advertisement vs sales promotion
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Advertisement Vs Sales Promotion
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After passing out the examinations, suppose you want to start a small firm in
your locality. You have sufficient space, required funds and skills to run it. But
how people will know about your firms product or service you are going to
offer?
Even though the quality of goods and services is good, if you must also take
measures on continuous basis to make people aware about your firm, the range
service you are offering so that you can get clients regularly.
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Advertising is any paid form of non-personal presentation and promotion of
ideas, goods and services by an identified sponsor.
Advertising is non-personal as it is not directed to any single individual.
The manufacturer is identified as his name and address is always contained
in an advertisement and he also bears the cost involved in the process.
Advertisement
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In a newspaper, you not only read articles on current news, but you will also
come across information or message about products or services like cycles,hair oils, transporters, builders etc.
You also come across such information in journals, magazines, roadside
hoardings, radio, television etc. These information make you aware about the
products and services in terms of their availability, price and features.
Hence, whenever you feel a requirement for such products or services you trygo to the place of their availability, look at the features, quality and buy them
if they meet your requirement.
The very purpose of giving such advertisement is to make the customers
aware about any product or service and induce them to avail the product
and service
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Non-personal presentation ofmessage In advertisement there is noface-to-face or direct contact with the customers. It is directed to
prospective buyers in general.
Paid form ofcommunication In advertisement, the manufacturer
communicates with prospective customers through different media like
newspapers, hoardings, magazines, radio, television. He has to pay certainamount for using space or time in those media.
Promotion ofservice, product or idea Advertisement contains message
regarding any particular product, service or even an idea. It makes people
aware about the product and induces them to buy it.
Sponsor is identified The identity of the manufacturer, or service provider
who issues advertisement is always disclosed.
Features ofadvertising
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To educate customers Can you remember the advertisement of
UNIVERSAL SUPER SAVER OFFER? The advertisement educates
the customers about the offers and discounts available from UNIVERSAL.
To create demand for new product You read in newspaper about
Gel Pen introduced in market which is very economical and convenientin writing. This shall motivate you to buy the mentioned product. In turn,
demand for the new product is created.
To increase sales With the help of advertisements demand for new product
could be created, demand for the older products can also be sustained. With
Increase in demand, the sale of product also increases.
Objectives ofAdvertising
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Media of Advertising
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Media ofAdvertising
Print media
1. Newspapers
2. Periodicals
Electronic Media
1. Radio
2. Television
3. Internet
OtherMedia
1. Hoardings
2. Posters
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Print media is commonly used medium of advertising by businessman. It
includes advertising through newspaper, magazines, journals etc.
Newspapers is a common medium of advertising. The advertiser
communicates his message through newspaper which reaches millions
of people.
Advantages
1. Newspapers normally have wide circulation and a single
advertisement in the newspaper can quickly reach to large number ofpeople
2. The cost of advertising is relatively low because of wide circulation.
PrintM
edia
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Periodicals are publications which come out regularly but not on daily
basis. These may be published weekly, fortnightly, monthly basis.
For example: India Today, Frontline, Ananda Viktan, Kumudam etc.
Advantages:
1. Periodicals have selected readership, hence advertisers will know
their target customers and accordingly select the advertisement.
2. Preserved for longer time to be referred in future, read at leisure,
whenever required.
Periodicals
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This is popular form of advertising in modern day marketing. It includes
Radio, Television and Internet.
Radio Advertising In radio there are short breaks during transmissionof any programme which is filled by advertisements of products and
services.
Advantages
1. It is useful to people who cannot read and write.
2. There are places where newspapers reading may not be possible;but you can hear radio. For example, one can hear radio while
traveling or working at home.
ElectronicMedia
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With rapid growth of information technology and electronic media, television
tops the list among media of advertising. In TV, products can be shown, their
uses can be demonstrated, and their utilities can be told over television. TV
appeals both to eye and ear. There are also popular programmes sponsored
by advertisers.
For example, VIKING PRESENTS JACKPOT
Advantages
1. It is most effective as it has an audio-visual impact.
2. With catchy slogans, famous personalities exhibiting products, TVadvertisement has a lasting impact. For example, Amitabh Bachchan
saying ONLY A DIAMOND CAN UNDERSTAND A DIAMOND Tanishq
True Diamonds.
Televisi
on Advertising
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All the media discussed above are mostly used by customers while they
are at home. In these media, customer has to spend some money to
access the advertisement.
There are other media available, where the customer have to spendnothing and he can see the advertisement while moving outside.
