase the reach and message weight so a larger audience is exposed to the
product launch.
It should be borne in mind that one cannot maximize both reach and frequency, because these two
are inversely related. For example., one can choose to allocate the given media budget to reach 1000 people
7 times, 3500 people 4 times or 6000 people one time.
Developing media strategy:
Media strategy describes the course of actions to follow to achieve media objectives, including the
type of media and the individual vehicles to deliver advertising messages. The Media strategy involves
decisions to be taken in four broad areas.
- Determining geographic scope
- Scheduling the message.
- Selecting the media and
34

- Calculating cost efficiency.
1)Determining geographic scope
Products availability in the market is a vital factor to be considered. Since it is a waste advertising
the product in the areas where the product isnt available. Another factor to be considered is the products
strength in various geographic areas. By comparing each market under consideration, one can pinpoint the
markets that offer an opportunity for higher relations. Two tools used to compare sales strength in
individual markets ar BDI and the CDI
BRAND DEVELOPMENT INDEX:
The BDI is a ratio that measures the relative sales strength of a given brand in a specified area.

% of brands total sales in the market
BDI ------------------------------------------------ x 100
% of total population in the market


This index is convenient for computing the sales strength of the product in all markets under the
consideration so that one can prioritize where to invest more media budget.
CATEGORY DEVELOPMENT INDEX: Apart from knowing brands strength, it is also useful to look at
the over all sales potential for the product category, including the potential for all competitors selling the
same type of product.
% of product categorys total sales in the market
CDI = ------------------------------------------------------- X 100
% of total population in the market

















BDI & CDI can help evaluate products sales strength & sales potential & yield clues about where to invest
advertisement budget. However its important to pay attention to other factor such as size of the population
(considering larger markets even if they have lower BDI / CDI), the lever of product usage (looking at
markets with higher usage), and the strength of distribution (avoiding markets where you have little or no
distribution).
Scheduling the message
The second set decisions in developing media strategy revolve around message scheduling: -
- When to Advertise?
- How long to advertisement in each medium?
- How long to all media?
- How many times the advertisement are to be scheduled? And when?
There are three types of decisions involved in scheduling the messages - viz -
1.Determining timing - depending on the media objectives, messages can be timed in four ways:-
i) To reach people when the are most interest in buying the product.
ii) To stimulate demand during slower periods.

High
CDI







Low
CDI
High BDI Low bDI
Brand holds high market share Good sales potential for category
but our brand isnt doing as well
as others in the category.

Media spending to defend market- consider higher frequency during .
Share and to maintain awareness. Peak purchasing period.



Poor sales potential for the category potential low for both the
category
but high market share for the brand and the companys brand.

Media spending can be used to increase question whether
advertisement
the overall frequency of purchase. Can make a difference.
35

iii) To avoid competitors messages.
iv) To reach the people in the target audience when they are receptive to the medium in use.
2) Determining continuity
The pattern of message repetition determines the continuity of media schedule. There are different
types of scheduling depending upon the nature of the product and type of audience targeted at.
i) Continuity Scheduling - when a message is scheduled to run consistently over a long period without
gaps then it is known as continuous advertising. This type of scheduling is used to advertise food items,
soap and other products that are in demand all around the year.
ii) Flighting - not everyone needs or can afford to advertise continuously. Flighting, an intermittent schedule
with periods when your advertising runs and gaps when it doesnt one can use flighting to schedule
messages at peak purchasing intervals between each flight. This approach is useful for products that arent
in strong demand all through the year, such as sunscreen lotion.
iii) Pulsing - in the case of pulsing, you maintain a consistent, relatively low level of advertising throughout
the year and add pulses to make a heavier schedule during peak periods or to another competitive
challenges.
iv) Bursting - In case of TV advertising, bursting can be used during peak periods, ie., allowing to run an
advertisement repeatedly on the same station, which marks well if you are selling a complex or expensive
product or if you need to reinforce the message repeatedly during a short period.
v) Road blocking - scheduling the same advertisement on several major TV Networks at the same time.
This lets the advertiser have maximum reach in a short period.
3.Determining size/length and position:
Another important consideration while scheduling the advertisement is that of size or length and its
position in the media vehicle.
Print Media - How large the advertisement should be?
T.V.Media - How long the advertisement should run?
Magazine - Where to position the Advertisement?
4.Selecting the Media
Criteria for Selecting Individual Media Vehicles
1.Overall Campaign Objectives and Strategy
a. The media planners first job is to review the nature of the product or service, the intended
objectives and strategies, and the primary and secondary target markets and audiences.
b. The planner identifies the characteristics most relevant to the acceptance, purchase, and use
of the product.
c. The planner then matches these data to the characteristics of the audience of the specific
media vehicles under consideration. Advertising is most effective when it positions a product
as part of the solution the consumer seeks.
2. Characteristics of media audiences
a. Audience - the total of people or household exposed to a medium. Need to know how closely
the mediums audience matches the profile of the target market and how interested such
people are in the publication or program.
b. The content of a medium usually determines the type of people in the audience. Each type or
programming attracts a different audience.
3. Exposure, attention, and motivational value of media vehicles - the media planner has to
select media that will not only achieve the desired exposure to the target audience, but also attract attention
and motivate people to act.
a. Exposure Value - how many people sees an ad. Five factors that affect the probability of ad
exposure are:
The senses used to perceive messages from the medium
How much and what kind of attention the medium requires
Whether the medium is an information source or a diversion
Whether the medium or program aims at general or specialized audience.
The placement of an ad in the vehicle.
36

b. Attention Value - degree of attention. Exposure value relates only to the medium; attention
value concerns the advertising message and copy, as well as the medium. Six factors are known to increase
attention value:
1. Audience involvement with editorial content or program material
2. Specialization of audience interest or identification
3. Number of competitive advertisers
4. Audience familiarity with the advertisers campaign
5. Quality of advertising reproduction
6. Timeliness of advertising exposure
c. Motivation value - Motivation value is affected by those same factors but in different ways.
4. Cost efficiency of media vehicles - A common term used in media planning and buying is:
a. Cost per thousand (CPM) which is based on the mediums total audience.
b. However, media planners are more interested in cost efficiency, which relates to the cost of
exposing the message to the target audience rather than to the total circulation.
Calculating Cost efficiency
Even the advertisers with huge budget need to analyze the cost of using various media to reach in
their target audiences. By comparing and evaluating the cost efficiency of each medium of each vehicle and
of each media plan under consideration, advertisers can determine the best media mix to meet advertising
objectives.
CPM reflects the cost of reaching the mediums entire audience.
Cost of media unit
Cost per thousand --------------------- x 1000
Gross impressions
CPM can be a handy yardstick to support media selections, but it cant predict how your target
audience will react to a particular medium or which mix will best for the product. Thus, CPM may be a
good way to measure cost, but it doesnt measures effectiveness.
EXPLAIN THE VARIOUS TYPES OF MEDIA - PRINT
News Papers:
Despite vigorous competition from magazines, radio and T.V, Newspapers have traditionally
attracted largest share of advertisement spending due to its wide coverage, high frequency and cheaper rates.
Infact, the major source of income for most newspapers comes from advertisements from various business
houses.
Types of newspapers:Newspapers can be classified according to frequency of publication, page size, and
audience.
Frequency of publication: - Advertiser can choose between newspapers that are published daily and those
that are published weekly. In India, two thirds of the newspaper are dailies that are distributed in the
mornings, one-thirds are circulated as evening editions. In addition to their usual 8-16 pages content they
normally attach supplements specialising in Trade, Education, and women and children news. They also
carry a lot of advertisements.
Page Size-
Another way to classify them is according to their page size newspaper are typically published in one
of two sizes, broadsheet or tabloid. A broadsheet, also known as standard size newspaper has a page size
of about 22 x 13 and is divided into eight columns. Broadsheet newspapers are more popular than their
counterparts.
Audience-
A third way to classify newspaper is in terms of the audiences they serve. Most newspaper report
info of interest to the general population, so their audiences are broad, cutting across, social, economic and
cultural lines. However, some newspaper serves specialised audiences, which makes them particularly good
media vehicles to target these groups. Special interest audiences range from business people, doctors,
Auditors, lawyers, to ethic groups.
Market-
A fourth way to classify newspaper is according to the markets in which they are distributed. In
India national newspaper are normally in English while regional/state circulated newspaper are in regional
languages. There are still come newspapers that are distributed only in one town, city or metropolitan area.
Types of Newspaper Advertising:
37

1.Display Advertising
Consists of headline and body copy, illustrations and other visual elements that set the message apart
from the editional material surrounding it. Large or small, in black and white or in color, display ads are
designed to crab the reader;s attention and they appear almost anywhere in the newspaper.
Nationally, display advertising is placed by national advertiser to support brands available in local
market.
Local display advertising is placed by retailers and local business houses, and it accounts for more
than half of a newspaper revenues.
Co-op advertising is one where a mm pays part of the bill when a local store advertisement features
its brand.
2.Classified advertising
In contrast to DA, which can include illustrations and other attention getting visual devices,
classified advertising consists of an all text message positioned in the newspaper according to categories
such as employment, automotive, and real estate. Whereas regular classified advertising rules in small,
uniform type, many up also accept CDA, which includes illustrations, borders and other visual elements as a
may of setting the advertisement apart from other advertisement in the section.
3. Preprinted Inserts-
A preprinted insert is an advertisement thats printed in advance and enclosed with newspapers.
Advertisers or their agencies can print any type of advertising material - broucher, catalogs, or postcards and
ship them to the publishers, where they are folded into the newspaper for delivery to readers. This
distribution method generally costs advertisers less than using mail or door-to-door delivery.
Advantage of Newspaper Advertising: -
1. Market penetration - Newspapers generally offer good market coverage because their readership cuts
across economic, social and cultural lines.
2. Geographic selectivity - Advertisers can target narrowly defined areas by running advertisement in the
newspaper zoned editions or zoned sections that are distributed only in specific parts of the market. This
can help avoid wasteful targeting of unwanted audiences.
3. Responsive timing - Daily newspaper have daily advertisement deadlines, so any change or alternations
required to be incorporated requires very little time, normally a day or two. Further more, audience
reactions to the advertisements can be gauged quickly and easily.
4.Creative Flexibility- Newspaper offer many creative options for print advertisers, whether advertisement
are large or small all text or illustrated, in black and white or in color. However, the creative possibilities do
not include sound and motion.
5. Audience interest- Readers are interest in what they read in the newspaper and this medium is the main
source of info when people want to rent or buy a home, find a new job or shop for a car. Further more,
advertiser seeking specific target audiences can advertise only in the sectors likely to be read by these
targets.
Limitations of Newspaper advertising:
1. Reproduction constraints -
Because of the coarse paper stock, the color printing process, and the fast turnaround time, the
reproduction quality of most newspaper is limited. Even with the sophisticated printing processes, color
newspaper advertisement do not look as good as they would a magazines.
2. Limited targeting capabilities:
Though newspapers can reach broad audience, they are not effective at isolating specific market
segments. To counter this limitation, many newspapers now publish sectors that appeal to specific
audiences.
3. Short lift span-
Most readers spend relatively little time with newspaper before putting aside. Some just gaze
through only the headlines and some read only specific sections such as sports, and business. As the saying
goes todays newspaper is tomorrows waste paper newspaper are hardly preserved for future use.
4. Clutter-
Newspapers are filled with articles, photos, advertisement and inserts, so an individual advertisement
competes with a lot of clutters.
MAGAZINES:
38

Magazines have become a major advertising medium for all types of products. Lower cost of
distribution and creative possibilities in terms of color, space and text are the unique features offered by the
magazine advertising. Automotive, food, and household products are among the largest magazine
advertisers. These advertisers find magazines an effective medium for zeroing in on their target audiences.
Types of Magazines:
1. Consumer Magazines-
Consumer Magazines offers info and entertainment for the general public, people who buy products
for personal or family use. Consumer magazines are usually sold by subscriptions, on newsstands, and in
stores. They can be further classified according to their editorial appeal. Some common editorial categories
include -
- General Interest Magazines (Readers Digest)
- Womens Magazines (Femina, Womens Era)
- Special Interest Magazines (Sports Star)
- News Magazines (India Today, Outlook)
- Shelters Magazines (Interior Decoration...)
2. Business Magazines.
Contains information of useful to people responsible for buying business products. This can be
further categorized into
- Trade publications which is edited for retailers, wholesales or other distributors
- Industrial magazine which is edited for manufacturers; and
- Professional magazines, which is edited for dentists, lawyers, physicians, or other professionals.
Advantage of Magazine Advertising:
1. Geographic selectivity -
Some may target relatively confirmed market areas, such as on region, one state or one city. This
allows advertisers easily reach target markets with little waste.
2. Audience Selectivity:
Professional publications often reach select audiences, such as doctors, lawyers, accountants, etc.,
some may even target women and children.
3. Creative flexibility-
May offer superior color reproduction and ability to use special paper for added effect. They can
also grab attention through pop-ups, which expand into three directions and advertisement with strings or
tabs that reveal a logo or creative element. Further, magazine can bind in small product samples; an
especially handy may to introduce readers to new products.
4. Long life span-
Unlike newspaper, which are read and tossed out relatively quickly, magazines are around for a
longer period. They will be read at least till the next issue is bought. Some reader even preserves them for
future reference. This means that advertisement have more than one chance to get the audiences attention.
5. Audience interest-
Readers choose magazines on the basis of content where as newspaper cover a topic in one story or
few pages, magazines contains one or more longer articles on the topic. And because magazines contain a
mix of about 52% editorial & 48% advertisement material, there is less clutter then in newspaper.
Disadvantages of Magazines:
1. Limited reach and frequency-
Magazines arent as mass market a medium as, say, television; to reach broad audience, advertisers
have buy a lot of magazine space. Apart from lack of reach, most major are published monthly/bi-monthly,
resulting in decreased frequency.
2. Long lead-time
Because magazine printing processes require considerable preparation, advertisers have to submit
materials well in advance of the publication date. Once the lead-time for placing an advertisement has
passed, advertisers are locked in and cant change their advertisement, even if they need to respond to
competitive shifts or other market place changes.
3. Lack of sound and motion:
Despite the creative advertisement of good quality color, reproduction and the ability to use long
copy, illustrations and other options, magazines advertisement relies primarily on visual techniques to
39

