MBA Ad Budget Long Sample Model Paper in English
MBA Ad Budget Long Sample Model Paper in English
Ad budget, Methods of budgeting, Measuring effectiveness of advertisement, Legal and Ethical concepts and issues in advertising, Global vs. Local advertising, Decision areas in international advertising, Media planning and strategy-Media types and their characteristics, Setting media objectives; Steps involved in media planning Media strategy, Emerging concepts and Issues in marketing communications
LONG ANSWER QUESTIONS
0.1. Describe the methods of advertising budget.
Ans. Methods of Advertising Budget
Actually, there are no scientific methods available which can be employed in determining the approaches which may serve as guide unto of the advertising fund to be spent during a given period. However, there Much may serve as guidelines to advertising appropriation decisions. These approaches are called methods. These should not be employed blindly because there is no single method which applicable to all the situations and may provide correct results. The popular methods who re as follows: commonly used in determining advertising appropriation or for framing the advertising budget are as follows:
- Affordable Method
In this method, one has to find out what the company can afford in a given business Studio Particularly, those companies which have limited resources use this method. When funds availabiny 15 a constraint, a limited fund is allocated after other unavoidable expenses have been duly met. Under this method, it is usually assumed that advertisers do not spend too heavily, Also advertising activity is blocked-up at last.
Merits and Demerits (Weaknesses): Since the company does not spend more than it can afford and therefore, there is an element of financial discipline in this method. Nevertheless, this method suffers from the following weaknesses:
- The budget decisions are left to the whim of the management and thus are not based on
rational business needs. Whims are most irrelevant and subjective rather than based on an objective approach.
- It overlooks the contributory rule of advertising in the achievement of marketing objectives.
- It also ignores the need, importance, nature of advertisement and other factors like – long-range planning of advertising investment. On the whole, affordable method is not a scientific one and hence is used by small companies only.
- Percentage of Sales Method
Under this method, the amount to be appropriated to advertising is arrived at by multiplying the value of past year’s sales or the projected sales for the budget period with a pre-determined percentage. It may be explained as under:
Amount = Advertising Appropriation Past year’s sales or anticipated sales or both X Predetermined percentage.
The sales on which advertising appropriation is based, may be historical, immediate past year’s or an average of past years or anticipated or both. Percentage figures, on the other hand, may be arrived at on the basis of management’s historical experience, judgment or industry practice.
Merits: This method is most popular with management on account of the following reasons.
- It is a very simple, workable and relatively safe method.
- Since it directly relates advertising expenditure to sales, it seems to be very satisfactory
- It encourages management to think in terms of the relationship between advertise
expenses, prices and profits.
- By relating appropriation to sales, this method ensures that the advertiser will spend
what he can afford. Advertising will earn its share out of sales.
- It helps the industry in preventing advertising wars because advertising expenses are
proportional to market share/sales.
Demerits or Weaknesses: Inspire of being the most popular method of framing advertising budget, this method is subject to criticism on account of the following weaknesses:
- It considers advertising as the result of sales whereas the fact is that it is the cause of sales
- It discourages experimentation with counter-cyclical advertising and aggressive selling.
- It does not provide a logical basis for the choice of a multiplier, i,e percentage.
- It militates against the planning of long range advertising programmers.
- It represents a static approach to advertising and does not allow it to respond to market needs and advertising opportunities. For example, when sales decline for some reasons, a better course of action might be to maintain the level of promotional activity until the sales decline can be corrected.
- It is not a scientific method. Inspire of the above weaknesses and criticisms, percentage of
sales method is very popular and is widely used in Indian industries also.
- Competitive Parity Method
This method envisages determination of advertising appropriation in such a way that a company maintains a parity with its competitors’ advertising outlays. This method is based on the principle that we are at par with competitors. Spend as much as the competitors do. Here, advertising is taken as a defensive device and not an offensive tool to achieve marketing objectives. Advertisers want to spend as much as their competitors are spending so that they are not placed at any disadvantage. For this purpose, company has to collect relevant data about competitors’ advertising appropriation, for example, previous year’s absolute figures, advertising/sales ratios, etc.
Merits: The merits of this method are as follows:
- This method is most appropriate where competition is rigorous as the management is
supposed to keep itself in line with its competitors. Under this method, the management
always keeps himself alert
- It reduces considerably the possibilities of advertising wars amongst competitors.
- It enables the management to maintain or increase its share of the market in accordance with
the objectives of the company.
- It enables the management to monitor the marketing programmers of its competitors.
Thereby, the marketing strategy may be changed accordingly.
Demerits or Weaknesses: The method has the following demerits:
- It is not a rational method because the need, size, problem, opportunities and resources of
every company vary considerably from each other. These are hardly similar to each other.
- There is no empirical or other evidences to suggest that competitive parity in advertising
appropriations has prevented advertising wars.
- The use of competition as a yardstick for appropriation makes it easy for a company to ignore the needs of analyzing the realities of its own competitive situation and to visualize the possibility of other and better available strategies.
- objective and Task M.method
Objective and task method for framing the advertising budget is considered to be the most desirable and realistic method. It is also known as ‘research objective method. 1 vest to be achieved and the task involved tin of advertising funds on the basis of objectives to be achieved and the tee means that advertising objectives are set for the coming budget period e set for the coming budget period and the cost of antes the appropriation level.
In short, this method includes:
1.Defining advertising objectives as far as possible in quantitative terms.
2 Outlining and listing tasks to be performed in achieving these objectives.
- Estimating the cost of performing these tasks. This method takes into consideration
That advertising is an investment and an effective vehicle of achieving company objevtives.
Merits: The merits of this method are as follows:
- This method is more realistic, imaginative, objective and replaces the rule of therule of thumb and customary thinking.
2 It forces the management to think in terms of advertising objectives and awakens it to
need for their achievement
- It is flexible and may be adapted to changing company needs.
- This method has a special merit in the introduction of a new product.
- It does not operate on the inaccuracies of the percentage of sales basis,
Demerits or Weaknesses: The demerits of this method are as follows:
- This method is difficult to use, for it calls for adequate research data and past experience.
- This method objective-oriented. However, its objectives are ill-defined, the whole expenditure and the efforts will then go to waste.
- It is difficult to translate objectives into task that will lead to objective achievement. On whole, this objective and task method is more rational, realistic, pragmatic and need based as compared to other methods.
- Return on Investment Method
In this method, money spent on advertisement is considered as an investment and not an expenditure. It is an investment in the sense that a certain return in terms of profit is expected under this method. The advertising budget is prepared under this method by taking into account the increased profits generated by an increase in sales and goodwill on account of advertising. If sales and profits are higher, the excess may be assumed to be the result of advertising.
The major problem in this method, however, is that the return is very often spread over a period of time, hence it may be difficult to arrive at an appropriate budget appropriation on the basis of this method. Inspire of this problem, the return on investment method is no doubt a realistic way of approaching the problem because it correlates the sales and profits generated by advertising.
- Judgment Method
Judgment method of framing an advertising budget is based upon the judgment of experienced managers of the company. This method is also referred as the ‘arbitrary method’ because it is based on the arbitrary thinking of some experienced managers only, and is not based on any scientific lines.
This method involves no clerical or statistical or field work. It is solely based upon the experience and judgment of some old and experienced managers. They frame the advertising budget considering all situations, i.e. objectives, anticipated behavior of the customers and the competitors, market to be covered, types and cost of media, etc. Although this method is very cheap and simple but is not reliable as it is based on the subjective approach of its experienced managers and is subject to bias and error.
- Fixed Sum per Unit Method
This method is similar to the percentage of sales method except that a specific amount appropriated rather than a percentage of the value of sales. The advertising appropriate based on units of a product sold in the previous period or on a forecast of unit sales in f period.
This method is most suitable in advertising appropriation in advertising appropriations for industrial and durable products. The most important advantage of this method is that despite price changes ad appropriation may be kept unaltered.
