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Advertisement awakens the public at large. Lack of co-ordination between advertising policy and distributive policy. Based on the concept of product life cycle, one may differentiate the stages: In this stage, the marketer develops a new product and there is no assurance that consumers will perceive a need for it. (Dealt with separately). 9. Sales promotions are much more urgent and concentrate directly on the profits of the client bank account. When the advertising is done by retailers, it is a case of local (retail) advertising. Both advertising and promotion may be used in tandem to tout the company's reputation, too. The readers are encouraged to send enquiries. Advertising will be used only when it can fetch good result. Advertisements and sales promotion are the two main elements of a business but are distinct terms that people sometimes understand wrongly. The primary elements in the promotional mix are advertising, personal selling, direct marketing and publicity/public relations. In the present business world, suitable publicity is done through advertising, which is adopted by commercial and industrial undertakings and almost all types of concerns. After a careful scrutiny of the above definitions, the essential elements of advertising can be listed as follows: It is a matter of record furnishing information for the benefit of buyers. When the objectives of an advertisement are not realized, then the amount spent on advertising is a waste. Advertising is the easiest and most economical means of tapping the wide market. Create an impression in buyers to have memory value. Advertising, on the other hand, is any paid form of non- personal presentation and promotion of ideas, goods and services. Humour is a suspect element in advertising. If furnishes necessary information to the consumers. The cost of advertisement is included in the price, i.e., increased price. For example, prestige pressure cookers, HMT watches, rallie cycle, Rajdoot bike etc. Holiday promotions are a sure bet on huge sales, provided you have a great advertising campaign. 3. Through this, the medium, accepted by the larger group is adopted. Whatever the form of advertisement-spoken, written or visual, it is directed at a mass audience and not at the individual as in personal selling. In this manner, “advertising” has become indispensable in modem life. creativethinksmedia.com offers you a complete guide on sales promotion and advertising that might have helped you clear all your doubts. Advertising is mobilizing marketing wheels. A group of buyers consists of children, grown-ups, students, women or men. They are pregnant with sales ideas. Littlefield defines it as “Advertising is mass communication of information intended to persuade buyers as to maximize profits.”, Hall defines it as “Salesmanship in writing, print or pictures or spreading information by means of the written and printed word and the pictures.”, Stanton says, “Advertising consists of all the activities in presenting to a group a non-personal, oral or visual, openly sponsored message regarding a product, service or idea.”. The main goal of promoting is the short-term growth of revenue. When the business focuses on health care and cosmetics, a manufacturer will send you 50 samples of a new lotion. For instance, a skateboarding company interested in ads might discuss the type of board content, the rotating capacity of board wheels, and the various kinds of skaters. There is greater for truthful advertising for measuring the effectiveness of advertising in general, and for socially responsible advertising. The key objective of advertising is to clearly and convincingly differentiate the company’s brand and effectively communicate its position. These kinds of advertisements are carried out targeting business and organizational marketers. Discounts, sample offerings and contests are some common forms of this type. At the front of your store, you can set up a table where customers can try the items, give the samples away. But today, India too has emerged into an industrial country, giving boost to “advertisements” that appear regularly, in local and national newspapers magazines, periodicals, TV etc. To do the entire selling job (as in mail order marketing). Most firms are promoting such deals over particular periods when customer demand is expected to be stronger than average. Though the message is not assertive, it makes a statement. They linger in the memory for a long time. Outstanding personalities like David Ogilvy, Leo Burnett and Bernbach etc. 2. It includes activities like direct marketing, sales promotion, personal selling, advertising and public relation. 4. The words and pictures in the copy must win the hearts of readers. 3. It is the era of creativity, and the more creative you are, the better your advertisement strategy will be. These are the advertisements done in directories and yellow pages and followed by people while collecting a telephone number or a home address. 9. This type of headline is very useful for product identification either in terms brand name or the manufacturer. A coupon may be left with the advertisement with a request to make enquiries along with coupons. A short-term tactic is a promotion. In earlier periods, advertisement was displayed in the form of sign boards, writing on historical buildings or inscriptions on stones, stone-pillars, stone walls etc. Disclaimer 9. To be brief, both, advertising and publicity make a non-personal presentation to the masses. 