consumers. Magazines cant use should (Like radio) or motion (like TV) to attract and maintain audiences
attention.
EXPLAIN THE TYPES OF MEDIA - ELECTRONIC
Radio Advertising:
Since early days radio commercials have painted word and sound pictures that bring to life the
products they promote. Advertisers have used radio as a personal medium that can build brand awareness
with vast coverage at comparatively low cost.
Types of Radio Stations
- AM Radio - Networks
- FM Radio - Syndication
Types of Radio Advertising:
1. Straight commercials - is one that uses sound effects to arrest and hold the attention of listeners describing
the product features and merits.
2. Dialogue commercials- is a kind of testimonial advertising. The advertising message is developed by
presenting the conversation between the announcer and other persons - may be film stars, players, experts,
VIPs or users.
3. Dramatized commercials - a problem situation is dramatized and the product is introduced as a solutions
to the problem.
4. Integrated commercials - This is also called as personality commercial since a film star, or player, a VIP
is given a free hand to present the programme.
5. Musical commercials - is one where the sales message is sung sweetly with the matching music.
Advantages of Radio Advertising
1. Cost and efficiency Radios CPM is among the lowest of any medium. This means that it is affordable
to build reach and frequency through radio, even on a modest budget. The production cost for radio
commercials is also quite low, and its almost nothing if we hand the radio announcer a script to read on the
air.
2. Wide exposure - Radio reaches virtually everyone in India. The listener has the unique advantage of
hearing the programme and commercials while doing his work. It requires hardly any effort and
concentration unlike other media like TV, Newspaper and magazines etc.,
3. Audience selectivity- Radio advertisers can reach audiences selectively. This is because each stations
programme format and geographic coverage attract a specific audience segment. The advertiser can adopt
his message and the intercity of coverage of different markers to meet local conditions.
4. Flexibility - advertisers can delete, change, or insert and copy almost instantly in the case of radio
advertising. Its as fast as substituting a new script or sending the station a new tape. This flexibility
allows the advertisers to quickly adjust to the changing market conditions.
5. Potential for powerful imagery- Because radio has no visual component, the advertisers has to say voices,
sound effects, or music and the listeners has to the mental picture. by inviting or challenging listeners to use
their imaginations, advertisements evoke feelings and reactions more powerful then those created by
advertisement in other media.
Limitation of Radio Advertising
1. Lack of Visuals - Creativity in Radio Advertising is limited to sound. One cant demonstrate or even show
the product register an image in the minds of the listeners.
2. Short life Span - As with TV commercials, radio advertisements are broadcast only for a few seconds and
then disappear. What compounds this fleeting life span is the tendency of some people to leave radio on in
the background as they work, drive, read or do something else. So they are likely to miss some or all of the
brief message.
3. Audience fragmentation: - with hundreds of stations and a wide choice of program formats, a single
station or network can capture only a tiny fraction of the total listening audience. Advertisers are forced to
buy sever time on many stations to reach large number in one market which can be both costly and cum.
4. Cluster - as with any other medium, radio stations, carry lot of advertisement during peak hours making
advertisement lose its uniqueness and significance. Further, they reach all the audience irrespective of the
fact that they are the targeted ones or not.
TELEVISION ADVRTISING:
40

