Introduction to Advertising and Sales Promotion

Advertising is a powerful communication force, highly visible, and one of the most
important tools of marketing communications that helps to sell products, services, ideas
and images, etc. Many believe that advertising reflects the needs of the times. One may
like it or not but advertisements are everywhere. Advertisements are seen in newspapers,
magazines, on television and internet and are heard on radio. The average consumer is
exposed to a very large number of advertisements every day, particularly the urban and
semi-urban population.

1. Advertising and Sales Promotion Dr DINESH S Assistant Professor Management Sciences Sri Ramakrishna College of Arts & Science (Autonomous) Coimbatore - 641 006 Tamil Nadu, India

2. Introduction Advertising is a powerful communication force, highly visible, and one of the most important tools of marketing communications that helps to sell products, services, ideas and images, etc. Many believe that advertising reflects the needs of the times. One may like it or not but advertisements are everywhere. Advertisements are seen in newspapers, magazines, on television and internet and are heard on radio. The average consumer is exposed to a very large number of advertisements every day, particularly the urban and semi-urban population.

3. Marketing-Mix and Promotion-Mix The marketing mix is the combination of elements necessary to the planning and execution of the total marketing operation. The ‘Four Ps’ concept of the marketing mix, developed by Philip Kotler, and widely adopted by marketing teachers, creates four division of the mix, namely, product,, price, promotion and place. Advertising comes under promotion. Under promotion mix there are several components like advertising, personal selling, sales promotion, publicity, direct marketing etc

4. Advertising– Definition “Advertising is any paid form of non-personal presentation and promotion of ideas, goods and services by an identified sponsor.” – American Marketing Association . “Advertising is controlled, identifiable information and persuasion by means of mass communications media.”

5. What Advertisement Is? ( i ) It is a mass communication reaching a large group of consumers . (ii) It makes mass production possible. (iii) It is paid non-personal communication, not delivered by an actual person, nor is it addressed to a specific person. (iv) It is a commercial communication because it is used to help assure the advertiser of a long business life with profitable sales. (v) Advertising can be economical, for it reaches large groups of people. This keeps the cost per message low. (vi) The communication is speedy, permitting an advertiser to speak to millions of buyers in a matter of a few hours. (vii) Advertising is identified communication. The advertiser signs his name to his advertisement for the purpose of publicizing his identity

6. What is Included in Advertising? ( i ) The information in an advertisement should benefit the buyers. It should give them more satisfactory expenditure of their rupees. (ii) It should suggest better solutions to their problems. (iii) The content of the advertisement is within the control of the advertiser, not the medium. (iv) Advertising without persuasion is ineffective. Advertisement that fails to influence anyone, either immediately or in the future, is a waste of money. (v) The function of advertising is to increase the profitable sales volume. That is, advertising expenses should not increase disproportionately.

7. Advertising Objectives Each advertisement is a specific communication that must be effective, not just for one customer, but for many target buyers. This means that specific objectives should be set for each particular advertisement campaign. Advertising is a form of promotion and like promotion; the objectives of advertising should be specific. This requires that the target consumers should be specifically identified and that the effect which advertising is intended to have upon the consumer should be clearly indicated. The objectives of advertising were traditionally stated in terms of direct sales

8. Importance of Advertising Generally, advertising is a relatively low-cost method of conveying selling messages to numerous prospective customers. It can secure leads for salesmen and middlemen by convincing readers to request more information and by identifying outlets handling the product. It can force middlemen to stock the product by building consumer interest. It can help train dealers salesmen in product uses and applications. It can build dealer and consumer confidence in the company and its products by building familiarity. Advertising is to stimulate market demand.