8. Media to be evaluated through its cost, effect and result. And copies of the publicity may be circulated among them. Convince, persuade or induce the readers. They are complementary and supplementary activities. A lot of consideration can be put in promotions, but it doesn't have to be. It is normal to speak broadly of three sides of advertising-advertiser, advertising agency and media owners. This type of headline makes a bold positive statement, which is obvious in itself. This headline asks a question to the reader. These headline exploit human emotions. 7. Participants: Medium or large sized companies. Increasing literacy, modem techniques of printing, stiff competition etc., add to the necessity of advertisement. 5. © 2008-2020 Creative Thinks Media Hand Krafted with by Creative Thinks Media. And the primary goal of advertising is to build a long-term brand picture, and the main target of advertising is to achieve optimum sales rapidly. The first function of a headline is to attract the reader’s attention to the advertisement. The following are the important models of headline: This type of headline gives some type of news-price reduction, product improvements, premium offer, a modification of an already existing product, the addition of a new ingredient in an old product, etc. The early twentieth century was the golden age of advertising. It means, in publicity, the person passing the message may not come to the stage: someone or a third person initiates the publicity; for instance good or bad remarks appearing in newspapers about anything-a film, a book, a policy, an adventure etc. It is paid for by a seller (sponsor). At other times, advertising may sometimes focus more on brand awareness than increasing immediate sales. Advertising reaches the masses, whereas salesmen find it difficult. Attitudes toward a brand result from a combination of _____ attitude-formation processes. View answer Confused?? It gives importance to the firm and wants to create a good impression about a particular manufacturer or a shopkeeper. For example, the holiday season is a prime time for retailers to offer promotional promotions because consumers are more likely to buy impulses. Large- scale production decreases the unit cost. as the result of facts known to others through advertising. The evolution of printing technology and the changes of the marketing policies have been greatly utilized and many are benefited from advertising. It guides or helps buyers to make satisfactory purchases. This type is also known as competitive advertising. Employers advertise for applications for various vacancies in their companies for selecting the best of the applicants. In particular, it enables the marketer to add time urgency and other behavioral influences to the promotion campaign. For instance in election, the expenses of popularizing a candidate may or may not be paid by the candidate. On the basis of investigation and research, the actual execution of advertising programme should be done. By giving different addresses to different media, and when enquiries are received, it can easily be found out through scrutiny which publication fetches more enquiries. (3) To adopt a proper and effective communication mix and media mix. We may sell a house, raise funds, sell products, buy second-hand products, launch a new product, employ people, find a pen-friend etc. Ahmadabad TV - Television DD - Doordarshan STAR - Satellite Transmission for Asia Region ISA - The Indian Society of Advertisers Free samples are given to consumers to generate their interest in the product. Samples are defined as offers to consumers of a small amount of a product for trial. To improve the morale of dealers and/or sales people (by showing that the company is doing its share of promotion). When publicity is made to effect a lady look like a cinema star, associated with a charming beauty, it is a case of emotional type. The message is clear and direct. Outdoor Ads 1. Business Directories 1. Consumer Sales Promotion When the sales promotion strategies are targeted to the end consumers, it is referred to as consumer sales promotion. 8. are full of advertisements. When products reach maturity in their life cycle and are widely accepted, they are in their reminder stage. The modern day of advertisement agency has its origins during this period. It has been used from immemorial period. Therefore, the marketing cycle is shorter than the promotional duration. These messages are directed towards retailers, wholesalers and distributors. Media are important and are commercial vehicles that carry advertiser’s message to his prospects. 3. The great depression of the 1930’s saw a temporary setback in advertising growth. Sales promotion is the direct approach to the customers to encourage them to buy your products or services while advertising is an indirect approach towards encouraging them to buy your products or services. At the same time, if the advertiser increases the sales because of advertising, it is not a waste. Advertisement aims at creating and maintaining the demand of the company. From the above definitions, it is stated that advertising indicates that: (a) Advertisement is a message to large groups. They strike the attention of readers and hearers. This delay is obviously attributable to its late “industrialization”. 6. It is a deliberate and planned attempt at creating the right mood as the body copy also pours out emotions. Types of promotion and advertising . (1) What has been done and what is planned for the future-for an intelligent decision? Advertising campaigns may broadcast promotions intended to stimulate demand for particular products. (b) It is in the form of non-personal communication. Since competition is there, the advertisers aim to capture the market by influencing the demand for a specific product, probably supported by promotion activities. The positive developments during 1950’s were the emergence of television, the application of psychology and research in advertising, and invention of the concept of Unique Selling Proposition (USP) by Reeves. The survey is made on those who have seen the advertisement. Scientific advertising programme is drawn by considering all relevant factors connected with advertising. Sales promotion can also be used to achieve other objectives, such as widening distribution or ‘shelf facing’. It may also draw the readers or viewers to act favourably towards the idea or institutions featured. : “Nescafe, the coffee that tastes so good.”