Advertising and Sales Promotion Study Material

Media Buying

Media Buying, a sub function of advertising management, is the procurement of media real
estate at optimal placement and price. The main task of media buying lies within the
negotiation of price and placement to ensure the best possible value can be secured.

Media Planning is the art of ensuring that the client’s advertisements appear where they want
them to and that they pay the best possible price for it.

Marketing Process

It consist of the following steps:

1. Conduct research and develop a situation analysis.

2. Set objectives for the marketing effort.

3. Assess consumer needs and wants.

4. Differentiate and position the product.

5. Develop the marketing mix strategy.

6. Evaluate the effectiveness of the strategy.

Advertising Process

The following are the steps involved in the process of advertising:

1. Step 1 - Briefing: the advertiser needs to brief about the product or the service which
has to be advertised and doing the SWOT analysis of the company and the product.

2. Step 2 - Knowing the Objective: one should first know the objective or the purpose
of advertising. i.e. what message is to be delivered to the audience?
3. Step 3 - Research: this step involves finding out the market behaviour, knowing the
competitors, what type of advertising they are using, what is the response of the
consumers, availability of the resources needed in the process, etc.
4. Step 4 - Target Audience: the next step is to identify the target consumers most
likely to buy the product. The target should be appropriately identified without any
confusion. For e.g. if the product is a health drink for growing kids, then the target
customers will be the parents who are going to buy it and not the kids who are going
to drink it.
5. Step 5 - Media Selection: now that the target audience is identified, one should select
an appropriate media for advertising so that the customers who are to be informed
about the product and are willing to buy are successfully reached.
6. Step 6 - Setting the Budget: then the advertising budget has to be planned so that
there is no short of funds or excess of funds during the process of advertising and also
there are no losses to the company.
 7. Step 7 - Designing and Creating the Ad: first the design that is the outline of ad on
papers is made by the copywriters of the agency, and then the actual creation of ad is
done with help of the art directors and the creative personnel of the agency.
8. Step 8 - Perfection: then the created ad is re-examined and the ad is redefined to
make it perfect to enter the market.
9. Step 9 - Place and Time of Ad: the next step is to decide where and when the ad will
be shown.The place will be decided according to the target customers where the ad is
most visible clearly to them. The finalization of time on which the ad will be
telecasted or shown on the selected media will be done by the traffic department of
the agency.
10. Step 10 - Execution: finally the advertise is released with perfect creation, perfect
placement and perfect timing in the market.
11. Step 11 - Performance: the last step is to judge the performance of the ad in terms of
the response from the customers, whether they are satisfied with the ad and the
product, did the ad reached all the targeted people, was the advertise capable enough
to compete with the other players, etc. Every point is studied properly and changes are
made, if any.

Marketing tool

The techniques and materials used by those who are involved in the promotion of goods and
services. Most business that need to sell their goods or services to the public will make
extensive use of various marketing tools, such as market research and advertising to help
further their success.

Marketing Tools

 Product planning

 Pricing

 Branding

 Channels of distribution

 Personal selling

 Advertising

 Promotions

 Packaging
 Display

 Servicing

 Physical handling

 Fact finding and analysis

Advertising as a tool of marketing

Advertising is a tool of marketing that disseminates information about a brand which is

aimed at a large number of people at the same time using purchased space or time in

various mediums. While earlier, advertising was often seen as separate or an alternative

to marketing, it has eventually been subsumed under the latter.

In the context of marketing, advertising is possibly the most important element. It draws

from the other braches such as market research, positioning etc to create successful

persuasive communication. Advertising is also the most visible aspect of marketing as it

culminates into the most noticeable projection of everything that the product/service

wishes to appear as to its public, especially in the context of brand building.

A brand by definition is a sign of identity, the mark or label which differentiates one

product from the other. A product acquires a certain identity or a feel and a specific

brand value because of the kind of advertising that it creates for itself. It is this brand

value which then becomes crucial for companies to build their marketing strategies

upon. Subroto Sengupta in his book Brand positioning: Strategies for Competitive

Advantage talks about how advertising must position the brand. He recognizes the

difficulties of creating distinct brand identities in a fiercely competitive marketplace.

“Advertising is the discovery and communication for a brand to the target prospect.”
Therefore, advertising thus not only intends to sell but also create an aspiration towards

a certain product, and create that vital and persuasive distinction that makes it a brand.