With the combination of Sight, sound and motion TV offers endless creative opportunities to reach viewers
hearts and minds. Due to its efficiency of reaching mass-market reach almost all the manufacturers have
taken this route to advertise their products and services.
Types of TVs
- Broadcast TV - Cable TV
- Network
- Local
Types of TV Advertising:1. Sponsorship- under this type of advertising the advertiser assures responsibility
for producing a program and enjoys the exclusive right to air commercial during this show. Although
expensive, sponsorship has two main advantages first a sponsor can link its advertisement with a high
quality program gaining prestige from the publics perception of the show. Second, a sponsor has complete
control over the placement and content of its commercials, which can be shown at any time during the
sponsored programme. Since it is costly to be a sole sponsor, many times advertising become co-sponsors,
sharing the costs and the commercial time with others.
2. Participation An advertiser that doesnt want the expense or responsibility of sponsorship can choose
participation, in which various advertisers buy commercial time during a specific programme. Advertisers
can participate in a programme regularly or only sporadically and they may buy one or more commercials
during each programme, depending upon their budgets. However advertiser have no control over the
programme content or broadcast schedules.
3. Spot announcement- A less costly alternative to sponsorship is the spot announcement, where the
advertisements are presented to the viewers between the sponsored programme and the station break. Here
the advertiser pays only for the time of about as he is not paying for the sponsored programme. Further
when independent stations run their own programming, they can sell Spot announcement at any point during
or between programmes. By buying Spot announcement advertiser can reach specific markets without a lot
of waste, or they can emphasize particular markets where they see were sales potential.
Advantage of TV Advertising
1. Create flexibility - TV offers clutters possibilities for using sight, sound, color, and motion to
communication and advertisement message. Advertiser can make their commercial short or long, build
credibility by demonstrating the product and highlight unique/new features of their products compared to
that of competitors.
2. Coverage of mass markets- Its hard to beat TV for reaching huge no of people quickly. Now a days
virtually 70% of Indian house hold owns a TV set and those sets are used, on average, mere than 4 hours a
day.
3. Cost efficiency - Although it is expensive to prepare and run a TV commercial CPM are relatively modest
compared with the national audiences that can be reached.
4. Deep Impact - TV is a personal medium that tries to involve the viewer by direct person to personal
selling. It, infact replaces personal selling. The dimension of vision, sound, motion and color are
accountable for creating deep impact on the minds of the audience.
Limitations of television advertising:
1. Limited selectivity - TV Allows to make broad audience distinctions such as using cartoon programs to
reach children and sport events to reach men, but its difficult to be mere specific than that TV reaches all the
audience in a market and cannot make a distinction between a desired audience and an undesired one.
2. Audience erosion - National Networks are fast losing their viewer ship to more narrowed cable and
private channels. This means that national advertisers have to advertise both in the national networks and in
private channels to reach the targeted audiences.
3. Relatively high entry cost - Apart from the cost of talent and production, airing advertisement during
desirable shows and prime time periods is costly high cost have made some advertiser prepare just 15
seconds advertisement instead of a 30 second or 1 minute commercials.
4. Clutter- breaking through clutter has become a major challenge because viewers see more advertisement
than ever. Some even blame the network for airing too many advertisements by interrupting an interesting
programme very often. This creates a negative impression in the minds of the viewer to skip or avoid
advertisement by changing to different channels.
5. Brevity - Although research shows that a 15 seconds advertisement have more than half the persuasion
and recall of 30 seconds commercials; trying to cram too much message into too few seconds can hurt the
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effectiveness. Short advertisement may be effective reminders for people who are familiar with a product,
but longer advertisement are more effective when launching a new product.
6. Limited viewer attention - During an advertisement, viewers may resort to zapping, using remote control
to change channels. Many indulge in grazing, using their remote control to quickly scan a lot of channels as
they search for something interesting to watch. They may also zip through the advertisement on recorded
programmes.
EXPLAIN THE TYPES OF MEDIA - DIRECT MARKETING
DIRECT MARKETING
In a quest to reach out to specific individuals, advertisers are increasingly using direct marketing to
communicate directly with targeted individuals trespassing the intermediaries. The main idea behind such
marketing is that it is not the target audience that buys, its the individuals who taken action. Direct
Marketing establishes a direct two-way communication between the organisation and the customers and
prospects, Without the distractions, interruptions or in efficiencies of working through intermediations.
Forms of Direct Marketing
1. Direct - response advertising - It supports the direct marketing effort by asking the target audience to
respond, to take immediate actions. If the product marketed is simple and inexpensive, the adverse may
make the offer and ask for the order in one step. However, if the product is more expensive and complicated
to explain them the advertiser may use a two-step approach. In first, introduce the product and invite the
prospects to call or write bulk to get more info or free samples. In the second step, after prospects have seen
the additional information or the sample, they can be called on to place their orders.
2. Direct mail advertising - refers to advertising thats directly delivered to the target and by mail. The
advertiser can encourage. Consumer to order by mail, phone, fax of even computers and deliver the
merchandise by mail.
Direct marketing can use any medium and its not uncommon to use a con* of say, direct mail and
telemarketing or some other media mix to reach the target and several times and in serveral ways.
Types of direct marketing
Using database marketing
An increasing number of advertisers have their direct marketing programmes on a database, a
comprehensive and continually updated file of information about individuals in the target audience. It
contains the name, addresses, contract nos and buying patterns of the customers, usually details gleaned
from subscriptions, invoices, inquires, warrant cards and other sources.
Database marketing is used to
- Turn prospects into customers
- Cultivate long-term relationships with existing customers
- Get repeat business form customers than to attract new.
Building a customer database can take time and efforts. But its the only way to know exactly who
does business with the company. Though its little costly to generate a database it helps in functioning the
marketing efforts of a company to target the prospective individuals thereby eliminating financial waste and
marketing efforts.
Using Direct Mail - Directing marketing is the most common medium for direct marketing. Every year
advertisers spend huge sums in mailing postcards, letters and other direct mail pieces to business houses and
consumers.
Direct marketing formats: -1. Self Mailer - is a postcard, broucher, or other printed materials thats
delivered without an envelope. The recipients name & address are printed directly on the outside of the self
mailer, which may be stapled or sealed shut for mailing.
Postcards are cheaper way to send messages which contain courier and pre* info about the company /
product.
Envelops are usually printed with graphics, color and c* statements so that the reader is encouraged to
open and read the controls*
Letters may be typed or computer generated which explains the benefits and features of the product and
call for action.
Business reply envelope - is a postage paid envelope that customer can use to respond. All the customer
has to do is insert the reply card seal the enveope and mail it.
2. Statement stuffer. - is a small printed advertisement designed to be inserted into a customer invoice.
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3. Free print is a copy of an advertisement or an article that has appeared elsewhere but may be of interest to
customers.
4. House organ is a publication produced by the business houses that keep customers, dealers, and inverters
informed periodically.
Selecting mailing lists
1. House list - is a list of customers and prospects that maintained by the organisation itself. Its a valuable
resource because it contains the list of
Customers who have established a relation with the organisation and or the most likely to purchase again
and People who have made any inquiries in the part.
2. Response list - is a mailing list of people who have responded to direct marketing offers for the products
that are similar or related to the company.
3. Complied list - is one that has been assembled by an outside form from directories, public records and
other readily available sources. This list is helpful in identifying new consumers who are either a new house
owners, corporate purchasing agents, small business owners apart from other normal consumers.
2. Using catalogs:
A catalog is a direct marketing booklet that shows pictures, gives descriptions and quotes prices of
merchandise for sale. Since it is relatively expensive to produce, print and post many advertisers seldom use
catalogs for marketing. But many advertisers of expensive produce have resorted to catalogs for image
creation, product education and for product comparisons by the consumers.
3. Using print and electronic media -
Newspaper, magazine, TV and radio can be used as a direct marketing media. Print advertising can
simultaneously reinforce brand awareness or describe product benefits while offering more info, a product
sample or the product itself through a DR mechanism such as a coupon or a phone no. To make it easy for
perfects to respond, relay cards are bound into a magazine or inserted between the pages of a newspaper or
magazine.
Broadcast and cable TV is used to promote a wide variety of products from cosmetics and kitchen gadgets to
cars. T.V. advertiser not only use picture and sound to communicate product benefits but also repeat the
telephone no or the address for ordering by using both voice-overs and on screen displays.
4. Using Telemarketing
Telemarketing is the promotion of goods and services via telephones contact with business or
consumer. As a cost effective alternative to personal sales calls, Telemarketing lets you reach more
customers in less time. It is an efficient to reach prospects and customers. It is a two-way conversation,
which enables to understand consumers needs and to respond immediately to questions or requests.
5. Using Bill boards
Billboards are large flat sign structure erected outdoors, usually at large traffic areas. It contains
product and company info along with a toll free number. Billboards remind people about the company or the
products they are on the look for.
Advantage of Direct Marketing
1.Audience Selectivity - Direct marketing can help advertiser reach either a large, diverse audience or a
small, selected group. Bu using Newspaper, Radio or TV, advertisers can put message in front of large
audiences, by selecting database, one can use direct mail to reach select audiences, and by using special
interest magazines, one can reach those who are most interest in the product.
2.Flexibility
Advertisers can plan and implement advertising campaign relatively quickly, which gives the flexibility to
respond to changing market conditions. Moreover, depending on the medium it offers unlimited creative
flexibility with direct mail advertising. The size, color, paper, copy, illustrations and other creative elements
can be excellently altered or improved to suit the individual medium.
3.Personalization
The high degree of personal touch makes direct marketing stand out from other forms of advertising. With
tele- marketing and direct marketing advertising. The advertisers can use the customer name and address to
add a touch of personal contact. Moreover, directing marketing can tailor the approach to suit each persons
need and situation.
4. Ability to measure results
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Although its difficult to measure the exact results of a particular advertising campaign, it is early to measure
and evaluate direct marketing results by counting the no of coupons, order forms, or telephone responses
received by the co.
Limitations of Direct marketing:
1.Questionable accuracy
Although Direct marketing helps in pinpointing the target audience, the accuracy is only as good as the list
used for direct market advertising. If the names, address or telephone numbers arent correct or current, or if
the names on the list have been mistakenly included. The offer wont reach the target audience.
2. Public Criticism - Many people are annoyed about the flood of letters, catalogs and brouchers they
receive. They are also irritated by what they perceive to be junk phone calls. Some of the criticism stem
from the distrust of buying by mail, some from the inappropriate offers, and some from a rising concern over
the environment and the waste of paper and packing material used in direct marketing.
3. Lack of content support - Direct Market advertising on its own will not generate the required audience
action. Often it must be supported with enticing editorials and interesting commercials.
EXPLAIN THE TYPES OF MEDIA - OUTDOOR
Out Door advertising
Advertising that reaches the Target audience away from home is called out of home or outdoor
advertising. To reach people out of their houses, advertiser position advertising messages outdoors, on or in
trains, buses and in a variety of other places.
Types of Out-door Advertising:
1.Poster Panels: A Poster panel is the small of the standardised billboard sizes. It carries a pre printed
message and may be mounted on the top or the side of a building or may stand alongside a street or
highway. The messages mounted on poster panels and usually printed using silk screens, or lithoraphy.
Then the strips are preposted, packaged, and brought to the site, where they are smoothed into position on
the billboard.
2. Painted bulletins - is the larger of the standardised Billboard, typically measuring 14th x 48ft. often they
are painted in sections in studio and brought to the display site to be h* on the billboard. In some cases they
are painted directly on to the billboard. Recent developments involve using computerised printing services
that improve reproduction quality and consistency.
3. Spectaculars - An extremely large OD display that incorporates special electrical or mechanical devices is
called spectacular. Spectaculars such as huge neon or electric signs are expensive to product, but because
they are glitzy and colorful and often include moving text or graphics, they have a visual impact that
commands attention.
Advantages of out-door advertising
1.Reach & Frequency Since the message is on display 24 hours, it can gain wide and repeated exposure if
its in the proper locations.
2.Flexibility
The creative choices of Billboard and other outdoor advantages are almost endless. Color, typeface, size
and shapes can be varied, and the advertiser can use three-dimensional elements, inflatable, lights and other
attention getting techniques.
3. Audience impact -
The input on the audience is tremendous because out-door ads are larger then life and the advertisement
cant be turned off like a TV or thrown away like a newspaper.
Limitations of out-door advertising
1. Limited audience measurement -
It is difficult to really measure as to how many people actually see a particular Billboard or poster or if they
notice its message.
2. Limited message communication -
How much of a message can be absorbed by a driver passing a billboard at a high speed?
3.Message wear-out
After an outdoor advertisement has been up a while, people may become in different to the advertisements
or get tire of the message.
4.Public criticism Huge posters often attract much attention of a driver, which might lead to accidents.
Further public there is a growing resentment among the public for using billboard to advertise tobacco and
liquor advertisement.
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Transit Advertising:
Transit advertising is placed inside or outside public transportation vehicles, in train or bus stations, and on
platforms, and in airport terminals.
Types of transit advertising:
1.Inside cards-
An inside card is an advertising panel displayed on the interior of a transportation vehicle such as a bus or
train. Inside cards are horizontal and may be mounted on the walls above the windows or doors, on larger
spaces next to the doors, or at either end of the vehicle.
What makes inside cards so attractive to advertisers is the captive audience of riders who often have little to
do but read the ads. Unlike the fast moving audience for out-door advertising who have time only for a brief,
simple message, the audience for inside cards have enough time to absorb a lengthy list of copy points or
complicated messages.
2.Outside posters-
an out-side posters is an advertising panel attached to the side, front, rear, or roof of a bus , train, subway,
trolley or taxi. Out-side posters attract attention from riders waiting to board as well as from people passing
on foot or in cars, which means that out-side posters offer a lot of reach and frequency for the money.
3.Terminal posters-
A terminal poster is an advertising panel mounted inside a bus, subway, train, or railway station, on a transit
platform; in a bus-stop shelter, or in an air line terminal. Terminal posters may be either printed, painted or
produced as transparencies and placed in back lighted frames so that their images are illuminated from
behind. In addition, terminal posters may be made to appear on an electronic sign inside the terminal or
placed on or around a terminal clock.
4.Mobile billboards-
A variation of transit advertising is the mobile billboard, a type of rolling advertisements in which a poster is
mounted on the side of a flat bed, a van, or a tractor-trailer. Small flat beds are manageable way to tow
mobile billboards through the narrow streets of many urban areas, where as tractor-trailers or vans with ads
posted on their sides can spread the message along highways and rural areas.
Advantages of transit advertising:
1.cost efficiency-
Transit advertising is one of the least expensive ways to reach an audience not only the cost per thousand
low, but the production costs are low also.
2.High frequency-
People who follow the same route to and from work or school are exposed to advertisements day after day.
Transit advertising is usually displayed for at least 30 days and sometimes as long as a year, which gives
them high frequency rates.
3.Goegraphic coverage-
Transit advertising can be used to cover an entire city or reach just the section in which the target audience
lives or works. For instance, to reach college students, advertisers might put ads on or in the buses serving
the local campuses.
4.Long exposure-
Even complex and lengthy messages can be conveyed using target audience because the people who
commute or wait for the bus/ train have nothing to do but to read and understand them.
Limitations of transit advertising:
1.Limited selectivity-
Although transit advertising allows advertisers to send messages to specific geographic areas, the
advertisements may still reach audiences who are not targeted at. Often buses and trains may be rotated
throughout the system from time to time, bringing the advertisements to areas the advertiser had not
intended.
2.Limited creative flexibility-
Unlike billboard advertisements, which can incorporate three-dimensional gadgets, and other attention
getting elements, terminal posters must be flat. The messages in the transit advertisements have to be easy to
read as the vehicles (and the riders) bounce along.
3.Limited reach-
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Although, a large audience may see transit advertisements daily, their reach is somewhat limited, for
example, they do not reach people who live or work outside the city. People who commute by car would not
see terminal posters. Hence there is a risk of missing an entire segment of the market audiences.
4.Poor public perception-
Looking at the same ads daily would lead to message wear-out. People might tend to become indifferent to
these ads. Further when buses, trains or stations are dirty, the audience may have difficulty separating the
ads from other political and local programme posters.
Other types of advertising:
1.Aerial advertising-
Advertising that is displayed on the side of a blimp or a hot air balloon that is created by skywriting is
considered aerial advertising. It reaches audiences hen they are out-doors or when they are looking outside.
It can be expensive, but it also tends to gather a lot of attention that usually translates into free publicity.
2.On-Screen theatre advertising:
Film advertising is yet another medium characterized by sound, motion, color, vision and timeliness. It is
like a television run on a enlarged screen for a large audience. This audiovisual medium has a wide range
starting from an ordinary slide presentation to the advertisement film screening.
3.Electronic place based advertising:
It is an umbrella term for radio, television and computer ads that are being aimed at audiences when they are
not in their own homes. This type of advertising can be used to target audiences when and where they cannot
avoid being exposed to the message, the captive audience of people watching monitors in an airport lounge
or a doctors office cannot change channels and therefore must sit through the ads as well as programs.
EXPLAIN E- COMMERCE, ITS ADVANTAGES AND DISADVANTAGES.
Exchange of business information using electronic formats, including e-main, electronic bulletin
boards and electronic funds transfer (EFT).
E- Commerce are designed to replace traditional paper based work flow with faster, more efficient
and reliable communication between computers.
It is the process of two or more parties making business transactions via computer and some type of
network e.g.
Direct connection or the internet.
It includes B2B transactions, online retail, and the digitalization of the financial industry.
It also includes all the steps that occur in any business cycle, such as placing ads, completing
invoices and providing customer support.
E - Commerce is the buying and selling of goods and services via the communication capabilities of
private and public computer networks including the internet.
The term e - tailing is sometimes used for online retail selling.
E Commerce can be divided into;
Electronic data interchange (EDI), the business business exchange of data.
Gathering and use of demographic data through web contracts.
E- tailing or virtual storefronts on web sites with online catalogue, sometimes gathered into
avirtual mall.
E- main and fax and their use as media for reaching prospective and established customers (for
example, with newsletters).
Business to business buying and selling.
The security of business transactions.
E-Commerce definition
Electronic commerce is an emerging concept that describes the process of buying and selling or
exchanging
of products, services and information via computer networks including the internet
E-commerce classification
A common classification of EC is by the nature of transaction:
Business-to-Business (B2B): electronic market transactions that take place between organizations
Business-to-Consumer (B2C): retailing transactions with individual shoppers typical shopper at
Amazon.com is a consumer
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Consumer-to-Consumer (C2C): consumer sells directly to consumers, examples -individuals
selling
in classified ads, auction sites allowing individuals to put up items for auction e.g, e-bay
Consumer-to-Business (C2B): individuals who sell products or services to organizations and those
who seek sellers and conclude a transaction
Intra Business (organizational) EC: all internal organizational activities involving exchange of
goods, services or information, selling corporate products to employees, online training and cost
reduction activities
Electronic data interchange:
Electronic data interchange is the transfer of business documents, such as purchase orders and
invoice, between computers as per a set of standards. EDI facilitates the transfer of business documents
stored in structured formats through mutually agreed messaging protocols from one computer
application to another. The users of DEI do not have to change their internal databases. However, users
must translate this information to or from their own computer system formats, bus this translation software
has to be prepared only once. Thus, EDI is a tool for business t business communication. In simple terms,
EDI is computer to computer communication using a standard data format to exchange business information
electronically between independent organizations. The goal of EDI is the elimination of paper work and
increased response time. E- Commerce, on the other hand, is a concept reflective of the infrastructure and
technology available for conducting business using the electronic media.
Uses of EDI:
EDI addresses many problems arising out of paper based information systems. In a paper based
information system, a number of delays occur. Lot of time is required, sometimes, for physical movement
of documents from one party to the other. Further, delays are caused by the manual processing which
requires one to key and re key the information along the timeline. Delays in transporting and keying
information result in ordering delays, billing delays, payment delays, poor customer service, and poor
management information. Some of the problems with paper based information systems that EDI can address
are;
Labour costs:
In a paper based system, manual processing is required for data keying, document storage and
retrieval, document matching, envelope stuffing etc.
Errors:
In the paper based system the same information is required to be keyed in a number of times. Hence,
the paper based information system is not only labour intensive but also error prone.
Inventory:
In addition to the delays and uncertainties, in paper based system lot of paper is required to record a
variety of information.
Uncertainty:
Uncertainty exists in three areas.
First, delay in transportation and keying mean that timing is uncertain.
Secondly, the sender does not know whether the matter dispatched will reach the party intended to or
not.
Thirdly, uncertainty regarding payment.
It is difficult to tell when the bank will disburse the cheque.
Advantages of EDI:
Through the implementation of EDI computers electronically exchange business documents with
each other with a minimum of human intervention thus reducing operating costs, administrative errors, and
delivery delays. The benefits accruing from EDI implementation can broadly be given as under;
Orders from the customers can be analyzed and executed without any delay.
Orders can be raised to reflect both demand and stock availability.
Carriage by road, rail, sea or air can be booked simultaneously, and
Customers clearance can be obtained even before the goods arrive.
All this can be done without any paperwork.
E- Mail:
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E-mail is the exchange of text message and computer files over a communications network such as
a local area network or the internet, usually between computers or terminals. It is also defined as an
electronic text message.
Internet:
Internet is the world wide collection of networks and gateways that use the TCP / IP suite of
protocols to communicate with one another. At the heart of the internet is a backbone of high speed data
communication lines between major modes or host computers, consisting of thousands of commercial,
government, educational and other computer systems, that route data and messages. One or more internet
nodes can go off line without endangering the internet as a whole or causing communications on the internet
to stop.
Advantages of E- commerce:
Provides with easy shopping: Shopping on the internet provides with a fascinating experience. In
traditional shopping a busy customer has to travel all the way to a local store to purchase things. If
he is not satisfied he goes to another shop and so on. In the process he will be wasting lot of time
and energy. A busy person finds it difficult to go in search of a product of his liking. On the other
hand, a potential customer can turn to web; browse different shops and place orders for a variety of
articles without wasting his precious time and energy.
E-commerce saves operating costs by eliminating human intervention in order processing.
E-commerce is profoundly influencing the structure of business supply chains. For example,
Chrysler Corp., by linking to its suppliers through a web-based network, reportedly saved more than
$1 billion in cost of materials in 1997. By 2000, Chryslers estimate annual average savings would
amount to $2 billion.
E-commerce is a round the clock advantages for the customer. E-commerce allows a fast and
flexible execution and response to the market opportunities. The web enables a company to
introduce a new product, get immediate customer reaction, refine and perfect without heavy
investment and with much greater assurance of success.
Disadvantages of E-commerce:
Web shopping differs from traditional shopping in many ways. One of the most important
differences is web shoppers inability to browse a virtual store for merchandise. In a real store the
customer can walk through the general area looking for the merchandise required by him before
homing in on the exact product he wants to buy. One the other and an online shopper turns to search
tools to locate products.
In personal inspection one can select or reject the merchandise several times before he finalizes the
transaction and makes payment. But in online shopping he cannot do so. He cannot also look back
into contents of his basket to decide whether his shopping is complete or not.
Many commerce sites do not allow order checking and cancellation. Naturally, a customer would
like to know whether his order has been executed or not. If not, reasons for the same. In addition to
that customer may change his mind, items may get lost and cheques may bounce. A good commerce
site must allow order revision and monitoring but in practice many commerce sites do not.
Customers who browse the commerce web sites do not take a fixed route. They enter in some page
or the other at random and try to come out early to another product page, home page, check out page
or the customer registration page. Many commerce sites are not designed to facilitate such an easy
entry and exit (navigation).
E- Commerce may further widen the gap between the haves and have-nots. On line business
transactions require a computer and an internet connection, which have not yet come within the reach
of a common man. Hence, E commerce and internet may further marginalize the poorer population
groups and countries.
In E- commerce customer relations may actually be in jeopardy. Led to believe thay are transacting
in real time, they could become disillusioned and take their business to competitors or back to the off
line world if their order is not fulfilled quickly. Obviously, changes must be made before the
promise of E-commerce can be fulfilled.
EXPLAIN THE FUNCTIONS OF MARKETING ON INTERNET.
E- BUSINESS:
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E Business is about using the convenience, availability and world wide reach to enhance existing
businesses or creating new virtual business.
IBM defines e - business as a secure, flexible and integrated approach to deliver differentiated
business value by combining the system and processes that run core business operators with the simplicity
and reach made possible by internet technology.
E - Business combines the traditional information systems with the vast reach of the web and conned
critical business systems directly to critical business constituencies customers, employees, and suppliers,
via intranets, extranets and via the web.
E Business can be divided into three areas;
They are
Within the organization
Business to business (B2B)
Business to customer (B2C) transactions.
With in the organization:
E Business within the organization uses the intranet. The intranet uses internet standards for
electronic communication. People on the intranet are able to see organization specific web sites.
Because of firewalls and other security measures outsiders cannot have access to these organization