Some of such advertising are
Hoardings While moving on roads one can see large hoardings placed
on iron frames, walls etc. These boards on which advertisements are
painted or electronically designed so that they are visible during day or night.
Posters Poster are printed and posted on walls, buildings, bridges etc to
attract the attention of customers. Example, posters of films which are
screened on cinema halls.
OtherMedia
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Suitability of Advertising medium
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The advertisers must look into suitability of each medium of advertising
in relation to their product. For this purpose, they should consider nature
of product or service to be advertised, target customers, amount of
allocated funds, availability of space and time in each medium.
Newspapers These are suited for consumer goods designed for
general public. In case of new product to be launched, newspaper
advertising is useful as the same space could be used at regular
basis.
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Periodicals These are suitable for products required by target
customers of periodicals. For example, interior decorators, architects,
builders can advertise in magazines specifically containing items of
design and decoration.
Radio Radio is suitable for advertising different products. However
the timing is important. (e.g) When farmers come back from field they
normally listen to radio. During this time, firms producing agricultural
products can advertise their products, sponsor their programmes.
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Television Choice of channels and programmes is very important for
advertisers. For example, in Cartoon Network Channel, products
related to children can be advertised. In case of a new product to be
advertised in TV, the product could be advertised during the commercialbreaks of any mega event happening in the country. For example, Bingo
advertised their product during WORLD CUP 2011.
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Sales Promotion
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The marketing activities other than personal selling, advertising and
publicity that stimulate consumer purchasing and dealer effectiveness
such as display shows and exhibitions, demonstrations and various
non-recurrent selling efforts.
Sales Promotion efforts are directed at final consumers and designed to
motivate, persuade and remind them of the goods and discount that are
offered.
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Sales Promotion informs, persuades and reminds prospective and current
customers, selected audiences about a company and its products.
The most useful product or brand will be a failure if no one knows it isavailable. A producer must inform the ultimate consumers about the product
and services being offered. As number of potential consumers grow and the
geographic dimensions of a market expand, the cost of informing consumers
increase.
Another purpose is persuasion. The intense competition among differentindustries, puts tremendous pressure on promotional programmes of sellers.
In case of luxury product, for which sales depend on the ability to convince
the customers that the products benefits exceed those of other luxuries,
persuasion is even more important.
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Consumers must be reminded about a products availability and its
ability to satisfy. Given the intense competition for consumers
attention, even an established firm must constantly remind people
about its brand to retain a place in their minds.
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To introduce new products free samples, merchandise allowance offered
to stock and sell the product.
To attract new customersTo induce present customers to buy more
To help firm remain competitive
Objectives ofSales Promotion
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Sales Promotion strategies & practices
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Sample free samples are given to customers to introduce a new product
or to expand the market. The consumers can try the product.
Demonstrations or Instructions The instructions are given to educate thecustomers about using the product. Example, Vacuum Cleaner.
Coupon Discount coupons are given to customers where he gets the
product at lower price. Coupons are also accepted as cash at selected
shop.
Price-off The price-off label is printed on the package, e.g Rs. 4 offer
given on Brooke Bond teach pack of 500 grams. It gives a temporary
discount to the customers.
Tools and programmes for Sales Promotion (Customers)
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Price Packs These are offers to consumers of savings off the regular
price of the product, flagged on the label or product. They may take the
form of reduced price pack, that is, single packages sold at reduced
price or a bundled pack where two related products are bundled together( tooth paste and tooth brush). It is very effective in stimulating short-term
sales.
Prizes These are offers of the chance to win cash, trips or merchandise
as a result of purchasing something. Pepsi-cola offered the chance to win
Cash by matching the numbers shown in television. Sometimes the pricemight be cash or dinner with a celebrity. Hamam soaps Grahapravesam
offer.
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Free display There is a provision of free display of material either at POP or
POS depending on ones view point.
Retail Demonstrations These are arranged by manufacturers for preparingand distributing the product as sample.
Advertising and display allowance These are also offered to retailers to
popularise the product and brand name of the manufacturer.
Tools and programmes for Sales Promotion (dealers/distributors)
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Bait Advertising Bait means something that is meant to influence consumers.
For example, TATA INDICOM has used 1 paise per second prominently in its
advertisement to bring the attention of its users in mind which will influence
them to opt for TATA INDICOM service. This way of influencing consumer to optfor TATA INDICOM is called Bait Advertising.
Switch Advertising Switch advertising means when an advertisement is
released, it should ignite the minds of consumers to notice the advertisement
and take a decision to buy the product. For example, Arokya Milk
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Thank you