How does advertising go about achieving its objectives?

Brand Differentiation: Communicating the difference- An advertisement needs to

communicate a difference for the brand i.e. something which sets it apart from its

competitors. The difference may be as simple as a special or new feature or color,

function, a perception of exclusivity or ‘for the masses’, a business ethic ( eco-friendly,

recyclable, preservative free) or simply a different perspective ( A cosmetic range that

promises healthy, problem free skin instead of changing the way one appears).

Differentiation can be of two kinds.

Generic differentiation: It’s the most basic form of brand differentiation where,

emphasis on the USP of the product built upon its features such as function, reliability,

durability, design or style. The unique selling point of a product must somehow figure

into the ad campaign otherwise it remains, creative but pointless communication. Of

course once a product/ service have managed to claim a stake in the market, the USP of

the product could be delegated to the background. But this can only happen when the

brand in itself communicates its value without external support. International sporting

goods such as Adidas, Reebok, and Nike for example have successfully created an idea

of what they stand for and may not need to harp on the quality or comfort of their shoes

or gear to sell their range. Instead they can choose to bring out huge energetic,

campaigns with international sports stars that convey vague notions of sport,

competition, winning etc but are still capable of generating demand for the said

products. A newer product with a more utilitarian nature would have to enlist its salient

features. Cell phone services, have to constantly keep informing their customers on the

latest schemes etc because brand value in itself matters little when compared to quality

of coverage, cost benefits etc.

Pre emptive differentiation: When products have similar features an attributes, certain

products can gain advantage by branding themselves on the basis of those features. It

chooses to talk about that particular feature while no else has and manages to create the

illusion of an innovation.

Brand/Product Positioning: Positioning is yet another key component of building

brand identity. The position of a product is the perception it brings about in the mind of

a target consumer. It reflects the essence of the brand and helps the consumer make a

judgment based on its functional and non functional benefits. This positioning is also

relative in respect of the other competing products in the market.

Marketing Guru Philip Kotler explains positioning, ‘Once the core product is chosen, it

defines the characters of the product space in which the new product has to be

positioned... .’

The nature of the product can dictate how it is to be positioned. Brand building is not

always about seeking elitism. The world’s largest brands such as McDonald’s, Burger

King, Pepsi, Coke etc are built upon the idea of ‘everybody goes there or everybody

drinks that.’

Sometimes products may wish to connect with the younger demographics by

positioning themselves as product for the young and upwardly mobile. I Pods, Jeans,

Sunglasses, Gaming consoles etc are always advertised in yuppie, zingy ways to reign in

young people, though other age groups also purchase them.

Luxury and couture brands alternatively choose to appear exclusive, upscale and impart

a sense of elegance, luxury or style. Ad campaigns for such products and brands are

carefully measured in the intensity of their dissemination and appear mostly in life

style/in-flight magazines even though they are big budget. Advertisements of designer

jewelry, watches, perfume, apparel etc are examples of this kind of positioning.
 Their pricing and availability ensures they are only affordable to the upper strata of

society; however they may enjoy a universal brand consciousness.

Conclusion

Advertising thus not only forms the visible face of marketing, it often effortlessly

integrates with other marketing variable such as promotion, brand building, tie-ups, etc.

In an era of convergent media where the lines between different forms of

communication are increasingly blurred it is hard to streamline advertising as a single

activity in itself and can in fact contributes to a vital rethinking of the product itself.

Marketing Tools

The following are the tools of marketing:

 Print Ads
 Outdoor Ads
 Radio & Television
 Posters & Promotional Displays
 Multimedia Presentations
 Speech Writing
 Press Releases

Marketing Strategy

Marketing strategy is a process that can allow an organization to concentrate its resources
on the optimal opportunities with the goals of increasing sales and achieving a sustainable
competitive advantage.[1] Marketing strategy includes all basic and long-term activities in the
field of marketing that deal with the analysis of the strategic initial situation of a company
and the formulation, evaluation and selection of market-oriented strategies and therefore
contributes to the goals of the company and its marketing objectives.[2]

Advertising Strategy

An advertising strategy is a plan to reach and persuade a customer to buy a product or a

service. An advertising strategy can be defined as a blueprint to help sell a given product to
consumers. There are almost as many different advertising strategies are there are products to
advertise, and each company follows its own unique strategy plans. However, all forms of
advertising strategy follow a few basic principles.

