MCOM 2nd Year Methods Of Product Promotion Study Material Notes Study Material Notes Sample Model Practise Papers Chapter Wise Question With Answer
METHODS OF PRODUCT PROMOTION
The methods of product promotion are as under:
(ii) Personal seiling
(iii) Direct mail
(iv) Sale literature
(vi) Word of mouth communication
(vii) Fairs and exhibitions
MEANING OF ADVERTISING
Advertising plays crucial role in international marketing
tool to spread abroad ideas and information regarding product or service to persuade the action in accordance with the eager attention of the advertiser or advertising refers to the corporate sponsored messages transmitted through the mass media.
The sales goals may be achieved easily by successful advertising campaign. Indeed, more and more companies make a heavy amount to advertisement successful. A successful advertisement requires to make profitable international operations.
For example : Global advertising expenditures were estimated to be $335 billion in 1998 and projected to increase to $362 billion by 2002.
In the words of William J. Stonton, “Advertising consists of all the activities. involved in presenting things before to an audience, i.e., a non-personal, sponsor identified, paid for message about a product or organisation”.
Advertising is also explained as promotion and presentation of ideas which are non-personal, and goods and services are provided by identified sponsor. The presented and disseminated idea is called ‘advertisement! A successful advertisement is not possible without some activities. It may not called completed without those activities because those performances are necessary to prepare the advertisement. Those activities are integral part of advertisement they make it complete and enable to serve the people.
FEATURES OF INTERNATIONAL ADVERTISING
According to American Marketing Association, “Any paid form of nonpersonal presentation and promotion of ideas, goods and services of an identified sponsor”. On the basis of above definition, an advertising have following features:
1. Advertising is a Paid form of Communication. Advertiser presents his advertisement in newspapers, magazines, cinema screen, televisions. He may present the advertisement in these sources by purchasing some space or time in those sources.
2. International Advertisement is Non-personal Presentation of Idea. In the international marketing it is not possible to establish a direct relationship or face to face contact with foreign customers. So, it is explained as non-personal salesmanship. The foreign customers are related with various countries and it is not possible to presenting products and promoting ideas, them personally.
3. The Purpose of International Advertising. The objective of international advertising is to provide information about product and services of a business to foreign customers. An advertising helps to increase overseas sales.
4. International Advertisement is issued by an Identified Sponsor. Non-disclosure of the name of the sponsor in ideas spreads for such a purpose may cause of twist out no normal shape, fraud and manipulation. So, 10 is necess ponsor must be identified.
OBJECTIVES OF INTERNATIONAL ADVERTISING
An advertisement is made to sell the product market. The main objective of the advertising is to increase the sales in foreign market. Other objectives of international advertising are as under:
(i) Advertising create a craze about product in foreign market. This interest in introducing a new product. Because foreign customers ar already aware of this product through advertising. Thus, the objective international advertising is to introduce a new product by creating interest for it among the foreign customers.
(ii) Some companies use door to door selling or personnel selling. They do not have retail shop. If a customer want to purchase the product of that company, he can contact to office and salesman will deliver the product. Foreign customers come to know about that product through advertisement. Such as Eureka Forbes.
(iii)The advertisement works as a magnate to attract the foreign or
domestic customers toward a product or service.
(IV) As we know it is very hard to establish ourself in market because of fierce competition at global scale. An exporter competes with foreign competitors through successful advertising. Advertising helps to fight competition and increase international sales…
(V) Advertisement provide true information about product or service. The
true information increases the goodwill of enterprise because enterprise do as promised in advertisement for providing better quality.
(vi) International advertising also helps to minimise the fear of selling the product in foreign market. Advertisement spread the message about new product among foreign customers. Advertising also supports the dealers in selling the product in global market. –
FUNCTIONS OF INTERNATIONAL ADVERTISING
Advertising is a very important part of international marketing. It performs the following functions :
1. Sales Promotion. Advertising provide information about new product to foreign customers. More people purchase the introducing product by attracting advertisement and it promote sales. A good advertising campaign helpful in inäking or increasing new customers both home and host country.
2. Introduction of New Product. Advertising is very helpful in introduction of new product or service in foreign and domestic country. Advertising may also introduce a business enterprise to the public. Without advertising it is not possible to make a position in global market. Specially a new enterprise can not expend his business without the help of advertising. Because advertising enables quick publicity in international market.
3. Making of Good Public Image. Advertising creates a good image of producer or seller. Even, there are seves al competitors present in market. Advertising enables a enterprise to comm nicate its achievements in an effort to fulfill customers needs. Which firm do so increase the puoi vill and reputation of its own. Good reputation and image are very useful to fight competition.
4. Mass Production. Advertising facilitate large scale prodon Advertising make a firm enable to determine the quantity that may be called mass production and it reduces the per unit cost of proancti optimum use of limited economical resources.
5. Research and Developmert. Research and development activities are more active in international advertising. Advertising has become a tool of competitive marketing. Advertising helps a firm to differential the product of every substitute firm. To make their product unique business firm do more and more research. Researches and development help to introduce new product in global market and making necessary changes and improvements.
6. Knowledge of Customers. Advertising provide necessary information to increase the knowledge of consumers about product. Advertising is a source of gaining knowledge or widen knowledge about the use of new product. People enable to use new products and giving up old one.
For example: Kellog’s corn flakes and maggie noodles are the good example of using new product world wide. Customer’s use Kellogs because this is healthy and nourishing. Customers gain the knowledge about these product through advertising.
Advertising is a very helpful in modern era. A country can sell his products in other country successfully through advertisement.