specific intranet websites.
The intranet web sites allow the employees to obtain information and place order online.
Depending on the security policies of the organization of company, people may be allowed to
connect over the internet is a virtual private network (VPN) to the intranet using encryption lines and strong
authentication for identification purposes.
Business to business (B2B) dealings:
The second area is the business (B2B) dealings. B2B dealing takes place over the extranet.
The extranet consists of two intranets connected via the internet, whereby two organizations are
allowed to see confidential data of another.
B2B networks have existed long before the internet came into use.
Many organization have had used private networks to deal with their business partners.
But maintaining the private networks proved too expensive to the business concerns.
Cost of usage of B2B solutions through the internet have come down dramatically use of private
networks (VPNs) keep the costs low at the same time keeping the business transactions private.
Business to customer (B2C) transactions:
The third area of e - business to customer transactions. This is selling the goods and services through
the internet to the innumerable customers spread all over the world. In this, business concerns establish
virtual shops and offer goods and services to whoever visits the website.
E- Business categories:
Super set of electronic business is a business cases.
E- Commerce is one of the aspects of e - business.
EXPLAIN TELEMARKETING.
The cost of communicating by telephone has fallen relative to the cost of mail services, because of
increasing competition and cost savings brought about by new technology.
Tele marketing can be divided into inbound and outbound operations.
Inbound:Its concerned with handling the incoming calls that result from a companys promotion of a
telephone number for sales enquiries.
With the use of mass media to promote such number, companies can be swamped with calls
immediately following the launch of an advert. This is true of free phone telephone numbers that are shown
on television during peak times.
Companies need to handle such situations, otherwise the cost of generating leads is wasted and
prospective customers cannot get through may form a bad impression of the company.
Research by mintel into 2,000 user of call centers found that by far the biggest complaint when
telephoning a call centre was the time spent waiting on hold, with some 60% complaining about this.
25 to 34 age group persons were the least tolerant towards call centre with around 35% abandoning
calls, just 5% of the customers had never experienced a problem with a call centre.
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Large companies use agencies to handle their incoming calls, using the latest technology, calls can
than be routed through out the country to operators who are free.
Eg., UK are rooting their calls to be answered by operators located in distant countries like India.
This reduces costs of running a call center and can lessen staff turnover problem.
Careful use of time shifting can allow calls to be answered during the working day in the country
where call centre is located, corresponding with a peak in enquiries that occur in the evening in customers
country.
Many inbound telemarketing agencies have developed automated answering systems, in which
callers give answers to a series of automated question prompts.
Such systems can be very efficient at handling sudden surges in incoming calls, and may be quite
adequate for simple requests for brochures. However, many callers remain reluctant to use such system.
Outbound:A company using the telephone to contact potential or existing customers with sales offers.
Telephone selling has a very bad image in the UK, generating thoughts of poorly timed calls which
disturb an individual with a sales offer in which they have no interest. As with direct mail, better targeting
has reduced the nuisance value of receiving calls that are of no interest to the receiver of the call. The
increasing number of private households that prefer to go ex directory poses further problems for
outbound telemarketing.
E- Auctioning:
Auctioning on the internet has become popular nowadays. The internet enables everyone,
irrespective of the country to which he belongs and where one is located, can visit the auction web site with
a click and participate in the auction. In e-auctioning the people who want to participate in the auction visit
the web site with a click, go through the details of the goods offered on the concerned web pages and place
the price or prices they would like to offer on the web page. The auctioneer waits until a certain value has
been reached or a time limit has been passed and then hands out the goods to the highest bidder.
http://www.ebay.com/, http://www.qxl.co.uk/, http:/www.recardo.de/ are some of the popular auction web
sites which provide an opportunity for everyone to become either a bidder or an auctioneer, or both at the
same time for two different products. In this category of business, the web site becomes an infrastructure for
exchanging goods based on the auction model, which works basically by setting the prices by demand.
E-Banking:
Electronic banking is one of the most successful online businesses. E banking allows customers to
access their accounts and execute orders through a simple to use web site. Electronic banking saves
individuals and companies time and money. Online banking allows the customers to self service
themselves. Customers can get money from an automated teller machine (ATM) instead of walking up to
the cash desk in the bank, can view their accounts, transfer funds and can pay bills.
E- Marketing:
In traditional marketing the marketing team could not get immediate results on the customer
reaction. They conducted market surveys, processed the data and prepared the reports. On the basis of those
reports the management too decisions, formulated the policies, prepared the plans and implemented them.
For all this they took lot of time. Those who took less time and acted quick outwitted their competitor. In
the pre information age this worked well. But in the information age the information flowing back from
the customer in real time, needs to be passed on to the appropriate department within the company to react in
real time to the ever faster changing demands or the customers. The internet allows companies to react to
individual customer demands immediately without any loss of time. It does not matter where the customer
is located. This is called e- marketing.
E- Trading:
E- trading, where the basic requirements are a PC, a modem and the internet connection, the investor
can log on to an online trading portal, go through a comprehensive database of information, use the online
analytical tools, and pass on instructions to a friendly and reliable online broker. Online trading is the
perfect combination of the medium of net catering to a real life concept. Online trading is the perfect
solution to investor needs. It brings together under one site all the relevant factors to enable an informed
investment, rather cheaply to the user. Before the internet was introduced buying and selling stocks at the
right time was dependent on the availability of a well information broker, who used to be ever busy and
never available to a small individual investor. The other sources of information relating to the prices were
newspapers, magazine, telecommunication systems, radio and television. They were relatively slow, costly
and less exhaustive. Retrieving the relevant information and processing that information was difficult. The
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internet has changed the way stocks are traded. E Trading is also called e- banking. E- Broking offers the
real time stock prices to every desk throughout the world. People are able to react in real time to changes in
the stock market. Everyone with an internet bank account is able to buy and sell stock.
E-Mail:
Electronic mail is an electronic method of composing, sending, storing and receiving messages over
electronic communication systems. It allows sending and storing from short messages to large documents,
photos etc.
Voicemail:Voicemail is a centralized system of managing telephone messages for a large group of people.
For example yahoo voice mail, sky pie, msn voice messenger etc. It allows people to speak via telephone at
less cost.
Web- conferencing:
Web- conferencing is used to conduct live meetings or presentations over the internet.
Online shopping:
Online shopping is the process consumers go through to purchase products or services over the
internet. An online shop, e-shop, e-store, internet shop, web shop, online store, or virtual store evokes the
physical analogy of buying products or services at a bricks - and - mortar retailer or in a shopping mall.
Consumer can use on line catalogue to place order. Consumer can pay for the product or service by using
credit card or debit card.
EXPLAIN ABOUT THETYPE OF COMPUTER CRIMINALS AND COMPUTER SECURITY
ISSUES IN ECOMMERCE.
Hacker-is a person who has good knowledge about computers and tries to open the data packets and steal
the information transmitted through the Internet.
Cracker-is someone who specifically breaks into computer systems by bypassing or by guessing login
passwords. These persons enter into the network as authenticated users and can cause any harm to the
system.
Phreaks-are persons who hack phone systems. These people specifically try to scam long distance phone-
time for them to control phone switch capability or to hack company automated EBX systems to get free
voice-mail accounts or to raid companies existing voice-mail messages.
Phracker-is the combination of freak and cracker. A phracker breaks into phone systems and computer
systems and specializes in total network destruction.
Security Issues
Another major issue in the Internet security is misrepresentation and fraud. One of the reasons of
misrepresentation is that on the net it is easy to appear as anyone or anything without the actual presence.
In reality there are three places where data can be intercepted
In the browser
Between the browser and the server
In the server
In the browser the users often type sensitive data into a form field and continue their Web session. If the user
leaves the computer tuned on and unattended, anyone can access that computer and view the last users
personal data.When the crucial information (credit card) is sent to a server even by using a secure method it
is often encrypted and stored or sent as e-mail. During this process it could be intercepted. For example, a
hacker can access to the e-mail system and the crucial data sent by the e-mail.There is currently huge cry for
secure commerce server that will make credit card transactions fairly safe. Although such servers might
protect consumers from having their credit card information stolen, they do nothing to protect the store
owner from criminals who use fraudulent credit card numbers or false identities to purchase the products.
Unfortunately storeowners have less protection from these kinds of frauds.One of the simplest ways to
safeguard against illegal transactions is to have your order entry system check the credit numbers against the
credit card check sum standard.
Encryption
Encryption is a technique for hiding data. The encrypted data can be read only by those users for whom it is
intended.Nowadays various encryption techniques are available. One of the available techniques commonly
used for encryption is Public Key. In Public Key encryption system, RSA Data Security of Redwood City
offers the most popular and commercially available algorithm.
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In a Public Key encryption system each user has two keys-public key and private key. The encryption and
decryption algorithms are designed in a way so that only the private key can decrypt data that is encrypted
by the public key. And the public key can decrypt data, encrypted by the private key. Therefore, one can
broadcast the public key to all users.
Storing Secure Information :The most insure part of the Internet is not the Net itself but the source and
destination of users and computers on the net.As the user of the system, you should know the place and the
method to store your data. When you are connected to the network your personal system is vulnerable.
Because of the nature slip type connectivity and TCP/IP networks, someone else could be probing your
system while you are working. Decrypted data residing on your hard disk may be available to outside for
snooping. As server and browser security increases almost pirates will be driven to breaking into the system
at the source or at the destination. This information of-course applies equally to the both the user and the
storeowner. Storeowners must ensure that product information database is secure. Again store owners
should ensure that they encrypt archived transactions,as well as transactions in the process of being
fulfilled.If a business can afford only lesser security then the best you can do is keep permissions of files
hidden from pirates. One of the best security measures that you can take for physically stored data is to have
hardware password protection. Many commercial products provide this facility and often work well to keep
the data secure. Another security measure is to delete the not required data or information. Simply deleting
the information is not enough. Pirates can easily undelete previously deleted
information. They can even unformatted a formatted disk.After securely deleting file defrayment your drive
using any popular disk utility. Such program ensures that the original structure of the disk is recognized
leaving no recoverable data.
Another type of pirating is also done by using, the electromagnetic emissions that come from the monitors.
In the early age of computing, programmers could debug programs by turning on a radio and placing it near
the computer. The internal clock speed of the computer would oscillate like the radio stations.
So they could hear the programming sequence running on the computer. The programmers soon learn how
to interpret the different sound frequencies to determine what was happening in their program. A type of
technology and research called TEMPEST is available that can reverse this electromagnetic radiation into a
reasonable reproduction of the original information.
You can follow an easy set of rules to ensure that your security is not breached.
Protect your system
Monitor for intrusion
Trap any intruders
Report to correct authorities
Destroy the pirated data
The first and important thing is protecting your system but only protection does not mean the network is
secure.
You need to monitor your system on periodic intervals to improve your security. Because monitoring is the
only way to know whether the system security has been breached. One should monitor the following aspects
in regular intervals.
Disk space usage, Communication lines, Login files, Attempts to change user privileges, Network
statistics logs
The network statistics logs informs about socket and port connections to your machine and it records who
has used what socket and when. This information help to find pirates trying to hack into ports and can go a
long way in tracking them.
The Better Bureau (BBB) http://www.cbbb.Org/cbbb/
The Internet Society http://info.isoc.org/home.html
The Electronic Commerce Association http://www.globalx.net/eca/
Creating a Secure System:Its a known saying Prevention is the best medicine and this implies equally
well to compute security. The first step is to keep the security of your data files such that only the right
people can see them. This is especially crucial for any of the following types of data and files.
User passwords 2. Billing files 3, System and user logs 4. Credit card information5. Trusted remote
system information 6. Compiler 7. Administration tools
User passwords and usage logs should be kept secure to keep pirate from looking at those files to figure out
how to gain further access to your system. Keeping your password files shadowed or hidden keeps pirates
from remotely acquiring your file and then running password cracking programs on the file in their own
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time.Finally, be sure to protect administration tools as well as compiler. General users to your system should
not have access to these tools because, if they fall into wrong hands, the tools can be used to create programs
that aid the pirate in greasing security.
Working with Firewalls, Wrappers, and Proxies
Firewalls, Wrappers and proxies offer a good line of defense for WWW server owners and system
administrators.
Firewalls can be either software or hardware that protects your ports and keeps pirates from penetrating
,your security: The concept of firewalls is to only allow certain trusted domain names to access your system.
Other domains are simply not allowed in and get a connection refused message. By restricting the millions
of domain names such that only one or two get in, you are instantly restricting access to your system from
the outside.Firewalls can be configured to run on certain ports and not on others. This allows you to have
security on all your systems except the areas where you dont want it. For example, you might want users to
access your Web site from anywhere, but not be able to ftp or telnet in. In this case, you would not have a
firewall running on the Web port, but would have one running on your FTP and Telnet ports. Users from
anywhere could access your Web information without a problem, but attempts to ftp and telnet would be
refused unless they were coming from a trusted user.
It is as crucial to maintain firewalls and security system of other computer systems, as the initial setup and
installation is. At the same time, we should stay current with updates to security software and trends in
security technology.
Wrappers are the second lines of defense available from CERT as well as other Internet archives. Wrappers
run as a layer of software around your other software. In other words, a user doing ftp to you should first get
the wrapper, which would then engage FTP. The user does not know that wrapper exist and cannot detect
any difference in the system.Wrappers are interesting because theyre flexible. Wrappers can act as firewalls
and can actually refuse users based on their use names as well as their domain names. Secondly, wrappers
log all accesses and thus can serve as a good indication of whether your security is working correctly.
Wrappers also enable you to create blind alleys that help to trap pirates. These can be tied into alarms that
alert you to penetration of certain directories that you can set up to look like juicy archives of all sorts of
good information. While the pirate is busy downloading basically garbage (made to look like valuable data),
you have ample time to trace the user.
Proxy Servers also allow you to hide data in most convenient manner. Proxy mode is most useful for users
behind a firewall.The users set their browsers proxy address to point at your Web server The Web server
then handles the actual direction of data to the outside world. This narrows the direction the users are taking
when they leave the system, enabling you to route data through holes in your own firewalls. The other major
advantage to this is that the server software can filter the request. By filtering .the information, you can
restrict the content and track the usage as well as modify the information on the fly.
Proxy servers can also be pointed to other proxy servers, which allows them., to effectively hide data. The
actual data can sit on machines far away from the server itself. The server accepts the contact from either a
local or a remote user. However, instead of simply fulfilling the request, the server in turn sends the request
to another server. The second server sends the requested information backs to the primary server, which is
then sent back to the user. The user never knows where the information actually comes from.
Reference :Integrated Marketing communication -
UNIT-III(END)
EXPLAIN THE MESSAGE STRATEGIES.
The message theme, or the outline of the key ideas in the ad, is a central part of the creative brief.
The message theme can be created using a number of message strategies. A message strategy is the primary
tactic or approach used to deliver the message theme. There are three broad categories of message strategies:
1. Cognitive strategies
2. Affective strategies
3. Conative strategies
Cognitive Strategies
A cognitive message strategy is the presentation of rational arguments or pieces of information to
consumers. These ideas require cognitive processing. When a cognitive message strategy is used, the
advertisements key message is about the products attributes or the benefits. Customers can obtain these
benefits by using the product. The goal of the cognitive message strategy approach is to design an ad that
will have an impact on a persons beliefs and/or knowledge structure. This can be accomplished by
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suggesting any one of a wide variety of potential product benefits. Foods may be described as healthful,
pleasant tasting, or low calorie. A tool can be shown as durable, convenient, or handy to use. A drill press
machine used in a manufacturing operation may be portrayed as being more reliable or faster than
comparable machines on the market. Cognitive message strategies make these benefits clear to potential
customers.
There are five major forms of cognitive strategies:
1. Generic messages
2. Preemptive messages
3. Unique selling proposition
4. Hyperbole
5. Comparative advertisements
Generic messages are direct promotions of product attributes or benefits without any claim of superiority.
This type of strategy works best for a firm that is clearly the brand leader and is the dominant company in
the industry.
The goal of the generic message is to make the brand synonymous with the product category. Thus,
Campbells Soups can declare Soup is good food without making any claim to superiority. This is because
the company so strongly dominates the industry. When most consumers think of soup, they think of
Campbells. Out of the top 10 ready-to-serve soups, three are Campbells products,accounting for 43.1
percent of the total market share.
Generic message strategies are seldom found in business-to-business advertisements,because few
firms dominate an industry to the extent of Campbells . One major exception is Intel, which controls 13.7
percent of the global microconductor market, which is double its closest competitor, Samsung (6.7% market
share). The generic message Intel inside has been used for years to convey to both businesses and end
users that the processor inside is made by Intel. The Intel name is synonymous with quality. One of Intels
major customers is IBM. For several years IBMs marketing team wanted to discontinue displaying the Intel
logo, because they thought it distracted from the IBMs brand. IBM, however, was compelled to continue to
display the Intel inside logo to assure buyers that IBM computers contain Intel microprocessors. Forcing
IBM to display the Intel inside logo on IBMs products illustrates the power a generic message has when
the firm dominates the market.
Generic message strategies can also be used to create brand awareness. The goal of the advertiser
may be to develop a cognitive linkage between a specific brand name and a product category, such as
Skechers and sporty footwear. The ad may contain very little information about the products attributes. The
intent of the ad is simply to put the brand name in a persons cognitive memory and cognitive map.
Preemptive messages claim superiority based on a products specific attribute or benefit. The idea is to
prevent the competition from making the same or a similar statement. For example, Crest toothpaste is so
wellknown as the cavity fighter that the brand preempts other companies from making similar-sounding
claims,even though all toothpastes fight cavities. The key to effectively using a preemptive strategy is to be
the first company to state the advantage. This keeps competitors from saying the same thing. Those that do
are viewed as me-too brands or copycats.
A unique selling proposition (USP) is an explicit,testable claim of uniqueness or superiority that
can be supported or substantiated in some manner. Brand parity makes a unique selling proposition more
difficult to establish. Reebok claims it is the only shoe that uses DMX technology, which provides for a
better fit. Reebok can use this unique selling proposition because the company holds patents on DMX
technology. In the Bonne Bell advertisement shown on this page, the company proposes a unique selling
proposition aimed at teenagers.
The hyperbole approach makes an untestable claim based upon some attribute or benefit. When
NBC claims that its Thursday night lineup is Americas favorite night of television,the claim is a
hyperbole. These claims do not have to be substantiated, which makes this cognitive strategy quite popular.
The final cognitive message strategy is a comparative advertisement. When an advertiser directly or
indirectly compares a good or service to the competition, it is the comparative method. The advertisement
may or may not mention the competitor by name. Sometimes, an advertiser simply presents a make-
believe competitor, giving it a name like product X.This approach, however, is not as effective as
comparative advertising that states the actual competitors name. To provide protection from lawsuits,
company leaders must be sure any claim concerning the competition can be clearly substantiated.AT&T and
MCI compare rates. VISA brags that many merchants using the card will not accept American
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Express.Burger King explains the advantages of flame broiling as opposed to frying, which McDonalds and
Wendys use. In the business-to-business sector, shipping companies compare delivery times and accuracy
rates.
The major advantage of comparative ads is that they often capture the consumers attention. When
comparisons are made, both brand awareness and message awareness increase.Consumers tend to remember
more of what the ad says about a brand than when the same information is presented in a non comparative
ad format.
The negative side of using comparative ads is in the areas of believability and consumer attitudes.
Many consumers think comparative ads are less believable. They view the information about the sponsor
brand as exaggerated and conclude that the information about the comparison brand probably is misstated to
make the sponsor brand appear superior.
Another danger of comparative ads is the negative attitudes consumers may develop toward the ad. If
viewers acquire negative attitudes toward the advertisement,these negative attitudes can transfer to the
sponsors product. This is especially true when the sponsor runs a negative comparative ad. This form of
advertisement portrays the competitions product in a negative light. Research has shown that negative
comparative ads typically result in lower believability of the ad claims and create less favorable attitudes
toward the brand.
In psychology, the concept of spontaneous trait transference suggests that when someone calls
another person dishonest, other people tend to remember the speaker as also being less than honest. When a
comparative ad criticizes the competitions brand based upon some particular attribute, viewers of the ad
may attribute that deficiency to the sponsor brand as well. This is most likely to occur when the consumer
uses the comparative brand, not the sponsored brand.
Companies must be careful in choosing an appropriate comparison firm and must be even more
careful about using a negative comparative ad format.Comparison ads are less common in other countries.
This is due to both social and cultural differences as well as legal restrictions. It is critical to be aware of
these issues. For example, many governments in Europe classify comparative advertising as illegal. In
Japan, it is not illegal, but it runs against the societys cultural preferences.
In Brazil, the advertising industry is so powerful that any attempt to create a comparative
advertisement has been challenged and stopped. Often, international consumers not only dislike the
advertisements but often transfer that dislike to the company sponsoring the ad.The comparative message
strategy can be beneficial if used with caution. The comparison brand must be picked carefully to ensure
consumers see it is a viable competing brand. Actual product attributes and customer benefits must be used,
without stretching the information or providing misleading information. If there are actual differences to
compare, then comparative advertising works well. If the comparisons are all hype and opinion, with no
substantial differences, comparative advertising does not work as well.
If the comparison is misleading, the Federal Trade Commission (FTC) may step in and investigate.
The largest number of complaints that the FTC hears are about potentially misleading comparison
advertisements.
In general, comparing a low-market share brand to the market leader works well,because viewers
concentrate more carefully on the content and message of the ad. On the other hand, comparing a high-
market share brand with another high-market share brand is often not effective. In these cases, a better
strategy may be to simply make the comparison without naming the competitor.
Affective Strategies
Affective message strategies invoke feelings or emotions and match those feelings with the good,
service, or company. Such ads are prepared to enhance the likeability of the product, recall of the appeal, or
comprehension of the advertisement. Affective strategies elicit emotions that, in turn, lead the consumer to
act, preferably to buy the product, and subsequently affect the consumers reasoning process. An emotion
such as love can be used to convince consumers that a product such as Cheerios is a superior breakfast
cereal for loved ones. The consumer group is then led to believe Cheerios is a rational choice because the
companys advertisements mention the cereals positive effects on cholesterol levels. This approach is
demonstrated by the advertisement for Cheerios in this section. Three generations of a family in the picture
combined with the words Your heart has better things to do than deal with heart disease. Family memories
and emotions combine with the product feature of being a heart-smart cereal. Affective strategies fall into
two categories: (1) resonance and (2) emotional.
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Resonance advertising attempts to connect a product with a consumers experiences to develop
stronger ties between the product and the consumer. The use of music from the 1960s takes baby boomers
back to that time and the experiences they had growing up. Any strongly held memory or emotional
attachment is a candidate for resonance advertising.
Emotional advertising attempts to elicit powerful emotions that eventually lead to product recall
and choice. Many emotions can be connected to products, including trust, reliability,friendship, happiness,
security, glamour, luxury,serenity, pleasure, romance, and passion.Affective strategies are a common
approach to developing a strong brand name. When an advertisement gets you to like a brand and have
positive feelings for a brand, then the hope is that you will also purchase that brand.
Conative Strategies
Conative message strategies are designed to lead more directly to some type of consumer response.
They can be used to support other promotional efforts, such as coupon redemption programs, Internet hits
and orders, and in-store offers such as buy-one-get-one-free. The goal of a conative advertisement is to elicit
behavior. A conative strategy is present in any television advertisement for music CDs that seeks to
persuade viewers to call a toll-free number to purchase the music. These ads typically encourage quick
action by stating that the CD cannot be purchased at stores and is available for only a limited time.
Action-inducing conative advertisements
create situations in which cognitive knowledge of the product or affective liking of the product may
come later (after the actual purchase) or during product usage. For instance, a point-of purchase display is
designed (sometimes through advertising tie-ins) to cause people to make impulse buys. The goal is to make
the sale, with cognitive knowledge and affective feelings forming as the product is used.
Promotional support conative advertisements are used to support other promotional efforts. Besides
coupons and phone-in promotions, a company may advertise a sweepstakes that a consumer enters by filling
out the form on the advertisement or by going to a particular retail store.Cognitive, affective, and conative
strategies can be matched with the hierarchy of effects. The hierarchy of effects model suggests that
consumers pass through a series of stages, from awareness to knowledge, liking,preference, conviction, and
finally to the purchase.
F I G U R E 7 . 2
The Hierarchy of Effects Model, Message
Strategies, and Advertising Components