Q.2. Discuss the methods used to measure the effectiveness of advertisement. Why is the avail of advertising effectiveness necessary?
Ans. Methods to Measure the Effectiveness of Advertisement
There can be three sets of methods to measure the effectiveness of advertisement ne pre-testing, concurrent testing and post-testing methods.
- Pre-testing Methods
- Check-list Test: A check-list is a list of good qualities to be possessed by an effort advertisement a typical check-list provides rating scale or basis for ranking the ads in terms of u characteristics. These characteristics may be honesty, attention getting, readability, reliably convincing ability, selling ability and the like. The ad that gets highest score is considered as the best.
- Opinion Test: Opinion test or consumer jury test is one that obtains the preference of a Sam group of typical prospective consumers of the product or the service for an ad or a part of it members of the jury rate the ads as to their head-lines, themes, illustrations, slogans, by dries comparison Getting preference from a juror is better than getting it from a member of general public an ad expert.
- Dummy Magazine and Portfolio Test: Dummy magazines are used to pre-test the ado under conditions of approximation resembling normal exposure. A dummy magazine contains standard editorial material, control ads that have been already tested and the ads to be tested. The sample households receive these magazines and the interviews are conducted to determine recall scores.
Portfolio test is like that of dummy magazine test except that the test ads are placed in a folder that contains control ads. The respondents are given these folders for their reading and reactions. The test scores are determined in the interview. The ad with highest score is taken as the best.
- Inquiry Test: It involves running two or more ads on a limited scale to determine which is most effective to terms of maximum inquiries for the offers made. These inquiry tests are used exclusively to test copy appeals, copies, illustrations and other components.
Any of these elements may be checked. The point that is to be checked is changed and all other components are unaltered to get the score.
- Mechanical Tests: These mechanical tests are objective in nature unlike the one already explained. These help to provide good measures as to how respondent are eyes and emotions reaching a given advertisement. The most widely used mechanical devices are:
(a) Eye movement camera (b) Percept scope
(C) Psycho-galvanometer and (d) Tachistoscope.
- Concurrent Testing Methods
- Co-incidental Surveys: This is called as coincidental telephone method also whereby a sample of households is selected, calls are made during the time programmed broadcast, the respondents are asked whether their radio or television is on and if so, to what station or programmed it is tuned? The results of the survey are used to determine the share of response for the advertisement or the programme.
- Consumer Diaries: This method involves giving the families selected in advance on
Errs of the family. The selected families and individual respondents are
Put the programmed they listen or view. The diaries are collected radically to determine the scores.
- Mechanical Devices: The mechanical devices used to measure the ad differences more common to broadcast media. These are:
(a) Audio meters, (b) Psycho galvanometer (c) Tachistoscope and (d) Truck electronic mm
- Traffic Counts: Traffic counts are of special applicability to outdoor advertise
deal of information through traffic counts. This counting is done by independent which may be private or public, This work is also undertaken by advertising agencies, Forestall many automobiles and other vehicles were exposed to a bulletin board or a poster or a wall paining and how many times? All this can be determined.
III. Post-testing Methods
- Inquiry Tests: It is a controlled experiment conducted in the field. In inquiry test, the number consumer inquiries produced by an advertising copy or the medium are considered as to the measure o its communication effectiveness.
Therefore, the number of inquiries is the test of effectiveness which can be produced only when the ad copy of the medium succeeds in attracting and retaining reader or viewer attention. To encourage inquiries, the advertiser offers to send something complimentary to the reader of me replies.
- Split-run Test: A split-run test is a technique that makes possible testing of two or more ads ire the same position, publication, issued with a guarantee of each ad reaching a comparable group o readers. It is an improvement over the inquiry test in that the ad copy is split into elements like appeal layout headline and so on. Here also, the readers are encouraged to reply the inquiries to the keyed o the given address.
- Recognition Tests: Recognition is a matter of identifying something as having seen or hear. before. It is based on the memory of the respondent. It attempts to measure the ad effectiveness b determining the number of respondents who have read or seen the ads before. To arrive at the results readership or listenership surveys are conducted.
- Recall Tests: Recalling is more demanding than recognizing as a test of memory. It involve respondents to answer as to what they have read, seen or heard without allowing them to look at listen to the ad while they are answering.
There are several variations of this test. One such test is triple association test which is designed t test copy themes or the slogans and reveals the extent to which they have remembered.
- Sales Tests: Sales tests represent controlled experiment under which actual field condition than the simulated are faced. It attempts to establish a direct relationship between one or moon variables and sales of a product or service. It facilitates testing of one ad against another and on medium against another.
Thus, ad effectiveness testing is a must to avoid costly mistakes, to select the best alternative for the apparently equal alternatives, to resolve the differences of opinion and to add to the store knowledge having deep bearing on advertising effectiveness and efficiency. Ad effectiveness testis can be at three levels namely, prior to, during and after the release of an ad.
There are many methods to choose. The final results depend on the validity, reliability and t relevance of each method employed. Testing, if done in good faith, can payout its costs and rib dividends too.
Reasons for Evaluation of Advertising Effectiveness
Following are the reasons for which the evaluation of advertisement effectiveness becomes necessary:
- Achievement of Advertising Objectives: Evaluation of advertising effectiveness helps in evaluation of achievement of advertising objectives of the enterprise Some of the objectives are:
(a) To increase the goodwill of the enterprise.
(b) To increase the sales of the enterprise.
(C) To aware the consumers about the products of the enterprise and the enterprise itself.
- Heavy Expenditure on Advertising Programmers: Heavy amount of money is spent advertising these days by all the enterprises. Evaluation of advertising effectiveness helps to deer whether it is useful to spend such a heavy amount on advertising or not
- Control on Advertising Expenditure: Evaluation of advertising expenditure helps controlling advertising expenditure also. This must be within the limit so that it may not have adverse effect on the price of products.
- To Study Comparative Usefulness of Various Advertising Media: There are many media advertisement and an enterprise always wants to advertise through best media which can be decided by evaluating advertising effectiveness.
Qus.3. Discuss the role of international advertising and promotion.
Ans. – Role of International Advertising and Promotion
As a component of integrated marketing communication mix, advertising and promotion playa large number of roles in the international market. These roles that had made it relevant to global brands can be discussed under two major subheadings:
- Role of Advertising and Promotion in Marketing Mix
Marketing mix consists of four important variables of marketing, i.e. 4Ps Product, Price, Promotion and Place. Apart from the traditional 4Ps, there are also other variables, i.e. Packaging, Positioning and Pace. Advertising is an element of promotion. However, it not only assigns in promoting the product, but also affects the other variables of marketing mix. This can be explained as follows:
- Advertising and Product: A product is normally a set of physical elements, such as quality, shape, size, color and other features. The product may be of very high quality. At times, the product is so designed that it requires careful handling and operations. Buyers must be informed and educated on the various aspects of the product. This can be effectively done through advertising. Thus, advertising plays the role of information and education.
- Advertising and Price: The price is the exchange value of the product. A marketer may bring out a very high quality product with additional features as compared to competitors. In such a case, price would be definitely high. But buyers may not be willing to pay a high price. Here comes advertising. Advertising can convince buyers regarding the superiority of the brand and thus its value for money. This can be done by associating the product with prestigious people, situations or events. Alternatively when a firm offers a low price products, the job of advertising needs to stress the price advantage by using hard hitting copy. It is not just enough to convince, but it is desirable to persuade the buyer. Thus advertising plays the role of conviction and persuasion.
- Advertising and Place: Place refers to physical distribution and the stores where the goods are available. Marketer should see to it that the goods are available at the convenient place and that too at the right time when the buyers need it. To facilitate effective distribution and expansion of market, expansion. advertising is of great significance. Thus, advertising do help in effective distribution and market expansion.
