b.com final yr advertising nd sales mgt

7/31/2019 B.com Final Yr Advertising Nd Sales Mgt

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SAKHIE cell:9858304510

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b.com 3rd

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SAKHIE

PHOTOSTATCELL:9858304510COURSE: B.COM

YEAR: 3RD

SUBJECT:

ADVERTISING & SALES

MANAGMENT


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UNIT 1Q1:- Meaning of advertising.

Advertising is the non personal communication of information usually

paid for and usually persuasive in nature about products, services or

ideas by indentified sponsors through the various media.

Q2:- Importance of advertising.

Advertising plays a very important role in todays age of competition.

Advertising is one thing which has become a necessity for everybody in

todays day to day life, be it the producer the traders, or the consumer.

Advertising is an important part. Lets have a look on how and where is

advertising important.

1.Advertising is important for the customers:- Just imagine televisionor a newspaper or a radio channel without an advertisement. No one

can any day imagine this advertising plays a very important role in

customers life. Customers are the people who buy the product only

after they are made aware of the products available in the market. If

the product is not advertised, no customers will come to know what

products are available and will not buy the product even if the product

was for their beneath one more thing is that advertising helps people

find the best product for themselves. Thus, advertising is important for

the customers.

2.Advertising is important for the seller and companies producing theproducts


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Yes, advertising plays very important role for the producers and the

sellers of the products, because

1.Advertising helps increasing sales2.Advertising helps producers or the companies to know their

competitors and plan accordingly to meet up the level of

competition.

3. If any company wants to introduce or launch a new product in themarket advertising will make a ground for the product.

4.Advertising helps making people aware of the new product so thatthe consumers come and try the product.

5. Advertising helps creating goodwill for the company and gainscustomer loyalty after reaching a mature age.

6.The demand for the product keeps on coming with the help ofadvertising and demand and supply became a never ending

process.

3.Advertising is important for the society:-Advertising helps, educating people. There are some social issues alsowhich advertising steals with like child, labour, liquor, consumptions

girl child killing, smoking, family planning education, etc. Thus

advertising plays a very important role in society.

Q3:- Types of advertising:

Consumer Advertising:- There are basically nothing but product or

service advertisement directed towards the consumer or the consumer

as such. Such advertisements can be in the form of national and local

advertisement also. Such kind of advertisement uses emotional or

rational appeal in their advertisement. Advertisement such as that of

DeBeers, Pizza hut etc use be emotional appeal to attract the consumer.

On the other hand advertisement such is the Kawasaki Bajaj Caliber, Vim

bar etc use the rational appeal to address its target audience.


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1.Advertising to business or profession:- This type of advertising isaimed at resellers and professionals. The media used here is direct

mail or professionals magazines. These are ads which are not directed

towards the final consumer corporate ads are also a part of these

types of ads. The target group pf corporate advertising are most often

customers, stockholders, employees, financial institutions, political

leaders and government. The objectives of the corporate or the

institution may be establish.

2. Industrial Advertising:- Industrial advertising is another importanttype of advertising. Industrial executives have little confidence in

advertising. The expenditure on industrial advertising as a percent ofsales is much smaller than that on consumer goods advertising. The

task of the industrial advertiser is complicated by the multiple buying

influence characteristics of many industrial goods he derived nature of

their demand and the fact that many material lose their identity in the

end product.

3.Retail Advertising:- This may be defined as covering all advertising bythe stores that sells goods directly to the consuming public. It includes,

also advertising by establishment that sell services to the public, such

as beauty shops, petrol pumps and banks.

4.Non Profit Advertising:- In this type of advertising advertisementdepicting an idea, a social cause etc is included surrogate

advertisement are also a part of such non product advertisement.

Q4:- Meaning of communication process and its models.

The communication process is not easy, the words, the presentation, the

indication and the silence should be carefully directed towards the

objectives of communication. The source delivers the message to the

receiver. The message may be handed over to the receiver through a

channel-magazine, television radio or a newspaper.


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Models of communication process

The model process of communication has been described under each

component of the communication process, viz, source, message,

perception, channel, receiver and effect

1. SourceThe source of a communication or message is known as the encoder,

sponsor, advertiser or sales representative. The source is the sender of

the message. It is the place where the message originates. The

spokesperson is the source of the message of the advertising. The

message is carried to the receiver through a channel, such as the

newspaper, magazines, radio or television. The message may relate to

the brand, product, quality, price, etc. which are to be brought to the

knowledge of the receiver.

2. MessageThe term message refers to the content of the communication. It is the

creative idea of communication. It may be include words, pictures,

symbols, order of presentation, appeal, refuting or ignoring certain

statements. The emotional appeal in advertising has been considered to

be very effective in message transmission.

