Advertising

It is a paid form of a non personal presentation of an idea,

goods or services by an identified sponsor to reach out
maximum no .of audiences.

The mass media would include print media, direct mail,
audio visual media, boards, hoardings etc.

Advertising is used when sponsors want to communicate
with a no. of people who cannot be reached economically
and effectively through personal selling.
Benefits of Advertising
Creates Awareness
Creates Interest
Reinforcement because the message is repeated.
Increases sales
Helps in creating the demand
The company can protect its market share or position by
responding to the competitors strategy.
Cokes punchline in 1996 was The official softdrink of the
world cup
Pepsi said Nothing Official About it.
Benefits of Advertising
Can reach many customers simultaneously. i.e. it has a mass
appeal.
Excellent for creating brand image.
High degree of flexibility and variety of media to choose
from.
Can accomplish different types of promotion objectives.

Demerits
Many consumers reached are not potential buyers
Advertising is often quickly and easily screened out by
consumers.
Adds can be expensive and dramatize the concept.



Developing the Advertising Message
A successful advertising message should have
the following:
Meaning: Message should be relevant, it should
be meaningful.
Distinctive: Unique
Believable: Convince the customers about the
product.
Developing an advertising Programme
Identify Target Audience
Target could be mass markets. Ex Soaps
Advertisements of high priced products ex
cars should be directed towards status
consious, high income group customers.
Objectives Of Advertising Campaign
The objective of advertising campaign is to
achieve a specific communication task for a
specific target audience during a specific
period of time.
Inform:
Its existing and potential customers
Communicate benefits of products
Inform about services offered
Inform of Price Change
Correct the false impression about the product/company.
Persuade
Special offers
Discounts
Personal visits
Encourage switch overs
Remind
Remind for future
Remind Buyers from where to buy
Retain Product in customers perception.
Creating Emotions
Advertisements try to create an emotional bond.
Generate effective response from the brand using
emotions, moods, feelings, love and compassion.
Ex Cadbury
Humour Appeal- Cherry Blossom, Charlie Chaplin
Fear Appeal-Saffola , LIC ads
Satire and Cartoons: Kit Kat, Amul


Sales promotion means any steps that are
taken for the purpose of obtaining or
increasing sales.

These are incentives that are offered by a firm
to the buyers.

Each of these incentives is designed to
achieve a specific action such as purchase, or
a store visit or an inquiry about a product or
service.
To add value, to add visibility to normal
selling, to add motivation to the routine
selling we conduct sales promotion activities.

To increase the impact and visibility of
advertising, we add certain incentives to it
and so we say that sales promotion co-
ordinates with advertisements.
Print Advertisements
It comprises of the headline, the body copy and the
Illustrations.
Readers first see the illustration, then read the
headline and then the body copy. An advertisement
should follow the same sequence.
The headline might promise a benefit, deliver news,
offer a service or identify a problem.
The headline or illustration should contain the
brand name.
The advertiser should get the message across by
means of a strong headline.
The message should be in customers language.

The illustration can tell a story to the reader. Use
characters that the customers can identify, emphasize
on the product, its packaging, showing the results of
the product usage.
Long paragraphs and long sentences should be
avoided.
TV Commercials
TV Commercials are of short durations.
TV Commercials use a benefit approach where advertising
would suggest a reason for the customer to buy.
The second approach is subtle the intension is to involve
the viewer by telling a story.
Third is salience advertising- with the assumption that
advertising which stands out as being different will cause
brand to stand out.
There are Humorous Advertisements.
Advertisements show product demonstrations.
Advertisements that compare the advertised product with
those of competitors are less believable and more
confusing. A single branded advertisement is preferred.
Advertisements show the product providing solutions
to a common problem.
If the company employs some novel process to make
the product, the customers get influenced.
Advertisements which contain news are above
average in changing customers brand preferences.
Advertisements with emotions and sentiments are
effective particularly when there is nothing very unique
to say about the product.
Cartoons sell products to children.
Making Television Advertising more effective
Brand Name: The name of the brand should be
advertised in the advertisement. The name should
appear within first ten seconds and should be
repeated as often as possible.