- Advertising and Promotion: Promotion consists of advertising, publicity, personal selling and sales promotion technique. Businessmen today have to face a lot of competition. Every seller needs effective promotion to survive and succeed in this competitive business world. Advertising can play a significant role to put forward the claim of seller and to counter the claims of competitor. ThroughEffectiv advertising, sellers can face competition and also help to develop brand image and brand loyalty.
- Advertising and Pace: refers to the speed in marketing decisions and actions. It involves there things the launch of new products or brand variations at greater speed than before. AS in the customers to buy the product.
advertising plays an important role of informing, educating and
- Advertising and Packaging: The main purpose of packaging is protection of the product during it and preservation of quality and quantity. Nowadays, marketers take a lot of efforts to developIesign attractive packages as they carry advertising value. A creatively designed package attracts the stompers to buy the product.
Arrives an assurance of quality and creates confidence in the minds of
- Advertising and Positioning: Product positioning aims at creating and maintaining a distinct image of the brands in the minds of the customers. Through advertising, the marketer can convey the intoning of the brand and accordingly can influence the buying decision of the target audience.
II Role and Relevance of Advertising and Promotion in the Global Society
Advertising is the integral part of every day’s life. It is a pervasive method of marketing in society. Though the methods by which marketers advertise have changed over the decades, the role and purpose of advertising has changed over the period of time. Without advertising, modern society cannot survive. Advertising and promotion play the following roles in the society:
- Encourage Purchasing: Encouraging people to purchase goods and services is the main role of advertising. Some industries rely on advertising more than others. A cereal company, for instance, must advertise more aggressively, due to the wide range of competing products, than a power company that faces little to no competition. Advertisers often influence members of society to purchase products based on instilling a feeling of scarcity or lack.
- Reflect Cultural Trends: Advertising bridges the gap among people by communicating varied culture through advertising message. It brings variation in the social life.
- Promotes Economic Growth: Advertising contributes to bring about all round development of the economy by increasing demand and by encouraging economic activities that it fuels the desire to shop and, in turn, shopping stimulates the economy.
- Improves Standard of Living: Advertising is an economic activity. It provides opportunities to people to improve their income. It motivates people to consume more material and thereby improves their standard of living.
- Provides Employment: Effective advertising generates demand for goods and services. High demand calls for more production which requires more of physical and human resources thus creating employment opportunities.
- Advertising and Brand Building: Brands are the identification that differentiates one business from another through name, symbol, etc.). However, today brands can also be defined as the personality they reflect to people in relation to status, emotional characteristics and subjective quality. Advertising and promotion is one of the key elements in building a brand which is equally important to the marketer and consumers. Advertising by creating or reinforcing brand’s personality enhances brand value or equity which in turn can be leveraged through brand extension. Brand personality also helps brands to gain market share, command price premium and insulates from discounting brands. Building a strong brand name is key factor for business success. In the competitive business environment of today, consumer sophistication has altered business practices. Organizations are forced to anticipate customers’ needs and convey clear messages to consumers by establishing strong brand names and focusing on brand building.
In consumers’ minds, a brand is more than just a recognizable name. It is a promise that needs to be met on a regular basis. Advertising is important for building brand awareness. By raising consumer interest and making consumers awareness of their products and services, firms not only expand their customer base, but they also keep their loyal customers and increase their market share. In other words, the more aware consumers are of a brand, the more likely they are to buy from a particular business.
Q.4. What are the various decision areas in International advertising? Explain them. Ans.
Decision Areas in International Advertising The followings are the various decision areas in international advertising:
- Centralization: This decision area of international advertising allows for an organization to centralize the development and production of advertising campaign for its brands in the home office or headquarters for image and reputation purposes. Centralization is effective often in an environment where the media of countries hosting a company or where a company’s brands are sold seem similar and interrelated in terms of policies and control. Most organizations basically centralize their international advertising and promotion functions so that decisions like agency selection, research, creative strategy and campaign development, media strategy and budgeting are made by the headquarters. Centralization is usually best when a company’s international business is small and operates through foreign distribution or licenses who do not get involved in the promotional process. More so, why so many organizations preferred centralization is because of the protection of their foreign investments and also to keep track and be in charge of their marketing efforts and brand image.
- Decentralization: In this decision area, organization allows for flexibility and power sharing in advertising and promotional functions among its branches in different countries of the world. Branches of an organization in various countries are allowed to engage advertising agencies, allocate budgets, develop creative strategies, select media and carry out research on the kind of advertisement to aim at. Organization that practice decentralization put great trust in the judgment and decision potential of their staffs in local markets. This is very possible when companies realize that personnel in local markets understand very well the situation of the country the best. According to George et al (1995), ‘Decentralization also works in small or unique markets where headquarters’ involvement is not worthwhile or where advertising must be tailored to the local market.
- Combination (Centralization and Decentralization): Organization in combining the decision areas of centralization and decentralization aims at getting the best and profitable push for its brands in the international market. What truly obtains here is the fact that, where the needs for advertising arise, regional and local offices’ advertising managers submit their advertising plans and budgets to the headquarters for review. The international advertising manager for the organization peruses and approves them for execution, after being satisfied of the details in them.
Local managers play a major role to determine the right advertising appeals for their situation in terms of media selection. The trends of combining the decision areas in international advertising function are on the increase. Often, the headquarter have the most control over advertising policies, operations and guidelines in all markets. This combined approach allows for uniformity and consistency in an organization. Hence, international advertising still approves local input and adaptation of promotional programs in its campaign.
- Agency Selection: Advertising agencies play a crucial role in the advertising campaign of any brand. The experience and exposure of an agency determines the quality and acceptable creative work that it could put forth. Agency selection is an important decision for firm that is engaged with international marketing campaign. Here, such firm carefully and critically selects the advertising agency that would represent its brands at both local and international level. George et al (1995) suggest three basic alternatives that organizations can select from when choosing advertising agency that would represent their brands worldwide. These are:
(a) Organization can choose a major agency with both domestic and overseas offices. Many large genies have offices all over the world and as a result become truly international in operations.
(b)The second alternative for the international market is to choose a domestic agency that, rather than having its foreign offices or branches, is affiliated with agencies in other countries independence of selling itself to an international or belongs to a network of foreign agencies. This alternative gives the domestic agency the Sensing itself to an international agency offering multinational coverage and eraser, the benefit of this arrangement is that, the domestic agency is engaged but the organization still has access to foreign agencies with detailed knowledge on market conditions, media and so on, in the local markets of the country, The challenge associated with this alternative is whether the domestic agency has control or coordination in the dependent foreign agencies it is affiliated to. More so, companies employing this must ask the local agency if it has control over the quality of its affiliates works in areas like creature and media.
(c)The third alternative is for organization to choose the advertising agency in the con where its brands are produced. Since local advertising agencies understand the Warn situations of their countries, it is the best thing to do in order to avoid errors advertising campaign. In addition, a local agency can develop the most effective advertising because of its understanding of the marketing and advertising environment in their region.
- Advertising Research: Research is fundamental in any venture, with it, we can avert mistakes and accomplish our task faster than one can imagine. Most advertisers rarely do advertising research for their international market penetrating goals. Maybe, the cost of embarking on it is too mm perhaps low budget allocation could have been responsible for this negligence. Instead, they do casual observation to determine the general situation of the international market. To guide the promotional processes, research plays the same crucial role in the development of international advertising and promotion programs as it does locally in order to help managers make better and informed decisions.
Companies are in recent times seeing the needs of conducting research in marketing and advertising, because of their increasing investments in the international markets. There are areas where research in international markets can help organizations make better advertising decisions. These include the following among others:
(a) Information on demographic features of markets.
(b) Information on cultural differences like values, beliefs, lifestyle, norms, etc.
(C) Information on how consumer used the products, their attitudes, media usage and preferences.
(d) Reactions to varieties of advertising appeals and execution through copy testing.
(e) Research on the effectives of advertising and promotional programs in foreign markets.