An advertising strategy is generally tailored to a target audience perceived to be most likely

out of the population to purchase the product. Advertising strategies include elements such as
geographic location, perceived demographics of the audience, price points, special offers, and
what advertising media, such as billboards, websites, or television, will be used to present the
product.

Steps of designing an advertising strategy

Positioning Statement

Formal advertising strategies are based on a "positioning statement," a technical term the
meaning of which, simply, is what the company's product or service is, how it is
differentiated from competing products and services, and by which means it will reach the
customer. The positioning statement covers the first two items in the listing above. The
positioning statement must also implicitly include the profile of the targeted customer and the
reasons why he or she would buy this product or this service. At a later stage, more data on
the "target consumer" is then developed as the strategy is fleshed out.

Target Consumer

The target consumer is a complex combination of persons. First of all, it includes the person
who ultimately buys the product. Next it includes those who, in certain circumstances, decide
what product will be bought (but do not physically buy it). Finally, it includes those who
influence product purchases (children, spouse, and friends). In practice the small business
owner, being close to his or her customers, probably knows exactly how to advise the
advertising agency on the target consumer.

Communication Media

Once the product and its environment are understood and the target consumer has been
specified, the routes of reaching the consumer must be assessed—the media of
communication. Five major channels are available to the business owner:

 Print—primarily newspapers (both weekly and daily) and magazines.

 Audio—FM and AM radio.
 Video—Promotional videos, infomercials.
 World Wide Web.
 Direct mail.
 Outdoor advertising—Billboards, advertisements on public transportation (cabs,
buses).

Each of the channels available has its advantages, disadvantages, and cost patterns. A crucial
stage in developing the advertising strategy, therefore, is the fourth point made at the outset:
how to choose the optimum means, given budgetary constraints, to reach the largest number
of target consumers with the appropriately formulated message.

Implementation

The advertising campaign itself is distinct from the strategy, but the strategy is meant to guide
implementation. Therefore across-the-board consistency is highly desirable. Copy, artwork,
images, music—indeed all aspects of the campaign—should reflect the strategy throughout.
This is especially important when multiple channels are used: print, television, and direct
mail, for instance. To achieve a maximum coherence, many effective advertisers develop a
unifying thematic expressed as an image, a slogan, or a combination which is central to all
the elements that ultimately reach the consumer.

Types of Advertising Strategies

1. 'Authentic' Product Positioning Strategy

This is the ideal strategy for firms who are the first to develop a position for its product type.
Levi's slogan 'the original jeans' is one such example; it takes advantage of the public's
tendency to associate the first brand with what is also more authentic, and think that the other
products are thus mere imitations

2. 'Lowest price' advertising Strategy

This technique allows you to easily highlight your competitive benefits. Walmart is one such
example.

3. 'Higher price' advertising Strategy

This plays on the idea of prestige; or ostentatious demand / snob appeal in economics terms.
Convey a sense of class, as in the campaigns ran by Gucci, Rolex, Montblanc, and Haagen-
Dazs. Customers usually associate higher price with higher product quality.

4. Sturdiness Advertising Strategy

This exploits consumers' desire to want something durable. Samsonite and Volvo are perhaps
the best examples.

5. Sex appeal advertising Strategy

These appeals to raw emotions and works effectively for a wide variety of products: beer,
champagne, shaving cream, toothpaste, underwear, lingerie, perfume.

6. Gender Advertising Strategy

Famous male-oriented products include Marlboro cigarettes and Lava, while famous female-
oriented products include Virginia Slim cigarettes. Interestingly, there is a greater emphasis
on women, since they make up to 80% of all household purchasing decisions. Women buy
80% of men's undergarments and 65% of their dress shirts.

