Notes on Advertising Mgmt

Published on June 2016 | Categories: Documents | Downloads: 36 | Comments: 0 | Views: 229
of 33
Download PDF   Embed   Report

advertising management

Comments

Content

SALES AND ADVERTISING MANAGEMENT SALES MANAGEMENT NATURE Sales management refers to the administration of the personal selling component of a company's marketing program. It includes the planning, implementation, and control of sales programs, as well as recruiting, training, motivating, and evaluating members of the sales force. In a small business, these various functions may be performed by the owner or by a specialist called a sales manager. The fundamental role of the sales manager is to develop and administer a selling program that effectively contributes to the organization's goals. The sales manager for a small business would likely decide how many salespeople to employ, how best to select and train them, what sort of compensation and incentives to use to motivate them, what type of presentation they should make, and how the sales function should be structured for maximum contact with customers. Sales management is just one facet of a company's overall marketing mix, which encompasses strategies related to the "four Ps": products, pricing, promotion, and place (distribution). Objectives related to promotion are achieved through three supporting functions: 1. advertising, which includes direct mail, radio, television, and print advertisements, among other media; 2. sales promotion, which includes tools such as coupons, rebates, contests, and samples; and 3. personal selling, which is the domain of the sales manager. The 5 sales tips for success are an acrostic for S.A.L.E.S: S - Skill A - Attitude L - Leverage E - Energy S - Success SCOPE OF SALES MANAGEMENT Although the role of sales managers is multidisciplinary in scope, their primary responsibilities are: Manage marketing activities (4 P‘s) Marketing research setting goals for a sales force; planning, budgeting, and organizing a program to achieve those goals; implementing the program; and 5. controlling and evaluating the results. Even when a sales force is already in place, the sales manager will likely view these responsibilities as an ongoing process necessary to adapt to both internal and external changes. 1. 2. 3. 4.

FUNCTIONS OF SALES MANAGEMENT 1. Hire, fire, and train sales staff - selection, maintenance and training of the sales staff is key to any company's success. Sales managers must hire sales staff the can competently manage the sales process and meet or exceed quota. The Sales Manager must train and motivate the staff to perform. The Sales Manager must also replace underreporting sales staff. Ongoing training is key to understanding the company sales process, sales value propositions and product sets. 2. Develop and manage sales territories and quotas, and manage any conflicts that arise as a result of customer, territory, quota or commission questions 3. Develop and implement sales compensation plans 4. Create, document and train in the company sales process 5. Interact with all departments that contribute to product delivery and support, customer service and finance. 6. Prepare and manage a sales budget in line with company financial objectives. 7. Coach sales staff to maximize their professional performance 8. Plan and facilitate regular sales meetings to keep staff and rest of company informed, energized and motivated. The role of sales management varies from company to company, but the points above should be addressed by every senior sales manager.

PROCESS OF SALES MANAGEMENT There are major four steps in sales management Although the role of sales management professionals is multidisciplinary, their primary responsibilities are: (1) setting goals for a sales-force; (2) planning, budgeting, and organizing a program to achieve those goals; (3) implementing the program; and (4) controlling and evaluating the results. Even when a sales force is already in place, the sales manager will likely view these responsibilities as an ongoing process necessary to adapt to both internal and external changes. GOAL SETTING The overall goals of the sales force manager are essentially mandated by the marketing mix. The company coordinates objectives between the major components of the mix within the context of internal constraints, such as available capital and production capacity. The sales force manager, however, may play an important role in developing the overall marketing mix strategies. For example, the sales manager may be in the best position to determine the specific needs of customers and to discern the potential of new and existing markets.

One of the most critical duties of the sales manager is to estimate the market potential and sales potential of the company's offerings, and then to make realistic forecasts of sales. Market potential is the total expected sales of a given product or service for the entire industry in a specific market over a stated period of time. Sales potential refers to the share of a market potential that an individual company can reasonably expect to achieve. A sales forecast is an estimate of sales (in dollars or product units) that an individual firm expects to make during a specified time period, in a stated market, and under a proposed marketing plan. Estimations of sales and market potential are often used to set major organizational objectives related to production, marketing, distribution, and other corporate functions, as well as to assist the sales manager in planning and implementing the overall sales strategy. Numerous sales forecasting tools and techniques, many of which are quite advanced, are available to help the sales manager determine potential and make forecasts. Major external factors influencing sales and market potential include: industry conditions, such as stage of maturity; market conditions and expectations; general business and economic conditions; and regulatory environment. Planning, Budgeting, and Organizing After determining goals, the sales manager of a small business must develop a strategy to attain them. A very basic decision is whether to hire a sales force or contract with independent selling agents or manufacturers' representatives outside of the organization. The latter strategy eliminates costs associated with hiring, training, and supervising workers, and it takes advantage of sales channels that have already been established by the independent representatives. On the other hand, maintaining an internal sales force allows the manager to exert more control over the salespeople and to ensure that they are trained properly. Furthermore, establishing an internal sale force provides the opportunity to hire inexperienced representatives at a very low cost. This determination typically entails a compromise between the number of people needed to adequately service all potential customers and the resources available to the company. One technique sometimes used to determine sales force size is the "work load" strategy, whereby the sum of existing and potential customers is multiplied by the ideal number of calls per customer. After determining the composition of the sales force, the sales manager creates a budget, or a record of planned expenses that is (usually) prepared annually. The budget helps the manager decide how much money will be spent on personal selling and how that money will be allocated within the sales force. Major budgetary items include: sales force salaries, commissions, and bonuses; travel expenses; sales materials; training; clerical services; and office rent and utilities. Many budgets are prepared by simply reviewing the previous year's budget and then making adjustments. Implementing After setting goals and establishing a plan for sales activities, the next step for the sales manager is to implement the strategy. Implementation requires the sales manager to make decisions related to staffing, designing territories, and allocating sales efforts. Staffing—the most significant of these three responsibilities—encompasses recruiting, training, compensating, and motivating salespeople. Recruiting The first step in recruiting salespeople involves analyzing the positions to be filled. This is often accomplished by sending an observer into the field, who records the amount of time

a salesperson must spend talking to customers, traveling, attending meetings, and doing paperwork. The observer then reports the findings to the sales manager, who uses the information to draft a detailed job description. The observer might also report on the characteristics and needs of the buyers, since it can be important for salespeople to share these characteristics. The manager may seek candidates through advertising, college recruiting, company sources, and employment agencies. Candidates are typically evaluated through personality tests, interviews, written applications, and background checks. Research has shown that the two most important personality traits that salespeople can possess are empathy, which helps them relate to customers, and drive, which motivates them to satisfy personal needs for accomplishment. Other important traits include maturity, appearance, communication skills, and technical knowledge related to the product or industry. Negative traits include fear of rejection, distaste for travel, selfconsciousness, and interest in artistic or creative originality. Training After recruiting a suitable sales force, the manager must determine how much and what type of training to provide. Most sales training emphasizes product, company, and industry knowledge. Only about 25 percent of the average company training program, in fact, addresses personal selling techniques. Because of the high cost, many small businesses try to limit the amount of training they provide. The average cost of training a person to sell industrial products, for example, commonly exceeds $30,000. Sales managers can achieve many benefits with competent training programs, however. For instance, research indicates that training reduces employee turnover, thereby lowering the effective cost of hiring new workers. Good training can also improve customer relations, increase employee morale, and boost sales. Common training methods include lectures, case studies, role playing, demonstrations, on-the-job training, and self-study courses. Ideally, training should be an ongoing process that continually reinforces the company's goals. Compensation After the sales force is in place, the manager must devise a means of compensating individuals. The ideal system of compensation reaches a balance between the needs of the person (income, recognition, prestige, etc.) and the goals of the company (controlling costs, boosting market share, increasing cash flow, etc.), so that a salesperson may achieve both through the same means. Most approaches to sales force compensation utilize a combination of salary and commission or salary and bonus. Salary gives a sales manager added control over the salesperson's activities, while commission provides the salesperson with greater motivation to sell. Although financial rewards are the primary means of motivating workers, most sales organizations also employ other motivational techniques. Good sales managers recognize that salespeople have needs other than the basic ones satisfied by money. For example, they want to feel like they are part of a winning team, that their jobs are secure, and that their efforts and contributions to the organization are recognized. Methods of meeting those needs include contests, vacations, and other performance-based prizes, in addition to self-improvement benefits