3. PerceptionPerception is an important factor in the communication process. The

message can be perceived by the receiver according to his nature and

culture, its attention, interest, desire and action. The attitude and desire

of the sender also influence the perception level. Perception can be

increased if the attention and interest of the receiver are aroused at a

higher speed. Words, pictures and sounds are important factor

influencing perception.


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4. ChannelThe message is carried through some channel a newspaper, magazine,

radio, or television from the sender to the receiver. The impact of a

communication is different when it is transmitted through differentchannels. Individual communication may be word of mouth or face to

face communication. The individual channel is costly and advertiser

cannot communicate effectively, efficiently and economically with the

entire audience.

5.FeedbackFeedback is an essential factor in making communication more effective.

It indicates how the communication process is working feedback is

received from the receiver or audience. The receivers may provide

feedback on their needs, knowledge, cultural system, attitudes and

communication skills. Marketing or advertising research may be very

useful in assessing the value of feedback.

Q5:- Strength and weakness of advertising as a promotion tool.

Strength of Advertising

Advertising as a means of communication has numerous advantages. The

strength of advertising can be summarize below:

1.Mass ReachAdvertising is a communication medium which can reach a wide range of

people over broad geological region. For example advertising via a daily

newspaper reaches millions of people all over the country.

2.Boosting customer contentment and confidenceIt creates a sense of assurance amidst potential customers as they are

contented and comforted about the quality of the product and thus feel

more relaxed.


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3.ExpressivenessAs because of the progress of graphic designing, art and computer skills,

advertisement has changed into one of the most aggressive weapon of

communication. A simple product can look attractive with all the specialeffects and modern computer skills.

4.EconomyAdvertising by far is the most economic medium of communication for

creating mass awareness. As a result of it wide reach the total advertising

cost gets stretched over several communication links recognized. This

ultimately lowers per limit cost for advertising.

Weakness of Advertising

Though advertising has many advantages, it also has several

disadvantages. The weakness of advertising as a medium of

communication are listed below:

1.Less ForcefulBeing an impersonal medium of communication it is less forceful when

compared to personal selling. Advertising is a common message and you

are not compelled to pay attention to the message conveyed.

2.Lackof feedbackIt is not possible to study the efficiency to advertising message as it is not

possible to gather immediate and precise feedback of the message

communicated.

3. InflexibilityAdvertising is not very flexible because of standardization and is not

custom made meet the necessities of the various group of customers.


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4.Low effectivenessBecause of the growth in volume of advertise is becoming impossible to

make advertising message heard by the prospective group of consumers.

This ultimately influence the efficiency of advertising.

Unit 2nd

Q1:- Advertising Decisions

Marketing management must take five important decisions when

developing an advertising program

a)Setting advertising objectivesb)Setting advertising budgetsc)Developing advertising strategyd)a) Message decision b) Media decisione)Evaluating advertising campaignsQ2:- Deciding advertising objectives

Marketing management must make five important decisions in

developing an advertising program. These decisions will be listed and

discussed here in this writing.

1.Objective SettingThe first step in developing an advertising program is to set theadvertising objectives. These objectives must flow from prior decisions

on the target market, marketing positioning and marketing mix.

2.Possible Advertising objectiveTo inform: Telling the market about a new product suggesting new uses

for product information the market of a price change. Explaining how the


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product works. Describing available services correcting false impressions.

Reducing consumer fears building a company image.

3.To PersuadeBuilding brand preference encouraging switching to your brand.

Changing customers perception of product attributes. Persuading

customer to purchase now, persuading customer to receive a sales call.

4.To RemindReminding customers that a the product may be needed in the near

feature. Reminding them where to buy it keeping it in their minds during

off season.

5.Reminder AdvertisingIs highly important in the nature stage to keep the consumer thinking

about the product.

Q3:- Deciding Advertising budget

The following are the five factors that are considered while seting the

decising advertising budget.

1.Stage in the product life cycleNew products typically receive large advertising budgets to build

awareness and to gain customers trial.

2.Market share and consumer baseThe brands having a high market share usually require less advertising

expenditure where as for products whose brand needs to be built,

require larger advertising expenditure.

3.Competition and clutterIn todays competitive market, where there is large number of

competitors, a brand must advertise heavily to be heard.


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4.Advertising FrequencyThe number of repetitions that need to be made to put across the brand

message to consumers has an important impact on the advertising

budget.

5.Product SubstitutabilityBrands in the commodity class require heavy advertising to establish a

different image. For example, cigarettes, beer, soft drinks. Also

advertising is important when the brand can offer unique physical

benefits or features.