Marketing Strategy

An organization's strategy that combines all of its marketing goals into one comprehensive
plan. A good marketing strategy should be drawn from market research and focus on the right
product mix in order to achieve the maximum profit potential and sustain the business. The
marketing strategy is the foundation of a marketing plan.
Marketing strategy is a process that can allow an organization to concentrate its resources
on the optimal opportunities with the goals of increasing sales and achieving a sustainable
competitive advantage.[1] Marketing strategy includes all basic and long-term activities in the
field of marketing that deal with the analysis of the strategic initial situation of a company
and the formulation, evaluation and selection of market-oriented strategies and therefore
contributes to the goals of the company and its marketing objectives.[2]

Developing an advertising strategy

 Segmentation – dividing the marketing into distinct groups

 Targeting – deciding which of these groups to communicate with, and how to talk to
them
 Positioning – how the product or brand should be perceived by the target groups
 Messaging - delivering a specific message in order to influence the target groups

Direct-Response Marketing is a type of marketing designed to generate an immediate

response from consumers, where each consumer response (and purchase) can be measured,
and attributed to individual advertisements. [1] This form of marketing is differentiated from
other marketing approaches, primarily because there are no intermediaries such as retailers
between the buyer and seller, and therefore the buyer must contact the seller directly to
purchase products or services. Direct-response marketing is delivered through a wide variety
of media, including DRTV, radio, mail, print advertising, telemarketing, catalogues, and the
Internet.

Broadcasting is the distribution of audio and video content to a dispersed audience via any
audio or visual mass communications medium, but usually one using electromagnetic
radiation (radio waves). The receiving parties may include the general public or a relatively
large subset thereof. Broadcasting has been used for purposes of private recreation, non-
commercial exchange of messages, experimentation, self-training, and emergency
communication such as amateur (ham) radio and amateur television (ATV) in addition to
commercial purposes like popular radio or TV stations with advertisements.

What is meant by broadcast media?

The term 'broadcast media' covers a wide spectrum of different
communication methods such as television, radio, newspapers,
magazines and any other materials supplied by the media and press.

What types of information are available in the broadcasting media?

The broadcasting media supplies lots of valuable information, for example speeches,
documentaries, interviews, advertisements, daily news, financial markets and much more.
The latest (newest/most up-to-date) information can be found here.

Out of home media is a way of reaching customers when they are not at home, watching TV
or reading that newspaper or magazine. Out of home media usually works best in high
traffic locations throughout cities. Street posters are one of the most popular forms of out of
home media because they target the consumer at eye-level while they are walking down the
street. Posters have become a major form of out of home media and are widely recognized
as part of pop culture. Whether you are a pedestrian or driving down the busy city streets, it
will work for you because it brings your campaign into neighbourhood where your
demographic resides.

Out of home media is used to differentiate traditional, “in-home” advertising media from
advertising that reaches consumers when they are on the go. The best definition of out of
home media is all the advertising that is not on television, the radio, in magazines and
newspapers or on the Internet. And while out of home advertising is an innovative field with
creative new advertising media being invented all the time, the category includes

 billboards
 transit advertising
 stadium and sports marketing
 in-store and retail advertising
 street teams
 taxicab ads
 digital signage
 narrowcasting
 wrapped vehicles
 cell phone marketing
 videogame advertising
 health club advertising
 resort advertising/sampling
 cruise ship advertising

What is tabloid newspaper?

A tabloid is a newspaper with compact page size smaller than broadsheet, although there is
no standard for the precise dimensions of the tabloid newspaper format. The term "tabloid
journalism", which tends to emphasize topics such as sensational crime stories, astrology,
celebrity gossip and TV is commonly associated with tabloid sized newspapers, though some
respected newspapers such as The Independent are in tabloid format, and in the United
Kingdom the size is used by nearly all local newspapers. In the United States, it is commonly
the format employed by alternative newspapers. Some small-format papers which claim a
higher standard of journalism refer to themselves as compact newspapers instead.

The tabloid newspaper format is particularly popular in the United Kingdom, where its page
dimensions are roughly 430 mm × 280 mm (16.9 in × 11.0 in).

What is broadsheet newspaper?

The broadsheet is the largest of the various newspaper formats and is characterized by long
vertical pages (typically 22 inches / 559 millimetres or more). The term derives from types of
popular prints usually just of a single sheet, sold on the streets and containing various types
of material, from ballads to political satire. The first broadsheet newspaper was the Dutch
Courante yurt Italian, Duytslandt, &c. published in 1618.

What is Prime time?