EXPLAIN EXECUTIONAL FRAMEWORKS AND ITS TYPES.
Creative execution refers to the manner in which an advertising appeal is carried out or presented.
Particular advertising appeal can be executed in a variety of ways and this means of execution can be
applied to a variety of advertising appeals .The impact of the message depends not only on what is said but
also on how it is said. Any message can be presented in different execution styles. Message execution can be
decisive.
An executional framework defines how the ad is structured. Executional frameworks get the interest,
create the desire for the good or service, and motivate to purchase it.
Types of executional frameworks
1. ANIMATION
This technique uses animated characters or scenes drawn by artists or on a computer.
Animation is often used as an execution technique for advertising targeted at children.
2. SLICE OF LIFE
This type of execution is often based on a problem/solution type of format
The ad attempts to portray a real-life situation involving a problem, conflict or situation
consumers may face in their daily lives
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The ad then focuses on showing how the advertiser's product or service can resolve the problem
Slice-of-life executions are also becoming very common in business-to-business advertising as
companies use this approach to demonstrate how their products and services can be used to solve
business problems
A slice-of-life framework presents everyday people in an everyday situation, like riding in a car with
friends. Wal-Mart used this kind of execution in a commercial that showed a young family going on
vacation. The bored kids torment each other in the minivan until they finally arrive in Orlando. The title card
then explains what youve seen: Wal-Mart saves the average family $2,500 a year. What will you do with
your savings? The value proposition is clear: shopping at Wal-Mart throughout the year will save you
enough money for a vacation. The spot ends with the slogan: Save money. Live better.
3. DRAMATIZATION
This execution technique creates a suspenseful situation or scenario in the form of a short story.
Dramatizations often use the problem/solution approach as they show how the advertised brand can help
resolve a problem
4. STRAIGHT - SELL OR FACTUAL MESSAGE; Informative
This type of execution relies on a straightforward presentation of information about the product or
service such as specific attributes or benefits
5. SCIENTIFIC/TECHNICAL EVIDENCE
A variation of the straight sell where scientific or technical evidence or information is presented in
the ad to support a claim. A scientific framework uses research and evidence to show the brands superiority
over other brands. This executional style is popular with pharmaceuticals or with food products or beauty
products that distinguish themselves in terms of their health benefits.
6. DEMONSTRATION
This type of execution is designed to illustrate the key advantages or benefits of a product or service
by showing it in actual use or in some contrived or staged situation
A demonstration framework shows the product in use to illustrate its performance and effectiveness.
Television and video are the best media for demonstrations. This framework is a favorite for cleaning
products of all kinds (household, laundry, automotive) and to showcase the unique benefits of traditional
products. Just think about all those crazy gadgets you see on TV infomercialsIt slices, it dices, it washes
your car.
7. COMPARISON
This type of execution involves a direct or indirect comparison of a brand against the
competition.
8. TESTIMONIALS
Advertisers present their advertising messages in the form of a testimonial whereby a person speak
on behalf of the product or service based on his or her personal use of and/or experiences with it Using a
spokesperson/testimonial framework, a man on the street or a celebrity praises the product or service. The
spokesperson who endorses the product need not be famous. A testimonial features an everyday consumer to
whom the target audience can relate. This representative consumer praises the product or describes his
experience with it. The framework implies that if the product worked for this person, it will work for you.
9. LIFESTYLE FRAMEWORK
A lifestyle framework shows how the product fits into the life. For example, the Dennys Always
Works campaign emphasizes that the nations largest full-service family restaurant chain is open twenty-
four hours and has a variety of meal choices that meet a range of unique dining needs. Each TV commercial
opens with a consumer describing why Dennys fits perfectly into his or her life. The ads are shot on a
striking yellow background with simple, fun animation that accents what the person is saying. An actor
portraying a Dennys guest customer speaks, and then the spot closes with a close-up of delicious food
footage. To show different lifestyles, one of the fifteen-second spots opens on a frazzled mom who is
amazed that Dennys breakfasts can fill up even her teenaged boys. I didnt think that was possible, she
says. Another fifteen-second spot features a young twenty-something guy saying how Dennys extends his
late night fun, because after the club scene winds down he can still get great food at Dennys.