Q4:- Deciding Media

The advertisers are to choose advertising media to carry the advertising

message.

The steps of deciding media

1.Deciding on reach, frequency, and impact.2.Choosing among major media types3.Selecting specific media vehicles4.Deciding on media timing.Deciding on Reach, Frequency, and Impact

In order to select media, the advertiser must determine the desiredreach, frequency and impact needed to achieve the advertising

objectives.

1.ReachThe advertiser must decide how many persons in the target audience

should be exposed to the ad campaign during the specified period

2.Frequency


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The advertiser must also decide how many times the average person in

the target audience should be exposed to the message during the

specified time period.

3. ImpactThe advertiser must also decide on the impact that the exposure should

have message on television typically have more impact than message on

radio because television combines sight and sound not just sound.

Choosing among Major Media

The media planner has to know the capacity of the major media types to

deliver reach frequency and impact

1.Target audience media habits. Example radio, T.V are the mosteffective media for reaching teenagers.

2. Product, womens dresses are best shown in colour magazines, andcameras are best demonstrated on T.V.

Selection specific Media vehicle

The media planner now chooses the specific media vehicle that will be

most cost effective. The media planner turns to several volumes

published by standard rate and data that provide circulation and cost for

different ads size, colour options, ad positions, and quantities of

insertions in different womens magazines.

Deciding on Media Timing

The advertiser has to decide how to schedule the advertising over the

year in relation to seasonality and expected economic developments,

suppose sales of an particular product peak in December and wave inmarch. The seller has options.


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Unit 3rd

Q1:- What is Sales planning and organization

Sales planning is a logical process of planning or reading or estimating the

future sales for a definite time in all dimensions of quality, quantity,

value, area and so on. It is predicting the expected change in sales in

terms of value, volume type based on the last years and this years figure.

Sales organization

Sales organization is the planning, direction and control or personnel

selling including recruitment, selection, training, equipping, assigning,

routing, supervising, paying and motivating, as these tasks apply to thepersonal sales force.

Q2:- What is the meaning of personal selling and sales promotion

Personal Selling

Personal selling involves interpersonal communication, which aims at

informing and persuading customers to know and buy product. It is a face

to face relationship between seller and potential customers. It provides

immediate feedback which helps sales person to adapt the sales

techniques to the needs of the situation.

Sales Promotion

A sales promotion is a way for retailers and wholesalers to offer extra

goods or services for purchasing sometime. Sometimes sales promotionsbring in carnival creatures to help bring people to their business.


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Q3:- Sales planning process

1.BasicsWhile the sales planning process various between companies and

individual sales professionals, certain basic elements should be included

in any marketing plan or direct sales strategy. Customers can provide

sales organization with clearer direction, pointing to what they want,

how they want it delivered, what they are willing to pay for it and when

they will be ready to buy.

2.PathSince most sales organizations rely on a few customers to purchase the

bulk of their products or services, the first step in the planning process

should be to identify those highly valued clients. Sales planning should

focus on these customers and their desire. Second step is to make a

strategy to reach these clients and then check their validity with the

accounting department.

3.TechnologySoftware programs such as those developed by plan write, sales planner

and kin axis can assist sales organizations in the planning process by

guiding the collection of information and helping to organise it usefully.

Sales costs, timeliness and forecasts can be evaluated in one platform

from a desktop various department such as marketing, IT, sales,

operations, supply chain management and human resources can work on

the planning process through the software network.

4.Follow upFollow up is another area in which sales professionals often fall short.

Built in to the planning process, Follow up can be one of the best source

of feature business and referrals. Companies should build in automatic

follow up techniques. Follow up processes, which include customers


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service, can be triggered by the software thats been implemented to

create the plan.

Q4:- Sales For casting

Prediction of the future sales of a particular product over a specific

period of time based on past performance of the product, inflation rates,

unemployment, consumers spending patterns, market trends, and

interest rates. In the preparation of a comprehensive marketing plan,

sales forecast help the marketer develop a marketing budget.

Q5:- Territory Allocation / Sales Territory

A sales territory is a number of present and potential customers located

within a geographical area, and assigned to a sales person, branch or

middleman.

Q6:- Sales Quotas

Sales quotas are the sales goal set for a product line, company division or

sales representatives. It helps the managers to define and stimulate sales

effort. Sales quota is the minimum sales good for a set time span.

Q7:- Sales Budget

A sales budget is valuable tools that give a direction to a company withregards to its targeted sales. It helps to improve the profit ability of a

company. The company makes a financial plan with regard to the amount

of goods and services.