such as tuition for graduate school. Another tool managers commonly use to stimulate their salespeople is quotas. Quotas, which can be set for factors such as the number of calls made per day, expenses consumed per month, or the number of new customers added annually, give salespeople a standard against which they can measure success. Designing Territories And Allocating Sales Efforts In addition to recruiting, training, and motivating a sales force to achieve the company's goals, sales managers at most small businesses must decide how to designate sales territories and allocate the efforts of the sales team. Territories are geographic areas assigned to individual salespeople. The advantages of establishing territories are that they improve coverage of the market, reduce wasteful overlap of sales efforts, and allow each salesperson to define personal responsibility and judge individual success. However, many types of businesses, such as real estate and insurance companies, do not use territories. Allocating people to different territories is an important sales management task. Typically, the top few territories produce a disproportionately high sales volume. This occurs because managers usually create smaller areas for trainees, medium-sized territories for more experienced team members, and larger areas for senior sellers. Controlling and Evaluating After the sales plan has been implemented, the sales manager's responsibility becomes controlling and evaluating the program. During this stage, the sales manager compares the original goals and objectives with the actual accomplishments of the sales force. The performance of each individual is compared with goals or quotas, looking at elements such as expenses, sales volume, customer satisfaction, and cash flow. According to Burstiner, each salesperson should be evaluated using both subjective (i.e., product knowledge, familiarity with competition, work habits) and objective (i.e., number of orders compared to number of calls, number of new accounts landed) criteria. DIFFERENCE BETWEEN MARKETING AND SALES MANAGEMENT MARKETING SALES 1. determine future needs and has a 1. makes customer demand match the strategy in place to meet those needs products the company currently offers. for the long term relationship. Usually one to one process 2. One to many process

3. fulfill customer's wants and needs fulfill sales volume objectives 4. 5. 6. 7.
through products and/or services the company can offer. Longer term Identifying customer needs (research), creating products to meet those needs, promotions to advertise said products. Pull strategy Marketing is a wider concept Short term Once a product has been created for a customer need, persuade the customer to purchase the product to fulfill her needs Push strategy Sales is a narrower concept

FUNCTIONS /RESPONSIBILITES OF SALES PERSON         Sales position Delivery a product Order taker Build goodwill Demand creator Actively seek orders and use creative and problem solving selling Solve customer problems Customer satisfaction

PERSONAL SELLING Personal selling is a promotional method in which one party (e.g., salesperson) uses skills and techniques for building personal relationships with another party (e.g., those involved in a purchase decision) that results in both parties obtaining value. In most cases the "value" for the salesperson is realized through the financial rewards of the sale while the customer‘s "value" is realized from the benefits obtained by consuming the product. However, getting a customer to purchase a product is not always the objective of personal selling. For instance, selling may be used for the purpose of simply delivering information. Because selling involves personal contact, this promotional method often occurs through face-to-face meetings or via a telephone conversation, though newer technologies allow contact to take place over the Internet including using video conferencing or text messaging (e.g., online chat).           Personal selling is also known as Direct Selling Most important tool of sales promotion Directly persuade the prospect for buying the product &services It is oral presentation of goods and services Two way communication between buyers and sellers Identifying the ability of sales person. It enhances customer‘s confidence in the seller It promotes long term business relations through personal intimacy It provides a human touch to business transactions It helps facilitate the seller to understand each customer‘s need and performances more clearly  It helps satisfy a customer by modifying the product as per the customer‘s choice and preference.

PROCESS OR STEPS IN EFFECTIVE PERSONAL SELLING

Throughout modern selling history, one of the oldest and most widely accepted paradigms in the sales discipline is commonly referred to as the ‗Seven steps of selling‘. These seven steps present the typical sales scenario as composed of the following: (1) Prospecting, (2) Pre-approach, (3) Approach, (4) Presentation, (5) Overcoming objections, (6) Close, and (7) Follow-up. 1. Prospecting and Qualifying Prospecting is the method by which salespeople search for new customers and potential customers. One obvious reason for prospecting is to expand the customer base, which is important because most sales organizations lose customers every year. Sales textbooks typically discuss methods of prospecting, such as referrals, networking, bird-dogging, cold canvassing, and numerous others. Prospecting usually includes a discussion of qualifying the prospect and thus developing some type of screening procedure. Traditionally, salespeople were expected to find their own prospects. Prospecting was an essential and large part of the selling job, and for many salespeople, this was the most difficult and tedious part of the job—in fact, it is an aspect of sales jobs that has chased off many would-be salespeople. Up to 20% of a firm's customer base can be lost for reasons such as transfer, death, retirement, takeovers, dissatisfaction with the company and competition. A steadily growing list of qualified prospects is important for reaching the sales targets. Qualifying a prospect: A lead is a name on a list. It only becomes a prospect if it is determined that the person or company can benefit from the service or product offered. A qualified prospect has a need, can benefit from the product and has the authority to make the decision.

2. Pre-approach The pre-approach step includes all post prospecting activities prior to the actual visit with a prospect or customer. The pre-approach step occurs on virtually every sales call. Sellers are doing their research on the prospect or customer, familiarizing themselves with the customer‘s needs, reviewing previous correspondence, and pulling together any other new and relevant material that might be appropriate for bringing to the sales call itself. Preapproach activities also include talking with gatekeepers, doing homework on the customer (individual and organization), mentally preparing for the approach and presentation (rehearsal), and entering the customer‘s office. 3. Approach The approach usually takes the first minute or minutes of a sale. It consists of the strategies and tactics employed by salespeople when gaining an audience and establishing initial rapport with the customer. The approach includes opening small talk, the handshake, eye contact, and generally making a good initial impression. Most sales textbooks include a variety of different approaches that can be used, including the introductory approach, the assessment approach, the product approach, the consumerbenefit approach, the referral approach, the consultative approach, and many others. 4. Presentation The presentation is the main body of the sales call and should occur after the salesperson has predetermined the needs of the customer. This step can be one presentation or multiple presentations over a period of time. Goals for the sales presentation will vary. First-time buyers must get sufficient information to adequately understand the product‘s benefits, which may be facilitated by building the presentation around a product demonstration. Selling points and attributes are visualized and built around a call agenda or sales proposal. This step can be complex, and preparation is essential. Sales textbooks and sales training programs spend substantial time on this step of the selling process. 5. Overcoming objections Objections can be broadly defined as customer questions and hesitancies about the product or company. Salespeople should expect that objections will be encountered in every sales presentation. A number of reasons exist for objections, and despite the fact that objections can delay the sales process, for the most part they should be perceived in a positive sense as useful. This is because by revealing objections, true buyer needs can be uncovered. In the early days of selling, sales objections were viewed mostly as a hurdle that salespeople had to overcome to get to the ultimate sale. In more modern times, a true objection might be viewed as a sign not to pursue the sale further because a need may not be met with a given product. Most sales textbooks provide a discussion of differing types of objections and procedures for how the salesperson can overcome them.