Package: Advertisements which end by showing the
package are more effective in changing brand
preference.

Appetizing Food: In advertisement of foods, the more
appetizing the product looks the more it sells.

Close ups: The closer the look of the product the
better it is.
Making Television Advertising more effective
Emphatic opening: If the advertisement grabs
attention in the first frame, it has a better chance of
holding the viewer.
Customers see many advertisements but remember
only the once with unique visual impact.
Product in use: It is useful to show the product
being used and if possible the end result of using it.
The advertisement should state its message very
clearly.

Celebrity Endorsements
Celebrity endorsements should be planned.

Celebrity values and personality must match those of the
brand.

People look up and watch the advertisements even of an
unknown brand when a familiar face of a celebrity pops on
the television screen.

A celebrity has immense potential to shape the brand
identity because of peoples inclination to believe them.

The celebrity has to be attached with the brand for a long
time since the persona of the celebrity has to be
transferred to the brand.
Celebrity Endorsements
It is important that celebrity is not associated with other
brands that are projecting values and personalities that are
in conflict with the brand in question. If it happens
customers get confused about personalities and values of
both the brands.

Instant Brand Awareness and Recall.

Brands acquire images from the type of people who are
seen using them.

Images of prestige or success are imbibed when brands
are associated with glamorous personalities.

Celebrity Endorsements
Celebrities alone do not guarantee success. People
realize that celebrities are being paid a lot of money for
endorsements and this knowledge makes them cynical
about celebrity endorsements.

Ensures attention: Ensures the attention of the targeted
group by making the ad and the brand more noticible.
Mitigating a tarnished image:
Cadbury India wanted to restore the consumer's
confidence in its chocolate brands following the high-pitch
worms controversy; so the company appointed Amitabh
Bachchan for the job.
when the even more controversial pesticide issue shook
up Coca-Cola and PepsiCo and resulted in much negative
press, both soft drink majors put out high-profile damage
control ad films featuring their best and most expensive
celebrities.
The celebrities ensured the safety of the product to the
consumers.
Psychographic Connect: Celebrities are loved and
adored by their fans and advertisers capitalize on their
feelings.
Demographic Connect: Different stars appeal
differently to various demographic segments (age,
gender, class).
Rejuvenating a stagnant brand: With the objective of
infusing fresh life into the stagnant chyawanprash
category and facing competition from various brands,
Dabur India roped in Bachchan.
Disadvantages of a celebrity endorsing a
brand:
Sometimes the celebrity might overshadow the brand.
The audience will remember the celebrity and not the
brand.
Celebrities endorsing one brand and using another.
Mismatch between the celebrity and the image of the
brand
Celebritys fit with the brand image.
CelebrityTarget audience match
Celebrity associated values.
Costs of acquiring the celebrity.
CelebrityProduct match.
Celebrity controversy risk.
Celebrity popularity.
Celebrity availability.
Celebrity prior endorsements.
Whether celebrity is a brand user.
Celebrity profession.

Sales Promotion
According to American Marketing Association:-
In specific sense, sales promotion includes those
sales activities that supplement both personal selling
and advertising and co-ordinate them and make
them effective such as displays, shows,
demonstrations and other non-current selling efforts
not in the ordinary routine.
Objectives and Functions of Sales Promotion:
Encourage customers to try new products.
Example : Free Sampling
Encourage customers to use products and make
them brand loyal.
Objectives and Functions of Sales Promotion
To influence the customers to purchase the product or
service instantly because sales promotion time is very
limited and if the customers do not respond to it quickly,
they may lose the offer.
To encourage the middlemen to buy and store more units of
the products by offering them incentives for bulk purchases.
To motivate the salesman to participate in the work.
To encourage off season purchases.
Unloading Accumulated inventory.
Types of Sales Promotions
Consumer/ Customer Sales Promotion
Targeted at the end customers.
Such promotion might involve developing materials to be
displayed in retailers store- including Banners, danglers,
posters, calenders at various point of purchase materials.
Buy 1 get 1
Write a slogan and win exiting prices.
25% extra with this pack of surf excel.
Get Rs.10 off.