The regularly occurring time at which a television or radio audience is expected to be
greatest, generally regarded as between 8 and 11 p.m.Part of daily broadcast time during
which the number of listeners or viewers is the highest. In radio broadcasting, there are
commonly two prime times: Morning drive (6 a.m. to 10 a.m.), and Afternoon or Evening
drive (3 p.m. to 7 p.m.), Monday through Friday. In TV broadcasting, the only prime time is
from 4 p.m. to 8 p.m., Monday through Saturday, and from 7 p.m. to 11 p.m. on Sunday.

Define circulation.
Of a print publication, the average number of copies distributed. For outdoor advertising this
refers to the total number of people who have an opportunity to observe a billboard or poster.

Techniques of Public relations

Counselling and Program Development

Counselling on matters related to communications is the most important function of public

relations. None of the programs proceed without a foundation of sound strategies with clear
goals and objectives. A written plan of action defines the objectives as a client, communications
needs and appropriate strategies and activities. The plan also includes a schedule for realizing
objectives and a recommended budget. Evaluation of program effectiveness is ongoing.

Media Relations

It is the current contacts with general media such as newspapers and consumer magazines and
with industry-oriented business, trade and technical publications etc. Regular and frequent
phone and personal communications keeps the awareness high.

Interview Arrangements and Preparation

Preparing a detailed briefing about the type of publications, the reporter, the subject, and the
types of questions expected.

Editorial Tours

Editorial tours can prove valuable opportunities for meeting with editors on an informal basis.
One or two client executives and an agency representative visit appropriate business, trade
and technical publications and industry consultants. Such tours takes place immediately
preceding tradeshows or major association events.

News Conference Planning and Coordination

Although the news conference is an accepted public relations technique, but these are
reserved for truly major and significant announcements.

When we do stage news conferences, we assume responsibility for selecting the media list;
preparing special invitations; preparing press kits and other special materials; arranging time,
place, refreshments and other logistics; briefing and rehearsing client participants; and
handling important follow-up with individual reporters and editors.

Writing

It is also a vital element of public relations and include —

1. News Releases — On-going news releases will cover new products, product
enhancements, personnel appointments and promotions, plant and other facility
expansions, pricing changes and, of course, key business developments such as
contracts and marketing agreements.
2. "Perspective" News Releases — the perspective release is a statement by an
executive about an issue of importance to his or her industry. Such releases are
effective in building recognition and respect for company executives. Editors
frequently request these releases be expanded into longer viewpoint, guest editorial or
opinion articles.
3. Articles — it generate features, application and case-history articles, as well as highly
technical articles.
4. Papers and Speeches — speaking engagements at key industry events and forums
provide important visibility. Each presentation also becomes an opportunity for
generating news releases and other publicity, beyond the immediate audience.
5. Editorial Calendar Reports — preparing an annual calendar of themed publications
issues for the coming year. These are updated as new information becomes available
through special periodicals which report last-minute activities of the press.

Crisis Management

No one enjoys planning for a crisis. Many companies would prefer not to have to talk to
customers, the press or even employees when crises occur. But open channels of
communication enhance your company’s image in good times as well as bad. A crisis well-
handled can build well-earned respect, as well as trust in company management. Management
should always be prepared to handle the unexpected and the unwelcome. Crisis should be
anticipated to better prevent their occurrence.

Push and Pull strategy of sales promotion

Push

A “push” promotional strategy makes use of a company's sales force and trade promotion
activities to create consumer demand for a product. The producer promotes the product to
wholesalers, the wholesalers promote it to retailers, and the retailers promote it to consumers.
A good example of "push" selling is mobile phones, where the major handset manufacturers
such as Nokia promote their products via retailers such as Car phone Warehouse. Personal
selling and trade promotions are often the most effective promotional tools for companies
such as Nokia - for example offering subsidies on the handsets to encourage retailers to sell
higher volumes.

Pull

A “pull” selling strategy is one that requires high spending on advertising and consumer
promotion to build up consumer demand for a product. If the strategy is successful,
consumers will ask their retailers for the product, the retailers will ask the wholesalers, and
the wholesalers will ask the producers.

Corporate Identity
The concept of corporate identity is akin to what we refer to when we talk about our own
identity, the specifics that differentiate us from others. It is our personality and character that
maintains our individuality, which we express through how we behave, speak, and even what
we wear.
Similarly, a business makes itself distinct through the image that it presents to the world,
through collateral like business cards, letterheads, brochures and other options. It is a physical
expression of the company's brand, an extension of the culture that is already expressed
through communication style and behaviour exhibited to maintain the image of the business.