Q8:- Principles of sales organization

The seven principles of sales p0roductivity have been condensed from

global survey results on sales people across a variety of industries and


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cultures regardless of what business or environment one is in the

applicability of these ideas are universal.

1.New prospectus is the life blood of a business.2.Selling is a Number Game the more you contact, the more you close.3.Without new prospectus all presenting and closing skills are worthless.4.Getting sales people to prospect, rather than showing them how to

prospect is sales managements greater challenge.

5.Eighty percent of new sales people, who terminate in year 1 do so dueto lack of prospecting activity.

6.Forty percent of veteran sales people experience one or moreepisodes of call. Reluctance severe enough to threaten their sales

carrers.

7.Assessment of existing willingness or reluctance to prospect is thestarting point in improving sales productivity.


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Unit 4TH

Q1:- Meaning of Sales promotion and Sales Management

Sales Promotion

Sales promotion is a marketing technique designed to create sales for aproduct over a defined period of time. The result of sales promotion

activities are measurable in terms of number of units sold, number of

coupons redeemed, number of contest entrants or other quantifiable

measures.

Sales Management

Sales management involves the direction and control of salesmen, sales

planning, budgeting, policy making, coordination of marketing, research,

advertising, sales promotion and merchandising and the integration in

the marketing programme of all the business activities that contribute to

the increased sales and profits.

Q2:- Nature and functions of sales promotion

The importance of sales promotion is the unique role it plays in the

marketing mix.

1. IncentivesWhile advertising is primarily used to build a products visibility and

favourability overtimes. Sales promotion is a means of giving buyers

incentives to make an immediate purchase or to switch from acompetitive brand.


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2.Behavioural TargetingSales promotion is most effective when it is tailored to the buying

behaviour of a particular target. Among the most relevant behavioural

dimensions are purchase frequency and brand loyalty. For examplepeople who buy spices rarely, or in some quantities, decide to buy more

often in large volume, if the received free recipes in return.

3.Consumer PromotionMany popular sales promotions are targeted primarily or solely to

household consumers. Those focused on price include both discount

coupons and the significant but time limited price breats known as deals

like one get one free offers.

4.Trade PromotionTrade sales promotion is aimed at a market that buys for resale, not for

personal consumption. Primarily, this group includes retribution to

household consumers. Certain type ofconsumers promotion can

influence the trade, but marketers also use devices specifically designed

for this audience.

Functions of Sales Promotion

Sales promotion may take the form of temporary price reduction or a

campaign to introduce an item.

1.Production DifferentiationUse of sales promotion techniques helps to differentiate your products

from those of your competitors. A method often used to make products

stand out is to offer them at a slightly reduced price for a short period of

time.

2.Attract Customers


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Sales promotions are used to attract customers during periods of slow

sales. For example you offer a seasonal product such as grills by

running a promotion in the middle of winter where the price is reduced

by 50% may encourage people to buy a bill at a time where it might not

otherwise loss their mind.

3. Increasing Market ShareSales promotions can lead to an increase in market share for the

manufacturer. The promotions will likely increase your sales by taking

way sales from your competitors. As a result market share will

increase while your competitors share decrease.

4.New Product IntroductionRetailers can use sales promotions to introduce new product. By offering

the new item a reduced price and placing a new item in front of it,

they can persuade customers to given the new product a try. This

technique has the effect of keeping the category fresh while fleecing up

needed shelf space.

5. Inventory ControlSales promotion can help retailers limit out of stock situations by allowing

them to purchase large quantities at a reduced price. This can be

especially advantageous to the retailer for items that are popular sellers

that can be difficult to keep on the shelf.

Q3:- Types of sales promotion schemes

There are mainly four types of sales promotion scheme:-

1.Affordable MethodMany companies set the promotions budget at what they think the

company can afford. One executive explained this method as follows:


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Why, its simple. First I got upstairs to the controller and how much they

can afford to give us this year. He says a million and half. Later, the boss

comes to me and asks how much we should spend and I say about a

million and half. It is a method which is uncertain one and makes long

term planning difficult.

2.Percentage of Sales MethodMany companies set their promotions expenditure at a specified

percentage of sales. In this a specified sales percentage is decided for the

promotions budget. It encourages the competitive stability to the exent

that competing firms spend approximately the same % of their sales on

promotion.

3.Competitive Parity MethodSome companies set their promotional budget to achieve share of voice

parity with other competitor. Two arguments are made in support of

competitive parity method. One is that the competitors expenditure

represents the collective wisdom of the industry. The other is that

maintaining a competitive party helps prevent promotional wars.