10. Star Power: PERSONALITY SYMBOL

This type of execution involves the use of a central character or personality symbol to deliver the
advertising message and with which the product or service can be identified.The personality symbol
can take the form of a person who is used as a spokesperson, animated characters or even animals

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Framework is effective because celebrities embody cultural meaningsthey symbolize important

categories such as status and social class (a working-class hero, such as Peter Griffin on Family
Guy), gender (a tough woman, such as Nancy on Weeds), or personality types (the nerdy but
earnest Hiro on Heroes). Ideally, the advertiser decides what meanings the product should convey
(that is, how it should position the item in the marketplace) and then chooses a celebrity who
embodies a similar meaning. The products meaning thus moves from the manufacturer to the
consumer, using the star as a vehicle.

11. Spokes characters
Celebrities can be effective endorsers, but there are drawbacks to using them. As we previously
noted, their motives may be suspect if they plug products that dont fit their images or if consumers begin to
see them as never having met a product they didnt like (for a fee). They may be involved in a scandal or
upset customers, as when the Milk Processor Education Program suspended Got Milk? ads featuring
Mary-Kate and Ashley Olsen after Mary-Kate entered a treatment facility for an undisclosed health issue.
For these reasons some marketers seek alternative sources, including cartoon characters and mascots.
After all, as the marketing director for a company that manufactures costumed characters for sports teams
and businesses points out, You dont have to worry about your mascot checking into rehab. And
researchers report that spokescharacters like the Pillsbury Doughboy, Chester the Cheetah, and the Snuggle
Bear do in fact boost viewers recall of claims that ads make and also yield higher brand attitude.

12. FANTASY
This type of appeal is often used for image advertising by showing an imaginary situation or
illusion involving a consumer and the product or service
Cosmetic companies often use fantasy executions although the technique has also been used in
advertising for other products such as automobiles and beer.

EXPLAIN THE ADVERTISING EFFECTIVENESS .
There may be two types of measures :-
i. Direct measure
a. historical sales method
b. experimental control :-
1. before-after with control group design
2. multivariable experimental design
ii. Indirect measure
a. Exposure to advertisement
b. Attention or recall of advertising message content
c. Brand awareness
d. Comprehension
e. Attitude change
f. Action
Direct measure of advertising effectiveness: - Under direct measure, a relationship between advertising
and sales is established. A comparison sales of two periods or two markets may be done and the
corresponding changes may be noted.
Following are the methods:-
a. Historical sales method:-
The effectiveness of past advertising can be measured by undertaking a multiple regressional
analysis of advertising expenditure and sales over several time periods. It would show how the changes in
advertising expenditure have a corresponding change in sales volume.
This technique estimates the contribution that advertising has made to explaining in a correlational
manner rather than a casual sales, the variations in sales over the time periods covered in the study.
However this method is only a post test measure of advertising effectiveness and is not applicable to
pre testing.
b. Experimental control:-
In this method, a causal relationship between advertising and sales is established. This method is
quite expensive, yet it is possible to isolate advertising contribution to sales. Moreover it can be done as a
pretest to aid advertising in choosing between alternative creative designs, media schedules, expenditure
level or some combination of these advertising decision areas.
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The methods to do this are:-
i. Before after with control design: - This classic design uses several test and control cities. In this
design two types of cities are selected. Cities in which advertising campaigns are affected may be named as
test cities and other cities may be called control cities.
First of all the normal sales level is calculated in both the cities prior to the advertising campaign. Then
the advertising campaign is presented to the test city and not in the control city. The effect of advertising
campaign can, then, be measured by subtracting the amount of post campaign figure of sale from the
precampaign sale figure in test cities. The difference is due to advertising as all other factors remain same. In
the control city the difference would be due to other factors than advertising. By subtracting the difference in
control city and test city, a tolerably accurate estimate can be gathered of the effect of advertising.
ii. Multivariable experimental designs: - The before after with control design only tells the effect of
advertising on sales and does not tell anything about the success of the campaign itself. In this design, for
any single medium, eight possible geographic areas have been exposed and eight has not been exposed to
The advertisement. Thus in this experimental model it is possible to evaluate how each individual medium
behaves alone and in all possible combinations with other media. This type of factorial model is capable of
measuring the effectiveness of all combinations of media used as well as four different levels of
advertising expenditure. It is a very efficient design. However, it is very complex and the cost involved
makes it impractical for all except very big advertisers.
Indirect Measures: - As it is very difficult to measure the direct effect of advertising on companys
profits or sales, most companies rely on indirect measures. These measures include all other factors such as
customer awareness, or attitude or customer recall of advertising message. The assumption of these
measures is that favorable change in customer awareness, attitude and recall will lead in some way or the
other to the attainment of greater sales and profits or whatever is the primary object of the marketing and
corporate strategy.
Following are the various indirect measures:
a. Exposure to advertisement: - In order to be effective, the advertisement must first gain exposure.
The management is concerned about the target audience who sees or hear the organization message set in
the advertisement.
An idea of exposure is sought by examining the circulation or audience data which reveals the no of
copy of the magazine, newspaper etc are sold, the no of people who pass the bill boards or the no of people
who switch on the television and radio at various points of time.
This data will be further classified by such variables as the age, income, occupation etc. Another
method to estimate the target audience is through readership or listenership survey in which interviewer
asks the listener or reader whether they have read or viewed the advertisement.
b. Attention or recall of advertising message content :- This is one of the widely used measures
of advertising results. Under this method, a recall of the message content among a specified group of
prospective customers is measured within 24 hours of the exposure of advertisement.
Attention value is the cheif quality of advertising copy. Unless they attract the attention of customers,
advertising cant be effective. There are two methods to do this :
Pretest evaluation :- It is done in laboratory setting. The consumer reads, listens or hears the
advertisement and then researcher asks questions regarding the advertisement just to test the recall and then
evaluate it
Post test method :- The customers are asked question after the advertisement has been run to indicate
the recognition or recall
c. Brand Awareness :- In this method it is assumed that there is a direct relationship between
the advertisement and the awareness of brands. But the major criticism is that brand awareness is not the
direct result of the advertisement. It is also effected by many other factors.
d. Comprehension :- The information provided to a customer about a product through
advertisement is not complete unless they comprehend the message. Various tests for evaluating
comprehension are available :-
Recall test :- an indicator of comprehension as they recall only what they comprehend
Ask questions :- to ask questions how much they comprehend a message that they have already seen
or heard, ask customers from time to time what they think of the new commercial
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e. Attitude Change :- Since the advertisement influence the state of the mind of the audience towards
a product, service or organisation, the results are often measured in terms of attitude among groups
exposed to advertising commercial.
This may be a pretest or post test. The measuring instrument normally contains 15-20 scales. Other
methods are recall and enquiries. The assumption underlying this method is that consumers generally recall
or inquire about what they prefer or to which they have a favorable attitude
f.Action:-The action or intention to take an action may be measured on the intention to buy measuring
instrument. Under this type of measure, consumers are asked to respond why they are interested in
purchasing the product or the brand.
The classification and analysis of responses will show the extent of intention of consumer towards the
action they had in mind about the product and are indicative of expected future purchasing activities.
Copy Testing:-
It is a tool involving a procedure where the effectiveness of an advertisement is measured before it
appears in its final form, during and after its exposure to the audience to determine whether and to what
extent, it has accomplished its assigned task.
Methods or techniques of copy testing :- 1. Pre testing
2. Post testing

1(i) Consumer Jury Survey :- In this method, alternative advertisements are exposed to a sample
or jury of prospects and their opinions and reactions are secured. The test is designed to learn from a
typical group of prospective customers gathered in one place or a sample of prospects who are
independently, visited by interviewers or contacted by mail, their preference for one advertisement over
the other or for several advertisements out of a group. The juror then ranks the advertisement in order of
their likes and dislikes. These ranks indicate the action provoking power of the advertisements.
This method separates the weaker advertisements from the stronger one and is quick,
economical check on the subjective judgement of management and its specialists.
(ii) Coupon Return Analysis :- Sometimes advertisements contain certain offers. The readers have to
return this coupon to the dealer concerned. On the basis of the returned offers, the themes and various
elements are measured. The devices used for this type of analysis are :-
(a) Open Coupon offer of a standard premium :- It is generally an offer of a free sample of the
product either free or along with some other product of the firm.
(b) Hidden offer technique :- A premium offer is burried nearly at the end of the advertisement. A
reader is thus attracted to read the entire advertisement.
(c) Split run technique :- The media cooperates with the advertiser to run two different copies of
the same advertisemnet to appear in systematic rotation throughout the entire circulation. By means of
coupon return analysis or other basis, which advertisement pulls best can be determined.
(iii) Sales Area or Local Area Test :-The advertiser publishes different advertisement in different local
markets that are similar in characteristics and they collect sales data from retailers, wholesalers or
consumers. This method is not employed frequently due to difficulty in controlling the many variables
(iv) Controlled Experiments :-
(a) Sign boards and display materials are placed at the point of sales. Different advertisements
containing different themes or messages are displayed in different group of stores, the effectiveness is
measured by the resulting sales.
(b) To make an attempt to sell the product from door to door canvassing different messages to the
customers. The percentage of successful sales indicate the value of each theme.
(c) Distribute handbills with coupons offering a cash discount. Each handbill contains a different
advertisement for the product. The redemption of coupon may be the indication of sales effectiveness
(v) Storyboard Test :-
The storyboard prepared for television advertising is tested before it is used. The important part of the
advertising is accepted for telecasting. The mood of the audience is important for visualising a television
commercial. This should be done by way of testing. The anteroom trailor method is used to test the
commercial. The anteroom contains magazines, newspapers, distractions and television recorded
programmes. After the commercial has been shown, the audience is taken to another room for an interview
and assessment.
(vi) Laboratory Test :-
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The respondents responses are recorded and special laboratory tests are conducted to examine the effect
of advertisements. The laboratory test is used to measure awareness, attention, desire and retention etc.
The respondents are placed in laboratory situation and are asked to explain the measurements regarding the
effectiveness of the advertisement. The respondents reply under conditions which are less than normal. For
e.g. the respondents are taken to a theater, mock up supermarket or some other place for experimental
purposes.
(vii)Tachistoscope :-
The tachistoscope is a projector that can project objects on to a screen at rates so fast that the viewer cannot
detect the message. It is slowed down to a level where the message can be percieved easily. The
respondents should understand and appreciate the message, interesting words, slogans, headlines etc. They
can be easily seggregated from the less interesting message.This process can separate the messages which
are more effective from those which are less effective. The assumption behind the tachistoscope is that the
quicker an advertisement is perceived, the more effective it is carrying the message.
(viii)Psychogalvanometer :-
The psychogalvanometer is a mechanical device that measures the amount of perspiration. The change in
perspiration rate in a respondent is supposedly indicative of a change in emotional reaction. The psycho
galvanometer measures a respondents reactions to new records and slogans. Electrodes are attached to his
palm to detect changes in electrical resistance arising from perspiration. It assumes that the body
response is the outcome of product advertisement. The main objective of an advertisement is to attract
attention to the product which is reflected by the galvanic skin response. It should not, however, be
concluded that greater tension reflects the greater success of the advertisements.
(ix)Eye Camera :-
The eye camera measures the viewing behaviour of the audience. It records the activity of the eye by its
movements. The audience is asked to look at a series of pictures on the screen while being unaware that
their eye actions are being photographed. The eye movements are recorded by a video camera. It shows
what the respondent sees. If a commercial is interesting and if he is attracted by it, his eyes will be fixed on
that. The respondent may be asked some questions about the advertisement.
(x)Pupil Dilation :-The change in the pupil of eye follows different advertising stimuli. The size of the
pupil changes as people see different things. It becomes wider as greater interest is aroused. The pupil
shrinks if the eye is not interested. A pupilometer is used to measure the size of the pupil. It records the
dilation which is involuntary and measures the interest shown by the respondents.
(xi)Depth Interview :-Depth interview is concerned with getting the respondent to react freely to the
brand, organisation and product. By suitable questions, the interviewer brings out his unconscious reactions
to the surface. The reactions to communication stimuli are noted to bring out the facts for the advertisers.
Depth interviewing involves non structured question
2. Post Test Techniques :-
(i) Recognition Test :-
It determines the readership of the advertisement in a newspaper and magazines. The interviewer locates
the readers of a particular issue. They then go through the magazine page by page with the respondent
indicating those advertising elements which he or she recognizes as having read. These measurements may
also seek to obtain qualitative data.
(ii)Recall or Impact test :-
This test is designed to measure the impression of readers or viewers of the advertisements. The measures
of interest would be obtained by interviewing the readers/viewers, days after the advertisement is
published. The performance of one advertisement is then evaluated against all
others.
(iii)Psychological Analysis :-
(a) Test of readability and comprehension :-
Through a series of penetrating questions, the ease of readability and comprehension is determined in
advance of publication. To what extent the reader has gone through the advertisement can be determined.
(b) Test of believability :-
A scale technique is generally employed to measure the credibility by putting several statements or
product claims before the consumer and are rated by them. The statement that gets the highest priority
votes is the most effective one.
(c) Attitude Test :-
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Typical consumers are exposed to a sample of advertising messages, either printed or oral. the interviewer
then asks a series of penetrating questions to determine the attitude produced by these various messages.
The researcher looks especially for elements in the advertisement which arouses psychological
hostility.
(d) Triple Hostility Tests :-
The extent of recall of the consumers associations with the product, the brand name and copy theme is
determined. The test is useful only when the advertising features a specific theme or slogan which the
reader may remember. This is also known as theme penetration.
Audience Perception :- Personal interpretation of what one sees, hears, smells, i.e. the reception of
sensory stimuli and conscious or unconscious applications for them to form an acceptable interpretation of
their meaning is called perception. Individuals are the most dominating in the final response which may
be obtained from advertising communication. Douglas, Field and Tarpey have enumerated the following
factors which affect the perceptual process of human beings:-
(a)Structural Factors :-The environmental stimuli and the physical nature of the individual. For e.g. the
ad for energy , Jeevantone etc will be perceived differently by a physically strong and weak person.
(b) Mental Set :- A readiness to perceive in a certain way and perhaps to react in a pre determined way
to the perception. For e.g. use of hair dyes.
(c)Expectation :-A tendency to expect that a stimulus situation will exhibit certain characteristics,
for e.g. the toffees and choclates ads will always feature children or young people.
(d)Past experience and primary :-A tendency to perceive or interpret a new experience on the
basis of a previous experience ; A tendency to organise our perception of of later stimulus situations on the
basis of initial responses.
(e)Inner needs :-The internal and psychological needs of the individual affects the way he perceives
the world. Need arises when the person misses something
(f)Role :-The role an individual plays in a situation and his conception of that role tends to shape his
perception of the situation.
(g)Status :-People of different status may sometime perceive the same product or company in
different ways.
(h)Mood :-Our moods affect the way we perceive situations, the elements on which we concentrate
and the elements we ignore as well as our evaluation of the significance of this situation.
(i)Perceptual Constancy :-We tend to perceive things in a way we are accustomed to perceiving
them, even though the stimulus changes ; we thus perceive a relatively stable image of " reality " in a world
where things are constantly changing.
(j)Selectivity :-We tend to select from a stimulus situation those elements that interests us or are
important to us and ignore the rest of the stimulus. This does not happen consciously.
(k)Levelling and Sharpening :-In remembering things we tend to simplify them and recall a
relatively general and meaningful pattern that is consistent without inner needs by dropping details and
simplifying or sharpening others.
(l)Cultural and group Factors :-Group attitudes towards skin color, companies and products
spread through a culture or subculture and influence the way people perceive.
Perceptual Mapping :-
Perceptual mapping techniques identify the underlying dimensions that differentiates consumer perceptions
of products and the position of existing products on the dimensions.
Perceptual space map shows the perceived relative positions of products along different dimensions. To
do this, the attributes or dimensions of a product are identified by qualitative research like depth interviews.
The consumers are then asked to rank each brand along each of the dimensions identified. Statistical
techniques are used to reduce a very large no of dimensions to a few significant dimensions.
Perceptual map shows how buyers perceive various products in the market, based on the most
important product attributes. The two dimensions of the map represent key product attributes. Judging from
this map, we can see that an opportunity might exist for a product that could be positioned in some other
different manner.
A perceptual map will help the advertiser and advertising agency in trying to look at the product/service
to be advertised from the angle of the customers. Product characteristics by themselves may not be an
adequate base for effective advertising communication. Understanding the consumers mind in addition to
the segmentation framework can be instrumental in making the advertising process more efficient.
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Constituent units of target audience apparently use multiple criteria, and possibly, in different sets and
sequences in interpreting advertising messages. These have to be integrated into advertising communication
models in order to get a balanced perspective of how advertising works.
Beating the ad clutter
Use repetition
Variability Theory
Use multiple mediums.
Create ads that gain attention any dangers of this?
Create ads that relate to the target audience
An advertisement does not exist in isolation; it typically appears in a medium (e.g.TV) that contains
its own programs and other non-programming content (such as public service announcements), as
well as numerous other advertisements.Some authors define clutter in terms of all non-programming
content (Brown and Rothschild, 1993). Others define it only in terms of advertising.
Clutter has been addressed sparingly in advertising research (Brown and Rothschild, 1993), even
though practitioners have voiced much concern over the cluttered advertising environment. In
general, it has been found that a higher level of advertising clutter decreases viewer attention,
memory and recognition, and cognitive responses (Webb, 1979; Webb and Ray, 1979; Zhao, 1997).
The impact of the level of clutter, however, is less clear-cut when it comes to attitude and purchase
intention (Keller, 1991; Webb and Ray, 1979; Zhao, 1997). Perhaps the best explanation for
advertising clutter effects is that it creates information overload. People are information processors
with limited capacity, therefore clutter will reduce the likelihood that any given message will be
processed or remembered.2 Another important factor that may account for clutter effects is that
seeing too many ads may cause irritation, which will negatively influence evaluation of succeeding
ads.
Kent (1993) content analyzed the competitive clutter present in both daytime and prime-time
network television. He found that on average 31 ads were shown during one hour of daytime TV and
20 ads were shown during one hour of prime-time TV. In the most highly cluttered hours, about half
of the ads aired were competing ads. Thus, advertising theories seeking empirical support in a non-
cluttered environment may lack external validity.
Reference :
1. I ntegrated Advertising, Promotion, and Marketing Communications, Third Edition, by Kenneth
E. Clow and Donald Baack.
2. Www.slideshare.com