- Creative Decision: The decision as to the appropriate message for advertising campaign is preeminent here. It is not enough to engage a multinational advertising agency, but what quality of job has it got to disseminate in order to attract patronages and acceptability of a brand in the international market. Basically, the creative strategy development for international advertising is similar in process and procedure to that of domestic advertising, Market conditions and strategy for foreign markets influences the advertising and communication objectives as well.
The factor of global vs. local advertising is an issue in creative strategy for international brand. Following the standard approach, creative team in advertising agency must develop advertising that will transcend cultural differences and communicate effectively in every country. The view of George et al (1995) is that when companies follow a localized advertising strategy, the creative team must select the selling idea, appeal and execution style that will work in each market.
- Media Selection: Knowing and identifying the right media for an advertising campaign is the greatest success of advertisers. This is so because, the end of every advertising campaign is to drive the message to the actual audience who would react in turn to patronize or support the brand. No matter how creatively developed and produced an advertisement may be, if it goes through the wrong vehicles or media it would fail in effort and resources. This is why most of the advertising agencies engage media experts and planner to help them determine and choose the right media to transport their messages through.
Media planner finds it very challenging in the attempt to communicate advertising message to consumers in foreign countries. The reason for this challenge is the imbalance nature of media in various countries of the world. Some countries do not allow advertisement on television, some have the time allocated for advertising limited and some homes in developing countries do not have television sets. For example, in Germany advertising time in a day is twenty (20) minutes on the government-owned stations.
Media characteristics differ by countries in areas like-coverage, cost, quality of production, restriction, scheduling and so on. Another problem is getting information on circulation figures audience, profiles and cost. The goal of international advertising is to select media vehicles that reach their target audience most effectively. It should be noted that media selection is often localized even for a centrally planned globalised campaign.
Q.5. What are the various types of media? Explain each of them with their characteristics.
Ans. Media Characteristics
There are two types of media for communication-mass media and interpersonal media. Interpersonal media is an expensive medium but highly useful for focused reach. On the other hand, mass media like television, radio or newspaper are cost efficient and characterized by wide reach. The characteristics of each of the mass medium are as follows:
Following are the specific characteristics of television:
- It is more impactful as it is the combination of sound, sight and motion.
- It has broad reach and mass coverage.
- It is highly intrusive medium.
- It has high absolute cost but cost per thousand is moderate.
.Impact of sight sound and motion
Moderate cost per thousand exposure
High absolute cost
Following are the specific characteristics of radio:
- It can reach out to remote audiences.
- It is most cost efficient among all mass media,
- Radio can reach mobile population.
- Radio has local market identification.
Low production cost
Lowing are the specific characteristics of newspaper:
- Newspaper is a bêtes option to provide detailed information.
- A publication has different editions for different areas, so there is a geographic flexibility in
- Newspaper have different sections, so there is opportunity of targeting special interest groups.
- Newspaper are vehicle for coupon delivery.
Short lead time for placing ads
Ads can be placed in interest sections
Timely or current ads
Can be upon
Poor reproduction quality
Selective reader exposure
Low attention getting capability
Following are the specific characteristics of magazine:
- There are magazines for sports, corporate, business, women, children, etc. so we can say magazines have specific audience selectivity, as they are specialised.
- Magazines have longer life.
- Magazines provide the opportunity for message scrutiny and geographic and demographic
High information content
Compatible editorial environment
Long lead time for ad placement
Lack of flexibility
Following are specific characteristics of outdoor media:
- Outdoor media is easily noticeable and it provides 24 hours coverage.
- Outdoor is location specific media, i.e. it has local market presence.
- Outdoor media is cost efficient medium.
- It can be good reminder media.
|24 Hour coverage
Cost efficient medium
|Short exposure time requires short ads
Qus.6. Define media planning. Describe the steps involved in media planning.
Ans. Media Planning
Media planning, in advertising, is a series of decisions involving the delivery of message to the targeted audience. Media plan is the plan that details the usage of media in an advertising campaign including costs, running dates, markets, reach, frequency, rationales and strategies. Steps Involved in Media Planning
- Market Analysis
Every media plan begins with the market analysis or environmental analysis. Complete review of internal and external factors is required to be done. At this stage, media planner tries to identify answers of the following questions:
- Who is the target audience?
- What internal and external factors may influence the media advertising media
- Where and when to focus the advertising efforts?
The target audience can be classified in terms of age, sex, through certain media
income, occupation and other variables. The classification of target channels to achieve a
audience helps media planner to understand the media business goal.
consumption habit and accordingly choose the most appropriate media or media mix.
- Establishing Media Objectives
Media objectives describe what we want the media plan to accomplish. There are five key media objectives that a advertiser or media planner has to consider:
- Reach: Reach refers to the number of people that will be exposed to a media vehicle at least once during a given period of time.
- Frequency: Frequency refers to the average number of times an individual within target audience is exposed to a media vehicle during a given period of time.
- Continuity: It refers to the pattern of advertisements in a media schedule. Continuity alternatives are as follows:
(a) Continuous: Strategy of running campaign evenly over a period of time.
(b)Pulsing: Strategy of running campaign steadily over a period of time with interinittent d e in advertising at certain intervals, as during festivals or special occasions like Oyo
(c) Discontinuous: Strategy of advertising heavily only at certain intervals and no adverb
the interim period, as in case of seasonal products.
- Cost: It refers to the cost of different media.
- Weight: Weight refers to total advertising required during a particular period.
III. Determining Media Strategies
Media strategy is determined considering the following:
- Media Mix: From the wide variety of media vehicles, the advertiser can employ one vehicle or a mix suitable vehicles.
- Target Market: For an effective media strategy, it is important to search out the market targeted.
- Scheduling: It shows the number of advertisements, size of advertisements and time on which advertisements to appear.
(a) Seasonal Pulse: Seasonal products like cold creams follow this scheduling.
(b) Steady Pulse: According to this scheduling, one ad is shown over a period of time, say one ad per week or one ad per month.
(C) Periodic Pulse: A regular pattern is followed in such scheduling, as in case of consumer durable and non-durable goods.
(d) Erratic Pulse: No regular pattern is followed in such scheduling.
(e) Start-up Pulse: Such scheduling is followed during a new campaign or the launch of a new
(f) product. O Promotional Pulse: It is for short time, only for a promotional period.
- Reach and Frequency: Reach and frequency determines the reach of a product to the customer as well as the number of customers attracted towards the product.
- Creative Aspects: Creativity in ad campaigns decides the success of the product, but to implement this creativity, firm must employ a media that supports such a strategy.
- Flexibility: An effective media strategy requires a degree of flexibility.
- Budget Considerations: In determining media strategy, cost must be estimated and budget must be considered.
- Media Selection: It covers two broad decisions–selection of media class and selection of media vehicle within media class. IV. Implementation of Media class.
The implementation of media plan requires media buying. Media buying refers to buying time and space in the selected media. Following are the steps in media buying:
- Collection of Information: Media buying requires sufficient information regarding nature of target audience, nature of target market, etc….
- Selection of Media Mix: Considering the collected information and ad-budget, media or media mix is selected which suits the requirements of both-target audience and advertiser.
- Negotiation: Price of media is negotiated to procure media at the lowest possible price.
- Issuing Ad-copy to Media: Ad-copy is issued to the media for broadcast or telecast.
- Monitoring Performance of Media: Advertiser has to monitor whether the telecast or broadcast of ad is done properly as decided.
- Payment: Finally, it is the responsibility of advertiser to make payment of media bills on time.
- Evaluation and Follow-up
Evaluation is essential to assess the performance of any activity. Two factors are important in evaluation of media plan:
- How successful were the strategies in achieving media objectives?
- Was the media plan successful in accomplishing advertising objectives?
Successful strategies help to build confidence and serve as reference for developing media strategies in future and failure is thoroughly analyzed to avoid mistakes in future.
Qus.7. What is video advertising? Explain its various types, advantages and disadvantages.