6. Close The close is defined as the successful completion of the sales presentation culminating in a commitment to buy the good or service. Once any objections have been successfully overcome, the salesperson must actually ask for the business and thus begin the process of closing the sale. This step traditionally has been trumpeted as difficult for many salespeople (especially new salespeople) because many simply do not ask for the order. A myriad of closing tactics are available, some of which are quite colorful, that are typically discussed in sales textbooks and sales training sessions. 7. Follow-up As mentioned earlier, the follow-up step is a relatively newer addition to the steps of selling in which the salesperson does not assume the sale is over with the acceptance of an order. Rather, much work begins after the sale to make sure the customer is happy with the product/ service and that everything that was promised is being delivered. Examples that are frequently given include a thank-you letter to the customer or a followup phone call to ensure the customer is happy.

OBJECTIVES OF PERSONAL SELLING Personal selling is used to meet the five objectives of promotion in the following ways: 1. Building Product Awareness – A common task of salespeople, especially when selling in business markets, is to educate customers on new product offerings. In fact, salespeople serve a major role at industry trades shows (see the Sales Promotion tutorial) where they discuss products with show attendees. But building awareness using personal selling is also important in consumer markets. As we will discuss, the advent of controlled word-of-mouth marketing is leading to personal selling becoming a useful mechanism for introducing consumers to new products. 2. Creating Interest – The fact that personal selling involves person-to-person communication makes it a natural method for getting customers to experience a product for the first time. In fact, creating interest goes hand-in-hand with building product awareness as sales professionals can often accomplish both objectives during the first encounter with a potential customer. 3. Providing Information – When salespeople engage customers a large part of the conversation focuses on product information. Marketing organizations provide their sales staff with large amounts of sales support including brochures, research reports, computer programs and many other forms of informational material. 4. Stimulating Demand – By far, the most important objective of personal selling is to convince customers to make a purchase. In The Selling Process tutorial we will see how

salespeople accomplish this when we offer detailed coverage of the selling process used to gain customer orders.

THEORY OF SELLING 1. AIDAS theory of selling The AIDAS theory of selling is one of the widest known theories and is the basis for training materials across numerous organizations. AIDAS stands for Attention, Interest, Desire, Action, Satisfaction. The AIDAS theory simply states that a prospect goes through five different stages before finally responding satisfactorily to our product. thus he should be led comfortably through all five stages. Attention - Gaining attention is a skill and just like any skill, gaining attention can be improved upon with practice. A common phrase applicable over here is ―First impression is last impression‖. The initial attempt of the sales person must be to put the customer completely at ease. Casual conversation is one of the best openers after which the sales person can gain customer attention by leading him onto the sale. Interest - Once you have gained attention, it is very important to maintain interest. Some sales people are very good in the opening but as the technicalities take over, they become uncomfortable while explaining the product. Whereas others who are strong in the product department might open bluntly but create interest in the second stage. Maintaining interest is a crucial part of the sales process and hence is included in the AIDAS theory. Desire - Have you seen the commercials wherein you just have to get out of your house and get the product? Perhaps a car, an ice cream or a house. The same has to be done by the sales person in personal selling. He has to create enough desire in the customers mind such that he immediately has to buy the product. Imagine an aqua guard sales man or a Tupper ware sales person. They highlight the product in such a manner that you might be thinking ―Why didn‘t i buy this product before‖. Thus kindling that desire becomes an integral part of the AIDAS selling theory. Read more on how to create desire for the product Action - Although there may be desire for the product, the customer might not act on it. He might want to buy the product but he might NOT buy it. In such cases the customer needs to be induced. There are various ways to induce the customer such that he buys the product. It is important for the sales person to understand whether to directly induce the customer or whether to push subtle reminders that you are there for a sales call. Both methods work, but you need to know your customer. Satisfaction - What would you do after the customer has given the order? Will you stand up, Point at him and shout ―Fooled ya‖. I dont think so. The customer has just parted with his money. Just like you part your money and expect good service, he expects the same too. So even after he has bought the product, you need to reassure the customer that he has made the right decision. The product is good for the customer and you only presented the product. It was his decision and he is right about it. These small cues post the sales process really give confidence to the customer and he then looks forward to your product rather than thinking whether or not he has made the right decision. For exampleSecuring attention –Telling about RO water purifier and its quality to purify water

Gaining Interest – by showing flipcharts, presentations and brochures and also focusing on purity and health of the family members. Kindling Desire – to make them use the RO water purifier for their use Induction – consumer purchase the product due to its effectiveness in providing pure and germ free water Building Satisfaction – appreciate the customer by saying that he has made the good purchase by relating its health factor .

2. RIGHT SET OF CIRCUMSTANCES THEORY This theory sometimes is also called ―Situation Response theory‖, had its psychological origin in experiments with animals and holds that the particular circumstances prevailing in a given selling situation cause the prospect to respond in a predictable way. If the sales person succeeds in securing the attention and gaining the interest of the prospect, and if the salesperson presents the proper stimuli or appeals, the desired response will result. Furthermore the more skilled the salesperson is in handling the set of circumstances, the more predictable is the response. The set of circumstances includes factors external and internal to the prospect. To use a simplified example, Suppose a salesperson sales to the prospect, ―Let‘s go out for lunch‖. The salesperson and the remarks are the external factors. But at least 4 factors internal to the prospect affect the response. These are the presence or the absence of desires (1)First to go out for lunch (2)To have it now (3)To go out (4)To go out with salesperson Proponents of this theory tend to stress external factors and at the expense of internal factors. They seek selling appeals that evoke desired responses. Sales personnel who try to apply the theory experience difficulty traceable to internal factors in many selling situations, but the internal factors are not readily manipulated. This is a seller oriented theory: it stresses the importance of the salesperson controlling the situation, does not handle the problem of influencing the factors internal to the prospect, and fails to assign appropriate weight to the response side of the situation response interaction. For example Suppose you provide a Paying guest accommodation as well as provide Tiffin services to those living in PG as well as to others and charge for it. 3. “Buying Formula” theory of selling : This theory emphasizes the buyer‘s side of the buyer‘s seller dyad. The buyers need or problem receives major attention and the sales person role is to help buyer find solutions. This theory purports: what thinking process goes on mind that causes the decision to buy or not to buy? The buying formula is a schematic representation of a group of responses arranged in a psychological sequence .The formula theory emphasizes the prospects responses and deemphasizes the external factors ,on the assumption that the salesperson, being naturally conscious of the external factors will not overlook them. The mental involved in the purchase are

Need

Solution

Purchase

Because the outcome of the purchase affects the chance that a continuing relation will develop between the buyer and the seller and because nearly all sales organizations are interested in continuing relationship. It is necessary to add a fourth element the fourth elements then are Need solution purchase satisfaction Whenever a need is felt or problem recognized, the individual is conscious of a deficiency of satisfaction. When definite buying habit has been established the buying formula is Need product service and or trade name purchase satisfaction dissatisfaction emphasized.

