marketing management - unit v

8/13/2019 Marketing Management - Unit V

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MARKETING MANAGEMENT

UNIT V

ADVERTISING

The main purpose of promotion is to attract consumers and stimulate them to act in the desired

manner. The need for promotional activities has been recognized by the marketer for the

following reasons:

1. The physical separation of the consumers and producers and an increase in the number ofpotential consumers.

2. Improvements in physical distribution facilities have expanded the area limits of themarkets.

3. Availability of large number of wholesalers and retailers in the market4. To restore the demand for the existing product when sale begin to decline.

DEFINITION

Advertising, means an paid form of non-personal presentation and promotion of ideas, goods or

services by an identified sponsor.

OBJECTIVES

1. To inform and influence the buyers to buy the product and thereby increasing sales.2. To introduce new product to potential customers.3. To influence the middlemen to store and handle the product.4. It helps build the brand image and brand loyalty to the products.5. Advertising is necessary to inform any changes made in prices, channels of distribution,

any improvement made in the quality, size, weight and packing of product.

6. It will be issued to compete with competitors advertising. 7. It helps to build the corporate image.8. It helps increase the effectiveness of sales promotion.

DECISION AREAS IN ADVERTISING

Identifying Target Audience

A marketing communicator starts with a clear target audience in mind. The audience may be

potential buyers or current users, those who make the buying decisions. The audience may be


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individual, groups, or the general public. The target audience will impact the communicators

decision on what will be said, how it will be said, when it will be said, where and who will say it?

Deciding the Advertising Budget

Deciding on how much money to be spent on advertising is not an easy task. The type of products

involves the competitive structure of the industry, legal constraints, environmental conditions

etc, influence advertising expenditure. It varies from industry to industry, company to company

within the same industry. For the same company, the advertising expenditure may vary from time

to time.

Deciding on the Advertisement Copy

The term `copy includes every single feature that appears in the body of the advertisement such

as written matter, picture, logo, label and designs. It is a creative process. Some of the essential

qualities that must be present in a good advertisement are that it must be able to attract theattention of the customers, interest, create desire and stimulate the actions of buying.

Deciding on Media Timing

The advertiser must also decide how to schedule the advertising over the course of the year. The

firm should vary its advertising to follow the seasonal pattern. And the advertiser has to chose

the pattern of the advertisements, either continuous or pulsing. Continuity means scheduling

advertisements evenly within a given period. Pulsing means scheduling the advertisements

unevenly over a given time period.

PUBLIC RELATIONS

Building good relations with the companys various publics by obtaining favorite publicity,

building up a good corporate image, handling unfavorable rumours, stories and events, promote a

companys products by planting the news about the product in the media. Public relations

department may perform all or any of the following functions:

Press Relations Creating newsworthy information in the media to attract the attention to a

person, product or service.

Product Publicity

Publicizing specific products.

Lobbying Building and maintaining relations with legislators and government officials to

influence legislation and regulations.

Investor Relations Maintaining relationships with shareholders and others in the financial

community.


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Development Public relations with donors or members of non-profit organization to gain

financial or volunteer support.

Public relations are used to promote products, people, places, ideas, activities, organization etc.

The company pays for a staff to develop and circulate information and to manage events. Public

relations can have a strong impact on public awareness at a much lower cost than advertising.

SALES PROMOTION

The sales activities that supplement both personal selling and advertising and coordinate them

and help to make them effective, through display, shows and exhibitions and demonstrations.

Sales promotion measures are temporary promotion needs. It is practiced as a supporting facility

to advertising and personal selling.

Objectives of Sales Promotion1. To introduce the new product.2. To overcome a competitive situation.3. To overcome seasonal slumps.4. To get additional customers.5. To retain existing customers.6. To supplement to the advertising and salesmens effort.7. To persuade dealers to procure more.

Methods of Sales Promotion

The sales promotional methods aimed at consumers include:

1. Samples2. Coupons3. Bonus offer4. Contest, games5. Discounts/ rebates6. Demonstrations7. Trade fairs and exhibitions

Dealer Sales Promotions

Sales promotion can persuade wholesaler and retailer to carry a brand, give it shelf life, promote

it in advertising and push it to customers. Shelf space are scarce these days that manufacturers

often have to offer price-offs, allowances, buy-back guarantees, free goods to retailers and

wholesalers to get a shelf life.


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Dealers sales promotions include:

Buying allowance It involves an offer to percentage off on each minimum quantity of product

purchased during a stated period of time by the dealer. The buying allowance is usually given in

the form of cash discount or quantity discount.

Promotion allowance This is given to compensate the dealers for promotion expenses incurred

by them. These include advertisement allowance, display allowance etc (calendars, key chains

which carry the names of retailers who stock the product).

Sales contest It is a contest among dealers in selling the product. The winners will be given

prizes by the manufacturers. This is done to stimulate the distributors/retailers.

Sales Force Promotions

The tools for sales force promotion include:

1.

Bonus2. Sales force contest3. Sales meetings

PERSONAL SELLING

Personal selling is a highly distinctive form of promotion. It is basically a two way of

communication involving not only individual but social behavior also. It aims to bring the right

products to the right customers. It is employed for the purpose of creating product awareness ,

stimulate interest, develop brand preference and negotiate price. The increase in complexity of

products has increased the importance of personal selling. Manufacturers of highly technical

products such as computers, digital phones, microware kitchen appliances, remote control

equipments depend heavily on personal selling than other manufacturers.

Objectives

1. To do the entire selling job2. To serve existing customers i.e to maintain contacts with present customers3. To search and obtain new customers4. To maintain and secure customers cooperation in stocking and promoting the product line5. To provide technical advice and assistance to customers6. To collect and report market information of interest and use to company management7. Capture and retain a market share8. To obtain sales volume in ways that contribute to profitability9. Secure targeted percentages of certain accounts business


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Relevant situation for Personal Selling

Product Situation

1. When a product is in the introductory stage of its life cycle and requires creation of coredemand.

2. A product requires personal attention to match specific consumer needs. e.g insurancepolicy.

3. Product requires demonstration4. Product requires after sales service.

Market Situation

1. A company sells in a small-local market or in government or institutional market.2. Desired middle men or agents are not available.3.

An indirect channel or distribution is used for selling to merchant-middleman only.

Company Situation

1. The company is not in a position to identify and make use of suitable non-personalcommunication media.

2. A company cannot afford to have a large and regular advertising outlay.Consumer Behavior Situation

1. Purchases are valuable but infrequent2. Consumer needs instant answers to his questions3.

Consumer requires persuasion and follow-up in the face of competitive pressure.

marketing management - unit v

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