. But it “helps” to sell through persuasion. Let us get to understand all you need to know about sales promotion and advertisement in a quick glimpse. Trade incentive could be price off, free goods and allowances. All businessmen aim to make profit by increasing the sales at a remunerative price policy. However, one has to select the best medium, which fulfils one’s purpose. The standard of living of the public is raised by introducing modern products and the latest techniques through advertising. Sales promotion uses both media and non-media marketing communications for a pre-determined, limited time to increase consumer … The main goal of promoting is the short-term growth of revenue. For this mass communication is needed as the population is great or the market area is wide. The follow up system, as the very name suggests, is a type of advertising to approach the customer by means of correspondence. 1. Some sales promotions are aimed at consumers. The readers are encouraged to fill the coupons with address and return them to the advertiser. The consumer faces the question, “Which brand should I buy?” Generally, in the early stages of competition, the combined total effect of competitors creates significant growth for the product category. Samples help consumers verify the quality of the product. VIM can change DIM into SUPER WHITE. Evaluation of the result is necessary. “Keying” means to adopt such methods while advertising that the result may be easily assured. To introduce a new product (by building brand awareness among potential buyers). The reader knows who is behind the advertising as the sponsor is openly identified in the advertisement itself Payment is made by the sponsor to the media, who carry the message. Some sales promotions are aimed at … Advertising alone almost never “sells” products, services or ideas. Therefore, it can be said that advertising is also an act of promoting the product. Advertising is an indirect approach to present a product and persuade customers to use it. Sales promotion is designed to be used as a short-term tactic to boost sales it is rarely suitable as a method of building long-term customer loyalty. 4. The seller or the advertiser has to pay for the space (or time) through which the message (advertisement) appears. Promotions are generally used as a short — term measures only and help increase sales. Sales promotion. Sales Promotion and Advertisement: Sales promotion and advertisement are two different forms of promotion. 1. These days people use “Advertising” in various walks of life. TOS 7. Sales promotions can include limited-time free trials, discount coupons, and buy-one-get-one-free offers. Sales Promotion. Promotion is an incentive tool used to drive up short term sales. It is a mass non-personal communication, reaching large groups of buyers. However, if marketers do not advertise, consumers are likely to forget about it and switch to other alternatives being advertised regularly. An example would be offering 20% off on certain products to the customers. 20+ Sales Promotion Examples and Ideas That You Can Steal. Develop sales promotion strategy: numerous decisionsare necessary in developing a sales promotion strategy. It is not a modem origin. The main motive of consumer-oriented promotion is to increase sales directly by attracting new customers and wooing existing ones. Image Guidelines 5. These advertisements are uniform across the nation and are released through national media covering the nation. Its purpose is to inform or influence them in order to increase the sales of the advertiser. A few specimens of advertisement are given below: Before publishing your articles on this site, please read the following pages: 1. As a result of advertising, brand creation also occurs. Similar products are taken to the market. An effective advertising naturally necessitates mass production, thereby reduces unit cost by lowering the price of goods in favour of consumer. Sales promotions often attract brand switchers (those who are not loyal to a specific brand) who are looking primarily for low price and good value. This is sufficient reasons to switch to reminder advertising and keep the brand in front of consumers for top- of-mind recall. Immediate results may not be there to justify the increased cost of advertising, but future sales can be boosted by the advertisement. So an advertising programme should be prepared very carefully in order to serve the purpose fully. Advertising is done to build brand image and increase sales, whereas Promotion is used to push short-term sales. 2. (e) Advertising messages are identified with the advertiser. Advertising covers a vast area. The main purpose of the advertisement copy is to influence the buyers and by that stimulate the sales volume. ), Farm advertising – relating to farm products. Interrelationship of Sales Promotion and Advertising: Sales promotion includes all those activities which promote sales such as distribution of samples, discount coupons, contests, display of goods, fairs and exhibitions, etc. Advertising is a part of the promotion. If you have a product which is new in the market or which is not receiving a lot of attention, then you can promote this product to customers via sales promotion. For example, a search engine advertisement budget or advertisements on panels in your community might be set aside. The selling price is also reduced, but not to the extent of decreased cost of production. 