Ans. Video Advertising
It is a type of advertising that encompasses online display advertisements having video within them. It creates a more stimulating environment for consumers by meeting their expectations for the content
Types of Video Advertising
Some of the most common types of video advertising are as follows:
- In-stream Video Ads: These ads play in the video player that the users are watching before during or after a piece of content. These are the kind of ads that one see displayed during YouTube videos
- Out-stream Video Ads: These ads are videos that are not accompanied by any other content. It does not need to be tied to anything else. These ad impressions can sun using standard ad placements on the corners of pages or within a written article.
- Webpage Video Ads: It is the preferred form of video advertising for most of the browsers. These ads are designed to give more information about a product, service or even the history of a company. Many of the companies use these ads as a way to get people to learn more about the company.
- Companion Video Ads: These ads are designed to work alongside the video player, text or anything else that is present on a given webpage. These are companion ads generally smaller than the full-sized videos on a web-page which can make them less intrusive than other advertisements,
- In-Game Video Ads: These are some of the most popular video advertising solutions available today. These are engaging and entertaining apps that provide a perfect platform for advertisement. Many of the businesses consider these ads to be quite cost effective as compared to television Ads or YouTube clips.
- Interactive Video Ads: These ads are perfect when engagement is the main goal. They take over the entire screen of whatever device the user is accessing and pause the video content. These ads can show up before, during or after the content has played and usually last for around thirty seconds at most.
Advantages of Video Advertising
Important advantages of video advertising are as follows:
- They make videos device friendly, more precisely mobile friendly.
- Videos are sharable and create a more stimulating environment for consumers by meeting their expectations.
- Videos are the excellent format for informing and educating.
- They offer opportunity to reach audiences by allowing the advertisers to deliver short video ads into both live and non-live videos on any video uploading platforms such as YouTube, Face book, etc.
- Videos on social media increases the likelihood that helps the target audience to find the company when searching for relevant information.
6 The cross-channel video campaigns help to get connected with users across the websites,
social networks, mobile devices, etc..
Disadvantages of Video Advertising
Video advertising has the following disadvantages:
- Some of the most commonly used buttons online are those that allow users to skip the add
- Calculating the reach is more complicated. It cannot show that the ad is reaching the masses and making a real positive impact
- Controlling where the ads are shown depends on the ad distribution channel and for some
channels, this can be a challenge. Ad server has to support some smart scheduling scheme so that the ad is displayed at their time.
Qus.8. Discuss about the emerging concept of sponsorship in marketing communication.
Sponsorship is the financial or in-kind support of an activity and is used primarily to reach gasified business goals. It should not be confused with advertising. Advertising is considered a quantitative medium, whereas sponsorship is considered a qualitative medium. It promotes a company in association with the spondee.
A large number of events, these days, use sponsorship support to offer more exciting programs and to help defray rising costs. Sponsorship allows us to reach specifically targeted niche markets without any waste. In addition, it can be a powerful complement to other marketing programs and it can have a dramatic influence on customer relations.
Some trade show promotional opportunities include sponsorship of press rooms, an international lounge, a speaker or VIP room, an awards reception, educational programs, banners, badge holders, audiovisual equipments, display computers, tote bags, shuttle buses, napkins and drink cups.
Goals of Sponsorship
Sponsorship offers the possibility of achieving several goals at once, which are as follows:
- Enhancing Image and Shaping Consumer Attitudes: Companies often looking for ways to improve how they’re perceived by their target audience. Sponsoring events that appeal to their market are likely to shape buying attitudes and help generate a positive reaction.
For example, Coca-Cola is always looking to generate a positive influence of their products in the minds of their consumers. As such, the company regularly supports events that it feels can influence consumer opinions, like the American Idol television show on ABC.
- Building Brand Awareness: One can spend a lot of money on print advertising or on audio and television commercials, but he’ll spend a lot less and perhaps achieve a better result if he can simply put his product in the hands of potential consumers.
- Driving Sales: This goes hand-in-hand with brand awareness, Sponsorship that’s geared to driving sales can be an extremely potent promotional tool. This objective allows sponsors to showcase their product attributes. Food and beverage companies often use sponsorship to encourage samplings and sales.
- Increasing Reach: A good sponsorship will not only allow you to make contact with potential h ere and customers, but it can also promote that priceless marketing tool, i.e., word-of-mouth. People who attend the event will continue to talk about your service or product, particularly if they had a good experience with it at the time.
5.Creating Positive Publicity and Heightening Visibility: Every sponsor seeks wide exposure in chronic and print media and positive publicity helps to create heightened visibility of products services. Various media covering the event sometimes include sponsors’ names or photos. This media coverage is often unaffordable if the company were to think of purchasing it, if it was even available at all.
Sponsorship can often generate media coverage that might otherwise not have been ayailah sponsoring company should have a comprehensive media campaign in place to augment their media coverage promoted by the organizers.
- Differentiating From Competitors: The mere act of sponsoring an event, especially exclusive sponsorship, is a significant way to create competitor differentiation. The company and the opportunity to stand out head and shoulders above the rest. This is particularly helpful if. company wants to combat a competitor that has a larger ad budget. Sponsorship allows she companies to compete with industry giants.
- Helping with a Good ‘Corporate Citizen’ Role: Another powerful sponsorship object. Allows companies to be viewed as ‘good neighbors. They’re perceived as supporting the comma and contributing to its economic development and this is extremely powerful and creates norm goodwill.
Target audiences see the sponsor as making a greater effort to support the event, often allowing more or better activities to take place as a result. This provides another way in which you can non your audience through the support of their interests and causes.
- Generating New Leads: This opportunity is particularly alive and thriving at trade shows von actually attend. You’re personally present and so are innumerable others who have an interest or need in your service or product. Use the event to talk shop. Showcase yourself or your product without going overboard. You’ve already got a good thing going, you’re a sponsor and that affords you a certain level of respect. You don’t have to clap yourself on the back. Just be knowledgeable and helpful so attendees remember you when they need what you have to offer.
- Enhancing Business, Consumer and VIP Relations: Sponsorships that offer hospitality opportunities are always very attractive to companies. Perks can include special exclusive networking settings, such as VIP receptions or golf tournaments. These are opportunities to meet key customers and solidify business relationships.
It’s important to evaluate each opportunity and look for ways it can tie into the marketing objectives.
Q.9. What is the role of e-commerce in marketing communication? Explain the various types of corporate advertising.
Ans. Role of E-commerce in Marketing Communication
The emergence of e-commerce has a huge influence on the process of marketing communication and the channels through which it takes place. Its role can be seen in the following points:
- Accessibility at any time and place which is core characteristic of internet has a huge impact
on marketing communication.
- E-communication has provided organizations the capability to expand the target market
without any limitation of location across the globe. Due to unique characteristic of
e-commerce, the customers can be treated individually without any differences. 3. E-commerce is doing business technically using electronic mediums of communication which
are rapid easy to use and cost effective, hence e-commerce has a huge influence on business at present as well as in future.
Types of Corporate Advertising
The four types of corporate advertising commonly used by organizations are:
- Public Relations Ad: It is typically used to improve the company’s relations with labor, government, customers or even suppliers. Thus, when a company sponsors arts events, programmers on television or charitable activities, they are engaging in PR.
PR ad is used when a company wishes to communicate directly with one of its important publics to feelings or to enhance its point of view to that particular audience. They are designed to man’s general community citizenship and to create public goodwill. Corporate advertising does include some mention of company products; the object of this advertising is not directly aimed at generating sales. Instead, corporate ads focus on the and reliability of the company as a whole, the integrity that the business employs in all its relationships and how the company seeks to better the circumstances of the geographic as where it operates. As part of this process, it is not unusual for one or more of the leading rest to be mentioned, but there is usually no mention of pricing or upcoming discounts of products within corporate advertising campaigns. Those are left to product advertising efforts that focus helically on the goods produced for sale.