Trade Sales Promotion
Here the target is the middlemen. They are offered the
incentives with the hope that they will stock more and push
the product to the consumers.
This kind of promotion is not advertised, it is an internal
affair.
Buy 10 pieces and get the 11
th
piece free.
Sales Force Promotion
It emphasises to increase and boost the morale of the
salesforce. They are offered commissions, bonus to
increase the sales.

Consumers Sales Promotion Method
Price Promotions
Price Discounting
Offer discount on normal selling price of product.

Coupons
Coupons is a certificate that offers a price reduction
Coupons can be placed inside a package or a coupon
pasted on a package.
Coupons can be in newspaper or magazines.
Cut out coupons as a part of advertisements.
Free gifts/samples
Gifts with purchases is a very common promotional tool.
Companies also distribute gifts to customers, dealers and
influential key people.
Gifts normally carry the company name and logo.
Gifts are intended to create companys goodwill and
intended sales.
Gifts include pen, calender, diaries, table decorations etc.

Free samples are offered to persuade
consumers to try the product. By offering free
samples to a large section of a new market, a
company is gaining an entry into that market.
Ex Soaps, detergents, toothpaste, coffee.
This is widely used for
A) Subscription based products (magazines)
B) Consumer Luxuries (Vehicles)


Frequent Use Incentives

Repeated purchases may be stimulated by providing
incentives to frequent users.
Ex: Frequent flyers in certain airline industry get
discount.

Contests
There are dealer contests meant exclusively for the
dealers of the company and consumer contests that are
open for all.
While dealer contests normally remain a close affair
between the company and its dealers, consumers contests
are given wide publicity to attract participation.


Point Of Purchase (POP) displays (point where the
product is sold)
Acts as a silent salesforce
Include window displays, wall display, display racks,
baloons , posters, danglers, stock piling .
Attractive and well positioned POP is an important part of
Sales Promotion.
Trade Shows
Group Of retailers conduct exibitions and trade shows to
make the customers aware of products offered by various
firms.
Ex Industrial Exibitions
Exibitions of home appliances
Consumer goods / Gym equipments

Demonstrations
Demonstration at retail store:
Demonstrations are organised at the retail stores by the
salesmen for the benefit of the retailers as well as
consumers.
When products happen to be costly consumers are invited to
a particular place, say a hotel and demonstrations are
arranged.
There are Door to Door Demonstrations Ex Eureka Forbes
Merits
A large variety of sales promotion tools to choose from.
It can be easily tied in with other promotional tool.
An approach for short term price reduction for stimulating
demand.

Effect on consumer behaviour:
As sales promotions are mostly announced for a short
period, customers may feel a sense of urgency and stop
comparing the alternatives. They are persuaded to act now
rather than later.
With every 500g pack of Tang, you get a free Tang glass.
Offer valid only till stocks last

Effect on trade behaviour:
Short-term promotions present an opportunity and
encourage dealers to forward buy. This forward buying
ensures that retailers wont to go out of stocks.
Demerits
May have only short term impact.
Over use of price related sales promotion may
hurt brand image and profits. Consumers may
hesitate to buy the brand without these
attractions

Publicity
Publicity is news carried in the mass-media about a firm and
its products, policies, personnel or actions.
It is a non paid form of promotion.
Organisations provide the material for publicity in the form
of news releases, photographs and press conferences.

Conducting a press conference to announce a new product
offering.
Creating a positive image about the company by releasing
information about the company involved in any local drive.
Inviting a celebrity

Merits
Publicity can be positive and stimulate demand
at no cost.
May be perceived by consumers as more
credible because it is not paid for by the seller.

Demerits
Publicity is not always possible because it is
not in the hands of the seller.
Publicity can be negative and hurt sales as
well as company product and brand images.
Company cannot completely control the
content of publicity messages.
Public Relations
Public Relations is a planned and sustained effort to
establish and maintain good will and mutual
understanding between organization and the public.
The target may be customers, stockholders, a
government agency or a special interest group.
Public Relation activities involve publicity,
seminars, publications, charitable donations.


