ADVERTISING AND SALES PROMOTION

ADVERTISING AND SALES PROMOTION

Abstract

Advertising is the dissemination of information by non-personal means through paid media where the source is the sponsoring organization. The messages carried in-medias. Advertising objectives serve as guidelines for the planning and implementation of the entire advertising programme. It helps the consumer to save their time in purchases.

It helps the manufacturer sell their products. The relation between wholesalers and retailers is improved through advertising. Sales promotion consists of diverse collection of incentive tools, mostly short-term designed to Sales promotion tools vary in their specific objectives. A free sample. Stimulates consumer trial, while a free management advisory service comments a long-term relationship with a retailer stimulates quicker and / or greater purchase of a particular product by consumers or the trade. Rationale of sales promotion may be analyses for Short-term results, Competitive Pressure, Buyers’ expectations, Low quality of retail selling. There is wide acceptance that sales promotion is one of the most mismanaged of all marketing functions. The report contained advantages, purpose of advertising and sales promotion. It also discussed rationale, plan preparation, integrating and planning advertising and sales promotion

INTRODUCTION

Adverting is only one element of the promotion mix, but it often considered prominent in the overall marketing mix design. Its high visibility and pervasiveness made it as an important social and encomia topic in Indian society. Promotion may be 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 most often intended to be a supporting component in a marketing mix. Promotion decision must be integrated and co-ordinated with the rest of the marketing mix, particularly product/brand decisions, so that it may effectively support an entire marketing mix strategy. The promotion mix consists of four basic elements. They are:-

1. Advertising

2. Personal Selling

3. Sales Promotion, and

4. Publicity

1. 1. Advertising is the dissemination of information by non-personal means through paid media where the source is the sponsoring organization.

2. Personal selling is the dissemination of information by non-personal methods, like face-to-face, contacts between audience and employees of the

1. sponsoring organization. The source of information is the sponsoring organization.
2. 3. Sales promotion is the dissemination of information through a wide variety of activities other than personal selling, advertising and publicity which stimulate consumer purchasing and dealer effectiveness.
3. 4. Publicity is the disseminating of information by personal or non-personal means and is not directly paid by the organization and the organization is not the source.

DEFINITION OF ADVERTISISNG

The American Marketing Association, Chicago, has defined advertising as “any form of non-personal presentation or promotion of ideas, goods or services, by an dentified sponsor.”

FROM THE ABOVE DEFINITIONS:

• Advertisement is a MESSAGE to large groups.
• It is in the form of NON_PERSONAL COMMUNICATION.
• It persuade the GENERAL PUBLICS to purchase the goods or services, advertised.
• It is PAID FOR by advertiser to publisher.
• Advertising messages are IDENTIFIED with the advertiser.

Advertising includes the following forms of messages:

The messages carried in-

• Newspapers and magazines;
• On radio and television broadcasts;
• Circular of all kinds, (whether distributed by mail, by person, thorough tradesmen, or by inserts in packages);
• Dealer help materials,
• Window display and counter – display materials and efforts;
• Store signs, motion pictures used for advertising,
• Novelties bearing advertising messages and Signature of the advertiser.

Advertising Objectives

Each advertisement is a specific communication that must be effective, not just for one customer, but for many target buyers. This means that specific objectives should be set for each particular advertisement campaign. Advertising is a form of promotion and like a promotion; the objectives of advertising should be specific. This requires that the target consumers should be specifically identified and that the effect which advertising is intended to have upon the consumer should be clearly indicated. The objectives of advertising were traditionally stated in terms of direct sales. Now, it is to view advertising as having communication objectives that seek to inform persuade and remind potential customers of the worth of the product. Advertising seeks to condition the consumer so that he/she may have a favorable reaction to the promotional message. Advertising objectives serve as guidelines for the planning and implementation of the entire advertising programme.

Advantages of advertising

• Advertising is considered multi dimensional.
• It helps number of marketing activities.
• It is a technique of sales promotion.
• Sales volume is increased by advertising.
• It helps and supports the salesman in selling the products.
• Consumer knowledge about the product is increase by advertising.
• It helps the consumer to save their time in purchases.
• It helps the manufacturer sell their products.
• It helps quick selling is possible which leads to more production at less cast.
• The relation between wholesalers and retailers is improved through advertising.
• Advertising introduces new products, stimulates markets regarding the existing Product and repeated sales

BENEFITS TO MANUFACTURERS:

1It increase sales volume. On the one hand, it reduces the cost of production and,on the other increases profits.