MARKETING COMMUNICATIONS AND ELEMENTS OF COMMUNICATION MIX Marketing communications is a subset of the overall subject area known as marketing. Marketing has a marketing mix that is made of price, place, promotion, product (know as the four P's), that includes people, processes and physical evidence, when marketing services (known as the seven P's). How does marketing communications fit in? Marketing communications is 'promotion' from the marketing mix. Why are marketing communications 'integrated?' Integrated means combine or amalgamate, or put simply the jigsaw pieces that together make a complete picture. This is so that a single message is conveyed by all marketing communications. Different messages confuse your customers and damage brands. So if a TV advert carries a particular logo, images and message, then all newspaper adverts and point-of-sale materials should carry the same logo, images or message, or one that fits the same theme. Coca-Cola uses its familiar red and white logos and retains themes of togetherness and enjoyment throughout its marketing communications. Marketing communications has a mix. Elements of the mix are blended in different quantities in a campaign. The marketing communications mix includes many different elements, and the following list is by no means conclusive. It is recognised that there is some cross over between individual elements (e.g. Is donating computers to schools, by asking shoppers to collect

vouchers, public relations or sales promotion?) Here are the key of the marketing communications mix. The Marketing Communications Mix.  Personal Selling - For eg:- Salesman  Sales Promotion – Various schemes like free coupons, gifts  Public Relations (and publicity).  Direct Marketing.  Trade Fairs and Exhibitions - For eg:- ―Numaish in Hyderabad  Advertising (above and below the line).  Sponsorship.  Packaging – For eg :- Dairy milk  Merchandising (and point-of-sale).  EMarketing (and Internet promotions).  Brands. Integrated Marketing Communications Integrated Marketing Communications (IMC) is the coordination and integration of all marketing communication tools, avenues, functions and sources within a company into a seamless program that maximizes the impact on consumers and other end users at a minimal cost.  Process for managing customer relationships that drive brand value.  Its foundation is communication  Cross-functional process for creating and nourishing profitable relationships with customers other stakeholders by strategically controlling or influencing all messages sent to these groups and encouraging data-driven, purposeful dialog with them.  Integrated marketing communications (IMC) is the coordination and integration of all marketing communication tools, avenues, and sources within a company into a seamless program that maximizes the impact on consumers and other end users at a minimal cost. This integration affects all firm's business-to-business, marketing channel, customerfocused, and interally directed communications

ADVERTISING : The activity of attracting public attention to a product or business, as by paid announcements in the print, broadcast, or electronic media. One definition of advertising is: "Advertising is the nonpersonal communication of information usually paid for and usually persuasive in nature about products, services or ideas by identified sponsors through the various media." NONPERSONAL First, what is "nonpersonal"? There are two basic ways to sell anything: personally and nonpersonally. Personal selling requires the seller and the buyer to get together. There are advantages and disadvantages to this. The first advantage is time: the seller has time to

discuss in detail everything about the product. The buyer has time to ask questions, get answers, and examine evidence for or against purchase. A second advantage of personal selling is that the seller can see you. the person selling to. She can see your face; see how the sales message is getting across. If you yawn or your eyes shift away, you're obviously bored, and the seller can change approach. She can also see if you're hooked, see what features or benefits have your attention, and emphasize them to close the sale. Finally, the seller can easily locate potential buyers. If you enter a store, you probably have an interest in something that store sells. Street vendors and door-to-door sellers can simply shout at possibilities, like the Hyde Park (London) vendors who call out, "I say there, Guv'nor, can you use a set of these dishes?", or knock at the door and start their spiel with an attention grabber. From there on they fit their message to the individual customer, taking all the time a customer is willing to give them. Disadvantages do exist. Personal selling is, naturally enough, expensive, since it is laborintensive and deals with only one buyer at a time. Just imagine trying to sell chewing gum or guitar picks one-on-one; it would cost a dollar a stick or pick. In addition, its advantage of time is also a disadvantage. Personal selling is time-consuming. Selling a stereo or a car can take days, and major computer and airplane sales can take years. Nonetheless, although personal selling results in more rejections than sales, and can be nerveracking, frustrating and ego destroying for the salesperson, when the salesperson is good it is more directed and successful than advertising. From the above, it appears that personal selling is much better than advertising, which is nonpersonal. This is true. Advertising has none of the advantages of personal selling: there is very little time in which to present the sales message, there is no way to know just who the customer is or how rhe is responding to the message, the message cannot be changed in midcourse to suit the customer's reactions. Then why bother with advertising? Because its advantages exactly replace the disadvantages of personal selling, and can emulate some of the advantages. First let's look at the latter. First, advertising has, comparatively speaking, all the time in the world. Unlike personal selling, the sales message and its presentation does not have to be created on the spot with the customer watching. It can be created in as many ways as the writer can conceive, be rewritten, tested, modified, injected with every trick and appeal known to affect consumers. (Some of the latter is the content of this book.) Second, although advertisers may not see the individual customer, nor be able to modify the sales message according to that individual's reactions at the time, it does have research about customers. The research can identify potential customers, find what message elements might influence them, and figure out how best to get that message to them. Although the research is meaningless when applied to any particular individual, it is effective when applied to large groups of customers. Third, and perhaps of most importance, advertising can be far cheaper per potential customer than personal selling. Personal selling is extremely labor-intensive, dealing with one customer at

a time. Advertising deals with hundreds, thousands, or millions of customers at a time, reducing the cost per customer to mere pennies. In fact, advertising costs are determined in part using a formula to determine, not cost per potential customer, but cost per thousand potential customers. Thus, it appears that advertising is a good idea as a sales tool. For small ticket items, such as chewing gum and guitar picks, advertising is cost effective to do the entire selling job. For large ticket items, such as cars and computers, advertising can do a large part of the selling job, and personal selling is used to complete and close the sale. Advertising is nonpersonal, but effective. COMMUNICATION Communication means not only speech or pictures, but any way one person can pass information, ideas or feelings to another. Thus communication uses all of the senses: smell, touch, taste, sound and sight. Of the five, only two are really useful in advertising - sound and sight. INFORMATION Information is defined as knowledge, facts or news. However, you should bear in mind that one person's information is another person's scam, particularly when advertisers talk about their products. Information comes in many forms. It can be complete or incomplete. It can be biased or deceptive. Complete information is telling someone everything there is to know about something: what it is, what it looks like, how it works, what its benefits and drawbacks are. Thus, for advertising, information must of necessity be incomplete, not discussing everything there is to know about the subject. In advertising, what appears is everything the writer thinks the customer needs to know about the product in order to make a decision about the product. That information will generally be about how the product can benefit the customer. "Sometimes the consumer is provided not with information he wants but only with the information the seller wants him to have. Sellers, for instance, are not inclined to advertise negative aspects their products even though those aspects may be of primary concern to the consumer, particularly if they involve considerations of health or safety PAID FOR ". . . paid for . . . " is pretty straightforward. If an ad is created and placed in the media, the costs of creation and time or space in the media must be paid for. This is a major area in which advertising departs from public relations. PR seeks to place information about companies and/or products in the media without having to pay for the time or space. PR creates news releases and sends them to news media in hopes they will be run. Often PR departments produce events that will be covered by news media and thus receive space or time. There is no guarantee that the media will run any of the PR material. Advertising doesn't have that problem. If time or space is bought in the media, the ads (as long as they follow the guidelines set down for good taste, legal products and services, etc.) will appear. The drawback is that ads are clearly designed to extol the virtues of products and companies, and any ad is perceived by consumers as at least partly puffery. PR pieces are usually not so perceived. PERSUASIVE "Persuasive" stands to reason as part of the definition of advertising. The basic purpose of advertising is to identify and differentiate one product from another in order to