7. These advertisements are brought to promote retail outlets and dealer points. Content Filtrations 6. Other consumers and shoppers may love the scent or ingredients of the product and purchase them locally. Manufacturers use large-scale advertising for impressing people with the utility of their products. As a result of advertising, brand creation also occurs. Starting as agents for newspapers, the agency diversified into other services such as copy-writing, and played the role of consultants to advertisers. A country like ours, is developing in all fields, and this is because of advertising of new and developed ideas. In case of publicity, it is not a necessity. It is not delivered by actual person. Advertising is a paid method of mass advertising, which may take the form of TV, radio, magazines, and the internet. 4. Preparation of advertising copy may be entrusted to experts who have skill and experience. Letters may be sent one after another, at an interval of about two weeks, till the result is achieved or finally stopped. This is the most popular form of advertising in all possible media including TV: for examples, Pepsi, Coke etc. When we manufacture good quality products or offer expert services, these must be known to the public. Plagiarism Prevention 4. Everybody advertises in one or the other way. The purpose of such advertising is to create a positive goodwill, which will ultimately contribute towards achieving to overall marketing and brand building goal of the organization. When advertising is sponsored by manufacturers or producers, it is a case of national (general) advertising. The aim of advertisement is to make the public to look, to like, to learn and to buy. This type of advertising is used when the market is loaded with similar products. Promotion involves mentioning the brand or new product launch, through both paid and free marketing activities. It means, the price of the product is decreased, thereby consumers are satisfied and dividend rate is increased, thereby shareholders are satisfied. Discounts 1. You could have both publicity as well as the promotion of the same person in your company, which may create the same illusion. They are asked to identify them. Practice for BBA or MBA exams using these MCQ. The aim is to persuade people to buy more. formula; Attention, Interest, Desire and Action is very important here. Market usually consists of groups of buyers for a product or service. The purpose of advertising is not only to make a profit; in some instances, it sets the stage for sales in the future by getting consumers into the business' goods and services. Advertising Promotion; Definition: Advertising is defined as a one way controlled communication and is paid to media in order to build a brand image for potential customers. emphasized the creative side of advertising and developed campaigns that stood out for their creative brilliance. The aim of advertisement is to promote sales of products or service. The good news is that you can subtract some of the taxes for advertisement and promotion. For instance, Lexus declares that the "starving search of excellence has produced its luxury cars," and the message BMW sends out by "The Ultimate Driving Machine," a word that is primarily aimed at increasing sales and branding that will pay off in future. Scientific method should also be used to make the advertisement quite effective and attractive to those for whom it is meant. From the key message to the graphic layout of your ads, everything must be taken care of. Media Introductions 1. This type is again divided into primary and selective. E.g. The long-term objectives of advertising are broad and concerned with the achievement of overall company objectives. Needs and desires of the consumers are to be studied. This type of advertisement is displayed to create a goodwill for the firm rather than to sell its products. In earlier periods, it was used only in a limited manner. From the point of view of advertisers and consumers, advertising may fail because of the following factors, (in brief): 1. To acquaint buyers and prospects with the new uses of the product (to extend the product’s life cycle). 5. Advertising And Sales Promotion; Page 1; Advertising and Sales Promotion. PR Events 1. Preparation of advertising budget by analyzing the competition in the market, area to be covered and defined objectives to the firm. Lack of experimentation with different types of appeals. In India, advertising, as a potent means of sales-promotion, was accepted hardly three decades ago. This “follow up system” is effective in concluding a sale. Thus any sponsored communication designed to influence buyer’s behaviour is advertising because advertiser pays for it. To build brand preference (by making it more difficult for middlemen to sell substitutes). The role of advertising message in this stage is to furnish product knowledge, change existing habits, develop new usage, cultivate new standards of living, and implant a new way to look at existing approaches of problem solution. And in return, a detailed information of the product, generally, in the form of a booklet will be sent to the interested persons. If the expenditure is unproductive, then it is a waste. Failure to inform the salesmen and dealers about advertising. Promotion is generally divided in two parts: Above the line promotion: Promotion in the media. Different papers may be selected for the advertisement of different departments. (c) It persuades the general public to purchase the goods or services, advertised. The publication which facilitates more enquiries may be selected and the rest may be dropped. It is the main objective. 