28 Advertisement and promotion management

P.G. Padma Gowri

epgp books

 

 

 

 

Introduction:

 

The Latin word ‘advertere’ means ‘to turn’ the attention. Advertising means “to turn attention of people to a specific thing”. It also means ‘to make generally or publicly known’, described as publicity to increase sales of the product.

 

Advertising is thus, a mass communication tool, which is essentially in paid form a firm or an individual and the main purpose of is to give information and develop attitudes and induce action . Advertisement is very useful to the advertiser. Every techniques of Advertising turns the attention of the readers or the listeners or the out lookers towards a product or a service or an idea.

 

The Latin word’ promovere‘is the base word of promotion. It means “to move forward” or to push forward. The two words ‘marketing communication’ and promotion can used interchangeably. According Mr. Stanton “promotion includes, advertising, personal selling, sales promotion and other selling tools”.

 

Objectives:

  • To understand basic Advertising in management.
  • The role of media in Advertising management.
  • To know the concepts of promotion in management.
  •  Understand the Various aspects of Advertisement and promotion in product selling.

Role of advertising in business world:

 

Advertising is nothing but in which sellers communicate to their buyers the worth of their goods and services. Advertising is an integral part of our economic and social system.It most important place in the frame works of dynamic marketing. The role of advertising in the present business world can be analyzed by social, economic and psychological aspects.

 

The advertisement accomplishes by communicating correctly and effectively, by communicating to right people, right message, using brilliant and persuasive language, making use of appeals to different human motives. Advertisements sometimes perform sales job a subtle and indirect manner.

 

Advertising is the subsystem of economic system of a nation. It simulates a healthy economy. It also helps create financially healthy consumers who are more informed, better educated, and more demanding.

 

Advertising has affected not the core cultural values but the subsidiary cultural values. For example, any person to get married is cultural value. Advertising cannot change this cultural values but, it telling the people that, to marry late and not in the early age. It is a subsidiary cultural values Advertisement cannot affect it. There are many factors which affect culture .but Successful advertising is consistent with the cultural values of a given society, but it can transfer some cultural values of one society to another at a given point of time.

 

Advertising is closely linked to customer behavior. It affects personality of the consumer, his attitudes, his concepts of self, beliefs and opinions, and life style etc. Advertising appeals to our physiological and psychological motives.

 

The Key players in Advertising:

 

In the Advertising Key players are Advertiser, Advertising agency, Media, suppliers (or) vendors and Target audience.

  • Advertising begins with the person or organization that uses advertiser to send – out a message about its products. This person is called as advertiser. The advertiser started the effort of advertising by identifying a market problem that advertising can solve he also makes financial decisions about advertising budget. He hires advertising agency for planning and exsiccation of his advertisement.
  • Advertising agency: in the advertising world the advertising agency creates the advertisement. Most of the large business has their advertising department primary responsibilities is to act as a liaison between marketing department and advertising agency (or agencies) and other vendors.
  • Media: The third important player in the advertisement field is media. It is composed of the channels of communication that carry the message from the advertiser to the audience. In some cases we got the audience feedback example: advertisement in internet.
  • The other group of service organization for advertisement is suppliers or vendors. The ads created by ad agencies are placed in suppliers place.
  • The advertising strategy and planning starts with the identification of the customer or prospective customer. Prospective customers are the desired audience for the advertising message. prospective customer have a wish and having capacity to buy a product

Classification of Advertisements:

 

National advertising have a target of entire country, Example: Brook bond, Larsen and toubro, Hindustan lever etc.

 

Local advertising have a target audience with in state or regional level. Ex: Nirma washing power initially sold only in Gujarat and then enters in other markets.

 

Global advertising is multinational firms treat world as their market. Firms such as IBM, SONY ,TIMES etc.

 

On the basics of target group:

 

Consumer advertising

 

A major portions of total advertising is directed to buyers of customer products who purchase them either own use or for their households.

 

Industrial advertising

 

It refers to those advertisements which are issued b the manufacturers/distributors to the buyers of industrial products.

 

Trade advertising

 

Advertisements which are directed by the manufacturer to distribution channel persons, such as wholesalers or retailers are called trade advertising.

 

Professional advertising

 

There are certain products for which the consumers themselves not responsible for the buying choice. EX: Prescription given by doctors. It leads to Professional advertising.