persuade the consumer to buy that product in preference to another. The purpose of this book is to discuss some basic elements of persuasion. PRODUCTS, SERVICES OR IDEAS Products, services or ideas are the things that advertisers want consumers to buy (in the case of ideas, "buy" means accept or agree with as well as lay out hard, cold cash). However, there is more involved in products or services than simply items for purchase. (During the following discussion, "products" will mean products, services and ideas unless otherwise noted.) A product is not merely its function. It is actually a bundle of values, what the product means to the consumer. That bundle may contain the product's function, but also the social, psychological, economic or whatever other values are important to the consumer. For example, let's look at a car. If the function of a car, transportation, is all that is important, then manufacturers would need only build motorized boxes on wheels, and consumers would be happy with them. Such is obviously not the case: the number of models and types of cars is huge, and if consumers didn't demand the variety it wouldn't exist. Consumers must find factors other than mere transportation just as, if not more important. IDENTIFIED SPONSORS Identified sponsors means whoever is putting out the ad tells the audience who they are. There are two reasons for this: first, it's a legal requirement, and second, it makes good sense. Legally, a sponsor must identify rherself as the sponsor of an ad. This prevents the audience from getting a misleading idea about the ad or its contents. For example, many ads that appear in newspapers look like news articles: same typeface, appearance, use of columns, etc.. If the ad is not identified as such, the audience could perceive it as news about a product, rather than an attempt to persuade the audience to buy it. Case in point: what looks like a news article discusses a weight-loss plan. In journalistic style it talks about the safety, efficacy, and reasonable price of the product. A reasonable person might perceive the "article" as having been written by a reporter who had investigated weight-loss programs and decided to objectively discuss this particular one. Such a perception is misleading, and illegal. Since it is an ad, somewhere on it there must appear the word "advertisement" to ensure the audience does not think it is an objective reporting of news. Second, it makes good sense for a sponsor to identify herself in the ad. If the sponsor doesn't, it is possible for the audience to believe the ad is for a competitor's product, thus wasting all the time, creativity and money that went into making and placing the ad. IMPORTANCE OF ADVERTISING Advertising has a major impact on society: Ads help establish what is cool in society; their messages contribute to the public dialogue. It makes kids to dance together. It creates pleasure fullness. Thus, it pays to advertise. It is the lever that motivates the world of commerce and industry. It is the pride of dynamic marketing. It provides benefits to various groups which includes the producer, consumer, dealers, salesmen, and the society and economy. The importance of advertising to these groups is explained below:

I. Importance of Advertising to Producers Increase in Demand: Advertising awakens interests, stimulates emotions and creates desire to buy the product. For eg:- Tide 2. Large-Scale Production: Advertising increases and stabilises the sales-turnover. It helps to repeal sales. It creates customers and loyal clientele. The increased demand necessitates to produce on large-scale. For eg:- Sunsilk 3. Cuts Costs: Advertising helps in cutting down the production and selling costs. Increasing unit sales decreases unit costs. 4. Good Selling Tool: Advertising is a good selling tool for big businessmen. It puts less burden on other selling methods. 5. Explores New Markets: Advertising maintains the existing markets. But it also expands and explores new markets by better informing and serving the customers. 6. Facilitates Innovation: Advertising promotes new product. In a way it reduces the risk of innovation. 7. New Industries and New Jobs: Otto Kleppner has asserted that ―Due to advertising new and improved products and services constantly appear, enrich our lives, change life-styles, create new industries and new jobs. 8. Lowers Prices: Advertising reduces products prices by keeping down various costs to the advantage of consumers. 9. More Profits: Advertising increases profits by increasing sales. 10. Control on Trade Cycles: Advertising can help to stimulate business recovery in severe recessions. It stimulates latent needs, and reinforces the aroused wants in depression period. 11. Competitive and Promotional Weapon: Advertising is a powerful weapon to counter competitive moves. It creates brand image. 12. Builds Brand Image: Manufacturers use advertising to build a brand image. 13. Other Benefits: (i) It increases business activities. (ii) It increases goodwill of the firm. (iii) It increases Interest among dealers in manufacturer‗s goods. (iv) It makes possible the use of modern technology in productional process.

II. Importance of Advertising to Consumers 1. Help in Rational Buying: Advertising disseminates useful information about the relative merits and unique features of the products in terms of quality, utility, price, durability and convenience. 2. Ensures Quality Products at Reasonable Prices: Advertising stimulates the sale of quality products. It creates a right image of good products. For eg:- Saras 3. More Products: Advertising is a feature of free competitive enterprise and can be a contributory factor towards greater availability of goods. 4. Creates Varied Tastes: Consumers demand differences in colour and style. They want new styles in various products. Advertising responds to what people want. 5. Information: Consumers need information about various goods and services. ―Advertising is a means of pleasant informations for pleasureful life and good buying.‖ 6. Offers Solutions to Buying Problems: Consumers may have problems like hair-falling, tooth decay, ill-health, not finding desired product or design, right quality, or right price, etc. 7. Better Standard of Living: Sir Winston Churchill has very aptly stated, ―Advertising nourishes the consuming power of men. It sets up before a man the goal of a better home, better clothing, better food for himself and his family. 8. Saves Time: Advertising is informative, educative and convincing. It brings many informations to the notice of consumers. 9. Reduces Dissonance: Advertising helps to reduce may tensions and mental anxieties after buying the product by producing facts and proofs in favour of his decision. 10. Educates Consumers: Advertising is also a means of educating the consumers about the proper use of product. III. Importance of Advertising to Middlemen 1. Guarantees Quick Sales: Advertising quickens the pace of sales by brining products to the knowledge of the consumers. 2. Acts as a Salesman: Advertising is a very potent and effective salesman of middlemen. 4. Price Maintenance: Customers always remain interested in getting quality products at stable prices over longer time. If the prices constantly change, the budgets of consumers are disturbed. Advertising also discourages price-haggling and bargaining with retailers.

IV. Importance of Advertising of Salesmen 1. Drives the Consumers: While marketing drives products towards the consumer, advertising helps to drive the consumer towards the salesmen at the point of sale. 2. Creates Colourful Environment: Advertising creates an inducing and colourful environment. Personal selling alone is like a song without music. 3. Lightens the Selling Job: Selling job is highly complex and difficult, if performed alone. In the absence of advertising, salesman is forced to play a double role. With the help of advertising, the salesman can easily explain the product and its benefits, can meet the objections raised by customers and may close the sale. 4. Instills Self-Confidence and Initiative: Advertising acts as a creative force. It educates the sales-force. It instills self-confidence and initiative in them. SOCIAL AND ECONOMIC ASPECTS OF ADVERTISING V. Importance of Advertising to Society and Economy 1. Socio-economic Institution: ―Advertising is only one of society‗s many institutions: It is literally imbedded in much more basic and powerful institutions such as the family, the school, the church, and the political and legal system. 2. Instrument of Social Influence and Control: It dominates the media, it has vast power in the shaping of popular standards, and it is really one of the very limited group of institutions which exercise social control. 3. Wide Power of Persuasion: Advertising is a powerful technique of persuasion in a society. Advertising is fundamentally the same psychological device that we apply daily in selling products to consumers, and selling ideas at home. 4. Component of the educational System: Advertising is basically a part of knowledge. It imparts values, cultural ideas and valuable lessons of life-styles. 5. Upholds the Culture of a Nation: Cultural values reflect a nation and its people. Culture of a nation is affected by social dynamics. Advertising accepts and maintains the value structure of society. 6. Uplifts the Standard of Living: It has been widely accepted that advertising raises the living standard of millions. It creates wants. It increases production and consumption. 7. Social Guide: Advertising has become a means of social change. It is an inseparable part of free speech. It is our social leader. It provides ideas about style, morality, behaviour.‖ 8. Generates Employment Opportunities: Advertising generates employment opportunities directly and indirectly. Direct employment is open in various jobs created by advertising such as