The Importance of Corporate Identity

In a fast-paced and competitive world where the consumer has innumerable options available
to them, a company needs a strategy to establish a solid presence in the marketplace. There
are strong reasons to believe that the right corporate identity helps achieve this business
objective.

Building Corporate Persona: When we meet a person, it is the first impression that has the
most impact. We tend to gather cues from what we see and feel, interpreting our observations
to form our opinion about the person. This is also how we treat products and companies. To
stand out from their competitors, every company needs to have a good brand image, to create
a niche in the client’s mind by having a unique, pleasing appearance and identity.

Consumer Loyalty: The consistent design of a corporate identity, in accordance with

objectives set for the business, uphold and reflect the ethos, culture, principles, future
ambitions, or visionary goals of the business. Customers who find this to be in accordance
with their philosophy and liking feel connected to this image and are more likely to develop
loyalty to the business.

Business Enhancement: Personal experiences with a corporate identity influence consumers

and their purchasing decisions. A corporate identity with a strong and positive impact creates
a favourable mental image of the business in a consumer's mind. A strategically planned
identity gives a good return in terms of referrals and repeat business.
Businesses may occasionally need to update their corporate identity, if there is an ideological
change in the target audience over time and as the world changes. Design professionals can
help with attention grabbing logos, impressive business cards, elegant letterheads, inviting
envelopes, stunning brochures and other identity elements. Invest in your corporate identity
to develop trust, a sense of value, and a lasting connection with your customer base.

Corporate image

A corporate image refers to how a business is perceived. It is a generally accepted image of

what a company stands for. In creating corporate image, marketing experts use public
relations and other forms of promotion to suggest a mental picture to the public. Typically, a
corporate image is designed to be appealing to the public, so that the company can spark an
interest among consumers, create share of mind, generate brand equity, and thus facilitate
product sales.

A corporation's image is not solely created by the company. Other contributors to a

company's image could include news media, journalists, labour unions, environmental
organisations, and other NGOs.

Factors associated with corporate identity

Corporate identity is often viewed as being composed of three parts:

 Corporate design (logos, uniforms, corporate colours etc.)

 Corporate communication (advertising, public relations, information, etc.)
 Corporate behaviour (internal values, norms, etc.)

Public Relations: The Process

It isn't enough to know what public relations is and what purposes it serves. To practice
public relations, one must understand the process by which public relations operates. As we
have already discussed, public relations goes far beyond the task of producing messages. An
effective public relations effort is the result of mutual understanding between an organization
and its publics. The development of this understanding can be regarded as a four-step
process:
1. Research An initial fact-finding stage defines the problem areas and differentiates
between publics.
2. Planning Once the facts have been gathered from the various publics, decisions must
be made regarding their importance and potential impact on the organization. After
these decisions are made, strategies must be developed to enable the organization to
achieve its goals.
3. Action and Communication Strategies are implemented as new organizational
policies and/or projects. Messages are then constructed to reach target publics.
4. Evaluation Once a public relations campaign is developed and implemented, it
should be followed by an evaluation of its effectiveness in meeting the criteria that
were set. The results of the evaluation are used both to assess the effectiveness of the
effort and to plan future action.
Hard Selling

Hard sell strategies are aggressive and usually put a high amount of pressure on the client.
The clerk who sold me the shovel is a simple example. Other tactics include cold calls,
forceful sales letters, and unsolicited pitches. The main advantage of hard selling is that it
gets straight to the point. This is especially important for clients who are ready to buy and
aren’t looking around to do a few more meetings. The problem with the hard sell is that when
it’s done too aggressively, your attempt to help will be seen as an annoyance. This plays a big
role, especially if you’re working with small businesses that are savvy to such sales
techniques. No matter how genuine your offer is, it might come off sounding like a scam.

Soft selling
Sales philosophy oriented toward identifying the customer's expressed and tacit needs and
wants, through probing questions and careful listening. It contrasts with hard selling which
promotes application of psychological pressure to generate a relatively quick sale. In
advertising, a soft sell is an advertisement or campaign that uses a more subtle, casual, or
friendly sales message. This approach works in opposition to a hard sell.