4.Objectives and Task MethodThe objectives and task method calls upon market to develop their

promotions budget by defining their specific objectives, determing the

task that must be performed to achieve these objectives, and estimating

the cost of performing these tasks.

Deciding on the Promotion Mix

Companies face the task of distributing the total promotion budget over

the five promotional tools.

1.Advertising


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2.Sales Promotion3.Public relation and publicity4.Sales Force5.Direct MarketingWhatever method a company adopt for promoting product it must be

from above mentioned method.

Q4:- Meaning of consumer and Trade Promotion.

Consumer Promotion:

The name for a wide variety of marketing activities whose goal is to

induce specific consumer action. Among the more common consumer

promotion tactics are P.O.P displays, coupons, sweep takes and events.

Trade Promotions

A trade promotion is an incentive to get retailers to stock and support or

merchandise a brand. Trade promotions goals include obtaining or

maintaining product distribution increasing sales volume andencouraging retailer advertising and displays.

Q5:-Requirements for Sales departments

Sales managers are a part of a field sales force. They are typically

responsible for a specific geographic area and the territory sales

managers within that area companies looking to hire for a regional sales

manager position should carefully consider a number of common

requirements for the position.

1.Sales ExperienceSales managers should have at least three to five years of individual sales

experience in most cases sales skill and experience are transferable

between industries, but companies in highly specialized industries such


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as environmental engineering or pharmaceuticals, may require

experience in their own or a similar industry.

2.Management ExperienceSales managers should have at least two years experience managing

others. Some companies and industries may require significantly greater

experience ideally, the applicant should have experience managing sales

people. Through other management experience will suffice in some

cases. In addition, he should have experience collecting, analyzing and

reporting sales data.

3.Personal TraitsSales managers must motivate and manage differe3nt personalities.

They must be persistent and must encourage their subordinates to be

persistent. They must be able to understand the companys overall sales

plan and communicate the information in an actionable way to the sales

force. They must be well- organized and must help keep their people

organized.

4.Ability to TravelSales regions often consist of several states containing many territories.

Sales managers must regularly vistit the sales people in each territory to

provide ongoing training and to evaluate performance. They must be

prepared to travel at least 80 percent of the work week. Sales managers

should live close to a major airport to make air travel efficient.

Q6:- Meaning of Salesmanship

Sales man ship consists of winning the buyers confidence for the sellers

house and ghosts thereby winning a regular and permanent customer.

Q7:- Qualities of a Salesman

1.Physical qualities


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A good sales man should be good looking and must have an alluring

posture. He must be convincing by voices, thus requiring a caring and

loving voice. He should not show a negative expression under any

circumstance.

2.Metal/ Psychological QualitiesA good salesman must have a marvellous personality. He should be

sweet natured and must be patient. He should know to deal with people

of different age groups, classes and gender. In no condition should be

lose his temper at it may spoil the image of the company for which he is

working.

3.Technical qualitiesA good salesman should posses all the technical qualities i.e, he should

have knowledge about the product he is selling in full. He should know as

to how it works, its usefulness and other specifications.

4.Knowledge about the firmHe should have complete knowledge about the firm he is working for. He

should know about the people behind the success of the firm and the

history of the same. He should not pursue his work with partial

knowledge.

5.Communication SkillsA good salesman requires fantabulous communication skills. He should

know diversified languages and must be confident and nit stammer while

speaking.

Q8:- What is sales force motivation?

Motivation is a general term applying to the entire class of drives,

desires, needs, wishes and similar forces to say that managers motivate

this subordinates is to say that they do these things which they hope will


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satisfy these drives and desires and involve the subordinates to act in a

desired manner.

Q9:- What is sales meeting?

A gathering in which a product or services is being discussed, and the

benefits are outlined to the potential buyer. The sales meeting is not

always a pre4sentation format. It can sometimes be an informal

conversion phone call or online affair.

Contests of Sales Meeting

1.Contest FormatDirect or Novelty Direct Format describes specific objective. Novelty

Format uses a particular theme based current events, sport or any idea

important points. Timely and effective understandable to the audience.

2.Contest PrizeCash Merchandise, Travel or Special honour cash. Potency Weakness as

an individuals needs are up in need hierarchy. No permanent evidence of

their achievement.

3.Contest DurationMostly run for one to four months no set.

4.Sales contest ManagerialEvaluation of contestContest vs alternatives short and long term effect Design Fairness impact

upon sales force morale.

5.Sales contests objectionsNo reasons to reward sales persons for their regular duties high calibre

and more experience need sales personnel. Bunch sales disappointment

to losers temporary motivating devices weakness team spirits.


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