 

On the basis of corporate philosophy:

 

Corporate advertising:

 

The main aim of the corporate advertising is building a positive public image for their firm. Shareholders, employees, suppliers, legislators and general public are call as public people. Corporate advertising does not attempt to sell a particular products,it benefits the organization as a whole.

 

Brand advertising

 

Most of the ads are brand advertising. It is designed to promote the sale or reputation of a particular product or brand. The brand advertising further classified in to the following,

  • Informative brand advertising
  • Persuasive brand advertising
  • Reminder -oriented Brand advertising
  • Negative advertising

On the basis of media:

 

On the basis of media the advertising can be classified as,

  • Audio advertising
  • Visual advertising
  • Written advertising
  • Internet advertising
  • Verbal advertising.

The important classification of advertising is media based advertising. For example: TV, radio, outdoor, magazine, business periodical, newspaper and direct mail advertising. The above are the common classification of advertising .

 

Functions of advertising:

 

Advertising is a fast growing segment. The basic functions of advertising are,

 

Communication with the customer:

 

There is a need for information about wide variety of products as the economy growing rapidly. Advertising is a key which establishing communication between manufacturers and organizations.

 

Contribution to economic growth:

 

It helps economic growth by expanding the market, particularly for new products, it also helps to develop new market segments.

 

Catalyst for the change:

 

Advertisements serve two things to their customers. First a message to be communicated about the product .Second aspect, it improve the customers standard of living providing innovative products and services. Thus it act as a Catalyst for the future change.

 

Stimulates Demand:

 

Advertisements inform consumers about the availability of a product in the market. It stimulates hidden needs, and reinforces the personal response .

 

Strengthens other promotion mix elements:

 

Advertising performs the pre-selling of the product and makes the job of the shopkeepers and sales persons easier. It reaches large audience and makes them pre-disposed.

 

Advertisement often induces brand trial or purchase. When the product delivers the promised quality, service, and the value, it creates satisfied customers who are all act an instrument in spreading the good qualities of the product. Thus it Develop the brand preference in the competitive market.

 

Reduce costs: It’s also act ingredient to cut down production and selling cost by increase in production volume. Net result the cost of the production is reduced.

 

Brand image building:

 

Advertising plays an important role in building the brand image. Customers develop mental image of brands that may appeal to different market segments

 

Innovation:

 

Advertising encourages innovation and new product development .the innovation products have less competition so the risk will be reduced.

 

Growth if the media:

 

The acceptance of advertising by different media enhances the potential growth and used to rise revenues.

 

Scope of Advertising:

  • Advertising creates message of the products. The message may be oral or visual. It is designed systematic and psychological manner to influence the perspective customer and formulated on the basis of environment, need and other objectives.
  • Advertising creates demand, promotes marketing system, presents the image of the organization, helps middle man and performs some other functions as well.
  • The advertiser helps the people understand the merits and demerits of his products.
  • Advertising have certain objectives like increased sales, sustaining the established product, creation of awareness about the product, introducing the new products, helping the middle man in turn help the public large.
  • The advertiser performed Advertising activities by economically, effectively and regularly
  • Advertising is considered to be art as well as science .it has some of the characteristics of both. It is an art because the advertiser employs his creative abilities to devise effective was of communication. Techniques and professional tenets are essential factors in Advertising.

Advantages of Advertising:

  • Goods which are produced on a large scale are marketed the method of persuasion through Advertising. It act as an aid to selling.
  • Advertising will smoothening fluctuations in demand.
  • Due to increase in sales and turn over leads high volume of production, thus lowering the average cost of production per unit.
  • Quick turn over for small investors is possible due to Advertising.
  • Advertising gives the ample that feeling of pride in their and the products they produce, which is basic to high morale. It can, thus, inspire executives and workers to improve d performance.
  • Once the products are successful it creates good will to the company.
  • It creates greater awareness to the customer about the products
  • It helps Middle man to enhance their sales.

Promotion:

 

Promotion is defined as “the co-ordination of all seller initiated efforts to set up channels of information and persuasion to facilitate the scale of a good or service.” Promotion is a supporting component in a marketing mix. Promotion decision must be co-ordinate and integrated with the rest of the marketing mix, particularly product decisions, so that it may effectively support a marketing mix strategy

 

The promotion mix consists of 4 basic element:

 

They are: 1. Advertising 2. Sales Promotion 3. Personal Selling, and 4. Publicity

 

Sales promotion:

 

Sales promotion is an important component of the marketing communications mix. It adds extra value to the product motivate s the dealer/customer to buy the product. Hence, seals promotion methods aim to capture the market and increase the sales volume.