1. It helps easy introduction of products into the markets.
2. It helps to create an image and reputation not only of the product but also of the advertiser.
3. Retail price maintance is possible.
4. It helps to establish a direct contact between manufacturers and consumers.

BENEFITS TO WHOLESALERS RETAILERS :

1. Easy sale of the products is possible since consumers are aware of rhe product

and its quality.

1. It increases the rate of the turnover of stock.
2. It supplements the selling activities.
3. The reputation credited is shared by the wholesalers and retailers and alike.
4. It enables them to have product information.

BENEFITS TO CONSUMERS

1. Advertising stresses quality and very often prices. This forms an indirect guarantee to the consumers. Further more, large scale production assured by advertising enables the seller to sell the product at a lower cast.
2. It provides an opportunity to the customers to compare the merits and demerits of various substitute products.
3. This is perhaps the only medium through which consumers could know the varied and new uses of a product.
4. Modern advertisements are highly informative.

BENEFITS TO SALESMEN

1. Introducing the product is made easy.
2. Advertising prepares necessary ground for a salesman to begin his work. Hence sales efforts are reduced.
3. The contact established with the customer by a salesman is made permanent through advertising.
4. The salesman can weigh the effectiveness of advertising when he makes a direct contact with the customer.

BENEFITS TO COMMUNITY

1. Advertising in general is educative in nature. In the words of the late president Roosevelt of the USA, ‘Advertising brings to the greatest number of people actual knowledge concerning useful things; it is essentially a form of education and the progress of civilization depends on education’.
2. Advertising leads to large scale production creating more employment opportunities.
3. Advertising has made more popular and universal the uses of such inventions as the auto mobiles, radios, various household appliances. “Advertising nourishes the consuming power of man. Its creates wants for a better standing of living.. It spurs individual exertion and greater production”.

CONCEPT OF SALES PROMOTION

Sales promotion consists of diverse collection of incentive tools, mostly short-term designed to stimulate quicker and / or greater purchase of a particular product by consumers or the trade.. Sales promotion includes tools for consumer promotion (for example samples, coupons, prizes, cash refund, warranties, demonstrations, contest); trade promotion (for example buying allowances, free goods, merchandise allowances, co-operative advertising, advertising and display allowances, dealer sales contests); and sales-force promotion (for example bonuses, contests, sales rallies).Sales promotion efforts are directed at final consumers and designed to motivate, persuade and remind them of the goods and receives that are offered. Sales persons adopt several techniques for sales promotion.

Definitions of Sales Promotion

W.J. Stanton defines sales promotion as all those activities other than advertising, personal selling, public relations and publicity that are intended to stimulate customer demand and improve the marketing performance of sellers.

Purpose of sales Promotion

Sales promotion tools vary in their specific objectives. A free sample stimulates consumer trial, while a free management advisory service comments along-term relationship with a retailer. From the marketer’s perspective, sales promotion serves three essential rolesit informs, persuades and reminds prospective and current customers and otherselected audiences about a company and its products. Because distribution channels are often long, a product may pass through many lands between a producer and consumers. Therefore, a producer must inform middlemen as well as the ultimate consumers or business users about the product. Wholesalers, in turn must inform retailers and retailers must inform consumers. As the number of potential customers grows and the geographic dimensions of a market expand, the problems and costs of informing the market increase.

Objectives of Sales Promotion

The basic objectives of sales promotion are:

i) To introduce new products

To induce buyers to purchase a new product, free samples may be distributed or money and merchandise allowance may be offered to business to stock and sell the product.

ii) To attract new customers

New customers may be attracted through issue of free samples, premiums, contests and similar devices.

iii) To induce present customers to buy more

Present customers may be induced to buy more by knowing more about a product, its ingredients and uses.

iv) To help firm remain competitive

Sales promotions may be undertaken to meet competition from a firm.

v) To increase sales in off season

Buyers may be encouraged to use the product in off seasons by showing them the variety of uses of the product.

vi) To increase the inventories of business buyers

Retailers may be induced to keep in stock more units of a product so that more sales can be effected.

RATIONALE OF SALES PROMOTION

Rationale of sales promotion may be analyzed under the following points.

??Short-term results

Sales promotion such as coupons and trade allowances produce quicker, more measurable sales results. However critics of this strategy argue that these immediate benefits come at the expense of building brand equity. They believe that an over emphasize on sales promotion may under mine a brand’s future.

??Competitive Pressure

If competitors offer buyers price reductions, contest or other incentives, a firm may feel forced to retaliate with its own sales promotions.