UNIT - V
EXPLAIN THE MEANING OF SALES PROMOTION AND TRADE PROMOTION
OBJECTIVES.
SALES PROMOTION: Sales Promotion: - It is an action which increases the volumes of sales .
It applies to assorted, non recurrent & somewhat extra- ordinary non personal selling efforts.
Consumers who are faced with many choices sometimes need an extra incentive to buy a particular product,
and retailers some timer need a special inducement to carry the product. This extra incentive is provided by
using sales promotion.
Sales promotion can be divided into the following three categories:-
a) Consumer Promotion (Samples, coupons, money refund offers, price offs premiums contest trading
stamps demonstration etc.
b) Trade Promotion (buying allowance, free goods, and merchandise allowances co-operative advertising,
push money, dealer sales contests sales rallies etc
c) Sales force promotion (bonuses, contests, sales rallies etc)

Consumer Promotion objectives :- The most common objectives for consumer sales promotion are :-
i) To persuade the consumer to try (and rebuy) a new product:-
Since 80% of the new products launched fail, it becomes absolutely necessary
- to get the target audiences attention
- to give them a reason to try the new product
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- to convince them to continue buying
- Sales Promotion helps in doing this effectively
ii) To convince consumer to stay with the brand :-
since competition is trying to woo away ones consumer, along with persuasion it becomes necessary to
stop the customer from engaging in brand switching activities. To prevent this also becomes one of the
important consumer sales promotion objective
iii) To increase product purchase & usage:-
Another objective is to increase the product purchase & usage so that the customer can be kept out of the
market for similar product & lock out competition as long as it takes customer to use up what they bought
e.g. providing extra quantity free with

the product.
iv) To encourage consumers to buy other products of the same manufacturer:-
Some times, the companies offer one product of their free on purchase of another product of the same
company. This helps in encouraging consumers to buy other products of the same company which
otherwise the consumer may not have bought.
v) To reinforce advertising & marketing efforts for more immediate results.
sales promotion is a part of the overall marketing communication program. Hence it helps in boosting up the
result of advertising & other marketing efforts & also enhances the advertising message, product image,
b) Trade promotion objectives :-
i) To gain distribution :-
Before the product reaches the customer it has to be first put into the shelf of the distributors, be it a new
product, expansion of existing product into new marketing & putting the product into an entirely different
type of store. Sales promotion is used to win over the wholes sales & retailer that sell the product.
ii) To encourage support for a consumer product or a sales promotion
It is also necessary to get the distribution talk about ones product to customer so that an extra push is
provided to the product with the help of sales promotion activities it is possible to get the wholesales /
retailer interested in the product e.g. small gift on a particular amount of sales
iii) To stimulate distributions to raise or lower their inventory level :-
Trade sales promotions are used to persuade the wholesales/ retailer to order high quantities
iv) To strengthen relationship with distribution & sales people :-
When a company has an effective distribution network, its important to keep the competition out of the
pictures by staying in good terms with ones wholesalers & retailers. Trade Sales Promotion can help in
strengthening these relationship, & the same time give sales people the tools they need to sell your product


Importance of Sales Promotion and Limitations of Sales Promotion
Sales promotion tools are effective for the organizations in different aspects like they can be used to
Introduce new products, making existing customers to buy more, Attract new customers,Combat
competition, Maintain sales in off season, Increase retail inventories, Tie in advertising and personal selling,
Enhance personal selling efforts. Beside these advantages, sales promotions have certain limitations as well
like Cannot Reverse Declining Sales Trend, Cannot Overcome, inferior Product, May Encourage
Competitive Retaliation, May Hurt Profit

EXPLAIN THE TRADE PROMOTION TOOLS AND NATURE OF TRADE PROMOTION.
Trade Promotion Tools
Trade promotion can persuade resellers to carry a brand, give it shelf space, promote it in advertising, and
push it to consumers. Shelf space is so scarce these days that manufacturers often have to offer price-offs,
allowances, buy-back guarantees, or free goods to retailers and wholesalers to get products on the shelf and,
once there, to stay on it. Manufacturers use several trade promotion tools. Many of the tools used for
consumer promotionscontests, premiums, displayscan also be used as trade promotions. Or the
manufacturer may offer a straight discount off the list price on each case purchased during a stated period of
time (also called a price-off, off-invoice, or off-list). The offer encourages dealers to buy in quantity or to
carry a new item. Dealers can use the discount for immediate profit, for advertising, or for price reductions
to their customers. Manufacturers also may offer an allowance (usually so much off per case) in return for
the retailer's agreement to feature the manufacturer's products in some way. An advertising allowance
compensates retailers for advertising the product. A display allowance compensates them for using special
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displays. Manufacturers may offer free goods, which are extra cases of merchandise, to resellers who buy a
certain quantity or who feature a certain flavor or size. They may offer push moneycash or gifts to
dealers or their sales forces to "push" the manufacturer's goods. Manufacturers may give retailers free
specialty advertising items that carry the company's name, such as pens, pencils, calendars, paperweights,
matchbooks, memo pads, and yardsticks.

DIFFERENT TYPES OF TRADE PROMOTIONS :-
1) TRADE DEALS :-
This is a short term arrangement in which wholesalers and retailers are encouraged to stock products in
exchange for special discounts, payments or additional merchandise.
Trade deals can be used to precede distribution to stock product for the first time, prominently display a
product, offer promotions that attract consumers or buy more of a product
The trade deals are usually divided into 3 categories
a) Buying allowance
b) Display allowance
c) Slotting allowance
a) Buying allowance :-
It is a payment or discount offered to a distributor to encourage the purchase of a certain amount of
merchandise during a specified period.
There trade deals are combined with consumer sales promotion activities to quickly liquidate the stocks
e.g. 10 cases of goods for the price of 8 goods
1 case of goods free with 10 cases of goods
b) Display Allowance:-
Its a fee paid by the manufacture to the wholesaler / retailer in order to display the goods in a prominent
position in the shop.
It is generally used to support an established product
c) Slotting Allowance :-
It is paid to the wholesales/ retailer in exchange for a slot or position on the store shelf specially for the new
products.
The slotting allowance has to be paid for each & every item in a new product line i.e. separate slot if the
product is being launched in three forms .
EDLP (Everyday low pricing ) :-
Procter and gamble has adopted a policy of everyday low pricing in which they reduce the no of special
pricing deals and provide year round lower prices.
2) Trade contests and incentives :-
The wholesales & retailers are also given sales goals and they are rewarded when they exceed the goals .
Push money Money is paid to the wholesaler/ retailer each time a particular item is sold. But the
drawback is it is not possible to know how many items have been actually pushed by the wholesaler and the
company ends up paying money for each unit of the particular item sold.
Incentives can also be provided to the wholesaler when they are required to provide more shelf space or to
use a special pop display. Here the incentives are paid to reward them for doing the particular tasks .
3) Trade shows :-
This is an event where the manufacturer displays and sells their product to current and potential distributors.
It is possible to meet a large no of customers and prospects in a short period of time during trade show, so it
is a good place to take orders & set up appointments for future sales calls.
A trade show is also a good place to see what the competitors are offering
4) Sales Support :-
It is important to support the efforts of the sales force and the distributors by providing information and
training programs.
Some companies organize periodic sales meetings with the distributors where they discuss sales strategies,
offer sales tips.
These meetings may be scheduled before the biggest selling season or before a new product line is to be in
introduced. These meetings help in building sales and trade commitment. Some companies also organize
dealer training by conducting seminars, distributing training materials and also work with dealers on joint
sales calls.
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5) Cooperative Advertising :-
In these kind of advertising the manufacture pays part of the bill when a local store ad features its products
or when a local store uses the manufacturers prepared ad in print, electronic or out of the home media.
6) Dealer listed Promotion :-
Publicity materials like calendars issued by the manufacturer carries also the names and addresses of
retailers who stock the product or who are operating in the promotion
7) Specialty Advertising :-
It consists of manufacturer using useful, low cost items bearing the companys name and address &
sometimes an advertising message that salespeople give to prospects and customers e.g. ball point pens,
calendars, memo pads, telephone index etc
Evaluation of Results:-
There are three main methods to measure sales promotion effectiveness
a) Sales data :-It involves the use of scanner sales data. OMR scanner are used to find out the no of people
who are influenced by the sales promotion, what they bought before the promotion & how consumers
behaved later towards this brand and other brands .
2) Consumer Surveys:-
It is conducted to learn how many recall the promotion, what they thought of it, how many took advantage
of it and how the promotion affected subsequent brand choice behavior
3) Experiments :-
Sales promotion can also be evaluated though experiments that vary such attributes as incentive value,
duration and distribution of media .e.g. using coupons, using scanner data.This information can than be used
to calculated the increase in revenues that stemmed from the promotion .

EXPLAIN THE MAJOR CONSUMER SALES PROMOTION TOOLS.
Many tools can be used to accomplish sales promotion objectives. Descriptions of the main consumer, trade,
and business promotion tools follow.
Consumer Promotion Tools:The main consumer promotion tools include samples, coupons, cash refunds,
price packs, premiums, advertising specialties, patronage rewards, point-of-purchase displays and
demonstrations, and contests, sweepstakes, and games.