- Institutional Ad: It is otherwise called as corporate advertisement. The promotional message aimed at creating an image, enhancing reputation, building goodwill or advocating an idea or the philosophy of an organization, instead of sales promotion. When employed by organization to market itself (instead of its products), it is called corporate advertising.
Institutional advertising is marketing designed to promote a company rather than a specific good are service. It can be designed to make the public more aware of a company or to improve the reputation and image of an existing company. Depending on the company, this can be a form of brand advertising.
Some forms of institutional advertising are so geared towards promoting a positive image that they effectively discourage sales of a product to some extent. For example, alcohol firms may run commercial warning against excessive drinking or driving while under the influence. Such commercial are usually designed to improve the image of the company, making it seem more trustworthy or responsible.
Institutional Ads serve these purposes amongst others:
(a) To report company’s achievement or accomplishment.
(b) To position company competitively in the market place.
(C) To reflect a change in corporate personality.
(d) To shove up stock prices of companies.
(e) To improve employees morale.
(f) To avoid communication problems with agents, dealers, suppliers, customers, etc.
There is a category of institutional advertising called advocacy advertising and organizations use it to communicate their views on issues that affect their business. It is not unusual for a company to engage in corporate advertising as a means of dealing with some incident or factor that has damaged the reputation of the company. Factors may include unsubstantiated claims made about the business practices of the company or some aspect of the quality of products produced by the corporation, whatever the issue is, advocacy advertising is meant to protect organization’s position in the market place.
- Corporate Identity Ad: This is embarked upon on rare occasion such as when organization decides to change its name, logo, address, trademark or corporate signature or in case of a merger. When such occasions occur, there is need for corporate identity advertising, this is to communicate the change to the public.
Corporate identity comes into being when there is a common ownership of an organizational philosophy that is manifest in a distinct corporate culture – the corporate personality. At its most profound, the public feel that they have ownership of the philosophy. Often referred to as organizational identity, corporate identity helps organizations to answer questions like ‘who are we?’ and ‘where are we going?’ Corporate identity also allows consumers to denote their sense of belonging with particular human aggregates or groups.
In marketing, a corporate identity is the persona’ of a corporation which is designed to accord wile and facilitate the attainment of business objectives. It is usually visibly manifested by way branding and the use of trademarks. Many companies, such as McDonalds and Electronic Arts, haw their own identity that runs through all of their products and merchandise. The trademark ‘M’ logo the yellow and red appear consistently throughout the McDonald’s packaging and advertisement Many companies pay, large amounts of money for the research, design and execution involved in creating an identity that is extremely distinguishable and appealing to the company’s target audience.
- Recruitment Ad: This is used when the prime objective is to attract employment apply captions. Recruitment advertising, also known as recruitment communications and recruitment agency includes all communications used by an organization to attract talent to work within it.
Recruitment advertisements may be the first impression of a company for many people and the first impression the firm makes goes a long way to determining interest in the job opening being advertised Recruitment advertisements typically have a uniform layout and contain the following elements:
(a) The job title heading and location.
(b) An explanatory paragraph describing the company, including the Employer Brand.
(C) A description of the position.
(d) Entry qualifications.
(e) The remuneration package (not always provided by the employer).
(f) Further details and from where application forms may be sought.
When faced with hiring many roles, corporate employers have many channels and options to choose from. They may be:
(a) A retained search firm.
(b) A contingency search firm.
(C) Retain a recruitment process outsourcing organization.
(d) Use a candidate fulfillment service.
(e) Retain a recruitment advertising agency.
(f) Retain a specialist interactive recruitment advertising agency.
(g) Leverage old media to advertise their openings (print, radio and television).
(h) Leverage job boards.
(I) Leverage new media.
(j) Invest in additional internal resources.
Each of these channels has their benefits and many firms will use a mix of some or all of the above options.
The use of a specialist recruitment advertising agency enables organizations to receive professional advice on media, design and copywriting specifically related to the recruitment process. This enables their advertisement to stand out in the relevant publication and build an employment brand. Advertisers are now able to use micro-sites to put most of the job content and allowing the advert to be more creative with minimal copy. Recruitment advertising has now developed into a specialty service where most leading organizations use the services of a specialist agency.
Q.10. Write a detailed note on advertorials and Infomercials.
Advertorials are a specific print advertising format where a company pays to deliver a message about its brand or product. The advertiser pays the magazine, newspaper or website for the space needed to present a copy-driven message to the target audience who reads it.
Purpose: Advertorials basically combine the benefits of traditional print ads with feature articles written by a news reporter. Feature stories usually go into more details about your company or products than traditional ads. However, you have limited control over what gets published. By paying for ad space just as you would with a typical box ad or full-page ad, you have final authority over the message. This means you can thoroughly explain your benefits or tell an effective story.
Format: The nature of advertorials varies a bit, but they is a form of TV usually are distinct from conventional print ads with visuals and advertisement that acts as brand messages. They are especially copy-driven with a lengthy a stand-alone program overview of a product’s benefits or a narrative that depicts the and typically lasts longer attributes of a product. They do sometimes include visual elements, than five minutes. however.
Credibility: A major reason advertisers choose advertorial placements is their perception of credibility. Advertorials are intended to read like the content in the medium. Thus, the more closely your brand or products fit the audience’s interests, the more impact you can have. Readers generally perceive print ads as credible relative to advertising delivered through other media. Advertorials are especially hard to distinguish from regular content on websites. This prompted the Federal Commission to revisit its requirements for disclosure. Websites are expected to indicate when editorials are paid placements and not regular feature content.
Author: Advertorials are either written by someone at the client company, its ad agency or someone with the publication. Larger companies often develop their own advertorials internally of have ad agency creative’s within them. They then purchase placement. Smaller businesses sometimes ask local newspapers to create the advertorials and approve them once completed. While either approach gives the advertiser final say, an outside voice can offer a fresh perspective on the brand.
An infomercial is a form of advertisement which is aimed at educating the customer about a product or a series of products via television in the form of a program. Infomercial typically lasts longer than a regular advertisement and thus is more detailed.
Features of Infomercials: The various features of infomercials are as follows:
- Infomercials are good for those products which require detailed explanation about their features as they can run as a regular length television program. In the print media, infomercials appear as a separate supplement
- Infomercials are able to directly connect with its consumers on a real-time basis. They create that connect with the potential customer to make an enquiry about the product or place an order. Usually, various offers or promotions/discounts are pitched to customers at the time of product promotion. A toll-free number is generally aired on the television channel as part of an infomercial with the product code to help customers order that particular product.
- Another important feature of an infomercial is that it appears during off-peak hours, as
compared to regular advertisements which appear during peak hours. One possible reason is that advertisement rates are generally lower around off-peak hours and because infomercials
require more time, it comes out to be economical for them.
- There is no defined category of products that use infomercials as part of their strategy to
attract customers. Products ranging from clothes, cosmetics, saris, home improvement, kitchen items, shoes, gym equipment, etc. use infomercial.
- One of the major feature of infomercials is the reach and because of the way it is communicated, it makes an instant connect with consumers across regions. Most of the demand comes from tier II and tier III cities.
Q.11. Explain the process of PR. What are the various tools of PR?
Ans. Process of PR
The process of PR implies a series of steps but essential quality is in focus. The steps are:
- Fact Finding: A PR person particularly after joining must understand the corporate objectives. It has to find out the problems and challenges, strengths and weaknesses of the organization by personal as well as collective efforts.
- Planning: The primary reasons for planning PR programmers are:
(a) To estimate costs and man-hours involved.
(b) To decide priorities among multitude of operations.
(c) To set targets for PR operations.
(d) To consider the feasibility of carrying out the intended objectives according to available Resources.
- Communication: One of the most important human innovations is the increasing speed of information transfer. These bring PR practitioners closer to stakeholders who will ultimately utilize the information of relevance to them.