Role of Public Relations
Identify relevant public
Influence the opinion of public
Reinforcing favorable opinion
Transforming neutral opinion of the public into
the opinion.
Changing or neutralizing hostile opinion
Functions of PR Manager
Direct Publicity Programs
Observe economic, political and social trends and give
recomendations to enhance the firms image.
Prepare internal communication letter.
Newsletter about employee
Public Contract.
Sponsership of Special events
Parties for launching new products.
Functions of Public Relations
Public relations aim at enhancing and sustaining the image
of an organisation towards all its stakeholders.

Facilitates Companys overall Operations
It fosters prestige and reputation which can help companies
to sell products, attract and keep employees and promote
favourable community and government relations.

Aids Promotion
Awareness and interest in products and companies can be
generated.
Helps in tackling social and environmental issues
If the company has good record of fulfilling its social
obligations and safeguarding the environment, its
occational breach will be overlooked.

Ensures that customers are treated well
The need to maintain good public realtions ensures that
customers are presented with useful information, are
treated well and have their complaints dealt with fairly and
speedily.

Responds Effectively to Negative Publicity
A company that understands the need to maintain good
relationship with its stakeholders will respond quickly,
accurately and effectively to negative publicity.
Methods of Communication for Public Relations
Public Relation department has to evaluate each mass media
and decide which one is the best for a particular public
relation programme.
Use of Television and Radio advertisements for mass
publicity.
Direct Mail- used for sending invitations to exibitions,
programmes and functions, sending seasons greetings and
gifts. The style and tone of these can have a great effect on
the companys image.
Press Release: Publicity can be through a minister of centre
or state paying a visit. This may be to highlight the industry
concern.
Methods of Communication for Public Relations
Literature: For PR includes all the leaflets, pamphlets,
folders, booklets and brochures which tell a story or give
usefull information. They do not highlight any product but
only inform, educate and entertain.
Exibitions and trade fairs: Displaying products at
exibitions and trade fair brings the organisation and public
close to each other.
Word-of-mouth
It has become an increasing potent force. Customer can
talks positive about a product and recommends it to others.
There can be negative Word-of-mouth promotion also.
Seminars and conferences: If adequate newspaper, radio
and television coverage is arranged for them, they help to
buid the image of the organisation.
Personal Selling
Personal Selling consists of winning the buyers confidence
for the goods and services offered by the seller.

It is an attempt to induce the people to buy the goods.
According to AMA:
Personal Selling is an oral presentation in conversational
form with one or more potential customers for the purpose
of generating sales.

It is an ability to manage the customers. An ability to
persuade the people to buy goods or services at a profit level
designed by the seller and benefits desired by the customers.

Challenges in Personal Selling
Personal Selling is used when the price of the product is high,
there is high perceived risk of purchase and customers
knowledge level is low. The salesforce needs to be trained due to
the technical nature of the products.

Salespersons also need to maintain relationship with clients at a
the time of purchase as well as between the purchases

Sales person needs to know what advantages their products have
over similar type of competitive offerings. Salespersons who
understand the requirements of their buyers better will
exaggerate the benefits that the buyer requires and win an order.
Sales persons should be well versed with the technologies and
systems of the buyer to be able to suggest a solution to his needs.

When problems are complex and of technical nature the
solutions requires inputs from specialists.
It involves not only sales team but also product and financial
experts, marketing and service staff to give confidence to the
customer that the team is competent enough to handle their
problem.

Sales Responsibilities
To increase Sales . This involves identification of
customers, making presentation, demonstration, handling
objectives and closing the sale.

Maintaining Customer records and Information
Feedback.
To get Repeated orders from the customers
To restructure relationship with important people.
To send customer and market information to head office.
Providing Service
Sales People can help their clients by suggesting
equipments, processes and material to be used by them.
May Provide after sale service to the customers
For some equipments, after sales service like installation,
warranties, maintenance are imp factors in determining the
satisfaction of the customers
Sales engineers may be required to give advice on operation
of a newly acquired machine or provide assistance .
Relationship between the buyer and the seller can develop
only when the sales team demonstrates its usefulness to the
customer at frequent intervals.
Handling Complaint
Dealing with complaints quickly and efficiently.
Empathize with the customers and react sympathetically
will help to create goodwill.
Reducing the anxiety of the customers is more important
which can be done by reaching the customer site as soon
as possible.
Relationship Management
Management of relationship with key persons is imp
Providing Exceptional customer service
Develop trust through high frequency of contact, ensuring
that promises are kept and reacting quickly and effectively
to problems.
Personal Selling Skills
Ask Questions
Let the customer talk to know the real need of the
customers. The salesperson should first listen and then
advocate his product.
Provide product information, make comparisons and
offer evidence to support Claims.