Consumer Sales Promotion Techniques :

Coupons are certificates that give buyers a saving when they purchase specified products.Most consumers
love coupons: Coupons can stimulate sales of a mature brand or promote early trial of a new brand.
However, as a result of coupon clutter, redemption rates have been declining in recent years. Thus, most
major consumer goods companies are issuing fewer coupons and targeting them more carefully.
TYPES OF COUPONS,PROBLEMS AND TACTICS
Most consumers are quite familiar with this form of sales promotion, which offers purchasers price savings
or other incentives when the coupon is redeemed at the time of purchase. Coupons are short-term in nature
since most (but not all) carry an expiration date after which the value may not be received. Also, coupons
require consumer involvement in order for value to be realized. In most cases involvement consists of the
consumer making an effort to obtain the coupon (e.g., clip from newspaper) and then presenting it at the
time of purchase.
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Coupons are used widely by marketers across many retail industries and reach consumers in a
number of different delivery formats including:
Free-Standing Inserts (FSI) Here coupon placement occurs loosely (i.e., inserted) within media, such as
newspapers and direct mail, and may or may not require the customer to cut away from other material in
order to use.
Cross-Product These consist of coupons placed within or on other products. Often a marketer will
use this method to promote one product by placing the coupon inside another major selling product. For
example, a pharmaceutical company may imprint a coupon for a cough remedy on the box of a pain
medication. Also, this delivery approach is used when two marketers have struck a cross promotion
arrangement where each agrees to undertake certain marketing activity for the other.
Printout A delivery method that is common in many food stores is to present coupons to a customer
at the conclusion of the purchasing process. These coupons, which are often printed on the spot, are
intended to be used for a future purchase and not for the current purchase which triggered the printing.
Product Display Some coupons are nearly impossible for customers to miss as they are located in close
proximity to the product. In some instances coupons may be contained within a coupon dispenser fastened
to the shelf holding the product while in other cases coupons may be attached to a special display (see POP
display below) where customers can remove them (e.g., tear off).
Internet Several specialized websites, such as HotCoupons.com, and even some manufacturers
sites, allow customers to print out coupons. These coupons are often the same ones appearing in other
media, such as newspapers or direct mail. In other cases, coupons may be sent via email, though to be
effective the customers email program must be able to receive HTML email (and not text only) in order to
maintain required design elements (e.g., bar code).
Electronic The Internet is also seeing the emergence of new non-printable coupons redeemable
through website purchases. These electronic coupons are redeemed when the customer enters a designated
coupon code during the purchase process.
Cash refund offers (or rebates) are like coupons except that the price reduction occurs after the purchase
rather than at the retail outlet. The consumer sends a "proof of purchase" to the manufacturer, who then
refunds part of the purchase price by mail.
Refund and Rebates
Rebates, like coupons, offer value to purchasers typically by lowering the customers final cost for acquiring
the product. While rebates share some similarities with coupons, they differ in several keys aspects. First,
rebates are generally handed or offered (e.g., accessible on the Internet) to customers after a purchase is
made and cannot be used to obtain immediate savings in the way coupons are used. (So called instant
rebates, where customers receive price reductions at the time of purchase, have elements of both coupons
and rebates, but for our purposes we will classify these as coupons due to the timing of the reward to the
customer.)
Second, rebates often request the purchaser to submit personal data in order to obtain the rebate. For
instance, customer identification, including name, address and contact information, is generally required to
obtain a rebate. Also, the marketer may ask those seeking a rebate to provide additional data such as
indicating the reason for making the purchase.
Third, unlike coupons that always offer value when used in a purchase (assuming it is accepted by
the retailer), receiving a rebate only guarantees value if the customer takes actions. Marketers know that not
all customers will respond to a rebate. Some will misplace or forget to submit the rebate while others may
submit after a required deadline. Marketers factor in the non-redemption rate as they attempt to calculate the
cost of the rebate promotion.
Finally, rebates tend to be used as a value enhancement in higher priced products compared to
coupons. For instance, rebates are a popular promotion for automobiles and computer software where large
amounts of money may be returned to the customer.
Price packs (also called cents-off deals) offer consumers savings off the regular price of a product. The
reduced prices are marked by the producer directly on the label or package. Price packs can be single
packages sold at a reduced price (such as two for the price of one), or two related products banded together
(such as a toothbrush and toothpaste). Price packs are very effectiveeven more so than couponsin
stimulating short-term sales.
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Premiums are goods offered either free or at low cost as an incentive to buy a product, ranging from toys
included with kids'products to phone cards, compact disks, and computer CD-ROMs. A premium may come
inside the package (in-pack), outside the package (on-pack), or through the mail.
Advertising specialties are useful articles imprinted with an advertiser's name given as gifts to consumers.
Typical items include pens, calendars, key rings, matches, shopping bags, T-shirts, caps, nail files, and
coffee mugs. Such items can be very effective. In a recent study, 63 percent of all consumers surveyed were
either carrying or wearing an ad specialty item. More than three-quarters of those who had an item could
recall the
advertiser's name or message before showing the item to the interviewer.
Patronage rewards are cash or other awards offered for the regular use of a certain company's products or
services. For example, airlines offer frequent flier plans, awarding points for miles traveled that can be
turned in for free airline trips.
Point-of-purchase (POP) promotions include displays and demonstrations that take place at the point of
purchase or sale. Unfortunately, many retailers do not like to handle the hundreds of displays, signs, and
posters they receive from manufacturers each year.Manufacturers have responded by offering better POP
materials, tying them in with television or print messages, and offering to set them up.
Contests, sweepstakes, and games give consumers the chance to win something, such as cash, trips, or
goods, by luck or through extra effort. A contest calls for consumers to submit an entrya jingle, guess,
suggestionto be judged by a panel that will select the best entries. A sweepstakes calls for consumers to
submit their names for a drawing. A game presents consumers with somethingbingo numbers, missing
lettersevery time they buy, which may or may not help them win a prize. A sales contest urges dealers or
the sales force to increase their efforts, with prizes going to the top performers
Other Sales Promotional Tools:
i) Competition & free prize draws :- Prize contest depend for success on the value of originality of the
prize & perhaps on the additional chances of winning offered by consolation prizes. The entry requirement
can be proof of purchase such as token or entry coupon detached from the pack, extra entries requiring extra
purchase.
Contests should be organized with adequate time for proper adjudication, and there should be publicized
announcement of results
The nature of prize should also be given proper consideration cash prizes may suit all whereas holiday trips
or motor car may not suit all .
2) Self liquidating premium offers :-
It means special lines are bought by the promotion and offered at premium (i.e. less than normal retail
prize)
3) Mail in free offers :-Here, no payment is required, only proof of purchase or perhaps a token payment
to cover postage and packing
4) Free gift with goods :-
The gift is usually attached to the product e.g. with toothpaste, a toothpaste is given free.
Alternatively, the customer may have to request the gift from the retailer eg. Free bottle with refill pack of
boost.
5) Picture Cards:
Picture cards of sports stars or cartoons or film stars are inserted in the pack of goods .The customer goes for
repeat purchase,if he/she wants to collect them.
6)Gift coupons :
The customers are required to collect a certain no of gift coupons in exchange of which they receive some
gifts. For that they have to go for a repeat purchase.
7) Cash dividends:
Manufacturer gives cash refunds against the collection of tokens with a cash value. It also includes repeat
purchase.
8)Matching halves:
Here coupon halves are given with purchase and certain matching halves have claimable cash values.
9)Cash premium vouchers/coupons:
These can be given at the selected retail stores to avail price reduction. They may be printed in press
advertisements, delivered door-to-door or printed on packs as money off the next purchase.
10)Cross couponing offers and other schemes:
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This is a popular co-operation scheme whereby an on-pack coupon or token enables the customer to buy
another product not necessarily made by the same manufacturer at a reduction price
11)High street redemption schemes:
Here a product carries a premium coupon entitling the customer to a discount at a named store. This is liked
by the store because the discount can led to other purchase.
12)Charity promotions:
The product packet carries tokens which could be collected to raise funds for charity.
13)Jumbo or multiple packs;
A no of items are packed together or the container is extra large and offered at a special rate .It is a
economical way of both packing and buying such products and ensures that the customer is well stocked
with the product and may thus become a habit buyer .These are mostly introduced during festival seasons.
e.g. a pack of pencil ,pen, eraser, sketch pen, sharpener etc.
14)Banded packs:
It is a combined pack of more no of items like a pack of 10 bars of chocolates at the prize of 8 bars.
15)Flash packs:
Special offers or money-off offers are flashed i.e.is printed on the wrapper or carton, a sure way of inducing
impulse buying.
This is one of the most popular sales promotion schemes and very easy to operate, having immediate appeal
to the impulse buyer.
16)Promotional games:
This includes scratch cards revealing a possible cash claim which promoter will redeem.
e.g. TTK prestige pressure cooker has come out with blow the whistle contest .Where when the customer
blows the whistle some paper comes out with a gift printed on it.
17)Advertorials:
A newspaper or magazines provides an editorial feature and makes readers a special introductory offer,
specially for new products.
18) Meet the celebrity :-Contests are organized where the winners get the chance to meet a particular
celebrity or even spend a day with the celebrity
Samples are offers of a trial amount of a product. Sampling is the most effectivebut most expensive
way to introduce a new product. Some samples are free;for others, the company charges a small amount to
offset its cost. The sample might be delivered door-todoor, sent by mail, handed out in a store, attached to
another product, or featured in an ad.Sometimes,samples are combined into sample packs, which can then be
used to promote other products and services.



SAMPLES AND FREE TRIALS

Enticing members of a target market to try a product is often easy when the trial comes at little or no cost to
the customer. The use of samples and free trials may be the oldest of all sales promotion techniques dating
back to when society advanced from a culture of self-subsistence to a culture of trade.
Sampling and free trials give customers the opportunity to experience products, often in small
quantities or for a short duration, without purchasing the product. Today, these methods are used in almost
all industries and are especially useful for getting customers to try a product for the first time.
Free Product
Some promotional methods offer free products but with the condition that a purchase be made. The
free product may be in the form of additional quantities of the same purchased product (e.g., buy one, get
one free) or specialty packages (e.g., value pack) that offer more quantity for the same price as regular
packaging.
Premiums
Another form of sales promotion involving free merchandise is premium or give-away items.
Premiums differ from samples and free product in that these often do not consist of the actual product,
though there is often some connection. For example, a cellphone manufacturer may offer access to free
downloadable ringtones for those purchasing a cellphone.

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DEFINE BUSINESS-TO-BUSINESS SALES PROMOTIONS
The use of sales promotion is not limited to consumer products marketing. In business-to-business markets
sales promotions are also used as a means of moving customers to action. However, the promotional
choices available to the B-to-B marketer are not as extensive as those found in the consumer or trade
markets. For example, most B-to-B marketers do not use coupons as a vehicle for sales promotion with the
exception of companies that sell to both consumer and business customers (e.g., products sold through office
supply retailers). Rather, the techniques more likely to be utilized include:
price-reductions
free product
trade-in
promotional products
trade shows

Of the promotions listed, trade shows are by far the mostly widely used sales promotion for B-to-B
marketers.
Business Promotion Tools
Companies spend billions of dollars each year on promotion to industrial customers. These business
promotions are used to generate business leads, stimulate purchases, reward customers,and motivate
salespeople. Business promotion includes many of the same tools used for consumer or trade promotions.
Here, we focus on two additional major business promotion toolsconventions and trade shows, and sales
contests.Many companies and trade associations organize conventions and trade shows to promote their
products. Firms selling to the industry show their products at the trade show. Trade shows also help
companies reach many prospects not reached through their sales forces. About 90 percent of a trade show's
visitors see a company's salespeople for the first time at the show. A sales contest is a contest for salespeople
or dealers to motivate them to increase their sales performance over a given period. Sales contests motivate
and recognize good company performers, who may receive trips,cash prizes, or other gifts. Some companies
award points for performance, which the receiver can turn in for any of a variety of prizes. Sales contests
work best when they are tied to measurable and achievable sales objectives (such as finding new accounts,
reviving old accounts, or increasing account profitability).
EXPLAIN THE NATURE OF GLOBAL CONSUMER PROMOTION
Generally advertising is used primarily for low cost, mass volume consumer products. Products like
fertilizers, canned and fresh produce and tobacco - all products which are used by end consumers - are the
subject of heavy promotion. In intermediate products like timber, leather and cotton the advertising may be
more limited in nature due to the fewer end purchasers of the raw material. Until recently, per capita GNP
and advertising were directly correlated, due to the more widespread availability of media and higher
incomes, giving a larger potential market for products. This is no longer the case. Optimal levels of
advertising occur where the advertising/sales overseas effect is equal to the marginal advertising
expenditure. The problem is in estimating the levels of each.
Global expenditure on advertising is believed to be more than US$ 200 billion, with the US the largest
spender and Japan next. Individual companies like General Motors and IBM are each spending billions on
advertising per annum. Worldwide, although less in Africa, the average advertising expenditure as a
percentage of GNP is around 1.4% The major expenditure is on the television medic, the USA spending
over US$ 30 billion on this medium. In many African countries radio is widely used, especially where
television is not available, as in Malawi. Global programmes like CNN news and MNet television have
dramatically increased the global advertising and direct selling possibilities via satellite. Print advertising
continues to be a major medium in Africa.
Sales Promotion
Sales promotion refers to any consumer or trade program of limited duration that adds tangible value to a
product or brand.
Below the Line
Objectives
Entice consumer purchase or trial of product or service
Make consumer aware of retail premises
Encourage shop owners to utilise point-of purchase displays
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Encourage retailer to carry the product.
Methods
Foreign Catalogue
Company Published Magazine
Samples
Trade Fairs and Exhibitions
Coupons
Promotion and the Internet
Internet as a Method of Communication
For many years consumers typically became aware of sales promotions in passive ways. That is, most
customers obtained promotions not through an active search but by being a recipient of a marketers
promotion activity (e.g., received coupons in the mail). The Internet is changing how customers obtain
promotions. In addition to websites that offer access to coupons, there are a large number of community
forum sites where members share details about how to obtain good deals which often include information on
how or where to find a sales promotion. Monitoring these sites may offer marketers insight into how
customers feel about certain promotions and may even suggest ideas for future sales promotions.
Complex
Targeting
On-line Advertising
Need for Technology
Electronic Delivery
Sales promotions are delivered to customers in many ways such as by mail, in-person or within print media.
However, the Internet and mobile technologies, such as cellphones, present marketers with a number of new
delivery options. For examples, the combination of mobile devices and geographic positioning technology
will soon permit marketers to target promotions to a customers physical location. This will allow retailers
and other businesses to issue sales promotions, such as electronic coupons, to a customers mobile device
when they are near the location where the coupon can be used.
Reference :
Marketing Management Philip Kotler.
www.Marketingteacher.com
www.slideshare.com

( Unit V Completed )