- Research and Evaluation: Research and evaluation will undoubtedly strengthen the PR profession, Research in PR is not a separate subject. The whole purpose of fact finding and planning will go useless unless the research and evaluation objectives are kept constantly in view. These are the very essence of successful PR activity,
Tools of PR
- Press, Radio and TV/Media Relations: Historically the core of public relations, media relations includes all efforts to publicize product or the company to members of the press-TV and Radio, newspaper, magazine, newsletter and internet. In garnering media coverage, PR professionals work with the media to place stories about products, companies and company spokespeople. This is done by developing interesting and relevant story angles which are pitched to the media.
- Newsletters: Newsletters can be directed at trade customers, final consumers or business buyers and can be distributed either by regular mail or electronic means (i.e., e-newsletters delivered via e-mail). Marketers using newsletters strive to provide content of interest to customers as well as information on products and promotions.
- Sponsorships: Companies and brands use sponsorships to help build goodwill and brand recognition by associating with an event or group. Marketers can examine sponsorship opportunities to find those that reach target groups, fit within a specified budget and provide sponsorship benefits that suit the marketer’s objectives.
- Special Events: Special events can be designed to reach a specific narrow target audience, such as individuals interested in college savings plans to major events like a strawberry festival designed to promote tourism and regional agriculture. Stunts, such as building the world’s largest ice cream sundae during National Ice cream month captures the attention of an audience in the immediate area, but also attracts the attention of mass media such as TV news and major newspapers, which provide a broad reach..
- Media Tour: Some new products can be successfully publicized when launched with a media tour. On a media tour, a company spokesperson travels to key cities to introduce a new product by being booked on TV and radio talk shows and conducting interviews with print and internet reporters or influencers (for example, bloggers). The spokesperson can be a company employee or someone hired by the company, perhaps a celebrity or ‘expert’ who has credibility with the target audience.
- Opinion Building: Developing websites has long been a time-consuming and often overly I undertaking for the vast majority of marketers. Additionally, the move towards easier to use software has changed the purpose of having a presence on the internet
- Employee Communications and Relation: For many companies, communicating regularly employees is important in keeping them informed of corporate programs, sales incentives, noel issues, as well as keeping them updated on new products and programs.
- Customer Service: Customer service is the provision of service to customers before, during and rag purchase. Customer service is normally an integral part of a company’s customer value position. Public relations have a particular responsibility for dissatisfied customers, who might turn to hostile publics if they are not treated appropriately.
- Market Monitoring: Monitoring public comment about a company and its products is becoming increasingly important especially with the explosion of information channels on the internet. Today monitoring includes watching what is written and reported in traditional print and broadcast media and also keeping an eye on discussions that occur through various internet outlets such as forums, chartrooms, blogs and other public messaging areas.
Q.12. What are the different types of sales promotion? Define publicity. What are the functions of publicity?
Ans. Different Types of Sales Promotion
The different types of sales promotion are as follows:
- Consumer Promotion: Sales promotion directed at consumers may be done with a view to increase the products rate of using among existing consumers or to attract new consumers to the company’s product. It may also be undertaken to retaliate the competitors sales promotion or other activities. The different forms of consumer promotion are as follows:
(a) Free Distribution of Samples: It involves free distribution of samples to ultimate consumers. These samples may be distributed door to door or may be offered in a retail store or with the purchase of any particular product.
(b) Coupons: A coupon is a certificate that entitles the consumer to a
specified saving on the purchase of a specified product. These coupons are usually issued by the manufacturers through Publicity the retailers or in most of the cases, they are kept inside is gaining public the package. visibility or awareness
(c) Premiums or Bonus Offers: An offer of a certain amount for a product, service or of product at no cost of consumers who buy a stated company via the media. amount of a product or a special pack thereof is called premium offer or bonus offer.
(d) Money Refund Offer: This offer is generally stated in media advertising that the
manufacturer will return the price if the product is not to the satisfaction of the consumer
within a stated period.
(e) Contests or Sweepstakes: At times, contests are arranged with a view to attract new users tothe company’s product. An opportunity under this device is given to consumer to contest with
a chance to win cash prizes, free air trips or goods.
(f) Bonus Stamps: Such bonus stamps are issued to the consumers by the retailers or
manufacturer in proportion to their purchases
(g) Draw: Under this system, every purchaser making a purchase of certain specified amount is
offered a coupon during a certain period. After the expiry of the period, a draw is made and attractive prizes are given to the winners.
(h) Cheap Bargain or Self Liquidating Premium: Under this method, the consumer is offer
Another product at a cheaper rate along with the purchase of company’s product
- Middleman Promotion: Incentive programmers for dealers aim at obtaining maximum cooperation from distribution channels such as wholesalers, semi-wholesalers and retailers, who form the vital links in the distribution chain Manufacturers, want preferred store locations and serine displays. There are different types of deals and the most common among them are as follows:
(a) Buying Allowance Discount: The buying allowance or discount is offered to the dealer to
Induce him to buy the manufacturer’s product. Such a discount may be either deducted on
Invoice price or on cash paid.
(b) Buy-back Allowance: Under this method, the manufacturer offers a certain amount of money for additional new purchases on the basis of the quantity of purchases made on the first trade Deal.
(c) Display and Advertising Allowances: The allowance is offered to the dealer to display the
Manufacturer’s product. The allowance is given on the basis of space provided to display the
Manufacturer’s product in the shop.
(d) Dealer-listed Promotion: Under this method, dealer name and address is given on the
Advertisement and other publicity materials such as calendars, diaries, etc.
(e) Push Money or PM’s: This is an incentive payment in cash or in kinds to the retailer or
Salesman to push the sale at a fixed rate for each article sold.
(f) Sales Contests: It is a device used to stimulate and motivate distributors, dealers and their
Sales staff. They are offered cash prizes for those who will win the sale contest, i.e. who will
Make the highest sales of the company’s product
(g) Advertising Material: The advertising materials such as calendars, New Year diaries,
literature, sign boards, packing bags, posters, etc. are supplied by the producer of the product
to the dealer or middlemen for advertisement.
(h) Credit Facility: The producers allow credit to their dealers, based on the quantity purchased
by them. This enables them to purchase bulk quantity.
Publicity is any unpaid form of non-personal presentations of the ideas, goods or services. For example, movies studios try to get celebrities on TV talk shows because this generates a lot of interest and sells tickets to new movies without the studio paying for TV time.
‘Publicity is any form of non paid commercially significant news or editorial comment about ideas, products or institutions.
Publicity is defined as the process of drawing attention to a person or thing. However, in the world of publishing, publicity refers to the process of drawing attention to a person or a thing for free. Publicity is the deliberate attempt to manage the public’s perception of a subject.
Functions of Publicity
Publicity can help a company or a brand simply by proving the following key functions:
- Increasing Demand: Publicity generates interest in and demand for a product or service offered by a company. Although only a fraction of the people who hear about a product will buy it, a fraction of a large population is still bigger than the entirety of a small population.
- Bestowing Lucrative Credibility: Media appearances greatly, boost the perceived value of whatever one offer the public. Message in publicity has high credibility than advertising as it appears to the reader to have been written independently by a media person than by an advertiser.
- Spilling Over Opportunities: As people come to perceive a person or a company as more rant, they are likely to consider that person or company for additional opportunities. A company runs commercials on television might be asked to sponsor a major sporting event. These spillover rotundities from publicity help the company or a person to find new avenues for growth. 4. Lowering Advertising Cost: Publicity sells the products or services without the burdensome ensue of advertising and it also well aids firm’s advertising campaign very effectively and thus creases its advertising return on investment.
- Attracting Media Attention: Publicity is the act of attracting the media attention and gaining visibility with the public. It necessarily needs the compliment of the media. It cannot be done internally as it requires the attention of the publicist and it is the publicist that carries out publicity.
- Rising Above Competition: Publicity helps the marketer to rise above the competition. The more media appearances one rack up, the more one’s name comes in mind of people or customers.