copy designers, copy writers, artists, painters, photographers, singers, message-writers, comperes, musicians, pressmen, executives and many others to help in advertising process. 9. Fosters Economic Growth: Advertising is a key tool used to aid a country‗s growth. It can help in improving the economies of developed and developing countries. It can stimulate increase in production and consequently generate more employment. 10. Growth of Media: The acceptance of advertising by different media enhances the potential for raising revenues. LIMITATIONS OF ADVERTISING Though advertising is multi-dimensional and powerful mass-communication, it suffers from serious limitations. Its main evils and criticisms are as follows: 1. Increase in Unnecessary Wants: Critics argue that most advertising cause people to buy things they don‗t really need. Advertising create unnecessary wants and desires which become a monetary burden on consumers and their regular budget is disturbed. 2. Increase in Costs and Prices: Critics argue that advertising increases the prices consumers pay for products and services. 3. Creates Indecisiveness: Various advertisements influence and move the desire of consumers. They all attract to buy their own products. They all pull consumers towards their own products. This creates a state of confusion conflict, and undecisiveness for the consumer. 4. Too Much Puffery and Deception: Deceptive advertising has became a major problem for the consumers. Consumers are cheated by deceptive pricing, false criticisms of competing products, deceptive guarantees ambiguous statements, false testimonials, and other ―deceptive practices.‖ 5. Arouses Emotions: Most of the advertisings arouse emotions, instigate feelings and induce desires of consumers and compel them to buy irrationally. They have difficulty in fitting the idea of persuasion and emotional approaches into their concept of the ―economic person‖ who makes decisions rationally, not emotionally. 6. Obscene and Unethical: Critics say that today advertising has become offensive and unethical. Youths are offended by increasing bad taste, violence, nudeness, obscenity, and sexuality in advertising. Such advertisements provoke ill-thoughts in the minds of people. 7. Promotes Social Evils: Many advertisings make life luxurious. They promote materialism, rather than intellectual or spiritual things. They promote the use of many objectionable products like tobacco, alcohol, cigarettes, banned drugs, etc. 8. Endangers Competition: Advertising can endanger competition. Big advertisers can monopolize the market. It makes difficult for other firms to enter the market. This results in less competition and higher prices and small firms are often driven out of business.

9. It is Wasteful: Advertising is also regarded as waste of national resources. It introduces new products, creates new tastes, new fashion and new

ESSENTIALS OF EFFECTIVE ADVERTISING 1. Relevant Message: Advertising must satisfy consumers‗ objectives by delivering them a relevant message. 2. Offers Enough Incentive: The ad must offer enough incentive for the consumer to risk change because it can show consumer how to satisfy needs in a manageable way. 3. Sound strategy: Every effective ad has a sound strategy. 4. Creative Thinking: ―The creative concept is the ad‗s central idea that grabs your attention and sticks in your memory. 5. Proper Execution: Effective ads are well-executed. It means that the message details, the photography, setting, printing, and the production values all must be fine-tuned. 6. God-Directed: Advertising must be goal-directed. Advertising must hope to achieve something. Every advertiser, deep down inside, hopes or assumes that each ad will produce sales. 7. Persuasion: To be effective, advertising must communicate and persuade. 8. Based on Reasoning: Effective advertising provokes thought on the part of the viewer, that stimulates interests, evaluation, judgment, and decision-making inside the consumer‗s mind. 9. Ad by Emphasis: Advertising by emphasis aims for small delayed effects, just enough effect to tip the scales in favour of brand A over B. 10. Continuity: It can be noted that much advertising is quickly forgotten if not continuously exposed.

FIVE M’S OF ADVERTISING

Advertising is an important promotional tool for any marketing campaign. So much so that whenever we think of marketing we think of advertising although it is just one of the marketing tools. Today government bodies as well as nongovernment organizations go for high profile advertising campaigns. The purpose here is not to increase the sales figure but to increase the awareness of people regarding the relevant topics. Today the marketing manager has a range of advertising options to choose from interpersonal communication to Internet. Deciding on a correct option calls for detailed analysis aspects like objective behind advertising (Mission), company‘s earmarked budget (Money), content of communication through advertising (Message), advertising vehicle (Media) and impact of advertising (Measurement). These can be broadly classified as the five M‘s of advertising. MISSION First of all the marketing manager must be clear on the company‘s purpose for advertising. ―Increase in sales figure‖ will be a very broad and to a certain context a vague objective. According to Mr. Philip Kotler, a renowned authority in this field, there can be three possible objectives behind advertising: Information- when a new product is launched, the purpose should only be to inform people about the product Persuasion- Persuading people to actually go out and buy the product. This objective is of paramount importance because of cutthroat competition. Any advertisement must be persuasive in nature, attracting consumers towards the brand Reminder: This objective is relevant for well-established companies. These types of advertisements only try to remind the consumers of the brand existence. For instance whenever we hear or read yeh dil maange more, we tend to think about Pepsi. Same way we tend to associate ―two minutes‖ with Maggie noodles. The marketing manager should establish a clear goal as on the purpose of advertising, information, persuasion or reminder. MONEY After the objective has been decided upon, the next step is to decide upon the budget. There are several methods for deciding on the advertising budget. The most common among them is the percentage of sales method. Under this method, a certain percentage of sales are allotted for advertising expenditure. Though this method is used widely, there are some problems with this method. The first issue is what percentage the company should take? Even if a company somehow decides a percentage figure, this would mean increase in advertising

expenditure when sales are up and less spending when sales are down. This in some ways is quite paradoxical, because logically the reverse should happen. The company needs to spend more on advertising when sales are down. But this method uses circular reasoning and views sales as cause for promotion. In fact sales are a result of promotion. Another method suggests that a company should spend as much as its competitors are spending. This method claims that it would prevent promotional wars. But then like each individual each company is also different. It may not make any sense in spending like your competitor because competitor might be on a different footing. MESSAGE As a common experience, we love some advertisements, while the others just irritate us. An appealing advertising will win consumers and will consequently induce them to purchase the product. On the other hand, irritating advertising will create an adverse effect. This is why many companies hand over this task to advertising agencies, which has professionals to make impact -making ads. The message that company wants to convey should be put in a manner that will arouse interest. Moreover it should convincingly highlight upon the products USP. What is said is definitely important but what is more important is how it is said. The tone should be appealing. Words used should be catchy and retentive. These days both electronic as well as print media are overflowing with ads. People have no time to read or see them, and therefore they have to be attractive enough to target audience‘s attention. This is the job of message. MEDIA Selecting the proper media vehicle for communicating the message goes a long way in the success of any kind of advertising. Each media vehicle has its positive and negative points with a different reach and impact. Therefore a company has to be very clear about its target audience. Choices available are Internet, TV, newspapers, magazines, direct mails, radio and hoardings. Everyone of this has its advantages and disadvantages. Companies often go in for a media mix, i.e. they select more than one of the available choices. Timing is of great significance here. Many industries face seasonal fluctuations and pass through cycles. Therefore advertising should be timed that way to take care of these fluctuations. A limited budget should be prudently allotted among these media vehicles. MEASUREMENT It is necessary that effectiveness of any advertising be judged. Only on the basis of this measurement, can further decisions regarding continuation or termination of the particular advertising campaign be taken. An ad can be judged on the basis of its reach and impact on sales. Good advertising is one that generates brand awareness and consequently brand preference. How much of sales can be attributed to advertising, is a difficult question to answer. Sales are influenced by many factors besides advertising. It is not easy to isolate the impact of advertising on sales. Nonetheless there are some advanced statistical techniques available that can be used with the help of computer software‘s like SPSS. Thus a systematic and balanced understanding of these five Ms of advertising will help in designing better advertising campaigns that create a favorable impact on the target audience.