Sales persons should provide detailed product information
and help the customer in making comparison with
competitors product.
Acknowledge viewpoint of customers
It is best to acknowledge the customers need and work to find a
solution to his needs.
The salesperson should focus on providing such facts which will
help the customer in forming positive perceptions about the
salespersons product.

Support the Customer
The customer should consider the salesperson as someone who
will offer genuine advice . The customer should believe that the
salesperson will never sell him a wrong product. It is important
that the salesperson demonstrates his genuine concerns for the
customer.


Pre approach (Planning the Call)
Elements
Development of Buyer Profile
Name
Address
Type of Business
Best Time to visit
Buyer Preferences
Sales approach to be used
Presentation/ Demonstration technique
Anticipated Objectives
Trial Close
Promotional Plan to Discuss
Post sales Comments
Customer benefit Plan
Features/ Benefits /Utilities
Marketing Plan
Develop Business Proposal
Suggested purchase Order

Reasons for Pre-approach
Building Self Confidence
Develops Goodwill
Creates Professionalism
Increases Brand Equity
(Opening the Presentation) or The opening
Be business like in appearance and behaviour
The sales person should showcase the company, he
represents and his appearance and behaviour reflects the
values of his company.
Showmanship - make yourself presentable
Situational Approach See the mood of the customer and go
for the presentation.
Identify the needs and problems of the customer it helps to
select the product that best fits the customers need.
Need to have a knowledge of competitors products.
Convince customers of the products differential advantage.
Premium approach- Give demonstration of the product.
It allows the customer to see the product in operation

Product- Features of the product, Quality features
Customer Benefits- What benefits the product offers to the
Customer.
Dealing with Objections- Salespersons should listen to the
objections without interruption and by agreeing to the
customers viewpoint but also representing an alternative
viewpoint.

Be friendly but not over-familiar
Be attentive to details

SELL APPROACH

S- Show Features
E- Explain Advantage
L- Lead into benefits
L- Let customer talk
Closing The sale
Close is a final stage. It is the process of helping the
prospect to make a decision that
benefits him.
Effective presentation followed by convincing objective
handling will help in closing the sale.
Buying Signals
The key to closing a sale is to look for buying signal.
These are statements by buyers that indicate that they
are interested in buying.
When the customers gives cues or says that he needs
more time to take a decision, the sales person should
withdraw by politely asking when he could call next.
Salespeople must take the buying signals and
accordingly ask the customer to pay.
The salesperson can simply ask for the order.
Summarize and then ask for the order: Salesperson
reminds the buyer of the main points of sales
discussion in a manner which implies that the time
for decision-making has arrived.
Concession Close: By keeping back a concession
to use in close, a salesperson may convince an
indecisive buyer to place an order by offering the
concession.
Types of Close
Alternative Choice Close
Assumptive close
Complement Close
Summary of benefit close
Minor Point close

The Follow up
The salesperson ensures that the order is executed well by
checking that there are no problems with delivery, installation,
product use.
The follow up can show that sales people care about the
customer.
Follow up can be used to provide reassurance that
purchasing the salespersons product was the right thing to
do.
Direct Marketing
Direct Marketing attempts to acquire and retain
customers by contracting them without the use of
intermediaries.

Direct marketing involves the distribution of products,
information and promotional benefits to target
customers through interactive communication in a
manner that allows customer response to be
measured.
Direct Marketing Techniques
Common direct marketing techniques are:
Direct mail
Purchase over Telephone.
Door to Door Leaflets distribution
Mail order Catalogues

Targeted direct mail to a customer built database is
effective.
A marketing database is a must for initiating direct
marketing activity. It is a list of names, addresses and
transactional behaviour of customers. This allows future
campaigns to be targeted at those peoplenwho are most
likely to respond.