Qus.13. Define direct marketing. What are its advantages and types?
Ans. Direct Marketing
Direct marketing is a promotional method that involves presenting information about the company, product or service to the target customer without the use of an advertising middleman. It is a targeted form of marketing that presents information of potential interest to a consumer that has been determined to be a likely buyer.
Advantages of Direct Marketing
The various advantages of direct marketing are as follows:
- Saves Distribution Costs: The major advantage of direct marketing is huge saving on distribution costs. As already stated, it cuts through a clutter of stakeholders before it reaches the customer hence huge savings are effected. These savings can be passed on to the consumers partially or retained by the company for greater investment in products and technologies. Amway, for, e.g. claims to distribute the distribution costs saved to independent distributors after keeping a share for themselves.
- Product or service at Door Steps: The conventional method of selling involves the buyer going to the shop or market place to search for products and selecting them. There is often no way to demonstrate the effectiveness of the product in real life setting with direct marketing, it is possible to reach the doorstep of the consumer and give a live demo in real setting and convince the customer effectively to buy a product.
3, Environmental Costs: Huge costs on transportation, hoardings, point-of-sale promos can be saved which in turn has impact on carbon foot print and associated environmental costs. The more products come under direct marketing, the lesser would be the logistical costs. Moreover, for the consumer, fuel and time savings are effected when product is delivered on premises. No shop space and infrastructure are required to develop the brand
- Independent Salesmen/Distributors to Benefit: Direct marketing may have some impact on traditional sales, however, several new professionals looking for independent work and income can benefit by becoming associates of such companies or become a network marketing professional.
- Understand Customer Requirement Better: Direct marketing companies are in face-to-face contact with the customer and hence in a better position to get product feed back, understand their requirements and fine tune products.
Types of Direct Marketing
Following are the various types of direct marketing:
- Direct Mail: Direct mail is posted mail that advertises our business and its products and services. There are several different types of direct mail (e.g., catalogues, postcards, envelope mailers).
Direct mail campaigns are usually sent to all postal customers in an area or to all customers on a marketing list.
- Telemarketing: Telemarketing involves contacting potential customers over the phone to sell products or services. It is capable of generating new customer prospects in large volumes and is also a useful tool for following up on direct marketing campaigns. However, a successful telemarketing involves planning and using accurate and well-researched customer data to match customer profiles to product profiles.
- E-mail Marketing: E-mail marketing is a simple, cost-effective and measurable way of reaching the customers. It can include e-newsletters, promotional e-mails to generate new leads or offers for existing customers or ads that can appear in other business’s e-mails.
- Text (SMS) Marketing: Text messaging allows businesses to reach individual customers and send messages to large groups of people at a low cost. One can use Short Message Service (SMS) messaging to send customers sales alerts, links to website updates, appointment or delivery reminders or personalised messaging.
- Leaflet Marketing using Letterbox Drops and Handouts: Distributing well-designed leaflets or flyers through letterbox drops and handouts can work well for a local business whose products or services appeal to a broad audience. It is a simple, inexpensive and an effective way of reaching customers, although it is a less targeted form of direct marketing.
- Social Media Marketing: Social media can be used effectively as a marketing tool for business as it gives the opportunity to interact directly with the customers and regularly share relevant product or service information. Social media platforms also make it very easy for the customers to share the content with their entire network, increasing our reach exponentially.
- Direct Selling: Direct selling is an effective way to grow a flexible, low-cost business. Direct selling involves an independent salesperson selling products or services directly to customers, often at a customer’s home or workplace. Traditional direct selling methods include door-to-door sales, party plans and network marketing.
Q.14. Describe, in detail, the unconventional promotional methods.
Ans. Unconventional Promotional Methods
Unconventional promotional methods encompass a large group of marketing practices which are considered as non conventional. Unconventional promotion is, therefore, a very subjective term. Unconventional promotion includes really unconventional practices or techniques and some ‘traditional marketing techniques which are used through unconventional ways. Unconventional promotion is often seen as a synonym of guerilla marketing.
Some unconventional promotion methods are ambush marketing, undercover marketing, parasitic marketing, stealth marketing, buzz marketing, experiential marketing,
viral marketing, ambient media marketing, etc. Guerilla marketing
- Ambush Marketing: Ambush marketing consists in directly is the achievement of
interfering with a popular event which benefits of high media conventional goals using
exposure without being an official partner or sponsor. The goal is unconventional methods
to get visibility for a brand or product without paying for an official partnership.
The most elementary form of ambush marketing is probably and idea instead of the naked ‘striker’ who crosses sports fields during TV money. Retransmission with the domain name of an online casino tattooed on his chest. However, ambush marketing operations can be much more planned, organized and be more rewarding for the brand. Aerial marketing event can be considered as ambush marketing Instructions are given to TV production teams not to
cost any ambush marketing operations but those operations can still find a significant echo on the internet and social networks.
Ambush marketing generally suggests a surprise or a field attack during the event which breaks the organizers’ rules. Smoother forms of ambush marketing can be used b simply using the context of the event. In this case, it is more appropriate to speak about parasitic marketing or indirect ambush marketing.
- Undercover Marketing: Undercover marketing groups marketing communication practices disseminating information or a positive message about the brand or its products without the message appearing to be advertising from the brand or its agency. Like an undercover agent, brands and genies may use false identities to promote a product or service.
Undercover marketing has many applications not only in the internet environment, but also in the street. For example, paid actors can pretend to be just early adopters of a new technology product in trendy places or places usually visited by the target. Undercover marketing may be also used to anonymously depreciate competition through false consumer reviews.
Strictly speaking, undercover marketing is slightly different from stealth marketing as the latter doesn’t use false identities. Undercover marketing is not without risks. When those practices are unveiled, it can lead to severe backlash and consequences for the brand from media and consumers. Undercover marketing is one of the many forms of guerilla marketing.
pus 3. Parasitic Marketing: Parasitic marketing may be defined as the fact of capitalizing on a Dan event or even on a competitor’s campaign to gain visibility and advertising impact. Some aggressive forms of parasitic marketing belong to ambush marketing, but all parasitic marketing campaign are not ambush marketing. The most common form of parasitic marketing is parasitic advertising
Parasitic marketing can also be seen as opportunistic marketing. In digital marketing comedy parasitic marketing can also refer to specific practices like affiliate parasitism or advertising mouse” parasitware or adware.
- Stealth Marketing: Stealth marketing is the set of marketing communication practices that diffuse a positive information or message about the brand or its products without consumers knowing that the message emanates from the brand or its agency or has been paid. Stealth marketing has applications on the internet but also in the street where, for example, actors may pass for mere early adopters of a new technology product in trendy places visited regularly by the target.
Undisclosed product placement or endorsement are also forms of stealth marketing and undercover marketing is an extreme kind of it. Sometimes, when stealth marketing practices are identified by consumers or observers, the practice can turn against the brand. Stealth marketing practices can sometimes cause commercial legal code compliance issues.
- Buzz Marketing: Buzz marketing is simply word-of-mouth marketing where product users interact with potential customers and emphasize the product value and benefits. Buzz creates anticipation and excitement among customers about a product or service. Consumers often refer to it as marketing hype.
- Experiential Marketing: Another type of unconventional marketing is experiential marketing which appeals to the emotions. The customer develops an emotional attachment to a brand, product, person or idea.
- Viral Marketing: Viral marketing, which is closely associated with buzz and stealth marketing, makes use of social networks with a goal of generating brand awareness and other marketing goals such as sales generation. It is done through the creation of self-replicating viral approaches either by word-of-mouth or the use of internet. Viral advertisement can be video clips, e-books, interactive flash games and even text messages.
- Ambient Media Marketing: Ambient media marketing may be conducted along with traditional means of advertising and is effective for brand name recall. For example of this are messages or captions on the handles of supermarket carts, slogans on grocery bags, huge images on the sides of buildings and similar conceptual ambient techniques.