1. Sales promotion is the process of persuading a potential customer to buy the product. Sales Promotions are tools, which help the company increase the sales volume. We hope it was clear to you, and you will find it beneficial. The copy generating larger number of enquiries is considered more effective. Here, a copy, which is recognised by a large number of readers, is considered more effective. Types of Consumer Sales Promotion tools 1. Loyalty Incentives PUBLIC RELATIONS – How to use the media 1. 2. However cost is finally paid by consumers. Promotion strategy is ideal because it is easy to set up and offers a short-term benefit for small or medium-sized businesses. Here, the advertiser tries to create an image on public support, social services etc. For example, Parry and Co; Godrej, etc. American Marketing Association defines advertising as any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor”. Suggest and lead to specific response. This is possible by “Keying” the advertising. A sample of readers is selected with a view to measure the effectiveness of an advertisement, read by them. Because of their large promotional expenditures, companies such as Molson Coors (Tim Hortons) and Canada Goose remain in the minds of millions of Canadians. It must have economy and be more efficient as compared to other means of selling. Therefore advertisement is a method of publicity: Advertisement has the prominent place among the techniques of mass education and persuasion on the public. Advertising agency is an independent concern, acting as a specialist in advertising. Advertising creates desire for new products. This marked the beginning of the modem-day, full service and agency. E.g. Promotions include free samples, special events or sales, discounts, coupons, etc. It creates an atmosphere of urgency in the text. Advertising programme is effective if sales are increased, desired change in the consumers’ habit effected and prospective customers become buyers. Social advertising is a widely adopted method. Advertising is a paid form and hence commercial in nature. 6. For this, a survey is conducted by the interviewers. There will be stiff competition among the producers. C. Mitchell 1999 defines sales promotion as a process of convincing a prospective client to buy the item And it includes several communications activities that try to provide additional worth or rewards to consumers, wholesalers, sellers, or other organizational consumers to promote instant sales. With everything going digital these days, it becomes essential to stay connected with your audience and hit the right chords. By the execution of the advertising programme, the responsibility of the management does not come to an end. Advertising is a wheel, on which marketing moves. The importance of sales promotion is the unique role it plays in the marketing mix. To provide rationalization (i.e., socially acceptable excuses). Multiple choice Questions on Advertising and Sales Promotion. As far as the consumers are concerned, advertisement is a waste, when it conveys incomplete information or a false information. This is a type of advertising used at the stage of introducing a new product to the market with the aim to inform the public as to its birth and other details. The A.I.D.A. -When advertising the product as per normal, it is aimed at attracting ultimate consumers, whereas when sales promotion is added to the product it is aimed at attracting not only consumers but retailers and wholesalers as well. Sales promotion is designed to be used as a short-term tactic to boost sales – it is rarely suitable as a method of building long-term customer loyalty. But all advertisings may not be successful. A business without advertisement cannot be thought of. Upon sending reply, if nothing is heard from the enquirer again he is approached by writing letters. Sales promotions are the campaigns that are mainly about goods and services being offered in the short term. Non-sensible preparation of advertising copy, lack of thinking and time etc. One should consider all relevant factors before taking a decision on its usefulness or waste. If you discount a $10 item to $8, you miss $2 in revenue. Promotion of sales is a direct strategy that enables consumers to buy their goods or services while advertising is an indirect way to attract them to buy your products or services. Request may be made with the customers to name the particular medium through which he gets information. (Difference between Advertisement and Sales Promotion - Advertising … Unless consumers perceive a need for the product, it will not sell. Commercial advertising or business advertising is concerned with selling products or ideas to increase the sales volume. Many people use advertising and enjoy the choices available to them. A sales promotion is any undertaking by an organization designed to increase sales or encourage the use or trial of a product or service. 4. Sales promotion is a type of Pull marketing technique. The commanding headline urges the reader to some action. Institutions like colleges, universities, missionary of charities and large corporates bring out these advertisements. These advertisements are carried out in local and vernacular media to promote the product in a local region. Sales promotion may also help in increasing the effectiveness of advertising. In other words, we may wish to give something away, seek an exchange or invite donors. ( as in mail order marketing ) by building brand awareness among buyers. Cost, effect and result happens in the consumers are concerned, advertisement is included in the market is... Or encourage the use or trial of a product sometimes focus more on brand awareness than increasing sales... 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