 

Sales promotion techniques:

 

Sales promotion techniques have the following three categories.

 

Consumer sales promotion: Example, samples, coupons, prices, cash refund, warranties, demonstrations etc.)

 

Trade/ middle man sales promotion:

 

Example, buying allowances, free goods, allowances, cooperative advertising, advertising and display

 

Sales force sales promotion:

 

Example, bonuses, contests, sales rallies

 

Nature of the promotion:

 

Manufacturing a product and making it available is only company’s job. It is more important or equally important, to make it known to the customer that the product is available in the market. In a competitive market, where many firms are striving to win over consumers, it not only enough if just the availability is made known.

 

It is essential to propagate the distinctive features of the product.

 

Marketing communication is a communication process, by which the producers of the products or services drawn attention of the consumers or prospective consumers towards their products and services. The communication is made either along the product or well in advance of the introduction of the product.

 

Objectives of promotion:

 

Leads to behavior modification:

  • Modify behavior and thoughts(EX; motivating to drink coca cola and pepsi)
  • Reinforces existing behavior( for EX : persuading to continue coca cola once customer began to take)

Objective to Inform:

 

The promotional communications are designed to inform the largest market about the firm’s product or services, it is necessary to increase initial demand.

 

Objective to persuade:

 

It is designed to stimulate purchase. Though sometimes the firms want to to create a positive image for a long term gain rather than the immediate purchase.

 

Objective to Remind:

 

It is used to keep the product brand name in the public’s mind and is used in the maturity stage of the product life cycle.

 

Flow of promotion:

 

Marketing communication has an “external flow” and an “internal flow”

 

The external flow of the marketing communication is directed at the current, past, and potential customers; at the channel members; at competing and non-competing companies: government & private agencies and experts in the field.

 

The communication may include advertising, personal selling, direct mail, warranties, products updates, publicity etc.

 

Internal flow:

 

In this aspect marketing communication flow involves various departments in the company, all the company employees’ ad stockholders.

 

National level promotion:

 

This National Marketing with Promotion Strategy relies on a common understanding of terms marketing, promotion and promotion plans. The marketing will be carried out with in the country. It is practiced by many firms in our country. National level promotion encourages the consumer to buy their product wherever they are sold. Most national advertisements concentrate on the overall idea and desirability of the product

 

The famous Indian national advertisers are: Hindustan Levers, ITC, DCM ,TISCO etc.

 

Local level promotion:

 

Local advertising it is generally done by retailers rather than manufacturers. These advertisements save the customer time and money by passing along specific information about products, prices, location, and so on. Retailer advertisements usually provide specific goods sales during weekends in various sectors.

 

International level promotion:

 

Personal selling in international marketing has the following disadvantages:

  • In international marketing consist of many languages, the proper training for sales person was given.
  • The Commercial administration staff will have to take care of sales enquiries, send out product literature and samples, and make quotations – often online.
  • Proper investment of time and effort in recruiting, motivating, organizing and training a local sales force needed.
  • There is a dilemma as to whether to place expatriate employees into your international target market, or to recruit locally.

Media Choices International Marketing.

 

Other potential media would include:

  • Web-based marketing using your own domestic site, or one developed specifically for the target market.
  • Chinese websites are very different to Western sites. They are very busy and every single space is filled with images and text.
  • International tradeshows, trade missions, sponsorship (for example international sporting events), Public Relations (for example oil companies) and a variety of other international marketing communications are available to the international marketer.

Conclusion:

 

Advertising is a relatively low-cost method of conveying selling messages to large number of customers. It can secure leads for salesmen and middlemen by convincing readers to request more information and by identifying outlets handling the product. It can force middlemen to stock the product by building consumer interest.

Advertising help the dealers and salesmen for new products working and applications. Advertising is an important factor in the campaigns to achieve such societal-oriented objectives such as the family planning, discontinuance of smoking, physical fitness, and the elimination of drug abuse.

 

To conclude, promotion may be viewed as a long-run process. Mr.Joel Dean has indicate that advertising should be seen as a business investment, in the same sense as opening a new plant or spending additional funds on improved package design.

 

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