??Buyers’ expectations

Once they are offered purchase incentives, consumers and channel members get used to them and soon begin expecting them.

??Low quality of retail selling

Many retailers use inadequately trained sales clerks or have switched to self service. For these outlets, sales promotion devices such as product displays and samples often are the only effective promotional tools available at the point of purchase.

SALES PROMOTION PLAN PREPARATION

There is wide acceptance that sales promotion is one of the most mismanaged of all marketing functions. This can be attributed to the confusion as to what sales promotion really is - which often results in expenditures not being properly accounted for. Some companies record it as advertising expenditure, others as sales force expenditure and others as general marketing expenditure - while the loss of revenue from special price reductions is not recorded at all.

The companies can no longer afford not to set objectives or to evaluate results after the event, or to fail to have some company guidelines. For example, a 1 Euro case allowance on a product with a contribution rate of 3 Euro per case has to increase sales by 50% just to maintain the same level of contribution.

In order to manage a company's sales promotion expenditure more effectively, there is one essential step that must be taken. First, an objective for sales promotion must be established in the same way that an objective is developed for advertising, pricing, or distribution.

Advertising, Promotion And The Brand

By now it is clearly understood that The role of Advertising and promotion In fast moving consumer Good Markets. Advertising has been seen as one of the primary tools of Brand Building. The high cost and difficulties of mass advertising are seen as one of the major challenges to fast moving consumer good brands.

Do All Brands Need Advertising?

The basic assumption is that brands need advertising but some strong brands apparently do not. Spencer used to spend almost nothing on advertising, Yet it was an enormously powerful brand. Of course, Both these are retailers; they have stores which people pass by go into. The Stores Themselves Are – In Their Way – Advertising, and It Is Difficult to think of major brands other than retailers those have done without advertising.

We can safely make two statements about brand communication :

??Every brand must have some means of communicating with its buyers.

This may not be advertising, but it must be direct if it is to be controllable.

and frame can be achieved, but the message has to be one that its

really new and interesting.

??All the means of communication and the messages transmitted must be

Co-ordinate to make some that they are saying the sense thing,

confused consumers don’t buy.

There Is A Price Paradise

The standard model of advertising and the brand suggests that a strong brand is less sensitive to price than a weaker one. When advertising increases sales, the average sensitivity to price also increases. In other words, a seemingly successful campaign has made buyers more sensitive to price, where as we would expect our brand buyers to be, if anything, less sensitive.

Integrating Advertising And Promotions

The answer to the problem of conflicting communications must be to Integrate advertising and Promotion. There are two common sense reasons for integration.

The First reason is that integration creates synergy. This is a much – Abused word, but the evidence shows clearly that advertising and promotion can work together to produce a greater effect.

In addition, The integration of advertising and promotion gives the consumer a coherent message. If advertising and promotion are to achieve synergy and to build a cumulative

effect in consumers’ minds, they must be mutually consistent.

Planning Advertising And Promotion

The advertising and promotion plan is only one part of the overall marketing plan and must fit within it. In order to start the advertising plan, we need some background – which Is not a very formal restrictive planning, but for a process of thinking through what the advertising and promotion are trying to achieve.

From The brand plan we should expect to find the following elements.

??A situation analysis (Where we are and why)

??Objectives (What the brand is aiming for in sales, share and other targets)

??Positioning (How the brand is positioned in the consumer’s mind )

??Strategy (How the brand is Going to compete in this market)

???Advertising strategy (What role advertising has next period with in tshe

overall strategy) And

??Budget (What moneys are available to spend on advertising promotion).

advertising objectives must include Long-Term brand building. They

may of Course also include shorter-term tasks such as announcing a new

variation or promotion.

CONCLUSION

Advertising: A firm as its basic of fundamental tool production uses it. It normally has long-term objectives like building brand awareness or building consumers loyalty or repositioning a brand. It helps sales by adding some durable and long-term value to the product. Advertising in mostly an indirect way for consumer to buy a product.

sales: It is generally designed to supplement advertising and facilitates personal selling.It performs the immediate task of increasing current sales. It aids selling by temporarily changing the existing price value relationship of the product. Sales promotion is a direct and almost open inducement to consumers to immediately try the product.

Thus from all the above studies it can be concluded that for the marketing of any product, the best way to increase sales is through the Sales promotion rather than advertising. It is so because in advertising a product there is many criteria’s, which are to be, fulfilled which is not an easy task. Thus it is easier to increase the sales through sales promotion.

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