9. Classification and Types of Advertising 1. Product – Related Advertising A. Pioneering Advertising B. Competitive Advertising C. Retentive Advertising 2. Public Service Advertising 3. Functional Classification A. Advertising Based on Demand Influence Level. a. Primary Demand (Stimulation) b. Selective Demand (Stimulation) B. Institutional Advertising C. Product Advertising a. Informative Product Advertising b. Persuasive Product Advertising c. Reminder-Oriented Product Advertising

10. Functional Classification Advertising may be classified according to the functions that it is intended to fulfill. ( i ) Advertising may be used to stimulate either primary demand or selective demand. (ii) It may promote either the brand or the firm selling that brand. (iii) It may try to cause indirect action or direct action.

11. Industrial Advertising To inform, To bring in orders, To induce inquiries, To get the advertiser’s name on the buyer’s list of sources, To provide support for the salesman, To reduce selling costs, To help get items in the news column of a publication, To establish recognition for the firm or its product, To motivate distributors, To recognition for the firm or its products, To motivate distributors, to create or change a company’s image, To create or change a buyer’s attitude

12. Planning Framework Advertising planning and decision making depends on internal and external factors. Internal factors are situation analysis, the marketing program, and the advertising plan. The three legs of advertising planning concern are the Objective setting and target market identification, Message strategy and tactics, and Media strategy and tactics.

13. Advertising Agencies- the Indian Scenario As of 2004-05, there are 775 accredited advertising agencies in India, besides hundreds of smaller ones looking for accreditation to be engaged in national advertising. In order to get credit facilities and full agency discounts from the media, agencies need to get accreditation from the Indian Newspaper Society (INS).

14. Purpose of Advertising Agency Advertise and counsel on marketing strategy. Advice and counsel on advertising and media strategy and tactics Prepare and develop print, outdoor and electronic advertisements. Carry out collateral design of various items such as display material, PoP material and other promotional material. Help and counsel on sales promotion and other communication task

15. Advantage of Using Agencies 1. The marketer gains a number of benefits by employing agencies. An agency generally has an invaluable experience in dealing with various advertising and marketing issues. 2. The lessons which agency learned in working with other clients are useful inputs for the marketer. 34 3. An agency may employ specialists in the various areas of preparation and implementation of advertising plans and strategies. 4. The personnel are not members of the marketer’s management team. They bring objective and unbiased viewpoints to the solution of advertising and other marketing problems.

16. Selecting an Agency in mind. An agency takes a long time to grasp the problems and accumulate the facts that are necessary for the smooth functioning of a client. Though this investment period is long, it pays rich dividends. Therefore, an agency should not be frequently changed. Here are some points that can help the advertiser to: ( i ) Choose an agency ; and (ii) Get the best out of an agency

17. Choosing an Agency The agency should be able to think independently on various problems, and not solve them by pre-conceived notions which it is unwilling to change. The agency should have experience in selling goods and ideas. It should be able to bring in more results than anticipated. The company should be financially sound and should be able to cover both local and national advertising campaigns.

18. Setting Advertising Objectives ➢ Message About Product – Details about the product play a prominent role in advertising for new and existing products. In fact, a very large percentage of product- 39 oriented advertising includes some mention of features and benefits offered by the marketer’s product. Advertising can be used to inform customers of changes that take place in existing products. For instance, if a beverage company has purchased the brands of another company resulting in a brand name change, an advertising message may stress “New Name but Same Great Taste”

19. Strategic Planning Process All marketing communication must be consistent with, and in support of, the overall marketing plan. Before a manager even begins to think about specific communication issues, it is important to review the marketing plan. Once this review is completed, it is then helpful to outline briefly ‘what we know’ about the market and the specific marketing objectives and goals for the brand. This sort of information often has a significant bearing upon what it is that you will want to communicate to your target audience, and it provides important background information for those charged with creating massage.

20. Advertising Budget Strategy The size of the advertising budget can have an impact upon the composition of the advertising mix. In general, a limited promotion budget may impel the management to use types of promotion that would not be employed otherwise, even though they are less effective than the others. Industrial firms generally invest a larger proportion of their budgets in personal selling than in advertising, while the reverse is true of most producers of consumer goods. Organizations with small budgets may be forced to use types of advertising that are less effective than others

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