ADVERTISING BUDGET An estimation of a company's promotional expenditures over a period of time. An advertising budget is the money a company is willing to set aside to accomplish its marketing objectives. When creating the advertising budget, a company must weigh the trade-offs between spending one additional advertising dollar with the amount of revenue that dollar will bring in as revenue. Companies can determine what level to set their advertising budget several different ways, each of which has its positives and negatives. A business can set its budget as a percentage of sales, at the same level as its competitors, as the amount required to meet a certain objective, as the entirety of its profits or as a function of the units of product it wants to sell among others. METHODS OF ADVERTISING BUDGET Each of the many ways in which to establish an advertising budget has its problems as well as its benefits. No method is perfect for all types of businesses, nor for that matter is any combination of methods. The following are the most usual methods in use today.
Percentage of sales or profits The most widely used method of establishing an advertising budget is to base it on a percentage of sales. Advertising is a legitimate business expense and should be related to the quantity of goods sold. It’s helpful to use the percentage-of-sales method because it’s quick and easy. It ensures that your advertising budget isn’t way out of proportion for your business. It’s a sound method for stable markets. But if you want to expand your market share, you’ll probably need to use a larger percentage of sales than the industry average. The percentage-of-sales method avoids some of the problems that result from using profits as a base. For instance, if profits in a period are low, it might not be the fault of sale or advertising. But if you stick with the same percentage figure, you’ll automatically reduce your advertising allotment. In the short run a small business owner might make small additions to profit by cutting advertising expenses, but such a policy could lead to a long term deterioration of the bottom line. By using the percentage-of-sales method, you keep your advertising in a consistent relation to your sales volume – which is what your advertising should be primarily affecting. Gross margin, especially over the long run, should also show an increase, of course, if your advertising outlays are being properly applied. What percentage should you use? You can guide your choice of a percentage-of-sales figure by finding out what other firms in your line of business are doing. These percentages are fairly consistent within a given category of business. Unit of sales In the unit-of-sales method you set aside a fixed sum for each unit of product to be sold, based on your experience and trade knowledge of how much advertising it takes

to sell each unit. The unit-of-sales method is particularly useful in fields where the amount of product available is limited by outside factors, such as the weather's effect on crops. If that's the situation for your business, you must first estimate how many units or cases will be available to you. Then, you advertise only as much as experience tells you it takes to sell them. Thus, if you have a pretty good idea ahead of time how many units will be available, you should have minimal waste in your advertising costs. This method is also suited for specialty goods, such as washing machines and automobiles; however, it's difficult to apply when you have many different kinds of products to advertise and must divide your advertising expenses among these products. The unit-of-sales method is not very useful in sporadic or irregular markets or for style merchandise. Objective and task The most difficult (and least used) method for determining an advertising budget is the objective-and-task approach. Yet, it’s the most accurate and best accomplishes what all budgets should:
 

It relates the appropriation to the marketing task to be accomplished. It relates the advertising appropriation under usual conditions and in the long run to the volume of sales, so that profits and reserves will not be drained.

To establish your budget by this method, you need a coordinated marketing program with specific objectives based on a thorough survey of your markets and their potential. Purchasing stream The budget for advertising to attract new customers is often based on expected total income – called a purchasing stream – from your new customer.

FACTORS AFFECTING ADVERTISING BUDGET Advertising Budget is the amount of money which can be or has to be spent on advertising of the product to promote it, reach the target consumers and make the sales chart go on the upper side and give reasonable profits to the company. Before finalizing the advertising budget of an organization or a company, one has to take a look on the favorable and unfavorable market conditions which will have an impact on the advertising budget. The market conditions to watch out for are as follows:
   

Frequency of the advertisement Competition and Clutter Market Share of the Product Product Life Cycle Stage

1. Frequency of the Advertisement
This means the number of times advertise has been shown with the description of the product or service, in the granted time slots. So here, if any company needs more advertising frequency for its product, then the company will have to increase its advertising budget.

2. Competition and Clutter
The companies may have many competitors for its product. And also there are plenty of advertisements shown which is called clutter. The company has to then increase their advertising budget.

3. Market Share
To get a good market share in comparison to their competitors, the company should have a better product in terms of quality, uniqueness, demand and catchy advertisements with resultant response of the customers. All this is possible if the advertisement budget is high.

4. Product Life Cycle Stage
If the company is a newcomer or if the product is on its introduction stage, then the company has to keep the budget high to make place in the market with the existing players and to have frequent advertisements. As the time goes on and product becomes older, the advertising budget can come down as then the product doesn’t need frequent advertising. When the market conditions are studied thoroughly, then the company has to set up its advertising budget accordingly. For setting advertising budget, there are four methods: They are as follows.






Percentage Of Sales: In this method, the budget is decided on the basis of the sales of the product from previous year records or from the predicted future sales. This is a pure prediction based method and best applicable to the companies which have fixed annual sales. But if in case there is a requirement for more promotional activities then this method has a disadvantage because there will be decrease in advertisements as the budget is fixed. Affordability: this method is generally used by the small companies. Only the companies which have funds and can afford advertising opt for this method. The companies can go for advertising at any time in whole year whenever they have money to spend. The amount spent also varies from time to time as per the advertisements takes place. Best guess: This method is basically for newcomers who have just entered the market and they have no knowledge or say they are not aware of how the market is and how much to spend on advertising. Thus, this method is applied by the higher level executives of the company as they are the only experienced people.

Thus, doing the homework and then moving forward, i.e. searching for best market conditions and setting the best advertising budget will have a great impact on improvement and development of the company.

ADVERTISING MEDIA The media planner has to know the capacity of the major media types of delivery, reach, frequency, and impact. The major advertising media are: a) Newspapers b) Television c) Direct mail d) Radio e) Magazines f) Outdoor g) Yellow Pages h) Newsletters i) Brochures j) Telephone k) Internet Evaluating Advertising Effectiveness: An advertising measurement is adopted both before and after an advertising campaign is launched. While the advertising plans are being implemented, the advertiser and the producer must know the extent of the success that has been achieved. The competitors‗ success, the producer‗s objectives, the tasks given to distributors, price policy, etc. all these are considered while measuring advertising effectiveness. The methods of measuring this effectiveness are explained in the light of objectives, the measuring of sales and communication performance. AD COPY AND AD AGENCY The word ―copy‖ has specific meaning in the world of advertising. Copy is the soul of advertisement. An advertising copy is all the written or spoken matter in an advertisement expressed in words or sentences and figures designed to convey the desired message to the target consumers. In a print media an advertisement copy is made-up of head-line, sub-headlines, both of the copy, illustration, long-type, slogan and brand name. Approaches to Copy Writing A successful copy writer is to answer the following questions to get much out of it. These questions are: 1) What am I advertising? 2) To whom am I advertising? 3) How can I convey best the advertising message to my readers? 4) Where and how the product is being sold? 5) When the product is purchased and used? 6) What legal implications are involved? Layout A layout is a miniature sketch or the proposed advertisement. A rough layout is first prepared in which the headline and subheads are lettered in artwork and photographs are drawn or provided, and the4 position of the copy is indicated. The rough layout is tested and modified to prepare the

final layout. The final layout is appended with many explanations and mechanical designs to give a comprehensive view. It refers to specifications for estimating costs, guidance for engravers and blueprints for advertisers. Layout‗ means two things; in one sense, it means the total appearance of the advertisement – its design and the composition of its elements; in another sense, it means physical rendering of the design for the advertisement – its blueprint for production purposes. Functions of the Layout 1) It Organizes all the Elements 2) It Brings Together Copy Writer and Art Director 3) It Enables the Advertiser to Visualize his Future Advertisement. 4) It Acts as a Guide to the Copy Specialists.

Advertising Agency and its function Advertising agency is an independent business organization specialized in advertising work which undertakes the work of planning, preparing and executing advertising campaign for its clients. It is a body of experts who specialize in advertising. 1) Planning: Planning here referred to study of client‗s product, or services, to identify it s inherent qualities in relation to competitor‗s product, analysis of various components of marketing environment and formulation of advertising plan. 2) Preparing: It refers to writing, designing and producing the advertisement. It is mainly related to formation of ad-copy. 3) Executing: It means contacting right kind of media for time and space, delivering the ads in appropriate form, checking and verifying advertisement release in media, paying the media, billing the clients etc. According to American Marketing Association, ―An advertising agency is: i) An independent business organization, ii) Composed of creative and business people, iii) Who develop, prepare and place advertising in advertising media, iv) For sellers seeking to find customers for their goods and services.‖ Functions of Advertising Agency 1) Contacting Clients: Ad-agency‗s first and foremost task is to contact and select clients who are desirous of advertising their products or services. The preference in choosing the clients is given to those firms which are financially sound, make good quality products and services and have efficient management. 2) Advertising Planning: Another function of advertising agency is planning the ad for its clients. For this, the agency has to perform following tasks: i) Study of client‗s product to identify its inherent qualities in relation to competitor‗s product. ii) Analysis of present and potential market for the product iii) Study of trade and economic conditions in the market. iv) Information about season when maximum sale can be made. v) Information about level of competition, competitor‗s spending on advertising. vi) Knowledge of channels of distribution, their sales, their methods of operation, etc. vii) Formulation of advertising plan.

