ADVERTISING ADVERTISING

What is it? Advertising is a message designed to promote a product, a service, or an idea. The purpose of advertising is to sell products or services.

Defination “Any paid form of non personal presentation and promotion of ideas, goods, or services by an identified sponsor.” “A marketing communications element that is persuasive, non-personal, paid for by an identified sponsor, and disseminated through mass channels of communication to promote the adoption of goods, services, persons, or ideas.”

Advertising Media Advertising reaches people through various forms of mass communication. These media include newspapers, magazines, television, radio, the Internet, direct mail, outdoor signs, transit signs, window displays, point-of-purchase displays, telephone directories, novelties.

Media Classes Television Magazines Newspapers Radio Outdoor Transit Direct Mail

The Functions of Advertising Builds awareness of products and brands Creates a brand image Provides product and brand information Persuades people Provides incentives to take action Provides brand reminders Reinforces past purchases and brand experiences

OBJECTIVE OF ADVERTISEMENT To increase support:- Advertising increases the morale of the sales force and of distributors, wholesalers and retailers. To stimulate sales amongst present, former and future customers. It involves decision regarding the media.

OBJECTIVE OF ADVERTISEMENT To retain loyalty:- To retain loyalty of present and former consumers. To protect an image:- Advertising is used to promote an overall image of respect and trust for an organization. To communicate with consumers.

ADVETISING and PROMOTION – ARE AIMED AT Making potential customers aware of existence of your business, your product and services and to encourage them to buy from you.

PROMOTION Sales promotion is any initiative undertaken by an organization to promote an increase in sales, usage or trial of a product or service

Sales promotion activities includes – any initiative undertaken by an organization to promote an increase in sales, usage or trial of a product or service. In other words, Sales Promotion activities are incentives offered by manufacturers or dealers to increase the sale of their goods.

These incentives may be in the form of: Free samples, Gifts, Discount coupons, Demonstrations, Shows, Contests, etc.

Objectives of Sales Promotion i. To increase sales. ii. To introduce new products (free sample distribution). iii. To attract new customers and retain the existing ones. iv. To maintain sales of seasonal products. v. To meet the challenge of competition.

Tools of Sales Promotion Free samples: medicines to doctors, books to teacher etc Premium or Bonus offer: buy one get one, 30% extra, free tooth brush with paste etc Exchange schemes: Price-off offer: Under this offer, products are sold at a price lower than the original price.

Tools of Sales Promotion Coupons: Fairs and Exhibitions: Trading stamps: Scratch and win offer: Money Back offer:

Importance of Sales Promotion From the point of view of manufacturers: Sales promotion is important for manufacturers because It helps to increase sales in a competitive market and thus, increases profits; It helps to introduce new products in the market by drawing the attention of potential customers; Contd…..

when a new product is introduced or there is a change of fashion or taste of consumers, existing stocks can be quickly disposed off; it stabilizes sales volume by keeping its customers with them

Importance of Sales Promotion From the point of view of consumers The consumer gets the product at a cheaper rate; It gives financial benefit to the customers by way of providing prizes and sending them to visit different places; The consumer gets all information about the quality, features and uses of different products; Contd…

Certain schemes like money back offer creates confidence in the mind of customers about the quality of goods; and It helps to raise the standard of living of people. By exchanging their old items they can use latest items available in the market. Use of such goods improves their image in society.

Buying Motives A buying motive is the reason why the customer purchases the goods. Knowledge of buying motive of customers is important for the producers and suppliers.

Maslow's hierarchy of needs Theory in psychology proposed by Abraham Maslow in his 1943.

Primary buying motives: Related to the basic needs of human being. According to Malvin S. Hatrick, there are two motives. Primary buying motives: Related to the basic needs of human being. Secondary buying motives: Are influenced by the society where he is born and lives.

Classification of buying motives: 1. Emotional love and affection Curiosity Fashion Pride and Prestige Fear 2. Rational Economy Utility Comfort and convenience Durability Security

Classification of buying motives: 3. Patronage Service Motive Quality Location Store loyalty Friendly behaviour