3) Creative Function: According to David Ogilvy, ―Creative function is the most important of all advertising functions. The copywriters, artists, art-directors and graphic-specialists are referred as creative people.‖ 4) Developing and Preparing Advertising Copy: Ad-agency is a specialized organization and involves specialists such as: writers, artists, market-analysts, website-designers, animators, graphic-designers, researcher, film director etc. i) Ad-Copy for Print-Media ii) Ad-Copy for Broadcast Media 5) Approval of Client: After that the ad-copy is prepared, it is shown to client for his approval. 6) Media Selection and Media Scheduling: Another important function of ad-agency is selecting appropriate media for its clients. Various factors like media cost, media circulation, media coverage, nature of product, nature of customers, ad-budget of client, needs of clients, etc., are considered by ad-agency for selecting media for its clients. 7) Ad-Execution: After obtaining approval from client, the advertising copy is handed over to media for its execution. 8) Evaluation Function: The next major function of ad-agency is to evaluate the effectiveness of advertisement for the benefits of its clients. 9) Marketing Function: The advertising agency also performs marketing functions, such as selecting target-customers, designing products, packages, developing channels of distribution, determining prices; new product development, conducting marketing research, sales promotion, publicity, improving public relations, etc. 10) Research Function: It includes continuous research regarding different media, their circulation, media-cost, entry of new newspapers/magazine, collecting information about rating of various TV programmes, serials so that time of ad can be decided. 11) Accounting Function: Accounting function of agency includes checking bills received from media, cash discount allowed by media billing to client, collection of dues from clients, making payment to media, payment to outside professionals like-writers, film-producers, models, making payment for purchasing advertising materials, salary to staff, etc.

Types of Advertising Agencies 1) Full service agency, 2) In house agency, 3) A creative boutique, 4) Media buying services, 5) The La carte agency,

6) Special service agency (Group) 7) Sweet shops 1) Full-Service Agencies: Many companies employ what is known as a full-service agency, which offers its clients a full range of marketing, communications, and promotions services, including planning, creating, and producing the advertising; performing research; and selecting media. A full-service agency may also offer no advertising services such as strategic market planning; sales promotions, direct marketing, and interactive capabilities; package design; and public relations and publicity. 2) In-House Agencies: An in-house agency is often referred to as the advertising department in a firm and takes responsibility for the planning and preparation of advertising materials. This option has the advantage of greater coordination and control in all phases of the advertising and promotion process. Some prominent advertisers who do most of their work in=house are Gap, Calvin Klein, and Revlon. 3) Creative Boutiques: A creative boutique typically emphasizes creative concept development, copywriting, and artistic services to clients. An advertiser can employ this alternative for the strict purpose of infusing greater creativity into the message theme or individual advertisement. As one advertising expert put it, ―If all clients want is ideas, lots of them, from which they can pick and mix to their hearts‗ delight, they won‗t want conventional, full-service agencies. They all want fast flashy fee-based idea factories.‖ Creative boutiques are these idea factories. A creative boutique is an agency that provides only creative services. These specialized companies have developed in response to some clients‗ desires to use only the creative talent of an outside provider while maintaining the other functions internally. 4) Media Buying Services: Media buying services are independent companies that specialize in the buying of media, particularly radio and television time. The task of purchasing advertising media has grown more complex as specialized media proliferate, so media buying services have found a niche by specializing in the analysis and purchase of advertising time and space. Agencies and clients usually develop their own media strategies and hire the buying service to execute them. 5) A La Carte Agency: Some advertisers prefer to order a la carte rather than using all of an agency‗s services. A la carte services can be purchased from a full service agency or from an individual firm that specializes only in creative work, media, production, research, or new product development. 6) Special Service Agency (Group): Some agencies focus their efforts only in some selected areas and then become specialists in those areas. These firms collectively are called special service groups and they are by far the least known component of the advertising industry. For example, if an agency is specializing in direct response advertising either in media or direct mail, knowledge of their availability and function is vital if the structure of the advertising business is to b fully understood. 7) Sweet Shops: These agencies are very small agencies, which operate only in one city. Their cost is less and their service personalized. These agencies are very useful for small clients, who

wants to issue ads in local media, like as in local cable, pamphlets, banners, evening newspapers etc. Different aspects, on the basis of which a company Selects an Advertising Agency The advertiser should select that advertising agency whose talent, experience, record matches with the requirements of advertiser. Following factors should be considered while selecting an advertising agency: 1) Location: A major consideration in the choice of an advertising agency is location of office of agency. Local and nearby ad-agencies should be preferred. A considerable amount of communication is required at various stages of decision making with regard to ad-planning and ad-execution. Outstation advertisers are at a disadvantage as the costs of regular visits may be high. So it is desirable that office of ad-agency is located nearby and is easily accessible. 2) Size: Both large size-agencies and small-size agencies have their own merits and demerits. Large-agencies provide wide range of facilities, services and have more experienced staff. But large-size agencies have certain limitations viz. these are costly, these cannot give personal attention to all clients because of large number of clients, these don‗t give much attention to small clients as these agencies have many big clients. 3) Agency Working for Competitors: Advertiser should avoid giving his advertising work to an agency that handles the advertising work of his competitor. Because in that case ad-agency may not be in a position to prepare ads which help the advertiser to take an edge over competition and agency will not prepare such ads which go against advertiser‗s competitors, i.e., agency will not make competitive ads for advertiser. 4) Image of Agency: Before selecting the ad-agency advertiser should enquire about its image, integrity, its ethical standards, and its relation with clients, etc. 5) Services Offered by Ad-agency: Now-a-days ad-agency give wide range of services like planning and preparation of ad, execution of ad, selection of media, follow-up to evaluate adeffectiveness, salespromotion, public-relation, publicity, market analysis, market-research, etc. 6) Rates Charged: The rates charged by the advertising agency should be quite reasonable. These rates should suit the pocket of client and should be within ad-budget of client. 7) Creative Skills and New Ideas: Creativity is the main element of advertising. If the adagency is capable of generating new ideas which are creative and unique then its ads will be more successful in attracting the attention of target audience. 8) Past Record of Agency: Past record of ad-agency should be checked to know: i. Who were the past clients of agency; why they left the agency; how long were they with agency, how big were they?

ii. Who are the present client, how big are they; since how long are they with agency, their relationship with agency? iii. Brand-image of products of agency‗s clients. 9) Quality and Caliber of Staff: Ad-agency has various specialists like copy-writers, market analysis, media experts, art-directors, researchers, artists, models, etc. 10) Financially Sound: The ad-agencies which are financially sound-and have good turnover have better contacts with media-owners. Financially sound agencies can afford better infrastructure, well-equipped-ad labs, and specialists, national and international image. 11) Agency Experience: Agency which has long existence generally performs better because of its experience and familiarity with different components of marketing environment like competitor‗s policies, tastes of consumers, income of consumers, fashions and trends, circulation and reputation of different media.

Sponsor Documents

Or use your account on DocShare.tips

Hide

Forgot your password?

Or register your new account on DocShare.tips

Hide

Lost your password? Please enter your email address. You will receive a link to create a new password.

Back to log-in

Close